davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
RESERVE BOARD TO
HEAR STATE BANKS
Real Estate Loan Question Main
One Concerning Admission
Into New System.

Washington, Nov. 24.-Before regu-
lations now under consideration for the
admission Of state banks TO the Fed
oral Reserve system are promulgated
the Federal Reserve Board will hold
a conference here with representatives,
Of the State Bankers Association, ac-
cording to plans now contemplated.
The main question concerning the
admission Of state banks which has
been occupying the attention Of the
Reserve Board is the limitation OF
loans on real estate. 1t IS admitted
by members of the board that in some
cases in which loans of this character
are made for small amounts and are
we'll scattered in point of time they
form fairly liquid assets. To meet
the situation it is probable that the
board will place at the outset rather
wide limitations upon real estate loans
by state banks, reserving the right TO
increase the restrictions as experience
may dictate.
There are now more than 100 apph-
cations from state banks, some OF
them large institutions, for admission
into the Reserve system, and 1t IS eA-
pected that there will be more apph-
cations as soon as the regulations are
promulgated.
Reports to the Reserve Board to-
dav indicated that in the larger cen
tres the business of the Reserve banks
is running more smoothly. In some
cases no reports of operations were
submitted by the Reserve banks. Re
ports received show that the total oil
rediscounts now exceed $10,00O,OOO.
The operating Of shifting the hrst
instalment of reserves from the mem
bor hanks to the reserve banks has
about been completed. In New YORK
only a very small proportion OF the
reserves of member banks, approx
mately $4,000, is still outstanding.
Progress has been less rapid IN the
South and West, and the board has
called upon the Reserve banks for an
explanation. Much of tins delay IS
due to the physical difficulties encoun-
tered in opening the Reserve banks.
As an illustration, the case IS clted
Of one of the directors OF Boston
hank who was obliged TO stand watch
ON the curb until 3 o'clock IN the
y,crning over S3,0O0,000 in gold Tor
which no place had been found during
the dav. A number of the banks stlll
Keen their reserves at the minis or IN
rented vaults. In many instances also
member banks made their payments by
check. instead of gold or lawful money
which brought about some confusion
and much delay.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
UNION PACIFIC'S
INCOME DROPS
Loss of Southern Pacific
Cuts Off S3,892,628 in
Dividends.

The annual report Of the Union Pa
cific Railroad, voluminous document
OF slKty-fve pages, was made public
yesterday. For the year ended June 30
last the company earned 1909 per cent
on its 222,293,l 100 common stock, COM
pared with 1914 per cent for S2l6,G35,-
400 stock the previous twelve months.
Because Of the reduction Of the COM
mon dividend last year from 10 per
cent to per cent, following the en-
forced sale OF its Southern Pacific
stock, Union Pacific's surplus after
dividends on June 30 stood at 1881,
426, decrease of $l,S00,569. The re-
port shows tat the incSease in capital
last year was due 10 the conversion Of
S9,900975 bonds at the rate of 81 par
Of bond for 81 of stock. Because Of
the sale of its Southern Pacific hold
ings there was a decrease Of $685., 62S
in dividends on stocks owned.
Under the plan OF dissolution or
dered by the United States Supreme
Court, the Union Pacific sold 1873 .292, =
400 Southern Pacific stock to the Penn
sylvania Railroad, accepting in ex-
change S42,547,20O (half preferred and
half common) of the Baltimore & Ohio.
Union Pacific common stock holders
were given the right TO subscribe to
the remaining sS8,357 500 owned by the
company TO the extent of p per cent
Of their holdings at 500 per share.
The report reviews the distribution
Of the companys total Baltimore &
Ohio holdings, under which Union
Pacific shareholders received over
Ss0,000,000 par value Of Baltimore &
Ohio stock. and the delay in the pay
ment Of the extra dividend from April
I, 1914, to July 90, 1914, because of the
injunction suits filed by the Equitable
Life Assurance Society and other pre-
ferred stockholders, who contended
that they were also entitled to a slice
of the melon"
How the payment of the extra Baiti-
more & Ohio dividend compensated
the Union Pacific stockholders for the
reduction in the common dividend is
also outlined OF the cash proceeds
from the sale of Southern Pacific stock
the report says that these funds have
been temporarily in railroad bonds,
equipment trust obligations, short
term railroad notes and secured loans
making a total of S50,697 100 par value
of securities purchased during the
fiscal year 1914. Among them are the
following:
New York Central stock, S2,142,9OO;
Chicago & Alton general mortgage 6
per cent bonds, s1,725,OO0 Chicago &
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

