davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

is obvious, for if the actual earnings
which are available are not pre-
scented. it is safe to assume that they
are too poor to be used as a selling
argument. Appeals for new capital
to extend the business would be best
supported by statement indicating
the profit already realized. The fact
that no statement is given, except
perhaps an estimate of what will be
earned with the new capital, is
very suspicious circumstance.
The next factor to be considered.
the character Of the house or syn
dicate handling any issue, has an i'm
portant bearing on the value of the
security. A house of established
reputation, with a record of years
of honorable dealing and with large
capital behind il, is more to be
trusted, and its offerings are more
likely to prove of value. than small
house which lacks responsibility and
financial standing and has never
been identified with any substantial
financing or promoting. Success IN
any business is invariably guaran-
tee of the fair treatment upon which
it is founded. Reputable houses may
occasionally make mistakes and sell
securities in enterprises which prove
to be unsuccessful, but they are al
ways willing 10 help their clients
avert loss. Their time. their expert
ence, and in many cases large sums
Of their money are spent to put such
enterprises on paying basis.
Therefore. it behooves the investor
to carefully investigate the standing
Of the firm which offers the security,
and this information can easily be
learned by inquiry at your bank.
I'm addition 10 forming a general
opinion based on the kind of adver-
Using being done, and the reputa-
ton of the house or syndicate han
ding the issue, a careful study of
the circulars or literature describing
the particular security should be
made. The factors to be considered
in Analysing new property are the
character Of the management, the
location and equipment of the plant
for economical production Tor in the
case of mine, the existence of min
erals which can be mined at a
profit. and the demand and the ar
Iangements. to distribute the product
commercially.
These factor. can be developed az
follows:
First. the management. Are they
men of reputation? Are they men Of
ability aud experience in the bust
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Exchange Rates
Reflect Changing
Fortunes of War
American Dollar with Full
Content of Gold Takes
Place Alongside English
Pound Sterling

ONE Of the most interesting and
~ at the same time important
phases of the financial side Of the
war has been that dealing with the
foreign exchanges. The disruption
Of the worlds trade and commerce
has been reflected nowhere so dis
tinctly as in the movements of val
ues of foreign moneys. In the main
the currencies Of the leading bellig-
erents have deprecated sharply in
terms of neutral money because Eu-
rope has bought heavily and her sales
have not proven an adequate offset.
In recent days we have seen the Ital-
ian lire drop to level where Sl.50 IN
Italian money is required to buy one
American dollar. The Russian ruble
has fallen from a normal value of
slightly more than 81 cents to less
than % cents, the German mark
from % to II cents, the Austrian
kronen from 20 cents TO II cents
and the French franc from ~ cents
to II. The English pound sterling
has fallen in value from $4.86625 to
S4.7550. These are only a few eX-
smples of the effects of the war on
exchange values.
Just how the foreign exchanges re-
feet the shifting currents of inter
national trade is discussed in terms
understandable by the layman un-
versed in the intricacies of the mar
ket by E. T. Wagner, Of the foreign
department of the Guaranty Trust
Company, one of the largest buyers
and sellers Of exchange in this coun-
try.
Like all commodities, foreign ex-
changes, he points out, are subject
10 the law of supply and demand.
They reflect the imports and exports
Of every country and all transactions
which involve a transfer of funds
from one country 10 another.
When the European war broke out
in August, 1914, the first effect was
a deadlock in trade. In anticipation
Of the war European investors had
deluged the United States with such
amounts Of stocks and bonds that
for many months American bankers
we're unable TO take up the secur-
tiles. On the other hand. long bills
drawn on Europe were daily falling
due and further strengthened the
petition Of European bankers. There
was an urgent demand for transfers
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Future Changes Depend
On BeIligerents' Success

