davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-05-15
Imports of German
Rock Salt Menace.
Say u. S. Producers
Seek to Prove Big Surplus Was
Created Abroad by War: De-
nial of Ruinous Competition

German rock salt believed by Amer
lean rock salt producers to have been
mined during the war by eenscript
labor, IS now coming into this country
tseaboard points, at a price about
equal to the cost OF transporting rock
salt from New York State mines to
Boston, New York, Philadelphia. BaIti-
more and Norfolk. The American rock
salt mining companies are TRYING to-
establish proof that the salt was mined
in Germany during the war for the
purpose Of making chlorine gas for.
chemical warfare, and that the present.
dumping is a result of huge surpluses
piled up in Germany during the con
filct. To this end an agent of one of
the leading American salt firms is now
IN Europe conducting an investigation.
Importers OF German salt scofF at
the surplus idea, and assert that i'm
portatlons of German salt amount to
about l per cent OF the salt produced
here. Selling agents for one leading
American salt company say that two
thousand tons OF the German salt were
landed at Philadelphia last month, aud
that they have been approached by nj
least tltirty-five brokers Offering un-
limited quantities Of German salt
Imports of salt from all countries
last year totaled about 10000 tons, ac-
cording TO The Oil, Paint and Drug Re
porter, while exports of American salt
were 10000 tons. Ii seems fairly
well established that Germany did not
export salt TO this country before the
war.
The American salf manufacturers
say that one importing firm offered the
German salt under the narle of Danish
salt in this market. Az inquiry made
to- the Danish Ambassador met with
the reply that no Danish salt was be-.
ing sent here. The firm in question
then asserted that one Of it's statesmen
thad facetiously referred 70 the salt
as OF Danish origin.
The first German salt came here
about a year ago when the railroad tie
m created shortage of salt III this
district. At that time the German
pl2ce was around SAT 2 tpG. i il said.
but is now bein@ ofseved ~ about SIS to
s6 ton, price about equal to Amer
can prices ar Retsof AND Hslite, n.
where mines are located Tc the nline
price is added freight charges of ss.ts
ton 10 Boston, $5.f5 ton to New
York, S5,15 to Baltimore, and 1921 60
Norfolk. The German tons contained
2204 pounds, against the American
tons OF 1900 pounds
The salt importers declare that Ger
man salt prices are advancing in SYM
pathy with exchange, German prices be
ing based OIL the pound sterling. The
advance, they say, has been fully 10 pcr
cent nthe last month. The importers
also assert that they cannot enter inta
competition with American producers II
the salt must be handled 70 any great
extent, and that 1t can be sold only 10
firms which have warehouses st tne
docks. as labor charges in transferring
the salt 70 cars or trucks bring ts nrice
above that Of the American salt.
New-York tribune., 1921-05-15
Quincy Mining Shows
Deficit of $3.50. TAI

The statement of the Quincy Mining
Company, issued yesterday, for the
year ended December 81, showed a
deficit, after charges and taxes. OF
s530,T4f, compared TO net income OF
s416,5s7. equal to s3.78 a share, earned
ON the 10000 shares of capital stock
in the preceding year. Mining loss
totaIed $21s,4S6 and profit and loss sur
plus $1,S73,265, against s2,5'o,006.
In. his remarks to stockholders, Will
lam r. Todd, president, said in part:
This is the first time in more ham
fifty years that the company has found
it impossible SO produce copper at q
profit. During the last two months
cost of production has been reduced
to about i4ta cents pound. At pres
ent the mine is working four days a
week, with an output about so per cent
of normal Underground conditions at
the mine continues good.
New-York tribune., 1921-05-15
Buying Is SIoic

