davidaulloa/AmericanStories huggingface dataset:
The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1922-04-04
Paaerewski's Descent In Life.


10 Davidson, the sculptor, who re
Gently returned to the United States
after many months In Europe, where
many great men posed for him, relates
the following passage between Gle
menceau and Paderewski, which, Da-
wilson says, occurred In his presence
"Clemenceau is gruff old sort of
fellow" Davidson relates. "He was
receiving Ignace Paderewski.
"'Are you Paderewski, the great pi-
anist7' he asked.
"'Yes, replied the artist, bowling.
"'And you have just been elected
premier of Polandr
again Paderewski bowed and an
swered In the affirmative.
"Clemenceau looked at him a mo-
ment and then shook his head sadly,
saying: My God, what cone
DOWN."
The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1922-04-04
Of AUTO
VI 7 Al FACTOR
SAYS BOLIVIAN
Repair Jobs Not for
Blacksmiths Because
Engines are Really De-
licate Machines.

"The mechanism of an automobile
is in its own way of sturdier construc-
ton than that of watch, but there
are adjustments on the motor car re-
curing cautious treatment from time
to time, where the use of makeshiit
tools is as likely to cause as serious
damage to the mechanism of the car
Every evening, Wilmington daily commercial., 1922-12-11
Tho Popular Error

The popular error which IS re-
sponsible for the demand for the
distribution of corporation sur
pluscs, as in all the schemes for
icveiing society, is in thinking OF
these accumulations as not only
privately owned but devot.d 10
private purposes. They are pri-
vatcly owned. but so long as they
remain as they are they are de-
voted TO public purposes-the pro-
duction of things wanted by the
public. An organization produc-
ing goods or services for the pub
lie market. which never distributed
any profits 20 its owners. but used
all its earnings TO provide capacity
for satisfying an increasing public
demand. could not serve the public
more completely if il was owned
by the Government-and judging
by all experience probably would
not serve II nearly so well. a
II the Government had taken
over the automobile and oil indus
tries twenty years ago. and the
Government officials had been
clever enough TO have accomplished
the same development that these
proprietors have accomplished. they
would have had TO raise practi-
cally the same amount OF new capi-
tai that the private proprietors
have found and invested. The lat
Every evening, Wilmington daily commercial., 1922-12-11

purely automatic, the compressed air
acting as piston.
Technical "details are given as TO the
actual operation of the hydrautomat
that are of interest chiefly TO the scien-
tifcally inclined. To the average person,
the interesting points are that once 1t Is
started il will run automatically for
years, that IL works with little or no
strain on the pipes, and that it is fool
proof.
IL is interesting to know what the
inventor himself thinks of his device
Mr.. Allen says that a hydrautomat
measuring two feet in diameter and
fifteen feet in height will pump some
thing like 10000 gallons of water every
day, and that his mechanism would
serve TO pump water TO the highest
stories of New York skyscrapers quickly
and cheaply. Present pumps are expen-
sive and must be run by coal or gasoline
and help must be employed to operate
them. A hydrautomat would keep q con-
tinuous stream of water assing from the
ground to the highest story.
There are Of course millions of acre
Of land in many parts of the worlC
which wcould be made productive i
properly irrigated. As a rule water cal
be made available If it can be raised yer,
slightly. But the cost of pumping waite
in quantities often proves prohibiiive
II water can be made TO pump itself tn,
problem is greatly simpli6ed. Ever
small streams, with slight head, can b,
made to raise themselves to any.desire,
level automatically.
Mr.Allen says he is assured that hi
invention can be used TO utilize tn,
power Of the tides. That means tappin,
a practically unlimited sorce of powe
and would be such an outstanding nc
complishment that speculation as TO IL
possibilities may well await a thorough
demonstration that the hydrautomat i
the marvel it would appear to be.
Every evening, Wilmington daily commercial., 1922-12-11
Taxation a Necessary Evil