develop, thereby defeating the purpose
of Congress and creating other weak
nesses which it would require further
legislation TO correct. Judgment must
be suspended and a generous attitude
must be observed. both toward the Fed
eral Reserve Board and the measures
adopted by il for the development and
control of the new system, and toward
the arrangements of the various re-
serve banks in their exercise of the
functions of these new institutions. A
liberal spirit of cooperation will in
sure the success of the system. De-
termined opposition can be made to de-
feat its progress"
Mr. Strong discussed at length the
feature of the new law, which is Of
special interest from the standpoint of
the commercial borrower, the pro-
visions which will broaden and stabilize
the market for commercial borrowings.
The ultimate purpose OF the new sys-
TEN, he said, was TO safeguard credit
and TO enlarge the field of business en-
terprise.
"The Federal Reserve act" said Mr..
Strong. provides for the discount by
Federal Reserve banks II quote from
the law of notes, drafts and bills Of
exchange arising out of actual com.
mercial transactions The limitation
thus imposed upon the Reserve banks
in the character of paper which they
may discount raises three important
questions: Shall the test Of the eli
gible character of the paper be evil
denced in the form of the paper itself ?
"If the note does not bear such evil
dence on its face shall the Federal Re-
serve banks accept the statement of
the member banks that il does comply
with the statute?
"Shall the member banks provide
themselves with such means of infor-
nation as will enable them to de-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
AMSTER'S PLAN TO
BALK SALE UPHELD
Judges Take Action in Rock ISL
and Matter on Ground of
Important Rights.

Judges Rogers and Ward, in the ma
jority opinion Of the United States
Court of Appeals handed down yester-
day in the case of ~ l.. Amster
against the Rock Island, explain their
action in giving Amster and his asso-
ciates the privilege of intervening in
the proceedings to sell the collateral
held by the Central Trust Company on
the ground that important rights are
involved which would be extinguished
were Judge julius NJ. Mayors order
denying Amster that right permitted
TO stand.
In minority opinion Judge T.
Henry Lacombe sustains Judge Mayer
Judges Rogers and Ward in their
opinion assert that the position of
the trustee, the Central Trust Com
pany, which IS suing 10 foreclose
and sell the collateral for the bonds
of the Rock Island company. is am
biguous, its presd dent being chairman
of the protective committee, its coun-
sci counsel for that committee and
the company itself depositary under
the protective agreement.
"The interest of the protective COM
mittee," says the court, "is 20 buy the
collateral as cheaply as possible, while
it is TO the interest of the non -depos-
ting bondholders that il be sold al as
high a price as possible. II a sale be
confirmed the mortgaged stock may be
dissipated"
The suit revolves about the sale of
stock Of the Chicago, Rock Island &
Pacific Railway Company Of a par
value Of s7l,353, 900, deposited as col
lateral for a similar amount of bonds
Of the Chicago, Rock Island & Pacific
Railroad Company. a holding corpora
ton, the stock carrying control of the
road. IL is the contention of Amster
and his associates that as arranged a
sale would be for the interest and
benefit Of those responsible for the
condition Of the property, and not for
the bondholders.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
PROSPERITY KEYNOTE
FOR NEW YORK NOW

After the luncheon, William A.
Marble, president Of the Mer-
chants association, said:
The great outpouring of NetO
YOrk's business men at the meet
ing Of our members council TO-
day shoes where NeW York
stands. We arc confident Of the
future and zoe look forward to
good times. There are many
signs that the skies are clearing
and that the depression which
has curtdiled business for so long
is about to end. OF course, pros
perity cannot be expected TO ar
rive to-morroW or the nert day.
It's gro,oth will be more or less
gradual. The main thing is that
zee are on the right road. Signs
arc multiplying daily that infu-
onces Uhich hare caused doubt
and hesitation throughout the
business iCorld arc being dissi-
pGted, and that an era Of pros
porous activity is about to begin.
We are now talking and think!
ing optimism, instead of pes
Simism.
William c. Breed, chairman Of
the members council Of the Mer-
chants A ssocidtion, 1Cho presided
at the luncheon, said:
This luncheon was a splendid ex-
preston of optimism on the part of
New York business men. The reason
that The luncheon, which was in
honor of the Federal Reserve Bank
officers, also took on the aspect of
optimism, in my judgment, was be-
cause the Federal Reserve act fur
nishes for the first time stable
basis for the future financing of
business interests. The business
man believes what is a fact, that
panics hereafter will not so serious
ly affect his business. and that the
efforts of lifetime cannot be
wiped out in a few weeks.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
Nations Trade Boom Proved by Enthu-
siastic Tribute Here to Officers and
Directors of Reserve System.
WORD "PANiC" ERASED, SAYS STRONG
Sneakers Review Aid Offered Merchants by Fl.
nancaI Plan-OptimstC Chorus Over
whelms Hard Times" GrumbIerS.

