davidaulloa/AmericanStories huggingface dataset:
The New York herald., 1921-03-14

creased its capital stock, must vet
borrow millions every month at Z per
cent, to finance its normal business
And the business mems party (Volks-
parteD is making war on the tax
policy of Erzberger (adhered 10 in
the main by his successor, DR.. Wirth)
because of its effect In Gripping cor
porations in their effort to provide
reserves. They condemn the present
policy as demagogic, say 1t was for
mulated to satisfy labor and that In
stead Of shifting the tax burden from
the poor to the wealthy 1t gradually is
throttling industry and aiding no one.
The outlook for industry Is held to
be by no means certain. Last year
and this most companies followed the
plan of the thirteen corporations al
ready referred to and declared divi-
dends instead of taking due account
Of depreciation. In other words, they
pocketed this year The actual cost for
one year Of their machinery. And
this was a temptation because Of the
tax situation, but no less so because
of the high, almost exorbitant, cost Of
machinery.
The question Of requirements pre-
sents an unpleasant puzzle. The re-
placement funds accumulated in 1918
were practically annulled by the fall
Of the mark. A machine costing 100,-
900 marks before the end OF the war
and already written off four-tifths
may cost to-day 100000 or even
100000 marks. and the 10000 laid
aside for its replacement would hard
ly pay for the oil TO keep il lubrl-
Gated
The New York herald., 1921-03-14
GERMANS POURING INTO
SILESIA FOR PLEBISCITE
Naturalized Americans, Enti-
tied to Vote, ArriUe.
Bp ne Associated Press.

BERLIN, March 12.-Special dispatches
from the Upper silesian plebiscite zones
continue to reflect optimism with re-
spect to the outcome Of the balloting
which will take place week hence. All
German parties are determined to en-
deavor to save the wealthy industrial
sector to Germany. A pilgrimage Of
eligible voters from all corners in Ger
many to Upper Silesla now is in full
motion. Special trains are being run
everywhere.
The advance speculation predicts a
certain German victory III all the i'm
portant cities and towns. Oppeln, Loeb
schuetz. Ratibor. Krusburg and Rosen-
burg are expected to roll up majorities
Of at least 80 per cent in favor of the
Germans. GlelwitZ, kattowit2. Kosel
Koenigshuette are also considered safe.
The public officials who will be on duty
March 20 will be allowed to cast their
votes in the plebiscite tomorrow. This
includes the railway. postal and tele-
grarh workers.
Each voter is to receive two ballots
one printed in German and the other in
Polish. The ballot n person rejects
must be torn lip and deposited with the
valid one In the ballot box.
Eight naturallzed Americans who
were born In Upper Silesia and are en-
titled to vote in the pIebisoite passed
through Berlin to-day. Among them
was an old couple from Milwaukee, the
man S4 years old and the woman in her
70s. The other Americans who came
from California, include a widower ca
years old. who. in addition to casting
his ballot is TO marry a German war
widow. the daughter Of ar old time
friend The widow has several children.
"T have no children Of my own and no
heirs" said the man. 80 / decided to
come back to my old home and vote and
incidentally marry the daughter Of an
old schoolmafe whose husband was killed
IN the war
The New York herald., 1921-03-14
THREAT TO CLOSE
PLANTS ON RHINE
Continued from First Page.

