davidaulloa/AmericanStories huggingface dataset:
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
New York Produce Market

New crk. Jan. lb.A
BI'TTER-s steady: receipts s13.:
creamery higher than extras ~ -:
creamery c~lra%. ~ score. So lrsts. SIS
to 81 score. 40 a 52a: packing stock
current rlr,,. make I,' NJ "a: ,n.s ,ossc.
fresh gathered ,x;ra frsts Al a -;
firsts $50 40: New. Jersey hcnnery
whites LEGALLY candlod extras "a: do.
uncandlcd extras y q So; state nearby
and nearby western honncry whites
by hennery browns extras 4oW is; Ic-
frigrrator tirsts 31032.
POTATOEs-stoady: bulk por $50
pounds upstate white a.JM ESQ; per
1o6-pound's sack 190M210.
NEUTRALITY-SUSPICIOUS.: bulk per ton
white Danish 1000 2SGo: red Danish
5000 a 5G0o
Interest in tho local market for raw
sugar was very limited today and tlrorc
We're no transactions reported in Gu
has. Tho spot price remained unchang-
cd at 5.34c for centrifugal. Cuban
holders offered prompt and second half
ruary Cubas available at sc c f.
The raw sugar futures market was
hardly moro than steady in tone. On a
little scattered liquida ton prices on
or and held close to initial figures
throughout the day. Sales for the day
were estimated at only $500 tons. with
final prices net unchanged to two
point NfcllnH. closing. MdFtn SO,
MAY $50. July 800. September 1857.
The market for refined sugar was un-
changed at $50 cents for fine granu-
lated with demand very quiet.
lTOUR-Steady: spring patents $40
0DG15; spring clears $40 to 600: soft
winter straights 500 to 62o; hard win
ter straights Clio to $40.
WHEAT-Stc3dN: No. | dark north
crn spring c i f track New York do
nestle 1913: No . red 1874: No. . hard
132a; No. Manitoba 1919: No. mixed
durum 100. track New York for
export.
CORN-Easy: No. . yellow and No.
. white 904: No. mixed 500 New
York all rail.
OATS--Markct steady: No. 2 white
551 to Sc.
PORK-Quiet: mess ESQ to 1850;
family 30 to 49,
ARD-Firm; middle west 11T0M
1880.
tDTTONSEED O1L-Steady: prime
crude 1921 to 975: prime summer vol
low spot 1870 bid: January 1917,
March 100, May 1923. all bid.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
COMING EVENTS
Jan. 16-Maine Sheep and Wool Grow

Jan. 1G7-Naine Sheep and Wool Crow
sers, Association ASS, ,t annual meeting
jan my 7i nall, AufsI Thrift week.
Jan. 1S-Directors' meeting Maine
Children's Home Society, Augusta.
Jan. 21-Annual meeting Somerset
Farmers Cooperative Telephone Co..
Jan. 2o-Charity Ball. Augusta.
Jan. 26-27-N. E Commercial Execu-
tives at Greenfield, Mass.
Jan. ,27a.,Dedication Maine spinning
Jan. 30-31-First section lecturers
subordinate and Pomona Oranges.
Jan. siMMaine Fish and Game Assoc
citation annual meeting. State House.
Feb. i.s@second section lecturers sub
ordinate and Pomona Oranges. Au-
Feb. S-Androscoggin County Teachers
Association. Auburn.
Feb. 12-Lincd1ns birthday (Monday).
Feb. 14-St. Valentines day (Wednes-
Feb. iA-Kora's annual Ladies' night.
Feb. 22--Washington's birthday tThurs-
Feb. a2.-Maine Society Sons American
Revolution. annual meeting, Portland.
Feb. 26-Automobile Show opens at
Portland.
Msrfh fUSHar r eSes meet Inte s
Brunswick.
March 21-22-Statc conference D. A. r.,
Watervlle.
March 26-30-Farmcrs' Week. Coll
lese Of Agriculture University OF
Maine, Orono.
Maine Fair Dates and Secretaries -"
Jan. 16-Maine Sheep and Wool Crow
Jan. 24-26-International Poultry and
Pet Stock. Calais. John w. Goode,
Calais.
t..s
Winter Carnival 49,
Feb. S-10-Bates college. !.
Feb. 15-17-Augusta.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
BOND MARKET
New York. Jan. I,

