davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-02-19

gain departments IN the large depart
ment stores. This is noticed .particu-
larly among the buyers from the Middle
West and West. where tho low prices
of farm products have led the people
to ccOnOmlzc. Large quantities Of low
priced clothing to meet the demand for
cheap garments arc being bough. by
the managers Of these "hascmcnt' de -
partments to cater to this trade.
The buyer for one "bascmcnt' dc
partmcnt asserted that in the last
week he has purchased more than $40
600 worth of women's dresses, coats
and suits. whereas his companion. who
buys for the "rcgular' department IN
the store, has spent less than n .hird
OF this amount.
The buyers have not noticed 10 cavil
at prices. Rarely, according to manu-
racturcr5 and wholesalers, are they
willing to pay the price that is asked.
They price merchandise IN one csta5-
hshmcnt and move on to another to
compare values. This shopping around
has led to a great rcadjustmcut or ac-
counts. Manufacturers report losing
many Of their old customers and add
ing new ones. which means that new
business connections are being made
all around
Some of this results from the credit
s'tuation. Despite the desire TO boos t
sales figures many manufacturers
have drawn the credit limits on their
customers exceedingly tight. Tho
buyer who finds that he cannot opcratc
a literally with d Wholesaler or man
ufactuler with whom he has done busi-
ness for several years il coustrainca,
If nc needs moro merchandise. 70 try
another source of supply. Credit re
porting agencies are now checking a
larger number OF accounts than thcv
did year ago because of this
New-York tribune., 1922-02-19
The Reorganization

Thc plan provided for an exchange
Of Denver & RIO Grandc 1cfunding IS
FOR 30 per cent in new bonds and 81
per cent in preferred stock in new
company. This new company Is thu
Denver G. Rio Grande Western, winch
was formed by the Western Pacific
Railroad Cooperation TO hold the Den
|er g. Rio Grandc property pending a
reorganiza ation, and this company had
certain other assets. The reorganiza-
ton plan also provides for the cren-
tion Of refunding mortgage which is
10 take the same place in tho financial
structure Of the new company as tho
rcfunding mortgage of the old Denver
& Rio Grande did in the ;inancis,
structure of the old company. But tnis
is not the mortgage under which bonds
arc to be given III exchange 10 the
present holders OF the old refunding
5s. second junior mortgage IS 10 ie
made under the reorganization plan,
and it is this mortgage which is to Sc
cure the bonds offered in exchange for
the present refunding IS. 1t is known
the unifylng mortgage
New-York tribune., 1922-02-19
Tropical to Develop Oil Field
Colombian Executive Decree Asserts That Amcr;.
can Concern Has Promised CONNER
cial Production Soon

Srooioi forciOr fuaouciol Correspondence
BOGOTA, Colombia. Feb. 3 In an
executive decree recently issued by the
Colombian government it was asserted
that verbal -tntemcnts had been made
by the Tropical Oil Company, an Amer
lean company conducting drilling op-
erations in that country, to the effect
that production Of oil on commercial
scale would soon commence on the
lands comprised in their concession.
In view Of these statements the de-
cree provides for the appointment Of
two officials TO exercise certain supcr-
vlsory functions vested in the govern
mcnt by tho Colombian oil law Of 1919.
These functions include supervision oC
N,illing operations and accounting, the
analysis Of products and estimation Of
quantities produced
once production on commercial
scale IS commenced. the most impor-
tant immediate effect to Colombia, ac-
cording to experts, would be the I'M
Irovemcnt OF river Transportation
which would come as result Of the
employment of oil as fuel, not so much
on account OF increased speed rs the
elimination Of the long and freoucst
delays along tho way for the purpose
of taking on wood for fuel which are
incidental to the present system.
In this connection it is reported that
ono boat plying the Magdalcna River,
tho principal artery Of commerce, has
already been equipped for burning oil
and that recent trial trip. on which
oil supplied from the wells of the
Tropical OIL Company was used. was
entirely successful and effected a
great saving of time.
In view Of the keen rivalry which has
been manifested in various parts of the
New-York tribune., 1922-02-19