the plea OF the Ruhr valley ever since
the French first proposed the occupa-
ton. There is only one market lett
open and that IS Russia. Germany's
only hopes seem TO lie in her being
thrown with the Bolshevist army by the
greed OF the Allies"
The population plainly is more nervous
to-day than at any time since Gen.
Degouttes troops crossed the bridge and
the allied gunboats appeared on the
Rhine before Ruhrort and Duisburg, but
labor union officials are refusing to
comment on the situation, although ad-
hitting that there are grave possibilities
Of labor disturbances IL the mills are
shut down
Herr Welker, director Of the Phoenix
Rail Mills at Duisburg. has given an In
terview in which he predicts that the
Phoenix mills will shut down next week,
throwing 10000 workers out Of employ
ment without even knowing the de-
tails or the new customs tariff. | am
ready to announce that the Allies are
running us. thereby preventing US from
paying anything at ALL" said Herr We'll
ker. England proposes a tax of 90 per
cent and France is understood to favor
a 80 per cent. levy, both of which are
exorbitant. We will be unable to com
pete with the firms at Dortmund. Essen
and Solingen. which are not in the oc-
cupied region"
Herr Welker closed his interview with
true Prussian bravado, saying, The
Allies think they will down us by mill
tary force. but do not forget that you
are defying the whole of Germany
metallurgical industry
The Belgian consul at Duisburg has
reported to Brussels that the closing OF
the Ruhr industries is inevitable, this
being part Of the German plan to turn
her expectations to Holland to the detri-
ment OF Antwerp and Dunkerque.
Interest is keen as to how the chiefs
OF the Socialist party groups will take
the decision to reduce the working day
to eight hours, the Extremists already
contending that this is part of general
plan evolved in Berlin to limit day
work to five hours during the next week
which with q wholesale reduction Ia
personnel will be a signal for the open
Ing of a series of conflicts between the
owner and workers.
This action II Is held will necessitate
show OF allied force and give Ger
many an opportunity again to protest
against French brutality. Already at
Hamborn where a small detachment Of
Belgian troops Is being held on the out
skirts or the town, the Spartacists at
tempted TO provoke clash, but they
retired when reinforcements in the form
Of a tank and machine guns arrived
from Dusburg.
The New York herald., 1921-03-14
AMERICAN PILOTS MUST
NOT FLY OVER CANADA
Barrier EffectiUe May I Un-
less u. S. Issues Licenses.

According to ar agreement reached at
the recent International Air Conference,
American army, navy and civilian air
pilots will be prohibited from flying
over Canadian territory after May
unless the United States establishes a
bureau to issue licenses and register
pilots.
The convention. it was announced yes
terday by the Manufacturers Aircraft
Association, was subscribed to by all
the Powers. including the United States,
and established the unanimous ruling
that air pilots should be barred from
flight over foreign territory unless
granted license for airworthiness and
responsible operation.
The New York herald., 1921-03-14
Gernany's
Progress
Toward
Pre-War
Activities
ARTICLE NUMBER J

THE NEW YORK HERALD pub
fishes herewith the seventh of its
series Of ten articles portraying
industrial conditions in Germany
to-day. This article emphasizes
that the difference between Ger
many's apparent recovery and its
real condition is the difference
between gold ana paper. The ar
ticle to be published tomorrow
deals with the Stand taken by Or.
Walter Simons. German Foreign
Minister, in the recent repara-
tions conference in London.
The New York herald., 1921-03-14

tanning complete silence as TO It's in
tentions. the suggestions made by Lloyd
George that the American troops collect
their share or German tariffs at the
Coblenz Bridgehead places upon the
United States the necessity of an
eventual decision as g policy
An outgrowth of the situation Is the
prevalent belief IN Washington that any
preliminary negotiations looking to re-
establishment or American relations
with Europe will originate and will be
conducted in Washington.
Before entering into any negotiations
with the Allies, the United States will
want 10 know where il stands. The dis
Butes with the principal allied Powers
over the American reservation as to the
island Of Yap and as to mandate rights
in Mesopotamia and the cable contro-
versy are sim outstanding. Questions
of allied debts to the United States have
undergone Suspicious juggling, while the
application OF an export duty OF IL per
cent. upon German exports is regarded
as an effort to saddle part Of the Ger
iian reparations on this country.
The Government of the United states,
ii has been made clear VIII want d.
rect assurances on these subjects before
Il enters into negotiations OF any char
acter.
1t is recalled here that hope Of con
tinucd alnicable and even more friendly
relations between France and America
were expressed Ia the significant tele-
gram OF congratulations which President
Millerand sent 10 President Harding.
The American President replied BY hop
ing for the same result but with equal
significance added III possible"
As the situation in Europe now stands,
leaders OF American thought and men
high in power regard it with ill con-
cealed concern in its bearing on the
future peace OF the world. They believe
some one must step in and aid In adjust
ing the matterS and are hopeful the
Allied Powers may finally accept the
aot,,ra1ifr,r Y-aa soua flany hplieVp exist.
The New York herald., 1921-03-14
CAPITAL SHIP WILL REMAIN
MAIN UNIT OF BRITISH FLEET
Construction of Four More Shortly Is Predicted in Fore
cast That Places Naval Budget Estimate Ten
Million Pounds Under That of Last Year.