I'm regard TO the future course Of
the exchanges it is impossible to
venture a prediction. So long as the
war does not take a decided turn
either way there can hardly be any
recovery. All the warning nations
are contending with adverse trade
balances, and in order to settle them
the governments must obtain credits.
Owing to the size of the credits re-
quired, the fluctuations of the eX-
changes are measurably dependent
upon the ability Of the belligerents
10 command credits. Credits are
either secured or unsecured. In case
OF unsecured credits The transaction
can be consummated only if the
lender believes that the borrower
will ultimately be in a position to
meet his obligations. The same holds
true in part in case of secured
credits, especially when the col
lateral is made up Of the securities
Of a belligerent.
If the war takes a turn in favor
CT the borrower there will be an
increase in the number of lenders
willing TO extend credits. The cur
rency of the borrower will be in de
mand, and the rate of exchange will
naturally appreciate. At the presen;
time the lenders are chiefly neutrals,
and the general fluctuations of the
exchanges may therefore be taken
a. indicating-to some extent at
least-the average disposition of the
neutral world When normal condi-
tons return it is natural TO look
forward to a recovery Of all the eX-
changes. The uncertainty of fuctua-
tons Of exchanges abroad will make
it difficult for the exporters and i'm
porters in this and other countries
20 deal on the basis of foreign cur
rcncies. Dollar exchange, therefore,
will be much more stable and afford
a much better standard for interna-
tional transactions.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
French Wheat Growers
To Receive Premiums
Sum Equal to 1889. a Bushel
Will Be Paid on 1917 Harvest

A law published in the Journal Oh
c!el Of France under date Of Feoraap
1. 1917, provides that a premium Of
francs per 100 kilos OF wheat ilH
cents per bushel) shall be paid TO q"
French farmers harvesting this eersA
during 1917 and yearly until the NAV
mum selling prices now enforced sna.
be abolished. A further sum OF
francs per hectare (Sl.56 per Se"'
will be allowed to farmers Tor sA',
hectare of wheat planted over aa'
above the total surface planted
them in the 1876 season. TO "
tain this premium farmers must 'n''
a declaration Of the acreage so"n F"
wheat by them during the lslo-lo &c
son within two months after the pD'
LEGATION of the present law. Is's -
makes no change in the provisions
the law Of July %, 1916, which 0''s
at SO francs per 100 kilos lSl''o ~
busheD the maximum selling price
wheat bought from the farmer
latter law TO remain in force do'.'
the war and the year following '
general rehabilitation OF the f'''
army.
The premium will also be se'0'O
TO wheat grown by French farmers !,
the Franco Swiss frontier zone anu
Swiss farmers in the same zone
vided the wheat is transpor'e'
French territory and proof "
that the -four thereof was eoh'1 a
in France. Fraudulent attempt,
obtain the premium are punisnsO" ~,
law. and farmers guilty Of suea 80 "a.
will be deprived OF their right
ure premiums.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

ing any stock where an income &C.
count and statement Of assets and
liabilities are not available 4 study
Of the income account will reveal
whether or not the company has a
profitable business and the statement
of the assets and liabilities will SHOW,
when properly analysed. whether or
not the company has sufficient WORK
ing capital, whether it makes a fair
return on its capital invested, and
the comparison of succeeding state
ments will show the progress Of the
business under consideration II the
investor must purchase unapproyed
and speculative stocks, az least he
owes it to himself to investigate fully
and carefully every condition that %
any way affects the possible success
OF the company.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

ness they propose to enter? Second
the manufacturing end. Where is
great factor is efficient management
to observe the success Of Ford
Motors, where efficiency Of opera.
ton is the basis of success, or to the
Anaconda Copper Company, where
remarkable selling agency enables
the company to get large share Of
business. On the other side we now
see many copper companies with
metal selling at 30 cents a pound
doing business when they could no,
afford TO operate on 20-cent copper
Such companies can pay dividend,
for brief period while the boon
lasts, and then they will sink into
idleness and their stockholders will
the factory located? Is il properly
equipped for the business? Does The
company own the plant outright,
Are supplies of raw material readily
procurable? Can adequate labor he
had? Third. the distribution end
Has the product been actually sold
or contracts accepted? Can The
product be marketed in competition
with other and similar products? Is
the demand steady and growing?
To illustrate these points. we neai
but turn to the business career Of
Charles NJ. Schwab 10 realize what a
have to wait Cor another war for
further dividends.
In general the inexperienced in.
weston will do well 10 avoid purchas.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