yore than 100 men, prominent IN
.,s;,ess and banking m this CITY,
..,hered At the Hotel Astor for lunch
-, Yesterday as splendid testi-
ror;sl 70 the spirit Of optimism and
...,red prosperity which prevails IN
~. the greatest business community
= 81. country. Il was q record noon
- Gathering for this city. The pres
...s Of representatives Of the princi-
- firms in more thar 500 distinct
fslds Of business activity was a CON
,.,re,pg refutaton Of any war cry OF
bard times.
The luncheon was under the auspices
Fl the members council Of the Mer-
.s.nts' Association, and was primarily
d honor Of the successful opening of
ns New York Federal Reserve Bank,
oseers and directors o. which were
CHESTS Of honor. While the belief that
tbs establishment Of the Federal Re
serve banking system has probably had
s greater effect than any other event
in relieving depression was recog-
rize6 the spirit Of the occasion did
rot stop there The business men OF
tbis CITY apparently believed the peo-
NE needed 10 be told that business
matters were really booming. and that
the so-caled panicky unrest due 10
the war ,n Europe was a fallacy.
All OF the speakers struck the key
rote OF prosperity. They were BenJa-
min Strong. jr.. governor of the Fed
aral Reserve Bank Of New York;
Pierre Jay. Federal Reserve agent and
chairman of the board of directors OF
.he Federal Reserve Bank; William c.
Breed. chairman Of the members coun-
I'll Of the Merchants Association, who
presided: Henry K. ToFne, member OF
the executive committee Of the Fed
eral Reserve Bank and former presi-
dent OF the Merchants Association,
and Irving T. Bush, who was chair
man Of the committee On banking and
currency Of the Merchants Association
a. the time Of the passage OF the Fed
eral Reserve act.
Others az the guest table were Will
ian Woodward, deputy governor and
member Of the executive committee OF
the Federal Reserve bank; Charles
Starek. deputy Federal Reserve agent;
William 3. Thompson, member Of the
executive committee; james I. Curtis,
secretary: r. H. fireman and L. r.
Palmer directors Of the Reserve Bank;
William A. Marble, president Of the
Merchants Association; j. Ward War
ner. president Of the Produce Ex-
change; William Bayne president Of
the Coffee Exchange; George ". Law
renee. vice-president Of the Coffee EX-
change; Martin Nogel, Assistant Treas
urer Of the United States; Eugene
Lamb Richards. State Superintendent
Of Banks. and the following members
o. the committee on banking and cur
rency Of the Merchants Association;
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

Northwestern general mortgage 4 per
cent bonds, $1,000, 900: st. Paul general
mortgage Az per cent bonds, s3,97b,-
0n0, and general refundinR mortgages
IA per cent bonds, s2,500,0O chr
cago, 81. Paul, Minneapolis & Omaha
debenture gold 5s, 100000; Illinois
Central and Chicago, st. Louis q New
Orleans joint first refunding mortgage
5s, 100000; Lehigh Valley general
consolidated mortgage Ans, s605,OOO;
New York Central refunding and inn,
provement AIS. 100000 New York
Connecting Railroad first mortgage
4hs, S2,000.000; Northern Pacific
Great Northern joint Chicago, Burling-
ton g. Quincy collateral As, S97l 900;
Pacific Mail Steamship purchase money
notes, per cent, S3l5,79i; total, SILL
$50, 206. P.
To protect &c Investment in the Chi
cago e. Alton. amounting TO slO,-
343,l0 preferred stock. the report
points out that, in accordance with its
agreement 20 take half Of the funds
required 20 finance its needs. an add
tional Sl,725,000 OF the Atoms gem
eral mortgage per cent bonds were
taken last year.
Union Pacifc's gross earnings for
the fiscal year ended June 30 last de-
creased 81 ,523, 900. Operating expenses
were reduced By only 1901 900. while
depreciation and renewal allowances
were increased by 1851 900. With an
increase OF $4,000 in taxes, net for
the year was smaller by s3,3l5000.
other income showed a decrease OF
S1,412,000, which was Offset by a re-
duction of Sl.O45,000 in fixed charges.
The years surplus for dividends was
1908 900, a decrease Of 1858, 600
compared with 1913.
A reduction from $4,000 900 20 $685.
41S,052 I'm the Union Pacifc's reserve
for depreciation OF securities was ex-
planned by the withdrawal OF Balti-
more E. Ohio stock from the collateral
pledged under the refunding mortgage
of the Oreonn Short Line Railroad.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

