davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1919-01-12

charge s cents carfare and cents for
transfer.
The city has expended for the construc-
tion Of the subways $3.50 900, and to
date has not received a cent Of the profit
above the interest on it's bonds, while its
sef-styled partner in the enterprise has
been receiving 20 per cent profits every
year up to the present year, when their net
profits are only Is per cent.
These fat dividends were paid to them
selves every quarter for several years last
past, the last dividend having been paid
only a week ago, and now they predict
bankruptcy unless they are permitted to
charge an Scent fare.
dividends can only be paid out of net
earnings II these dividends which thew
have been paying so regularly have not
been paid out of net earnings but out Of
capital, such acts would be offences under
Section 664 of the Penal Law. and am
sure that their plea for permission to
charge an scent fare will not go so far
as to suggest that their regular fat divi
dends were not earned but taken from
capital.
Llther this operation of the subways is
highly profitable or the dividends paid
every three months by the company oper
atlng the subway have not been paid out of
earnngs'
But it was not only the traction in
terests who wanted an eight-cent fare.
The revelations before the Public Ser
vice Commission show that Mayor Hylan
was planning to bring about municipal
operation Of the transit lines and that he
proposed at least seven-cent fare. The
Mayors aid was Granville S. Macfar-
land, described by Mayor Hylan as Mr..
Hearst's lawyer in New England.
New-York tribune., 1919-01-12
Private Ownership,
Federal Control

Meanwhile editorial opinion through
out the country is epitomized by "The
New York Herald" when it says:
Private ownership and operation under
government supervision seem to offer the
solution of the railway problem"
"The Buffalo Express" develops this
view with considerable particularly:
"The ,trend of opinion is favorable to
government supervision under private oper-
ation with the formation of a tribunal for
the issuance Of securities and Obligations
control of rates and wages and to restrict
railroa building and the extension of lines
into competitive territory. Private owner
ship, it is held, alone gives stimulus to
initiative and enterprise and government
supervision would eliminate the evils of
former cutthroat competition. But the law
ought to permit pooling ard freight agree
ments in certain cases.
1.-THE physical conditions of the roads,
while not so good as they would be had
labor and materials been available, are bet
New-York tribune., 1919-01-12
Sure TO Swell
Building Scandal

Developing the same point, "The New
York Times" says:
Under Federal ownership OF the railroad
systems of the country the public buildings
scandal would become vastly more fragrant.
Just as Congressman purchase the favor of
their constituents at public cost by secur-
ing eXtravagant appropriations for post
Offices and custom houses, 80 wideawake
communities with eye to their own In
terest would demand, and secure, fine new
railroad stations and increased facilities
which would not pay their cost. These are
matters to be considered when Mr.. McAdoo
holds UP to our view his picture OF the
benefits of Federal control For one thing,
first class ability would disappear from
railroad management; the compensation OF
fered by the government would not attract
the kind OF men that have built up and
operated QUIZ great railroad systems; there
New-York tribune., 1919-01-12
Government Would
Claim Reform, Credit

After pointing out that what Mr.. Ma.
Adoo had asked for is in effect simply
further chance to ascertain if the re.
forms he has instituted will work ON.
this paper continues:
"The difficulty is that many might AZ
tribute whatever success was achieved not
to the reforms but TO government MANAGE.
ment-and that would be n calamity. Mr.
McAdoo himself squints in this direction.
tor he said that competition and self-inter.
est OF individual roads would prevent tho
carrying out Of many Of the reforms under
the old system of private management. But
the government could do much to force
them without itself operating the roads.
If Congress will legislate wisely it can pro.
vide conditions under which it will be
practically impossible for the old abuses
TO exist. We do not think that Mr.. Nc
Adoo's argument in favor of All extension
of time is impressive"
1.-The Philadelphia Evening Public
Ledger found it even less impressive
Homeopathy said this journal. "ss
medical theory has its friends, but the
theory that like cures like he's never been
accepted in the realm of government unless
IN the belief that the best way to catch =
thief Is to put another thief on his track
But there has always been grave suspicion
in such case that the two thieves wopld
form a partnership"
New-York tribune., 1919-01-12
Increased Fares
And Loss of Money