world between Engl h and American
OIL interests. there is possible signisi-
cance in statement recently made by
the British Minister TO Colombia at an
informal banquet in BoSota TO the et-
feet that Great Britain realized that
ON account Of geographical and other
considerations tho principal role in tho
development Of the natural wealth Of
Colombia belonged to the United
States.
Under the existing Colombian law q
production tax, varying from 3 per cent.
to 10 per cent of the gross production
OF oil. accrues TO the government, so
that the commencement Of production
in Colomhi. VIII also be Of importance
10 government finances, the hopeless
state of which continues unmitigaic
~ spite OF steady bGt decidedly SLOW
Improvement in general business con.
ditions.
Much store is aid by tho government
in the bill at present under discuss on
which authorizes the ISSUE Of 5O0O.O0O
pesos IN paper money. whicN. although
It is cncountcring onsiderabin opposi
ton in the Senate. is generally be-
licved to be certain Of final success.
The somewhat marked Improvement
in general conditions duo to the cx-
po,tation Of the fall coffee crop has de-
cidedly slackeued OF the two coffee
crops prodpccd. yearly. the fail crop. on
which these temporarily impfoved CON
ditions were based, is tho smaller,
being somewhat in the nature of a
"catch' crop.
The bill authorizing the establish
ment of a accommodating bank with
d capital Of $4,000 900 pesos is attract
ing little attention, the public interest
having been shifted to the revived
measure providing for the issue Of
laOcr money
New-York tribune., 1922-02-19
Northern Ohio Electric Year

For the twelve months ended Decem-
Der 81 the Northern Ohio Electric Cor
poration and constituent companies,
reported a net income available for
dividends, requirements and deprecia-
tion Of S242 ,258, compared with $685.
Alb in the preceding year. Deficit,
after, after allowing S360,O00 for pre-
ferred stock dividends, amounted to
S117741, against a balance of S473,-
418 in 1920 For December the net in
come was $29.S35, compared with s12.-
1872 in December, 1920. Deficit. after
providing for dividends of 100000,
amounted to $165, against a deficit OF
S17,8O7 in the same month of the pre-
ccdinp wear
New-York tribune., 1922-02-19
Curtail1nent Mail,
Point E)iscusset!
At Cotton Mills
Wamsuila Cut of One Day
a Week Is Being Closely
Watched i'll Connection
With Wage Reductions
Nnnolnl p,snutch to yhn Yr.hun.


NEW BEDFORD, Mass Feb. Is
Notice by the Wamsutta Mills that it
would curtail operations one day
week hereafter furnished the most sig
nihcant subject OF speculation in The
cotton manufacturing industry during
tion Of wage reduction and the strike
the Gut has preciptated where it has
gone into effect.
The Wamsutta situation is being
watched closely for its bearing upon
both the conditions III the trade the
action reflects and the wage issue in
New Bedford and Fail River. For the
several weeks that the wage question has
been agitated there have been reports
that either q wage reduction or curtall-
ment in operations would be necessary.
Interest is now aroused as to whether
the Wamsutta will lead the way for q
curtailmont within the industry gen
orally.
Cite Bad Market Conditions
Aside from pointing out the gener-
ally bad market conditions. the man
agement Of the mill did not comment
on the reasons for the curtailment.
Previous productions of short time
operations have been based on ncces-
sity growing out Of the failure Of the
demand for goods to develop as well
as had been hoped for. If curtailment
should become general ii is bound to
become factor in the effort TO include
New Bedford and Fall River in the
wage reduction movement. In fact,
labor officials look with suspicion upon
any curtailment policy as d wedge in
forcing reduction Curtailment in the
Pacific Mills and the Arlington Mills
in Lawrence was also watched in other
sections.
Trading in the industry for the week
WAS at low ebb. There was vlrtu-
ally no change from the inactivity OF
asst week either in the raw cotton or
the cloth or yarn markets. Prices were
reported to have held in the finished
goods trade, yarns even developing
some recovery as cotton advanced. Inc
recent advance i'll cotton prices was
confined chiefly to short cotton, though
extra staples this week showed some
trace of strengthening.
Fall River print-cloth sales for the
week were estimated at 1l5,OO0 pieces,
the most encouraging item IN the goods
market.
Cloth brokers confirm in their quo
tstions the complaint of the New Eng
land mill men that the mills IN the
South can quote lower prices on nm
ished goods.
Thc disappointmenls attendant upon
the January business had created more
conservative estimates for TINS lnontn'
espccially since the wage reduct'on
movement was under way; but orders
New-York tribune., 1922-02-19