L'"iN -. lFtSoil, chairman, y. Howard
Cowperthwait, Professor Joseph f.
Johnson Edward d. Page and f. l.
Kent,
Prosperity Is Slogan.
Speaking Of the luncheon and what
il stood for, Mr.. Breed said aftcrward ::
"As chairman Of the members coun
Gil | can say that this gathering was
certainly an expression of the interest
OF the New York business men in bust
ness affairs in their best sense. Ii was
fine demonstration of optimism
against pessimism. Il showed that the
New York business man is alive and
awake 20 matters which affect his in
tereSts and the interests of the com
munity, and that he always stands
ready to cooperate in the work Of fur
thering those interests.
MY belief is that any business mans
prosperity depends first upon his belief
in himself, and, secondly, upon his be-
lief in his business firm. and thirdly,
upon his belief in the laws of the coun-
try in which he does business. The
reason that this luncheon. which was
given to the Federal Reserve Bank of
fiCers. also took on the aspect of optim-
ism, in my judgment, was because the
Federal Reserve act furnishes for the
first time stable basis for the future
financing of business interests.
Business men really believe. what is
a fact. that panics hereafter will not so
seriously affect business and that the
efforts of a lifetime cannot be wiped
out in a few weeks. Therefore the
business man. knowing that business
and banking are inseparable. feels that
when banking facilities are put on a
sound basis ne can afford TO invest his
energy and his capital with greater
confidence. lie looks into the future
with optimism"
Mr.. Strong crystallized the sentiments
of his address when he said that the
new banking system had already erased
the word panic from our financial lexi-
con. While claiming that the Reserve
Bank appeared TO protect the banker.
Mr.. Strong pointed out that in reality
II was the consumer who would feel
the safeguards and the merchant who
would experience relief He said in
part:
"This is a prosperity luncheon, and
I svmpathize with your desire to per
nit the Federal Reserve Bank to con-
tribute to the object of the meeting.
7 should also warn you that the re-
serve banks cannot make prosperity.
As they gradually assume their func-
lions they will certainly aid in the re-
covery of business from the shock Of
war and I hope will reap their share of
the rewards. The test of the reserve
act to accomplish the results desired
viii be determined by the experience
OF the future II must be dealt with
con SprvativelV
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
PENR0SE VOTE, 512,612
Official Count Shows Pinchot
Second and Palmer Third.
my Telegraph 70 Tho Tribune

Philadelphia, Nov. 24.--The total
vote for Boies Penrose for reelection
to the United States Senate at the last
election was 5l2,612, according to the
official returns just completed in each
OF the sixty-seven counties of the state.
Clifford Pinchot, the Progressive can
didate, was second, with 9,076 votes,
and A. Mitchell Palmer, Democratic
candidate, third, with 266,474 votes.
Penrose's vote in this city and county
was the largest Of any other county
in Pennsylvania.
Throughout the state Penrose had n
plurality over Pinchot, his nearest OPP
ponent, of 243, 536, and over Palmer Of
246,146. The combined vote against
Penrose was 535,550, leaving him 22,938
less than a majority Of the votes cast.
For the Governorshi p Brumbaugh,
Republican, received 58S,702, and Nc
Cormick, Progressive and Democratic
candidate, received 1928 Of both
tickets. Brumbaugh's majority was
1864.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

Cardinal Cavallari was born at
Chioggia in 1S49 and was raised 70 tho
cardinalate in 1907 He was noted fo-
his simple piety. On various occasions
he expressed himself against the i'm
modest dress of women, and once is
said to have stopped a church service
to make a woman worshipper cover
her openwork shirtwaist.
In January of this year Cardinal
Cavallari issued an episcopal letter
strongly condemning the tango dance.
declaring that only those persons who
have lost all moral sense can endure
it," He ordered all the ecclesiastics TO
deny absolution to those who, having
danced the tango, did not promise to
discontinue the practice.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
.RIEHLE AGAINST HERRICK
O'Dwyer Quits Democratic
Club Presidency.

