davidaulloa/AmericanStories huggingface dataset:
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
FORMER ANERICUS BOY
RESURNS FOR VISIT
Once A Carrier Boy For Times
Recorder When Pay Check
Was SIS A Month

Mercer B. McMatr, former Ameri- |
Gus boy, is. in the city for few
days, renewing friendships made a
number of years ago during his boy
hood residence here, visiting W. I. |
McMath and other relatives whom |
he has not seen in recent years.
Having served in the army at |
Camp Gordon, Fort Benning and |
Camp HUMPHREYS, where he secured
a thorough course Of army instruc-
ton in engineering, he has since
been promoted to the position of in
structor in the automotiye depart
ment of the engineers in Washing
ton, D. c. His unusual ability in
this line has won recognition from
engineers from all parts Of the coun-
try, and his future success is pre-
dicted.
McMatb was connected with the
Times Recorder in his early boyhood
and tells some interesting expert
ences while route carrier when the
Office was located Oh Forsyth street.
The Brooklyn Height route was his
assignment, and included the entire
| East Americas section, covering
more than four miles Of territory.
Il had to get up at $780, said he,
"and walk all over the county, it
seemed to me, delivering papers in
| the early morning hours. For this
only received s. month, consid-
cred a fine salary in that time for a
boy of my age. Some splendid les
sons were learned under the instruc-
ton Of the owner of the pape" and
its officials, lessons which have as
sisted me to attain my present posi-
ton. One lesson in particular was
that a boy must never quit his job,
no matter what came up.
There were only four carriers
! for the entire city city Of Americas
at that time, and we boys Lad a
terrible time, viewed from present
day status, covering 81 the territory
required"
McMath. attended the schools here
and praises the instruction which en-.
abled him to secure promotion in his
present position. lie is receiving
a cordial welcome from hundreds Of
friends here.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
Adjusting Capital to Value

(2) In. the course OF time, where
this policy is followed, the assets of
the corporation become SO dispropor-
tionate to the amount OF capital stock
outstanding that for various reasons
explained in detail in the former ar
ticle, it becomes desirable to bring
them into more appropriate relations.
1t is common practice to have share
of stock represent 500 of assets, and
certificates of stock generally so state,
Each share, however, represents a pro-
portionate interest in the entire assets
of the corporation, and as surplus &C
cumulates the shares often come to
have a value much in excess Of 500
each. A stock dividend" distributes
to the stockholders additional shares
based on the surplus accommodations,
bM the 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
by increasing the amount of stock,
There is no distribution of values
from the corporation to the stocllhold-
ers by means of the stock dividend"
The word dividend in this connection
is misleading.
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 di-
rectors and not permanently dedicated
to the business, to the form of perma-
nent capital. A board of directors
may draw on surplus for cash divi-
dends, but when capital stock has been
issued the assets behind it cannot be
distributed except by action of the
stockholders,
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18

I-,,;.,J C.,,o, ,-:--,-i,-,..,. -. III ,.,..,
- ~ a-rS,-:-,,,. '', .,,
IT,. No. F. 10iI ~ ~ ~ -,
m..,I - 5..,t La,-,- $40 -, 40
-. - ,,a,,- - i, -. a. ~ o'.'
$50, 800 - ,~,,,s Ia I.,;i, - ~''- 49,,
Mi -,ai ,''', vi, = "a,
-, ,,,a 49, a,nr-; ,.I. SOP 666 1a3
't , i,pi ; -, iT-oo0ry'
49,. a s,;S.ad ), ~. -, - - va
80 :, 80 =, IL ~. p n.y.
~. +ha c1r,,s.,,,, -, ~ -
-, -, -. =
'' - .,,, ,. Ia. 20 :, III
,,-o,y-+;H, a,l j., 49, o.. H.. -
H. 80. vs. ',n. -. Si0o nGA
na5 ~ ,.,ri. H., ~. a. ,,''o0''
fbo ro,,,na,,y ,,, 60 80; '. nav.
co. ~ aarc,,.,;.;,,y 7, ,; -, ~,
Id 20 sos 090o 1o o., - 81 ,, '-,'
a1t;aa a1d d;str;-,,tef 10 a as r. ~
- g,orL-boIders and nro..aJcJ ,,;tb
~ ,nrCb can;taI ,s NJ Er@2r owes # +
cTad;t ior nossess;ng 0r i ,7;al,t
b,vn bocn rdrao;,g1;ISj ,+ ,,,t time b,.
The conversion al s,rnl,. !, Which
C9Se ar Frear won1d mn. have COM
n~ted the later nrofits ma, tbc basis
1f SI00000O00 canital r nroceeded
SOD 600 Geo
Since that time ITS annual dividend
distributions, as stated by Mr.. Bed
lord, have not averaged per cent on
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
Ownership of Standard Oil

