davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
A Unique Reorganization.

The Missouri Pacific reorganization
has gone forward with extraordinary
swiftness. The whole affair is unique
in American railroad history. For
years George Gould had been losing his
grip on the Missouri Pacific and Kuhn,
Loeb & Co. had been playing a more
and more important part in the dicta-
tion of the policy Of the management.
When the bankers were at last COM
pletely successful in eliminating Gould
control a reorganization plan was put
forth calling on security holders to
submit voluntarily without receivership
TO the provisions of this plan. The con-
flicting interests, however, were too
varied, and the steam roller of re-
ownership was considered a necessity.
The road was placed in the hands of its
own president, b. F. Bush, as receiver
on August II, 1915. Committees were
formed by interests opposed to some of
the provisions of the reorganization
pldHs NOHlcicHCtS htlt NJ once begun
by these committees with Kuhn, Loeb
& Co. looking toward an adjustment of
differences, and now, in little less
than a year after the appointment Of
the receiver, the reorganization plan
has been declared effective and consents
to it are rapidly coming in. If read
justment of a railroad company's finan-
cial structures is necessity, and no
one doubted that in the case Of the
Missouri Pacific it was necessity,
such expedition as has been shown
in working out the financial plans OF
the Missouri Pacific is. if it is done
thoroughly and fairly, as we'll as quick
ly. in the interests OF the organization
OF the road, its security holders and
the future development Of the prop
srty.-Rsilway Age Gazette.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
GERMANY SOON
TO RAISE LOAN
Fifth War Issue Will Be
Brought Out in
September.
TVireiea tia Sdyrilie TO Tho Tribune
Nv ERNST KAHN.

BY ERNST KAHN.
| Financial Editor "Frankiurter Zestuno.'
Rerlin, Aug. l3.-The German gov
ernment is preparing to issue its fftf
war loan. II will come out in Septem
| ser. and subscribers will have a choice
between per cent bond on long
time, similar to that issued for the last
loan, and new type of security, issued
in smaller amounts. at lower interest
and for a shorter term.
The success of the loan Is practical
" assured, as deposits with CONNER
cial banks, and especially with savings
banks, are enormous, and industry is
making huge profits, as is proved by
the balance sheets which are being
made public.
A large part Of the new loan, II is
expected, will be subscribed In the
rulal districts. where the farmers are
getting high prices for crops, which are
excellent in most districts.
There is a strong agitation going on
agninst the great amount Of paper in
circulation in the form Of government
rotes, the total Of which, while not
half as great as in Russia or in France
has lately passed the line Of 1000, o0o.-
900 marks. The principal reasons for
this have been the necessity Of fur
n,ahing money for the rehabilitation OF
the occupied countries and the large
demand from the army. Furthermore
the German system Of payment is old
fashioned, everything being paid for in
cash. checks being unpopular.
The newspapers are now attempting
to bring into general use the American
system of payment by check.
The application of characteristic
German methods to the food situation
is improving conditions greatly, as is
shown by the permission recently given
to use potatoes for fodder. Exports
have increased % per cent over last
year. but imports have decreased
Freight earnings are 10 per cent higher
than in 1914. The Stock Exchange only
is practically at a stsndstill, and this
is owing to the restrictions imposed by
the government.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

