davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-08-28

garding the credits that German manu-
facturers are extending TO purchasers
in order TO introduce their goods. Our
corpora slon is doing business. so far
as credits are concerned, on about the
same basis as American manufacturers
or selling agents. Most Of our goods
are being sold on ten days credit. In
only few cases do we grant credits
up to thirty days.
I'VE are selling goods with the prices
quoted in marks or in dollars, and
either +; o. b. Hamburg, or T. o, b. New
York In the latter case, where we
quote prices in dollars delivered here.
naturally we make the price a bit
higher, to cover our risk on the f1uctu-
atlons of the mark, the price in Ger
many and the possibilities Of a higher
tariff. If l sell such bill Of goods
and the tariff goes against me and
marks rise in value, naturally | have
done piece of bad business, but that
is risk we have to take because Of
present conditions"
German Goods
The goods that are being offered by
these 100 German manufacturers en-
compass wide variety. Cotton, silk
>>A@N '0S~SA RitSC &uOuo are uOL IN
cluded. According to Mr. Tietz, the
German prices on these goods are too
high to sell them in competition with
American made goods The German
manufacturer is laboring under high
raw material costs where raw mate
rials are not produced in Germany. he
explained. Knit underwear, hosiery.
laces, small metal wares, cutlery. glass
ware and toys, are among the principal
items that the corporation has decided
Will find good sale here. The show
ing OF dolls and toys from the Nuren~
ourg section is fairly large.
Mr. Tietz asserts that conditions in
Germany are much misunderstood here.
Many people over here" he said. "be-
ileve that all prices are cheap in Ger
many, largely because Of the low value
OF the mark. This is not true. Take
motor cars, for instance. 1t is impos-
slble in Germany to buy an automobile
of any kind for less than so 600 to 80 600
marks, which, figured at eighty marks
to the dollar, means $1,000 or more in
your money. Think of the motor cars
that can be bought here for less than
81 900 apiece. Rents are high and food
is still extremely high in Germany
Retail trade in Germany. he said.
passed through a period of fall prices
beginning in March of last year and
extending well into the present year.
Lately prices have begun to rise again
German consumers, he added, are seek
ing bargains, but are purchasing fairly
literally. although I cannot speak FOR
German retail trade as a whole" he
said, Il know my fathers firm, which
operates ten department stores in Ger
many, is now about 30 per cent ahead
of last year in the volume of sales in
money value. With prices lower than
last year, the volume of goods sold
naturally is greater"
German manufacturers, according to
Mr.. Tietz, are greatly hampered by a
lack of capital and also by the heavy
taxes. For this reason, he explained,
the manufacturers there are making up
goods only on special orders, with few
exceptions. "The German manufac-
turer," he said, cannot get money
from his bank to buy raw materials and
to pay his labor, unless he shows
orders for the goods he intends to man
ufacture"
New-York tribune., 1921-08-28
Days Nelv Issues

Dillon, Read & Co. are Offering
at 1872 and interest to yield Sl5 per
cent an issue of s5,000,000 Keystone
steel q Wire Company, first closed
mortgage twenty-year per cent sink
ing fund gold bonds. The issue is
non-callable during the first ten years
A sinking fund, available scmi-annual-
", Will redeem the entire issue by
maturity, purchasing bonds during the
ilrst ten years if obtainabe at or be-
low 1O7Ia and interest and redecming
the remainder during the last ten years
by Ike purchase or call at lG11s and
interest. Proceeds Of The issue Of
bonds will b used to refund the com
pany's maturing notes and to provide
additional working capital The COM
pany Is an Illinois corporation and is
the largest independents producer of
wire fence in the United States. It's
net sales after allowances for re-
turns amounted to s5,267 .o85 in 1921
against S6.38l 1886 in 1920 and 81. .036',
936 in 1918, |'''N'
New-York tribune., 1921-08-28
Flavelle Railway
Plan for Canada
Arouses Interest
Agree That Something Must
Be Done TO Check Def
cits, but Many Are Doubt
full of the Proper Course
Special Dispatch to The Tribu,l


