davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

cessfully worked up in the organiza-
tons that the great railroad builders
developed. These organizations pre-
sented tough problem to the boy who
entered at the bottom, with no help to
depend on except his own ability 60
displace the man above him. Peculiar
qualities are the natural outcome OF a
training such as this. The organiza-
tion Of large railroad is so vast that
routine inertia develops impene-
trable as blank wall to any but the
most determined.
1t is an organization nearly as exact
ing in it's demands as military or
ganization, but without the rigid formal
rules of seniority, and its officers lack
the power to infiict anything but none
tary punishment. The railroad. is a
system so extensive that personal SUI
pervision can only be attained through
being out on the road continuously.
Railroad work involves great masses Of
detail, bristling with chief clerks and
offering infinite opportunities for SOL
dering on the job.
A man who csn break through these
conditions and ride down the obstinate
opposition Of labor and inspire the lazy
and indifferent must be a man of
extraordinarily strong character.
Such q man was Frederick D. Under
wood. His first advancement was from,
brakeman to foreman of elevators;
| then he went back on the road as a
conductor, became q yard master and
| assistant division superintendent, 6
superintendent, general superinten
dent, general manager, vice-presi
dent, and in 1901 became president. Hi
says that the biggest surprise of hi:
life was when he became yardmaster
to discover just how big job that was
AS a matter Of fact, every one Of these
successive offices held q large degree
Of responsibility and required large
executive ability.
A railroad organization Is built W
only after years Of effort, and sue
cessful one is built up only through
the exercise Of authority by some ont
extraordinarily strong character. TIL,
Pennsylvania organization and his
tory are seeming contradictions to thi.
statement, but careful study Of thu
system Of promotion in the Pennsyl
vania will not refute the opinion. I
is true that the system impresses 1t
self on men rather than permitting tn,
individual to impress himself upon tn,
system. But the system in its mos
successful working out has acted as {
selector which, though it nodded
mans character, did not rob the indi
vidual who successfully rose to an ex
ecutive position of his initiative ans
personality.
During the years of development o:
railroads up to 1905 railroad work pre-
scented an opportunity for a man VIII,
lived in order to exercise authority ant
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Failing Off in Sales

while production value constituteda'
record, the sales Of diamonds fell be :
low the total of 1919 by f3, 1,267y,
from s1S, 1862 to &10,328,4O5 Thf
decrease is accounted for by the larg g
drop in the volume sales, which wene
only 1,765,993.82 carats as comparai
with 1919 sales of 2,648,931 carats. The
sales total would have been even less
In value except for the increase IN tine
against the 1919 figure Of lois. per
carat. This high figure reflects the
effect Of abnormal conditions on prices,
as the price realized per carat in 1917
was SIS. Id. and in 1918 was 54s. Cd.
That these high prices stimulated pro-
auction is evident in that there were
s-sneteen mines producing in the Union
IN 1920, compared with sixteen in 1918
and eleven in 1917.
The fuctuating character of the
diamond industry is indicated by the
fact that while the value of diamonds
from mines rose in value from 75s. sd.
A 1919 to 106s. Sd. per carat in 1920,
the alluyial diamonds declined from
E61s. cd. to 220s. Cd. On the other
hand, when the jump in the value OF
1 me ailuvial output between 1913 and
1919 was from 134s. ed, to 261s. 3D., the
mine output was only increasing from
OILS. BID. to lbs. Cd.
which diamonds are marketed through
the Diamond Syndicate, it is interest
ing to note the difference between the
production and sales figures. In 1920
safes by volume were 9,024.65 carats
under production. III 1919 sales were
60,Sl8.95 and in 1918 104,572.45 carats
above the output"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

