Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-03
Current Business Conditions
BY GEORGE E. ROBERTS $50 S
(Fron the Monthly Letter Issued BY the National City Bank OF New
- # York for NovemberD I

gathered In our aluat1on
work. which is not in complete form
70 be given out in the form of reports
and findings, and the transportation
act specifically authorized us to avail
of that information. We
awaited ourselves of all the informa-
ton we could"
Does that figure ($1S, 900, 900 .00O)
include the percentage arising from
the increase in the value At materials
and property in recent years, sinco the
roads were constructedT p.
Mr.. Clark: mo, it, does not at
tempt to equate the values. The prin-
cipal figures that we used in u
values are as Of 1913 and 1914. We
fixed the price units on a given rail-
road valuation as of June 80, 1914.
Those price units we think were &C
curate, and they were based on ex-.
p%erience of q series Of years in the
past up to that date, and the prices
then prevailing, for the determination
of what was up to that time the nor
NAL price for fixing the value of a
box car, a piece OF track or anything
else. II. on a given railroad. we had
made u figures on the basis of the
valuation established, say, of June 30,
VIC CA1Cll =SOAkpulSN lllC tdlUC "
what the railroad had at that time.
All that had been put in inc that
time, added. has been computed on
its cost"
{ Senator Jones: 1.-THE valuation
which you have put upon the rail-
roads II based more largely on cost
than on present value, is it not?"
Mr.. Clark: YES sir. It Is based
on three different values that we de-
termined. First, the cost of reproduc-
, ton an Of the date of valuation, then
upon h cost of reproduction less de-
probation, which represents the de-
preciated condition of the property as
of that date, and then the actual cost
to date"
+, Senator Pomerene: 1918, SOC, 000,-
900 was the best judgment of the
! commission after going through all
the data that>had been gathered dur
ing all these years."
Commissioner Clark: Eyes, SIR"
Senator .Pomerene: "That should
set at rest the charge that There is
$4,000, 100000 of water in the rail,
roads now"
That statement should be conclu-
sive as to the basis of the valuations.
particularly so far al the brother
hoods are concerned for Mr.. Clark
formerly vas head Of the Order of
Railway Conductors, resigning to be-
COTE a member of the Interstate Com.
mere Commission, to which he vas
appointed by President Roosevelt. He
amply demonstrated his qualifications
for the position by his service on the
board, where he rose to the chairman
ship, which he held at the time the
valuation was adopted. Probably nc
member of the body has been moro
influential in recent years than Mr.
Clark. It does not reflect, therefore
in any way Upon the original appoint.
ment to surmise that in mailing i,
President Roosevelt was influenced ir
some degree by a desire to have a
man on the board who would under.
stand the point Of view. Of the en-.
ploycs, and in whom they would have
confidence.
The opinion. is often expressed tina
employers should, continue to operate
even though they are not finding sail
for their products, in order to give
employment for abor. The practi,
cability of this policy may be judged
from the following figures given ou'
by the General Electric company
showing the distribution of its incom,
over a period of three years, and thos,
the LlOSL prosperous years Oh lS HIS
tory. The figures show the average
distribution Of each dollar Of gross
receipts in the years 1918-19-20:
Cents
Wages and salaries (paid to an
average of 1890 employees. A.
Materials, supplies. ~deprecia-
ton, operating charges and
losses 1U.'
Taxes 49,. s.;
Surplus (used for enlarging
plants, inventories and work
ing capital) A.
Dividends to all stockholders
average number, 21,461).... d.
Transportation, telephone and
telegraph .................. 2.
Interest on borrowed capital. l.!
This statement will show the neces
sity for a continuous inflow Of none,
to keep the business in funds to oper
ate. The~costs of operation took owe
81 per cent of the gross receipts a
fast as they came, and the gross re
ceipts aggregated hundreds of mil
: lions Of dollars 1t is impossible TO
. such an organization to operate lon
without selling its products. The fig
ures also how how small is the posi-
: bility of increasing wages at the ex
pense of profits, even II all Of the lat
: ter were devoted to that purpose !
the case Of one of the most prosper
GUS companies in the country