davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
A Forecast
Fulfilled

When Mr.. Daniels thus pointed 10
the worldwide phenomenon of ris-
ing prices" who imagined that three
years later the government would.
By Executive order, establish prices
for the great basic commodities 100
per cent above those then prevailing?
The situation Mr.. Daniels so clearly
analysed in 1914 is here to-day, but
in Ear more acute form. The day Of
reckoning has arrived.
If our transportation system is 10
be maintained for efficient national
service at this critical period Of our
history, if new capital Is to be found
to provide for the necessary growth
Of railroad facilities, and if we are
to insure ourselves against the dis
aster of a collapse Of this indispensa-
BILE arm of the national defence, it is
imperative that we Immediately re-
value railroad service as we nave
revalued other industrial necessities.
This national problem will not be
solved by instructing the Treasury at
Washington TO loan the railroads all
they need" A further piling up of
railroad debt will not strengthen rail
road credit. The weakness Of the
railroad financial structure to-day is
that it is topheavy with debt. Rail
road credit has been too much meas
ured by ability to borrow when it
should be measured by ability to find
new capital by the sale Of capital
stock. The railroads need partners,
not money lenders.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
No One Will
Buy Railroad Stock

The market for new railway stock
has vanished. Since the beginning
Of the European war, more than
three years ago, there have been but
two issues Of stock-$10,000,000 of
Atchison preferred that was private
~ sold in 1915, and sl5,O00,O00 of
Chicago & North Western common
offered some months ago.
An examination Of the new list
ings Oh the New York Stock Ex-
change for the past six years dis
closes the amazing fact that only
1854, 900, 900 Of new capital has been
raised by the sale of stock to the
investment public. This is an aver
age Of but s27,00O,0O0 a year, in con-
trast to capital expenditures Of more
than $4,000 900 a year.
The listings Of new railway stock
sold to the public since 1912 have
been as follows:
Par value. New cash.
1912 westernMary-
land ... $685. 900 1885, 800
This stock was sold prior
TO 1912 at $50 n share
under a special act OF
the Maryland Legislat-
urc.
1913 Pennsylvania. 80, 1880 ss,177, $50
Louisville e.
Nashvill. 100000 $4,000, 900
Atlantic Coast
Line .. 6,250,000 10000
All but $4,000 OF the
Coast Line stock vas is
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
Prosperity OF
The Iron Trade

Pig iron averaged in the five years
before the war $lG.l5 a ton. The
decade average was $3.50. On this
average price was built the wonder
ful growth Of the Steel Corporation.
IN the war boom in the industry pig
ron recently rose TO the astonishing
figure OF $58, and the government
stepped in and fixed a war price Of
500, hundred per cent advance
above the normal level. Forty mill
ION tons this year at the government
price are worth 1914 100000 more
than If marketed at the prc-war
levei.
Bltuminous coaI--the great source
If power for our industries--aver-
aged at the mines before the war
{f.l6 q ton, and a variation Of ~
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

much as 10 cents 3 ton was often
serious matter in industrial costs.
The President by executive order in
August established war prices for
cGal running from 50 upward, and in
October advanced these prices by 40
cents. If we assume $2.75 as the
average government price for the
output of all bituminous mines, this
years production is worth sl,512,-
100000, instead of $627, $1,000, the
normal value. The government has
put a war valuation on bituminous
coal 1886, 100000 in excess. of the
normal value.
Copper was marketed at an aver
age price during the five years before
the war Of il cents. Copper quota
tions in the pre-war period above 10
cents were synonymous with high
tide prosperity. The enormous de-
nand for the metal in the manufact-
ure of munitions forced prices to
higher and higher levels, and copper
was in demand at 81 cents when the
government stepped in and set war
price at 23h cents. If the mines this
year produce a million tons the mar
ket value will be S526, 100000, in
stead of $4,000, 900, because Of the
increase CT .9h cents a pound above
the normal pre-war average. The
government has thus sanctioned q
war value Of the output Of the cop
per mines 100000 in excess Of
the normal value.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
Maintenance
Deferred