MONTREAL, Aug. 27-Thc sugges-
tion of Sir Joseph Flavelle for the or
ganzatlon of a $3.50 900 900 company to
take over and operate the Canadian Ma
tlona! Hallway was received in financial
and railroad circles with mixed feel
lngs
1t is generally admitted in Canada
that something must be done. but Ca
nadians have grown chary of what that
something Is to be. They are willing
to give careful consideration to any
plan which might be feasible however.
Certainly Sir Joseph's plan is better
from an economic viewpoint than the
system at present prevailing, but even
at that he does not show how to op-
crate without deficit. He provides for
capitalizing of deficits through the is
sue Of preference stock at par. The
suggestions have not been received
with the hearty accord extended to the
plan evolved by Sir Thomas Shaugh-
messy, chairman Of the Canadian Pa
citic management. Thus competition
would be eliminated and success practi-
caily assured. 1t is difficult for the
public to conceive of any Canadian
government operating a national rail
road in competition with the Canadian
Pacific and hoping to meet anything
but large deficits in the average year.
Sir Joseph's capitalization plans are
discussed IN various ways. He suggests
nominal capital of 5000 600 shares Of
common and 100000 of preference c
per cent shares, each of 500 par value
or $3.50 100000 in all The government
would take the common at par in pay
went OF existing advances Of 1888
100000 to December 81, last, with the
Prospect of an increase in these. This
would give governmental control and
whether any management could operate
the lines on a sound corporate basis
under such circumstances is highly
nrOhl lcmatical
New-York tribune., 1921-08-28

AS of June 80, 1921, that menace
still existed. The break in wholesale
prices and the more recent break in
retail prices had not been sufficient
to liquidate the inventories of most Of
the companies which have reported a
balance sheet statement for June 30
The largest of these companies, General
Motors, has reduced its inventory by
S37 100000, but large as this looks il
represents but small percentage Of
reduction, and at the same rate it
would take over year more to thor
oughly liquidate inventories which as
of June go. 1921, stood at STAT, 5O2,-
600. Studebaker, one of the larger au-
tomobile companies manufacturing only
one brand of car, reduced its ;nven-
tories from 28,077 900 to 500 1926, 600,
decrease of s1.751 900, but here again
when we consider that production dur
ing this period was either entirely sus-
pended or was on very small scale,
the figures emphasize the inactivity of
the automobile trade.
In the same class with the motors,
IN so far as American markets are
concerned. are the locomotive compa-
MES. In their case, however, they have
foreign markets to depend on, to some
extent. The American Locomotive Com
pany reduced its inventories from s15.-
1i9, 900 TO S6,555 .000. decrease Of S.
564, 600. This was pretty thorough liqui-
dation, but represents in large part the
manufacture and sale on foreign or
ders. incidentally, it calls attention to
one phase of the desirability OF foreign
trade and the stability which it gives
during period OF depression in the
United States.
Inc Hercules Powder Company and
the II. Fl. Franklin Company showed
larger Inventories on Juoe so than thoy
aid On December 81. Ihe Eeccales
Powder Company had $7,70e 600 inven-
tories on June 40, which represented
an increaae of s1,537 ,o00 during the
six months. The r. H. Franklin Co.a-
pany. which manufactures the Frank
lin automobiles, had s7.615, 600 inven-
tory on June 80. an increase of ST.
$4,000 over the December 81 fguxs;
New-York tribune., 1921-08-28

~ tA~ %'.''N*'f 50 -OSOA4OkINe " OEkS
did not get single railroad order for
new locomo cives as a result OF the pas
sage Of this b.ll,' Mr. Vauclain said. "it
would nevertheless profit greatly from
the general business activity which
would result from putting $500, 1000, 900
into circulation"
Baldwin is in good condition, Mr..
yauclan said, running at about IS per
cent Of capacity. doing large amount
Of repair work for railroads other than
the Pennsylvania Railroad, and with
orders for around $50 to 100 locomo-
tives, on which it is at work. About
60 per cent OF the business it is do
ing is domestic business and 90 Der
cen. foreign. Mr.. Vauclain said that he
thought that Chile was about to place
orders for electric LOGON otiyes in this
country, possibly that the orders had
actually been closed and Baldwin will
presumably get The work of building
the mechanical! parts Of the electric
locomotives.
Baldwin does not, like the American
Locomotive Company, issue a semi-an-
nual statement Mr.. Vauclain, how
ever, said that the company's cash po-
stion was good, but that it had NOT
attempted to take out Of the business
more than the normal conservative
cash requirements and The Tribune's
correspondent got the impression that
whereas the recently issued balance
sheet as of June 80, 1921, for the Amer
lean Locomotive Company showed the
American Company with current assets
largely in the form of cash, the Bald
win balance sheet if one were published
to-day, would show a considerably
larger proportion Of materials and sup
plies and working assets other than
cash.
Mr.. Vauelain drew q vivid picture of
the immediate effects that he believes
will follow the payment of $500 600, 600
cash to the railroads. He said that
railroad officers desks were piled to-
day with vouchers ready to be signed
and mediately mailed upon the an
nouncement that the United States
Treasury would turn over this $500, 900
New-York tribune., 1921-08-28

