davidaulloa/AmericanStories huggingface dataset:
The Washington herald., 1921-05-28
ECONOMIC EXPERT
: SCORES SALES TAX
Seligman Declares Principle
Has Met Failure in All
Experiments.

Hearing on tax legislation before
the Senate finance committee ended
yesterday with the testimony of
Prof. Z. r. Seligman, head of the
department of economics at Colum-
bia University, and a leading au-
thority on matters relating to taxa
ton, who strongly opposed the sales
tax.
Mr.. Seligman declared that no
civilized nation had maintained a
general sales tax prior to the war,
although many attempts had been
made to impose such a tax, and that
nations that have adopted the sys-
tenn since that time have done so as
a last resort and without regard to
sound principles of taxation. He
said that the Canada tax is not a
general turnover tax because of its
numerous exemptions, and that 1T
cannot properly be compared to the
tax which Is advocated in this
country.
The hearings have failedS to dis
close as much sentiment for a sales
tax among members of the COM
mittee as expected. Senator Smoot
of Utah continues to be its most
active advocate. Senator Calder of
New York and Senator Watson of
Indiana are the only other members
Of the committee who are known to
favor 1t. Senator Watson, while IA
voring 1t in principle, has indicated
that he has become convinced IL is
not feasible at this time. and prob
ably will not be with q majority of
the members of the committee in a
program Of revenue revision which
does not include the sales tax. The
Senate finance committee intends to
give further consideration to rev.
enue revision in executive session,
and then will indicate tentative rec
concentrations for the information
of the House ways and means COM
mittee. which will actually draft
the bill.
The Washington herald., 1921-05-28
Sirty-f0ur Railroads
Ask Wage Reductions

= CHICAGO. May 81. twenty
Ave additional railroads have
brought their petitions to the
railroad labor board for hearing
on June s. This brings the to-
tai up to 81 roads that have filed
disputes for the FIRST wage re-
duction.
The new roads which will
make their first attempt to cut
wages at the June hearing in
clude the Wheeling and Lake
Erie. Fort Smith and Western,
Texas and Pacific. Chicago, ST.
Paul. Minneapolis and Omaha,
Toledo TerminaL st. Louis Ter
minai. Colorado and Southern,
Spokane, Portland and Seattle,
Washington Terminal and Ala
bama and vicksburg.
The American Express Com
pany, having failed to reach an
agreement. with its $4,000 en-
ployes. has fiied the dispute with
the wage board.
The Washington herald., 1921-05-28
REIMBURSEMENT MOVES
STEADILY ONN CANADA
Liquidation Most Pronounced Among Farm
ers-Retail Prices Decline Slowly.

Especial corrsspsndenes Of The Warrington
Herald and New York Evening Post.)
TORONTO, May %. = Canadian
trade is characterized this spring by
great lack OF uniformity. Not only
are the retail prices of certain COM
modities down to pre-war levels.
while others remain close to the
peak reached q year ago, but also
certain districts report increasing
unemployment. while others again
record considerable revival of indus
try. Since, however. the usual
spring buoyancy of trade has failed
to materialize to any marked extent.
even the most optimistic business
men now realize that we cannot es-
cape our part in the worldwide
depression.
So far the farmers have suffered
the most severely from the painful
process of readjustment. In Ontario
they have seen such produce as but
ter. eggs and cheese drop so per cent
in price within a month and -four
decline in year from s10.S0 to
$500 a barrel. owing to the lack Of
the former overseas market, while
because of the practical loss of your
market they are now realizing only
about IS cents bag on potatoes.
Conditions In the wheat Belt.
In the prairie provinces the farm
ers' plight is still worse, for there
the retail shops have scarcely begun
to reduce the prices of clothing.
household furnishings and general
manufactured articles such as the
farmers may wish to buy, while the
produce that he wants to sell is gov
erned by world prices, which suf-
fer a severe further reduction when
the freight is subtracted. Moreover.
the grain now on hand Is last years
crop. which was expensively raised
and extensively harvested. For in
stance. in the rich mixed farming
districts of central Alberta. noted
for their oat crops, oats are now
selling at % cents a bushel. al
though 43 cents is the price at the
head of the Great Lakes. Cattle
have declined to the price received
in 1914. although dressed meats
show only a very slight reduction.
Wheat has lost a third of its price
since last year. while fax has been
reduced one-half Hence, whatever
may have been his illusions last au-
tumn about a return to higher
prices. the farmer now painfully
realizes that the prophesied depres-
sion has already begun And be-
cause the original producer Is suf-
fering. general trade is dull
throughout the West.
LaEEinE Retail Prices.
As on your side of the line. many
raw materials. such as wool, hides
and rubber. have been procurable at
or below the, prices obtaining In
1914. and the mAnufastufer has
therefore been abfe to- reduce his
prices. However. owing to the still
high cost OF labor and to the vari-
Gus slow stages by which the man.
ufactured article passes from fac
tory to the ultimate consumer, the
retail prices do not as yet reflect
the lower cost OF production.
In spite of the Extraordinarily
The Washington herald., 1921-05-28
April Cotton Consumption.

