davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-10-15

Forecasting as a gentle art received
all but Knockout blow when the
Giants won four straight games from
the Yankees in the recent world series.
The dope batted zero and has since
been in disrepute. There is another
side to the picture. Occasionally the
expected does occur, The Standard Oil
companies in recently declaring stock
dividends, have fulfilled predictions
which were widely circulated. The
dope, repulsed on the diamond, has
been staging comeback in the field
of finance.
In it's presentation of ar. y. r. the
Theater Guild makes fantastic con-
tribution to the study of the Labor
problem, The odd. weird play from the
pen of Czecho-S -Slovakian author re-
minds one that the purpose of life and
living is not simply to manufacture
goods cheaply, but to produce human
happiness. This satiric melodraana
carries to reductio ad adsurdum the
theory Of efficiency in modern eco
nomic organization 1t rejects man as
IN imperfect machine and constructs
fsrt Ifieal nieaueers called rob is, @iiich
New-York tribune., 1922-10-15
Pendulum Swinging Back

A year ago, when depression had
about reached it's lowest point, the
chief subject in merchandising circles
was price. Even the stores that catered
to the so-called wealthy classc5. We're
handline, some merchane.-e Of low
quality and low price in order 10 keep
up the { volume of trade. Sonc stores
went farther than others in this di-
rection few steadfastly refused to
lower their quality standards and suf-
fered from a lack of volume.
The pendulum, according to leading
merchants, is now swinging back the
other way, largely as result of the
ing merchandise.
That this situation is not local to
New York, but country wide, was vivid
ly illustrated by the conversation that
ensued last week, when the vice-presi-
dent of shoe manufacturing concern
New-York tribune., 1922-10-15

tne par value Of the common stock had
already been changed into the NJ 'aT at
smaller denomination. s'' -
IN Ill the announcements nronos;na
tne capltauzing Of undivided snrn,us
.ne companies stressed the increasinp n
dispfoportlon between the amount n
issued capital and the net assets ra-
suising from the profitable employment
OIL surplus earnings in past years. Re
uuctlon lnthe par value Of the shares
WY referred to as making possible A
Wi9er olstribntion among EMPLOYEES
and the public generally
While stock dividend declarations Nv
the Standard Oil group this wear NAV
nave been influenced by that feature
OF the revenue act imposing a fat tax
ol ~ n per, cent on capital gains. these
companies have always been liberal Il,
their share distributions.
The policy Of the segregated com
panies of putting back surplus earn
'ngs INTO the properties had resulted in
series of stock dividends before the
enactment of Congress declaring stock
dlVldends taxable as income Between
the GATE OF the old Standard Oil dis
solution and 1917 there were twenty
one stock dividends in this grown
representing total distribution in
stock of S2So, 100000 par value. having
an average market value at the present
time of more than three times that
amount.
frior to the war there were seven
instances of subscription rights at mar
involving the distribution of valuable
privileges on sal 100000 par value Of
stock. The decision of the United
States Supreme Court that stock diyi-
aends were not income and could not
pe taxed as such made possible these
assumptions on g wide scale by cor
porations generally.
The disparity between the ou,sta,d.
ing capitalizations of leading memhars
OF the Standard Oil group and tbeir
surplus account is indicated bv the
fo''owing table showing the Apures as
Of the close of 1921. ss
New-York tribune., 1922-10-15
Considerable Gains.
Shown LIN Swedish
Business Figures

