davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

actual fear Of German conpatition ow-
ing to the exaetion of an indemnity
BRUSH statesmen and industrialists
have also seen with growing clearness
as time went on that the recovery OF
hufope's economic activity as producer
and consumer was to a great extent
conditional on the recovery Of Germany
and that until that recovery had been
effected Englands own prosperity as a
world trader could not be fully re-
STORED.
AS every one knows, the conditions
laid down in the Allied ultimatum Of
May. 1921, have not been carried out.
Ihese conditions involved an annual
payment by Germany Of 100000, 600
Roid pounds and tax at the rate Of
40 per cent of her exports, 1t being
expected that this tax would bring in
about another 50,000.ooo gold pounds
per annum. The principle of making
the payments conditional on Germany's
export trade was obviously sound; the
mistake made by the Allies was nv
hNlng the hard and fast amount of
loo,oo0,0o0 gold pounds which Germany
was expected to pay, whatever might
be happening to her in the matter Of
economic recovery or decline.
AS things have turned out it is now
evident that the amount demanded was
TOO much and this was the conclusion
arrived at by the bankers committee
lately appointed to discuss the ques-
tion of loan to Germany
by the appointment of this commits
tee it had really looked at last as if
'he Entente powers We're prepared to
deal with the reparation problem ON
the only lines on which a solution is
hkely to be reached, namely, by tax
ing the question out of the political
atmosphere and discussing it on
purely businesslike basis. 1t has
long been evident that it is not possi-
bic to make nation pay more than it
VIII agree to pay. 1t is possible, of
course, to take away it's portable prop
erty, but when one has come to the
end of that process one cannot make
1t pay anything except out of the goods
which 1T is now producing. If it is
made SO desperate that it refuses to
produce, it would cost much more to
compel it to produce than the goods
would be worth. When once this is
recognized it is seen that the amount
of the indemnity has to be one which
the German people as whole is pre-
pared to lndorse as reasonable and
possible. Even on this basis the pay
ments, being only possible cut of cur
rent production, must necessarily be
on small and gradual scale.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
i'irorce Preparations From, Politics,
says Vitf,ers, Urging Business Basis

This is the first Of series Of arti-
cies on current pressing problems OF En-
fopeaa Gaaacc, bg nv. Wfthers, farmer
edito, of @The Economist md perhaps
the most laeid of The British financial
iovitera. Other articles aViit appear on
subsequent ,Saadags, and soiH deal apith
iater-Auie1 debts, Neao Yorh; persas
London as the scortd's financial conter,
and the basiaeas recovery in England
md on the Coatineat.Fiaaacia, Ed
{oy
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

2 Larger appropriations for main
tenance and permanent improvements.
The policy last named resulted in the
creation of large equities in property,
only small part of which have been
distributed through stock dividends
and otherwise. These equities remain
enc of the potentially favorable factors
in the prospect for railway securities,
as will be later shown.
This permanent upbuilding resulted
also in better control of operating ex-
penses and relatively greater stability
of earnings, as shown by the fact that
during the normal period conservative
railway arrangements felt justified in
maintaining dividends on decreasing
excess Of earnings over dividend re-
quirements. This is pictured in the
following chart:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
is the supply of money at any rate.

Surprising as 1T may seem dividends
on increased capitalization during the
ten-year pre-war period were we'll
maintained. despite the downward
trend of prices. The average decline
in dividends per share for the normal
period as whole was almost imper-
ceptible, so that the ten-year average
rate per share constitutes the normal
level for comparative purposes.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
The Means Of Payment

