davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-10-15
More Confidence I'm Canada
erops Moving at Record Rate; Heavy Volume of
train Passing Through Montreal; Strong De-
mand From y. S. for Pulp and Paper Securities
Sspeelal financial Correspondence. !,

sseesA Financial Correspondence
aoNfREAL, Oct. Further res
[V'a''oA Of eenfdence has resulted in
.snaoian business circles this week
rom the gradual clearing up of the
ssar East situation. Harvesting
throughout the West has made ex-
z 'fenely satisfactory progress, and
'' mas been quite noticeable bet
s''Asnt IN money conditions in the
aass as result. 1t is stated by au-
,9ol aorisles on the subject tnat the 1922
nsi. s.'mov'hg operation has been the
80 expeditions ever witnessed in the
a"Ion, despite the size of the crops,
y the record operation of 1914
Sag eclipsed. "''o" - i'i7
.spments Of grain through Mont
3 have also been of extremely heavy
ii Ss, easily surprising last years
ass s'ofo as established up to this
i, : now accepted as certainty
sn..s sh advance will be made in the
a,,. ,.s price Of newsprint for the first
,sv ~ OF 1923, with guesses as to the
tsa ps'ees ranging between SIS and
las ~ ton. 1t is presumed by some
sasr sne n.s,, canadian Export Paper Com
nd Nin pursue a conservative policy
,tionsane ne an initial increase to SIS,
iii ISL ~ some of the independent mills
n mopabiy bring their price up to
&sass, recently named by Interna-
=, fsper SECURITIES Recovering
s.s II and paper securities DURING tn
s.Fe /. continued their rather nota-
tba tb,sly' and fully three quarters
fsrs s9sses recorded on the war
tss,ass i've oeen recovered. Sentiment
! eliza THESE issues is distinctly
sal notable feature of the re-
s,s ssssylng Of these securities bas
q sae strong demand noted from
<ssfsre states. A canvass of bro
lssss;s asouses ~ by your correspondent
s;dd.ra tae TACT that American buying
ssseus .ss recently oeea more nu-
= but bss,. ~ the stock market there
|ffsssNs ,sss snss: oI interest so far as United
X, eek sp.lcaslon is. concerned. cScept-
~ shsrsp ps. Detroit United Railway.
iAse1 NJ q which have just l7een
asss Tron 9 per cent dividend
nep T. company, as viewed here.
ssssaai, passed the worst stages of its
ss slsoa slss period, ard whether It
sstter nsa ~ ,r,eeapitalize the organiza-
sool3 Wiii not matter great deal.
ssh y..sfa H.. = That this latter nlan has
aass; 3 s.ssa for the time being
strs g Interest. in the recent do
ssa keer .as 8 standard Oh shares has
In . g 2 fair proportion 81 the.
ass1 ~ the Dominion, as we'll
New-York tribune., 1922-10-15

II P. MORGAN a. CO. will transmit
J' through checks drawn on local
banks S50,00O,000 to the Federal Re-
serve Bank of New York tomorrow,
The private banking firm will act as
the agent of the British Treasury ana
the Reserve Bank as fiscal representa-
tive of the United States Treasury
The disbursement will represent part
payment Of interest on the British debt
to the United States Treasury. and the
fact of payment will call attention
Throughout the world to the premier
character of British credit among the
Old World nations.
Sir Robert Horne, Chancellor of the
british Exchequer, and other members
of the British debt mission will sail
for the United States shortly after the
first of next month to discuss the
broad question of refunding. The at
mosphere for successful negotiation
has been cleared by the actual ship
ment of gold for interest account.
Reginald McKenna, former Chancellor
of the Exchequer. recently informed
American bankers that Britain could
and would pay her war debt to the
United States, and that holdings of
foreign securities were still twice to
three times as large as the principal
amount of the obligatioI-
Z 3 "a -. Ii
In connection with the proposition
sdvanced in some quarters that it
might be wise for the United States to
cancel Great Britain's obligation If she
would wipe out an equal amount Of
s'cbt owed her by Continental nations,
fs q we'll to remember that intergov-
p, aiis have yas'v'ns srte.i
New-York tribune., 1922-10-15
Protection Of the lnpestor Is Special Job
" Investment Banker, Convention Holds
Security Marketers
! and Worthless
Committee on
dercapitalized; !;
Would Broaden Scope of Fight on Fraudulent Advertising
ObIIgaons; Educational Campaign for Public Is Planned;
Railroads Believes Complete Data Will Show
Customer Ownership in Public Utilities Is Stressed