have been even scarccr in finished
goods than was counted upon for Feb
ruary. For one thing buyers do not
seem to fear inability TO get goods and
feel under no necessity for providing
for future needs.
Mill stock quotation in both New
Bedford and Fall River shares show
little variation from the first of the
year, when there was more general
optimism. The biggest change in the
New Bedford share prices is shown by
the Nonquitt, which recently passed its
dividend the first mill in the city to do
this in seven years The quotation
early in the year was around 10Y. 1t
is now priced at 20 points less. The
Union Mills o. Fall River have fur
nished the only large decline. The
present quotation of ITS is 25 points
under the price early in the year. This
drop is attributable, however, to the
payment of the s35 cash dividend re-
roYflV
New-York tribune., 1922-02-19
80, ,OOO,OO Work Days
Lost bv British Strikes

LONDON, Jan. 2s (By MaiD About
$4,000, 600 working days were lost as
the result of labor disputes in the
United Kingdom last year. says "The
Labor Gazette This is the greatest
loss of working time from that cause
ever recorded in the British Isles and
is more than three times that of last
year. The number OF workers involved
was about 100000.
This compares with loss of 27,-
100000 working hours in 1920, when
about 100000 workers we:e involved
In labor disputes.
New-York tribune., 1922-02-19
d. & Il. C.. Bonds

These creditors consisted of thc
holders Of the two issues of underlying,
bonds, and junior to the claim of
these creditors, the holders of the re-
funding > per cent bonds, and Junior
still to the claims of these the holders
OF $4,000 900 of adjustment 7 per cent
bonds. The Western Pacific Railroad
Corporation bought about one-half of
these adjustment per cent bonds. so
that it held the dual position of being
a creditor of the Denver Rio Grandc
and an owner Of the property subject
to the lien Of the other creditors.
1t is conceded by the various inter
csts that have a finger in the Denver
&, Rio Grandc pie that the underlying
mortgages that is, the two issues %
first mortgages, one secured by first
lien on the Eastern half OF the Denver
&. Rio Grande and the other by first
lien on the Western half Of the prop
erty, should remain undisturbeo.
h,raacdve; ,desbAH,,r betaoinununun
The Western Pacific Railroad Cor
poration asserts that the Denver e. Rio
Grande cannot earn enough to pay the
interest on the two junior issues of
bonds-the rcfunding IS and adjust
ment rs, and Furthermore that the
property itself needed the money spent
on it xnd that its needs could not De
financed through the sale of additional
New-York tribune., 1922-02-19
Great OnrusI1 Of Buyers Is Noted Here;
Many Haze Purposes Other Than Buying
NJ HN are large number of

w Ply Professional s.s large s.5c".. ""%'', s." of
nccted with the department
and other retail stores throuphout
inc country. visiting the Wholesale
markets at present? Despite the
subnormal business that is sup
posed to be going on in various sec
tons of the land. there, has been
more than the normal seasonal in
huX of buyers into New York in the
last two weeks. Similar conditions
are reported from st. Louis, Chi
ca2o, Kansas City and other buying
centers.
INC obvious answer is that the buy
eIs have como to tho market TO buy
goods Ihls is true TO some extent. but
theio arc other factors in the general
scheme OF things now that have actu-
&ted the professional purchasers to
''Sil the sources of merchandise.
ne buyers are here and most Of
'hem are buying goods not in the large
qu"hNil'cS that characterized their on
efa,lohs IN war days and in 1919 and
early l"2o, but in larger amount, than
'hcy d'd on their trips at this time last
wear " N'''S 'iN' I
New-York tribune., 1922-02-19
Am. Wooden Withdraws Dept. ;