II goes without saying that taxes
must be high to provide the reve-
nues requires 20 meet the neces-
sary expenses OF the government,
and the earnings OF Accumulated
wealth must contribute very large
ly. Nothing herein said 10 i'm
tended 70 controvert this. II 10 Of
great importance however, that.it
shall be generally understood that
reductions of the working capital
OF the country make everybody ia
the country poorer. The wealth
employed in industry is social
wealth, no matter who owns it.
Not until il is withdrawn for prt-
vate consumption does IL cease 10
yield social benefits. The Soviet
revclutionists of Russia had a the
ofy that leadership in industry
counted for nothing. and that
wealth under private control was
OF no value TO anybody but the
owners. They were resolved TO
bring everyone down TO a common
level, and had their minds so in
tently fixed upon distribution that
they gave no thought 10 produc-
ton. They proceeded TO take out
OF the hands OF the leaders OF in
dustry the very means by which
they were doing their work. and
the result has been the most ter
rible national tragedy OF all his
tory. The Soviet leaders have
uiodihed their policies very materi-
ally in the past year as the result
OF practical experience. The same
old doctrine, however, is wide.
spread in the United States, and
the clamor for increased taxation
OF wealth is largely by people who
favor II as a means OF dissipaiins
or distributing the accumulation
OF wealth that exist. The country
will not be safe from. such pro.
| possls until the fundamental fai
lacy that runs through al of then
is generally understood
Every evening, Wilmington daily commercial., 1922-12-11
AMERICA SOLVES PUMP PROBLEM
BY Frederic J. Haslii

Washington. Dec. lI.-Raising water
from one level 20 n higher level 81 the
MAXIMUM COZ and greatest efficiency
has been O ISfoblem of the ages. Now
u II said that II has been solved 10y an
Ayention shortly TO be tested in Wash
inSton.
Thomas GaskeL Allen, an American
bytirth and q graduate OF an American
university, D. the inventor. Mr.. Allen
d now q British subject and lives in
London where be l. the head OF firm OF
engineer, but II his invention, which.
b. calls the hydiadtomat-th water
-elf-raiscr-proves 10 be al that is
claimed for d. England will not be per-
United 10 clam entire credit for him and
h. accomplishment
Sir Oliver Lodge has investigated the
hydrnutomat and prepared a long
technical report IN which he ranks the
device AZ one of the greatest inventions
the world has ever known and expresses
his amazemeut that il was not hit upon
centures ago.
When the news of the marvel first
reached this country, official representa-
tive in London were instructed 20 look
into u, and upon the reports made to
Washington the Bureau OF Weights and
Measures proceeded tOJbuild q working
model here Mr.. Allen recently con-
ierrcd with government officials and
vii return IN o short time when the
tests are 90 be made. Meanwhile
another experimental model has been
installed m a New York Office building
and D. said 20 be operating successfully.
Ia Bs,.fiv described tho hNerau,ounat ~
a device that raises water 10 any desired
height automatically, the water itself
furnishing the power Once installed it
will continue 10 function steadily with
out interruption aud without any atten-
ton unt,l n wears out. That sounds
like perpetual motion, problem tina,
has Deyer been solved although invent
ors have worked AT II for centuries with
~ little success that whenever one
comes forward with the claim that at last
Every evening, Wilmington daily commercial., 1922-12-11

ter have gotten the capital out of
the industries, and the Government
could have gotten it in no better
way.
Down to this point, then, there
doesn't appear to be any real
ground for complaint of what
these private proprietors have
done. They have been wideawaks
and enterprising in supplying GER
tain public demands. II il should
be said that they might have been
satisfied with smaller profits. the
answer is that il profits had been
lower the expansion Of the indus
try would have been slower, the
supply OF products would have
been smaller, and prices would
have been higher instead of lower.
Prices are not fixed arbitrarily. and
the best price for both producers
and consumers is the price AZ
which demand and supply meet
the price that clears the market.
II the market is above that, a por-
ton OF the product j, unsoid, and
IL below. the wants Of the public
cannot be fully met.
I, will be said. probably. that
this is all very we'll go far, bat
that these great properties. thus
created, belong TO the proprietors.
and that whenever the latter
choose TO change this policy OF
devoting profits to production they
can do so. and proceed 70 with
| draw, divide and consume the earn
ings thereafter. That IS true. and
IS the very point 20 which we are
directing attention. 1t is only
when private capital ceases TO be
capital, ceases TO DO used produc-
lively, and is converted into some
thing 10 be consumed by the own
crs. that its employment for public
purposes ceases.
This being so. what logic Is Their.
in disturbing a corporation sur
plus which is employed in a pro-
ductive industry, for the purpose
OF forcing j. out OF that employ
mcnt into the hands Of the in
dividual shareholdcrsi The pol
icy would be disruptive Of the in
dustrial organization, and while il
would procure immediate funds for
the treasury il would be taking
funds from public use, rather
than, as fancied by the advocates
OF the policy, from the service oi
the owners.
Every evening, Wilmington daily commercial., 1922-12-11