In the mean time, considerable doubt
had arisen in the minds of British
statesmen as TO the manner in which
Germany was to be made to pay. Mr..
Lloyd George had found out that it
was not enough to collect German
marks, which the government could
evidently produce as rapidly as the
printing press could turn them out
What is required In order to pay an
indemnity is that the paying nation
should be able to produce balance of
goods and services for export which
will suffice to pay the annual INSTALL
ments covering interest on the capital
sum and something towards its redemp-
tion Apart from the comparatively
small sum that can be collected in the
shape of actually portable goods, such
as merchant ships and foreign securi-
ties, this is the only method by which
indemnity payments can be made UNI
less the system is adopted of raising
loans, in which case those who sub
cribe to the loans pay the money for
the time being and the indemnity pay
ing country makes subsequent pay
ments for interest and redemption to
them rather than to the victors.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Equity OF
cnNn,nn

tual capitalization of these sur
plus assets viii precede such consoiida-
tions, In the normal course of events.
therefore, we have reason to expect a
"bullp campaign in railway shares
based upon this factor alone.
Consolidation viii also benetit the
smaller roads by creating longer harls,
more stable traffic and decreased oper-
atsng expense. This should be aspe-
cially tree Of such carriers as are
absorbed by the larger roads with ex~
cess property value.
Some observers might stress one
scsaiiausa % sssi sassl
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
) hat WIN Influence Prices Of Railway Shares
sIai'stician Says Present Earn
inc Power Indicates am
Upward Squirt

sections the normal pre-war years
from 1905 to 1914 and the war and
postwar years from 1914 to 1921 the
underlying reasons for the decline
were IL constant play during the
entire period.
The following chart shows the year.
" average ct the monthly market value
per share Of fourteen representative
railroad common stocks which paid
continuous dividends from 1904 To-
1914:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Eat. Capitalization
sNo common issued. fsso q share.

The fifteen reads listed show. an.
average equity in estimated property
value of more than $500 a share for.
their common stocks and an average
book surplus as of December 81, 1921,
Of more than $50 share. There arc
at least fifty railroads with property
value in excess of total capitalization.
tits apparent that many of these roads
are in aposition to distribute part
OF these valuable equities in the shape
of stock dividends. At any rate tha
provisions Of the transportation act
for consolidation Of various roads into
competing systems suggest that even-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

But this striking closeness and uni
formity of ratio in each year of the
normal period is susceptible of closer
and more practical analysis.
~ the ten-year acreage price of rail
aOay common shares can be multiplied On
the yedrly ratio of earnings a share
separate year IS stiikingly close to the
and II the price thus dedHced Ia each
monthly Average of Actual market vaaes
a share for each year--then 1T as req
sonabte to forecast an approximate lcvel
Of futaue prices based on the same
factors.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

lying cause--viz., the money supply.
Following is. a graph of the broao
price trend of railway and industrial
stocks and an index of the money sup
ply, as measured for the normal perioc
by the variation of deposits to loans
of the New York clearing house banks
from an average, or normal. ratio,
After 1915 the Federal reserve ratio
Of reserves to net deposits and Fed
eral reserve notes outstanding is in
cluded:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
BY Luther L. Blake

srssdens. Standard Statistics CONS
pa1sy, Inc.
- HaoUGHoUT the fifteen
1 years and more, from 1905 to
= the middle Of 1921, the broad
renf of railroad common stock
,rstes was distinctly downward, and
,isas. Il this long time price depre-
sssjsa naturally divides into two
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

Thirty years of charted experience
for tests have been made for that term
shows that normally period of
plentiful money supply (the result of
previous Nquidation) precedes every
broad upward movement of prices,
while deficit of normal supply (the
result of infation) .foreshadows each
downward movement.
SO far, therefore, as common shares
which are not limited as to dividends
are concerned the monetary influence
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Position of Leading Roads

| have stated also that during the
pre-war period the railroads. through
investment Of net earnings in per-
manent improvements, created large
equities in property for common shares.
brief summary of the position OF
a, few leading roads will disclose this
fact:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Annual
actual Difference
n .erags dsduced

In the box is chart Of yearly prices
thus aeduced, as compared with the
actual yearly average Of monthly mar
ket value per shares together with the
actual yearly range. II will be noted
that in every instance tbs deduced
PRICE is well within this range.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

: ~ ~ ; y ~ 2 = =
Earnings ratio-~Col. Z
variation added to or
rom i o. wear suDtracteG
Average.