Special Foreign Financial Correspondence
SIoCkHOLM, Oct. 1.-The Swedish
Forelgn Offlce has just issued it's latest
quarterly report on financial CONNER
cIal and industrial conditions in Swe-
den, based on the statistics of the Syue-
dish Board of Trade. This renort. the
| most optimistic issued since the end of
the war, shows that considerable nd
vance in the volume Of industrial pro-
drctlon has taken place since the hot
tom of the depression was reached in
the middle Of 1921
Shipments of lumber and wood prod
uets nave reached the pre-war level of
about 100000 standards for the year
at the present rate of Improvement
The demand for wood pulp IS brisk and
the latest figures for sulphite show
that the output of the mills has
reached rs per cent of capacity. Paper
is moving rapidly and a general 10 per
cent advance in quotations is now
under discussion.
In the textile industry practically
the whole force of workers is now en-
pioyed. In other industries, however.
such as iron and steel and mechanical
products, there is still room for i'm
provement. Prices of all exports have
as a rule been stabilized, though there
are upward trends IN certain lines, The
total volume of exports, says the re-
port, has now reached the same level
as in 1920. which was we'll above that
Of 1913, while the imports still rauain
comparatively los.
Discussing internal money and baraa.
ing conditions, the report says the
worst of the liquidation period has
passed by. The three large banks III
Stockholm, which have branch Offices
all over the country, are as stroEg s5lsl
important as before The crisis.
New-York tribune., 1922-10-15
Rates and Economic LaaU

''The commission could not, nor could
any one else, foresee the extent of the
business depression that set in in the
latter part of 1920, short time after
the effective date of the rate increase
in the latter pare of August But sup
pose the commission had foreseen it
exactly. What could it have done?
Placed. the rates still higher, or fixed
them at lower level with the hope of
lessening the trade depression?
Either course would have been fu-
tile. The result of this depression has
shown that no matter what valuation
may be finally placed on the carriers
and no matter what may be the rates
based thereon, however fair and true
such valuation may be and however
able and sincere may be the attempt TO
adjust the rates to such valuation, the
actual returns to the carriers will in
the main always be governed by the
same inexorabIe economic laws that
affect any other commercial enterprise
"As with every question that is not
well understood, this rate problem has
its peculiar effects on the general pub
lie in various ways During recen.
months, but before the rate reduction
New-York tribune., 1922-10-15
Cooperation OF u. S.
on Foreign Issues

The brief report Of the foreign se-e
curities committeH lead by Albert H.
Wiggin, chairman Of the Chase Ssvuri.
ties Corporation. New York, touches
upon the closer cooperation estab-
lished with the United States govern
nient in .espect % issuance OF foreign
government .oan- mere and reviews the
position o. Russian aud Mes ican OBJ
legations he'd in this country On
foreign internal loans, il says.
"A very considerable amount * ror-
eign internal securities has beer,
placed with investors in thi- co oartry.
A large portion Of such 1ecus .ies rep
resent, rot issues made N tuis ccun-
try with responsible banking sponsor
ship, bat securities that h<ve been
brought in by a great number q, trdi-
vidual houses. and which havs nc Of,
fetal narket here. Yoi +. conhntttee
has recognized the danger snat some oe
the certificates represe .,tug such Is
sues might "a fraudulent and has gigen
considerable amount AZ thought TO
the question Of psod.l.ag some means
for establishing the authenticity of all
foreign interr4. Issues hc,d b5 inves-
tors in this coustry or offered for sale
in this country. There are, however.
a g,eat many di.-iculres ia ene way
Of the practical operation OF any plan
provfGi1, for the accomplishment OF
this pareese. and your committee has
thus far arrived at no satisfactory So
l.tt a.
New-York tribune., 1922-10-15
Outstanding
Other s'Melons'' Seen

feature of the recent seculation on
the Stock Exchange has been the SEN
sat'on;I gains by the high priced
issues, or the securities of those con-
Lanies with Il large surplus account.
Ihls has led to the belief that event
ually the directors will see fit to cap
7ltallze their profits put back into the
properties in the form Of sock divi
dens. The lis includes wide group
and n otonly takes in industrial con-
Germs but railroad companies as well.
although the number in the latter
group, is small in comparison with cor
porations that are not regulated, to d
large extent, by the government.
Standard Oil share distributions arc
expected to containue. Among those
that have not yet acted and which are
considered as likely to declare stock
do'vidends, possibly before the end
OF the year, may be mentioned Stand
ard Oil of Kansas, Magnolia Petroleum,
Atlantic Refining and Standard Oil of
Indiana.
Among other idustrials Wall Street
expects stock dividend declarations
some day by such companies as Amer
lean Car and Foundry, American Loco
motive and Baldwin Locomotive.
New-York tribune., 1922-10-15

