davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Canadian Business
Continues Stead
Forward Movement
Special Dispatch to The Tribune

MONTREAL, Oct. 8.-Business con-
ditions in Canada continue to make
steady progress along the road to ulti-
mate recovery Thus far the better
ment has been more noticeable basi-
cally, but the movement is a gradually
expanding one Industry after indus
try is getting b..ck upon its feet. Con-
fidencc is gradually being restored and
the attractiveness of new ventures ap-
pears to be growing apace.
1t Is notable at this time that the
-four milling industry in the Dominion
is working into better position. The
president of one Of the larger mills
reported that this condition, especially
as regards the export trade, is proving
far more gratifying than anticipated.
Trading in wheat owing to the Auctu-
atlng prices, however, is extremely diff
icult, while much care is necessary in
marketing -four
The rubber tire industry is slowly
making progress and other divisions Of
the rubber industry are picking up.
Some departments are particularly
active, especially rubber footwear and
wearing apparel for winter. LARGE
clothing manufacturers have expe-
rienced quite an unexpected rush of
orders as a result of colder weather
N the west, which has slowly moved
east.
Bankers report generally more
stable commercial paper business. with
contracting credits and loans and a
steady inquiry for time money to
finance new enterprise and cndeavor.
80 tar as stock and investment mar
kets are concerned, it might be said
tnat progress toward recovery has been
negngiblc Especially is this so as re
CARDS the stock market
The lmminencc Of the Federal cleo.
lions, which have been called for early
IN December. has been rather un-
settling fnctor, although business does
not appear too greatly to fear adverse
Legislation. The fac. That the present
government is At last going before the
people is regarded IA an excellent tang
the lors rur, but elections are nj
ways Disturbing and tend to restrain
trade and industrial activity.
The unemployment situation in Can.
MIA 70 MT IN untowasd one at the mo-
ment, although the proportion OF Job.
less wi i probably tend to increase from
now until late December This country
has been extremely fortunate Nm to the
present time, however, when conditions
in the leading ccntcrs of the United
/ Stntes and Grcat Britain arc viewed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
assessing Real Estate to Finance Ne,o
SubaUays Urged as Most Economical Pld1,
Extensions of Transit Fa-
cilities i'm the Next 25
Years Will Need Many
Millions of Dollars, and
Sources Now Doubtful

mission thoroughly. Leroy T. Hark-
ness expressed the opinion that while
the plan was economically sound in
theory, it was impractical actually to
carry out. This is notwithstanding the
fact that, apparently, the law would
permit such a thing.
In the case of the Utica Avenue rapid
transit extension, the real estate intcr
ests to be affected were in favor Of the
assessment plan, probably because it
izing on the value of their investments
in land in the neighborhood to be BEN
Gifted Even in this case, however. a
difficulty presented itself which had to
be take n into consideration. The assess
ment was to extend over period Of ten
years. 1t has been found possible time
and again to get an assessment law re-
pealed and the burden transferred from
the property owners to the general tax
payers Of the city. A case in point is
sewer built two or three years ago in
Brooklyn. The assessment on AUDITING
property owners extended over period
Of years. Within less than two years
property owners had got together,
elected members of the Assembly
pledged to repeal the law, and the bal
ance (much the greatest part OF the
assessment) was not paid by property
owners, but transferred as tax on the
city at large.
Real estate dealers and spectators
have for so many years regarded the
profit arising out Of rapid transit ex-
tension in New York City as their own
particular vested interest that mem
bers Of the Transit Commission and
former members of the Public Service
Commission, etc, appear to be pretty
well agreed that as political, practi-
cal matter, building subway extensions
by assessment cannot be carried out.
The fact remains, however, that these
same students of this problem, as stu
dents, are inclined to agree that if it
were practical it would be the sound
est and much the most economical way
Of meeting the problem.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Steel Prices Liquidated
TO Full Extent. Is View
Only Farm Products and Some Metals All Raw
Materials Have Fallen Further Than Finished
Steel Prices Compared With 1913 Level