III. MONTE, Calf, deveonnenf customer
proecon by the leading banking
promises TO be the annual
oh of the Ar,era
bucket shop failures and the exposition
Ihe last
cation whose membership
organizations throughout the its supor to the
Tor suppression
securities and to take the education Of h
Puplc IN the matter of prncpes
New-York tribune., 1922-10-15

1t Is probable that this report had
much to do with causing the passage
OF the valuation act. At the time it
was expected that the work of yalua-
tton could be completed in from three
TO fve years, at cost of S6000,0OO 20
Sl0,Oo0,OO0 One original estimate of
the cost of, valuing the railroads was
as low as $40 mile. in one case the
commission expended $110 a mile in
investigating original cost alone of a
railroad constructed within the last
Twenty-Five years. According to the
report of the presidents conference
committee, under date of January 90.
1922, the Glass | carriers reporting 20
that committee had expended $54 ,120.-
'57 up to June 80, 1921. The expendi-
lures OF the commissions bureau of
valuation to the same date were S2I. =
4e2, ,S09, total Of $75, ,583,76 and the
end is not yet
The report then reviews the Difficult
ties that have been encountered in
making valuations, allowances for de-
preclatlon, determination Of original
cost to date, cost and value of lands.
golng-concern value and other complex
problems. The main purpose OF rail
road Valuation IS, OF course, rate fixing.
On this point the committee saws:
1T is easily conceivable that road
or all the roads of group, or of the
entire country, may be honestly CAPT.
talized and honestly and efficiently
managed, and still not be able to charge
| rates that will yield fair return on
the fair value of the property. In the
rate increase of 1920 the commission
fixed a tentative value for the roads
by groups aggregating $4,000, 900, 900
which was probably we'll within the fair
value of the properties, and then made
sincere attempt to adjust rates to
yield net operating income of per
cent on that amount; with what re-
suit? For the year 1921 the Glass l
roads in the Eastern Group earned 3.3
per cent, in the Southern 2.6Q per cent
and in the Western 3.5 per cent, with
an average percentage of 3.31 for these
roads as a whole.
New-York tribune., 1922-10-15
Urges Municipalities
Maintain Sinking Funds

The report Of the municipal securi-
tees committee, Of which Il. Z. Wake
field of the Weils-Dickey Company,
Minneapolis, Is chairman, emphasizes
1.-The Importance Of the collection by
municipalities Of sufficient money To
meet the sinking fuEds Of their debt.
Serial bond issues the committee de-
clares, arc now favored as more ecos
IN the announcement BY yers large
purchasers OF municipal securities,
principally Insurance c0raraisics. that
they would purchase no further Issues
Of municipal bends where isive 81 IA lion
showed that there existed ans failure.
tt maintain sinking Trnds at their
New-York tribune., 1922-10-15

laws in the Middle Western statos
fhere have been numerous amend
ments- to the interstate commerce act
nor connected with valuation, but we
are not now concerned with these.
ne valuation act, which is a part
OF the interstate commerce act, was APP
proved March l. 1918. Some two Of,
three years before that Congress-.
under its authority to regulate inter
state commerce, had had under consid-
GRAFTON a bill to regulate the issuance
OF securities of railroad corporations
engaged in Interstate commerce, and
authorlzed the appointment of com
mission to investigate and report with
reference thereto. The commission.
headed by Arthur T. Hadey, then
president of Yale University, in it's re-
port, submitted in 1911, advised against
such legislation pending a valaation Of
the property used in Interstate COM
New-York tribune., 1922-10-15

,.v In it's practical workings, ma
.sy;,lly reduces the amount of the tax
,s,s bv wealthy individuals holding
sroperty for more than two years, pro-
..;sss az course. that he sold at large
,,oft Instead of being subject to the
snr.ax the capital gains are taxed at a
"a. rate Of 1als per cent. Morris Frey,
assistant treasurer Of l-se Guaranty
rYus, Company, in series of articias
~ Tho T,ibune early in the year cited
.he foI,owine example to show how the
lax or capital gains applles;
a ssanminr that taxpayer in 1922
fo,1 4 factory building which cost
coma mi, in 1918 fer S650,000, the de-
nrssIasion on which from the date of
p.rchase to the date OF sale amounted
to sioo,000.
and 1918 for $4,000: and
8 Oil leases which cost in 1919 $@0,-
400 for $4,000; his total capital gains
would be $4,000, his capital losses
wouId be $50, 0,000 and his net capital
Igsin would be s5ao,ooe.
Assuming further that his ordinary
net income for 1922 from his business
and from interest on bonds is $1,000.
Instead Of paying the normal and sur
,ax on his total net income of $610O00
bs is permitted under the present law
to ray a tax of 121s per cent on his
cspitaI net gain of $4,000 and nor
mal and surtax on the ordinary net in
ecrne Of $4,000. II the taxpayer had
: personal exemption Of $4,000 his total
isy under the new method would be
$4,000, instead of 1924 ,44o, if the en-
tirs amount were subjected to the nor
NAL and surtax, thus resulting in
| sarinr Of S2A1 200
New-York tribune., 1922-10-15
Customer O,Unership''
in Public Utility Field