New YORK. Jan. 10.
Fresh complications in the German
PREPARATIONS situation combiped with a
decided reaction in foreign exchange
rates induced extensive selling Of for
cign bonds in today's market, the gems
eral list displaying irregularity with
losses outnumbering the gains. =
The decline in foreign securities was
conducted in an orderly manner. Dos.
minican Republican SIS lost two
points. and Seine Is Il. while ItaliaT
6s. Brazilian IS, Bolivian IS. State OF
Sac Paulo IS. French IS. Marseilles 6s..
PARISH ons-Mediterranean 6s, Fra
mcrican 7!s. Serbian SIS and Prague les
yielded point each.
Except for gains of four cents on
Liberty 3as and eight cents on the
third AS. all the active L. S. govern
| ment securities showed losses of two
to six cents.
The chief features Of the railroad
group were a break of three cents in
New Haven 6s. weakness of Erie and
Northern Pacific issues and further re-
covery in st. Paul bonds.
Chile Copper 6s off two. and Marine
IS off one, were the weak spots of the
industrial group in which Cerro de
Pssco IS. Lorillard Tobacco Is and
a point or more. Brooklyn Rapid Tran
sit -4s broke 80 points and the stamped
Is one. 80
Total sales. par value. were So
924 600.
Good absorption was reported in the
$50,000.0 G0 Cuban 81 per cent. bond is
sue which was put out at 99i to yield
| made today that the recent S7,274.0o0
offering of Nickel Plate second and
| improvement mortgage 6 per cent.
| bonds had been OverSubscribed.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

, New Haven. which got as low as 1Gs
but rallied at the close to 17s, where it
was off only on the day.
steel shares else forfeited their
had been pushed up to s3s. dropped
back to S0S for net loss of l. L. s.
Steel got as high as 1913 but yielded
to 105t. or { below saturdays close.
each registered net losses Of more than
a point.
There were few exceptions to the
downward trend Anaconda closed at
| 49S or Is points above, Saturdays
ports that terms of the Anaconda-Chilc
merger would be announced after the
, market. closed. Chile improved only
/. closing at 291. Leather and shoe
Stocks also were strong. Central Leath--
| er common and preferred rising and
"A points respectively. American Hide
| e. Leather l !. and Brown Shoe L.. The
usual selling on the good news" fol
cent. stock dividend by the Endicott
Johnson Corporation. the stock closing
at net loss of "a. Marine preferred
dropped to 4os, its lowest point since
| Call money opened and renewed at 4
| per cent. but dropped to 81 in the aft
| ernoon. closing at that figure. Little
! activity was apparent in the time mon
/ cy market some 3O-day maturities be-
| kers bidding ~ for loans ranging from
! 60 days to six months. Bankers de-
mand Al for the longer maturitics.
Commercial paper continues quiet with
the bulk OF the prime names demand
4. ing Al per cent.
| Foreign exchanges were weak De-
mand sterling dropped to s4.662, or
more than two cents below last week S
| high. French francs dropped more
| than Is points below $50 cents. and
| German marks made another extreme
low record. being quoted at 7oa-100th of
Il cent. or about 1900 to the American
| dollar.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

to August, the rate suffered steady
decline.
The return of November. 1922 is we'll
above that of the same month of 1921
when a rate of only 3S5 per cent was
reported.
In reducing rates generally through
cut the country last spring. the Inter-
state Commerce Commission stated
that the deductions would encourage
the Offering of larger volume of
freight with the result that the roads
would be able more easily to earn the
return on.investment. This prediction
proved good but on account of the shop
strike. failed to bring the expected re-
suit with respect to net operating in
come.
The railroads. during 1922. loaded
approximately II per cent more freight
than in 1921. During the fall months
more freight was handled than in the
same period in any other year.
Indications for 1928 are that net in
come will be sufficient to earn the full
return allowed by law provided the
shortage Of equipment now hampering
traffic can be overcome
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
Adjusting Capital to Value

~ In the course OF time, where
,.h;t oolicy is followed, the assets OF
H.. eoruora,ion become so dispropor-
to,,t. TO the amount of capital stock
ot,',uding that for various reasons
,rnlained in detail in the former ar
trie il becomes desirable to bring
Them into more appropriate relations.
Il, Is common practice to have a share
|oi stock represent SlO0 OF assets, and
certificates Of stock generally so state.
Each share, however, represents pro-
oortonate interest in the entire assets
|oi the corporation, and as surplus ac-
leumulates the shares often come to
Ihay. value much in excess OF 500
,ach A stock dividend" distributes
Ito the stockholders additional shares
|ba,.d on the surplus accumulations,
lou, tn. effect OF this is simply to di-
lutte the value OF the old shares. The
corporation assets which the stock
represents are in no respect changed
10y Increasing the amount OF stock.
There is no distribution of values
from the corporation to the stockhold-
ers by means Of the stock dividend"
The word dividend in this connection
is misleading.
I The most important effect OF such
a stock issue is in transferring cap.
ital which has been classed as surplus,
and which is under the control Of d.
recors and not permanently dedicated
to the business, to the form of perma-
nent capital. A board of directors
may draw en- surplus for cash divi-
d,nds, but when capital stock has been
issued the assets behind it cannot be
distributed except by action OF the
stockholders.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
Chicago Produce Market