LONDON. March ~ (Monday) The
navy estimates for ls2f-22. to BE- made
public to-day, viii show a reduction Of
some 5000. 900 on the net estimate for
the last financial year, which was
fs4372,3 300, according to a forecast in
the London Times, whose political expert
understands that. following upon the
findings Of the subcommittee OF the
Committee of Imperial Defence, the Gov
ernment has decided in principle that
the capital ship must continue to he the
main unit of an effective fleet.
Outlining the present position, the
correspondent says there are now thirty
eight capital ships. of which eight are
II not obsolete. and adds
that 1t is regarded as uneconomical TO
man such ships with expensive. highly
The New York herald., 1921-03-14

trained personnel consequently these
eight are expected to be scrapped.
Adhering to the policy of the zone
Power standard" enunciated by Walter
Hume Long. the former First Lord OF
the Admiralty. the Government, says
the correspondent, considers that the
remaining thirty capital ships constitute
Tor the present an adequate basis for
the maintenance of the one Power
standard.
But as at least four OF these ships
viii presently need to be replaced" the
forecast continues, "the construction OF
four vessels to take their place will
eventually be necessary"
The correspondent declares that ex-
pert opinion tends strongly to the view
that delay in the construction of the new
'post-Jutland ships" would not be justi-
fled. owing to the necessity of ordering
the material in advance and utilizing the
lessons of the war.
The New York herald., 1921-03-14
ITALIANS EXPECT
ANOTHER CONFERENCE
Italy, France and Britain
Must Be United, Says Sforza.
Ba Nhe Assoelaisd prcss.

LoNpoN. March 13.--Count sforza. the
Italian Foreign Minister, before leaving
London to-day for Rome expressed
qualification that the Reparatlons con-
ference had proved that tile world
realizes the governments of italy. France
and Great Britain must bo united"
What We want above everything
clvr,' said Count Sforza. "ls peace and
certainty that there win De no new
commissions 10 ths end our supreme
aim should Re e complete union be-
tween London. Paris and Rome This 4
regard as an absolute necessity"
other Italians connected with the mis-
zion expressed the opinion that the Ger
mans soon would take some action
which would necessitate u further con-
ference, which probably would be held
IN italy
The New York herald., 1921-03-14
VIENNA PRESS ANGRY
OVER ALLIED DEMANDS
Surrender Of Cattle Declared
to Mean More Deaths.

NIENNh March 49, NenepA pers U6u-
mrrt Indignantly on demands from the
stiied Raparations Commission for the
surrender NJ cattle to Entente Govern
mtnts They quote officials AZ declaring
that tho execution of such an ord or
would mean the deaths or many children
and aged persons. who are able 10 sus-
tain life at present from the small sup
piy Of native milk, supplemented BY
American canned milk.
n n declared the demand was insti-
gated by the Serbian delegates on the
I,eparatious Commission.
The New York herald., 1921-03-14
Vandals Try to Blow Up
Berlin's Victory Shaft

RERLIN, March 13.-An at
tempt to destroy the Victory
Monument in the Koenigsplatz
was frustrated to-day by the po-
lice. The officers discovered a
box containing four pounds OF
dynamite and picrine some dis
tance up the monument and tore
away a lighted fuse leading to
the explosives.
The New York herald., 1921-03-14
Coal Profts Are cited.

Last summer It was calculated that
the coal operators were earning 2
marks (paper) profit on every ton
of bituminous mined. On the produc-
tion of 1920 that would be total
profit Of the entire bituminous indus
try Of 260,000,000 marks, or not much
over S4,000,000. In May, 1920 the
Government refused an increase in
coal prices despite an increase In
wages, so that the operators are now
producing at an actual loss.
Since German industrial capital
represents on the whole actual invest
ment in gold value 1t follows that
shares with gold value have risen as
the mark has fallen. Tabulations of
the higher prices Of German indus
trial stocks are cited to prove the in
creased prosperity OF German indus
try. But they have no other signifi-
canoe than to prove that gold value
shares retain their gold value no mat
ter what the fuctuation Of currency
may be.
The case of the Krupp company is
referred to as typical of German re-
covery. Here supposedly is COM
pany restored to health, as Is to be
deduced from itA net profits this year
of 100000 marks. The company
has 81, ,260 employees, Of whom 1881
are in Essen. or virtually the number
employed in peace time. In 1918 it
devoted 80 per cent of its powers to
war production, and in 1918 employed
over 1877 900 men and women. Yet
now IL has remodelled Its plant and Is
working with a normal staff on peace
products alone.
But here again superficial apuear-
ances may not reveal the entire truth.
The number of employees is nearly as
high as in 1913, but men work net
seven and a half hours to-day as COM
pared with ten and a half hours be-
fore. in consequence of the eight hour
law.
The New York herald., 1921-03-14
German Paper Quoted.