duties, and by the War Revenue act,
1915, horizontal advance Of per
cent was made in the customs duties
on goods imported under the British
preferential tariff and horizontal in
crease Of 7h per cent.in the duties on
goods imported under the intermediate
and general tariff schedules. At the
same time special internal revenue
taxes were imposed, including leyies
on bank circulation, income Of loan
and trust companies, premiums Of In
grams, transportation tickets, sleeping
car or parlor car accommodation, and
taxes payable by stamps on checks
bills Of exchange, money orders, let
tiers and postcards, bills Of lading, and
proprietary medicines, perfumery and
wines. The following year the bust
ness profits war tax was imposed.
In 1917 the business profits war tax
was made more drastic, and later in
the same year the government was
forced, reluctantly but Of financial
necessity, TO introduce the income war
tax act, which had been drafted the
preceding year. In 1918 the income
tax was extended by a reduction of
exemptions and graduated surtax was
added. New excise duties were i'm
posed. In 1919 the government sur
rendered to the Western demands for
tariff reductions by abolishing the
per cent customs war tax on all i'm
ports under the British preferential
tariff and by withdrawing the III per
cent war tax on an extensive list of
articles of food, clothing and other
necessaries imported under the gen.
eral or intermediate tariffs. The Gus
tens duties on agricultural imple-
ments were reduced at the. same time
approximately to the scale proposed
in the reciprocity agreement with the
United States. which was rejected in
1911 by the Canadian electorate. TIC
offset the loss in revenue from these
tariff changes the government ad.
vanced the income tax rates to the
level Of those in force in the United
States. In 1920 the governmentawith-
drew the IN per cent customs war tax
which still applied on q large proper.
ton OF importations, and thereby
abandoned revenue source which, in
1919 and 1920, yielded $4,000, 900. OF
course, the revenue had to be pro.
vided In other ways and the govern.
ment announced complicated system
of so-called "luxury" taxes, manufac-
turers' taxes, increased stamp duties
and the sales tax. The income taxes
were AHCIc6SeU hiSo ny U per C6IlC CVeI
the rates prevailing in the United
States. Thus the Canadian customs
tariff was brought down to a lowe,
level than before the war and the
Dominion Treasury was forced to de.
pend to far greater extent than ever
before upon direct taxation. Most OF
the luxury taxes were withdrawn last
December, but in May of this year the
rates of the sales tax were increased
by 80 per cent. In 1919 and 1921 Gus.
toms duties were responsible for less
than 3S per cent Of receipts into the
Canadian consolidated revenue fund
whereas In 1918 and 1914 the percent.
n e-a nu,aa r1inhflx, nypF "a
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

road. his first act was to name as his
assistant A. H. Smith, at that time
president Of the New York Central.
For a while he permitted the railroad
presidents to remain in charge Of their
properties, but at once established
central administration. As he per-
fected this central and regional or
ganization Of management he came to
the conclusion, apparently, that it was
not necessary to have railroad, presi-
dents to operate the American railroad
system. He therefore issued an order
that Federal managers must be In the
pay Of the railroad administration and
not officers of the corporations.
Expensive System
Some of the railroad presidents re-
signed from their corporations md ac-
cepted positions as Federal managers
of the railroad properties, others
stepped out from the management of
the railroad and let subordinate ac-
cept the Federal managership. Mr..
McAdoo was probably not convinced
that his experiment of running the
railroads under central and regional
organization was failure, but his sue
cessor as Director General showed his
appreciation of the systems expensive
ness and inefhciency by urging Con-
gress and the executive department to
quickly as possible.
When the corporations resumed con-
troll the same presidents in charge Of
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

to an effective gold standard Cana
dian currency has not deprecated in
anything like the measure Of the dis
count on the United States green
backs" which went to value Of So
cents to the dollar as compared with
gold. The maximum depreciation to
date Of sCanada's currency, as measured
by the exchange premium on New
cember aa 1926 as cid i Is n seh IN On cr pa
lation in the Dominion, all prices are
quoted in terms Of paper money, and
expectation of gold has been pro-
hibited, so that the fact of currency
depreciation has been somewhat dis
guised. The operation Of Gresham s
law is almost perfectly illustrated by
Canada's experience, however, and the
deprecated legal tender currency has
driven out of circulation even the
small amount Of gold coin which for
merly was in the hands Of the public,
and 1t no longer is possible to obtain
gold upon application to the Receiver
General or any bank in redemption Of
Dominion notes or bank issues. The
currency as compared with that of the
United States at the close of the
Civil War is attributable in part to the
more able wartime financial admins
tration of the Dominion, the Civil War
financial policy Of the United States
having been unfortunate and lamenta-
bly, shifting. 1t Is due in even larger
measure to the greater strength and
efficiency of Canada's banking system,
as compared with the system of state
banks in the United States prior to the
passage of the national bank acts of
1868 and 1864. 1t was recognized by
the United States administration after
the close Of the Civil War that the re-
sumption of specie payments in every
large measure was trade problem. AS
long as the trade balance was adverse,
the return to an effective gold standard
was impossible. BY relieving domestic
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