After three consecutive months of
increase domestic cotton consump-
ton receded in April. and exports
experienced further contraction. At
408,SS2 bales. linters excluded. the
April consumption represents a de-
crease of $4,000 bales from the
March total, and falls $4,000 bales
short of the figures for April, 1890.
The April consumption. however:
exceeds that of any previous month,
excepting March, since last Septem-
Der, when about 457.60o bales were
reported. The unsatisfactory situa-
tion in the export trade is indicated
by the April shipments of Jess than
100000 bales. linters included, and
each month of the last four has
shown reduction in the outgo of cot
ton. Comparing with March, the
decline in the April exports is fully
5000 bales. and there is a loss Of
226,000 bales, or some 20 per cent
from the $4,000 bales sent abroad
in April of last year.
The Washington herald., 1921-05-28
COTTON CLOSES
AT Low PRICES
Bad Crop Report
Responsible; Average
Condition $3.50.

NEW YORK. May 27.-A sensa-
tionally bad crop report was an
nounced this morning by the
,ional Ginners' Association. IL maoe
the average condition of the crop
only g. per cent against e2.4 on the
governments figures for May 70 last
wear. which was the lowest conol-
ton on record for the period IL
also claims the decreAsc in the aver
age is 81 per cent from the 3s.e5o.-
600 acres planted on the govern
ment's figures Iast year. and alleges
on these percentages that the pres
ent indicated crop is only 1,Ofo.VoO
bales. That would be the smallest
produced for the last 40 years
while the condition Of the crop may
be as low as II states and the de-
crease in acreage as much as ~
claims, the assertion that the yield
indicates q crop prospect at present
OF only 100000 oales Is entirey
belief in killing the
crop, OF before planting has been
finished over the northerly districts
of the belt.
In the early advance July con-
tracts sold as high as 1913, OCTOBER
1893, and December 1870. BY ?
O'Clock July was back to 1896. Oc-
tober 1915. and December to 1914,
with the trading conditions then
very dull. Liverpool was good
buyer early in the day and SO were
Wall street houses. On the other
hand, the south was a good seller
and lthere was a good deal of liqui-
dation at times throughout the/sft-
ernoon from local and trade COM
mission houses.
The Liverpool market was stinu-
lated by the crop reports from this
side. with spots there going up >
English points to ISd for middling.
while futures at one time advanced
to 10 and IL points over their clos
ing quotations. with some covering
of shorts and new speculative buy
ing going on then. Closing prices
were 10 points net advance for the
near months and for the distant.
with the days spot sales only 1000
bales. Today's export clearances
were e02ss bales. all from Calves
ton. This makes 100000 bales Of
cotton shipped out from Galveston
altogether this week in fulfilling
contracts for the end of May clear
ances Weather conditions in the
cotton belt continue generally IA.
vorable There were some good
rains In Oklahoma where needed.
Planting operations are being
pushed to completion. Within the
next week or ten days there should
be some good crop reports.
The New York and New Orleans
cotton exchanges will remain closed
from this afternoon until next Tues
day for an extra Memorial holiday.
The Washington herald., 1921-05-28