The growing Importance of ''cus-
toner owners - as an effective aiC
to financing the capital requirements
OF public utilities was stressed by the
Committee on Public Service Securities
in its report submitted BY John A
Prescott, chairman of the committee
Protection of the security and in
come Of the capital invested in the
final equities or common stocks of
public utilities" the committee re-
ported, evidently must be, as it
should be, the fundamental factor in
the development ofspub:.c utility SER
A much larger proportion of capital.
the committee stated. than has been
the practice in recent years, should, to
accord with sound principles, be here
after supplied by junior financing. "It
is generally understood" tie report of
the committee continued, that if
mortgage bonds are to- be readily sold
they must be protected not only by
sufficient equity or margin of security,
but also by "A satisfactory margin OF
divisihle income 1t is not so well un-
derstood by the public at least, that if
a preferred stock is to be readily sold
it also must, because It's participation
in profits is limited, have behind it
nl<rgin of security and of income
adequate to give it a high degree of
safety and reasonable assurance of
continuity of dividends
New-York tribune., 1922-10-15
Influences Accelerating
Melon Cutting Epidemic
stock Dividends Advantageous to Large
Taxpayers; Wider Distribution
of Shares Permitted

IMPORTANT contributing Of the epidemic &c stoel a
IN spliups, which have place pbn r.4
the Of 1921 in the reatnu a. 80
the have emanated from
its efforts national a6o
swn up expenditures ontemp imposition of ta ~
aed corporate Had been denaa ha
. afforded another Fastening process m
1rge surplus accounts stock dividends taxable
New-York tribune., 1922-10-15

values, just as bonds in the hands of
private investors do. The promise of
Great Britain to pay S1,0o0,000,O00 is
better than that Of Russia to pay a
similar amont. In this broad question:
of inter-Allied indebtedness the real
value of the debts as compared with
their nominal or face value must ba
considered.
New-York tribune., 1922-10-15
Ear,,ing Power Of Roads

The persistent rise of railroad secari-
ties for more than year, which has
been part Of general rec very of
quotations on stocks, represents q be-
lief on the part of speculators thas
New-York tribune., 1922-10-15

up state, met the general manager of
the retail stores Of another large high
grade shoe manufacturing firm that
retais its own product to a large ex-
tent.
How do you find business?" said the
New Yorker to the mp slater after the
introductions were over.
ut seems to be getting better" was
the reply. After q slight hesitation
he asked: "Pd like to ask you per-
sonal question if you don't mind"
Sure, go ahead"
"Well, / wonder how you people are
getting along. on your cheaper grades,
the shoes you do not make yourself,
the ones you buy to sell at lower
prices than those you produce your
selves.
"Say, that's point | want to ask
you about. In our stores we have no.
ticed that our shoes are selling we'll,
better than last year, in fact, while the
sales Of our cheaper shoes not made in
our factories are falling behind"
Same Trend Eueryaphere
'That is exactly our experience"
said the up-stater.< at had US worried
for while, and we couldn't explain
it, Our stores are scattered over a
pretty wide section of the country,
With all sorts of varying local condi-
tions, yet all our stores report the
same trend"
In further conversation the two shoe
men came to the conclusion that the
development they both had noticed was
the natural reaction of the general
public against poor merchandise.
Although the retail season in mems
fall and winter clothing has barely be-
gun and has been adversely affected hy
warm weather, several local clothing
merchants asserted that they have de-
tected better demand for good quai-
ity merchandise than was apparent last
year. eve had some hesitation abour
putting our highpriced merchandise in
our show windows" said one midtown
merchant, because of n sort of in
grained notion that most men were
looking for $25 and $40 suits and over
coats. So far this season, however, we
have sold more suits and overcoats
above $40 in price than we have below.
that price"
New-York tribune., 1922-10-15
Aftractire Capital

