davidaulloa/AmericanStories huggingface dataset:
Evening star., 1919-09-05

Federal Trade Commission. who will
have for his subject. The Merry Co
Round" Mrs. Edward p. Costigan.
chairman of the legislative committee
of the league, will preside. The public
is invited.
Evening star., 1919-09-05
Traction Company Experience.

The experience of the Capital Traction
company from 1895 to 1917 is set forth
in Hanna exhibit No. S lin which is in
cluded the operations of the Rock Creek
Railway Company, from 1893 to 1880
and shows that during this period. with
an investment Of $6,s73,445. in 1896, and
gradually increasing to an investment of
s12,604,352. at the beginning of 1917, that
the company failed, after setting aside a
Evening star., 1919-09-05
Small Concerns DISCOURAGED.

Smaller establishments she said
were SO discouraged by the compe-
tition of the central producers with
their enormous advertising" that local
food products were taken off markets
Ward A. Neff, publisher of group
of live stock newspapers. told the
committee the bill might require the
licensing of all newspapers printing
iive stock prices.
The license provisions as they af-
feet newspapers are entirely unneces-
sary," he said. 1t tends to restrict the
freedom of the press"
Live stock producers are not in favor
of the Kenyon and kendrick bills,
Neff said. but added, "a great farmers
feel something is wrong with the in
dustry. and that something should be
done. though this legislation is not the
proper method"
Evening star., 1919-09-05
Quotes Justice Hughes.

The opinion of Mr.. Justice hughes
rendered on July 26. 1918. contains
these statements:
while 1t is important to conslder
the cost of reproduction in determih-
ing the fair value of plant tor rae
making purposes. it cannot ne Saiu
that there is a constitutional rlEht
to have the rates of public service
corporation based upon the eStifnatea
cost of the reproduction OF It's prop
erty at a particular time regardless
of circumstances. To base rates upon
a plant valuation simply represent
ing hypothetical cost of reproduC-
ton at a time OF abnormaliE hlsh
prices due to exceptional conditions
would be manifestly unfair to the
public.
This would result in allowing a
public service corporation to take ad-
vantage of a public caiamitE by in-
crcasing its rates above what would
be a liberal return. not only on ac-
tual investment. but upon a normal
reproduction cost in the view that .un-
less it could make an essentially OK
orbitant demand upon the public il
Evening star., 1919-09-05

ut will be seen that these respective
statutes are dissimilar. The ROCK
Creek Railway Company was given
by the terms of the act the right TO
operate any intersecting line 1t pur-
chased. II did not require any FUR
ther or additional franchise for such
operation. Its purchase of the line
gave the right to operate cars over
it and. while it may be asserted thaI l
it was necessary to pay the value OF
line, it may be said with almost equal
force that the line could have been
acquired and operated exclusive or
the franchise. There is certainly noth-
ing in the act, as there was in the
New York statute, spec1ncally au-
ttorizing the acquisition and Valua-
tion of the franchise and the issue
of capital stock to cover the Cost
of the same.
"The commission is not inclined to
indulge in any hair-spljtting dlstinc-
tions or academic discussion over tnls
point, but in view of the care1ui
words of the Supreme Court IN the
Consolidated Gas case it calls atteh-
tion to this distinction.
The Supreme Court sad IN tha'
case:
"'What has been said herein re-
garding the value of the franchise in
this case has been necessarily found
ed upon it's own peculiar facts. and
the decision thereon can form no prec-
edent in regard to the valuation OF
franchises generally where the 1acts
are not similar to those in the case
before US. We simply accept the sum
named as the value under the circum-
stances stated
TT appears to the commission that
the Supreme Court used this guarded
and restrictive language as warning
that its decision was to form no prec-,
edent where the facts were not simi-
lar to those in the case before 1t, ana
it certainly follows that where the law
the facts is substantially
dissimilar and the facts are substan-
TALLY unlike, the court clearly indi-
Gates that it's decision must not be
used as a precedent.
Evening star., 1919-09-05
Will Speak Tomorrow Night.

Mrs. Kelley is to deliver an address
before the Consumers League of the
District of Columbia tomorrow night
at the new National Museum, as will
Commissioner William B. Colver of the
Evening star., 1919-09-05
Basis for Valuation.