The idea that Standard Oil is
mainly owned or controlled by one
man or family should be disposed of
by Mr.. Teagle's statement before the
La Toilette committee. Even before
the dissolution there were 600 stock
holders. He said Of the ownership
Prior to 1911 the stocks Of all the com.
panies were held together through their
ownership by the Standard Gil Company
New Jersey), which prevented separate
ownership from coming about through nat
ural processes Of disintcgration. The de
cree. to DO away with this condition, di-
rected that the stocks OF the subsidiary
companies he distributed pro rata among
the stockholders of the holding company.
While. at the moment Of distribution, all
the companies had identical stock lists, these
processes of disntegration began immedi'
ately to operate and have been operating
ever since.
As illustrative Of this. at the time Of dis
tributon. the Standard Oil Company New
Jersey had 6,078 stockholders Twelve Of
these held more than one per cent. each OF
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18

- ---r-:.,- .I-I-l - -.-1--- -
n.S2 ~ -, ',.l ''u ,1 , 70 surplus anu ,
-, - - 80 - -',o .1S.''S2' % liz
so.''- 5. Law ,,.C 90 ot rlI' Us
l, l,.''.' Z - MSS Oh VI '.-eli d
s.'o - ~ "a. ~ ~, po. C0',, '.'H 4.IG
~-.,'I 500 IN ~: No; ,',I o'3'o. I- ,.
l,' -iii' -" M .. uLso,. So III wv
gl.lI -, =. : So1.l .. "-u'.y ana 10 "
- Iy &c SAtC.'Y pa! no o~'i '@1les
man 'i.l nus ".IilIt q! ( a.. ~ u
~. 10 t'lS-'' Io'..'. sin. oIIG.uoIS III ny
~. III u 90 p'. a..o' I ~ p.5ls d On
I'm - I'm ''-1'lo' ','>',o'o p"
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18

no r!Z., - t"ta. TT1ttS ~ mo-" tu2E.
il., cJp..ll, no ml1t,T &o~ mich PFC
ductivc property ii actually oWncd AMI
WAS employing. Th;, would mean
that ii two companies started in bust
Hess with the same capital, and one
OF them divided all its earnings annu-
ally among Stockholdcra while the
other restricted its division in order
TO increase the productive capacity Of
its works. the latte. would nave no
moral right to earn or ever pay diyl-
dgnds upon its capital accommodations.
That would be a violation OF the priIl-
ciple upon which all thrift is based. 1t
would mean that companies had no
right to Use earnings for expansion,
and the enforcement ct that idea OF
course wVIld put an end to that POI
icy. A merchant would have no right
to use the profits OF MS bushes, t. Ell
large that. business, or a farmer 10
use his profits to buy more Land, al
though either might invest IN the
others business or elsewhere As a
matter OF fact, the industries oi the
country have been built up manly Cu-
OF their own earnings. Let any one
read the history OF the development OF
the cotton goods industry in the SoHth
or in New England, or OF the shoe
industry, or the clothing or steel in
dustry, or of any other industry, and,
Judge OF the effects upon industry and
employment, and upon prices and the
standard OF living, of a general rule
denying all proprietors the right to eX-
pand their business out OF profits.
Example of a Great Merchant
There died in Philadelphia a few
days ago one of the greatest merchants
of his time. He was respected by all
who knew him, and seldom has there
been such widespread participation in
the tribute paid to the memory OF a
distinguished man. Mr. Wanamakcr
began his mercantile career with 4
capital of $1,000 How could he have
made his career if it had not been
legitimate to increase his capital out
of the earnings OF the business?
He built up a fortune estimated
from $30,0000O0 upwards, not in
speculation, but by the process, OF
steady, gradual expansion in a
highly competitive line of business.
His business in Philadelphia was
Incorporated in 1909 with a cap
ital of $7,50000O, but unquestionably
the net value of its tangible assets
was much greater than that. This
excess was surplus, which it would
have been perfectly legitimate to have
capitalized by the issue OF more stock,
Such an issue would in no way have
altered the actual value of the assets,
or made any difference with the prices
of goods sold in the store OF the earn
ings of the business. 1t would have
been purely a matter of bookkeeping
and of convenience in distributing the
certificates of ownership. If he hal
incorporated it 80 or 40 years ago and
made no change in the capitalization
meantime, the increase Of stock re-
CURED to represent the assets in the
last year of his life would have been
very large.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18