IS desired-and few will question it
lheh 1t would seem that the greatest
gain IN that direction might come from
attacking the prices OF products which
are furthest from it. Steel being, with
few exceptions, nearest to pre-war
figures. any raid on it must necessarily
yield more meager returns than an
equally vigorous drive on those in
which there is evident pro6teering,
some being still more than 100 per
cent above the pre-war level
Facts on Figures
Now as to the facts back of the
above figures
For some years the Bureau of Labor
Statistics of the Department of Labor.
Washington, has collected prices from
all over the United States, from which
monthly index figures of the cost of
llvlng are prepared. These are all
Wholesaie prices On pages 100 and
III Of The Monthly Labor Review"
Tor July, issued by the bureau, will
be found quarterly figures from jan
uary. 1913, to January, 1918, and
monthly figures from January, 1918, to
May, 1921, inclusive. Average figures
TOR each calendar year from 1913 to
l92o. inclusive, are also given. Figures
Tor June, July and August have since
become available. Ali figures are
based on the average for 1918, that
average being placed at 100.
These figures cover the nine groups
of commodities shown in the appended
table, and the (weighted) average of
all commodities. They do not include
steel, as such, but cover it under the
general heading metals and metal
products"
1t happens that corresponding data
for finished steel products are avail
able in the Iron Age" composite fig
ures During 1913 the average price
per pound OF steel rails, bars, beams
plates, sheets, wire and pipe was 1G63
cents. To-day lSeptember 19) it is
2.279 cents. Its 1920 peak was 1871
cents. These figures, reduced to the
basis of 100 for 1918, are shown in the
table. as we'll as on the diagram. The
seven products named represent SO per
cent Of the total output of finished
steel The Iron AGE" composite is a
straight average of the seven indi
vidual price tigurues.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Retiring Excess Credit Explained
Federal Reserve Bank Describes Workings of Syst
tenn Opposed to Expansion of
Customers Demands

In last months "Review" the mech
anism of expansion under the Federal
Reserve system was described. A de-
scription of the reserve process by
which excess credit is retired will be
Of interest at this time.
Just as the increasing demands Of a
banks customers for funds cause an
increase of the loans and deposits of a
bank and, in turn, of the loans, deposits
and circulation OF d Federal Reserve
bank, so the decreasing demands OF d
banks customers for funds cause & de
crease of banks loans and deposits
and, in turn, of the loans, deposits and
circulation of q Federal Reserve bank.
In other words, the first step in a re
duction in the volume OF credit, as III
its expansion, is taken by q bank Gus
toners; the second step is taken by the
banks themselves, and the third step is
registered on the books Of the Reserve
bank.
While an inspection of what has al
ready taken place will give the clearest
idea of the processes by which excess
credit is retired, it should be under
stood, however that our recent expert
ence is probably not typical Of what
might be anticipated under no nal con-
ditions The loans of the Federal Re
serve banks reached their highest point
on October Is, 1920, the same date on
which the loans Of member banks il
the principal cities throughout the
country reached their maximum. i
comparison of the principal items is as
fol1OWc
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Effect of Exchange

Some other outstanding facts which
should be noted, since they affect the
general situation, are the rates of ex-
change, for until these approach and
remain somewhere near standard or
par in relation to the dollar, the free
movement Of raw materials cannot be
looked for. The fact is that 100000 900
men who were mostly producers Of
wealth as we'll as consumers Of cotton
products have been wiped out by war,
and while the natural increase in pop
ulation has probably made the number
up, it has by no means compensated
for the economic value of these lost
lives to the world.
The present is time when the cumu-
lative effects of the "little drops of
water and the little grains of sand
must be remembered and reckoned with.
For the world is economizing in dead
earnest, patching and mending it's
clothes, searching closets for materials
laid by long ago. The women have
sliced 10 per cent or so from their
share OF textile takings by shortening
their skirts which reminds one of the
exaggeration common some years ago,
and which still crops out occasionally,
to the effect that if an inch were added
to the length Of the shirt tail of every
Chinaman it would keep every cotton
mill in the world in full operation.
The well-nigh universal detcrmina-
ton to economic is confirmed by the
Accommodations of silk and wool as well
as cotton. The consumer in mass is
the dam retarding the customary flow
OF trade, and whenever the time ar
rives that he is both able and willing
to resume his wonted purchases there
will not be sufficient spindles and
looms to supply what will have grown
into an insistent clamor for necessary
clothing. Meanwhile, when the next
killing frost" sweeps over the South
it will leave behind it enough cotton
to satisfy all the worlds needs for an
other year. AS to next season, who can
say? High prices are an almost over
powering temptation to plant more
mat statement may prove as irresist-
ible next season as it has invariably
shown itself to be in the past.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