1t was earnestly COHtSHueu ny
company. however, and urged upon the
commission with vigorous insiStence
by its counsel, that a matter of law
the commission must accept without
question or further inquiry, as basis
for the valuation of that part of the
companys property represented by the
old Washington and Georgetown Rail
road Company, the purchase price of
$10,750.0 900 paid for that company by
the Rock Creek Railway Company in
1895.
This contention was founded upon
the decision of the Supreme Court of
the United States in what is known as
the Consolidated Gas case. reported as
Wilcox VS.. Consolidated Gas Company,
2I2 U. s., page 19. Under the au-
thority of this case it was asserted as
fraud could be shown in the transac-
ton the commission must accept this
purchase price as representing abSo-
lutely the value of the Washington
and Georgetown Railroad Company
properties at that time, and find the
present valuation of the Capital Trac-
tion Company. so far as investment
was concerned, by adding thereto the
value of the Rock Creek Railway
Company and all additions to capital
account and all development costs and
other elements of value accruing since
the purchase.
rIt was contended that this purchase
was specifically authorized by Con-
gress: that it had been acquiesced in
by the public for many years; that
the stock issued in pursuance thereof
had been largely traded in. on the
faith of this transaction, and that the
condition created at the time was a
fxed condition not to be changed or
made the subject of any sort of dis
turbing analysis.
Evening star., 1919-09-05
KENYON BILL HELD
AS LIVE STOCK AID
Packers Make Prices Higher,
Consumers Secretary
Tells Senators.

Localized and decentraIized produc-
ton of live stock would be promoted
by the Kenyon bill, Mrs. Florence Kel-
ley, secretary of the National Con-
sumers' League. told the Senate agri-
cultural committee today. attributing
high prices of food in part to the
packers
I'VE believe that it is not a rational
thing that a small group of men
should hold such control over our
meat supply as do the larger pack
ers," said she.
Evening star., 1919-09-05
The Letter "R."

Dick-It takes only one letter to
change Correspondent" into "cor-
respondent"
Mack-Then I wouldn't write the
letter.
Evening star., 1919-09-05
Valuation Of IS, 5,6OO,O 900.

'Tn the case of the Capital Traction
Company the tangible property trans
ferred. according to the company's
figures tHanna Exhibit II amounted
to S., 800. 900, in round figures, at the
time of the transfer land this includ-
ed S750.000. or overhead expenses, not
shown on the books, and the pur-
chase price paid was S10.75 900, leav-
ing for the Intangible property. which
may pr may not be considered as rep
resenting a franchise value. the sum
of s5.15o.00o. 1t will thus be seen
that in the one case the franchises
of six companies were Valued at
slightly over 25 per cent in all of
while in the present case a franchise
value of almost 100 per cent was es-
timated and paid for in stock
Another dissimilarity is that in
the Consolidated Gas case the law
had distinctly provided tha. If such
consolidation was effected the amount
of the capital represented by stock
should not be more than the fair
aggregate value of the property, fran
chise and rights of the several COM
appears that in the contemplation of
this law the existing franchise and
intangible rights were to be given
some specific value.
The difference between this law of
New York authorizing the consolida-
tion OF the gas companies and the
valuation of their franchises from
the law authorizing the acquisition
of the Washington and Georgetown
Railroad Company is very marked.
BY the act of Congress, approved
March I. 1895. the Rock Creek Rail-
way Company was authorized, by the
vote of majority of its capital
stock to contract with any street
railway owning or operating a con-
Meeting or intersecting line for the
joint management. lease or purchase
OF such connecting or intersecting
line or lines and to operate the same
in connection with its original line
and to- issue stock not to exceed the
actual consideration paid or thc
Evening star., 1919-09-05
Admonished to Carefulness.

"Admonished to carefulness by the
cautioning words OF the Supreme
Court, and mindful of the dissimilar-
ity in aspect of the law under which
the gas companies in New York were
consolidated and the act of Congress
under which the Washington and
Georgetown Railroad Company was
purchased. and the marked difference
between the proportion of the value
given to the franchises in the one case
and in the other. in comparison with the
value of the tangible assets of the re-
spective companies-a difference OF
about 400 per cent-the commission
feel that it is justified in the perform
ance of the duty imposed upon it by
Congress and it's responsibility to the
public. carefully to consider the finan-
cial history of the Washington and
Georgetown Railroad Company, the
relation of it's earnings to its orig
inally and subsequently invested cap
ital and the other circumstances sur
rounding it's purchase. in arriving at
it's own conclusion as to the weight to
be given to the purchase price paid
for this property in 1896.
Evening star., 1919-09-05
Was Compelled to Buy.