WaSaous attempting to name all osA
sAs railway executives, some Of the
most important in the present crisis
with the greatest responsibility are
Samuel Rea, Of the Pennsylvania; A. II.
Smith, Of the New York Central; Julius
Kruttschnitt, Of the Southern Pacific:
Hale Holden, of the Chicago. Burling-
Ron & Quincy; Fairfax Harrison, Of the
Southern Railway; l.. f. Loree, of the
Delaware & Hudson and Kansas City
Southern; Carl Gray and Judge Il. S.
dsovett. Of the Union Pacific, H. e. By
sana. Of the Chicago, Milwaukee & St.
Paul, +. D. Underwood, Of tho Erie;
Daniel Willard, Of the Baltimore g.
Ohio; G. II. Markham, of the Illinois
Central; Marvin Hughitt, of the Chi
cago e. Northwestern; W. II. Truesdale,
of the Delaware, Lackawanna e. West
earn; James H. Hustis, OF the Boston &
Maine; E. ]. Pierson, Of the New Haven,
hnd A. II. Ashton, president Of the
american Railway Association and for
Euarly president Of the Chicago &
Northwestern. T. De Witt Cuyrer,
slough member Of the, board of d.
rectors of the Pennsylvania Railroad,
ss not In charge Of the redlroad prop
Arty, but is chairman Of the Railway
Executive Association. Has RESPONSE
bDity is Of q character different from
That Of the others named. The Railway
Executive Association represents the
railways before Congress and before
khe public.
1t used to be customary TO speak Of
Ahe Gould railroads, the Vanderbilt
roads, Morgan roads, etc. This group
Eng according to capitalists, has largely
become obsolete. Even wh .re one group
of roads is financed by. one banking
mouse exclusively the ban1 lers' influence
IN the management Of the, road extends
no further than the engaging Of a
president when a vacancy occurs, and
che actual management As left to him.
4s is no longer an interest ing game with
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Canaa Economic Position Like That of T. S. After Civil

rapidly reduced in the United States
after 1865. Even the income tax was
abandoned in 1872, and by 1873-'74 GUS
toms duties represented Sid per cent
of the total taxation revenue of the
Washington government and were rec
ognized again as the main dependence
of the Federal Treasury under peace
conditions. 1t is not clear that Can
ada's postwar fiscal policy will run a
parallel course. Instead Of the customs
tariff becoming increased steadily, as
was done in the United States until re-
dundant revenue prompted some reduc-
lions in 1870 and 1872, the Canadian
government has seen iit to make the
first reductions in the tariff and to ad-
vance the rates of direct internal taxa
ton. The business profits war tax was
not resnacted this year, but it would
not have yielded much revenue il it
had been continued in force. There ap-
pears to be no early prospect of direct
taxation. in Canada being reduced to
any important extent, and influential
groups are agitating for dependence, to
an even larger extent than now, upon
direct internal taxes, in order that Gus
toms duties may be lowered. The Fed
eral administration Is committed to q
policy Of adequate tariff protection, but
it has shown tendency to compro-
mise; and, at any rate, it's tenure Ct Of
flee is uncertain. The average ad
valorem rate of duty on imports into
Canada was lower for the last fiscal
year than it has been for any previous
year since 1873. The average rate of
duty on dutiabls and free imports into
Canada in 1920'21 was only 14.5 per
cent, as compared with 17.s per cent in
191314. The corresponding rate for
the United States in 1851 was 1921 per
cent, and this was increased to 38.46
per cent in 1865 and 46.49 per cent in
1868.
Canada, like the United States Of the
reconstruction period of the Civi, War,
is faced with the problem of return
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Diamond Output
Sets Neao High
Mark In, Value
Total Production IN VOL
! uKae Not Up to Record,
Ho,peuer;~Sales Decline
as Mine Price Advances
" N1GH prices for diamonds
stimulated output to such an
N y extent in tina Union of South