The Deutsche Bergi0erkS ZeituHg,
commenting on the reports of these
same fourteen companies, writes:
Naturally the companies wished to
maintain the payment OF dividends,
since shareholders cannot he expected
entirely to renounce dividends in view
OF the great risk they run and OF the
still uncertain future. II also seemed
inadvisable 10 suspend dividends out
of consideration for the present and
future demands which the industry
win make on the money market.
"rhe choice lay between strength
ening the financial position OF the
various companies and the giving Of
consideration to The shareholders and
the money market The only excep-
ton IL the case Of the Friedrich
Krupp Company, whose shares are en-,
tirely in family possession, the divl-
dend being passed in order 20 devote
the whole Of the profits to the
strengthening Of the undertaking and
for welfare purposes.
"As compared with pre-war times
The increase IN The rates OF dividends
can be regarded as extremely small.
The directors of the I'heinish steel
WORKS Company State that notwith.
standing thc apparently large profits
In comparison with former and pres
cnt money values the results OF trad
mg have not been pnrallelcd even in
the most unfavornblc peace years
This opinion can be applied TO the
The New York herald., 1921-03-14
Estimate by krupps.

Besides, the Krupp directors esti-
mate that the requirements and in
stallations needed to keep the plant
up to date for the next ten years will
cost in round numbers 1,000oO0,000
marks. III view of this estimate 3d.
100000 marks Of this years profits
was put in the special reserve fund,
bringing 1t up TO 45000,000 marks
Twenty million marks was set aside
TO erect workers dwellings, of which
there Is q disastrous shortage every
where. thanks to the five years pause
in building. Another 20.00o,000 was
turned over to support the paternal-
istlc Krupp foundations. The bal
ance brought forward, 4,215000
marks. accounts for the remainder Of
the Krupp profits. All told they had
been worth about 81 100000. or lit
lie more than S13 to each employee.
These calculations Of profits are
made from the published reports Of
these companies. And no outsider can
vouch for the sincerity OF the book
keeping. But these are the same re-
ports from which the astounding re
covery Of German industry is being
deciphered. fI cannot say that these
reports do not pretend poverty
which does not exist vr that at least
they do not exaggerate the poverty.
If German corporations are telling
the whole truth in their annual re-
ports they evincc social morality
not often encountered in a nation now
rather generally devoted TO tax eva
sion.
The complaint OF German Indus
trlallsts is that the present policy Of
the Government to tax reserve FUNDS
ls rulnous. 1t may be that some way
10 iuggle accounts has been devised
80 that reserves can be laid away for
requirements or to provide current
capital without the tax collector find
Ing Il out. If the accounts actually
are being falsified only highly trained
industrial authorities who know each
company thoroughly, more thoroughly
than the Gcrman taN authorities,
could detect " aud 50 prove lat INC
companies were on tile way to nm as.
founding recovery
Need Of capital IL Keen.
Still. German industrialsts them
selves feel keenly the need OF capital
and are at swords points with the
flnanciers over the scarcity and ex-
pcnse Of capital. The General Flee.
trIc Company, which recently has an
The New York herald., 1921-03-14
/ .oos SOLDIERS, BODIES HERE.

The bodies Of 1908 American soldiers
who died in France during the war ar
rived here yesterday on tho transport
Somme from Antwerp. Five hundred
and eighty-seven soldiers, who have
been serving IN the American army on
tho Rhine, returned on The transport
which will dock tomorrow.
The New York herald., 1921-03-14

whole Of the iron and steel industry
In Germany"
The fourteen companies. with their
dividends, are:
The New York herald., 1921-03-14