In other directions steel buying IS on
a hand to-mouth character, consumers
apparently believing that lower prices
may follow in the wake of possible
wage and freight reductions. Makers
OF full-fnished sheets, who supply au-
requirements state that motor car
manufacturers are not allowing them
selves to become stocked with mate
rial Producers say that comparative
little tonnage has been awarded for
June delivery, which indicated the close
allowances on which the auto industry
is working.
In so far as new business is con-
cerned the sheet market is unusually
quiet, and it is stated that few mills
would be operating if they were de-
pending upon the volume of going
business. Most of the mills which are
active at this time are scheduled with
business taken few weeks ago prior
car be determined there has ceen little
shading of prices in spite of The exist
ing dullness. Mills are still quoting
3.10c on blue annealed, DC on black
and SC on galvanized,
The prce of $500 on Nos, 26, - and
2S age black sheets, disclosed at the
bimonthly examination OF sales sheets
to determine the tonnage rate for sheet
mill workers. indicate that much busi-
ness was accented at the concession
prices which uniformly prevailed a
month ago. Wages of sheet mill opera
tives for May and June, based on the
selling price Of shipments during the
preceding sixty days. will be approx
mateiy % per cent below the peak wage
paid such workers in 1920.
From present indications the second
quarter of 1921 will produce heavy
losses for number of independent iron
and steel producers which were near
the borderline on the first quarter.h
Profits in the last quarter were at
tributed by number OF Independent
interests to carry-over business from
1920, March operations being main
tanned at a loss in some cases.
Liquidation of costs is still going On,
and no effort is being spared to insti-
tute economics wherever possible.
1t is believed that the Brier Hill
Steel Company will omit the dividend
on common stock for the second quar-
ter, owing to unfavorable business.
When the first quarter payment was aa-
thorized directors stated that it was
declared out of surplus and that unless
earnings warranted it would not be
continued.
Both the Youngstown Sheet and Tube
and the Tgumbull Steel Company are
expected to. reduce their dividend rates
for the second quarter, payable July J.,
New-York tribune., 1921-05-15
Gergnany's Capacity

When attempting to decide on the
peak of German raw cotton require
ments in the future a number OF radi-
cally changed conditions must be borne
in mind. A few OF the more important
of these are: Impaired efficiency OF
plant, through default in upkeep; a
loss in output, due to reduced working
hours of about Is per cent; and, most
serious of all, the loss TO Germany and
gain by France of the cotton mills of
AlsGce-L Lorraine. This amounts to one
fifth or one-siXth of Germany's total.
OF the cotton spindles operating bsfore
the war 1.176,000 and Of the looms
4o,200 were in this region, since eeded
to France. AS the consumption Of cot
ton by German mills during the last
full year before the war averaged 152
bales per thousand spindles decrease
of 178, 750 bales year in Germany's
cotton takings is indicated, even when
her factories are repaired and in full
work again. Of the 100000 spindles
remaining in the country 2,75o,00o
were stopped during the half year
ended January 81 last. This is equal to
the stoppage OF the entire industry
during To weeks of forty eight hours.
There is also to be considered the
restoration Of the devastated textile
factories of France and the effect this
WIZ ltcfS Oii GcItii&i IGEuN6EN. hDQW-
ing definitely now that this is one of
her unavoidable penalties. prevailing
opinion in Europe is that full restors-
ton of the 100000 spindles and
10000 looms will be accomplished by
the end of the current year. What the
money damage amounts to is estimated
by the French War Losses Department,
at prewar rates. as 540.000.000 francs
in goods and 93,000,000 francs to plant.
Authorities appear to agree that be-
fore the final agreement on terms of
restoration the German mills were on-
Grating at so per cent OF their previous
capacity and that the organization OF
sales campaign abroad was, despite
the difficulties attending such a task,
matter of the first Importance. Mean
while such unusual expedients are
being resorted to as "the Improvement
trade" often called refining" or s.fn-
ishing credits" form of trading by
which goods are placed in trust with
the manufacturer to be worked up, pay
ment being made by u a fixed re-
enumeration by the owner of the goods
or (2l the manufacturer retaining part
of the goods for his own account or (3}
the manufacturer paying from proceeds
Of the sale of finished goods
New-York tribune., 1921-05-15
Receiver Named

( CALGARY. Alta, May 14.-H. F. Me-
Anoasid, OF this city, to-day was named
i ,ffseslver for the Noble Foundation.
= a'cr the largest farming corporation
=. Western Canada. Among its
sseealtors are the Merchants Bank of
NNsaada, Bankers' Trust Company, of
sW FORK. and Henry Carstens, Of
assatSle, Wash. Liabilities and as
asss wer rot made public, but it
ss as said unoaicially that Mr. Car
ssshs ss claims alone amounted TO ;:p-
FfoASEla telv S5g10 0nn
New-York tribune., 1921-05-15