" NIGH prices for diamonds
stimulated output to such an
extent in the Union of South
Africa that new production record
in money value was established last
year. Total sales fell off in volume
as well as in money value, however,
in spite Of the advance in prices
probably because Of the worldwide
business depression and the revolt
against high prices.
In the last three years productio
has huctuated by only about $4,000
carats, although the number Of mines
producing has increased to nineteen, as
compared to eleven in 1917. Regarding
the industry, Trade Commissioner P. J..
Stevenson, johannesburg, Transvaal,
writes:
"Thc estimated value Of the dia-
monds produced in the Union Of South
Africa during 1920 constituted record
for the industry. The value of the
mined, alluvial and debris-washed dia-
monds, totaled for the year the sum
of s14,762,899 The bulk of this amount,
or s12,289,602, came from the mines,
s2,441,4 40 from alluvial mining and
431, 1857 from debris washings. The
previous record year was 1919, the out
put being valued at Eli, 734,495. Prior
to 1913 the high mark was 1913, when
diamonds were produced to the value
of s11 ,3a9,s07. k
"The last years output aggregated
2.545,017.47 carats, of which 2,3l2,A36.b6
came from regular mines and 221 ,460.17
from alluvial mining; 11,120.75 carats
were recovered from debris washings.
1t is to be noticed that production in
the last six years has been practically
constant outside of 1914, which was an
abnormal year; 1917 was the high mark
in this period, with 1901, 416.51 carats,
and 1915 the lowest, with 2,346,330.2l.
The year 1910 is still the record by
volume for the industry. 6,456,56
carats being taken from the earth IN
that twelvemonth.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Special Dispatch to The Tribune

TORONTO, July
industrial development
OF but in
ectthe Dominion fifty behind
Dor The position Canada suggests
United States In 1865
alter the principal problems
on were reorganization Of the national debt revision of
system taxation restoration
ton OF home industry from destructive competition
abnormal development resulting
to-day is confronted with parallel problems.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Intensive Training


The kind of training that most of the
railroad executives have had has been
intensive rather than broadening
Each man has worked with his nose
close to the grindstone Few people
realize how intense has been inter
railroad competition, and few outside
of the railroad field realize how in
tense has been the competition within
each organization. Now the question
arises as to whether a return to these
conditions is possible and, if possible,
is wise. 1t was eminently successful
in developing the American railroad
system up to the time that the Inter
state Commerce Commission assumed
the most important functions of man
agement and has been unsuccessful
since then.
The railroad executives, It will be
remembered, attempted to get together
ard operate the properties as a unit
some months before the Wilson Admin
istration decided to take over the rail-
roads. Their failure in this attempt
was, it is generally acknowledged
now, due not so much to any lack of
cooperation, although cooperation was
by no means perfect, but to the con-
fusion OF government priority orders.
Now, faced with common problems, is
| it possible to present common front
or must each railroad executive fight
his own battle as against his own EN-
| ployees' demands and his own local
conditions and against his competitors
as he has been trained to do all his
! life?
Julius Kruttschnitt has said that be
would rather have to build the physical
Southern Pacific property than to have
to build the Southern Pacific organiza-
ton. This Is not an exaggeration.
Engineering skill, money and time
could duplicate the Southern Pacific
Railway Lines quite exactly, but no
mere combination of science, money
and time could duplicate the organiza-
ton that Mr.. Kruttschnitt, under the
late E. H. Hartman, built up for the
| operation of these lines.
| Each manager now faces a recon-
struction problem in his organization,
and on the success which he has in
doing this work will depend in large
part the outcome of the whole railroad
situation. Congress may easily pass
laws which will prevent this consum-
nation, but at best it can only pass
laws which will make the problem of
l the railroad managers less difficult.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

AS pre-war development and the war
time prosperity resulting from the alb
normal demand for agricultural and
manufactured products enabled excep-
tionally heavy taxes to be bopsie with
out great difficulty by the United States
during the Civil War. SO equally
drastic levies have been paid by the
people of Canada during recent years
to help meet. the costs of the war and
its after demands. But it will be ve-
membered that internal taxes were
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Individual Initiative