The New York Times" said of the
Boston and Chicago plans:
The testimony that the city admins.
'ratlon considered. and seems still to be
considering, the displacement of the dual
SUBWAY plan by the plans adopted by Bos-
ton and Chicago challenges attention for
us ooidness and lack of candor. Nothing
mas yet been said about the fact that the
increase of tho Chicago fare did not pre-
Vent the halving few months aoo % this
oiVloend which had been paid for sixty
years. ana Its suspension within the last
Two weeks. This was due partly to dc.
crease OF gross in the first ten months OF
last year by s800,0oo, and an increase of ex-
penses of over four millions.
experience under the Boston plan is still
more dlslilusoning. The plan so little
pieases there that the local feeling is that
IL must be mended or ended. Continuance
unaer IL as 1t stands is impracticable, as
ehe dehcit despite the increased fares is
alarming, running at the rate of over eight
million dollars year. with q Z cent farr.
for that reason another cent has been
added, and 1t is thought that an increaas
per cent increase of revenue. As the Bos.
ton plan guarantees dividends. and there. are
olher expenses to be met on rising scale.
shere Is an increase of costs since public
operation OF more than nine million dollars.
mere are two reasons why the Boston
plan will not be adopted in this state. Under
the Boston plan the State is the euarantor,
nos The city, and the loss of Massachusetts
as guarnntor Is now equal to aIl the other
costs OF the state. The state is TO collect
from the cities, and Boston's share is equal
70 ~ per cent of the deficit, or an equivs-
lent OF over 81 in the tax rate. The notion
shat this city is willing to increase its tax
rate for the sake of defraying traction
deficit after an increase of fares IL absurd.
ihat the state should shoulder such q bur
den Tor such purpose is absurd. UP
state won't stand it.e M
New-York tribune., 1919-01-12
Mr.. SWAIN Listens
To Mr. ShOnfs

District Attorney Swami was inter-
jected between Mayor Hylan and Mr.
Shonts. "Mr. Swami would not even in
innate that he contemplates taking ac-
ton officially" said "The World" "Iis
observations are advanced as those Of
commentator particularly Interested in
the outpourings Of Mr.. Shonts."
The District Attorney was quoted as
sayjng:
"The traction interest9 ask public ap-
Droyal of their appeal 2or permission 70
New-York tribune., 1919-01-12

could not say more than that would be in
a receptive mental attitude"
Then Mr.. Shonts was reassured as TO
his own fortunes, if the deal went
through. Once more from Mr.. Shontss
testimony:
The Mayor then made some compliment
ary remarks about myself-that if this
change was made, why it did not neces
sarl!y mean my elimination from the sit
uation'
by Commissioner Whitney-'What Go
you mean, MIR. Shonts. by your elimination
from the situation"
one of them said, i think the Mayor.
that this change of operation in Boston had
not caused any change n the officers of the
company; that it did not necessarily mean
that If the trustees took over the control
OF the property, practically taking the or
fee. as l understood them, of the board Of
directors, it would not mean that tbev
wouio eliminate me from the trustees or
exclude me from the operation of the prop
crty That is what I understood him to
mean by that suggestion
by Mr. Goidmark-'That is, you felt.
Mr.. Shonts, that if the Mayor took the
trouble to introduce Mr.. Macfarland and
make the statements he did and to ind-
cate the professional relationship that Mr.
Macfarland had, that that was a possible
hopeful prospect, from your point of view %
For an increased fare, yes, SIR"
Mr. Quackenbush, testifying before
the commission, told at length of his
conferences with the Boston man; how
ne explained the difficulty of applying
the Boston plan here because of consti-
tutional prohibition, and asserted that he
opposed the Boston plan. anyway, as it
could bring about the ruin of the prop
erty which the public trustees only un-
dertook to operate for ten years. The
Two met occasionally and talked over the
telephone at times.
New-York tribune., 1919-01-12