Justice Edward f. O'Dwyer, Chief
Justice of the City Court, has handed
in his resignation as president of the
National Democratic Club. His term
would have expired December /, and
some time ago he told the board Of
governors that he could not serve an
other year because of i'll health. His
friends put up a ticket headed by Sen
ator Walter K. Herrick.
The Tammany element in the club,
which has been consistently fought by
Justice O'Dwyer, has put up an opposi-
ton ticket headed by John VI. Richie.
The election will be held Tuesday.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
Philadelphia Crisis Passes,

lbs Telegraph TO The Tribune
Philadelphia, Nov. 24.-The Philadel-
mia Clearing House has requested the
immediate retirement Of Sll,OOO,OO0
worth of clearing house loan certiti-
Gates, issued last August, indicating
that the necessity for conserving gold
holdings no longer exists.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
BIC Future for New system.

"The defects of the old system may
have been corrected by the new, but
have not crept undecided into the act
from which unsound tendencies may
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25
VENICE PATRIARCH DEAD
Cardinal Cavallari Denied Abb
solution to Tango Dancers

Paris, Nov. PA dispatch to the
Havas Agency from Venice says that
Cardinal Aristides Cavallari, Patriarch
of Venice, died to-day.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

tcrmine whether paper offered for dis
count complies with the statute?"
The speaker said that one Of the i'm
portant functions of the Reserve banks
should be TO standarize discount trans
actions and put premium upon the
bill, which conforms to sound business
principles. Accommodation accept
ance, where the bill does not repre-
sent the sale of commodities, should
be discouraged, he said. 80 that event
ually n dollar of acceptance will, In
fact, represent the sale of n commod-
| ity, the proceeds Of the ultimate sale
of which will provide the funds TO
meet the bill at maturity.
Referring to the second question
| Mr.. Strong said the Reserve board
had placed upon the management OF
each member bank the responsibility
of determining and giving satisfac-
tory assurance to the Reserve banks
that paper offered by it for discount
generally conforms to the intention OF
the act lie continues:
by some means yet to be fully de-
vised it must become possible to read
lily determine the eligible character
and quality of paper of the various
classes which may be offered to the
Federal Reserve banks. | do not wish
TO suggest that the present system OF
mercantile credits should be generally
| abandoned. The discount allowed for
cash settlement is an important factor
in our business system. But much OF
| the trade of the country which is now
conducted against book credits OF
| thirty. sixty or even ninety days. may
properly be represented by mercantile
paper if the induccment is attractive.
"Our vast domestic trade should not
be disorganized or hampered by sud
den and radical departure from meth
DDS which are now satisfactory to mer-
chants and which are approved by
many bankers. The elimination from
our money market OF the single-namc
note may not be necessary or de
| sirable, but, on the other hand, IT is
undoubtedly desirable that the paper
in which our banks invest should more
| largely represent the purchase and
sale Of commodities, and not perma-
nent capital.
THE inducement TO the making OF
double-name paper, representing, IN
fact, commercial transactions, VIII lie
in preferential rate rather than IN a
regulation. Gradual changes in trade
ethods will aid in bringing this
about The best guide to a safe course
will be experience"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-25

Lewis f. Pierson, chairman; J. Howard
Cowperthwait, Professor Joseph f.
Johnson, Edward d. Page and f. /.
kanf
The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-07-02
THINGS To WORRY ABOUT

Electric vehicles are nov being
used on the streets of London for
|sprinkling and swceping
The province of sind, India, has
an area OF 53,ii6 square miles and
a population OF 3,5i3.i35
In 1918 the total commerce oi
France broke all records, both as
Co valuation and volume
Engineers estimate the avail
able water power Of oregon at
over thirteen million horsepower
India leads eastern countries IN
the number at It's blind. having
about 500. 800 to 100000 In Japan.
scarchliRhts are 10 nc found
mounted on the observation plat
forms of some western railroad
trains
The brazilian can not get q do
gree Of medical doctor from n
institution in his own country
They are not granted.
Mayor takes dmbrnge This
sentence recalls Mr.. Barries' story
about the newspaper office where
"a dispatch was received In which
IL was stated that the Bocts had
taken u%nbragc. and the sub
editor wrote the headline. TIM
bragg Captured by the Beers