the eempany's outstanding stoes aad total
OF Just over aftY per can't OF De ez1sre
stock. Or October IL, 1914, tbaBe ~ere
HOS holders Of eomnon gtodk Rad neAiIy
10000 holders Of preferred STOCK IA Of
June 80, 1922, only six sha{shadsrs h-;d
one per cent. or more of TIC cornPSLy's
common stock These six sbsTsholSera own
a total of 28.4 per cent. Of tic comrany's
common stock The largest individual owner
Of common stock is Mir. John D. Rockefeller.
Jr., with il.4 per cent. Three of the 10
naming FIVE common stockholders CT fhe,
list. owning together 10 per cc:.t. os the
common stock, are philanthrOpic Institutio:.,
1t may be of interest to tie committee ;,
know that Mr.. John D. Rockefeller, 81,
has Tot been a Shareholder il the company
si1ee 1920, ana thai the late Mr.. William
Rockefeller owned only seven hundred
shares az the time Of his death
Furthermore, the company made effective
about year and half ago stock acqui-
s..ion plan under which is employees are
becoming s,ockho!defA The number of sub
syrhers under this plan is 1859 and the
rumbe: OF shares Of common stock already
allotted TO them Is 44,G36. Before the end
% 1925 when this stock is issued in the
names Of the individual employees there will
be added 70 tie company's stock list on the
basis @! position today. at Least $4,000 to
l. 900 common stockholders.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
The Soviet Doct inc

Mr.. Frca- protests that not l per
cent. OF the people of this country
believe in the Soviet theory and that
he does not himself, but possibly he
does not have a clear conception OF
either the Soviet theory or his own.
The essential error of the Soviet doc
trinc Is i'll assuming that the achieve
mcnts OF industrial leaders are Of no
yalue to society, and that the fruits
Of their labors can be appropriated at
the will OF the majority without any
disturbance Of the processes OF pro-
duCtiCn. They do not understand that
the men who have the genius to build
up great industrial organizations and
properties must have the use OF the
values they create in order to go en-
with their work. The more they have
to work with the more they accom-
plish, but if the capital they create is
taken from them as fast as created
their powers are limited. 1t is not 4
mere question of justice to the indi-
viduals' who furnish leadership; at
most they only get their living ex-
penses. The real question is that
OF free play for their powers in up
building the community.
The Soviet lays all emphasis upon
the fact that individuals own the great
industries, failing to see that but for
these individuals the industries for the
most part would not exist, and the
further fact that these industries are
supplying the wants of the population.
They worry lest an individual propri-
ctor will make a profit, even though it
is evident that his profits are being
used to enlarge an industry and
cheaper its products to the public.
The modern equipment which has null
tiplied the productive power Of indus
try many times and advanced the
standard Of living for the entire popu-
lation has all been provided ont OF
profits, butt the central thought of
Sovietism is to abolish profits
There may be a difference between
this view and the ideas of Mr.. Frear,
but it is 50 faint in the outlines that
anyone who accepts the latter is very
likely to accept the former also, par
ticularly If he accepts Mr.. Frear's
multitudinous misstatemcnts. Soviet
ism is built upon misunderstanding,
and when it comes to knowledge Of
business affairs, Mr.. Frcar, to judge
by his speeches and writings, has lit
tie advantage over the Bolsheyiki.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18