New England ludustrlal4y Is unit
separate and distinct from the rest of
the country, and likewise it's railroads
are a unit with problems differing
materially from those of other East
ern railroads Most of the Eastern
railroads have failed to earn per
cent on the valuation which the Inter
state Commerce Commission has as
signed to them, and the New England
railroads are falling far behind even
the other Eastern lines.
1t has been proposed that rates with
in New England and rates to and from
points in New England from and to
points in trunk line territory should
be increased, and that the total in
crease should go to the New England
roads without participation on through
rates by the trunk line roads. This
the shippers of New England refused
to consider.
New England competes industrially
with other manufacturing centers.
Thus or cotton goods the New England
mills compete with the North Carolina
cotton mills in the markets at New
York, Chicago, Cleveland and Cincin-
natl An increased freight rate from,
New England without a corresponding
change in the rate from Southern cot
ton mills would, the New England
manufacturers assert, put them out of
the running in competing markets.
New England shoe manufacturers COM
pete in Chicago. Cleveland, etc, with
the st. Louis shoe manufacturers. Here
again an increase in freight rates from
New England, without corresponding
increase from st. Louis, would put
the New England shoe manufacturers
at a disadvantage. New England is at
disadvantage with most other manu-
featuring centers already, in that her
coal is more expensive than Inao of
other manufacturing eenters. To add
a further disadvantage would be dis
astrous to all New England industry,
the shippers maintain.
New-York tribune., 1921-05-15

ne pflnSApal pEoplemS or excess
profits taxation were we'll canvassed
befsre the revenue act of 1918 was
passed. Its principal defects and abb
normalities were anticipated. particu-
larly in the revenue act of 1918 rs it
first passed the Senate. The abnormal
or exceptional cases were classified in
Section 327 of the Senate draft and
authority granted to cure them by ref
erence to the experience or treatment
of representative concerns. In con-
ference the detailed enumeration of
cases as found in the Senate bill was
omitted and abstract language intro
duced, which, however, it was def
nitely agreed, should be interpreted to
cover the classes Of cases specified in
the Senate bill.
Section 327 mas not proved conspicu-
ously successful: Professor Haig and
Mr.. Holmes, while praising the plan by
which administrative action is taken
without public explanation under the
British law, criticize it under the
American law. The British board of
referees does not announce the basis
upon which it rests it's decision" and
its decisions are hailed with acclaim
The principal relief sections of the
American law also "sre administered
by star chamber proceedings" But the
remedy that affords satisfaction in
Great Britain srouses criticism in the
United States. "lt is natural for him
(the taXpayel0 to assume, therefore,
that the power TO assess him is arb-
trary, practically unchecked and wholly
contrary TO our American principles of
taxation. Nor is his criticism entirely
without foundation
Here is the essence OF the prob
lem. Wide administrative discre-
tion is not suited to the American
habit and tradition in matters of tax
alton. 1t is not granted ungrudgingly
to the administrative authorities by
Congress, and it is not exercised freely
and boldly by the administrative
authorities when it is granted. We are
too legalistic successfully to reconcile
in the same statute yes and no. Con-
gress cannot lay down the principle
of original investment in Section 326
check the principal loopholes Of escape
in Section 331, announce that the prin-
ciple is adopted as principle, and
then expect successfully to reduce its
rigors by inserting an abstract relief
provision calling for free exercise OF
administrative discretion
New-York tribune., 1921-05-15


age annual takings during the FIVE
years 1so9-fs13 were I,22s,000 bales,
whereas in the twelve months of last
year she took but 355,s77 bales. Re-
covery is indicated by later official
Masters Federation returns, which
give the consumption of cotton Of all
kinds for the six months ended Janu-
airy 81 as $4,000 actual bales. And
as Germanys progress will doubtless
be reflected in Czecho-Slevakia, it
may be noted that the consumption of
the factories in that territory during
the first period was 532, 900 bales, while
for last year they had dropped to
$3.50 bales
A clearer idea of the relative posi-
tion Of the two countries in the world
of cotton may be obtained by saying
that before the war (1914) Germany
operated 6S4 per cent of the total num-
Der of spindles in the factories of the
world and used 81 per cent of the
total commercial cotton production of
the world. Aus ia had 3A per cent
of the spindles and consumed S24 per
cent of the cotton.
Another consideration of fully re-
stored German cotton industry is that
her annual average exports of piece
sooOS III The p6E1OQ lS4U-IJIG were
S8,000,0o0 pounds, or 1871 per cent
of the total production of her mills,
while over the same period Austria
exported 27,000,000 pounds of piece
goods, being 10 per cent Of her total
production
am emphasizing the statistics of
manufacturing because in the steadily
increasing share which cotton and its
products form of the worlds require
ments, the latter have been rather
neglected, while the figures dealing
with the raw material have received
full measure of attention. In the
three years 19o9-191a German exports
Of cotton manufactures increased S32;-
zoe, compared with an increase OF
only S13,000,000 for the United States.
Then, too, there is the international
trade in cotton yarns, the Importance
o. which, though often overlooked, may
be gauged by the fact that in 1913
the quantity reached q total of 75o,-
o00,o00 pounds, 350.000,0 900 of which
went to China. Germany was a con-
siderable importer of yarn, much of
which was dyed turkey red and re
exported either in it's original form or
after being woven into cloth in the
mills of the country. America bought
not little eof the specially treated
yarns from Germany, such as blue
blacks for hat bands, mixed cotton and
silk for silk hosiery and heel and toe
work, as we'll as the so-called iron
yarn, which resembles horse hair and
is used for upholstering.
New-York tribune., 1921-05-15
Remedy for Excess Profits
Tax is Repeal, Says adams
Ehort TO Perfect Present Legislation Would Be
Futile, 1ale Economist Insists, Saying Re-
lection i'm England Supports His View
BY Thomas S. Adams
Professor OF Political Economy, Yale U,stuersit