W NHOSE in favor of the Demon Rum
were chagrined last week by the
news of the ratification of the
proposed prohibition amendment
by six more states, Ohio, Colorado,
Oklahoma, Maine, Tennessee and Idaho
making a total Of twenty-five states that
have given their official sanction to the
proposal of Congress. The act has vet
to be passed by fourteen more states.
The states which have ratified the
prohibition amendment are Kentucky,
Virginia, Mississippi, South Carolina,
North Dakota, Maryland, Montana, Ari-
zona, Delaware, Texas, South Dakota.
Massachusetts,, Georgia, Louisiana, Flor
ida, Michigan, Ohio, Colorado, Oklahoma,
Maine, Tennessee and Idaho.
Meanwhile the liquor interests in the
country are drawing up their forces in
battle array. The nations distillers held
two days indignation meeting last
Tuesday and Wednesday in Chicago, dur
ing which they considered plans for de-
fence and attack.
According TO special dispatch to
"rhe New York World" billion dol
lars was pledged for the defence, and
three hundred angry distillcrs announced
their intention of fighting Uncle Sam to
the last ditch before submitting TO the
annihilation Of their business.
The Supreme Court will be the scene
Of the battle, where Levy Mayer, Chi
cago attorney, will raise questions never
New-York tribune., 1919-01-12
.%HERE is concrete evidence il
Washington that the govern
~ fnant intnrd. Il, ..,,A -. % G..L.


Washington that the govern
ment intends to put up a fight
for the McAdoo plan for five
years control of the railroads. Chair
man Sims, of the House Interstate
Commerce Committee, Introduced two
amendments to the railway control act,
one providing for extension OF the gov
ernent operation of the railroads until
January /. 1924, and the other providing
an additional revolving fund of $780,
100000 for the railway administration
"The New York Sum in a special dis
patch from Washington says:
"The request for another half billion
dollars to cover the losses suffered through
government operation of the railroads was
not altogether unexpected. Less than one
tenth OF the half billion revolving fund
with which the government started its op-
eratons of the railroad systems is still
available. In fact the Railroad Admins
tration, as shown by its financial state
inent, is close to the rocks, and if it is
TO continue for any length of time must
have more huge appropriations.
New-York tribune., 1919-01-12

force and precision. He has characterized
government ownership as incompatible with
the genius OF American institutions, dcclar-
ing that it would bring lessencd efficiency
and that it would lead to stasnator and
retrogresson.'
From which contrast the Inference OF
this paper is not ilattering. 1t says:
almost tho implication is that the case
OF the Direcaor General is one of obstinacy
OF pride of opinion. He has exploited a
choce between two evils in favor of which
there is nothing to be said. Moreover, he
is espousing cause destined to go down
in defeat" {"
New-York tribune., 1919-01-12

the Board of Estimate ten days
~ ago, 81 have here two communi-
cations from a man by the name
of (peering at the letter) Shonts
(Laughter.) He wants to increase street
car fares to eight cents"
At the hearing before the Public
Service Commission on Tuesday Mr.
Shonts told of four meetings with
Mayor Hylan, the first at the opening
of the "H" system, when the matter of
fare increase was broached, a second
at City Hail. when the Mayor introduced
Granville Macfarland as "the gentleman
who wants to help you get seven-cent
wants to help you get a seven-cent
fare" and others at which quicker ac-
tion had been urged on the Mayor in
consummating the plan.
Furthermore, Mr.. Shonts testified as
to the Mayor:
81 found his way pleasant and genial, and
/ have testified as to his language"
"The New York Evening World" COM
ments
ut was high time light rays of publicity
began to penetrate the darkened chamber
where the InterborouCh and Mayor Hylan
have been secretly discussing deals affect
ing the future transit situation in this city
Under examination before the Public
Service Commission President Shonts of
the Interboroush admitted:
a. That unbeknown to the public he had
talked about the 7-cent fare proposition
with the Mayor and that the Mayor had re-
ferred him to Mr.. Hearst's counsel and
New England representative, an expert who
helped to place the Boston transit system
under the control of trustees and who is
at work on similar job in Chicago.
"2. That he (Mr. Shonts) had personally
transmitted the substance of all his dis
cussions with the Mayor to J. P. Morgan,
while during the same period, with the aid
Of certain bankers. the Interborough foated
$40o00,000 bond issue.
Here is a highly interesting play of
powers and forces far above the heads of
the public-powers and forces wrapped in
Olympian clouds that conceal them from
the prying eyes of the multitude
THE zeal of Mr.. Hearst for public own
ership is well known. The zeal of Mayor
Hylan for Mr.. Hearst is equally well
known
Between Mr.. Shonts, Mr.. Morgan, Mayor
Hyian and Mr.. Hearst are the TRACTION com
ranies Of this city to be pushed, pulled and
prodded into some sort of public trustee
ship presided over by Mr. Hearst, .or is the
good old strategy OF Wall Street still
capable Of tying together these corpora
tons, including some OF their overcaptal-
ICED and water-logged subsidiaries, with
yet more complicated knots of traction
finance?
The city has got to do something about
its transit troubles. The day Of action
cannot be long postponed.
But are New Workers satisfied to leave
the solution of the problem to inner cir
eles that meet in mysterious majesty where
no man seetil--to masters of high finance
on the one hand and on the other 10 trusted
representatives. greater and lesser, Of Mr.
William Randolph Hcarstf
I'm these councils Of the OIynpians who
-.
New-York tribune., 1919-01-12
After q Modified
Boston Plan

