davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-02-05
Cotton Belt a!uc

The st. Louis Southwestern gets 4
total valuation OF S29 100000, com
pairing with S67,43O 600 the figure
shown for investment IN road and
equ ipmontt he the companys books
And the st. Louis Southwestern of
Texas valuation Of S26.o30.o0o. as
against book value Of S2o.S20.00o.
In 1915 the interest charges. rentals.
etc. Of the Rock Island were 1855
900. Interesi at 5ie per cent on the
valuation placed on the property by
the Interstate Commerce Commission
is S17.725. .00o. Thus. if the Rock Isl
and had earned net Z per cent or the
commissions valuation 1t could have
paid its interest charges and had
little over , per cent left on its out
standing stock.
1t viii be recalled that a few years
ago the Rock Island was put into re
ownership by the interests that had
controlled the property heretofore.
and pro<racted discussion followed
as TO whether or not the property
should be sold under foreclosure and
the face value Of It's funded debt be
reduced under reorgan zation, or
whether Fl comparatively mild vo'un-
tary reorganization should take place
Finally the voluntary reorganl zatlo1
was decided on, largely, presumably
because Of experts estimates Of earn
ing power. This Illustrate another
angle of the same subject Of valuation
and capitalization already discussed
The conclusion OF the experts as to
earning power just about justified tn
actual capitalization then in existence
which represented a great rcductson
from the capitalization OF the holding
compani,s which had throupn III,
working OF economic laws, previously
been wiped out
Viewed, therefore. either from the
point of view of the physical valuation
OF the property and the book value OF
the property. or from the point Of view
of the par value of securities. and the
earning power of the property. TO yIclo
interest on debt and dividends on stock
we find that the Rock Island is worth
just about what the market had taker
it at without physical valuation
New-York tribune., 1922-02-05

served WIN tentative valuation
The total investment in road and
equipment Of the Chicago. Rock Island
Pacific, AS shown by the company's
own books, in 1915 was S235 .8G7 .O0o.
The valuation placed on the property
by the Interstate Commerce Commis-
SION, as of 1915 was 1882 .06' 900 The
total valuation placed on the property
used. including the property rented,
etc. was 1922 ,278 900. The total amount
OF stock outstanding. par value. was
S72,4S3000, and the total amount Of
bonds, face value, was s2l3.s05, 900. a
grand total Of S307 28S 900, as com
pared with the S322,27s 900 valuation.
The progress that has been made in
the valuation of other properties indi-
Gates that in general. and with certain
outstanding exceptions. the valuations
by the Interstate Commerce Commie-
SION viii be at least as high as the fig
ures shown on the companys own
books for investment in road and
equipment In other words. in general
the capital accounts are not an over
statement Of the assets of the com
panicS
New-York tribune., 1922-02-05
A uilty Conscience

hls fear is now. in the light of val
udtion developments. matter for
amusement. Railroad promoters were
conscious that when the earlier rail
road companys books were opened.
liabilities were hard and fast reality
which the bookkeeper had to face. As
much stock and as much bonds had
been sold as could be sold and the
amount Of this was clearly enough be-
tore the bookkeeper in the ledgers.
When, therefore, he was called upon
to draw out balance sheet. the con
structlve part OF his work" was that of
writing IN an amount for investment
IN road and equipment which would
make his books balance with the face
amount of stock and bonds and other
liabilities outstanding
The railroad men and the bankers
who feared the valuation took into
consideration the bad intentions of the
early railroad bookkcepcrs wjthou,
making due allowance for the working
out OF economic laws which upset bad
Intentions as we'll as good intentions
/ hcN forgot that no amount of book
keeping would make a solvent railroa 4
out OF property which was inadeouatc
to perform transportation service
cconom ically in competition with o4hc,
railroads.
With some railroad bankers and pro.
meters one or two receivershps were
not sufficient to teach this lesson
Others, the Coils P. Huntingtons
James J. Hills and Perkins. made q
mental note of the experience of other.
and learned their lesson painlessly
ihe bookkeeping Of the railroads in
time came to represent the facts. de-
spite the railroad hOOkleaperc bo,,,,o
actual investment had to be made in
the property to develop earning power
The fears engendered by guilty con.
science are being proved groundless
by valuation made by bureau which
undertook the investigation in the
spirit that its own existence could be
justified only by finding the railroads
had overstated the amount of their in.
vestment in road and eauipment.
New-York tribune., 1922-02-05
Reclaim Unnecessar,