THE contention is made before the
commission that the Rock Creek Rail-
way Company was compelled to buy
this debt of the Capital Traction Com
pany at double its face value in oder
to secure the stock of the company at
it's then market value and that. there
fore, 1t had the right to capitalize the
bonded Indebtedness of the Washing
ton and Georgetown Railroad Com
pany at double the amount of the ex =
listing debt. In other words, that it
had to repay not the original loan
but double that amount to extinguish
ii, when by waiting three years it
could have been extinguished at par
as to three -fourths of 1t, at least.
$50 far as the purchase Of the
Washington and Georgetown Rail-
road Company by the Rock Creek
Railway Company is concerned. the
Evening star., 1919-09-05

months later date was fixed for the
ascertainment of reproduction cost, to
with July /, 1914.
Evening star., 1919-09-05
Value Fair and Reasonab BILE.

"The commission has no hesitation
in saying that it is it's duty. regardless
of what the parties to the transaction
may have thought. to ascertain
whether or not the value attributed to
an intangible asset of this character
was fair and reasonable in the light
OF the facts surrounding the tranSac-
ton at the time and of the subsequent
experience of the company. The COM
missions duty is public one, and the
public is not to be charged with the
capitalization of the enthusiastic eX-
pectations of the holders of public
utility securities, no matter how hon
estly entertained, if the facts do not
justify the same. 1t would certainly
not be said that the commission is
bound hand and foot by any conclu-
sion interested parties may have
reached in public matter of this sort
where the public was not represented.
If this were so. and the parties to this
transaction had capitalized these in
tangible assets at 100000 900 or $50
100000 instead of $5,000.000, no relief
could be afforded the present or fu-
ture generations as to a burden to be
carried by them and as to which it is
apparent they had neither the legal
standing nor the opportunity to OBJ
ject It the time it was imposed.
Allowance of Claim.
"1t, therefore, remains for the COM
mission to discover in the evidence be-
fore it and from the records of the
company, whether a basis exists for
the allowance o. this claim for in
tangible values in whole or in part,
and the experience of the company
prior to it's purchase by the Rock
Creek Railway Company in 1895 must
be examined to see the potential earn
ing capacity of the company up to
this time in order to ascertain the
basis upon which the purchase price
of S10.750.00 was made.
while the total capital stock re-
manned unchanged during the entire
period from 1863 to 1895 the capital in
vestment increased from the sale Of
bonds and the accumulation of surplus
and the earnings likewise increased to
a considerable extent. In order to deter
mine the exchange or market value of
the company on the basis of it's net
earnings these earnings are shown during
such periods as most clearly indicate it's
earning capacity. Therefore. the aver
age net earnings are taken for the fol-
lowing periods, which, according to the
testimony of the commissions account
ant. Mr.. Sangster, may be taken as a
reasonably accurate statement Of those
earnings of the company during the
periods indicated:
Evening star., 1919-09-05
Continued from First Page.)
Agreed to Accept Figures.

AS to the reproduction cost of the
physical property of the company, the
report refers to the fact that the
company agreed to accept the figure
of s1O,966,214 as representing the to-
tai reproduction cost of that part OF
it's physical property which is in
cluded in the report of Charles l..
Pillsbury, engineer for the commits
sion.
An allowance of S1,375, 900 is made
for development costs, the commission
holding that the company cannot con-
slider to have had sufficient earnings
in the past to have been able to amor
tize the development costs Claimed
by it.
The company claimed $275,000 as
workins capital. The commission
concludes that it will be equitable 10
allow but S1OS. 900 for cash working
capital as of July l, 1914.
With reference to value as an es-
tablished business, the company pre-
scented a claim of S5,loo.ooo, tne
amount standing for franchise, sooo,
will, organization, etc. 1t is explained
that this claim is based upon the pur-
chase in 1895 by the Rock Creek Rail-
way Company, predecessor OF the
Capital Traction Company, of the
Washington and Georgetown Railroad
Company, paying therefor in stock OF
the Rock Creek Company at par the
sum of S10,75O,00O. AS evidenced by
ANALYSIS made by Andrew Sangster.
expert accountant for the commission,
the commission claims that the sum
of S5,15O,00o represented elements
other than the actual cost to the
Washington and Georgetown Railroad
Company of the physical property
sold On this item of s5.150,0O0 the
commission experienced its principal
disagreement.
The majority members of the COM
mission, Messrs. Kutz and Brown
low, devote a considerable part of Dhe
report to a defense of their position
in not allowing the full amount
claimed by the company. In this con-
nection the report says:
Evening star., 1919-09-05
Not Passing of Money.