Also concerned in these negotiations
were James L. Quackenbush, counsel for
the 1nterborough and allied companies,
and Corporation Counsel Burr. The fur
ther amazing revelations brought out in
the hearings before the Public Service
Commission were summed up in "The
World" as follows:
"That Mr.. Shonts took Mr.. Macfarland
to Mr.. Quackenbush, and these two, in a
series of quiet conferences, talked over the
possibility of applying modified form of
New-York tribune., 1919-01-12

guarding the small roads, Mr.. Cuyler re-
piled: "We have no particular plan. The
power cf merger is given to the secre-
tary Of transportation.
The Interstate Commerce Commits
sion in report to Congress advocated a
return of the railroads to private man
agement within "reasonable period" to
allow for preparations and readjust-
ments and under "broadened, extended
and amplifed governmental regulation"
New-York tribune., 1919-01-12
A Three Billion
Dollar HandOHt

But "The Sun" believes that even this
great sum would only be stopgap:
mo official estimate has been made of
the entire amount which would be needed
under the full period of the McAdoo plan
should it be adopted, but unofficial esti-
mates have placed it at between $1,000
100000 and S3,O00,o00OOO."
Bitter opposition to the Sims amend
ments is assured in Congress. Quoting
again from "The Sum:
Opponents of the fve-year extension
plan reiterated tonight that they would
fight to a finish any effort to rush the Nc
New-York tribune., 1919-01-12

sales of Interborough bonds while these
negotiations were going on. He was
asked
What was the amount of the securities
of the Interborough Company that the bank
ers sold during that period of time?''
"Round numbers, $4,000, ,o00-s33, 900 900
and afterward ss,0o0,00o."
The Mayors friend, Mr.. Macfarland,
was working in the interests Of munich
pal ownership, or, at least, municipal
operation of the transit lines. Mr.
Shonts testified before the Public Ser
vice Commission:
"The Mayor then said to me that Mr. Mac
farland was probably more responsible than
any one else for the adoption Of the Boston
solution of the rapid transit lines of that
city. He asked melt l was familiar with
the nature Of that arrangement. told him
that was, but only in general way. The
Mayor then said that Mr.. Macfarand was
then working on similar solution of the
transit situation in Chicago, and wanted to
know II I knew what was going on out
there, and l said that did not.
1.-The Mayor said he would like then if
would listen to Mr.. Macfarand's views.
said would be very glad to, and think
| listened for the better part of an hour to
Mr.. Macfarland's elaboration of the things
that they had done in Boston and what they
were trying to do in Chicago"
New-York tribune., 1919-01-12
C . u
Dir!

extended consideration. On this head
"The indianapolis News" said:
'It is, of course, a fact that when A.,
McAdco took hold of the roads they were
in broken, down condition, owing in part
to the strain imposed on them by the Wa,
and even more largely to the foolish pol;cy
Of starving them. If the owners had been
allowed to make such advances in fre;sb,s
and fares as Mr.. McAdoo very promptl,
and properly made there perhaps woula
have been no need for government o,e,
atinnv
New-York tribune., 1919-01-12

Stress was also laid on the provision
of the pending dry amendment that fixes
time limit of seven years in which the
ratification by two-thirds of the states
shall take place. This time element, the
distillers maintained they were advised,
constitutes an unconstitutional limitation
not contemplated by the amending arti-
cles Of the Federal Constitution This
New-York tribune., 1919-01-12

States by the Constitution or prohibited
by it to the states shall be reserved to
the states respectively.
Another point to be raised is whether
the Federal government can force a
state to surrender it's Inherent right to
handle exclusively matters that pertain
to the personal liberty of the individual
citizen IF a state.
New-York tribune., 1919-01-12
ne States Close In on Demon Rum

before considered in the history of Amer
ica by the distinguished judicial body. 1t
is planned to let the government take the
offensive by charging violation after
July 1. Then the constitutionality Of
the amendment article itself will be at
tackled. This will be based on Article
x of the Constitution, which provides
that powers not delegated to the United
New-York tribune., 1919-01-12
What if the Company
Sold Out &?