900 cash which the government owes
the corporations.
we talk about this being a move to
help the railroads." said Mr.. Vauclain:
"the real benefactor and final denos;-
tory Of this cash will be the laboring
man. This cash will not stop with the
raliroads-it will be passed on and on
and on and on until it reaches the men
who are now out of lob. The $500
100000 released now in this way is the
equivalent of $5,0O0,0O0,0oO In curren-
cy.'
Mr. Vauclain did not think that the
cash payment to the railroads would
necessarily or even most likely mean
the ordering Of new locomotives. He
pointed out that there were a LARGE
number of locom olives which were now
stored by the railroads, because they
we're not needed to move the present
small volume Of traffic. With the COM
paratively few railroads that are in
satisfactory financial condition the
stored locom olives had been repaired
before they were laid up; with most
roads such policy was considered in
oxpedient, Notwithstanding the fact
that under normal conditions it is con-
sidered better practice to repair equip
ment before putting 1t in storage. Only
an increase in traffic would be likely,
in Mr.. Vauclain's opinion, to bring
forth railroad buying orders for equip
ment on any large scale. It may be
recalled that this was borne out by the
policy of the Pennsylvania Railroad as
explained by General W. W. Atterbury
in an interview with newspaper men on
Friday.
What will happen, Mr.. vauclain
thinks, is that the more forehanded of
the railroads will make the needed re-
pairs to locomotives that they now have
in storage and that this in itself will
be Of considerable benefit to Baldwin
and to industry generally. 1t will mean
the movement Of supplies, larger scale
employment of labor, which in turn
will mean better retail business, a re-
newal of buying orders to wholesale
houses, an increase of freight traffic,
and thus in widening circles will create
a situation which will necessitate the
purchase Of more railroad equipment.
New-York tribune., 1921-08-28

that California. stretching a. It does
down nearly three-fourths OF tn. ~
enc seaboard Of continental United
states, certainly can we'll support two
great industrial centers-centers that
should not be rivals but should con-
stltute copartnership in the develop-
ment, not only of California. but also
of the entire West.
Through the aQueduct we have water
to take care of city of $500 900 neo-
pie and can increase our supply when
ever necessary through additions to
our aqueduct system
IN ten short years we have increased
our water consumption from 14.6OO.-
oVo,oUO gallons to 1855 100000 gallons
IN the city alone, and now have 219,-
ooo water services in operation as
against $1,000 in 1910.
1t is upon the abundance and tho
cneapness Of our water, as supnlied
both to the householder and to indus
try, that Los Angeles owes much of
her prosperity and her ability to grow.
"A comparison Of water rates between
Los Angeles and San Francisco shows
that whereas the householder of the
Bay City pays basic price of "a cents
per 100 cubic feet, plus meter charge
OF at least G5 cents a month, the An
geleno furnishes his home with water
at basic price Of only 10 cents per 100
cubic feet, and without any service
charge whatsoever. All that is re-
qulred of him is that he pay a nominal
minimum bill Of 75c month, and this
minimum bill must not be confused in
any way with service charges.
Use Of Gas Gains
Less than ten years ago, when Balch
and kerckhof built their Midway pipe
line to furnish natural gas to the city,
their total capacity was less than 23.-
100000 cubic feet day
This supply of natural gas is of in
estimable value to industrial Los
Angeles. Sold on a sliding scale on a
basic rate of 78 cents. the average
householder pays approximately 72
cents for his gas, but due to the fall
of prices as the block of consumption
increases the average industry in and
around Los Angeles pays only approxi-
mately 80 cents thousand cubic feet.
1t is not even necessary to discuss
the advantage which Southern Califor-
MIA enjoys as the dominating oil pro-
ducng center of the West.
In 1910 there were only 10000 tele-
phones in Los Angeles, and to-day that
number has jumped to $4,000, with
held orders for 5000 more
In the San Francisco Bay district
the port to Los Angeles is considered
more or less of a joke, but it is ex-
tremely doubtful how long that idea
will be maintained, for there is every
indication that what happened at Ash
tabula on the Great Lakes, where a
hand made harbor was dug from the
clay banks will take place in the dis
trict surrounding the present Los
Angeles harbor, with the result that
this city in the future may have even
a more compact and more efficient har-
Dor. because it must be built to order,
than it would have if we had the
natural benefits of San Francisco Bay
with which to start
New-York tribune., 1921-08-28