1t never delegated it to any one and
therefore does not have to reclaim it!
Zone Of the leading economists who
has labored for years for the nationali-
zation of cur finances insists that the
government shall cease to go to the
bond market as borrower. He would
have the government alone exercise the
power to issue money. as it is really
the bac,ser Of the banks. To provide
funds for public use he would have the
government issue Treasury notes of
full legal tender, in exchange for non
interest ring bonds limited in
amount TO a stated proportion of the
taxable land values, redeemablc at the
rate of A per cent year. To avoid
excessive imitation the Treasury notes
would be retired as they were paid in
by the borrower"
Giving to words their ordinary dis
New-York tribune., 1922-02-05
Tar Rctc Changes

Two distinct taxes are imposed or
lndlyiduals namely, normal tax AND
surtax. The normal tax is imposed
at the rate OF I per cent on the first
$4,000 of the net income of the tax
payer in excess of allowable credits.
the balance being taxable at tho rate
Of s per cent In the case of a non
resident alien. the entire net income of
the taxpayer, less any allowable cred
rs, is taxed at the rate Of s per cent.
None Of the credits which are allowed
against net income in computing the
normal taA are applicable for purposes
OF the surtaN The surtaX, which is in
addition to the normal tax, is imposed
at graduated rates. the rates for 1922
and Hereafter being somewhat less
than the rates for 1921.
For 1921 the SurtaX starts with the
rate OF por cent on the amount of
net income in excess of $4,000 and not
IN excess Of $4,000, and from that
point increases at the rate Of per
cent for each $1,000 of net income IN
TO 100000. From 100000 to S15O,OOO
the rate is 81 per cent. and on amounts
N excess of Sl50000 the rates are as
follows: S150.0Oo to 100000, Sc per
cent 100000 to 100000, 60 per cent:
sSoo'oV0 to 100000. SO per cent; $780,
eVV y, W to Sl000,ooo, ga per cent; over
slOO0,O00. 65 per cent.
rol 1922 the rates of surtax apply
u income in excess OF $4,000. the rate
rom $4,000 TO $4,000 being per cent
Above $4,000 the rate increases per
cent for each $1,000. except that the
,a'e increases . per cent on the 50 ,O00
between $4,000 and $4,000 and on the
Si'ooo between $4,000 and $4,000
Inc rate between 100000 and Sl50,00O
IS "a per cent: between S150.O00 and
sooV'ooO. ~ per cent. and over $500, 900
New-York tribune., 1922-02-05
Two Taxes on individuals
Are Levied by 1921 Act
Each Is Distinct and None of the Credits
Allowable OH Normal Rate Is
Applicable to Surtax
By Morris F. Frey

Treasurer. Guaranty Conupnnv of Mem yo.
act of 1921 imposes and
ton individuals being subject normal tax and t
corporations to income tax and 1921 and M
income l21 cent for 1922 thereafter Estates md
are taxed entities in other cases Tho hs
rsv the tax individual sofi income AN'
New-York tribune., 1922-02-05

i Jnp,rca nt
nboc.r
N mdHM
the hnudxof the
Mill dsh
is hes
dmiId
o. that
IH nL,M The
o uer of
b the association
The near
New-York tribune., 1922-02-05

situation' Several plans are advanced,
but none can succeed unless backed by
public opinion. There is practical unan-
Unity on one point--that the delegation
Of power to fiscal institutions must
cease. The government. without the
Endorsement of which no currency can
be made legal tender. must reclaim
that authority and exercise it,
New-York tribune., 1922-02-05

acceptable because its value in terms
Of gold was decreasing and every one
knew it. Consequently it ceased to be
money because doubt arose that i!
could be exchanged for gold at it's face
value
New-York tribune., 1922-02-05
Orercapifalization