work.
Reported for duty, 9 A. NJ.
Cut off engine at terminal, 4:50 p. Nj.
Labor, h. 5 min.
On duty, h. 80 min.
Paid for 10 h.
On this showing the man actually
worked one hour and five minutes,
was on duty seven hours and fifty
minutes and was paid for ten hours.
1T is not nearly as much work"
says "The Railway Age Gazette"
"as the farmer, small tradesman,
station agent or division superin-
tendent does" II continues: "The
fact of the matter is that train
man would not be working eight
hours a day if he were on duty six
teen. In other words, even if the
trainmen were asking for an eight
hour day, which they are not, there
would be no justification for such a
demand That conclusion does not
necessarily follow. The distinction
between the time one is on duty and
the amount Of motor energy ex-
pended in doing something is unrea-
sonable. You might as well try to
argue that policeman's actual work
is that of making arrests, upon
which it would be found that he does
less work for the pay received than
perhaps any other person in the
world. Most men prefer to work
somewhere near the maximum of
their powers. The brakeman would
doubtless rather be active during the
whole of his time on duty than to be
inactive during six-sevenths of it, if
for no other reason than that time
passes faster in action than in mac
ton. But the real interest of the
illustration lies in the disclosure that
railroad is able to utilize so very
little of a brakeman's working time.
That is not the brakeman's fault. II
may not be the railroads fault,
either; but it does suggest the pos
sibility of vast improvement in man.
agement. 1t is field for the eff
cheney expert. One may say as
matter Of theory that the railroad.
of this country, always crying for
more equipment, are already over
equipped, to an extent that makes it
impossible for them to keep out of
the way of their own cars. Their
problem is how to utilize the equip
ment they have. The daily car move
ment is absurdly low. And as they
progress in this direction they will
at the same time utilize more of the
trainman's duty time in actual labor.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Hobo Labor on the Railroads.

We have recently heard of some
entirely new methods for solving the
railway labor problem. One of these,
where hobos are employed, is to work
the men Sundays, paying double time
for this day. The labor agencies make
a big effort TO obtain lot OF men on
Saturday night, who come out and
work Sunday and a few hours Monday
morning and then demand their time,
having been paid almost double rate
for the entire time they had worked.
This was simply a technical way to
get around raising the wages Of labor,
and resulted in failure TO retain men
on the work and also resulted in a
much higher cost for the work which
was done. An attempt was made TO
overcome this difficulty by making a
stipulation to the men after they ar
rived on the work, that double time
would not be allowed them on Sunday
unless they stayed on the work several
more days. When the men arrived
they found that there was a string
attached to the double time Sunday
work and started out disgruntled. After
Sunday was over they soldiered, were
insolent and adopted every possible
means TO force the foreman to dis
charge them before the limit of sew
eral days was up; and if they we're
discharged they then demanded their
double time for Sunday, stating that
the foreman would not let them work
the stipulated time. Needless TO say,
this simply made q bad matter worse
Railway Review"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

Assuming, for purposes of argu-
ment, that the railroad brotherhoods
speak in good faith when they say
that what they want is not an In
crease of wages but an eight-hour
day. is the demand justified The
question is asked by "The Railway
Age Gazette" 1t thinks not, and IL
illustrates its opinion with circular
graph showing what it calls the
"actual hours" of work of a head
brakeman on typical day. We re-
produce the illustration here:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

problem. Distinguished committees
were appointed to study it. Before
they had finished their investigation
the change had come, the tide was
flood. and here now is a labor famine,
with a great many things waiting to
be made which might as well and
more cheaply have been made when
the unemployment of labor was
matter of emotional interest.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Monday, august II, 1916.

Stock Exchange speculation waits,
as it should. No form of human ac-
tivity ties up credit faster than bull
ish speculation in stocks, and with
so much foreign financing to do it is
very desirable that credit should not
be employed in that way. Yet, con-
sidering the incentives, it is remark
able that there has not been more
speculation. Wall Street has been
sobered by its responsibilities.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
WAR FINANCE
IN CANADA
How S135, 100000 Has Been
Advanced to the British
Government.
BY 8. ROY WEAVER.
ITAt-I a-ts,fn
Third Article