The statistical table shows that in
no year has the difference been greater
shan s12.3 per share, while the average
difference for the entire period was
only Sc per share. But it is when the
deduced value Is chartesl with the ac-
tual yearly range that the results are
most impressive.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
The Loan, Pro5Iem

If the Allies want to collect large
sum at once. as was evidently the de-
sire of France, it can only be done by
reviving the system employed so eff
fectively at the end of the Franco
tCcntnucd on page sevenl
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

Before attempting this, however, let
US test once popular theory that
money rates are the controlling factor
in market movements of common
stocks.
Following is graph showing the
ratio of yearly market value to the
ten-year average and similar ratios for
call money and commercial paper.
The commercial paper rate is chosen
because it typifes basic monetary
conditions:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Determining Vaiues

The average market value of four-
teen representative roads on August
was 1888 per share. On the basis of
net earnings per share for five months
ended May 81, 1922, and allowing for
normal seasonal variation. the fourteen
representative railroads used in these
compilations are earning at the rate
of S7.5T per share after setting aside
the required reserve fund, and $817
per share before deducting such reserve
fund. BY the method used in the pre-
ceding table the average value per
share is deduced as follows:
Per share
On basis of eagnings after
deduction of reserve fund Sll2
On basis of earnings before
deduttson of reserve fund SI20.
This compares with actual market
value on August /, 1922 of $s9 per
share, so that under normal conditions
railway common stock should advance
from 20 to 35 per cent. from present
levels
II earnings per shore rather than ac-
tudl divideuds paid hare been the chief
price factor for common stocks tohich
paid continuous dividends during the
period cited, then they mast be an epen
greater price factor for non-diUidend
paying stocks.
Furthermore. if the factors shown
haze been uniformly cfeetiue IN past
normal experience, then they should
control prices in the normal period
mh|ch lies ahead.
1t might be well to explain why the
writer believes that normal influences
should now largely prevail in shaping
the course of railway stocks.
The economic storm caused by the
war is over and in this country at
east most of the wreekage has been
cleared away. We. still feel and will
continue to feel the effect of Europe's
fiscal difficulties, but the repercussions
here will be less and less violent, for
. this country happily is favored by a
condition OF economic independence
such as no other nation enjoys.
True, prosperous and iscally sound
Europe would add to our prosperity.
True also that we would be better off
with much rather than with little
export trade with Europe. But the lack
OF is not and will not be fatal to
us, for obvious reasons. The ratio of
our European exports to our total out
put OF goods does not average more
than 2 or per cent, and much of
what Europe takes from us cannot be
! obtained elsewhere and must be had
from US, no, matter, how, hard it may
be to meet the terms of payment.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Bases Conclusions ON Study OF
Past Relation Between Quo
tations and Income
The Forecast

On the basis of factors which
mens
roads used as base should sell from toto
Inc following cnar shows the
average OF prices and the deduced
governed prices in the designated
Forecast"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

The following tabulation shows the
comparative variations of price and the
earnings per share from the ten-year
verage:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Chart 8

The deduced values for the abnormal
period, July /, 1914, to December 81,
1921, as shown in Chart s, are already
on the basis of rentals received from
the government during the period of
government control and the subse-
quent six months guarantee, covering
a period from January /, 1918, tc Au-
gust 81, 1920. Actual operations
showed deficit, so that neither the
rentals received nor the deficits
created by war conditions can be ac-
cepted as criterion of normal earn
ing power on like volume of traffic.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

Referring to Chart a, it will be seen
that the yearly variations in earnings
ser share conform closely to the aver
ge price per share. Experience shows
hat common stocks move closely Ia
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

Then; theoretically, an increase or
decrease in earnings per share of 1913
per cent should equal a corresponding
increase or decrease in price of S.5 per
cent, the ratio of price to earnings
being Is. per cent.
Multiplying algebraically each years
earnings variation by rs per cent we
obtain yearly price, value Of earnings
by the simple process of multiplying
the ten-year average price by the adj
justed yearly earnings ratio.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Chart z

eonsonance with the prospect for divi-
dends as reflected by net earnings,
rather than with the rate of dividends
actually paid
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Prices. Earnings.

