davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1919-01-26
Valuation in Case
OF REORGANIZATION

In the case of the reorganization,
consolidation or change Of ownership
of the trade or business after January
!, 1911, the invested capital OF the
predecessors business for the pre-war
period shall be deemed to be the in
vested capital for such period of the
corporation now engaged in the busi-
ress. In the case Of reorganization
consolidation Or change of ownership
Of the business. or of the change of
ownership Of property after March 3,
l917, if so per cent or more of the in
terest or control therein remains in
the same persons. the assets trans
fcrred shall not be allowed a higher
value in determining the invested capt
tai than would have been allowed un-
der the previous ownership.
New-York tribune., 1919-01-26
Information
For the Asking

Although in cases of this kind the
bureau finds it more fruitful of results
to deal with single producer instead
of with every unit of the industry, its
policy. DR.. Stratton pointed out, is to
make the information and complete
data available to any other firm or cor
poration which on its own initiative
seeks it.
Moreover, if private enterprise
faces a dilemma and is in need of scien-
tifc help, the bureau is ready to offer
its services and to tackle a special
problem that may be Of interest only to
the inquiring concern.
But the main business Of the bureau,
in this phase of it's activity, is to ex-
pertinent with general problems that
affect particular lines of industry as
a whole Its chief interest is not to
Improve a given product of a single
exact methods of conducting the gem
eral processes of manufacturing 1t
desires to ascertain ways of eliniin-
ating waste, of shortening the steps in
producing an article, in setting new in
dustrial standards and determining the
comparative values of materials and
their capacity for performance.
What things can your bureau do
better than the facilities of private
corporations and wherein is its prov
ince unique" DIR. Stratton was asked.
New-York tribune., 1919-01-26
What Further
Inf alton Would Mean

Assume nOW-under no matter what
determining infuences-a further in.
f1ation Of bank credit and a continue d
extension Of deposit currency There
will result:
!. A further rise in general prices.
:. Further injustices to the earlier credit
class. and newly maturing group of in
justices to all later classes of creditors.
Each issue of new bonds. with its attend
ant price imitation, is in turn a wrong to
each earlier class of subscribers. 1t is
one way. as easy and simple as it is un-
far. OF working IA partial cancellation of
government obligations. Fortunately. the
banks, as the chief malefactors. will he
among the chief sufferers Their net assets
are IN dollars. not in goods Therefore de-
preston hits them hard Against this
harm the temporary gains from an in
crcasing volume OF business are onlv n
minor offset.
Z. prolonRaton of the period Of low
real WAGES and of high profit margins
high dividends for time. even rising
profits and rising dividends and rising
stoc', quotations.
T. trend toward rising rates of In.
tereSt-in part because high gains stimu.
hate the borrowing demand. in part he-
New-York tribune., 1919-01-26
By Merryle Stanley Rukeyser

V n THE TEST tubes of industry
which are sizzling at Washing
ton American business men may
perhaps find the key to the solution
of their most irritating technical
problems. The government, bent on
facilitating commercial progress. has
consciously embarked on the expert
ment of bringing physics and chem
istry to the directors Of production.
The central laboratory of the ma
tons business is to be the Bureau of
Standards of the Department of Com
mercc, which is fast being equipped
with miniature mills of the basic ma
tonal industries. The aim of the new
tendency in this country is to give
men of business a more precise knowl-
edge of and mastery over the imme-
diate facts of their own everyday
activity Behind the physical devices
for research which have been built at
cost of S1,15OO0o, lies a dominant
purpose to smash the barriers between
the laboratory and the factory.
New-York tribune., 1919-01-26
W hat "Intangible
Property" Means