mere mas been quite general con
iuslon as to the purpose which lay be-
flnd demand for critical valuation of
railroad properties Contrary to popu-
lar conception, it was not overcapital-
lzatlon, meaning by this an issue Of
greater amount Of par value Of securi-
ties than the assets of the company
Justlfed, but belief that the figures
on the railroad company's books show
ing the investment N road and equip
ment had been padded. The accusation
OF a padded property account grew out
of form OF defense which the rail
toads adopted against the granger leg
lslation of the 70's cutting freight
rates.
he state legislatures passed laws
tXlng maximum freight rate which
1t was legal for railroad to charge
much below the rate that had been in
erect. Railroad lawyers cast about for
some way of attacking this legislation
IN the courts, and the plea hit on was
that 1T constituted a taking Of property
without due process of law. which was
a violation Of the Constitution of tho
United States. The argument ran
thus: The railroad property was worth
certain amount. as shown bv its
books. This was the amount carried
on tne BOOKS as investment in road and
equipment. The railroads claimed the
constitutional right to earn a fair re
turn Ell this value and the courts up-
held them.
The counter move on the part of
Shippers and state legislatures was to
claim that the investment in road and
equipment figures were not representa-
tive of the facts and since not onlv
state railroad commissions and state
legislatures had been overrnled by the
courts in regard to confiscatory rates,
but also the Interstate Commerce Com.
mission had been similarly over ruled
lhe commlssion began a campaign to
nave Congress authorize it to make a
Valuatlon of American railroads.
The railroad officers and representa-
tIves strongly opposed the project
" hetner or not this was from guilty
conscience of bankers and those who
had promoted railroad projects. makes
no difference now. Some people. an
doubtedly, opposed the valuation pro
Ject on tho sound ground that there
was no necessity for it. but many prob.
ably really had fear of what il MIGHT
show S'N
New-York tribune., 1922-02-05
Rock Islands Valuation
Above First Investment
Original Estimate Put at S23:5. .O(O. 600.
and Now !. G.. G.. Has Valued Property
al S252 100000 4

My about 10 cent Of the Of
States has been tentatively
Commission Bureau of the large
abroad systems namely the Chicago, Rock
New-York tribune., 1922-02-05
Serrice Corporations

For 1921 personal service corpora
+,ons are not subject TO income tax.
hu. their stockholders are taxed in the
came manner as the members of a
partnership. The revenue act of 1921,
boucyer. imposes taxes on personal
service corporations for 1922 and
thereafter, the same as other corpora
.;ons. The opinion of the United
states Supreme Court in the stock
dividend case has raised doubt ms to
the validity Of the tax imposed on
stockholders Of personal service cor
norations under the revenue act of
lels. and, therefore. to provide for
the contingency Of decision adverse
n the government, the revenue act of
1921 imposes an alternative tax on
nersonal service corporations for the
years 1918. 1919. 1920 and 1921 equal
% the income, war profits and excess
profits taxes imposed by the 1918 act
or BY the 1921 act
The new law provides that if by
final ADJUDICATION the tax on stock
holders is declared invalid every per-
sonal service corporation is required
to make return of income received
during each of the years mentioned
on or Defore the lJtn QaN or the sixth
month after the date of such final
adjudication. in the manner prescribed
BY law for other corporations.
Where such returns are filed the
taxes paid by the stockholders shall be
credited against the corporation tax
upon the Joint application of the cor
roration and the individual stockhold-
ers Claims for credit or refund Of
taxes paid by individual stockholders
under the revenue act of 1918 will be
allowed i filed within six months after
the date OF entry of the decree declar-
ing the tax illegal. If, however, no
shareholder or member Of personal
service corporation files claim withi-,
such period Of six months, the personal
service corporation viii not be subject
10 the alternative taN NroVidcd for.
New-York tribune., 1922-02-05
Laying the Ghost

Those who pointed to the impossi-
blity Of putting really scientific and
accurate valuation upon the railroads $
have been proved right, but even these
sound economies have for the greater
part come to the conclusion that while
New-York tribune., 1922-02-05
Dearborn Economics as a Cure for Evils
1|'at Beset Mankind Critically Examined
WOodlOck Points Out Rea-
sons Why the Attack
OH Bankers Fails to Have
Slightest Effect on Him
Ford's Easy Money Plea
Value of Gold and Silver Is
Discussed Pro and Con
by Weekly and Critic

(FoHowin9 is an analytical criticism
Of on article on money arhich appeared
IN Henry Ford's "Dedrborn Ia,depen
ent' on January c9. Mr.. Noodlock has
discussed the article paragraph by para
graph from the standpoint Of orthodox
economies. In note accompanying the
article 1t qcas pointed out that "Ford
fhdring abolished the Jc,cish raceD is
noW preparing to lead the American
people from the bondage Of the banks
into the lond Of promise toring with
milk. honey aud cheap money" Afr.
v oodtoch as q former ncUspd per editor
dnd IS author Of "Thc Anatomy of a
Railroad Report" Financial Editor.)
By Thomas Woodlock
kkXXT THAT is money? Money
w is the accepted medium
Of exchange in any po-
litical unit exercising complete ma.
tional power"
Correct, but incomplete; money
is also the measure of price.
The important word in the above
definition is the word accepted.
That thing shall function as
money it must be acceptable.
"Of what is it made? 1t is i'm.
material. The decree Of govern
ment that gold or silver properly
certified shall bo a legal tender
makes metal money. Similar GER
tification of any other material or
thing of value would have the same
effect"
The third sentence of this paragraph
is absolutely untrue and contains the
fundamental fallacy of all "cheap
money" theories. 1t is not the govern
ment stamp of "legal tender" quality
that makes gold coin money: it is the
fact that all people everywhere Gin the
civilized world) at all times desire gold
that makes gold money. 1t is always
accepted and always acceptable. The
government stamp merely certifies
weight and tineness-which weight and
tincncss give the value to the coin.
That this is true is evident from the
fact that gold coins of various coun-
tries exchange freely on the basis of
eight and fineness. Value is intrinsic
in the metal and is not given by the
stamp
New-York tribune., 1922-02-05