Ths railroads Of the United States
were developed by individual initiative
and management. Men like James j.
Hill, e. W. Huntington, E. P. Ripley,
E. II. Hartman, Marvin Hughitt and
G. E. Perkins, of the Chicago, Burling-
ton & Quincy, did their work, relying
on their own Judgment, exercising
arbitrary powers, responsible only to
their own sense Of right and wrong,
without presidents. They had com
paratively crude mechanical devices
the steam locomotive Of the SOS was
pretty crude affair, and civil engi-
neering of the railroads until compare
lively recently was rough-and-ready
variety-yet these men with the tools
that they had opened a continent and
developed railroad transportation
system which hauls freight at frac-
ton Of the cost Of European trans-
portation systems.
The men who are now in charge OF
the railroads are the men who sue
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

the properties prior to government op-
Grafton resumed their duties, but a
new problem had arisen. The railways
had been operated for twenty-six
months as a whole. The public had
come to regard them as whole, and
their. problems were, more than ever,
sary to take concerted action on many
questions, and the natural spokesman
Of the railroads was the Railway Execu-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

industries of Gripping taxation and by
maintaining adequate tariff protection
production at home was greatly stimu
lated, and before the end Of 1878 the
government had accumulated large re-
serve of gold, and gold payments were
rocup,od
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

tives' Association. An association, how
ever, can accomplish only that which
its members agree on, and it is of me-
cessity guided by the strongest indi-
viduals who can carry with them a
majority of the other members. The
better executive man is the less likely
he is to be man who will easily CO.
operate with his equals. Especially is
this true when it comes to the conduct
Of his own business. It Is, therefore.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

not sufficient to say that the railway
ton of the railroads. The association
theoretically does this. Actually, how
ever, the leaders of the railroads are
the strong individual executives who
are managing their own properties in
their own way, whether they happen to
be in exact accord with the association
in its official and formal views or not.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

hohor ana pr ont to DO q railroad mana.
ger. Bankers pay some ono elsa 4o
take the responsibility and to exercise
what LITTLE authority the Interstate
commerce Commission and the Labor
Board have left to the manager
Typical Examples
Whit manner of men are these rail-
way xecutives? or the eighteen men
named there are representatives Of
Varlo us starts.in life that are so tvpic.l
OF successful American men. Two ne
me eighteen are Yale men-Cuyler and
Harrison. One is graduate Of Will
llstIns and ut Harvard Law School-Hale
Holden. One graduate Of Rutgers
Loree. OIae graduate Of WASHINGTON
and Lee rsity-Kruttschnitt. ona
a. graduate of Arkansas Industrial Uni
verslty-rCarl Gray.
The Others started with a common
school education at best and tia edu.
cation OF an early start in manual
labor. For instance, F. D. Underwood.
president Of tho Erie, began work as a
clerk and later became a brakeman.
Daniel Willard. president Of the Balt,-
more & Ohio, began work as a track
iaborsr and became a locomotive fire.
man. II. E. Byram was a call boy--that
is, 1t was his job to 60 night or day
and route out engine crews to take tho
runs assigned to them. c. H. Markham
president Of the Illinois Central, began
work as section laborer, and James
J. Hustis started as an office boy. A. H.
Smith was bridge foreman, and Sam
uel Rea was a rodman, but had. Of
course, engineering training. W. H,
Truesdale began work as "a clerk. and
r. S. Lovett was loc1i attorney for
the Southern Pacific in New Orleans.
These ns9n, who had risen from the
bottom to- the top were in charge Of
the carriers when the government took
them ove,c at the close of 1917. When
| William &. McAdoo was appointed Di-
rector General of 100000 miles of rail
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Since Control Is Divided, Own
ers Yield Direction To !.
II ! Hired Executives & 4
BY William f. Hooper

a'e OF the railways largely in ailwav
ayers Congress may further legislation Labor Road
grant further decreases in actual WORKING
tne problem In the hands of the their
hoiders who are in charge of the properties 7 ~ ~
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

pEAD1N from loft to right the rail chiefs
dent of the Pennsylvania; Thomas Cver
ASSOCIATION Of Rou0ay STsc~ves A. H. Smith, president
ORR Central nes L. F. Lore president of tho Delaware
and chairman of the board of the Kansas CITY Belop-
UNDERWOOD president the Erie Railroad
president OF the Pacific