MIR. Shonts, however, thought that if
they turned over the transit lines to the
city they should be paid for it. His tes-
timony continued:
when he finished I said that, as near as
New-York tribune., 1919-01-12
an by the Name of Shonts Meets FIizonner the Mav0

~ AID Mayor Hylan at a meeting of
"a the Board of Estimate ten days
~ ago, 81 have here two communi-
The Newark journal., 1919-06-26
LITTLE ROCK MEN
 BUY NEWPORT BANK
B. C. POWELL AND s. R. MORGAN PURCHASE CONTROL OF THE
 FARMERS NATIONAL

Newport June 24.-An important business transaction in Newport bank ing circles took place Monday when B. C. Powell, vice President of the Southern Trust Company of Little Rock, and s. R. Morgan of Little Rock purchased the controlling inter- est of the Farmers National Bank of Newport to succeed N. II. Landis, who leaves for Kansas City to enter one of that city's banks.
 Captain J. D. Knight, late of the United States army, has been made active vice president, and has assum- ed his work. Captain Knight is from Fordyce. Wm. N. Dunaway continues as president of the banking institu- tion and F. J. Harmon of Newport has been made cashier.
 It Is one of the strongest banking concerns in Newport.
The Newark journal., 1919-06-26
THE COUNTRY SUNDAY SCHOOL

If the Sunday School has been all lowed to die down there should be no further delay in recognizing it.
 In our concern for the mental de- velopment of our children, We should not forget the need for moral training also. In the writer's neighborhood boy who was to have graduated at the high school last month-a bright boy in his books-spent the commen- cement period in jail, having entered a store at night and killed it's owner only few weeks before Proper moral training had not accompanied his mental training.
 Every father or mother should ask himself or herself if the Sunday school is not needed to supplement the training given in home and pub. lie school. And even if a boy learn ed nothing useful in Sunday school, 1t might still be worth while for him to go simply because the Sunday school offers an opportunity for him to meet other boys and girls in the right environemnt and under whole some influences. The average boy who has nothing to do from sunup t. sundown every Sunday is pretty like ly to get into mischief.
 The moral and spiritual benefits of the country Sunday School, therefore should alone insure efforts to utilize and strengthen it, while the social and intellectual advantages which it offers may also be not improperly consider, ed. The Bible is one of the worlds supreme pieces of literature, and to study it Sunday after Sunday will contribute to anybody's mental grow tn and equipment.-The Progressive Farmer.
The Newark journal., 1919-06-26
LICENSE REQUIRED
 TO DEAL IN WHEAT
PRESIDENT ISSUES PROCLAIM TION THAT BECOMES EFF
 FECTIYE ON JULY E

Julius Barnes, United States wheat director has annuonced that President Wilson has issued a proclamation put ting under license of the wheat di- rector, persons, firms, corporations and associations dealing in wheat, wheat flour or baking products, man. ufactured either wholly or partially from wheat flour. The only excep- tions are farmers and small bakers.
 The proclamation which goes into effect July 15 applies to the business of Storing or distributing wheat, CT manufacturing, storing or distributing wheat flour as well as to the manu- fracture of bread or other bakers pro- ducts either wohlly or partially from wheat flour.
 Blank forms to be used in applying for such licenses may be obtained from the zone agents of the Grain Corporation in Baltimore, Chicago, Galveston, Minneapolis, Kansas City, Mo, New Orleans and other cities. After the applications have been fill ed out they must be sent to the wheat director, division of licenses, Wash ington.
 The proclamation states that "any 1 nprSon firn, cornara tio,, o,. asg0cia tion, other than those hereinbefore excepted, who shall engage in or car " on any business above specified after July 15, without first securing such licenses, or shall carry on ary such business while such license is suspended or after such license ia revoked, will be liable to the penalties subscribed by law