CnlcdSo. JAN ID.
Although an unexpected decrease Of
the United States visible supply total
brought about something of a rally
during the late trading in the wheat
market today prices averaged lower.
largely rs result of heavy worlds
shipments.
The close was unsettled at the same
as Saturdays finish to &c down with
May 119 to 1874 and July 1922 to 1929.
Corn closed unchanged to sMt lower.
oats &c off to ac advance. and provis-
ions varying from &c decline to rise
of sc.
With world shipments Of last week
greatly in excess of the amount for
the preceding week and for the corre-
spending time last year. and with Liv-
erpool quotations declining in conse-
quence the wheat market showed
sagging tendency until after midday.
This tendency was emphasized by the
fact that car lot receipts at the prin-
cipal western markets aggregated 1411
cars against S3S a year ago.
Meanwhile a majority of traders were
apparently unable to decide for them
selves whether clashing of European
interests was at present to be con-
strued as likely to bring about higher
grain prices or the reverse.
Be2F in the wheat market urged
that for the most part European coun-
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

FURNISHED to the Kennebec Journal
through the courtesy of J. A. Carnage
& Co.. of Augusta and Natcrville.
Washington. Jan. 15.--Net operating
income of principal railroads is again
working toward a level from which it
will be possible to pay security holders
the five per cent return on appraised
value prescribed by law.
Earnings representing rate OF re-
turn of 4.46 per cent on an annual basis
were reported for November. according
to information just received by the In
tcrstatc Commerce Commission. This
is gain over October, September and
August when the rate was low as re-
suit of the increased expenses made
necessary by the shipments strike. In
October. net operating. income was suf-
fcient to represent a return of 4.05 per
cent on an annual basis. In September
the rate was 2.S9 per cent and in Au-
gust 2.65 per cent.
The rate reported for August repre-
sents the extreme low point Of the
the year. March, 1922. represents
the peak, 5.S3 per cent. From March
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
NEW YORK MARKET
''''ures Of the Days Dealings in All
the Leading Stocks

New York. len 15-rro,o, ooo
lion Of additional Cor,nom ovoupa-
With reports Of a r,or.. thrn., oiai.oiS
titude on the mart of ,h a,e ;rhh ~
provided SPECTATORS for ,h I'iaS SncIira >
with an excuse for an aesn,,1t az, nv, ~
tsrs s s LOCK-, market. losses of one to
.:nong Industrial shares VA! and cu nnnia n
ues.
Operators for tho ADVANCE wal. .o
successful attcmnts ~ " ,nI,, niue Two
trst by bidding nn no .,t 10y .,c i,s.;
then by a brisk bnvi, 49, o Stoohs ana i.
failroad shares bu t ~, In mo. cli.ent IN
soandoned their const , Mi e'cile ua,,y
convinced that tho techuicoi oo niHi =,
q the market warrantnd n Ionotiio,'
The bear interest, wd haa e., reaction.
freely around tho mi NAL f o ,h a Stoci.
ind Prices bcpau Nv, W. VI riit ilrst hou!
ne list Ind,Istria,e ga 'nnous s ,3u.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

...,,.,;on Of this subject in the
6oss, Of this publication has
Eb: ,' Considerable comment, but none
49, sosotroyerts the essential facts =;
ct forth. These, restated
; sts,' re as follows: ...;... of
4 y Io o.s.ts above corporation liza.
e ~. including outstanding capital
|slnss I 4 surplus is frequently Gre
~, IL, :. , new corporation by issu-
s' he stock at a prc S,nn ,h iot m n
|ls'sa :; The object in so doing is to
|laut, ~ nr,arein of working capital
|f'v,as.. . of the liabilities and a buff
% a !. n,otect the legal capital from
|lit % p.U;f losses should occur
lis, y. ,.soect a precaution against
. nS ,.;.s' As an example OF paid
imfse,s,m,s NAV be mentioned, the
q !ms., %oo Of Locomotive Engi,-
O'~' National Bank, OF Cieveland,
s 9. ,,,oitai Of which was subscribed
ft ~, INNER ner share, thus creating a sur
4. wv y; 100000 when the bank be-
ps S - Aside from such pro-
g. a.. s'' surplus is usually created by
',ls s;ss earnings back into the bust
t tI!a y. rather, allowing them to re-
N.Y. .;s N instead Of distributing them to
a '..shoId.rs. Earnings thus retained
s.',,a. an indistinguishable part OF
=. ss.1 oserating capital. They increase
n, !. .arr,ing power Of the business and
\. ts :. s doing increase the value of the
o!.s,,n u stock. The extent to
ea;.S earnings are thus withheld from
ss: ..,S usually depends upon the
,ees'ss ..;i for charging the bust
W. # lisa way OF providing capital
i ie,' growing business without going
=. NJ me public for more.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

