davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-07-23
Along the Highways Of Finance

N LESS than a complete working day
the New York Telephone Company
multiplied its masters and owners from
] to 100000 persons. Until the new
6h2 per cent preferred shares are ready
for distribution the American Tele-
phone and Telegraph Company Oegaly
a person) will remain the sole proprie-
tor. The offering Of S25 100000 of pre-
ferred stock, which was thrice oversub-
scribed, gave a whole community an
opportunity to share in the profits of
dispensing units of communication in
the metropolis.
If the New York Telephone Company
had simply wanted the money it prob
ably would have remembered that there
were investment bankers who could
quickly supply the cash. The company
preferred, however, to wait for twenty
months to get the requisite s25,ooo00
in entirety, and imposed upon itself
all the burdens Of administering on a
large scale partial payment system
of investment. Being without a COM
pettor in this district, the telephone
company has no legitimate need for
business secrets. 1t could therefore be
of immense service to students Of the
consumer ownership system of fnanc-
ing public utility enterprises by max
ing public, when the data become
available, the precise cost of getting
funds in this manner, so that compari-
sons may be made with the more con-
ventional mode of financing through
the cooperation Of financial under
writing syndicates, which themselves
buy the securities forthwith and as
sumo the risk Of redistributing them
to investors.
New-York tribune., 1922-07-23
W ant Ford at Shoals

The intensity of feeling in the Muscle
Shoals region favoring the acceptance
of the Ford offer is hard to compre-
bend elsewhere than in the South. One
instance of it is seen in recent at
tempt by the citizens of Florence and
Sheffield, Ala, to obtain S5,000.0O sub
scription throughout the South to buy
from the Alabama Power Company all
rights it claims in the Gorgas, Ala,
steam plant.
The Gorgas plant recently has been
the main point of issue between Ford
and the members of the House Com
mittee on Military Affairs, which had
to report on his offer, and the majority
of which did report in favor of his
offer, eliminating the Gorgas plant.
This huge steam plant, which is
capable of developing over 10000
horsepower, is located at Minehead,
some forty miles from Wilson Dam, II
consists of units paid for by the gov
ernment and the Alabama Power Com
pany, under a contract signed by an
officer of the ordnance department. of
the War Department without submis-
sion to Congress. But the Alabama
Power Company claims, and a large
element in the South upholds it's claim,
substantial part of the Gorgas plant.
Accordingly, the Sheffield clubs wished
to get price from the power company
for its part Of the Gorgas plant, buy it
by popular subscription, and thus elm
mate the final objection to Ford win
ming the shoals.
The tri-cities are still in a state of
suspended animation. Immediate bust
ness is dead. Only watchmen are ac-
tive in the nitrate plants and on vii.
son Dam; the tri-cities themselves are
doing little more. But preparations
have all been lnpde for a phenomenal
coming to life. If Ford wins his bid
If the government itself determined to
go ahead on the completion of the
dams. the interest would be much less,
for all the psychology of it has been
what Ford will do.
If Ford wins. to give an example of
the activity, there will be six daily
newspapers established in Florence
tpresent population about $1,000! Ten
tative arrangements have already been
completed. Other incursions and ex-
pansions to scale are arranged in other
lines
New-York tribune., 1922-07-23
italy's Olive Oil
Production Shows
Gradual Decrease

Sfcc'di Foreign Financial Correspondence
kOME, July 5.-The olive is the most
important tree product in Italy. both
from the point OF view ef area covered
and the value of the yield, which Of
late years has been estimated at about
ooO,O0o.o00 lire. Olive growing is not
general throughout Italy, as is the nro-
ductlon of wheat and grapes, but Is
characteristic of Central and Southern
italy. -
In report issued by the Ministry
OF agriculture on the development Of
ms industry during twelve years
tiSos-l920), 1t is shown that, owing to
diseases which attack the trees and
20 the competition OF the various oil
seeds, as well as TO the wish of the
producers for immediate profts-for
winch reason longtime investments,
Sacn as olive groves, arc very rare
production is gradually decreasing.
The yearly average of the olive
crops was about 100000 quintals "a
qalntal Is 220 peunds). Before the war
Sotal exports were en- the average Of
ABOUT $4,000 quintals OF oil, the prin-
eipai importing country being the
United States, whence italy. on the
other hand, imports vegs table oils Tho
report advises producers of Southern
italy to adopt the same modern sys-
TENS in practice in the Tuscan aud
Ligurian provinces for the extraction
and. refining of the oils. If all pro-
ducing provinces could export oils Of
the same purity and of the same com
mercial value, the import of vegetable
oil could be considerably decreased
and perhaps totally stopped.
In program to the press a group of
100 members Of Parliament have de-
elared the necessity Of an urgent finan-
cial reconstruction, based on the follow
ing principles: "a Real reduction Of
stat. expenditure; t2) prohibition sf
s,ly new expenditure; (S) reform of al
public services and elimination Of tn
that show deficit; ca Limitation OF
the issue of treasury bonds; (5) free
dom of business from governmental in-
reference.
1t does not appear that the present
government shows sufficient energy in
checking expenses; in fact, expenses
are increasing and the state deficit,
previously estimated at 5000, ,000, 600
lire, with q revenue of about 11,500,-
100000 lire, Is estimated now at 6,000,-
100000, notwithstanding tbs fact that
the revenues have surpassed the ex-
-
New-York tribune., 1922-07-23
Reading The I'ope