The American Woolen Company yes
terday announced the withdrawal from
further sale for next fall of overcoat-
ings and suitings in Department 3. II
is understood that this department COW
ers the production Of thirty mills up
to October l.
The American Woolen Company. &C
cordng to reports, is in Il better posi-
ton, so far as outside orders are con
cerned, than other mill firms. Over
coatings still provide bright spot in
the trade, but few mills are sold up
on them
New-York tribune., 1922-02-19

TTc Usod tNc Denver q RIo Grandc s
credit to build railroad from the
western end Of the Denver & Rio
Crandc to the Pacific Ocean, at San
Francisco. This new road was called
the Western Pacific. The Western
Pacific stock was taken by the enver
& Rio Grandc and $5o,00o,000 Of West
eln Pacific first mortgage bonds we're
issued under An agreement by which
the Denver {. Rio Grandc agreed to
make up any deficit in the earnings
Of tho Western Pacific, 50 a 10 pay
operating expenses. maintenance
charges. certain sinking funds. and
the interest on the first mortgage
ouds. The Denver & RIO Grandc also
furnished the Western Pacific with
additional fund and took into its
treasury S25.00o,0oo Of second mort
..agn hnnds OF .hn MaStnru Paclte
New-York tribune., 1922-02-19

rcfunding 5 per cent bonds. A COM
'nittee vas formed to represent tho
refunding per cent bonds. ana this
committee started negotiations with
the Wcatern Pacific Railroad Corpora
ton These negotia tions were extended
over a year. Eventually, however. the
protective committee. of which John s.
Hammond Wa chairman, and thc West-
crn Pacific Railroad Corporation camo
TO an agreement. and plan of re
organization for the Denver & Rio
Grando was formulated and recently
rnndc nnhlic
New-York tribune., 1922-02-19
Drastic Reorganization
Needed for Denver Road
Stud, of Earnings Over Period of Years
Reveals That CLOSING Over of
Statistics Will Be Hazardous

ME
failure
Of Jay Gould, of which Could
Atlantic the Pacific He
Missouri
The Denver Wabash credit in an
attempt the Wheeling Waba
bl4h Terminal
which he partly controlled nd nus his antc outlet
New-York tribune., 1922-02-19
Solomon Quits Affiliated

S. Solomon, who since last Septem-
Der has been Easement" ready-to-wear
manager for the Affiliated Retail
has resigned his position
to return to resident buying for his
old accounts. His resignation becomes
effective March !. When Mr.. Solomon
Joined the Affiliated staff he retained
some of his old accounts, but moved
his Offices to the Affiliated headquar
ters. He will now re-establish his resi-
dent buying office at 1851 Broadway.
New-York tribune., 1922-02-19
Law Designed to Prevent
Selling for Tax Losses
Buying Back Within 80 Days of Property
Such as Stocks, After Disposal to
Show Loss Forbidden
BY Morris F. Frev

Assistant Treasurer Gtnronty Co1uponu Of N,n yn
of certain charcos ~
deductions account Of losses On - ~,
changes provides that no n
transactions ,o.
where il anncar s+ - 49,
thirty days before alter the date of the property the
acquired otherwise than by behe inheritance
property and the property acquae was held nv Tho
disposition ~ '"'N'
New-York tribune., 1922-02-19
keystone Phone Earnings

The keystone Telephone Company. in
its initial earnings statement Of the
year 1922. showed balance available
for dividends, surplus and reserve for
January of $13,257. compared with
s2,s56 in January of last year. Net
earnings amounted to $55,142, against
$4O.694.
New-York tribune., 1922-02-19
Ola -. G. X. T.. Stock