"It necessarily follSas that capital
must be secured in some form to supply
this final equity or margin Of safety
which is usually represented by capital
or common stocks. 1t should be ap-
parent, therefore, that the common
stock which represents the greatest
business risk is the foundation of the
whole financial structure How is
money to be attracted $50 this FORM
of investment? The seriousness of
this problem is now more generally rec
ognized by regulatory bodies and
should be made clear to the patrons of
the utilities. 1t should be mace evident
to all that before sufisient new caps.al
can be attracted into the e. on
stocks of the utility compares. at
least two fundamental conditions must
be met:
% There must De reasonable as.
suranee of the safety OF the prl;t.:.,,si
of the investment.
ca There must be reasonshi.Sas
surance Of an adequate and regular
dividend return.
Capital for the 6nal equity or COM
mon stock should be obtained primarily
from the penple Of tie commnnity
which is to c.sjoy the service, but If con-
ditions should be such that itscannot b..
~ +.sSu iottt tisSAst, ~ Htust ps sspoE II (.
in other money markets. Investors in
seci; marsets can receive no direct
ben ~ -,ola me development Of the
utility sersles i4sclf and must. there
fore, be attracted BY safeguards TO the
Investment and yields such IS sisl
seem attractive to their eyes. as COM
pared with other similar investment
opportunities.
s.indisputably, therefore, it would be
to the interest OF the community TO be
served that the rates should be ade-
auate to pay the entire cost of the
New-York tribune., 1922-10-15
Belieues Railroads
Are Undercapitalized

ne report of the committee on rail
road securities, headed by Piernont v
DAVIS, of the National CITY Com nav,
OF New York, in study of the Federal
valuation of railroads. concludes ~ al
the carriers appear not only undercan1
lta1zed, but that their real value is so
lhuch IN excess of their OUTSTANDING
| capltal biigattons that the result Of
Ine fuil hndings of the Bureau of
Valuation must have a salutary effect
on their credit. The committee savs.
AS to the claim from some quarters
OF overcapltalization. it may well he
ehat IN some instances where ovar-
capitalization may have occurred Il is
the direct result of the policy of NOT
granting sufficient rates to enable the
carrier to pay out OF earnings for en-
pendltures properly chargeable to
earnings, so that ut times the carrier
mas been forced to meet these expendi
tures through the use Of capital obIipa.
tions. Had there been always a true
and uniform method of accounting,
reas onable earnings, balanced cap
ltalization, the difficulties of valuation
would nave been much less 1t is a
dlfhcult matter to distinguish between
reasonable rates, rates that are less
than reasonable and .aces that are
more than reasonable. All these
thlngs nave had their effect on the
credit of the carriers"
Basis Of the Act
In presenting brief history Of the
basis of the valuation act the commits
tee reviews the fundamental principle
of public transportation
t'The state-i. e., the sovereign
power owns the public highways, and
the transportation of goods and pas
sengers thereon is a state function
and logically should be performed by
the state, but this service is delegated
by the state to private individuals or
corporations; hence both the right and
the duty of the state to control this
service.
"The Federal Constitution empowers
Congress TO regulate commerce with
foreign nations and among the several
states The first Federal legislation
dealing with the regulation of inter-
state commerce was the interstate
commerce act, approved February a.,
1887. Prior to that time there had
been great lack of uniformity among
the carriers a. to rates, practices and
methods of dealing with the public,
which gave rise to many state laws
and regulations, such as the granger
The New York herald., 1922-04-24
JOFFRE HERE TO-DAY
ON FIVE DAY VISIT
Faces Strenuous Schedule Be.
fore He Sails for France
I on Saturday.

The arrival of Marshal Joffre to-day
on the last leg of his trip around the
world will mark the beginning Of a
strenuous five days for the veteran
French military leader until he sails
for France on Saturday.
An official welcome has been ar
ranged by the Mayors Committee or
Receptions to Distinguished Guests, oi
which Rodman Wanamaker is chair
man. which will meet the Joffre party
at Pennsylvania Station on the train
from Washington, which is sched-
uled to arrive at 3:11 p. M. Mar.
shall Joffre will be accompanied BY
Nine. Joffre. their daughter, Col. Iss
lay. Major Davey and Capt. Malliere
the Marshars aids: Col. u. S. Grant Sd
and. perhaps. Hanaford MacNider. ma
tional commander of the American
Legion. The welcoming party will in
clude William +. Deegan. State com.
mander OF the American Legion; Gas.
ton Liebert, French Consul-General
and Rodmen Wanamaker
The Mayor will be waiting at the
City Hall and short ceremony will
be held rendering Marshal Joffre the
freedom of the city. after which the
party will go to the Seventh Regiment
Armory at Park avenue and Sixty-fiftf
street, where Marshal Joffre will be
greeted by various French societies
In the evening there will be q dinner
at the Ritz-Carlton of the Academy oi
Arts and Letters. and later the Mar.
shall has an invitation to attend the
aviator's ball at the Hotel Astor.
During his visit Marshal Joffre will
take part in the celebration of the Gen
Grant and Moliere anniversaries.
The New York herald., 1922-04-24
NAB CLEVER JIMMY
100000 BURGLAR
Detectives Capture James Lu-
zon and Find Vast Stores
of Rich Plunder.