and interest and sinking fund payment!
are ii arrears since June l, i9is
Ihe per cent ten-year trsasr,
bonds OF 1918. OF whioi. $4,000 600 81
outstanding, were authorized 10 ~
amount o. Gt6.00o,000 Among tho ~
curities liven We're 80 per cent Of ~ N
total receipts frem import and ernor'
taxes duties OF the United States y
Mexico ana pledge not 10 contra.
any new loan secured in any way unor
the customs uatil the bonds Of n.
present loan arc repaid, unless H..
proceeds OF such rev loan are en-
piled, and are sufficient. to entirs1
repay the outstanding bonds of MI
present loan.
Three other government loans Al
which interest Is in arrear are thu \
per cent loan OF 1910, 0,56S,7So anil
standing, on which interest and sink;,1
fund deposits have not been paid sns9
July !, 1914; the consolidated 3 per ce,J
silver bond issue Of 1888. s4S.5so sSs
outstanding, interest and sinking fus}
payments on which are in arrears sjpI
December 81, 1913, and the per carl
redeemable bonds OF 1894, S96.6l5lI
outstanding, on which interest and II
mittances for the sinking fund are I
arrears since April !, 1914.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

matter Of common sense, regardless
of the technicalities of law, it would
appear that the extension Of a sub
way is strictly analogous to the build
ing Of a sewer, as it affects property
values.
Louis B. Wehle, formerly a member
of the Federal Electric Railways Com
mission, in All article recently in "The
National Municipal Review" pointed
out that there is now in the statute
books of New York a law which would
permit the assessment of abutting
property owners to cover the cost of
subway construction.
Utica Ace. Extension
Some years ago, when plans were
being made for a rapid transit line
in Utica Avenue, Brooklyn, from East
ern Parkway to Flatbush Avenue, a
study was made of the possibility Of
paying for the cost of the extension
by an assessment. Arthur s. futile,
at that time Deputy Chief Engineer,
made an extended report covering the
relative assessed values of land in the
vicinity of existing subways and the
assessed NdluaJlOn OIL lana situated APP
proximately the same distance from de-
veloped business sections. etc, but
without rapid transit facilities. 1t
was estimated that three track line
through Utica Avenue would cost
$500, 900 and a two-track line $4,10O,-
600, and it was estimated that $4,000, =
600 should be raised by general as
sessment on the entire area benefited,
and 100000 as additional assessment
on the zones closely joining express
stations.
The territory was divided into four
zones, as shown on the accompanying
map, around the subway stations The
price Of lots, without the rapid transit
lines, varied from 1924 to $345. To
raise the necessary money for the
rapid transit line assessments against
the property in the four zones were
estimated at S91 for the outside or
least benefited zone, $133 lot for
the c Zone, 1892 for the B Zone and
$3.50 for the a Zone. which would
bring the value of the lots up to $1,226
for the outside zone and S2,452 for the
inner zone, after taking into consider
alton the carrying out of local i'm
provements, plus profit to the land
owner, etc.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