by the commission. effective July +.
ls22, the shippers in general insisted
taat tiae nigh rates retarded busine sa.
AND owing to this attitude of the shin
3pers the rates probably did so 10 sone
extent, although it was practically de-.
nied by the railroads executives who
however, admitted that rates were too
hsgn in many cases and should be re-
daeed as soon as practicable.
The railroad managers do not like
high rates. Il is safe to say that nor
within the last twenty years have tae
railroads made application for rate in
creases TOR any other reason than thas
they we're confronted with the neces-
sity for raising additional needed rev
enue TO meet their legitimate charges
lney know only too well the effect OF
Sste increases Oh business and indus
trles along their lines. Moreover.
every increase Of this kind is made In.
excuse to exact higher prices, whether
lhefe may be any real justification for
1t or not.
in this controversy over yaluations
ana the basing of rates thereon. tbere
mas been much discussion AS to the
eilect that the public is entitled to
iaif and reasonable rates Granted
But that right is no greater than the
rlgnt OF the roads to fair and .rea-
sonabie return. Business practice NAV
at times compel a road TO take certain
business at loss, but certainly there
is nothing IN law or equity to compel
any OF US to serve the rest % us under
such conditions. 1t is repugnant to
the Fifth Amendment.
Subject to the COMMISSIONS review
the fixing Of rates is business mat
yer between the carriers and the chip
freedom of action they could he trusted
to get together and put rates on a
sound business haste
New-York tribune., 1922-10-15
For Wealthy Taxpayer

It will be found in actual practice,
according to Mr.. Frey, that the net
gsn provision will only be advanta-
gsous to taxpayer when his income
exceeds S32 600.
The natural assumption is that the
seclaration Of large stock diidends this
year by Standard Oil companies and a
aumber of other industrial concerns,
| sI strong in surplus, was designed
specially for the advantage of those
! llslders who have held their stock for
! Two years or more. Liquidation of
4Gsse holdings to gain the benefits of
Ne 12h per cent caluse is not only
sed by increasing the volume of
Xxx outstanding, but by further aug
ating the total through splitting up
&stock mo unis of lower par value.
is generally, recognized in Wall
leet that any concerted attempt on
he part Of holders of Standard Oil to
I'll stock quoted anywhere between
a@ and $500 share would soon cut
dastically into the capital gains" BY
greatly increasing the volume sof stock
lac process Of liquidation is made much
.easier
VI the stock dividend declarations
within recent weeks those announced
BY the Standard Oil group stand out
as the most important. Other ''melons''
pave been cut by the Gulf Oil Corpor-
alton, controlled by the Mellon inter
Fats Of Pittsburgh; the National Bis
|ait Company, and the American
|sseiator Company.
The stock dividend plans of the
ssndard Oil Company of New York
sd Standard Oil Company of Kentucky
Eovide for reduction of the par value
the shares from 500 to sos. In the
Csc of the 400 per cent stol. : dividend
Y the Standard Oil Company of New
srrseV this is not neeessaru hacanro
New-York tribune., 1922-10-15
Suggests Plan to Fight
Fraudulent ADVERTISING