practical
TAX Perhaps IN time after much further reflection
Inc pclpa remedy ordinarily prescribed
atve discretion Professor r. M. Hag
ms wise and admirable the taxation profits
Great
ton IS responsible for the superiority of the
con- But TINS remedy will the British repeated
promises the British the
moment taken
discretion cannot the American present
New-York tribune., 1921-05-15
Reparation a Spur
To Export Of Cotton
Agreement Opens Way for Resump-
tion OF Shipment Of Raw Produet Tor
Manufacture i'm Germany, Ii is Fell
By William Whittarn

Former Special Agent Department Of Commerce
LAST to the terms OF indemnity imposed
Both and people
build foreign commerce WITHOUT
ncealment Textiles formed important IN the
of the chief OF these s
political much
will gradually position
of American and other growths of cotton
New-York tribune., 1921-05-15
Second Proposal

A second proposal was made by the
New England roads through E. J. Pear
son, president of the New York, New
Haven & Hartford From the trans
portation act the Interstate Commerce
Commission derives authority to fix
the division of through rates among
different railroads participating in
through freight business. The New
England roads appealed 30 the commis-
sion to give them larger divisions of
New-York tribune., 1921-05-15

remained vested in the foreign finsn-
ciers who finarcied It's export until the
finished product was sold and payn1 mt
made to them through the Ditag-
SpindIes Only Limit
In sum, the amount Of cotton the
world will use in the next few years
viii be limited only by the quantity
the mills Of the world can spin. Il is
temporarily restricted by destroyed
and impaired factory equipment and
permanently by the world wide turs
to shorter working hours. The Ger
man authorities would seem to be de-
termined to get their factories In fail
operation as soon Is possible, seeing
Chat they are eonfining textile inl-
portations almost wholly to raw ma
terials, except for certain special Eng
lish spun yarns. This Will help our
raw cotton situation, although it is 10
be noted that German interests are
pushing cotton growing III Argentina.
1t will also reduce idleness in Ger
many, at the same time increasing the
purchasing power of the German peo-
pie.
In all our efforts to move raw ma
tsrials to the factories it seems to
have been overlooked that they cannot
keacn thelr maj destinaIlon, the uktI-
mate consumer, until productive en
ployment furnishes him with the
money to buy. German industrial
leaders appear to be working from
this, the only point from which
start to prosperous finish can be
made.
Charles NJ. Schwab being admitted
~ competent Judge of industrial
conditions, gave this verdict OF his re-
turn from Germany q short time ago.
Germany has gone back to work a<
has no other nation in Europe. Her
working people are econonaizins.
sacrificing and throwing themselves
into real production"
And the German cotton industry was
included in that finding.
New-York tribune., 1921-05-15
New England Roads Fate?
Strenuous Efforts Being Made to Save Lines From
Bankruptcy; Sectional Problems
Prove Handicap
E@dE New England railroads are on the verge

NdE England bankruptcy. The
Haven Hartford the first three months of
1921 failed taxes than three and
million dollars; the Maine about three million dollars
independent
railroad than million and q quarter.
New-York tribune., 1921-05-15
Costs at Loau LereI