Prices lower than last spring prevsl
in the spring Offering of knitted unds|
wear made yesterday b. Robert Rel
& Co. mill agents. According 20 u
official, the cotton knitted goods u
priced on a basis OF yam 9. % cena]
pound. whereas the present pria q
50 cents a pound. The mills, he add
are not covered for the entire seaal
on yarns, and the future prices Of III
ished garments viii depend largtI
upon the action Of the yarn market
One spring needle union suit is n
duced from SIS dozen .ast season u
S13 this season. Some athletic undgI
wear shows Il drop from $1,000 to $s2|
The average reductions on most Of thl
different lines run from 81 to SO
: dOZen
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

would have a corresponding effect on
cotton consumption.
From another point Of view the re-
covery of the power to consume cotton
will be slow, much slower than would
at first blush appear. Since the cost
of putting down new mills has IN
creased from three to four times, it is
not so certain that investors will be
as keen to place their money in che
industry as they we're formerly How
ever, even were all financial obstacles
to expansion removed it would be years
before makers of cotton mill equip
mont could catch I'D with arrears
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

alone from larger orders on Individual
items from customers, but from q
wider range of buying now practiced
by the retailers" says Mr.. Berg. For
merly where we sold certain items
to certain customers other houses sold
them other items. We find now that
because Of our lowered prices, our Gus
toners are willing to buy wider range
of items from US.
"Most of the retailers who have
taken advantage of our lower prices
have followed our advice in passing
these lower prices on to their Gus
toners. They had the alternative OF
keeping their prices up to those of
their competitors or of cutting them
Most of them have done the latter, and
it has produced considerably augment.
cd business, increasing the retailers
turnover and ours. too,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

two and half times what It was in
preceding months and the money value
Of sales is jumping at the rate Of about
10 per cent a month.
Ne1p accounts
eve know" said Lawrence Berg adj
chat we have lost some business from
customers who waited for our travel
ing statesmen to call on them. but this
has been more than Offset by the new
accounts that have come to u.s. That
has been the most gratifying result of
the change. Since we put our new
plan into operation we have opened
close to five hundred new accounts.
More than this, 200 accounts on our
books, long classed as dormant, have
been revived, and this without call
from single salesman.
he basis OF our plan was a belief
ira low prices would move goods We
handle no expensive merchandise, and
the cost Of any one of the two thon-
sand or more items we handle is not,
large. Yet we found that consumers
were baking at prices and in turn the
retailers were adopting the same atti-
tude toward US. w tn price the para
mount issue in our business and lower
prices apparently the only solution TO
our problem, we adopted our present
selling method as the only manner of
bringing prices down still further.
Ihe vast majority of our customers
tel US that they are pleased with our
new method. 1t also has additional
advantages besides those already emu
merated. For instance, We send ONT u
weekly price list or Bulletin, which
n~lngs up items that the retailer may
have forgotten. Under our ole method
We sent out catalogue quarterly and
followed this up with calls from our
salesmen. The catalogue has been
eliminated, but our weekly bulletin
more than takes its place, since it calls
us TO the merchants mind more fire.
qicntly. Then, too, under the cata-
iogue system our statesmen frequently
had special offerings, which were lower
IMAM the catalogue prices. This tended
TO destroy the confidence Of the Gus
toner IN the catalogue Now, our bull
ictin quotes the latest and rock bottom
prices on merchandise every week.
wfich is more agreeable to our custom
ors."
Not only have the majority Of mcr-
chants who bought from the road
salesmen been willing to send in their
orders by mail, but "A great many Of
them now come into the market them
selves and buy at the firms sales
rooms. according 10 Mr.. Berg Records
show that IN recent months before the
new system was established "houac"
customers numbered about 800 II week
Now they number from 1900 to 1000.
"Increased business has como not
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09

For thirty-thrce ycars the firm had
maintained road statesmen. Each Of
these, sixty-fve in number, 1t was fig
tred out, cost the company over 5000
a year 10 maintain, including his com
missions. travelling expenses. samples,
branch Offices and other incdcntals
Ia, travelling men we're eliminated and
weekly bulletin, mailed TO each Of the
concerns customers. substituted for the
quarterly visit Of the salesmcn
BY eliminating the travelling men
yearly expense Of s4o0, 900 was Topped
off. II had cost this much TO maintain
the sales force. The total volume of the
years business was running around
81, 000, 600 A little rough figuring
elbows that the cost " selling through
travelling representatives WAS l3 1-3
per cent Of the total volume Of turn
over. Here, then, was an opportunity
to cut prices by about that much.
Some skepticlsm concerning how the
plan would work was Expressed by
various executives, bat In view ~ the
fact that business couldn't get much
worse than ii was under the old plan,
it Vas decided 10 give the new idea
a chance. In the two months since the
plan has been In operation some start
ling results have developed. The turn
ever Of goods has increased close to
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Profits ON increased alue
of Property Could Be
Used 10 Pay for Con-
struction of Lines; OPP
posed by Realty Owners
By William E. Hooper