intangible property, as used in CON
nection with invested capital. includes
patents, copyrights, secret processes and
formula, good will, trade marks. trade
brands, franchises and other like
property. Such property, when paid in
for stock or shares of a corporation,
may be included in invested capital
only to the extent specifically provided
The Senate bill provides that intan-
gible property paid in for stock or
shares of a corporation prior to March
s, 1917, may be included in invested
capital at a value not in excess of the
lowest Of the following values:
(a) Actual cash value of property
when paid in;
(b) Par value of stock isued there
for; or
(c) In the aggregate, 80 per centof
the par value of the stock of the cor
poration outstanding on March 3. 1871.
If intangible property was paid in
for stock on or after March 3, 1917,
the value denoted under (a> above
should be 80 per cent in the aggregate
of the par value Of the stock of the cor
poration outstanding at the beginning
Of the taxable year for which return is
made. In the bill as it passed the
House intangible property other than
patents and copyrights. paid III for
stock subsequent 20 March 8, 1917. may
not be included in invested capital
Under the regulations for 1917 cor
poratibns were required to make GER
tain adjustments of their surplus and
undivided profits accounts. Where
through failure to provide for deple-
tion, depreciation, obsolescence or
ether expenses or losses, or where for
any other cause or reason the books
of account Of the taxpayer do not
show the true paid-in or earned
surplus and undivided profits, such
adjustments are required to be
made in the computation of invested
capital as are necessary to arrive ct
statement of the correct amount Of
invested capital. These adjustments
cover additions to surplus due to capi-
tai expenditures which have been
charged to current expenses. as we'll
as deductions for depreciation, obso-
lesccnce or other losses or expenses.
New-York tribune., 1919-01-26
Fall Is More
Likely Than Rise

But still the possibility has to be
faced on the one hand of period OF
still further rising prices; on the other
hand, of newly beginning fall OF
prices. Of the two, both bad, should
incline, | repeat, to prefer the rise
think it, however, in the long run, less
likely than the fall not because of
American situation and policies, but
rather of foreign influences. | expect
indeed, that after the period Of read
lustment is over, there will be fur
ther temporary period of rising prices
in America, due to the special condi-
tions and vagarics of American finance
and that this rise will shortly be fol-
loWed~-and more than offset-by re-
verse, a failing trend in the level of
prices, due to the dominating effect OF
the attempt in Europe to get back to
something like the prc-war level of
redemption in gold.
If such turns out to be the European
policy, the situation might be APP
preciably mitgated by the adoption of
international bi-me talism. But ! do
not expect this. For the first time
however, since bi-metallism has been a
serious practical issue, it will present
tenable case-will promise some lit
tie balance of good rather than much
evil. Heretc fore" it must have worked
merely to acccntuatc the already ris-
ing trend of prices. 1t may now come
to serve in some measure as mitigating
en- equally undesirable fall in general
prices.
New-York tribune., 1919-01-26
By Morris F. Frey

Tar Consultant OF the Guaranty
Trust Company, of NeV York
TIME new revenue bill, with few
4 changes, bases the computation
of invested capital on the same
principles as those laid down in the
act of 1917. The bill expressly places
the computation upon the basis of the
cash or other property put into the
business, plus the earned surplus and
Undivided profits. exclusive of earnings
for the current taxable year, and not
upon that of the present valuation or
appraisal Of its assets. Borrowed
money or property whether repre-
sented by bonds, notes. open accounts
or otherwise, is specifically excluded.
In determining invested capital, a cor
poraton shall add together its paid-in
capital and its paid in or earned sur
plus and undivided profits as shown by
the books of the corporation at the
beginning OF the taxable year. Adj
justments must then be made as pro-
vided in the law. If property has been
paid in for stock at value substan-
TALLY in excess of the par value of the
stock the difference between the par
value of the stock and the actual value
of such property may be included in
the paid-in surplus of the corporation.
The regulations of the Treasury De
partment for 1917 provide that evil
dence tending to support a claim for
paidin surplus. under the above cir
cumstances, must be as of the date
of conveyance, and may consist, among
other things, of (1) appraisal of the
property by disinterested authorities,
CD the assessed value in the case of
real estate. and (3) the market price
in excess of the par value of stock or
shares.
New-York tribune., 1919-01-26
Outlook for
V acant Lots

But this demand is now to be rein
stated The country is four years be-
h'nd IN its normal increase in build
ing Rents are almost certain to 20
up. And they will go up until. side
py s'oe with the larger building costs,
houses come to be an attractive in
Vestment. Houses therefore are goinq
10 sell at very marked advance over
the prices of four years ago. as we'll
as over their present prices. Imnroved
property should be a good purchase.
New houses are going to cost high.
New-York tribune., 1919-01-26