The rapid advance in the cost Of
maintenance-pound for pound, and
days work for days work-means
that, if the proper expenditures are
now being made for the upkeep Of
track and equipment, the mainten-
ance accounts should show an expan-
sion Of many millions - even hun
dreds of millions Of dollars. II these
accounts do not show this great in
crease, then it does not require the
services of a statistician TO demon
strate the fact that the carriers are
spending less than they ought to In
the public interest
Can there be any doubt that the
railroads have for months been COM
PEELED 70 put off normal maintenance
expenditures? Very few 2oads have
revenues 20 enable them to pay war
prices for the full amount Of labor
and materials needed for adequate
upkeep, andlthose that have the earn
ings have great difficulty in getting
labor and materials. More than this,
the depreciation of track and equip
rncnt is now at rate heretofore I'M
known in railroad operation, because
Of the enormous excess tonnage now
being hauled under the direction Of
the government and the Railroads
War Board.
While the government has estab-
lished war prices for the materials
consumed in railroad operation, there
Is also unofficial government sanction
for better wage for the great army
of railroad workers, following tho
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
Where Railroads
Feel the Pinch

The addition Of S1,750, 000,0 900 TO
the market valuations Of iron, coal
and copper by executive order from
the White House directly reaches the
foundation Of railroad operating
costs and has an intimate bearing on
the problem Of railroad freight rates.
War prices for pig iron mean war
prices for millions of tons Of steel
products in the form of cars, loco
motives, bridges, rails, structural
steel. An average advance Of 81 900 in
the costof cars alone means $3.50, 000,-
900 added to the annual cost of new
freight cars for all American roads.
An average increase of 100000 in the
cost of locomotives means S70,000,C0
added expenditure for the new loco
motives annually needed. These ex-
penditures the railroads must make
if they are to continue to perform
their public service. But how can
they make them out Of earnings still
on the old peace basis?
A quarter of all the coal mined in
the country is consumed in railroad
locomotives. The carriers are now
paying a dollar more Z ton than be-
fore the war. A dollar a ton this
year adds S15O,000,0G0 to operating
expenses, a sum equivalent TO 6 per
cent of all freight revenues. How
long can the carriers continue to pay
government war prices for coal and
find the money in government peace
prices for railroad service?
Maintenance accounts are now be-
irg scrutinized by those who try TO
solve big national problems by the
cold statistical method. But it does
not need a statistician to show what
is happening to the upkeep Of rail
road property in the service Of the
public. The maintenance Of way,
structures and equipment last year
cost little more than a billion dol
lars, or about % per cent Of total
revenues. But in this period Of
mounting prices for labor and ma
terials the only true measure Of
maintenance is the amount Of la
boz and the amount Of materials
expended. Dollars are a most I'M
trustworthy measure of work done,
when the dollar spent to-day at war
prices gets no greater result than so
cents spent a year or two ago.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

! mandate Of Congress a year ago 70
add some S60,000,000 70 the payrolls
of train employees. The total payroll
last year was close to 81 500, 100000.
When the Steel Corporation has
raised wages nearly GO per cent dur
ing the war, and when industries all
over the country are bidding for la
Dor at the highest prices ever known,
it is difficult to imagine how the car
riers are going to escape an average
increase of much less than 20 per
cent. But 20 per cent advance In
all railroad wages means 100000,
900 added to operating expenses. This
is equivalent to a II per cent advance
in freight rates.
In that fateful week at the end Of
July, 1914, when Europe was trem-
bling on the brink of war, the Inter
state Commerce Commission at
Washington made public its decision
on the petition Of the Eastern rail
roads for a general advance in
freight rates. While admitting that
"the net income Of the carriers was
smaller than was demanded in the
public interest" the commission was
unwilling to grant the readjustment
Of rates asked for, and urged the car
riers to widen the narrowing margin
between revenues and expenses by
operating economies.
From that decision two Of the
members Of the commission dissent
ed. In his Illuminating analysis Of
the economies Of transportation
finance Mr.. Daniels, then the young
est member Of the commission,
sounded this prophetic warming:
The worldwide phenomenon Of ris-
Ing prices is by this time no novelty.
II has nirrored itself in the rising
cos. Of living; it has evoked, and
most properly, advances in wages and
salaries; 1t has conceded with an in
crease In the nominal rate Of interest
where part Of the interest so called
is but compensation for the antici
patej depreciation Of the capital sum
later to be repaid. This rise in the
price level must eventually BIO reck-
oned with in railroading. For a time
its effects may be masked By adven-
ttious increases in the volume Of
traffic, but this temporary relief in
its very nature is very uncertain, and
sooner or later the dimculty is soon
TO resppear. For time it may be
circumvented BY extraordinary econo-
mics, but in its nature it IS mex
orable II must be faced, not trihed
with.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