thus give rise to quite an EXTENDED
speculation in foreign currencies.
This method. however, will have
no effect whatever upon our own
standard. as the prospects are that
sooner or later the relative value OF
the gold will be reestablished. But
the economic results viii be FAR
reaching. inasmuch as it will mean
continuation of high prices Tor all
commodities in foreign countries
and. if considered in the light OF tax
alton. possibly might be considered
wise craftsmanship.
The American dollar, with ITS tuIl
content of gold, has become a con-
spicuous mark in the South American
field. whereas in former years 1t was
held in contempt, thrown from pillar
to post and subject to the vicissltudes
of a thing that was notwanted. While
the American dollar has not dis-
placed the pound sterling, 1t has
taken it's place alongside of the Eng
lish Unit in such way that it Will
rank pari passu with that celebrated
coin and with any other coinage OF
the world. Incidentally, with this
-1.a.;o,, 81 o,,r tnit tho attention OF
the world has been drawn to New
York City as a metropolis in the true
sense of the word, and the result is
that the draft on New York, whether
on demand or on time, will be sought
after in the future with as much
avidity as that on any other finan-
cial centre.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

offering exchanges went to record
high levels, with hardly any trans
actions.
War Orders Use
Up European Credits
The deadlock was broken when
war orders began to be placed IN
the United States. 1t was soon real
lied that Europe was compelled TO
Luy abroad large quantities Of raw
materials, foodstuffs and munitions,
and that she would have to curtall
her exports to a considerable extent.
The excess of exports over imports
rapidly grew larger and larger, and
as soon as the credits of European
bankers were exhausted the position
Ct the exchanges was reversed. Ever
since, they have had downward
trend. which is reflected in all the
exchanges of the belligerents.
The meaning OF the exchange
fluctuations is differently inter
rreted by the belligerents. The Ger
mans hold that the depreciation of
marks and kronens is of small con-
sequence. because the transactions
are restricted. Germany is import
ing heavily s-om adjacent neutral
countries, but these imports are
small compared to the purchases OF
England and France in the United
States and in other neutral coun-
tries. As a consequence thereof the
foreign indebtedness incurred by
Germany is relatively small, whereas
the indebtedness of the Allied coun-
tries is large. This is the main
German argument. Thus, after the
war, Germany expects to be in a
much stronger position than the
Allies, ard looks forward to obtain
ing credits in neutral countries in
order to resume her industrial ac-
Invites.
On the other hand, the Allies hold
that Germany's trade balance is
small as compared with their own;
therefore, the inability Of German
exchange TO hold its own is an indl-
cation that Germany cannot OBJ
tain sufficient credits abroad. They
further claim that they still hold
large amounts Of neutral and colo
NAL securities which they can pledge
Is collateral for further loans.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Management Badly Deranged

Scientific management of traffic de-
partments on the Western roads OPP
Grating north Of the Iowa Minnesota
line has been neglected as never before
since January ], and that of necessity.
Car shortages East and West and alb
solute inability to lind sufficient cars
made il bad enough. Then came
weather such as was not experienced
before since 1906 to 1907. In that sea-
son there was car shortage so severe
that Franklin X. Lane. then Interstate
Commerce Commissioner, and his asso-
ciate. James II. Harlan, came here and
held hearings 10 find out why quanti-
ties of grain in North Dakota could not
be moved.
The l906-l907 experience was not o
bad az that Of January and the irst
half Of February this year. Weather
% 20 30 below zero persistently hung
on. breaking only occasionally to tenn
peratures warm enough TO bring on
heavy snowstorms.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Promise of Big Profits
The Usual Lure