THE contract of purchase of the
Washington and Georgetown Rail-
road Company by the Rock Creek
Railway Company and the testimony
in the case clearly indicates that the
so-called purchase was not, in fact,
an actual passing of money. but was
the issue to the stock and bond hold
ers of the Washington and George
town Railroad Company of the stock
of the Rock Creek Railway Company
at its par value in an amount equal
to the then market value of the
stocks and bonds of the Washington
and Georgetown Railroad Company.
The stock of this company at that
time consisted of 10000 shares at the
par value of $50 each and of the mar
'ket value of S275 each. The outstand
ing bonds amounted to 100000 and
their market value was $8,000,000, and
it is asserted, and is doubtless the fact.
that this large, not to say excessive.
value given to the bonds was because
they were Interchangeable for the
stock of the company at par when
ever authority to increase the capital
stock should be obtained from Con-
gress. This right of interchange was
part of the contract evidenced by
the bonds. and was in these words.
six per cent registered coupon
bonds. secured by deed of trust and
interchangeable for stock at par
whenever the right to increase the
capital stock in an amount equal to
the amount of bonds issued shall be
obtained
Evening star., 1919-09-05
Statutes Are Dissimi1ar.

actual cost of the necessary equip
ment.
Evening star., 1919-09-05
The Young Men
Suits
New Colors
New Models

They possess the snappy,
youthful lines that only
good tailoring can produce.
In the assortment are
plenty of tans, browns,
erays and blues in the
most fashionable novelty
fabrics. The models are
absolutely new and correct.
Evening star., 1919-09-05
Carried Valuable Privilege.

"It will thus be seen that these
bonds carried with them a very VAL
liable privilege provided Congress
vitaliZed it by giving the bondholder
the right to exchange his bond for
stock at par. This provision gave
the bonds a speculative value, and 1t
was a purely speculative value. be-
cause their ultimate value over and
above that of any other 6 per cent
gilt-edge security was contingent
upon an event which might never
happen and which, as a matter of
fact never did happen.
Another provision of these bonds
was that they were redeemab1e at
the expiration of ten years at the
pleasure of the company. and at the
time of the sale three million of the
four million had only four years to
run when this option of redemption
would become operative, and the re-
manning million had a little less than
eight years to run for one-half there
of and little less than ten years
for the balance. These bonds were
secured upon the corpus of the prop
erty of the company and constituted
lien thereon which could not have
been disturbed by any transfer OF
the property. They were not and
could not be muniment Of title.
The holders thereof did not have to
be consulted il the stockholders de-
sired to part with the property under
legislative sanction, and at the end of
forty years at all events. and within
ten years from the date Of their issue.
at the option of the company, this
bonded Indebtedness could have been
retired by mere satisfaction of the
face value of the bonds
Evening star., 1919-09-05
The Conservative
Suits

TIeSC Suits dIc cIcSd1tIy
tailored by one of Ameri-
cas- foremost manufac-
turers. This insures per-
feet fit and that the gar
ment will retain its shape
illness after being worn.
Plenty of neat mixtures
and solid colors, includ =
ing blues and blacks. All
sizes.
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16

Broiled live lobster at the Metropo-
Titan Cafe.
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16

Oysters on the half shell at the
Metropolitan Cafe.
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16
First National Elects Officers