This compilation does not include
about S43,OOO,0oO Of stock issued in
exchange for convertible bonds sold
prior to 1912, and about S14,000,0oo
Of the shares Of subsidiaries taken
by controlling companies. 1t also
does not include about $l42,000,0OO
paid in assessments by the share
holders Of reorganized companies.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
Remarkable Progress
OF the Railroads

The railroads have made greater
progress in applied efficiency and
economy under the lash Of war needs
than any other business. In the face
Of the greatest obstacles they have
made a remarkable showing. Gov
eminent and its agencies turned
about in their attitude toward the
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04
Cannot Finance
Growth Out of Earning.

Most industries finance their
growth very largely out of earnings,
but this course is not open to the
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

sued to enable II 70 sub
scribe 20 it's share OF the
Louisville & Nashville
.ren,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-04

1914 Great North
Lackawanna. 1900 900 $4,000, 600
1915 Atchison :. 10000, 900 10000, 600
1916 None. .... None None
1917 CT icago
Northwest
Total .$t32,s2o3ao
To this must be added
Norfolk e. Western
stock issued in e1-
change for convert
i mo-. this oH period.. .... st,sss, 900
Total new cash from the
public by the sale OF
railway shares from
1910 N 1917 .S1o3, 3r1Su
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
Newspaper Comment on
Situation Caused BY
Sinking of the Laconia

New York, Feb. 2S.-New York cdi-
torial comment on the sinking of the
Laconia and the international situation
in general follows:
Under the headline "Time to Declare
War;" the Tribune says:
:" At last the administration faces an
covert act on Germany's part which it
can hardly explain away.
{" Mr. Wilson has said many times
that he would not tolerate any more
murders He has pleaded himself again
and again to protect our people in their
legitimate and peaceful pursuits on the
seas Now the occasion has come which
compeIs him to make his words good. If
these words mean anything, the admin
istraton is bound in honor to ASK coli
gress to declare war. Nothing short of
a declaration of war will suffice Z"
World: cit is disgrace to congress,
il is disgrace to the American people,
it is disgrace to the eternal principles
of the republic that there could have
been an hour s wrangling and haggfing
over the question whether the United
States should maintain its honor or sur
render abiectly to German ruthlessness.
"There has been enough Of national
humiliation. A congress that Is not un-
dualifiedly and reservedly American in
this crisis has has made itself the kais-
er's ally"
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
BOAT CARRYING HOYS WAS FILLED WHEN
LAUNCHED--EIGH ARE CHILLED TO DEATH

Washington, Fb. 9S.-How Laconia
lifeboat numb Z in which Mrs. and
Miss Hoy died { % osure at sea, was
"raked and flung 2 ast the Cunard-
er's portside by ! &. qinOus swell >
was briefly but dral q Nlly told to-
day in two more state u rtment dis
patches from Consul Fl Queens
town, and Ambassador Pa = London
Frost IS message said he 2, affi-
daft from Third Officer Che =, who
talked with the commander of sub
marine which blew the great snip and
eight persons to their doom.
Page s cable merely said the admir-
atty had officially informed him the
ship was torpedoed without warning
and that Austin Hoy had called at the
embassy to say his mother and sister
were native American citizens.
The dispatch from Consul Frost said:
"Have seperate atfidavits Floyd
Gibbons, Arthur Kirby, Father Joseph
Waring, Mrs. Colonel Harris and Robert
ellis, and joint affidavits, 10 Ameri-
can negroes, joint affidavits six SEN
ior officers and join affidavits crew
survivors boat number eight and sworn
memorandum from Third Officer Chop
pin, who conversed with the submarine
commander.
In Water All Night
'sGillis was nightwatchman. from
Scotland, naturalizcd in New York, Oe-
ccmber 8, 1906.
"Deaths of Hoy ladies and negro
covered by affidavits, show boat num-
Der eight was raked and flung by low
ering against port side and filled with
water at once, but floated away by its
tanks; became separated from other
DOats and was picked up by the second
patrol the twenty sixth at a. m. Eight
Of its % occupants succumbed during
the night.
"Mrs. Hoy was the first to succumb
at 1870 a. m. Then the negro, Coffey
about AS a M; then Elizabeth Hoy
about 2:30.
"Several bodies were thrown over
board during the night, but the Hoy
bodies not until daybreak.
Survivors All Right
"Coffey's address was care of Mary
Jones, 8l3 Watch street, Baltimore.
Kirby address was Bainbridge, N. Y.
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
GERMAN PRESS is
ONE IN INDORS|NG
SINKING LACONIA
Claim British Use Ships First
As Transports Then As
Passenger Ship
INFECTIOUS DISEASE"
OF PRISONERS A BLIND
Was a Carrying Out of Order
That Hospital Ships Would
Be Sunk
BY John Grandens