It may be said OF any new STOCK
issue that its value varies with the
conservatism of the advertising be-
ing done. The more splendid and
aluring the promises the less salts
flying the performance, is usually
the experience. In analyzing the ad-
vertisements of new stock issues,
therefore, careful attention should
be directed to the following parti-
culars:
First, auoid the bUe of extremely
large profits, the :nUajiable promise
of dishonest promoters. Admitting
that the promoter is honest, which
unfortunately is often not the case,
the enterprise is subject to all the
vicissitudes attending the establish
ment of any new business. + it is a
manufacturing enterprise the com
pany must first have a market for
its products, and, second, supply
the market at a price which IS
not above the prevailing rate,
and which will show profit. There
are so many elements which 20
to make for success or failure
that a change in several, or even
one. of them may decide the fate Of
the enterprise. No man can honestly
promise large profits from an enter
prise which has not yet demonstrated
its earning capacity; if he does the
inference is obvious. People fail to
use common sense in matters Of this
kind. If the promoter has rea-
sonable expectation of making the
enormous profits which he promises
ne would not be compelled 20 offer
the stock TO the general public, but
would find the funds to finance the
enterprise readily forthcoming. This
does not mean that legitimate COM
panics do not ind it necessary to
appeal to the investor for funds, but
certainly we can say that any appeal
which is based on the expectation Of
unusually large profits is suspicious.
Second, ocoid those securities
where the expected PROFITS are based
on the record of other successful
com panies IN the same fcld. This is
one of the most popular bats used by
the promoter Of shady securities.
Henry Ford has made his name a
household word and amassed great
wealth for himself and his stockhold-
ers in the automobile business; John
ID. Rockefeller is known wherever
oil is used-but this does not mean
that all motor companies or all oil
companies are good. These men sue
ceeded because they were genluses
in their own field, and were always
step or two ahead Of their competi
tors. Many worthless copper and oil
stocks have been sold on the record
and strength of Calumet and Hecla,
and on cunningly worded references
to the profit realized by holders Of
Standard Oil. Ten years from to-
day there will probably be scores of
worthless motor stocks now doomed
as future Fords or General Motors,
to Join the copper and oil stocks
which now fill the graveyard Of de-
funct issues. When promoter
starts to tell you how much his stock
will earn, because such and such an
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
BY ]. DORDON DORRANCE
Maryland state Board of Forestr

"HE South is turning a new
leaf II is not a resolution
nor an economic aim born
WITH the New Year. It is more than
that 1t is the growth of a section
which cannot be kept down by long
raised barriers. The natural facili-
ties and raw materials were there.
The rest was only a question of time,
q matter Of course.
Perhaps it was a war-given I'M
rulse and the extraordinary stimu-
lus resulting. There is not the
slightest question that this had much
20 90 with it through the overnight
creation of new channels of inter
national trade and domestic manu-
facture. Yet, all this aside, the
South has been awaiting such
chance. and when it came it was
itself prepared TO jump upon and
seize it and turn it to the best ad-
vantage. which it did. The South
still the farmer, the planter, of the
country-refuses to be satisfied with
the single distinction.
Raw materials from her fields, her
mines, her forests and her streams
nave been gathered, dug up, cut
down and brought in for outside
manufacture long enough. n CEN
tury-old custom appeared TO decree
that when this wealth of product
had been brought together it should
hc put aboard trains or loaded on
ships. packed up and sent away for
manufacture. the manufacturers
profit on their output lost and an
other margin surrendered when
their own staples were sold back To
them. It was a top-heavy and eco
nomically unhealthy way for any
section TO do business, and 1t react
ed on them all, planters, miners,
lumbermen-theirs the work, large
profits for the others. 1t cut deep.
Labor must necessarily be satisfied
with low returns, owners seldom ap-
proached the best standards of eco
nomic or industrial good health, and
most Of the manufacturers, what
there were Of them, were cramped,
if not starved.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

of the kind of argument the fake promoter even in
these enlightened times, induce the unsuspectng apostle
of thrift who may have saved few hundreds possibly
few thousands Of dollars, to invest in properties which in
most cases have no value except in the minds of those
who issue aurng prospecuses setting forth their merits
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
A Struggle with
Natural Conditions