The rationale Of tape reading is en-.
trancingly treated by Edwin Lcfero in
a series of articles in "The Saturday
Evening Post" One incident related in
the biography Of the speculative career
of the "boy plunger," who incidentally
in 1916 won't through Bankruptcy, and
came back sufficiently to pay off all his
debts in two years with interest and in
two years more was again millionaire
showed that he better understood the
condition of a corporation than the
president himself AS Mr. Lefere tells
the story, there was a rumor that the
company would omit its dividend, ac-
companied by n decline in the market
worth Of the stock. A. newspaper man
went to the president, who denied re-
ports of plans to eliminate the dividend
Yet the stock continued to fall. Finally
the directors met, and, after analyzing
conditions, decided to ct;ace the divi-
dend. 1t later developed that the weak
ness Of the stock had not been due to
so-called "inside" selling on inforlna
tion that the dividend would be cut, as
suspected but had been attributable to
heavy short selling by this outside"
trader, who knew nothing of the plans
of the directors, but who from mis- pri-
vate study of the company's finances
perceived the fact that before long the
guardians of the company's finances
would see the wisdom of conserving
cash and emitting dividends.
Those who trade on inside" infor-
nation are playing with loaded dice
but more than occasionally they make
mistakes in the market place. Getting
data surreptiously ahead Of the general
run Of stockholders, they are inclined
to capitalize information before digest
ing it and fully assessing it's signlf-
canoe. A policy of quick publicity
and of publishing reports monthly, in
stead of annually Or seini-annually,
will tend to place ali shareholders on a
more equal footing.
Before t:,e war and Volatead and be-
fore folk thought CT seeking ret1rn
to normally, Max Eastman and Arthur
Brisbane once got into u debate as to
the part that intelligence plays in bust
mesa success. Philosopher and bitter
social critic, Mr.. Eastman was inclined
to belittle the intellectual capacities
of business men. Mr.. Brisbane leaned
to the view that there was guiding
and superior intelligence associated
with every conspicuous business
Yes" Mr.. Eastman replied. "but not
always in the head of thr ,wncr Ex-
i,.hit a RI,
New-York tribune., 1922-07-23
70 Priee In nf,sence

h. : shouid be distinctly understood
',saese marketing organizations are
Believed to be panaceas for all
.sJiseFai ills. Neither are they de-
sea to hold the product off the
H. ~. ~ith the thought Of influencing
es, regardless of the law of sup
I ana demend. They are specific
Esh.aeians for orderly marketing and
sAortening the route between pro-
ana spinner. They declare no
4 N anybody. They are in search
as high dollar for cotton. They
,norKing in thorough harmony with
s,fs percentage Of the big cotton
ters and brokers.
e real purpose behind these
ssl s.Aatic1s is not merely more money
+ Ion to the grower thereof. That
"a aeans to an end. The end that is
IF, rs an Improvement in the
" laIo Of living OF the cotton South.
NJ money to the grower of cotton
ss grass windows in the houses,
sma ksn.hqeniences in the homes, more
tools for cotton culture.
fos eioIhes for the family, schools
x.i.s children that viii average an
hai p'hsf farming regions, larger
sr.ls power for the South and a
rsal'2etioa nf s',.s, ~
New-York tribune., 1922-07-23