~! N'"'' " LCOUOW3CS IN (OTUGU
Jnircrsity
HE preceding analysis of pro-
spectve interest rates ana Sc
curity prices has assumed no
marked longtime movement as taking
place in prices, either upward Or
downward. Neither trend is to be de-
sired. Good money is stable money
money in which general prices are
practically constant. 1t is doubtless
sible-though not quite probable
that this assumption, of stability will
be justified by the facts, as national
and international monetary policies
shall determine them The situation,
at any rate, is bad enough as it is.
the prospective disturbances sufficient
ly serious. We are in face Of no end
of pcrplexities, as also we have to look
forward to nc end of disturbances and
injustIces az the result of our past
errors Of imitation. Further errors in
the same direction will merely pile
up further the wrongs and the per
pleXites. The wise policy is always to
abide by whatever level Of prices has
been reached
New-York tribune., 1919-01-26
Service Based
On Give and Take

In explaining this service, Dr.. STRAIT
ton, who speaks in the measured terms
of scientist said:
"ln offering this service to industry.
we have no illusions about our ability
1t is a matter Of give and take We
learn as much as we teach. We do not
presume to think that we can send our
scientific men into strange industries
and-presto men who nave been
devoting their lives to them how to
.revolutionize their methods and obtain
far better results. We aim, in visiting
factories. to have an experimental at
titude, and to combine our knowledge
Of the physics and chemistry Of the
industry with the grasp of the pract-
cal men on the established technique.
"Often, we are able. because of our
fresh approach. to point out that the
customary system is wasteful and in
efficient and roundabout and to make
constructive suggestions for changes"
When the bureau gets an S 0 s
call from the whirring realm of in
dustry it classifies the inquiry, ac
cording to the scientific problem in
volved, rather than according to its
conventional trade name. After the
purely scientific side of the conun-
drum of commerce has been considered
the inquiry is often passed on to one
of the mills.
The textile mill. which is just being
installed is understood to be practi-
cally the only thing of its kind in the
world. Though far less than half the
size of a regular factory it's proper
tions are the same. The first problem
which will go through the grist, if sue
cessfully solved, may lead to
changed attitude toward guaranteed
pure standards of goods The workers
IN this part of the bureau feel that the
reason that all the efforts thus far
through many years to get Congress
to enact law which would enable the
government to guarantee the products
of industry is the lack of a rational
basis for determining the standards
OF goods particularly textiles Here
tofore, the perennial question in con-
nection with woollen textiles has been,
DO they contain shoddy? The govern
ment Investigators purpose to grade
fabrics on the basis of their capacity
to wear well. They viii seek to know
not so much what the component
parts of the goods are. but rather what
its performance value is.
stumbling block up to the present
has been the difficulty of identifying
shoddy in cloth. The new idea in the
government laboratory is to be in
different to the question as to whether
there is shoddy in the fabric or not.
New-York tribune., 1919-01-26
When Business
Goes on a Spree

These are the penalties of prices that
fall too sharply and too far. Financial
stress develops easily into industrial
stagnatlon- something more serious
than mere financial stress or even
mere insolvency. If the banks cannot
collect from their debtors as fast as
they are pressed by their demand
creditors. bank suspension and bank
liquidation add to the disaster. And
if the liquidation is complicated by the
fact that it follows a period of inha-
tion-a time of expanded business
margins and of abnormally high Sc
curity prices-the trough of the wave
yawns deeper as the crest has been
high. The evils of inflated prices ex
aggerate the evils Of dehation prices.
1t is dangerous to .tamper with the
nervous system of the industrial Or
ganization.
AS with the human, so with the in
dustrial body, nervous exhaustion is
the worst of diseases Riot and re-
pentance have each its evils; and each
is incitement to the excesses of the
other Stability of prices is business
and industrial temperance; imitation
is spree; defation is the headache
and lassitude of the morning after.
At the extreme there is always delir-
lum tremens waiting.
But, after all. this parallel is not
complete. In delrium the snakes that
one sees are iictions of the imagina-
ton. In crises they are real together
with all manner of other uncleamoss
New-York tribune., 1919-01-26
A Boom Sure
Sooner or Later