nigh wage scale still obtaining, un-
employment Is increasing in our in
oustrlal centers. while a plentiful
supply OF labor for the farms and
the mines Is now available. In the
neighoorhood of Ottawa, however,
many iaborers have been willing to
accept 30 cents an hour for out-of-
town work. In the nonunion metal
trades the employees have accepted
wage reductions of from 10 to is
per cent. with an increase in their
working hours per week. The
workers on our railways have been
served with a months notice of the
termination of wage agreements
with the companies. Several paper
companies are now closed down be-
cause the employees have struck
rather than accept the lower wages
recently offered.
Inactivity In Building,
Some of the building trades have
accepted only such very slight re-
ductions that most projected build
ing operations are still postponed
until the cost Of labor becomes ma
terially less. The plasterers in
Regina, for instance, have agreed
to accept s1.l5 an hour instead of
the sl.2o originally demanded. As
a result OF the high demands in this
trade most of the workers con-
nected with building are idle. and
consequently lumber and the allied
trades are very quiet. while houses
are scarce and rents are therefore
high.
While some OF our factories are
suffering from lack of orders and
from the high cost of labor. others.
as in the case of the pulp and
paper companies. are suffering from
the great expense of financing ex-
pansions to their plants. Even the
all-powerful newspriat trade. with
its practical monopoly OF the United
states market, has experienced a
slightly diminished demand for its
product as a result of the reduc-
tion in size Of many of your news
papers.
The Securities Market.
Partly because of the decreased
earnings of our Industrial companies
and partly because of manipulation,
our stock market has been in an
exceedingly unstable condition for
the last three months. While many
OF our securities have recovered
again. the stocks of the paper COM
panies have suffered bad recessions
quite disproportionate to the moder-
ate reductions in the price Of paper
itself. On the other hand. so pro-
ductive are our Northern Ontario
gold mines at present that gold
stocks are at a higher price than
at any time within the last five
years.
The rather extraordinary feature
about our present dulness of trade
Is the paucity of failures in retail
merchandise the actual failures
recorded being chiefly of those who
have embarked in business only
within the last 12 months. The in
ference. therefore. seems to be that
those who profted during the rich
war years can still afford to main
tain fairly high prices even at the
risk Of diminished volume of busi-
ness.
The Washington herald., 1921-05-28
Dollar Exchange Drops
Fire Points in Argentina
tsp.oisl Cable to The washinston Hsrals
and Chicago Tribune.)

(spscial Cable to The washington Herald
and Chicago Tribune)
BUENOS AIRES, May T.-The
dollar exchange dropped Ave points
as a result of an announcement that
American exporters will hold a
meeting in New York today to ar
range for the liquidation of the huge
stocks of unaccepted merchandise
which has piled up in South Ameri-
can ports.
The dollar closed Tuesday at
pesos lao. and opened today, fol-
lowing two holidays, at pesos LBS.
The principal depressing factor was
the statement that the meeting in
tended to reduce the cost of the
materials stored in the warehouses
to facilitate liquidation.
eosvyrixht, ls2L)
The Washington herald., 1921-05-28
NEW YORK PRODUCE.

NEW YORK, May 27.-Butter
market barely steady. Creamery
extras. 2sa3ohc; creamery firsts. 25
a2sc; creamery, higher scoring, asIS
aS1hc; State dairy tubs, 1sa2sck 4 !:
renovated extras. 24c: ladies' frsts,
fresh, 22a24kc.
Cheese market irregular-State
whole milk specials, 15a1slsc; whole
milk fancy, 14ha15hc: wisconsin
whole milk fancy young Americas,
16ka17hc.
Eggs-Market firm. Nearby white.
fancy, 35a3ec; nearby brown. fancy.
s2aasc; extra, 2sa2shc; frsts, 2Ia
&c
The Washington herald., 1921-05-28
HARDING TO INVITE
CHIEF BANKERS TO
CONFER ON CREDITS
Restrictions on Agricul-
ture to Be Aired in Sc
ries of Meetings.
SEEK COOPERATION
Impending Conferences Out
growth of Recent Confab
With N. Y. Financiers.

President Harding will invite the
leading bankers Of Chicago anu
other western cites to the "nlIe
house shortly to discuss plans ior
the lifting Of credit restrictions on
Agriculture and business and a gen
eral liberalization Of the pohcy OIL
the government toward the banking
interests
The President in this series OF
conferences with the financial pow
ers, which began with the Wnite
house dinner to the New YORK
bankers, aims to obtain the CO.
operation of the bankers IN improN-
ing the agricultural situation ano
stimulating foreign trade and 10 IN
form himself on the modincations
of the credit policy by the federa
reserve board deemed necessary 70
a revival Of business activity. Inc
first conference of the series, II was
learned yesterday. has conVineeu
tn. administration that the time mas
zone by for any further exercise OF
the policy of restricted credit
which has been enforced by the
federal reserve board for more
than a year. 1t Is the feeling OF the
administration that while a reason
able restraint and supervision Is ad-
yisabIe, there is no longer any oc-
casIon to attempt to discourage
speculation With the easing OF tne
credit situation, co-incident with
the general decline in business ac-
tiyity, il is held that events in the
financial markets may be allowed 70
take their natural course without
any restriction on the part OF the
government.
To Extend Every Facility.
The new policy is part of the de-
sire on the part of President
Harding to give business every pos
sible facility and assistance with
the least possible measures of inter-
ference.
President Harding has been i'm
pressed with the criticism leveled
against graduated rediscount rates
by federal reserve banks.
At present the graduated redis-
count system is in effect only in the
Kansas City and st. Louis districts
1t has, however, caused serious diff
ficuIties in financing agricultural
products, especially in the Kansas
City district, according to the critics
OF the plan
Member Banks fenauEeu-
Under graduated rediscount sys-
tenn, member banks are penalized
through higher rediscount rates
when they borrow more than a GER
tain amount based on their capital
and surplus from federal reserve
banks. The rates on discounts IN
excess of a basic line for each mem
Der banks The Kansas City and St
Louis federal reserve banks are sub
ject to a n per cent progressive
increase for each 25 per cent oy
which the amount of accommoda-
ton extended exceeds the basic line.
In the case of the Kansas City bank
the maximum rate is IL per cent, It's
ordinary rate on commercial paper
being per cent
1t is charged by agricultural IN
terests that as a result Of this sys-
tenn, which was put in effect by the
government for the purpose OF re-
tsricting credits, bankers, who have
borrowed from federal reserve
hanks only small amount Oh
money at the IL per cent rate. have
demanded corresponding rates upon
all their loans to farmers and
others needing money.
The Washington herald., 1921-05-28
California Cotton.