Toronto, Aug. Is.
November saw a rev departure IN
Canadian finance with the offer Of Il
domestic loan Of s5000O,000 5 per cent
ten year bonds. So splendid was the
response that the Minister vas able
70 double the authorized amount Of
these securities, and from the pro-
ceeds place the sum Of s5o.000,00o 70
the credit Of the imperial treasury to
assist in financing war orders placed
in the Dominion. As the result OF
the increase in revenues and the gov
ernment's loan transactions no further
advances have been required from the
imperial treasury since June. 1915.
The total amount Of such advances
stands at about f27,OOO,ooO. In other
words. since June. 1915. the Canadian
Government has been able to finance all
it, war expenditures in Canada with
out assistance from the imperial
treasury.
As the American loan was made spe-
cially to meet capital expenditure, the
government was able to devote s45,-
100000 by which revenues exceeded or
binary expenditure TO payment of the
principal of Canada's war expenditure.
AS result, Canada's net national debt
on March 81, 1915, stood at about $780,,
900 900, an increase of s13l 900 900 dur
ing the year.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

Keeping the war in funds is the
main present business of the finan-
cial world. The necessity of our
lending huge sums TO the belligerents
is a fact to which everything else
must adjust itself, especially Stock
Exchange speculation. We refer to
the loans as loans of money. They
are really loans of goods. In two
years we have sold to the world up
ward Of three billion dollars worth
Of goods more than we have bought
from the world. In the same time
we have received half a billion Of
gold. Roughly, the remainder Of
two and a half billions represents
goods delivered either on credit, for
which we hold Europe's evidences of
debt, or in exchange for our own
securities. Last week the forthcom-
ing British loan took a somewhat
definite form. 1t will probably be
for S250,000,000, secured by col
lateral in the form of American Sc
curities owned abroad, Canadian
bonds and issues of certain neutral
countries. The total English and
French war loans placed in this
country will then be $3.50, 100000.
Besides, large open credits have been
created and other large amounts
have been loaned by bankers on for
eign collateral. The British Treas
ury evidently could, if it wished, go
on selling short term bills to its own
people, instead of bringing out an
internal war loan for the present.
The English public appears to be very
fond of these short term securities,
for two reasons-one that they bear
high rates Of interest, and the other
that when the price of capital is so
very uncertain for the future every
one prefers TO buy short maturltles
in order that his money will soon be
free again. France will have to Of
fer another internal war loan very
soon. The fund out of which the
Bank of France lends the French
government money is almost ex-
hausted. There are many proposals.
One is for lottery bond. Another
is for a loan bearing only or 4 per
cent interest. The guess is that it
will bear per cent.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Motors and the War.

Preparatory TO the Italian offensive
$4,000 motor trucks conveyed 10 the
Trentino front over 10000 men, sS.'
900 animals, $4,000 vehicles and an
enormous quantity Of material. In al.
dition, 1000 motor lorries transpor'ea
10000 men, and covered l25 miles Z
day for 9 considerable period
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

The enthusiasm with which the
corporations perceive above every
thing else the interests of the COM
munity or of the public when strike
is on, cry "These are your railroads
and your facilities" and detach
themselves from all selfish aims
would be more convincing if it al
WAYS survived the settlement.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Egypt's Cotton Crop.

This years area under cotton Guilt
walton in Egypt is l,655,512 feddans "a
feddan is slightly larger than an acre.
The crop prospects are satisfactory,
though the bollworm mas appeared in
one or two provinces Of Lower Egypt.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