Federal Rubber, affiliated with the Fisk
Rubber Company, had 1880 900 in
ventorles, an increase Of 1868 600 over
December 81
Fisk Rubber
Fisk Rubber succeeded to some ex-
tent in getting rid of accumulated over
production, but on June 80 inventories
still stood at high figure, s14, 1895. 900.
decrease, as compared with Decem-
Der 81, Of only S6.802 600 The expert
ence Of the Virginia Carolina Chemical
engaged in the fertilizer business. and
the Encicott Johnson, one Of the l2rp-
est manufacturers Of hoes in the world
IS s-rikingly similar. Virginia Caro-
lima Che micals Inventories en- June 30.
1921, were s15,534,000, A reduction Of
s5,555 600 from December 81 figures.
and Endicott Johnson were Sl6.457 600
a decrease of S1.623 600
While these figures and comparisons
are disappointing there is this much
encouragement 20 be had. If the banks
were able to carry these companies
through the past six months they will
presumably be able to carry them until
return Of business activity and buy
eTs' demand permits the complete liqui-
dation Of the remaining carryover of
material produced during the latter
period OF the war strain.
The pressing question which faced
the boards OF directors of these com
panies in December, 1920, was the need
to meet the demands Of the bank that
were pursuing policy Of contraction
in loans. The method of meeting this
problem varied as between individual
companies without regard to any great
extent to the industry in which the
company was engaged.
The rginia-Carolina Chemical re-
port was for the full year ended Msr
a. 1921. In this case both bape
financing and the sale Of securities was
resorted to. A total of sl2.2bo. .ooo al
oooenture' were put out anc the COM
pany increased its bills payable from,
So 2,5o7 900 to $27,422. 900. The Fl. n
Franklin was accommodated by the
banks and increased its bank loans
payable between December 81. 1890
and June 80 1921. by s4.5f0, 900. Ths
Continued On page ssvaa)
New-York tribune., 1921-08-28
The New Revenue Act
= Communication

Financial i4.itor
Sir: On the front page Of The Trib-
ure Of date August l6, 1921, you
printed synrpsis of the terms of
The new revenue act Of 1921. At the
end Of this synopsis it was stated that
the new revenue act would allow in
dividunls to apply. the loss sustained
in one year against the profits OF the
following year before arriving at a
net taxable income. The inference was
that this did not apply to corporations,
but from other reports made public
around the same date the matter was
left in doubt
He accordingly sent a telegram to
Joseph W. Fordney, chairman of the
Ways and Means Committee, on August
49, and nre to-day in receipt of a letter
from him, stating that this net loss
rrovison applies to corporations rs
we'll ns individuals. Several Of our
clients. after having read your article,
inquired Of Us the reason that corpora
tions were not put in the same cate
CORY us individuals.
JOHN II. KOCH & co.
New-York tribune., 1921-08-28
German Mills Running
To Meet Competition
Will Be First of War-Ridden Nations to
Emerge From Chaos, in Opinion
of William M. Wood

ERMANY operating her mills and factories twentyfour
hours underselng British
conditions
and business widely the future industrial
ch that the themselves
authority business William NJ Wood of
American Wooen Company,
trip that will
both
Germany
to regain their lost gain
New-York tribune., 1921-08-28
Cotton Deterioration in August
Traders Preparing for Serious Curtailment of
Prospective Crop in Government
Figures Thursday

TINE
August the
be made public Thursday Apprehension
Will
the Southwest the sharp futures
ne local which brought
that the would be the smallest many years
New-York tribune., 1921-08-28
Market at Bottom.