Tho Denver & Rio Grandc had out
standing approximately $40 ,O00. 900 Of
preferred stock and $3s 900 900 of com
mon stock. Enough Of the stock was
held Icy the Missouri Pacific and the
Gould interests to give them control
of the board Of directors OF the DEN
Yer 4 Rio Grandc. The board and
tho majority stockholders could vote
to have the Denver &, Rio Grande as
sumo any liabilities they pleased
unless the minority stockholders
undertook to prevent such use Of the
Denver & Rio Grande's credit by in
junction proceedings or otherwise.
As d matter of fact the Missouri
Pacific and the Could interests simply
sent out proxies for stockholders to
sign, and the vast majority Of them
took as much interest in the Denver &.
RIO Grande'5 affairs as was needed for
dcpositing their dividend checks when
they got them. They signed the
proxies without even knowing what
they meant.
The Western Pacihcs earnings were
not and could not have been expected
to be, sufficient TO pay its operating
expenses and interest on its first mort
gage bonds. The Denver & Rio Grande
was not itself earning enough to CON
tlAue It's dividends and TO make up the
Western Pacific deficit. A receiver
ship proceeding was brought against
the Western Pacific. and in 1916 the
Western Pacific was sold under fore
closure and the propertp WAS turned
over 10 an operating company the
Western Pacific Railroad the stock Of
which was held BY the Western Pacific
Railroad Corporation.
In the mean time suit had been
brought against the Denver & Rio
Grande to compel j. to pay The interest
which had been defaUltcd on the West
ern Paclic first mortgage bonds. and
in 1917 judgment 'or s3s .0O0. 600 vas
given against tho Denver & Rio
Grande in favor Of the Equitable Trus t
Company. which was trustee for the
then defunct Western Pacific first
mortgage bonds.
In 1918 a receiver was appointed for
the Denver & Rio Grande because 1t
mad failed to pay the judgment for
:3s 500 900 against Il In September.
1920. the whole property Of the Denver
& Rio Grande was pu Up al auction.
This property belonged 10 the common
and preferred stockholders Of the old
Denver & Rio GraAde Railroad Com
paNy. They could have pat up the
$3S.000, 900 necessary 20 pay the judg-
ment found against their company and
have continued to own their property,
just as any other debtor could do in a
similar case. They failed TO do SO,
nor did they bid in the Denver & Rio
Grandc when it was sold at auction.
Actually the Western Pacific Railroad
Corporation bid S5.000o00 for the
property and acquired ii. This $4,000
600 vas applied. Of coursc. toward
meeting the s3S 600 .o0o judgment.
The holders of Denver & Rio Grandc
preferred and common stock were
eliminated when the property was sold.
They rad no more interest in it. The
engraved certificates which they held
represented nothing but the paper ana
ink of which they were composed.
There remained the creditors Of the
Dnnver & Rio GranAc
New-York tribune., 1922-02-19
Sweden Seeks Exchange Policy
P'an Advanced to Resume Redemption Of Notes
i'll Gold and Establish Sight
Credits Abroad
Special Foreign Financial Correspondence

EDiS exchange and likely
De eea'y influenced by the policy outlined povernn
customs treaties committee statement issued 1ho
STOCKHOLM. February II.
committee alter making exhaustive measures for
ana strengthening the Swedish emphasizes that Sweden ,
exchange ,rinp
New-York tribune., 1922-02-19
Ch0Stened GrouD

ne buyers are a chastcncd croup.
hucNy IS the buyer who did no, re-
'''Nc marsh criticism from his official
Superior last year for the size of tho
sVocNs ne was carrying when thc slunp
sponsiblc for the profits that his do.
New-York tribune., 1922-02-19
OnPcfitiOn Is kccn

NV nat did YOU come to the market
TOR Was asked one Of two partners
IN firm conducting live department.
store in the West "To buy goods and
New-York tribune., 1922-02-19
$4,000 total possible exemptions fol