Herald
Copyright. 1891. by THE NEW York HERALD.
New York Herald Bureau.
Berlin, Feb. rs.
The difference between paper and
gold probably is the difference be-
tween Germany's apparent recovery
and her real situation. High German
dividends are being paid in paper
marks on capitalization which
either remains in gold marks or is a
capitalization somewhat increased.
If industrial capitalization represents
the actual investment made in equip
ment before the war. dividends must
be changed TO gold marks TO become
the rate Of profits the investment
really has earned
Any one who cites German divi-
dends as n proof Of recovery and does
not at the same time distinguish be-
tween gold capital and paper profits
is either superficial or deceitful.
The fourteen largest coal, steel and
iron companies In Germany had in
1920 n total capital OF 992, 100000
marks, an increase from 191S-1o Of
124, 100000 marks, or 1914 per cent.
This capital represented in the main
gold mark investment, and in paper
marks this investment is worth to-
day in round numbers 100000, 900
marks.
These fourteen companies declared
IN 1920 n total dividend of 1872
100000 marks. or 1872 per cent But
ON the real value of the investment
the dividend was 1.3 per cent, or
lower than In their poorest year in
peace times. These companies had
for both reserve and depreciation
charges about 19S,OOO,00O. or about .
per cent. of the value Of their invest
ment Their entire dividends, reserve
and depreciation charges allotted from
their gross receipts we're 330,000.000,
or something less than the cost to
build one modern two shaft mine in
Germany to-day The normal per
cent. rate for depreciation could not
have been booked. even had the diyi-
dends been passed.
The New York herald., 1921-03-14

Atlantic City ralu, sunday and Raster,
city limited will lesw New York ais r. NJ
every week day Mairt1 10 ~ 70 ipci Extra
fraina reiurninR Ask agents for special
irne fables-Adv.
The New York herald., 1921-03-14
ECUADOR EXCHANGE FIXED.

GuAYoUIL, Ecuador, March 13.-'
issued a decree to-day rs.
ing the rate of exchange at $50 sucres
on New York Tho new rate will 90 into
eject after March 16
The New York herald., 1921-03-14

Under normal exchange rates the sucre
q worth about fifty cents.
The New York herald., 1921-03-14
By RAYMOND SWING.

Special Correspondence to THE New YORK
Herald.
Copyright. 1891. by THE NEW York HERALD.
New York Herald Bureau,
arlt. I@ah /
The New York herald., 1921-03-14
Prediction of Results.

Then he goes on:
after a few years along the INES
OF the Paris plan, Germany could only
work up the enormous export surplus
required to pay the Slies by driving
British exports from every competitive
market. France could only get compensa-
ton to q measure and in the way she im-
AGNES by the destruction of British
trade. In a few years capital and labor
alike. aud every element OF public
opinion among us--chiely labor
would combine to sweep the whole
thing. There would be a complete re-
yersal Of our system, Of our home and
foreign policy alike.
"There are two problems Of equal
importance France has suffered
visible devastation of her invaded de-
partments. Britain has suffered and is
suffering equally serious injury through
invisible damage to her means of liveli-
hood as respects world commerce vital
to the millions Of her population who
could not otherwise support the island.
"The Germans cannot escape the dis
charge in solid shape of their liability.
France will see to that She will keep
her military and territorial grip on
Germany even If she is 10 act alone.
The Germans must come to some better
agreement than DIR. Simons proposed,
or in various ways II will be worse
FOR them. whether public opinion likes
or not the ultimate method Of penal
The New York herald., 1921-03-14
need Of capital - Keen.

stu. German industrialists them
selves feel keenly the need of capital
and are at swords points with the
fnanciers over the scarcity and ex-
pcnse Of capital. The General Flee.
trIc Company, which recently has an
The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-01-08

usual hours of torture, what is the
half of eight"
(which way, teacher" asked the
youngster cautiously.
(Which way," replied the astonished
lady. What do you mean?"
We'll, on top CT sideways, teacher p"
said Tommy.
What difference does that make?"
''Why," Tommy explained, with a
plying air. half off the top of eight
is nought, but half of it sideways is
three"
At a mess dinner the conversation
turned or animal training.
"Ah," said Major Binks. II remem-
Der when 1 was at Boggleywallah 1
tanned an oyster. He used to follow
me all over the house like a dog. He
would sit on the table at my side with
his shell open and crack my nuts
most affectionate little creature"
Have you still got him, major? %
asked the doubling auditor.
mo, sir; he came to untimely end.
A friend of mine came into the dining
room in my absence, saw the oyster
with his shell open and swallowed him,
shall never have another pet" said
the major, with a sigh.
mo doubt your friend found It
easier to swallow the oyster said the
colonel, than we do the story"