U N THE fiscal year ended June 80,
] 1921, the subway division of the
~ interborough Rapid Transit
earned $34 1927 900, of which $751;
069,0O0 was from passenger revenue
of the subway. Total operating ex-
penses were $15,909,000, and total
actual maintenance charges were
$5,065, 900. In addition there is ap-
proximately 100000 charged for
depreciation. This makes the ratio
Of expenses, maintenance and depre-
cation to gross revenue about 66,
which would not be at all high for q
steam railroad. On the other hand,
the interest required on the invest
ment is a far larger proportion of
gross than on even the most expen-
slvely built steam railroad.
In the fiscal year 1921 the so-called
preferential and lessees' interest
charges called for $12, SOC, 900, and s.76
per cent on the city's cost of construc-
ton, under contract 8, called for an
additional s7,OOs,0Oo, a total of some
$20000,000, or over 60 per cent of gross
operating revenues.
1t is obvious that this ratio cannot
continue unless the general taxpayer
is called upon to meet the deficit, and
this is what is now actually happening.
Within q month or two the Transit
Commission will probably make public
the tentative plans for subway extern
sions. 1t has been estimated that
within the next twenty-five years $780,
100000 will have been spent for sub
way and elevated extensions, and it is
the consensus of opinion of the men
who have been closely connected with
the development of New York City's
rapid transit system that subway rath-
er than elevated constructor is the
desirable method of extending the
rapid transit system.
The financing of New York City's
transit facilities has been in general
of an unsound, if not immoral. charac-
ter. On the other hand the financing
of the subway, partly through advances
by the city and partly by the sale of
bonds and notes secured by these first
mortgage bonds, was stra ghtforward
transaction, about which there can be
suspicion Of graft or undue profits.
Details of how the money was raised
and expended were all open to inspec-
tor and were carried out under the
supervision of the city The financial
problem of the old subway is the same
financial problem new subways will
have to face. AS soon as the report
of the Transit Commission on the new
subway routes is made public the
question of how these routes are to be
financed VIII become a vital one.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Important Loans

Without attempting to theorize on
Mr.. Lamont's possible solution for the
vexing problems in connection with
his trip to Mexico City to confer on
financial matters, it is interesting to
study briefly the several government
issues which are involved, for the
reason that Americans are now hold
ing large proportion of the bonds
which were sold to European investors
before the war, and which crossed the
Atlantic in the general shifting of Sc
curities to America in settlement Of
European obligations.
cent external consolidated gold loan of
1899. Interest on these bonds, due
April /, 1911, was met at that date,
although only two of the three neces-
sary monthly remittances, which in
clude the amounts set aside for the
sinking fund, have been made" but
the interest due July l, 1914, and since
and the remittances for the sinking
fund are in arrears. These bonds were
issued in pound sterling denomina-
tions, with the equivalent in German
marks and United States dollars also
expressed on them.
The loan was created for the con
version Of pre-existing 6 and per
cent loans, holders of which received
the option of conversion into the new
loan, and a part was offered for sale
in New York and in Amsterdam. The
bonds were made redeemable not later
than January /, 1916, by cumulative
sinking fund designed to meet the OBJ
legation at maturity. Because of the
suspension of sinking fund payments
the redemption outlook is uncertain. A
loan foated in Paris in January, 1911,
permitted drawings of some of the
bonds, but the amount outstanding at
present is placed at 60 .95I.2S0.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-10-09
Real Estate Dealers

The pressure for the extension of
subways and elevateds comes largely
from real estate and real estate specu-
lator interests. The extension of a
subway into a section heretofore with
out rapid transit facilities almost over
night doubles or trebles the value of
the land adjacent to the new route.
1t is customary, when a sewer or other
Improvement Of like nature is made,
to finance its cost through the assess
ment of abutting property owners. AS