The annual meeting of the share
holders of the First National Bank
occurred Tuesday forenoon. The di-
rectors were elected as follows: Bin
W. Page, f. H., Colby, C. R. Cook,
l.. A. Dascombe, NJ. D., C. Z. Young,
]. W. Fogler, w P. Ordway and r. L..
Marston, the list being made up in
the order of priority of service Fol-
lowing the shareholders meeting the
directors thus chosen, organized and
elected the bank officers as follows:
C. r. Cook, president; Bin w. Page
cashier and l.. H. Goldsmith. assist
ant cashier. These officers as well
as the directors above mentioned, are
all reelected. -
1t is of interest at this time TO note
the growth of this institution. On
January /, 1909, it's loans were $685.
126. Five years later, 1914. this
amount had more than doubled being
s735,366. On January l Of the pres
ent year, the loans had reached to-
tai of $S9O729.
The capital and surplus shows a
similar growth from $267,722, in 1909,
to S365,744 at the present time. Ten
years ago. the number of people de-
posting in the First National Bank
was TAO. At the present time there
are 2,493 people who are depositors at
this bank. On January |, 1909, the
individual deposits aggregated $279,-
791. At the beginning OF 1914, this
amount had increased to $608355.
January |, of the present year, the
total of the individual deposits had
passed the million mark by more than
$4,000.
The total assets which at the pres
ent time are almost $1,770,000. we're
slightly over $777,000, ten years ago,
an increase in this period of about
one million dollars.
This growth is remarkable having
taken place in a community which
has remained almost stationary in
population in the period named.
During the past year the bank has
been identified with various war work
campaigns and has taken 3,416 sub
scriptions to Liberty Loan Bonds
amounting to s694,000. 1t has also
sold War Savings Stamps amounting
to approximately $4,000.
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16
MEMORIALS TO ARMY AND NAVY
Rep. Smith Introduces Measures TO
Provide for Erection of Memorial
Buildings In the Towns and Cities
of Maine

Rep. Brann of Lewiston. wrly in
the session introduced " to pro-
vide for the erection of to memoir
ial buildings In Lewiston. Bangor,
Portland and Augusta, at cost of
100000. Believing that the people
of Maine would not be Ned that
memorials at the expert y the en-
tire state should be locatM in these
cities alone, Rep. Smith of Skowhe-
gan yesterday introduced a measure
retaining the memorial building idea,
but providing that these buildings
should be made possible in any town
or city that felt disposed to share in
the expense The bill as planned
would provide that any town which
will raise SO per capita, not in any
event to be less than $4,000 for mem
orial building, shall receive assistance
from the state not to exceed 81 per
capita and not to exceed in any in
stance $4,000. These buildings must
be built upon plans approved by the
governor and council, and If as now
proposed a Federal act is passed re-
quiring that such buildings shall be
suitable for military purposes, these
memorial structures must be such as
will meet the Federal requirements.
This plan, worked out for the town
of Athens, would be somewhat as fol-
lows: Athens, having about 500 pop
ulation, would raise about $500
Having done so, she would receive
from the state $1,000 and would there
fore have at her disposal $500 to
build memorial building. For the
town of Skowhegan, the minimum
amount raised, based on the popula-
ton of 5000 would be $4,000 To
this the state would add $4,000, MAX
ing fund of $4,000 for the propos
ed memorial. Any town could raise
more than the So per capita, but no
town could participate in the state
aid unless at least $4,000 was raised
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16
Butter Fat Seventy Cents for De-
eember

The Skowhegan Jersey Creamery
announces that the December price
for butter fat Is TO be seventy cents.
This is an increase OF six cents over
last November, which was sixty-four
cents. The October price was sixty
two cents per pound These three
months have seen the highest figures
in the history OF the dairy business
1t Is not probable that seventy cents
will ever be passed.
The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1919-01-16
Gard Of Thanks

We wish to express our thanks to
the neighbors and friends who SO
kindly assisted during the illness and
death OF our loved mother and step
father; and especially to Miss Lucy
Dinsmore who SO kindly cared for
them; also for the beautiful flowers
Mr. and Mrs. John Crommett
Mr.. and Mrs. l.. A. Weber
Mr.. and Mrs. Walter Crommett
Mr. and Mrs Fred Loubier
Charles Crommett
Frank Crommett
Grace Crommett
Clinton. Maine. Jan. IA, 1872