People felt it, Of course. Shift
lessness is not unique TO any sec
ton, and the South should no more
rave been tagged exclusively with it
than the West with a six-shooter
character. Though at the start both
we're, to an extent, the fnger-prints
Of natural physical conditions and
heavy economic pressure, both to-
cay have been overcome. A region
that masters man-made customs and
handmade barricades deserves both
credit and encouragement. The
South has perceived an opportunity
10 be more than a planter, d produ-
cor, a newer of wood and drawer
Of water, and it has realized 1t
forthwith. AS, economically, the
ether state of things was somewhat
evident in the lives and aims of a
PEOPLE, 30 is there now apparent a
new and sharply altered modus oper-
andi. You see ii no alone in the
face Of industry, but in the way all
things are working to larger end.
Sporadic outcroppings Of years past
have attained a permanent introduce
ton TO the greater fields of real in
6ustrial endeavor.
You sense it as you travel south
ward from Baltimore or Richmond,
skirting the lower coasts 20 Charles
ton, Savannah, jacksonville; leaving
the shore-line and journeying inland
through Salisbury and on TO the
Swiss country Of America, near
Asheville; thence down again
through the pine lands and planta-
tons Of both Carolinas to the for
ested mountains Of Northern Geor-
gia, to Atlanta; then Alabama, with
it's woods and ore mines-but need
less to go further. For our purpose
1t is all as one. As you cross great
fiFNI1B Win AOi IObib CuiOuRh up
land forests still clad in places with
timber Of virgin growth, thread
growing, living fields, pass plan
tations with the bloom Of ripen-
ing crops stretching afar out Of
sight, and penetrate, perhaps, the
mines, YOU are aware Of something
that Is insistently impressing you.
IL is work. Shipbuilders' hammers
are sending up their echoes from
harbor and river basins, the ring Of
axes cuts through the silence Of the
Blue Ridge forests, plantation hands
sing as they work among the crops,
and coal and iron vomit from the
mines in a dirty, busy stream. Near
the cities a pail Of good, soft coal
smoke hangs over factories that are
working day and night. Some Of
them, these last, are new, many but
opened up; all are busy. eve get
out the products; why not manu-
fscture them" Why not. indeed?
And they are doing IT,
All Hands
Are al Work
n j. the new spirit. and - is full
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
All Hands
Are al Work

n j. the new spirit. and - is full
NJ promise economically. As you
t.ace the varying feature Of Duai.
rcss fife IN, he "old South" you soc
Case lEings>-the mountain white
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Tfainload
Theory Yields to
Cry for Food
Transportation Costs Grow
with the Increasing Move
ment of Empty Cars
Minneapolis. March /.

If James J. Hill, who was the great
est exponent of the idea that the way
TO make money railroading IS to load
the biggest quantity car VIII hoio
and move the biggest trainload unit
were living to-day, he would sec all
his IDEAS for the time being disregarded.
New York Central, Pennsylvania, Erie
Baltimore & Ohio and other Eastern
railroad cars are being moved empty
400 miles, from Chicago to Minneapo-
lis, these days, at the rate Of sixteen
ffty-car trains week, to take out
-four and grain. This by order OF the
Interstate Commerce Commission.
Perhaps the greatest violation OF the
principles laid down by Mr.. Hill ever
known on his road was that which oc-
CURED one night last week, when the
Great Northern hauled a train Of sew
enty empty refrigerator cars from
Minneapolis to Princeton, Mimi, which
is the centre of a rich potato growing
country. to take out seed potatoes for
planters Of Oklahoma, Northern Texas
and Southern Kansas, dependent upon
Northern grown seed. The annual
movement southwark had been delayed
since mid-January.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Confusion for Accountants

Railroad accountants who work on
the significant tables that always ac-
company an annual financial report, and
show the tonnage per car mile and
per train mile, will find some very un-
usual results in the period up to June
80 next. More empty cars are now on
the rails for long hauls in the West
than ever has been the case. Even the
annual grain crop movement, although
that commodity flows in one general
direction, is handled normally with the
empty car haul-back TO grain loading
stations held down closely by scientific
management.
Trainloads Of empties do at times OF
necessity 90 out Of Minneapolis, St.
Paul. Duluth or Chicago into territory
that is new, and where in banner
crop year production of what the COM
muni.ies have to sell runs far ahead. in
bulk at least, Of what they will take
back from the commercial centres. But
coal and building material and many
other shipments are made, in advance
of community requirements and for
country storage. so skilfully that the
wastage Of hauling empty cars is cut
10 the minimum.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04

to Europe, and as there were none
offering exchanges went to record
high levels, with hardly any trans
actions.