For many years this country, in
its trade relations with the world,
has been like a department store
without a delivery system. People
who bought goods were expected to
come and take them away. II could
be argued that this was satisfac-
tory way to do business. Proof was
that our trade increased faster than
that of any other country, not ex-
cepting Great Britain, which owned
the largest carrying system there
was. Capital was worth only so
much, whether you put it into one
thing or another. If we went in for
a merchant marine we should have
to invest in a delivery system a great
deal Of capital otherwise very profit
ably employed in producing the
goods for those TO buy who took
them away on their own responsible
ity. And these were not bad argu-
ments, in normal times. Experiences
since the war have not disproved
them, either, because people have
wanted our goods so badly that they
have found ways to get them away
in ships. But after the war it will
be very different, perhaps. One hes
itates to predict what post bellum
conditions will be, and yet it is clear
that the belligerents intend not only
TO trade harder in the world after
the war than ever before, like lot
of bankrupts with their debts to pay
off, but that so far as possible they
will employ their means of carriage
to promote their own ways of COM
nerce. So there arises more in
sistent and more intelligent de-
mand for an American merchant
marine. The National Marine
League has been formed by thirty
two very eminent persons in finance
and trade. It sends broadcast an IN
vitation to those who will pledge
themselves to the economic and in
dustrial welfare of the nation and
who will assist the work Of the
league by a contribution Of at least
two hundred and fifty dollars each"
The purpose is to unite the influen-
tial commercial and financial inter-
ests of the country in an effort to
convince the inland voter to the eff
feet as follows:
Because Of the British merchant
marine London has long been
the commodity and consequently
the money market of the world. To
maintain our present financial su-
premacy, the world markets for at
least such commodities as are the
product of the Western Henri
sphere, such as corn, cotton, tobacco,
rubber, leather. coffee, sugar, sill
yer, copper, etc, must be estab-
lished in the United States. But
this is possible only by American
control Of the ocean transportation
Of these commodities. Oceanic con-
troll is contingent upon national
legislation There is a widespread
latent desire throughout the coun-
try favoring an American merchant
marine, but this must be quickened
into an active insistent demand.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

bulls. acts as serious handicap
TO American vessel owners, con
dition that adds TO the strength
of our chief rivsl-Great Britain.
What we are unable to do British
companies are abundantly able and
ready to do, and. naturally, they
"skim the cream OF the business"
and IL is extremely rich cream. at
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

President Elliott of the New York
New Haven & Hartford Railroad, II
his annual report to the directors
presents the following dramatic pict-
ure:
The great business boom in New
England started about year ago.
The New Haven then had many idle
engines and many idle freight cars.
Even as late as August /, 1915, the
New Haven had 200 engines in
apple-pie order laid up on side
tracks with nothing TO do. Then
this business, this wonderful bust
ness. started Within a month or
two the New Haven was swamped
with business. Because of the
shortage of motive power President
Elliott telegraphed to every rail-
road executive east OF Chicago and
Pittsburgh in an effort to lease
additional locomotives. He also
telegraphed to Sir Thomas Shaugh-
messy of the Canadian Pacific, and,
as result, he was able 10 obtain
only twenty-three additional en-
gines. At one time there were
$4,000 loaded freight cars on the
New Haven's lines and from 10000
to $4,000 on other lines waiting 70
come into New England over the
New Ravens tracks.
These conditions are unusual only
in degree. and not so very much dis
tinguished even in that way. Or
every flood tide of business there il
congestion, freight embargoes, cal
deficits and wild confusion. On every
ebb tide there is despair. The ex,
tremes are only a few years apart
1t is well known that the flood fol
lows the ebb, and will continue 10 dc
so as long as the country grows, but
nobody appears to believe it. Wher
the tide is ebb equipment orders fall
off. The railroads buy only what
they have to have, which make:
everything so much worse. When il
is flood they all try to buy new
equipment at once, which make:
things great deal worse again. II
they had the confidence to buy equip
ment on the ebb tide, when material:
are cheap and labor is unemployed
they would not be competitors fol
both material and labor always al
the top. Equipment orders in the
first three months Of 1916, compared
with the first three months of 1915
were as follows:
1916 1915
Locomotives ...... 1877 18l
Freight cars .......3S,169 S,94s
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

One thing leads to another. Ships
and cargoes require insurance, and
most of the marine insurance of the
world has been sold in London, nat
urally. We should have to provide
insurance for an American merchant
marine. "The Economic World" calls
attention to this:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Finance Economics