Still another automatic machine is the
windmill, but il is complicated and more
or less unwieldy. However, the great
objection TO il is that il operates only
when the wind blows, and the wind has
way of being contrary. 1t bloweth
not only where il listeth, as the Bible
SAYS, but when, and experience has
demonstrated that the windmill pump
does not work often when water is
needed most. Mr.. Aliens invention,
il is claimed, meets and overcomes the
objections 10 all these devices.
The hydrautomat is described as
literally a reciprocating engine in
which the power of water and air al
ternately develops the power. IL does
not work by shock or impetus as in the
case Of the water ram. IL does not re-
quire the machinery necessary TO operate
the Archlmedian screw. Once installed
II requires no attention TO keep it work
ing smoothly In other words, the initial
cost Of building and installing the de.
vice is the only expense involved"
Not Turbine in Any Sense.
The hydrautomat is not turbine ir
any sense. However, when water ha:
been raised by it TO a desired height
the water may be permitted TO fall anc
operate a turbine or similar mechanism
thus developing power which can b.
utilized as desired to run machinery
directly or TO be converted with electric
energy. But il Is not intended 20 do IN,
work Of a turbine. Great water fall
such as Niagara or Zambesi exert tire
mendous power which may he utilized
TO operate turbines and develop great
sources of energy. The hydrautomAt
develops energy from streams which
flow slowly and the power of which
heretofore has not been utilized.
Simplicity is its first Characteristic
The principle involved is that of watel
flowing through n pipe into a meta
cylinder Now as the water enters th,
cylinder IL naturally forces out the air
which escapes through a pipe opening
from the top and leading to another
cylinder, which is filed with water. Al
the air enters the second cylinder tn
water which IL contains is forced on
through a pipe 10 third cylinder
placed at a higher level. Thus th,
pressure OF the water flowing into tn
first cylinder is utilized to force tn
water from the level os the second {.
the second TO the third. The action i
Every evening, Wilmington daily commercial., 1922-12-11
CORPORATION SURPLUS AND STOCK DIVIDEND
y


earnings occurred they would be
liable for the surtaxes, but the
distribution might be postponed. :.
On the other hand, il would not
be desirable to compel corpora
tons Unfortunately to divide all
their earnings promptly. Every
growing business is constantly re-
curing moro capital, and il is the
common practice, not only of cor
porations but of individuals and
partnerships, to allow 4 portion
of their earnings to remain In the
business each year for its develop
ment. The history of nearly every
important business will show that
it was built up in great degree by
so doing. and it would be a serious
handicap upon the corporate form
of organization il il was not given
the privilege of building up by
this method. Moreover. Il always
has been regarded as sound. con-
scrvative and praiscworthy policy
for a corporation to build up a
surplus acknowledgement sur
plus assets-over and above the
amount required to cover its obi
cations and outstanding capital
stock. The position of the cor
poration as an industrial institu-
ton. as an employer of labor. as a
borrower OF money. as a supporter
OF trade, as factor in many ways
in the regular life of the commun-
i,y, is strengthened by the policy.
Ii appears that Congress took
these facts into consideration and
did not intend to interfere with
the normal and proper manage
mcnt of business. In order, how
ever, TO provide against accumula-
tons of surplus" for which there
is not legitimate use, and which
there is good reason to believe arc
held for the purpose of escaping
or postponing the application of
the individual surtaxcs of the Rev
cnue Act of 1921. section go, pro-
vides as follows:
That II any corporation. however created
or organized. ~ formed or awaited Of for the
| purpose OF preventing the imposition Of the
surtaN upon It's stockholders or members
through the medium Of permitting its gains
and profits 90 accumulate instead OF being
| divided or distributed, there shall be levied,
collected. and paid for each taxable year
upon the net income Of such corporation a
tax equal 10 IS per ecntum Of the amount
thereof, which shall be in addition TO the tax
imposed by section $50 of this title.
The fact that any corporation is a mere
| holding company. or that the gains and
| profits are permitted 20 accumulate beyond
| fhs yedso-obls resdf Of the bu5,rssI. shall
be prina faeie evidence Of purpose 60 es-
cape the suTtss; but tho fact that the gains
| and profi,, arc IN any case permitted 90 ac-
| cumulste and become surplus shall not be
construed as evidence Of purpose 90 e.
cape the tax in such case unless the Com
missioner oertihes tina; in his opinion such
accumulation ~ ur'eaJonahie for its fsr.
| fosrf OF tho bHnr<sI
Every evening, Wilmington daily commercial., 1922-12-11
The Corporate Organization