One of the leading steel manufactur-
ers of the Mahoning Valley says that
the cut in production costs, by the
adoption Of many economies, has about
reached it's limit. Reductions in freight
rates and generally lower manufactur-
ing costs must be realized, if prices on
certain commodities are not to advance,
it is said.
The principal obstacle to a better
tone in business generally and to the
steel industry in particular is the rail-
road situation. say local mapufactur-
ers. Though the railroads arc normal
ly the largest single consumers of
steel products, they are taking com
paratiyely little output at this time.
It is not believed an Improvement will
be effected in this situation until the
rate problem is solved
The Youngstown Steel Car Com
pany at Niles is completely suspended
because of lack Of car business from
the carriers. Many other steel-con-
suming lines are also effected. Ger
nany's acceptance of the Allied terms
is expected to stimulate trade in gen
eral, which may have corresponding
beneficial effect on the steel industry,
The Youngstown Sheet and Tube
Company reports that one of the fea-
lures of the current buying is the
more critical attitude on the part OF
consumers, who are not only insisting
on low prices, but on quality as we'll.
For the time being it appears that the
demand for sheet and strip has passed
+h prost
New-York tribune., 1921-05-15
POmer to Prosecute

!, me act further provides that when
Ine Attorney General believes that the
ev!aenee indicates a fraudulent under
taxing, he may bring action against
ehe person or firm under investigation.
II will be noted that the new law
makes possible investigation of ''wash
safes OF securities, bucketing of .or-
gers and other practices frowned upon
Dy the authorities. Charges have been
laaoe IN various quarters that large
part OF the transactions reported to
nave taken place daily on the New
iotK curb market are fictitious and
aepresent padding and wash sales"
"a =. ehort was made in the last legisla-
I'VE session TO have an investigation
= p questionable Wall Street practices,
put resolution introduced seeking
saen probe went into committee and
never Ne came out again.
.he booming speculative markets of
ao4s, when the whole country seemed
De carried away with the fever of
stock gambling, saw the foisting upon
ne public of several hundreds of mill
nohs OF dollars in worthless and near
hortniess stocks. Some of them en-
eyed market for time, and then
PASSED from public view. Others never
rag any market whatsoever. Thousands
q q folk traded good-as-gold United
asates Liberty bonds foh stocks on
snieh they were promised so to 100
ssf cent profits overnight. When the
sgesaiafive craze subsidized it lett the
guoiie suffering with a bad headache
sad hat, ketbook. The lesson was
ssSarned by many, but the need of fur
s.er safeguards against fraudulent
Pt2aaotlons Is still imperative.
New-York tribune., 1921-05-15
Wage Stability
I'm Other. Lines
Sought i'm Steel
Little Progress Can Be Made
Until the Railroads and
building Trades Are
Ready to Buy, Is View
Face Losses for Quarter
Much Interest i'm Coming
Dividend Actions; Auto
Buying Is Falling OFF
speetal pispatck 70 The Tr-ib,sate

PITTSBURGH, May i4.-No marked
Improvement in the steel industry has
occurred since the readjustment of
wages and prices to nearly common
level. This is attributed to the fact
that other lines of industry which con-
sumo large quantities of steel have not
yet reached the calm levels which now
characterize the steel industry Lead
ing manufacturers here believe that
until the wage questions are settled by
the railroads and the building trades
there can be no marked improvement
in steel production
The automobile industry, which
seemed to be about ready to start up
again with something of flourish, is
low looked upon here as an uncertain
market, owing to the fact that several
makers have announced material re-
ductions in prices, which have resulted
motor car buyers holding off in antici-
patton of price slashing. The sutomo-
bile industry is buying steel in small
quantities and not stocking Slp. The
railroads are not buying at all, except
for absolute necessities, and the build
ing trades are equally inactive, barring
momentary and seasonal briskness in
the demand for nails.
Indications point to temporary
slowing up at least in the iron and
steel industry. The average of opera
tions this week is around 35 per cent,
as compared with DO per cent the week
before. The sheet division of the in
dustry is running at 81 per cent, which
compares with rate of so per cent
last week. For the time being, manu-
facturers say, the material expansion
in buying is not bright. Shipments of
.1,s, Is lo~ t,,r dan
terests are averaging less than one
fhiy dnf normal
New-York tribune., 1921-05-15

THE foregoing is an excerpt from AZ,
article i1 mhich Professor Adaass dis
caasea the sghole question OF the s1csss
profits tar, including tie Theoretical
basis for the ta1 cna his rsasoas arhy 1t
Should be repealed Financial Editor