- q ha15aS aid e7e farmer oloc,
,::'e IS one q man who has made
4 handsome io5ts.ae n a comparatively
lev years, lor he IS only 81. ti:s nrsi
venture III the publishing business IS
sad to have been With an investment
% SlCOO which he had saved from
has salary IS a newspaper reporter,
and with which he made the hTst pay
ment on I newspaper IN Topeka.
Would anyone venture to argue that
alS p'o.'tS St0J'lI Always Fave Deen
liG1.,yd to ar interest return on that
<!.CIo. lie Z. t:c rS2ated owner to-
deg CT two drh1s, s.N weeIi'es, ta-ce
sc;ri-l131.il,lS and TWO mcnlllneS,
sever. OF ;3'n agricultural papers o.
VIDE c:.cIlasoI 'aTd large net edTil-
.l.-S. Hc!r aggregate E@'uauo3 runs
ltio TIE millions, and as III such cases
ne b.E @-cr-A2aS are made III me
i@tcr' years OF nan S career wien
TIE increasing earnings corhle up
GIcSiy. the Senator IS III a taiT way
t. 1aoN Mga up amon3 plRtoIrat5'
Iil5 pi.ihc>a q giving inio' maticn
"GI a1E!cc 20 farmers Is A!s2 h'gh'y
competitive: Emerson Immortal say
ing ui@t ii any man cou'c MAKE
mouse TRAP t,.'cr l.'ah any oineI, inc
world would peat paatAl 10 ms Goor'
IS Illustrated by the hi!.ionS OF l4rh'-
erS VINO nave beaten PAIN 10 EditoI
Glappcr door, looking Tor ADVICE
Here again 1t IS demonstrated til't
some men do not get richer than other
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18

Our discussion OF this subject in the
last number OF this publication has
evoked considerable comment but none
OF It controverts the essential facts as
therein set forth These, restated
briefly are as follows:
CD Corporation surplus consists OF
surplus assets above corporation La
6ilitieS, including outstanding capital
stock. A surplus is frequently Gre
ated Tor new corporation by issu-
ing the stock at a premium, Tor in
stance at Sl25 for a $lOO Share OF
stock. The object in so doing is to
provide a margin OF working capital
III excess OF the liabilities and a but
fer to protect the legal capital from
impairment If losses should occur
III this respect precaution against
emergencies. As an example OF paid
in surplus may be mentioned the
Brotherhood OF Locomotive Fngi-
neerS National Bank, OF Cleveland,
the capital OF which was subscribed
at Sll0 per share, thus creating a SUI
plus OF 100000 when the bank be-
gan business. Aside from such pro-
visions, surplus is usually created by
turning earnings back into the bust
ness, or, rather, allowing them to re-
main, instead Of distributing them to
stockholders. Earnings thus retained
become an indistinguishable part Of
the operating capital. They increase
the earning power Of the business and
by so doing increase the value of the
outstanding stock. The extent to
which earnings are thus withheld from
distribution usually depends upon the
opportunities for charging the bust
ness. 1t is way OF providing capital
for growing business without going
to the public for more.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
Corporation Taxes

In pointing out that corporations
pay a normal tax OF l2L2 per cent.
upon net income, instead OF the normal
tax Of 4 per cent. up to $1,000 and
per cent. above $1,000 for individuals
and partnerships, we should have
added that corporations are subject
also to a special tax in the form of a
levy Of 81 per $1,000 on the market
value OF their outstanding capital
stock. In. determining market
value" the Government takes into &C
count three considerations, to wit:
(a) The net assets Of the corporation;
CD The quoted market value of the stock,
if there have been sufficient transac-
tons to give them Credibility;
(c) The capitalized value Of net earnings
at current rates Of return in that line
of business.
Governmental practice is to take the
highest valuation indicated by these
methods. Evidently this tax applies
to surplus, for surplus will increase
the valuation by any Of these methods,
and when the surplus is large this tax
becomes an important addition to the
levies upon corporations which do not
apply to individuals and partnerships.
As explained in the former article,
if graduated taxes were levied upon
corporation incomes as upon personal
incomes, the effect would be prac-
tically to nullify the whole scheme Of
graduated taxation, because corpora
ton stocks are held by persons Of
varying incomes, and largely by per-
sons who are not subject to any OF the
surtaxes, or to the lower ones only.
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
An Example from the West

Not to take examples exclusively
from what Mr.. Frear regards as the
enemy's country, it is perhaps permits
sible to take one from the west and
among his confreres in Washington.
In the career of Senator Arthur Cap
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
A Congressional Critic

The Hon. James A. Frear, a Con-
gresham from Wisconsin, in speech
in the House of Representatives. has
commented at length upon our discus
sion of last month. His statements
serve very we'll to illustrate the loose
and misleading manner with which
this subject is frequently treated. 1t
says:
The bank justifes 775,OOO,O00 net profit
in 10 years on the capitalization Of Standard
Oil Of New Jersey, or ~ per cent. an
nual net profit on $lOOO00,OOO, etc
This refers to the statement, pub
licly made by MIR. 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 1916 per cent. upon
the company's investment during the
period, and that it had been the policy
OF the company for many years to re-
invest in 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 $100,000000.
MIR. 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 of New
Jersey at the close of 1911 were $780,
100000 odd.
Earning Power in the Physical
Properties
Mr.. Bedford's statement for 10
years covered the time since the de-
,.oo ~ ba C,-o+s.,,a Cf The
Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1923-01-18
Capital Accommodations Increase
the Revenue