PARTNERSHIPS as sutU arc not SUD
;.c.. 70 tax. but must file returns show
;pr the amount of their gross income.
..S;isowable III deductions and net income.
The individual partners are required
- include in their individual returns
heir distributive shares of net income,
whether distributed or not, and are
taYed thereon in their individual ca
rarities.
New-York tribune., 1922-02-05

provision is that the normal tax for
,ne mead of gamily, or married per
son hv'ng with husband or wife' on
income up to s5,020.s2, is 500 less Sis
;or each dependent, plus the excess of
income over $4,000. instead of a
straight per cent on income over the
personal exemption of $4,000 plus
SIVO for each dennndnrt FNN
Imperial Valley press., 1922-08-16
CalexicO News

CALEXICO, Aug. 16.-Dr. c. Till
mans has returned from visit to Los
Angeles where he was entertained by
his brother, a physician of that city.
City Attorney William E. Gindey
returned from his vacation in San
Diego just long enough to attend last
night s meeting of the city council.
He returned to the coast city this
morning.
Patrick j. Cooney, local attorney.
has gone to San Francisco for a week IS
visit.
Carley Wilmington and Marvin Al.
len, businessmen of Mexicali, are
visiting here from their summer homes
in San Diego.
Fred r. Jacobs left for Los Angel
es this morning to be gone the bal
ance of the week.
r. B. Corcoran, secretary of the
chamber of commerce, returned from
Los Angeles today.
John Mikedes, who disappeared
from this city over two years ago has
returned to Calexieo to reestablish the
bakery he formerly conducted here.
Imperial Valley press., 1922-08-16
slHEAIRESA
"BAcK PAY, TOMORROW
SH163RzE

"Back Pay" based on the famous
novel by Fannie Hurst, will be the at
traction at the Palace airdome Thurs
day. The story tells of young coun-
try girl who is in love with q delivery |
boy in the small town where they both
live. Later the girl goes to New York |
and soon finds herself swallowed up in
the mad whirl of Broadway's night |
life, with plenty of money, costly |
jewels, elegant clothes, and a large
apartment. She lives in the fastest of
fast sets and forgets all about her
small town sweetheart. The latter
joins the army when the United States
enters the world war, and is brought
back badly wounded. Word of his con-
dition reaches the girl who visits him
and sees that he has but a few weeks
to live. To bring some comfort to him
in his misery, she marries him and
nurses him until he dies. She then
continues her old life, though haunted
by night by visions of the young sol
dier rebuking her. Deciding the life
she is leading is all sham, she aban-
dons her splendid home and obtains an
honest position, where she finds solace
and contentment. Sena Owen in the
part of the girl and Matt Moore as her
sweetheart, play the leading roles, sup
ported by an able cast.
AT AIRDOME TONIGHT
The Palace airdome repeats stir
ring picture of the tropics tonight
with Jack Holt playing the leading
part in "The Man Unconquerable.
Holt has the part of young man
whipped into terrific exertions by the
admiration of a girl, against as vigor-
Gus yillainy in pearl poaching adven-
ture as anyone cares to look at.
Atmospherically, the picture is al
most as good as trip down into the
South Seas, for it has the settings and
locations of that part of the world re-
produced with an adherence to detail.
Prominent among the players are Syi-
via Dreamer, leading woman, Clarence
Burton, Jean de Briac and Edwin
Stevens.
Imperial Valley press., 1922-08-16

ter plans TO remain with her mother
until the latter part # September.
Bill Meyers has returned from two
weeks vacation in and arouni San
Francisco.
George w. Anderson from Ell Centre,
president of the Imperial Valley Hard
ware Co., was a business visitor in
Holtville Monday.
Miss Gladys Largent was busy
shopper here recently.
Miss Esther Gillett has re.urne,,
from Jacumba and plans to keep
house for her father until the rets of
the family returns the latter part of
the month.
Miss Laura Williams from Alan
district was recent visitor in town.
Mrs. Allan Harvey and Mrs. Earn
est Edwards were visitors in town yea-
terday.
Benjamin II. Harris, general roml
Imperial Valley press., 1922-08-16
SAN FRANCISCO MARKETS