Any considerable movement in va
cant lots. and especially any marked
special activity in vacant city prop
erty, is relatively remote. 1t will come.
Prices will some day adjust into har-
mony with one another. People will
have to have houses to live in and land
for the houses to. stand on But this
thing will move slowly. High lots de
press the building demand. High
buildings depress the lot demand
If prices fall sharply and greatly
the stock brokers demand from spec
ulators that they make good their
margins, as also, commonly, that they
put up wider margins. The brokers
ing. This further depresses the mar
ket. Holders release some of their
stocks to protect others. A still fur
ther fall. The banks further press the
brokers; the brokers further press
their clients. More fall still. A great
pressure sets in from needy customers
for bank accommodations in order to
avoid forced sales. Interest rates go
up. Being capitalized under higher
interest rates, the securities and prop
aerties fall still further Falling
prices, cutting into margins, have
now ended in financial panic. Whole
salers find their credit lines cut down;
manufacturers cannot get the funds
to maintain their production, and
could not sell their products if they
could get the funds. The retailer
must reduce his stocks if he cannot
get credit. He must restrict his sales
to such of his patronage as require to
be carried.
New-York tribune., 1919-01-26
Broad Scope
Of Bureaus Work

Our miniature mills, which soon,
we hope, will represent all the basic
industries OF the country" the direc-
tor replied, "are designed exclusively
for experiment. They are approx
matcly one-fourth the size Of regular
commercial mills, and require consider
ably less labor and material in their
operation. All the variables ard non
essentials have been reduced The re-
New-York tribune., 1919-01-26
Article VI-The Prospect for Real Estate

lNote.-This is the sinth of u
series Of articles IN achich Professor
Dorenport outlines his oiems of the
future Of farm lands and uybom
property and of the aftermath of IN
fdtion The seventh article qoiU be
presented nect Sandoy-F'inonciol
Editor.
New-York tribune., 1919-01-26
Checka to
Further Expansion

But this process of imitation must
sto9 somewhere, either
(a) BY the ultimate dscrediting aof the
media of exchange: or,
tb) By crisis preciptated by the fall
ing values of securities as costs are gain
ING on selling prices and margins are
narrowing or
lc) By rising interest rates working
inevitably. together with falling margins,
to compel an overdrastic and overrapid
scaling down in the capitalized values of
securities and properties or,
1d) BY bank reserves becoming over
stretched through expanding deposit Tia
bilties or by the gold expectations conse-
quent on inflated prices a resulting
contraction and liquidation of credit. and
Herewith the high interest rates and the
property revaluationss characteristic of
pancs and crises.
Meanwhile, however, some further
aspects of rising prices must be ex-
amined. What are the prospects of
real estate values?
Even under the ordinary conditions
of rising prices, real estate values are
the last to respond to the forces max
ing for general advance. 1t is for this
reason that real estate booms are
likely to occur as the final phase in
the business cycle. Ushering in the
process of liquidation or collapse, they
are easily interpreted, but commonly
wrongly interpreted, as chief among
the determining Influences. They are
merely the tardy symptoms of general
causes. The explanation for this tar
dincss Of response may not be clear;
but probably it is due to the fact that
the speculative real estate market is
unorganized, haphazard and relatively
unintelligent
New-York tribune., 1919-01-26
Reconstruction and BevOnd

Economist Predicts Great Rise in Price of Farm Lands
and Tremendous Boom in Improved Urban Property
but Believes There Is Little Early Prospect for Bic
Speculation in City Lots-NIorning After of Initiation
New-York tribune., 1919-01-26
Assets Not Included
In Invested Capital

Stocks, bonds or other Obligations
other than obligations Of the United
States), the income from which is not
New-York tribune., 1919-01-26

cause there is an increasing pressure on
bank reserves through expanding deposit
liabilities
New-York tribune., 1919-01-26
By II. ]. Davenport

PROFESSOR of Economics IN cornell
CnircrsitY
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09
Hear Fine Prograrul