Lower California. in Mexico. pro-
duced a record-breaking crop last
season. To April Is, 1921. $1,000
bales had been picked, and 1t was
estimated by the American consul
bales win be harvested of the 1920
crop grown in the Imperial valley.
Lower California exported during
the eight months ending March 81.
s4,765 bales of cotton, valued at
se.s07.25s. The state of California
produced 1850 bales OF cotton last
year. which gives total produc-
tioh of 161,6s6 bales for California
and Lower California. most of
which was grown in the Imperial
valley. Cotton grown on the Mexi-
can side is largely under the con-
The Washington herald., 1921-05-28

NEW YORK. May 27.-A sharp
break has carried London tin prices
to the weeks lowest levels, spot
being f3 lower at Ell 15s, and fu-
lures f3 Is Sd lower at f17S los;
sales 10 tons and $50 tons. Stand
ami copper is rs Sd lower, both spot
and futures being quoted at f73
Sd: sales 500 tons futures. Elec-
trolytic is unchanged at f7s. Spot
lead is 12s Sd lower at f25, and
spelter unchanged at f2S. .,
The Washington herald., 1921-05-28
SANTA OFFICIAL
TESTIFIES AGAINST
FREIGHT RATE CUT
Chambers Tells Senators
Lower Tariff Fails
In Purpose.
FIGURES SURPRISE
Bla m es Business Condition.
Not Railroads, for Poor
Shipments.

More arguments against a reduc-
tion in freight rates were heard
yesterday by the senate interstste
commerce committee when EDWARD
Chambers, vice-president Of the
Atchison, Topeka & Santa Pc. re-
sumed his testimony in the railway
Investigation:
Repeating that the general bust
ness depression and not the increased
carrying charges is responsible for
the distress Of the carriers. he as
serted that where reductions in rates
had been made they had failed %
alleviate the situation
Cites Lumber Case.
As supporting his statement. he
called the attention Of the commit
tee to the adjustment in rates that
had been effected on lumber from
the Pacific coast. While admitting
that the adjustment has been help
full TO some extent. he asserted that
On the other hand. Chambers
pointed out that shipments Of both
bituminous and anthracite coal In
the last six months OF 1880 were
much heavier than in the hrst half
of the year. although the increased
freight rates were not then in effect
The same condition. he said, IL true
in the case OF grain.
Say. C.rroes Grow.
Referring 20 the agitation for n
reduction in rates on perishsbie
products from the Pacific coast.
Chambers cited figures prepared by
the bureau OF markets showing that
from October. 1890. 70 March. 1871.
shipments from California Of lem
ons. oranges. grapefruit and other
deciduous fruits and vegetables had
increased 1000 ears over the corre-
spending period in 1880 despite
the higher carrying charges The
figures also disclosed similar in
creases in the shipments of these
products from Florida and Texas.
Members of the committee er-
pressed surprise when they heard
the figures. There has been a gen
eral Misunderstanding on that
point" Senator Cummins. the chair
man. commented.
Chambers admitted that there
were certain Inconsistencies in the
new rates, but these. he said. were
gradually being either eliminated or
adjusted between the roads and the
shippers themselves. What irrecu-
larities remained. he declared. should
be worked out in the same way with
the help Of the interstate commerce
commission without recourse by the
government TO an arbitrary adjust
ment.
The Washington herald., 1921-05-28
TIMELY WALL STREET TOPICS