The publicity committee, OF which
John W. MasGrego.. Of Glover & Mac
Gregor, Pittsburgh. IS cha;rmaf., res
questing that it be hereafter designated
the investment education committee.
set forth a program for combating
fraudulent advertising and the sale
of worthless securities. The matter OF
its report is Sc. foitn largely mellow.
The publicity committee betives the
Investment BaaAers Association Of
America should establish an edeca-
tiosal bureau, under competent sii-
rector, which shall join in the grow
ing national movement against worth
less and fraudulent securities. II Is
proposed by The committee that ibis
bureau shall not oniy cooperate with
existing egencies, official and otner-
wise, now serving toward this desired
end, co-ordinating It's efforts wherever
possible. but that, within its special
field. il shall endeavor TO inaeglrate8
national educational CAM .saagn In the
name of our association. Tsts members
of the committee believe that the ti.ne
has come when the association must
taks definite stand upon this challeag-
ing ssuc, or fail in its obligation to-
the country and TO itself. II is pro-
posed to make modest beginning,
along practicSi and conservative lines,
always under the guidance and close
control Of the goyean:ag offcia9S Of
the association, and ia expand only as
experience j,sfihes
= mast be admitted that drives
against fraud must be co sstasia and NIT
spasnsodic if real progress &, to be cx
pected The committee believes, Nv issss
augurpting and then extending Chs
asapaign as cis'culYs anc6s slcve1aps
what satisfactory results can be ak.
S4aimed. Is
New-York tribune., 1922-10-15


What is happening, according to one
keen department store executive, is
that trade is once more returning to its
accustomed grooves.
There will always be sale for a
certain amount of low grade goods, for
medium grade goods and for the best
that can be produced in any given
line" he said. "The big economic up
heaval threw the burden of demand
out of gear. Literally millions of peo-
pie were shifted from their accus-
toned economic groove, and this was
reflected mighty soon in the character
of demand as registered with the
stores. There was big shift in store
patronage. BY that / mean people who
were trading with one store or group
of stores in certain class suddenly
found themselves richer or poorer and
SO sought other places with which to
deal. A perusal Of the charge accounts
of any store in New York will show
that old customers dropped off and
rev ones were added. With the gradual
readjustment of business and the
sinking and rising of people to their
accustomed levels, trade is once more
resumiup it's normal sspects
New-York tribune., 1922-10-15
Local Groups Combat
Hy-by-Nighf Schemes

;, Development of the work of the
Fi,raud9ient Advertising Comm. ittee
through the formation by almost all Of
the sixteen groups of the association
OF local fraudulent advertising COM
mittees, according to report submit
ted by james c. Fenhagen, OF Roo-rt
Garrett d. Sons, Baltimore, chairman.
mas made possible intensive campaigns
tor securing evidence against and
effecting the discontinuance of Fly
h,%-night" schemes in the various
districts.
The report summarizes the accom-
plishments Of the different local com
mittees, practically all of which have
co-operated with district attorneys and
private organizations with like purpose
in their particular communities. The
committees have devoted most of their
time to investigating eases of fraud,
to giving publicity to the results of
these exposures, to obtaining prosecu-
tlons where warranted, and to secur-
ing the consent OF newspapers TO the
elimination of fraudulent advertising
from their columns.
New-York tribune., 1922-10-15

proper standing. The committee calls,
for greater consideration Of the inves-
tor IN presenting muaicipal issues, say
ing:
There is need for the formulation.
OF set Of principles which members
could use in preparing financial state
ments of municipalities to be presented
70 the public through selling literature
While financial statements OF corpora
t5ons have attained an accepted stand
ard which is now uuvergally followed,
financial statements Of muh cipalities
are now presented 10 the pubiic, Ia
widely varying forms, with the result
that some do show accurately the true
financial condition of the municipali-
ties. while others are very misleading
loar committee has not arrived at any
conclusive recommendations except the
fundamental one that the facts should
be stated in such way that the non-
technical reader can understand shem.
and that no important facts be omitted
which are essential 10 a broad under
standing of the financial status of the
municipality. We regard the question
Of whether the general taxing power
OF the municipality IL available for
ultimate payment. or whether payment
rs limited TO certain limits or to GER
80" Illus VI ftFeiaes, aS Adctor VI
prime Importance.
How far can municipality safely
go in the creation of public debt, and
at what point in the process should
legislative or other restrictions apply
to prevent an overburdenipg of the-
population and to safeguard the inter
ests Of investors?
IF the interests of municipal bond
investors are to be properly safe
guarded there must be scientific
study of this problem to determine
what legislative restrictions should be
made to apply in order to protect
municipalities against themselves with
out making the restrictions so strin-
gent as to hamper the reasonable do
velopment of public facilities.
New-York tribune., 1922-10-15
Objections TO Urging
Liberty Bond S,citcl,es