Omitted Press staff correspondent
Berlin, via wireless to the United
Press, Feb 2S.-First editorial comment
of German newspapers on the sinking of
the Cunard liner Laconia, justified this
latest example of the German subma
rine warfare by suggesting it was mere
ly carrying out of the German warn
ings that hospital ships would be tor
pedoed
The Tagelischc Rundschau called at
tention to the practice of the British
admiralty in changing the character
of it's ships.
"The Laconia, " the editorial as
serted, "was ON the British list of war
cruisers in 1916. If she has now met
her fate in the passenger service, this
is one cause out Of many where the
English admiralty uses ships fitted for
warships one time as warships, then as
passenger ships. then as hospital ships.
Whether this is done for tactical adj
vantage, or is the result of shortage
of ships, we do not know.
"This is a typical case of the Ger
man order regarding hospital ships.
The glisches-zlHdsehau was the
first OF the Berlin newspapers to make
editorial comment on the Laconia.
Continued on page four.)
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
WOMEN'S BOYCOTT IS
LOWERING PRICES
Butter, Eggs and Some Vege-
tables Cheaper and
Prices Dropping

Chicago, Feb. -Foodstuffs-
toes butter, eggs and some vegetables
continued to be weaker and "cas.
ier" on the local markets today, fol-
lowing the boycott inaugurated the
first of the week.
Retailers, unable to determine just
to what extent the housewives would
carry their warfare were reluctant to
buy heavy.
Potatoes which sold down to $2.S5
a bushel in carload lots yesterday were
scheduled for additional drop today al
thoueh there appears to be a real scare
ity. Eggs tumbled from five to seven
cents yesterday and dealers asserted
that the increasing supply would force
them to lower levels today.
Butter, yesterday off one cent a
pound, has dropped six cents already
this week. Today's quotations were ir-
regular but inclined to be weak and
lower
Sugar, selling last week at around
$500 per hundred was quoted at $502
today, although commission men were
asking as high as $3.50 and buyers
were offering 1913.
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
Carload Of Flaxseed
Shipped to Montana

Fifteen hundred bushels Of flax seed
were loaded into ear yesterday at the
Oregon state penitentiary and shipped
to Conrad, Montana, where IL will be
used by the Northern Flax Fiber com
pany of Great Falls, Montana. This is
the first full carload Of flax seed ever
to be sent out Of the state, although
smaller shipments have been made. The
price received was $2.75 bushel, {. o.
b. Salem.
The flax would have been sent soon
er but the Oregon Electric company was
unable to furnish car. Recently Mon
tana flax men were here to inspect the
flax industry and the mill at the pcni-
tentiary. After the inspection, they ar
ranged for the flax seed. Superintend-
ent Crawford is much pleased with the
results obtained.
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28

The congestion of freight, blamed, at
least in part, for the present high prices
of food and other commodities, is a ma
tion wide condition, traffic, industrial
and commercial problem such as the
country has not faced before. 1t all
began with suddenly inflated manu-
featuring activity, for which the war
was almost solely responsible. This
made an unprecedented carrying load
guidance Of a freight flood through
channels enough different from the ord
mary courses to present in itself an en-.
ormous problem. The problem, by make
shift measures largely, was on the point
of solution when incidental hazards
crowded in.
Take the congested area shown in the
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28