The Commercial Shearne and
@tamping Company has issued the fol
owing statement to its consumers :
"The market, we believe. has touched
bottom. September sales will be on
a much higher level. Pig iron has al
ready advanced in price. Our advice
TO our customers is to buy your en-
tire fall and winter requirements at
once
Production of steel is at a low
level at the greot Homestead and
Steel Company this week ard many
are of the opinion that the resent
dcprc sson in the iron and steel in
dustry viii continue for some time to
come. Only Few mills, and small
number Of open-ncarth furnaces are
in operation in the big plants. while
the mer are still working from one to
three days a week The Howard Axle
Works is closed down this week, also
number Of plate mills that were
operating last week
An indication that business is pick
ing up in westctn Pennsylvania is the
resumption Of ten OF the hot mills Of
the American Sheet ard Tnplatc Com
pany at It's Farrell. Pa. works. The
company Will start mills twenty
y o'clock and shout 800 men will re-
turn to work. Tho whole plant has
been closed since June lG. The finish
ing departments vii! stnrt within %
short time. This will mean n big labor
turnover and decrease the number Of
unemployed ia large extent 1t ia
said that prospects are good for steady
operation Of the mills. but no intima-
ton is given as to when other mills
New-York tribune., 1921-08-28
Los angeles Wants To Be
Taken More Seriously
Advertisement Over Long Period as Resort
Makes Outsiders Fail to Realize Her In
dt1strial Possibilities, Native Banker Contends
By Charles F. Stern

Formerly State Superintendent of Banks of California
OR
winter there
movement this resort we'll
lhese movements excellent they
ana "at those
ern California people United States that
e very climatic conditions which pavground also
permit OF complete working year Our traffic
is not blocked summer production is NOT b m
the killing of the Middle West -
New-York tribune., 1921-08-28
Government Estimates

The first crop estimates by the gov
o-nrent for the season call for g.
422 900 bales, which is barely half the
total grown in the crop year of 1914,
and compares with 1885, 754 bales dur
lng the last year. Apprehension Is cx-
rscsssd by tbs urers of fin" staple cot
ton lest the acreage in long staples
may 1~oyc snc!equa.o, it being evident
1ror. :-.a ag:res of the large carry
OYER for the season that the percentage
Of long staple cotton will be very small.
II is certain that the great bulk OF the
carry-ovcr Is made up Of the shorter
New-York tribune., 1921-08-28
Reduced Inventories Are Shown
Industrial Companies Semi-Annual Statements In
dicate Progress in Defation, Though
Many Are Poor

BOUT dozen of the industrial
~ public
months period of intense industrial
ali lines of industry and
pected The chief these
therefore the which
Swollen characteristic
sheets of December 81 1920 these swollen
things banking
S q
New-York tribune., 1921-08-28
Railroad Relief Bill
To Pass, Says Vauclain
Washington Administration Sees Neces.
sity OF Putting Cash to Work to End
Unemployment, He Says

PHILADELPHIA, August ~
fl~ HE Harding bill to authorize tho
ment OF S5o0o0o00 railroads in cash hond
the Senate reconvene late Sen+enhor
Samuel Naucsln president OF the ran
Of The Tribune Vauan said that be fo,+
the Administration recognized the immediate
putting this cash deadlock which s on f
New-York tribune., 1921-08-28
Rise i'm Cotton
Prices Is Felt
InNewBedford
Tone Strongest in Several
Months, Indicating, 1t Is
Believed, Rapid Recovery
From Long Depression
Look for Gain in Activity


NEW BEDFORD, Aug. 27.- The
Strengthening tone Of Industrial condi-
tons IN the cotton industry OF this sec
ton, which has been the prevailing
trend for several months assumed the
largest proportions during the week of
any single week within the period. This
was reflected more, however, in an ad
vanclng market than in great increase
IN activity and transactions.
In the manufacturing centers, condi-
tlons were governed more especially by
the marked advance in the cotton mar
ket, with the result that transactions
were following in the wake of that
market. There was nothing like the
purchases of cotton by the mAnufac-
turers that ordinarily go with an ad-
vancing market. This is attributed bv
brokers to the rapid advance at a time
when such proportionate advance
cannot be obtained SO suddenly in the
finished goods in fact, the sales to
manufacturers are said to be below
normal, presenting a situation where
they will have to get their bearings
before again entering the market to
any great extent.