GARET GARRETT, Editor
WALL STREET OFFICE: - Telephones,
Mills Building, Is Broad St. Hanover ool4
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14

war loan issued in November las. and
from future war borrowings Ia
preparation for the new domestic loan
the Minister has appealed TO the people
Of the Dominion 70 reserve their funds
for the Canadian securities. While
the government has the power 70 pro-
hibit the Offering Of foreign securities
in Canada, as has been done in Gres.
Britain, Sir Thomas White has pre-.
ferred to rely upon the patriotism Of
the Canadian public. The Minister has
pointed out that there Is abundance
of capital in the United States to sb-
serb all issues made in that country,
and the Allied interests will not, there
fore, suffer through Canadians refrain
ing from participation and outstanding
their resources TO meet their own rs.
tional needs.
Canada Growing Richer.
"But while the war is costing Cansda
at the rate of more than $3.50, 10000
year, and while that cost has added
several hundred millions TO cur nation
al debt, and the appropriation to date
represents an obligation Of more than
$50 head for every man, woman and
child in the Dominion. Canada Is.
nevertheless, growing richer national
ly. Amazing production and economy
in home consumption have brought
about what has been referred TO as
"Thc Canadian Miracle" They have
resulted In, for one thing. a truly re
n.arkable reversion in foreign trade.
Three years ago Canada's balance q
trade was averse to the extent OF nor.
than $500, 100000; in 1924, Of $50.
0C0, 900, and in 1914-15, Of s36 ,000,Oo0
Fo- the fiscal year 1855 the bslene.
was favorable TO the amount of $780,
000 900. Canada's total trade for the
year was approximately sl,200,000,00O.
an increase Of nearly s200,000,0 900 in
exports and a slight reduction in i'm
ports. This is the largest aggregate
trade in the history Of the Dominion.
Truly Canada has evinced wonderful
recuperative powers and made 8 re-
raarkable development after British
capital was cut of.
Issues in Strong Demand.
"The Dominion's war time financial
record is a splendid one. Whatever
money has been needed has been found
without difficulty. Canada's credit Is
absolutely unimpsired. Whatever
financing has been necessary has been
accomplished in a frank and open WAY.
There has not been and will not be any
resort to the issue Of unsecured paper
money. Gold reserves amounting 70
over 81 per cent of the outstanding elf
culation are held to-day against tn.
governments issues. Canadian seeu-
rites are in strong demand in the in
vestment markets of the United Stste''
and not only the Dominion government
but the PROVINCIAL governments, mn-
inequalities, railways, industrial ana
other corporations have resorted 70
those new markets with great success
which speaks volumes for Canadian
credit across the boundary and tire
faith OF the United States in the future
of this Dominion"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Interest on Borrowings.

In his budget Of 1867 Sir Thomas
White had 10 provide for 500 900 900 in
creased interest charges due TO war
borrowings and s2,ooO,0OO for pensions
payable on account of the war. This
will give some slight idea of the way
in which the war is increasing Can
ada's financial obligations.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-14
Increase In Public Debt.

The increase in Canada's public debt
for the present fiscal year will be
$3.50, 1000, including s2I5,00O, 900
which must be borrowed for war ex-
penditure and s35,000,O00 for capital
expenditure. In March announcement
was made Of the negotiation in New
York of new Canadian loan Of $751;
100000, the bonds being of five, ten
and fifteen year maturity. Thise pro-
vided, among other things, for the re-.
tirement of maturing notes TO the
amount of s25.OOO,OOO. The second
domestic war loan is the second step
in this years loan arrangements. and
the remainder OF the amount to be
borrowed this year will probably be
sought in the United States.
recent statement issued from the
Department Of Finance said in part /:
"Out of the revenues Of the govern
ment for the year it now seems prob
able that large amount of the
principal of the war expenditure will
be paid. as the budgets of 1915 and
1915 are both working out most salts
factorily. The balance Of Canada's war
expenditure this year will be betrayed
partly from the funds Of the domestic