| United States dissolving the old Stand
ard Oil organization went into effect.
This was in 1911. The business, as
is we'll known, dated back far beyond
that. The company by the reinvest-
ment OF earnings had built up large
surplus-according to Mr.. Teagle's
statement, approximately $lo2O00,OOO
just after the dissolution. These val
ues existed in the company's proper
ties in excess of the values represented
by the company's stock. OF course
the earning power Of company is not
in its capital stock but in its physical
properties and in this case the earn
ing power was not simply $lOO,0OO,-
600, but nearly three times that.
The company was starting anew al
ter the reorganization. 1t might have
sold off $l92, 100000 worth Of its prop
critics and distributed the proceeds to
its stockholders, and proceeded with
as much capital as Mr.. Frear gives it
credit for possessing. Or it might
have been recapitalized at that time by
the conversion OF surplus, in which
case Mr.. Frcar would not have COM
puted the later profits upon the basis
of $lO0,O00,00O capital. 1t proceeded,
however, with an actual investment OF
$2o2,OO0,0OO.
Since that time its annual dividend
distributions, as stated by Mr.. Bed
ford, have not averaged per cent. on
the invested capital. The remainder
OF the earnings we're rc;nvestcd from
year to year, and Mr. Bedford has
stated the average results computed
upon the average amount Of net cap
ital employed in the business. Mr..
Teagle in his statement referred to
above gave the profits for the years
1920 and 1921 and the first six months
of 1922 as "S2l3,720,2l3, or at the
rate of So per cent. per annum on
the net assets" This is at a higher
rate Of annual earnings, but lower
percentage. than the l0-year average,
showing how the reinvcstment Of prof
its increased the earning power in the
later years.
Standard Oil has been an exception
ally successful business over long
term of years, largely owing to the
phenomenal development in the sup
ply and uses Of oil. Judged by per-
centage upon the capital employed it
has not been as profitable as some OF
the smaller oil companies, but luck is
large factor in the oil business, and
if the profits of all the oil companies
could be measured against all the cap
ital that has been invested in the oil
business the percentage probably would
be lower than the average in other
lines of business.
As we have previously said, it is not
strange that many people should not
understand the complexities of corpo-
ration finance, but lawmakers may be
fairly expected to inform themselves
to speak with some degree of accu-
racy when addressing the House Of
Representatives. The public has a
right to expect that, and most people,
even though unfamiliar with corpora
ton bookkeeping would know that it
made a difference in the profits
whether a company was operating
with only Sl00.MDOO0 worth of earn
ing power or with an average fer the
period OF ever $500,00O,GO0 worth.
Building by Means ct Profits
Perhaps Mr.. Frear considers that
because this company had only $780,
100000 Of stock outstanding it had
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
Maine Fair Dates and Secretaries
ogsina in Western Hills

In the West logging camps are
mostly situated in the hills and the
heavy loads OF logs have to be hauled
out, always downhill. Often that
helps to make the hauling easy, hut
sometimes the grades are so steep
that it makes it too easy-so easy
that it entails difficulty. Indeed, in
these instances the term hauling is
a misnomcr, for that implies pulling
the load, and the operation actually
consists in pushing against the load
instead of pulling it. Two and a
half miles of specially constructed
track is used at one Western logging
camp for transporting heavy loads
on a large motortruck down q very
steep grade. The truck, described in
Popular Mechanics. is six-wheeled.
and has powerful brakes on its four
rear wheels. These brakes are con-
trolled exclusively by one man. while
another takes care of the driving and
steering
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
Boston Produce Market