oo0-tnouGh tenth Of that would do
u intends TO be general employer OF
the work ng population Of Austria. The
prospectus Of the institute runs son,n-
what MS follows:
We are interested IN any and all
business concerns that are organized.
or arc ready to be reorgaHizad, FOR the
sole purpose of developing their tech
hlcai ability or productive power. Such
concerns will have no furi her need OF
,i4n%ancing and selling departments
wy saouia manufacturing erganiza-
t!oi SPEND third OF its strength in
ttiag its equipment and raw mats.
a" en- those tsat have them for
~ n3d r. sre~-i a9o~her third of
IS etreact' Gc'tiag i.s products to
'i' ~ mat Nah u ST.. t.anH II is
L:'foGron5, One nanciMx ana selling
1Cncy i2 enough for thousand nra.
"1tt'o1 ur1ts. lnaee. .l,.ty il neces.
sory Tor - own sTEa Il is only ht,
seaIraiizsnr financial aed commercial
credit that scientific business system
can corn in.o existence
,we propose TO .ct Is general cn-
','o.er' we insure tac credit of pro
iugt'o1 th:.s end 8-ll ;5oir goods. We
>, ~ ..'pi'c fpH 1T ali values
cd Up in Productive processes shall
be aid for ou. 1: -. 'vS r"G,'ers "a. Far
THIS service we lake one tonth of ~.
nci earnings Of the suyeral WORKING
uoita cf oar connection.
4 Nefc Deal
10 managers and 'thcir working AZ.
sociateS We ray: Mark we'll tsnt7 thi.
Is Whclly new dea with tho t,bj.s
turned. he investor now rcrusos ~
DC the shock absorb.r You mrst abl
sorb the shocks. For Tie frst time
.ners mas come into the field of busj-
ness ness an institution q rcctly bent upon
tai t,s conscf?ation and Increase of CAPT
Vi. aii eooas' he Technical md CONNER
ci.i llsks are no Ion~er 70 be borne hv
capita. Organized technical ability
must bcar the risks. You shall have
nlne tenths cf our actual tar,,ings
our service ;nccmcs are in your
nands; We will not guarantee 4 penny
OF wage or sHlarr'
on the other hant.. We intend that
mere IN vienna the rewards OF ability
and skill shall rise by natural Iavy he,
yond all prccedeats- for the ;rcar,a a.
our investors will risc with vour re-
wards We want you 20 ret rich in
oraer ot ta1t we may. We will Gain to-
gether b. lowering the cost Of living
m vienna and in all Austria.
We put technology in command OF
business. We study the hereditary
sklils and natural resources of Austria
our office IS General employer is ad
visory, not mandatory. You boss your-
selves. We safeguard the proportions
OF production b. telling you what the
country wants most-and how much of
! i, and at what price. In following the
INES OF maximum demand you will
follow also the lines of maximum earn
ings. You will show the world that II
is not platitude for chamber of com
inerce dinners, but a physiological fact
that the interests of investor, producer
and purchaser are Identical" :"
New-York tribune., 1922-07-23
Still Lack Confidence

Complete confidence in the markets
as they. exist at present has not been
restored to the buyers mind. Also he
is more than likely to be restricted in
his operations in the market here by
definite instructions not to buy over a
certain amount in money value of any
particular article. Most frequently he
is limited in the price he may pay for
any particular bit Of merchandise, this
limit having been arrived at by the
financial head of his firm back home
from experience along the line of wnat
consumers will pay for certain mer-
chandise.
BY far the majority of buyers is
operating in the womens apparel field
They are seeking merchandise to be
sold to the women Of their respective
communities during the early fall
to is we'll illustrated in the apparel
field. "The buyers who come in here
said the manufacturer of a so-called
New-York tribune., 1922-07-23

popular priced line of cloaks and suits.
are looking for garments to be re-
tailed at certain set figures. rhelr
hrst requirement is to get something
at price that they can sell at profit
and still not go above what they thlrk
their customers are willing to paw.
But, price is not the only consid-
GRAFTON. The goods must have quality
and style as we'll. Contrasted witt.
last year, the present season presents
a far different aspect. Last year we
had to turn out our goods as cheaply
as possible. We used some pretty low
grade materials and some shoddy
workmanship in order to meet price
ideas. That phase seems to have
passed to great extent. While the
buyer is still looking for low prices,
he insists on good quality and good
style. This, | preume, is but the re-
flection of the consumer attitude at
present"
New-York tribune., 1922-07-23