Any scheme that would force corpo-
rations to distribute earnings in or
der that stockholders might become
liable for the personal income surtaXes
would not only hamper and restrict
the development OF industry, but in
the long run would reduce rather than
increase the tax revenues. The earn
The Birmingham age-herald., 1923-11-12
BIC SPECIAL PRIZE OFFER IN HELP YOURSELF CLUB SEEMS
 TO HAVE HIT THE RIGHT SPOT

That new $1,2s5 Cleveland Six
 Specai Prize Offer" in The Age Herald's $23,S00 Help-Yourself club, announced several days ago, has hit the right spot. New and old candi- dates are beginning to realize that, Dy oecmoing active during the next two weeks, they have the opportu nifty of making big money by winning this special prize.
 This 1,2S5 Cleveland Six is offered extra, in addition to the other 14 automobiles and 20 cash awards. A candidate can win this $1,2S5 Cleve- land Six and also win one of the other 34 regular awards at the close of the campaign December Is. This Special Merit Prize will be awarded to the candidate who turns in the greatest amount of cash in subscrip- tfons during the period starting No- vember and ending November 24. This Special Merit Prize offer Is open to all candidates, new and old alike. All start on an equal basis for winning this $1,285 Cleveland Six, vember to November 24 counts in this Special Merit Prize offer.
 Of course all subscriptions turned in during the Special Merit Prize offer will receive votes which will count towards the winning of the other IA automobiles and 20 cash awards at the close of the campaign. 75,OOO Extra Votes.
 The 75,000 extra vote offer, allow ing 75,000 extra votes for $25 in sub scriptions turned in, ends next Sat urday night at 9 o'clock. During this extra vote offer 75,000 extra votes will be given for S25 worth of subscriptions turned In and for every dollar above the $25 worth 5000 ex- tra votes will be given. All subscrip- tions turned in during this extra vote offer count towards the S1.2S5 Cleveland Six Special Merit offer, which closes November A. Candi- dates should take the greatest ad- vantage of this extra vote offer because 1t Is the best extra vote of- fer to be made during the remainder of the campaign. If you are not en- tered in the campaign-get in NOW and take advantage of this big offer. You have as good an opportunity as the other fellow of winning If you but get busy. Do 1t today.
 Free 10 Vote Coupons.
 The free 10 vote coupons were printed in The Age-Herald for the last time Saturday. From now on the only way to secure votes Is by getting subscriptions to The Age Herald. All free 10 vote coupons must be sent in by November 12 in order to be credited to candidates Carrier Boy Rates.
 The club members in outside towns will materially favor The Age Herald by endeavoring to have the subscribers continue to take the
The Birmingham age-herald., 1923-11-12
BIRTH RATE DECLINING
Birth Rate Is Showing Steady De-
 cIina Iruar Since 1Q1R

CHICAGO, Nov. 11.-(By Associated Press. )-With a steadily declining birth rate, Chicago Is "short" 6,647 babies since 1916. according to sta tistics issued by the Infant Welfare society of Chicago.
 In 1916, when the population of the city was only 2.517,172, 56,417 babies were born. In 1922, when the popu- lation figure was placed at 2,S30,000, only 56,724 babies were born. The rate during those years had fallen from PA a thousand to 20.02. Using these figures as a basis. Orlo F. King, Extension Secretary of the In fant Welfare society declared that Chicago is short 6.647 babies.
 'The falling of the birth rate" said MT. King, Ifs driving home home to the public spirited citizens of Chicago the increasing necessity of guarding the human life that Is given us each year even more zealous- ly than in the past. It Is all the more important that we exert every possible means to preserve the in fant lives in this community when we believe. and with good reason. that the birth rate will continue to drop as 1t has since 1S9S."
 Statistics of the society show that last year, when it cared for approxi- mately 12,000 babies, an actual saw ing of 4S0 lives was credited to the society because the death rate among babies under ? years of age cared for at these stations was only IA a thousand, while throughout the city generally 1t was four times as great.