Herald: " All doubts about the ncees-
sity Of the government s taking immc-
diate steps for the absolute protection
of merchant vessels should be removed
by the unlawful sinking Of the Laconia.
ing its threats into action, it is of great
este importance that this nation present
united front. f"
Chicago Tribune: "The nation is at
the turning point of the road. The
president has asked for a painted lath
TO WELD in field of steel. If congress
tulns away from the obvious need of
the nation for full and swift prepara-
ton, and, refusing the warnings of ex-
perience continues to shirk, and post
pone, we shall pay for il in blood and
humiliation. !"
Chicago Herald: "The eyes of the
world are turned on congress, Presi-
dent Wilson has taken his unmistakablo
stand. But no one can speak with as
surancc Of a congress that is still talk
ing of filiDuster. 1t is this state OF
mind which makes Germany willing to
undertake an outrage such as the SINK
ing of the Laconia-the long feared ov-
ert act, For congress TO fail at this
crisis; to endure filibuster in order to
escape making decision would be
shameful exhibition of disloyalty anu
unforgivable. To refuse to support the
president would be little short of ma
tional calamity. f"
st. Louis Globe Democrat "The sink
ing Of the Laeonia is striking and con
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28

rowing. If one is not charter mem
Der of an association, h. may be
elected member by the board of
directors When application is made
for loan, the applicant must sub
scribe for five per cent of the amount
he wants in the Federal bank stock.
For instance, if loan for $1,000 is
wanted, the applicant must buy 500
worth of stock in the Federal bank
This amount is taken out of his loan
and is returned when the loan is paid
The process is just the same as buying
bank stock with the assurance that it
will be bought by the bank when the
loan is paid off
Can Borrow so Per Cent
Then the applicant fills in the appli
cation blanks which are sent to the
Federal bank at Spokane. An amount
equal to 30 per cent of the value of the
land can be borrowed on it and the
appraisers are members of the associa-
ton. Five years is the shortest time
loan and forty years the longest Any
loan can be paid off at the end Of five
years.
In order to gradually reduce the loan,
the government requires that not only
the interest must be paid each year,
but that part of the principal loan
must be paid, according to the length
CONTINUED on page two.)
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28

map reproduced herewith, for instance
Industrial plants in this great manu-
featuring section Gust as elsewhere)
rapidly increased output until many
were working night and day. This doub
led both incoming and outgoing freight.
1t also doubled the demand for coal and
labor Under favorable circumstances
freight facilities were taxed.
Then came a prolonged cold snap.
Two weeks Of zero weather benumbed
the nerves Of the freight system in
Chicago. There was deep snow at Buff
falo and Black Rock, among the most
important Of freight connections. At
Detroit the river froze and four great
freight carrying systems could make the
crossing only through tunnel adequate
, for one.
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28

Railroading in severe weather calls
for more coal, more locomotives and
more men In spite Of increased output
at the mines there was coal shortage,
for industrial plants were demanding
coal and paying the price as never be.
fore. The very sluggishness Of their
own choked systems made it difficult
to get what coal there was, and, rail.
road men relate, the coal they did re-
ceive was poor in quality, which meant
less steam. Locomotives were not nu-
merous enough for the emergency and
the munitions makers had corner on
the labor market. Thus freight handlers
were at a premium and switch points
froze. In the picture are shown freight
cars tied up in great railroad yard
Daily capital journal. (Salem, Oregon) 1903-1919, 1917-02-28
GOVERNOR APPOINTS
HIGHWAY commission
S. Benson, Portland; W. |,
Thompson, PendletOn, and
{. ]. Adams, Eugene

S. Benson representing the Multno
nah county district W. L. Thompson of
Pendleton for the eastern Oregon dis
trict and E. j. Adams of Eugene for
the western Oregon district, were ap-
pointed by Governor Withycombe yes
terday us members of the new highway
commission as provided in the new
road code passed by the twenty-ninth
session of the legislature.
Mr.. Benson was appointed for the
three year term, Mr.. Thompson, bank
er of Pendleton, was appointed for the
two year term, and Mr.. Adams, who is
we'll known as contractor and lawyer
was appointed for the one year term.
Salem will be the headquarters of the
commission, although it may hold
meetings at various other places as
may be necessary Concerning the APP
pointments, Governor Withycombe said
Yesterday:
$50 far as the new highway com
mission is concerned, feel my work
is finished now What may be done will