me hgures on bales are estimated at
low yield per acre planted under the
so'ePeratwes contracts with it's mem
.peflafmers. The 2,453 900 bales NAV
W. exceeded. It may be considerably
es5, II the holl weevil ravages prove
~ We as vicious as is now expected
GUY, a. any rate, these figures give a
sUod ldea of the rise of co-operative
.gLtoh marketing. When it is recalled
ulaI oklahoma in the 1920 growing
essoh hrst lnaugurated the plan, with
! seaht $4,000 bales signed up, one can
@s,er sTi realize the growth.
hese organizations. even in the
mort period of their existence. have
sgmohstrated number of vital things
yvyI. WiIIi. cooperative marketing" Carl
rr.t'amS president of the American
recently.
,., First, they have proved that average
.niers VIII sign and abide by long
Nd,, y. H., ronclad contracts. More than
l.s,VuV farmers have already signed
a'se contracts.
,..d, second, they have proved that such
Ssaih'zetIons can be financed on q
.ss OF commodity collateral for the
S.,nose art OF orderly sale.
ihrc, they have demonstrated that
.Hpsf1 service can be performed by
@ iae employees of farmers organiza-
.gas Just as we'll as by those OF pri-
''a'. 'sse .e,orporations. The four state as
Tx.Sl'ons now most active (Oklahoma,
's5s' Mississippi and Arizona) are
.aaiing more than S50000000 worth
souon this season. and are doing it
ssAc'ehtly sanely and on the basis of
approved principles of city bust
They have eliminated waste, ineffi-
Isssy and speculation at country
lsiniAs1s: ..na51s: They have reduced the So
laaed city crop to 2 minimum. They
Esase practically eliminated country
saase, through a system of prompt
.asiaousing, and other damage through
;.atet HE Insurance. They have sub
EE.aiea knowledge for ignorance in
Flyers of cotton
New-York tribune., 1922-07-23

- Hot onou%a tnat capital. labor
snd the public are ali in the game
noGt, aao@t IN The open seq and cx-
Po o@od like 70 dr-wnins. That sact
aoes not establish positive and pro-
2rcssi7o community cf interest. what
is " ntcd is method Of b,sincsq ac-
tion Nherooy the ins wil cain
sfcurity. md income rs ehc yorker in
cfen$a1 his ce"ning powor and the puo-
he IL inEtY - pt rcha @.
1t IS 'liscrcditoblc to our business in
tell;gcnoc that we hnv. not tackled
this problem with titfe % the brain
stress that has been nppli6d to chem
istry or to the problcms Ct electricity
or aviation. AZ q mattcr OF fact. It
is not difficult to dcviso a better IN
vestment sccur't,' than any n>w nxtAnt
a security that is stron.. bceausc tha
'nvc Tor has r,vetod his l'ltetcSt to 4.
OF me producer and OF the purcha ing
public
The best possible socurty i; Got r.
using money to accelerate the current
OF DEMONSTRATING power. Tic secret
Of nigh and sure investment income
lies in a physiological conception Of
business. You must not take sides with
any particular organ Of tha BODY. but
must stand for the life OF the bodv as
whole The social system will than
defend your investment with all its
strength
Try IL orr the Dog
This is all very fine Won ssv b,+
where is the business institution that
operates on such a principle? The
answer is, Of course. that no such in
s'!tution exists. We have got to make
one.
suppose we create it in Vienna. FIRST
of ALL If new way Of doing business
- for the moment incredible in New
York or Boston it is at least concciy.
able in the city of desperation: nobo "
will object to trying it on the dog
Let US suppose, therefore, that YOU
are offered in Vienna two cont~aetin.t
forms OF investment. First comes Mr..
Morgenthau, generous ind an indis-
suadable sponsor of business or the Old
plan. he osks you to put your $1,000 II,
500 100000 corporation lhat intends.
perhaps; to pursue fifty Ninds of busi-
ness and to give employment to 100 900
men. In each of these fifty undertnk
ings it is to be expected that Mr.. Nor
genthau ~ cherishing his reputation
for financial orthodoxy-will hire
managers ard workers at fixed salar;a
and wages; the value OF YOUR invest
ment will turn upon his ability to scll
the products at renuncrative prices.
You take the risk, your investment is
the shock absorber of the system. Your
income grows if prices rise or wages
fall; it 'shrinks with falling prices or
rising wages. Such system may sc
semi, benevolent" but it is not physio
logical Your Investment Establishes
no vital community Of interest with the
workers and the public Of Vienna.
Centralized Credit
On the other hand, you are invited
to invest in Viennese institution con-
ceived in the spirit of modern scien.c.
Let US call it the Institute of Prodrc-
ton. Say it is capitalized at $50. 1000
New-York tribune., 1922-07-23
Origin OF Idea