1t will be noted that the average OF
price variation is 8.5 per cent waSle
the average variation of earnings IS
1913 per cent.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20
Hosg Prices Conform.

Let us. see, how, nerrly the prices
thus deduced conform to the actual
nricei
Mountain advocate., 1922-08-11
MOON SALES CONTINUE BIG

The Moon Motor Car Company OF
st. Louis reports that July was the
biggest month in their history. The
sales we're 275 per cent greater than
sales for July Of 1921 and 29 per
cent greater than sales for June of
1922. which was the previous record
month.
Unified orders on hand August
1st were of such volume as to insure
capacity production until at least
October. The factory at present is
building fifty cars day and every
effort is being made to increase this
number.
The demand for closed cars is up
setting all calculations and for the
next three months at least sales Of
closed cars will equal If not exceed
sales of open models.
The outlook for continued record
business is very satisfactory, and
peak production is expected to be
carried on into the winter.
Mountain advocate., 1922-08-11
sURFACINc CONTRACT
AWARD IS DELAYED

Contract for grading and draining
the Barbourvilielcorbin road proba-
bly, will be let at the September
meeting Of the state highway COM
mission and for surfacing the Pine
villeIBarbourville road not before
the October meeting, according to
an announcement here Thursday OF
Hugh T. Asher, member of the COM
mission. Work on each Of the con-
/ tracts probably will begin immedi-
ately after the contract Is let and as
much work done this fall as possible.
With an open winter this may
mean that grading and drainage
work on the Corbin end of the road
can be pushed all winter, tho the
rains, even in mild winter, would
prevent surfacing work after Decem-
ber LIST, according to Steve Watkins,
division engineer, because of the
softened sub-base not holding up
sufficiently to hold the rocks on top
of the surface. The surface con-
tract cannot be let, Mr.. Asher said,
until the grade contractors have com
pleted their work and this been ac-
cepted by the highway commission.
Final grading and dressing on the
Pineville- e-Barbourville road is under
way with the local highway Office
and Davis G. Graham, contractors,
pushing the subcontractor all pos
sible. This road is now reported as
in fair condition to Flat Lick. and
when completed and accepted will
provide good travel between the two
cities except during rain. The high
way department must maintain it |
after acceptance and is prepared to
do this with regular dragging and |
crowning when needed. -Pineville
Sun.
Mountain advocate., 1922-08-11
PREPARE TO CONTROL
GRASSH0PPER PESTS
Tests Made to Determine Most
Effective Bats.
special Agent Of Bureau Of EntomoI.
ogy Assigned to Make Investiea-
tion Bearing on Situation
in Infested Regions.

Various steps are being taken in the
regions heavily infested by grasshop-
pers last year 10 prepare for their
adequate control during the. coming
season should the same situation
arise, says the United States Depart
ment of Agriculture.
At recent conference attended by
entOmOlOgists from Canada, as well as
state and federal entOmOlOglsts, plans
were cO-ordinated for conducting a
series Of experiments this year to de-
termine the most effective poisoned
baits for various species of grasshop-
pers which infest different regions.
The work is to be done on a uniform
basis, so that the results obtained may
be easily compared.
1t Is also planned to construct an
international map, showing in a large,
regional way the grasshopper condi-
tions in both Canada and this country.
This map. will be available both In
making an annual record and for fu-
ture reference in control work. A spe-
cial agent Of the bureau of entomol-
ogy, with headquarters at Billings,
Mont, has been assigned to make In
vestigations bearing on the grasshop-
per situation this year in Wyoming,
North Dakota, Minnesota and other
affected areas.
Mountain advocate., 1922-08-11
FIRE BRINGS OUT AUTO TRUCK