Boston, Jan. Is. 70
BUTTER-Extras 53G53l; inrsts 50
@52. M
CHEESE-Firsts 263@27l .gg
CORN-No. 2 yellow 92@93. -
tras 52053; white and mixed extras
5O@52; western extras 48@49. -
FLOUR-Spring patents, 196-lh.
sacks. special short 7S5 1925: standard
HAY-No. 2 timothy 260c630. p
HANDSPRING 5@2S. y
OATS-Forty pounds, 60061. =
PORK-Medium backs $500 300. I
POTATOES-Green Mountains 1870 q
40 per 100 pounds: sweets 100010
per hamper. -
SUGAR-American Sugar Refinery
quotes $50 cents in 100-barrel lots less
per cent. for cash. -
VEAT-1oMcA rs
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

tries were in no financial position to
90 to war, and that warfare of a des
ultory kind would further restrict buy
ing power. On the other hand. drought
conditions in important sections of the
domestic winter wheat territory were
unrClieved. Under such circumstances
and with no new EXPORT business of
consequence talked Of, the volume of
trading here was small and the market
easily influenced.
Corn and oats reflected the weakness
Of wheat, but rural offerings remained
mcagrc. and other markets were per-
SiStcntly outbidling Chicago.
In tho provisions market. the effect
Of lower quotations On hogs was about
counterhalaaced by liberal export
clnarauCeS
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

In some woods, notably The oaks, q
figure Is produced by quarter-sawings
says the American forestry Magas
zine. In practically all woods there
are ribbons of tissue which run ct
right angles to the axis of the tired
like spokes in q wheel. These ard
the rays often called medullary Oh
pith rays because some Of them ap4
pear as extensions Of the nth into
the wood. In all the conifers and
most hardwoods these rays are tod
fine to show distinctly. In others, al
in maple. cherry and mahogany, they
are distinct but not conspicuous.
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16

ings which are added TO surplus and
USED to enlarge the business of the
companies have the effect of increas-
ing futures earnings, all of which are
SUBJECT to the l2H per cent. tax and
capital stock tax. On the other hand,
earnings which are disbursed in divi-
dends are scattered widely and to
considerable extent pay no surtaxes.
finally, the values which are aecru-
ing to individual shareholders in the
form OF corporation SURPRISES, are all
bound to come under taxable review
sooner or later. A stock distribution,
while not a real dividend and there
tore not taxable in itself, is prclim-
mary step to real dividend, which
is taxable.
Moreover there would be a perma-
nent loss to industry by policy that
would force the distribution of cor
poration earnings into the hands of
stockholders. So long as they are in
the hands OF the corporation they are
bound to be used productivity, but dis
tri5uted to the stockholders in COM
7aratively small Sums they are likely
to be used in considerable part to en-
large living expenses, and never find
their way back to productive employ
ment. 1t must be remembered that
there is always need for more capital
in industry. The wants of an increas-
ing population Can be met only by i'm
provemcnts in the industrial equip
ment, which mean capital in the form
~
public policy to force corporation
funds into the pockets of the iffdi-
vidual owners.
"A Congressional Critic
The Hon. James A. F5ear, Con-
gresham from Wisconsin, in speech
in the House of Representative. has
commented at length upon Our discus
sion of last month. His statements
serve very we'll t. illustrate the loose
and misleading manner with which
this subject is frequently treated. 1t
says:
The bank iustihes SIS 100000 net profit
in 10 years on the capitalization Of Standard
Oil of New Jersey. or III rer cent. an.
nual net profit ON sloo,0oo.ooo, etc.
This refers to the statement, pub
licly made by Mr.. A. c. Bedford, of
the Standard Oil Company of New
Jersey, that in the ten years ended with
1921 the aggregate profits OF the COM
pany, before taxes, were the sum
stated. He said in the same statement,
however, that large as this sum might
appear to be. after taxes it yielded an
average OF only 1876 per cent. upon
the conpany's investment during the
period, and that it had been the policy
Of the company for many years to re-
invest i'll the business all its earnings
remaining after the dividends. These
statements would naturally suggest to
the careful reader that the company's
investment was more than 100000 900.
Mr.. Teagle, President Of the COM
pany, in his statement made last month
to the Senate Committee on Manufac-
lures. of which Senator La Toilette is
chairman. stated that the net assets OF
the Standard Oil Company CT New
Jersey at the close OF 1911 were $780,
100000 odd.
Earning Power in the Physical
Properties
Mr.. Bedior11's statement for 10
years covered the time since the de-
cree of the Supreme Court OF the
'Ccnrressicnal Record, December 40,
Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-01-16
What Our Soldiers Protect

In comparison between the national
wealth of the United States and the
number of soldiers now maintained in
the regular army. each American
soldier is charged with According
protection and national security to
$1.755.597 of the $350O0O, 0OO, 900 total
of the national wealth. Likewise,
each soldier is at present protecting
IS square miles of territory Of the
mainland and dependencies, and
giving S4S of the people of the coun.
try security against foreign interfere
ence with their constitutional rights:
All this at a cost of So per capita Of
population.