The government bond committee
headed by ]. r. Edwards, Of .he Fifty
third National Bank, Cincinnati, de-
votes most of its report to a review
of the governments refunding opera
tions and TO a statement of the public
debt, Its chief gecommendatio fol-
lows:
There is one situation to which W.
respectfully call your particular -
tention, and this is the frequency with
which members of the /. B. A., as well
as others, have advertised, sent out
circulars and instituted regular cam
paigns the object of which was the
exchange of Liberty bonds and Victory
notes in the hands of investors for
other securities.
I'VE think the time is not ripe to
let down the bars to our members to
broadcast this class of recommended
tion. While it is true that the great
necessity of holding Liberty bonds has
row passed, and we might. under Ger
tain circumstances, feel perfectly justi-,
fed, in individual cases, IN recon-
nending the sale Of Liberty bonds and
|. the purchase of longer term, higher
yield or taxable securities. as the.
case may be, still there appear TO be.
many reasons why campaigns of this
character should not be permitted in
the selfish interest OF the investment
banker, as it opens wide the gate for
the dealer in fraudulent securities to
prey upon the small investor
''On the other hama, your committee
realizes, and so freely states. that
there is not, and caBnot be, any objec-
tion on the part OF the Treasury De-
partnent or your committee to the
giving of sound advice to any holders
of government securities who may be-
contemplating tbs exchange of same
for other forms of investment.
New-York tribune., 1922-10-15

as Vacuum Oil. In connection with
the New Jersey company, in view Of it's
control of Imperial Oil and Interna-
tional Petroleum, the stock dividend
has come as a welcome development.
There is considerable revival of
British interest in the Canadian situa-
ton, and this week comes word that
Canadian miaing stocks are enjoying
a small boom in the London market.
The Britisher is becoming more hope
1ul on Canada largely because Cana
dians are taking a more sympathetic
view towards him and what he has al
ready done for this country, while the
steadily growing American interest in
this countrp is not without its effect.
New-York tribune., 1922-10-15
Consumers Reaching Against
Cheap Class of Merchandise
The Demand for Higher Grade Goods Has Caught
Some of the Retailers by Surprise and Many
Find Themselves Without Sufficient Stocks

the marked
months the change
customers The day of cheap
sell
and the trend definitely expanding
grades of goods.
10 retailers this
of them frankly admit that the development
unprepared with sufficient stocks
of
New-York tribune., 1922-10-15

his endeavor by the association
VIII not represent a departure into 8
new field of activities. but the SCOPE
or Its operations is to be considerably
extended. The spirit evident in the
conventien discussions and addresses
revealed growing recognition and
acceptance by the association of the
investment bankers responsibility in
'nis connection 1t is a situation in
whleh sound business policy conforms
eyactly with proper ethical procedure
. The public viewpoint and interes
was observed in all reports and adj
dresses at the convention, excenting
such as dealt strictly with internal
ASSOCIATION questions. Thus the i'm
poItance OF customer ownershipn or
pups1c utlllty corporations and the is.
suahce OF Junior securities by these
concerns to round out their financial
Structure was brought out: the assc-
c'at1on went on record as opnosin y
campaigns to induce the EXCHANGE of
united States Government securitins :
Tor other investments; and clearar
statement of the financial facts behind
municipal bonds was urged.
Inc report, of the railroad securitie.
committee disclosed a distinctly ont
h'istlc sentiment on the part of bank
ers toward the credit outlook for thn
carriers. lt carried message of vital
i'hpert TO the holders of rail securities
:. its oeciaration that the final waltz
S.iohs OF the Interstate Commerce
commission wou'', show a prenondor-
ahce of carries under ratber p"'iIe 49,
over capitalized '''t''
summary of the high lights Of tbo
chief rerorts presented Ia H. oon,,a'' ~
t1on is appended hereui+h -"