The second reception given by the
Home Defense League for returned
so.d.erS and sailors Of this city was
held last evening in the league hal
and was largely attended 4 banquet
was served to sixty people at o'clock
IN the Carpenters Hal, and was fol-
lowed by a'drill by the soldiers and
sailors on Main street Music by the
Home Defense League band On ae
count OF the rain the entertainment
was held in the hall and the program
was as follows
Invocation, Rev. George Bradteld
America" audience
Address Of welcome, p. VI. Me,
Arthur. president of the Home De.
tense League
Solo, Ted LettsOme.
Red Cross Workers al Home 3"
iirs. h. Il. Adams.
Knights of Columbus on the Fir
ing Line. John Vaughey
Song. Richard Lewis and Margaret
GromDerg
salvation Army at Home, Ervey
Henderson OF Ottawa.
Illinois" audience.
Our Soldiers at Home" Capt. =. d.
Mcbride.
A fine address was also given by
Miss Alice Barth, overseas Red Cross
nurse, daughter Of Mr.. and Mrs. Jacob
Barth of this city, telling Of her ex-
periences during the war The recep,
ton was followed by dancing John
sons Orchestra furnished the music.
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09
Local Notes.

Miss Alice Barth Went TO Indiana TO-
day for several days visif with her
sste'.
Trinity Lutheran Church Rev J.
T. Mueller, pastor Sunday school at
!. , O'Clock and English services at ,
O'Clock The Ladies' Aid Society will
hold a business meeting after serv.
ices.
Charles Frdudin, son OF Mrs. Mary
Frandm OF this city. arrived here last
evening He was mustered out Of
service at Camp Grant, Rockford. yes.
/ terday He attended the reception
-aid last evening for the soldiers and
sailors. He spent twelve months over.
seas in the aero squadron.
John MicOna returned last evening
from a week visit with his parents
in Joliet
Mrs Bertha Hines spent today in
Ottawa.
Mrs Edward Murphy spent today
in Ottawa.
Lester Franeomb visited friends in
Ottawa today
Miss Bertha Bjornberg of Chicago
arrives tomorrow for a visit at the
home of Mrs, and Mrs. Truman Beck
with.
An interurban car ran off the track
yesterday at the switch on Broadway,
delaying the others for several hours.
Miss Mildred Lewis OF Ottawa at
tended the dance here last evening.
George Hurd of Moline spent today
in Morris with friends.
Johnsons Orchestra will pay for
dance in Seneca tonight. A number
from here will attend
Mrs. Lee Wescott spent today in o..
tawa.
Miss Mary Barth spent today in OF,
tawa.
Rev. l.. f. Hackett OF Ottawa at
tended he reception for returned sol
diers and sailors held in this city last
evening
Redmond Dwyer and Vera We ,ain
and Catherine jos of Ottawa were in
Marseilles last evening.
Thomas Worrell spent today in OF
tawa
Jack Johnson has resigned his posi-.
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09
Illinois Farmers
Market

Is one of the busy places that have
kept the packing plant working over
time and from the increased business
It looks as though they will have to
put on more help. The Shriners will
be here next week and they are
good meat eaters. But we are more
particularly interested in taking care
OF our regular patrons. And we are
going to make some prices next week
that would open the eyes Of a blind
man. For tomorrow we are going to
make some cuts which will surprise
other dealers. But remember this
market is catering only to those who
want good meats. Here are some to.
morrow prices:
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09
OTTAWA CHESS MEN
TO PLAY LA SALE

!. D. Smith OF the Ottawa Chamber
of Commerce has sent word 10 La
Sale that his team OF chess players
are ready TO meet the chess cham.
pions OF the Manufacturers Club. now
that they are well organized and
while the tricks OF the chess game are
still fresh in their minds.
Secretary Hargrave OF the La Sale
accepts the challenge. and the big
night is billed to take place TUESDAY
evening at the club in the Kaskaskia
h,te.
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09

in their obligation TO humanity.
6. To maintain the sacred doctrine
of undivided and uncompromising 10y
atty to every principle for which the
American nation stands in the belief
that that doctrine should be the guild.
ing principle of the everyday life
Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-05-09

The four-day-old son of Mr.. and Mrs.
Ole Thompson of the north prairie
died last evening at o'clock The
funeral services will be held tomor-
rev afternoon at / o'clock at the
home. Rev Quallem of Elgin will Of
ticiate