$4,000 total possible exemptions for
this period.
It Will be noted that for 1922 and
the reafter, by the repeal Of the excess
Profits tax, interest on Liberty Bonds
received by corporation is not sub
ject to Federal tax.
This is the si4th OF series OF IN
te,pretotire articles or the mcac tnr lac.
1c'Ttton for The Y''ibunc By Nj. Frey
Others leW appear on subsequent Sun
ddys.j
New-York tribune., 1922-02-19

income or profits taxes were imnos-d
al rates higher than those Of similar
taxes IN this country, the credit al
,owco wiped out the part Of the
united States tax attributable to in
come derived from sources within tho
united States. In order to prevent
TINS condition the 1921 ac; provides
that in no case shah the amount of
credit exceed the same proportion Of
the United States tax which the tax.
PAYERS net income from sources
without the United States bears to
hls entire net income. Members Of a
partnership or bencticiaries Of An
estate or trust may take credit for
thelr proportlonate part Of the taxes
above outlined which have been paid
by the partnership, estate or trust
No credit for taxes, however. is al
lowed citizens or domestic corpora
tions entitled to the benefit of Sec
tion 262 OF the income tax law
New-York tribune., 1922-02-19
Bond Exen ptious

he Liberty bond acts provide chat
interest on y per cent bonds and
. Il per cent notes IS entirely exempt
from Federal income and profits taxcs.
interest on all United States bonds is
exempt from the individual normal tax
and tho corporation income tax.
Interest on Liberty 4 per cent and
4 a per cent bonds is subject to ndi-
vIdual surtaX and corporation excess
proilts tax, subject TO certain sncciic
exemptions. Formerly these exemp-
tions were dependent upon holdings
in particular issues and original sub
scriptions. The now law simpifies the
exemptions by consolidating various
eNcmp ptions which apply to particular
issues. The exemptions allowed under
the new act are as follows:
Period January l, 1921. to July . 1928:
$4,000 in the aggregate of first as,
first 4 }4s (issuo Of May and
October "a, 1919. second Is
and ~ s, third 4'.s, fourth
AS, Treasury certificates and
war savings certificates.
$4,000 Of first Ia tissuc Of October
24, 1918, only).
l2o.000 in the aggregate OF first As
first as issues OF May 8
1918, and October q, l9lS)
second 4s and as, third a. $
and fourth AZ.
100000 total possible exemption for
this period
Period July ,, 1928, to July 2, 1926:
$4,000 in the aggregate Of first 4s
FIRST 41ls tissues Of May .
and October "a, 1919, second
4 and 4 "a :. third 4i4 s. fourth
i'ss. Treasury certificates and
War Savings certificates.
10000 IN aggregate Of first 4s,
first 4i4s lissues Of May 9,
1918, and October 2i, 1879,
second As and AS, third a. S
New-York tribune., 1922-02-19
foreign Taxes

=, under the 1921 act the income tax
~ an individual and the income, war
S.. SS.onts and excess profits taxes Of a
ts."estic w. corporation, as computed for
~ taxable year, shall be credited with
~ IN the case Of a citizen of the
United States, or a domestic cor
.pofatlon. any income, war profits
"a. .no excess profits taxes paid during
~ oae taxable year to a foreign country
"a possession of the United States;
~ In the case Of citizen Of the
tTn'ted States, such taxes paid dur
..k the taxable year to possession
~ tne United States; and (c) in the
En. iE:se o. an alien resident of the
;Sni'ed States, such taxes paid dur
ca rns the taxable year to any foreign
~sI%o.ntry. II the foreign country of
men re is a citizen or subject in
,~pos'ng such taxes allows d similar
ss..scit TO citizens Of the United
T1s'es residing in such country
die former law allowed a credit.
;r.. M Tor dollar, against raX for any
4.ne or profits taxes paid to any
81 .sh country or To any possession
'ae CHs.<d States. Where foreign