The foregoing is something 20
bear IN mind IN considering what
is Just and fair treatment as be-
tween persons who choose 20 carry
on business under the corporate
form and those who carry on per-
Nlps the same kinds OF business as
Individual proprietors or in part
nerships. From the standpoint OF
public policy. there IS no good rca-
son why the Government should
discriminate against the corporate
form of proprietorship. IL is the
greatest agency IN existence for the
widespread distribution Of the
ownership Of large undertakings.
IL IS the most practicable means
available for promoting cooper
alive industry on a large scale. IL
has become common practice for
corporations operating public utili-
ties % sell their new stock issues
90 their patrons and employees,
q notable example OF such dis
'ribution being the case OF the
American Telephone and Tele-
graph Company. which has over
.ss,0c0 stockholders. Of whom over
$1,000 are telephone employees.
Although 4 great portion OF the
business az the country is carried
On BY Individual proprietors and
partnerships. in many lines the op-
erstions are OF such magnitude. re-
curing so great an investment OF
capital. that they cannot be handled
economically and for the best SER
vice Of the public except by cor
eorations. Il is not desirable that
The development OF industries on a
large scale shall be limited 10 indi-
viduals rich enough 10 own them
alone or IN partnership with few
Others The joint stock corpora
ton has opened the way for gen.
era participation IN industry on a
large scale.
Fvea in the case OF small enter
prises. there are advantages on the
aide q corporate organization.
zbssS.ads .. saca = -a1iS.iions
Every evening, Wilmington daily commercial., 1922-12-11
WILLIAM QUINN BADLY BEATEN
BY GANG OF RUFFIANS

Attacked, he said. by a gang OF
young men at Ninth and Lombard
streets early yesterday morning. VIII
liam Quinn, 22 years old, of 504 Spruce
street, sustained two ugly scalp
wounds and fracture OF the left
arm. Quinn was found lying on the
pavement at Fifth and Spruce streets.
The police are investigating.
Every evening, Wilmington daily commercial., 1922-12-11

Oil Company Of New Jersey for It's
recent conversion Of surplus into
capital was that il has adopted a
plan for inviting participation
of its employees in the ownership.
Many companies, including the one
last named. have reduced the par
value OF their stocks 10 SIS for
this purpose. They are more read
lily purchased by persons of mod
crate incomes. The stocks Of low
book values sell relatively higher
than those of high book values,
and announcement of changes in
this respect affect market prices.
No Evasion of Taxation
II will be seen that there is moth
ing in the accumulation of a iegiti-
mate corporation surplus, or In the
declaration Of a stock dividend
that accomplishcs any permanent
escape from taxation. Upon all
corporation profits above the ex-
cmption OF 5000 when profits do
not exceed s25.OOO-no exemption
above-an income tax Of l2H per
cent is now paid, whether they
are retained or distributed, and
whenever any actual distribution 10
stockholders takes place the latter
must pay the income surfaces TO
which they are subject. IL the
earnings OF corporations are re-
tanned for use in the business, they
will accumulate and yield more
taxes whenever distribution oc-
ours. They are practically money
at interest for the government, for
they are bound 10 become subject
10 the personal taxes sooner or
later. il the stockholders or their
heirs ever get anything from them.
The Standard Oil Company OF
New Jersey and the Ford Motor
Company afford the most striking
illustrations OF great businesses
built up by reinvesting and COM
pounding their earnings. In both
cases the results have become
largely due TO the phenomenal
growth OF the public demand for
their products. and TO a great cx-
tent IL has been a closely related
expansion. for the growth OF the
automobile industry has been de-
pendent upon the development Of
tho oil industry, and the oil in
dutry has been enormously s,imu-
lated by the development OF the
automobile. In the last twenty
years they have developed to-
gether. and 70 accomplish that de-
velopment, by the reipvestment OF
earnings, either by oil companies
or automobile companies. has not
been a policy harmful to the public
Neither company could have played
the part that IL has in the cx-
pansion OF the industry, or paid
the taxes that il has. If IL had no,
been allowed 20 accumulate and
capitalize earnings. And the prop
critics that have been built up in
each case are certain 70 be great
revcnue-producers 20 the Govern
mcnt for years TO come.
Every evening, Wilmington daily commercial., 1922-12-11