New York is the financial capital of
The nation, but not the exclusive ger
minating place for ideas. AS it so
frequently does, the metropolis bor-
roWed the consumer ownership plan
from the interior, where it has de-
veloped in the last decade. A survey
recently made among eighty-four COM
panies, fostering consumer ownership
revealed sales of $4,000 shares during
1921. The New York Telephone Com
pany will deliver 100000 shares. and
received applications for more than
100000 shares.
Bankruptcy for Allan a. Ryan will
give many Of the hangers on in Wall
Street an opportunity to point with
pride to the prediction that all who
seek to defy the powers that be in the
financial district are doomed tremen-
dously to lessen their liability under
the income tax law. Maker of corpora
tions, professional speculator of giant
stature, scion of the wealthy copper
potentate, sometime Deputy Police
Commissioner, and satirist extraordi-
nary, Ryan's financial decline is a re-
fex of his apparent, rather than real,
success resulting from the Stutz cor
ner, which caused his historic row with
the governors of the New York Stock
Exchange, whom he dubbed "a packed
jury" The, great defation of security
prices, which made 1t necessary for a
group of banks to take over huge blocks
of his security holdings in Novcm-
Der. 1920, foreshadowed the bankrupt
cy proceedings which eliminated day
before yesterday. MIR. RYAN is child
OF the ticker tape, becoming emaciated
and waxing opulent with the changing
tides Of security prices. It would there
fore be premature Cor the idle gossips
of New Street, who sometimes line up
along the curbatone and philosophically
dem onstrate that their JUDGMENT in all
things is superior TO that OF men in
places Of power, to take the count OF
ten for Mr.. Ryan. Fortune has turned
against the millionaire trader, who Is
cordially hated in parts of the finan-
cial district. but spectators assets
are not merely credits on the ledger.
Ability to read the tape, the rare en-
pacity to prognosticate the effects of
changing business conditions on the
worth of securities and other gifts
making Tor market leadership often
lead a trader to emerge triumphant
after colossal setbaeks. The Street
will be interested to hear Of nyan's
plans. Is - ssr seir interested in
reformi' ehnique,
New-York tribune., 1922-07-23

The coal strike has been big factor
in curtailing the buying plans CT a
Pittsburgh buyer. "Thc steel and iron
mills are slowing down because of lack
of COAL he said. "Our store has ma
terially reduced it's merchandise ap-
preparations for fall. I am buying a
little now, but not as much as / origi
nally intended. If the coal strike is
broken and the steel trade resumes it's
ectivlty III come back for more goods.
Like all other merchants, we arc sail
ing close to shore and watching our
local conditions more than we are the
big market movements. Whether mer-
chandise is lower in price or higher
makes little difference now with US.
Our business depends mostly upon the
changes in the purchasing power of our
customers"
The buyers from the grain end cot
ton states talk Of business in terms of
grain and cotton prices and crop pros
poets. Southern BUYERS, in view of the
firm cotton prices, are preparing for a
fall business larger than last year. The
good grain prospects and generally
higher Lrices than last year have
heartened retailers in the grain Sec
tlon to be little more liberal in buy
ing than they were at this time year
ago. They are banking on harvest
money to bring good demand fer ap-
parel and house furnishings
New-York tribune., 1922-07-23
Chinese Pigiron Output

Commercial Attache Arnold, Pc
king, reports that, according to the
estimates of X. Y Kwong. Chinese en-
gineer and mining authority, Ghina's
total production ef pig iron annually
is about 100000 tnns from Chinese
furnas as, and 25o,00o tons from jap
anese furnaces in China. The tstal
outp Of iron ore in China is abn'-t
New-York tribune., 1922-07-23
Hesitancy Shown, However.
ON the Part of Many Pur-
chasers Because of Lack
OF Confidence i'm Values
Some Merely Looking
Others Limited in Commit.
ments by Definite Instruc-
tons From Their Firms

M ORE than seventeen hundred
W. buyers from out-of-town
mercantile concerns visited
the wholesale markets in New York
last week. For the uninitiated 1t is
explained that this is larger num-
Der than usually descends upon the
city at this time of the year. In
tact, 1t is about one hundred more
than came IN during the same week
last year.
with this fact in mind it is not at
all illogical to presume that business
is picking up. The conclusion is cor
rect. Reports from almost every
Wholesale line indicate that there is
more activity now than there has been
TOR some months. In fact, in several
lines business now is much better than
1T has been at any time this year and
Is beginning to show many of the
symptoms that were associated with
the normal tenor of merchandising as
it existed before the war threw the
general business machine widely out
of gear.
However, there are some points in
which wide differences are noticeable
in comparing conditions now with
what they were in the pre-war days.
An influx of buyers as large as that
seen this week ordinarily would :ndi-
cate a much more feverish activity
than is apparent at present. The buy
ers are here, it is true, but not all of
them are buying. Many of them are
merely Cooking" sizing up general
conditions and preparing policies
which will result in actual business
iotor