Special Dispatch to THE NEW rosK HERALD
New York Herald Bureau.
Washington. ID. G.. April 20.
Charles Luzon. alias Clever jim
mie," self-confcssed escaped convict
and burglar, who boasts OF stealing
$500, 900 worth OF valuables in 200
burglaries. was arrested here last night.
A trunk said by the police TO peiong
to Luzon, was located In Baltimore this
afternoon and brought to Washington.
1t contained a complete set of burglars
tools
The prisoner has been the terror Of
the city for year. He admits that
he has stolen approximately 100000
worth Of jevelry from apartments and
residences here, but also confessed TO
having worked in Richmond, Baltimore
and other Eastern cities.
At Police Headquarters the prisoner
boasted Of what he had done. saying he
started stealing when he was 10 years
old.
Last fall / went to Havana with
$33, 900 in my pockets" he said, by way
OF illustrating the ease with which he
and brought only my skin-hom
In Detroit. the prisoner said. he was
arrested and helped the police to re-
cover approximately $4,000 worth of
jewelry that he had stolen from apart
mcnts. His long experience. he said.
made him a jewelry expert and when
he visited apartments he took only the
best jewelry from among what he found.
He melted the gold and sold metal and
stones separately.
Luzon said he had been arrested in
Chicago for burglary and sentenced 70
twenty years. He escaped from Joliet
prison and wandered about the country
until arrested in Detroit, where he gave
an assumed name and was sentenced
from two and a half to five years In the
state prison at Jackson. He was not
identified by the police as the escaped
man from Joliet and fled from the Mich
igan prison in 1920.
When overtaken i'm car yesterday
The New York herald., 1922-04-24
FIRE TIES UP BROADWAY.
Cars Delayed Two Hours-subway
Nearly Flooded.

Surface car traffic on Broadway was
tied up for nearly two hours and the
Broadway B. Il. 4. subway was flooded
to within an inch of the top OF the
rails at the Canal street station as a
result OF q fire that started yesterday
afternoon in the comb factory OF Sam
Shein at All Broadway and ate its way
to the roof.
Thomas Brophy. Fire Marshal. be-
lieves the fire was caused by short
circuit or by the overheating OF n vat
Of celluloid. All of the stock In the
the fire spread with lightning rapidly.
Shcin and seven employees went to the
fire escapes and descended to the Sec
ond floor. where they had trouble re-
leasing "A drop ladder. Policeman John
Quiglcy went to their assistance. While
lie was releasing the ladder there was
a back draft on the upper floors which
sent all OF the windows out into the
street. showering him and the other
men with glass. The policeman was
the only ono injured
In front OF the building there Is n
grating that admits air to the Canal
street station of the subway. The
water poured through this grating In
q cascade and down onto the station
platform. The drain pipes between the
tracks were not able to carry off the
water. with the result that Il rolled
along between the tracks for some dis
tance to the north The fire gave the
apparatus that responded to three
alarms a hard fight for more than an
hour.
The New York herald., 1922-04-24

Luzon. realizing that he was caught
submitted to arrest, although he had a
revolver in his pocket. another In his
grip and a blackjack in the car.
With Luzon when arrested was Mrs
Virginia Betty Carroll, an actress, who
gave her home as Baltimore. She toll.
the police she met Luzon in Baltimore
and accepted an invitation To ride over
here. She did not know anything about
the prisoners record. nor where he oh
tanned his money. she said. .She was
held for investigation.
The police found woman who gave
her name as Olive Luzon and said she
was the wife of the burglar. althouga
she disclaimed all knowledge of his
burglaries.
She later admitted that her name was
Poole, and that she had left her husband
in Cleveland year ago for Luzon. In
the house the detectives found two large
hand bags and one trunk completely
filed with jewelry. furs and silverwarc.
The jewelry consisted of ropes OF pearls.
brooches, sunbursts, rings and bracelets.
In the trung. and used to protect the
Jewels. were valuable fur coats and neck
pieces. In another house the detectives
found two more trunks filled with jew
elry and silver