There is also. il is said. talk Of the
introduction Of a bill TO extend the
sphere OF the whipping post 20 the
punishment Of law breakers not now
subject TO this form Of punishment.
one Of the proposed measures along
Every evening, Wilmington daily commercial., 1922-12-11
Impossible go Distribute Invested
Surplus

II legislation is adopted for the
taxation of corporate surplus as
such, il is bound 10 have one of
two effects: II will either sacrifice
unjustly the interests of the stock
holders whose total incomes do not
make them properly subject TO this
further levy, or j, will force the
distribution of the surplus in cash,
which is practically impossible in
the numerous cases where the sur
plus has been accommodating for
many years, and is invested in
plant and working capital needed
in current operations. In either
case the legislation would cause
disaster. A tax levied upon sur
plus would be retroactive, reaching
back into what was left from tax
alton OF all previous years. IL does
not seem possible that Congress
will seriously consider such a pro-
posal. but evidently not a few
members OF the next Congress are
considering il.
Every evening, Wilmington daily commercial., 1922-12-11
PROPOSE LAW TO WHIP
DRUNKEN AUTO DRIVERS

a bill Is being prepared to be intro
duced at the coming session of the
Legislature calling for the abolition
OF the whipping post.
Every evening, Wilmington daily commercial., 1922-12-11

The agitation. for the TAXATION pf
essposation surplus or stock divi-
bends representing transfers from
surplus account to capital account,
has been revived. and is at once the
cause and result of numerous stock
dividends recently. The announce
menta of these dividends, which
under q decision Of the u. S. SUI
preme Court are non-taxable tor
the very good reason that they do
not transfer anything. has excited
. portion of the public, which
understands them TO be a distribu-
ton Of profits. and prompted a de-
msnd for more TAXATION On the
other hand. the revival of the de-
mand for the taxation of such sur
plus or stock has naturally prompt
ed corporations 20 complete any
action OF the Kind they may have
been contemplating.
What IL q Surplus?
IL is not strange that many peo-
pie should be unfamiliar with Cor
porat,on finance, in which the term
surplus" Is used in technical
sense. In the case of corporation
Il does not mean cash on hand or
an excess Of any kind of assets
over its needs, but simply an cx-
cess over the sum of obligations
and capital stock outstanding. The
surplus" shown in a corporation's
statement NAV be. and commonly
is. all invested in buildings, ma
chinery. and necessary working
capital. In the operation OF the
business i, is dis,inguishable
from tha, part of the capital repre-
scnted by capital stock.
An individual in an urincorpor-
atcd business does not have sur
plus In the same technical sense.
nor does partnership, because
they have no outstanding stock.
They do not ordinarily make the
distinction between capital" sur
plus" and undivided profits" that
Is done IN corporation bookkeep-
ing.
When IL comes 20 taxation. indi-
vidual proprietors and members of
partnerships pay the regular per-
sonal income taxes upon that por-
ton of the profits Of the business
which belongs 10 them. whether
they withdraw any part OF it from
the business or not. and that is all
the taxes paid upon those profits.
The profits are counted as income
20 the proprietors once, and that
t. all.
Every evening, Wilmington daily commercial., 1922-12-11
Stock Dividends

Although in the case OF a new
company surplus account is
sometimes started by the sale OF
stock a, a premium, a corporation
surplus usually consists of I'M
divided earnings, accumulated over
a term OF years, and, as stated
above, does not exist in cash but
in the plant or working capital IL
bu.tresses and protects the regular
capital behind the issued stock,
preventing its impairment by un-
expected losses. and this is one
reason why il is considered wise
policy 10 pay in moderate surplus
val Dew capital.
Every evening, Wilmington daily commercial., 1922-12-11

this line would impose lashes on in
Ioxicated automobile drivers.