Monday night just when people
had begun to digest their evening
meal and were feeling somewhat
lsomnolent, the fire alarm announced
| vigorously that there was a fire in
town. Peaple ran up Main Street or
drifted up according to age and en-
ergy. Where was the fire? At the
Decker store it was said, but in a
few minutes, before the scene of the
fire had been reached, back came the
fire wagon, Ben Kaufman at the
wheel wearing a henpecked express
sion, since the fire proved to be but
the burning of some old hens nests
by our live and up-to-date and also
genial friend. Rev. d. Edgar Allen,
pastor of the Baptist Church. Let it
be said that he himself did not turn
in the alarm but when the burning
nests and their vermin were being
destroyed by fire, neighbor, seeing
this holocaust to the sanitary, let the
fire fighters know that there was
something doing and to hurry to the
job. No wonder the siren said things
on its return.
Mountain advocate., 1922-08-11
BARBOURVILLE ROAD UN-
LUCKY FOR CORBIN TOURISTS

A bad place in the road about five
miles ont of Barbourville has been
playing havoc with autoists lately.
Two accidents in which Corbin peo-
pie figured prominently have oc-
CURED there within the past fort
night, and at least two more cars
have met with disaster in attempt
ing TO negotiate this mudhole. Last
Monday a car driven by Miss Sue
Gray of this city and containing her
parents, Attorney and Mrs. Gray,
and a Mr.. Bryant, slipped over the
embankment at that point and turn
ed almost completely over, lodging
against a tree and thus saving the
occupants from possible injury. No
one was hurt and the car was only
damaged Corbin Times
Tribune.
Mountain advocate., 1922-08-11
COMPROMISE

In the case of the North Jellico
Coal Company seeking to dispossess
a number of men on strike, pending
in the Knox Quarterly Court, a
judgment by agreement was reached
on Thursday. judgment being sus-
pended for fifteen days. This deci-
sion was arrived at before Judge j.
T. Stamper with both sides present.
Judge Stamper, in a few impressive
words. congratulated the parties in
volved on being able to thus COM
promise and tried to impress on
them that all are brothers with the
same needs and desires.
Mountain advocate., 1922-08-11
Moth; b. Laa; pupa; to~srdl

(Prsparcd by the United States pepartnent
Of Asriculture)
The Insects which attack the potato
and the eggplant injure the tomato to
less extent, and tomatoes suffer
greatly from pests.
Tomato Hornworns.
The tomato hornworms are large
green worms, sometimes called tomato
worms or tobacco worms, as they feed
about equally well on both plants.
They are the larvae, or young, Of
large sphinx moths Of two species,
which are very similar In habits and
distribution. These insects produce
two broOds, and when they begin to
mature they cut all the leaves from
tomato plants. Growers should be on
the lookout for the first as well as the
second brood. They appear at vari-
Gus times, according to the locality.
controI.-Hand picking can be
practiced, but it takes an experienced
eye to detect these worms when they
are at rest. When feeding they are
more easily seen and can be destroyed
readily. A single application of lead
arsenate at the usual rate will de-
stroy them even though crudely ap-
piled. Those which eat the poison
first will be found dead the following
day. The remainder will be found on
the second or third day.
Tomato Frultworm.-The tomato
fruitworm Is the same insect as the
boll-worm of cotton and the corn
earwOrm and Is the cause of much
trouble to tomato growers, because Of
its eating into the ripening fruit and
destroying its market value.
controI.-Lead arsenate, 2 pounds
to % gallons Of water, applied two
or three times, will keep the insect
under partial control. As long as
sweet corn is growing in the vicinity
1t attracts the worms, leaving the to-
matoes less subject to attack. Hand
picking Is too difficult.
Cutworms.-Various cutworms at
tack the tomato when It is set out. In
deed, 1t Is the favorite food plant of
most forms of cutworms.
FIea-Reeties.-The potato fiea-beetle
attacks tomatoes and does
damage.
controI.-Dlpping young plants in
solution at the rate of
Dound to 80 gallons of water. before set