Barley, spot feed, 1.1714@l.20; ship
ping, 1.25M1.35; wheat, 1.75Ml 80;
white Egyptian corn, 2.Oo@21o; oats
1.60@1.75.
Steers, No. !, 61a@7; second quality.
HM6K: cows and heifers, No. /, Az
@4a4; calves, light weight, s@9;
heavy, 507.
Hard, fat, grain fed hogs, weighing
125 to 200 lbs, 121Ac; weighing 25o to
800 lbs, 1013c.
Onions, locals, 65@1.25; sweet pota
toes. 507; squash, 30@40; green corn
Imperial, 75@S5; watermelons, 11a@
2l5.
Imperial Valley press., 1922-08-16

San Diego.
Officer J. II. Applegate Of the FL
Centre police department, is on duty
again today following two weeks vaca-
tion to the coast.
O. J. Renfrew, county development
agent, and j. Roy Adams, county super
visor, left this afternoon for Los An
geles to attend the annual meeting ana
luncheon of the All Year club of
Southern California at the Athletic
club in Los Angeles, Thursday after
noon. This club has as its object, the
all year boosting of Southern Califor-
MIA, and pays particular attention to
propaganda on California to be sent
east.
C. C. Jenkins of Imperial was Wis
itor in El Centre today.
Sam Taylor of Brawley will leave
leave Friday for a two weeks vacation
in the northern part of the state.
G. A. Sears, district supervisor of the
International Correspondence school
was down from San Diego on business.
Walter Aufderhide of the Imperial
Valley Hardware Co., who left the
early part of the month for Pittsburgh,
Will return to the valley September l..
Mr.. and Mrs G.. D. Preston leave to-
day for two weeks trip on TIC coast.
Mrs. Ethel Shawley and daughter
have arrived in town after a months
vacation in Coronado Tent City.
Mrs. Clifton Parsons leaves today for
Los Angeles for two weeks, where she
will be the guests of Mrs. Ed. Hall.
Fred Williams of the Imperial Tee &
Co. left last night for
short business trip to Los Angeles.
Clifford Coggins has been in Water
District No. shaking hands with
friends.
Major Cook returned yesterday from
Venice where he went to visit his
wife.
Miss Cornelia Clark leaves today
to visit her father and uncle. She will
then enter college at Berkeley.
Mrs. David Keep from Calexico is
visiting her mother, Mrs. E. j. Clark.
Cal Mooseau drove to Holtville and
Highline yesterday.
Don C. Bitler returned last evening
from vacation trip to Stillwell, Ncv-
ada. On the return trip he attended
the meeting of the California State
Bar association IN Sap Francisco. Mrs.
BitIer viii remain with her family in
Stillwcli until October.
Among FL Centre people registered
at the st. James in San Diego last
week were Mrs. F. NJ. Sherwood and
w. II. Tyler.
Trueman Thompson, formerly of FL
Centre, and now located in Santa Bar
bara, is visiting relatives here.
Attorney E. r. Utley was campaign
ing in Calipatria yesterday.
Charles f. Scott left yesterday for
the Bard district to do some cam
paigning and renew acquaintanccs
made on the Fourth of July trip.
Imperial Valley press., 1922-08-16
HOltville News

uOLTvILLE, Aug. 16. - George
Tally was recent business visitor
from El Centre.
Mr.. and Mrs. Fred Jarboe have re-
turned for few days to the valley
from their cottage in the Laguna
mountains.
Mrs. r. C. Hoover plans to leave
the latter part of this week for San
Diego for visit with her mother. She
expects to remain until the middle of
September.
Mrs. Z. l.. Stevenson returned Mon
day night from two weeks vacation
in Los Angeles and vicinity.
Ray Streeter left yesterday for Ber
kelley where he will attend the Uni
versity of California. This is Ray s
second year in college.
Sam Rankin is home again after his
vacation of few days in Los Angel
es and vicinity.
Eldred Ferguson and Joe Holmes
have gone on two weeks vacation.
They plan to drive to Big Bear lake
on a hunting trip.
Tim Attencil has received word 0f
the illness of his father who lives in
Pomona.
Gordon Schneider has returned from
few days spent in Los Angeles.
Barney Burke has returned from
San Diego where ne visited his wife
and baby for few days.
Mr.. and Mrs. f. NJ. Baxter have
gone to San Diego. Mr.. Baxter will
return in two weeks while Mrs. Bax