NEW YORK. May a., - The
stock market week ended with
neither speculative faction claiming
the advantage. although when the
five trading days are taken as q
unit 1t cannot be doubted that prof
it's were greater on the short side.
Todays session was dull. uninter-
esting affair. which registered little
more than the preparations which
professionals were making to have
their accounts on a safe basis over
the three holidays During the
session Industrial shares were
heavy, especially those issues
which had led the upturn of the
fortnight ended May 6. Railroads
were firm again. but there was
noted a reluctance on the part OF
~ constructive element to proceed
far in marking even this group up
far. owing to the uncertainties OF
the holidays
Although Industrial stocks eased
off during the first hour. profes-
s,onaIs following the shore side
made no concerted drive on the list
as a whole. Individual issues were
singled out, but even in these cases
the selling was only half-hearted-
There was an utter lack of enthu-
siasm on both sides Around the
Irnited states steel post nothing
was done for a long period after
the onening, and 1t was 36 minutes
after the opening bell rang that the
6rst sale of steel common was re-
The Washington herald., 1921-05-28
FOREIGN EXCHANGE.
IFurntshed by American seearity
aad Trust Col

Prices realized on Swift Co. sales of
carcass beef t. waShlnEton for week end
ing Saturday. May u. 1921. 90 shipments
sold out ranged from II cents to ~ cents
per pound and averaged E.s2 cents per
pound.-Adv.
The Washington herald., 1921-05-28

corded on the tape. Traders were
treated TO the most unusual expert
ence OF seeing q bid and asked"
quotation on this stock appear ON
the tape. Usually the last sale
price Is a clear indication of the
market in steel. inasmuch as the bid
and asked price are never far apart
Up to the time the FIRST sale Of steel
common was recorded the average
brokerage house board showed
transactions in less than half the
number OF stocks displayed.
The professional aspect OF the
market was indicated in the decline
which came around midday. Previous
to this time the industrials had
been only heavy. The Significant
thing about this selling wave was
that IL came over the market only
a short time after the passage of
the regular Baldwin Locomotive
was announced Baldwin advanced
to s2h, for a net gain Of u point.
but reacted to 81 within a short
time. Traders placed a great deal
of credence in the Baldwin dividend
omission rumor early this week,
when hysteria on the subject Of
dividends was the ruling style. Yes
terday they were a bit more opti-
mistic and regained some hope Of
the Baldwin disbursement being de-
clared. when the stock recovered
2k points.
The street could scarcely con-
cetve of anything unfsvorable de-
veloping in the railroad situation
over the holidays. Hence the frm-
ness in rails while industriaIs were
going through their midday reac-
tion. The next important event af-
fecting the CT rriers will be the rail-
way labor boards announcement of
wage reductions next Wednesday
leaving only one more trading day
IN which to give rail stocks their
nnal adjustment. The forecast pub
lished early this week mentioned a
smaller percentage Of reduction that
the street/at first believed the
board would allow and there is.
therefore. less likelihood Of the
actual decision proving disap-
pointment. In the meantime there
will be more April earnings state
ments for the market community 20
peruse. The belief is that they will
be uniformly favorable. but cannot
by themselves furnish the basis for
an additional rise in rail stocks IN
view of the general response made
yesterday to the good reports pub
lished up TO that time.
The Washington herald., 1921-05-28
Breadstuff Movements

NEW YORK, May 27.-The follow
ing shows the movement of bread
stuffs at New York today in bushels
of grain and barrels of flour:
The Washington herald., 1921-05-28
METAL MARKET.

(Furnished BY ". n. Hibbs Co., menbs
New York Cotton Exchange.)
The Washington herald., 1921-05-28
SUGAR MARKET.

NEW YORK. May a7.-The sugar
market closed point lower to .
points higher.
June 4. lsa3 5a
July ... asa asa s.5fas 52
August 49,. 49,. 49,. 3.55a3 SIS
The Washington herald., 1921-05-28

Receipts. Exports.
meat SU,OOO
corn lf,OOO
oats ..............14e. 900 ....
Flour ............. 10000 $4,000
The export clearances for the
seven principal ports of the Allan
tic seaboard (New York, Boston,
Philadelphia, Baltimore, Newport
News, Galveston and New Orleans)
thus far this week as compared with
the corresponding day of last week.
have been as follows:
Flour Wheat Corn Oats
Today. 5000 22SO00 Sol 900
This week 1I4.OO0 3.se3.ooo o4s.o0O ...
Last week 1so, 900 Ash, 900 1,3os. 900 $50. 600
Exports of wheat from the four
ports (New York. Boston. Phiiade,-
phia and Baltimore) were $4,000