The labor world. [volume], December 30, 1922, Image 1

About The labor world. [volume] (Duluth, Minn.) 1896-current

Image provided by: Minnesota Historical Society; Saint Paul, MN

                
Reports on Hearings Held in 1921 Union Representatives
Say State Bureau Was Influenced by
One year and a half after hearing evidence in the strike of St.
Paul and Minneapolis Typographical unions for the 44-hour work
week the state industrial commission of Minnesota has this week
filed its report in which it declares that the unions were justified
in expecting *he shorter work- week on account of the agreement
made by the national organizations of employing printers and the
printing trades unions, which was repudiated by Minnesota em­
ploying printers.
Urges Industrial Court.
The state commission regrets 'that
it has not the power or authority to
enforce its awards and suggests that
"stipulations and agreements result
ing from collective bargainings
-.should be construed and enforced
by some impartial agency, when­
ever a dispute arises relating there­
to."
James Fullerton, business agent of
Local No. 20 of the Pressmen's union
of Minneapolis, declared that the
commission had purposely held up
the report until after the election in
the interest of the Republican ad­
ministration. He said that the re­
lease of the report on the eve of the
meeting of the legislature, with a
recommendation for an "impartial
agency" to enforce decisions was for
the purpose of creating "propagan­
da" for the enactment of a law in
Minnesota similar to the Kansas in­
dustrial court law.
The report of the commission con­
sumes 10 typewritten pages, in which
the events leading up to the strike
lire reviewed. Considerable space is
devoted to answering criticism di­
rected at the commission for its fail­
ure to make formal findings of the
facta disclosed at the hearings with
its conclusions and recommenda­
tions.
"In. view of the fact hat there is
no power vested in the commission
to enforce any judgment or conclu*
sion with reference to the relative
rights of the parties, in a controversy
of this character," the report de­
clares, "it will seldom, if ever, serve
any useful purpose for the commis­
sion to aggravate the local condi­
tions resulting from a national move
men! Involving employers and em­
ployes in. tiy particular Industry."
The first move for a hearing, ac­
cording to the report, was wide by
the commission on July 11, 1921,
when, representatives of nil parties
in the controversy were invited to
a,n informal conference. The meeting
was. continued until July 13 because
some of those present did riot feel
that they were authorized to act for
the various interests involved. At
the second meeting persons repre­
senting the employerg stated they
were satisfied with the situation and
did not desire to enter into any ne
gotiations with .the organization#
representing the employes on any
basis whatever.
Upon petition of the Minneapolis
Typographical union No. 42, Min­
neapolis Pressmen's union -No. 20(
Minneapolis Press Assistants* union
No. 6, Twin City Book Binders'
union No. 12, and similar organiza­
tions in St. Paul, the commission
adopted a resolution and seryed it
upon all of the employing printers
of thejj Twin Cities calling for a pub­
lic "hearing -to be hel| in St. Paul
starting Aug. 1,-1921.
The St. Paul Typothetae appeared
at this hearing and .-filed a petition
restating the position of the employ­
ers that there was at that time noth­
ing to arbitrate and objecting to a
public hearing on the grounds that
the striking printers had not com­
piled with the law by seeking media­
tion of the industrial commission
before the calling of the strike on
June 1. 1921. The Minneapolis Ty­
pothetae representative appeared but
afterwards withdrew from partici-
Jon in the'hearing.
Origin of .Wage Dispute.
"The outstanding facts disclosed
the investigation," the report de­
clares, "are that for more than 15
years prior to 1920 there had been
a system 6f collective bargaining be­
tween the employing printers of the
Twin Cities and the various print­
ing crafts, and during that time har­
monious relations existed, but on
account of the rapidly advancing
cost of living, as well as the general
increase in wage scales in all activi­
ties existing in the beginning of
1920, the wage scale that had been.
agreed upon in the contracts entered
Into in 1919 became inadequate, and
certain actions were taken during
the winter cf 1919 and 1920 on the
pjyrt of the employes to bring about
modification of the wage sched­
ules embodied In the agreements
commencing June 1# 1919, for" a two
year period.
VWhlle these ..negotiations were
pending a large portion of tho men
-whor sesemed to be dissatisfied on
account of what they regarded as
undue delay on-the part of tlie. wn-,
ployer, left their employment as »n
diyiduals on April 20, 1920. It'does,
npt ..appear that this was the result
Of any, formal act of the union or
he'direction of th|£ officers, but the
ftteti was the same as a formally
authorised strike. On account of the
economic conditions existing at- that"
time, the employers were obliged
tograntan increase in the ejflSittig
wage schedule.
,r "The -cjnpioyes contend tl\at this
5 if c» in pa 2
STANDARD GETS
FINAL LEASE IN
WYOMING FIELD
Secreary Fall Signs Contract
Granting Concessions.
By International Iiabor News Servicc.
Washington, D. C., Dec. 28.—Vir­
tual control of the Wyoming .oil
field by the Standard Oil group was
acquired on Dec. 20 through a con­
tract which Secretary Fall of the
interior department awarded to the
Sinclair Crude Oil Purchasing com­
pany, a five-year dea} covering: the
purchase of all royalty oil accruing
to ^he government from the Salt
Creek field.
This contract is an inevitable se­
quence to the Teapot Dome deal
which, it is charged, Secretary Fall
and Secretary Denby of. the navy
department, negotiated in secret with
the Sinclair interests and which is
now under investigation by congress.
The Standard Oil group, already
having the contract for taking the
oil of the Wyoming field, is in a
favored position with reference to
taking over that part of tho oil
which accrues to the government as
royalty.
Th# procedure in the. latter .con­
tractus in direct contrast t? th$ Tea-*'
pot Jjojne negotiations.,/jn'the Tea-
nies had no opportunity to bid and
the public was not informed that
the deal had been made. The gov­
ernment even denied the existence
of a contract until forced by con­
gressional pressure to admit it. In
the last deal a carefully prepared
statement had been issued. by the
secretary showing that thirteen firms
competed for the contract for the
purchase of royalty oil.
It is expected that, congress rti!l
include this contract in its investi­
gations of the oil industry, which is
now pending in the senate.
G.N.
LISTJUMPS IIP
Killed and Injured For October
Higher Than Last Year.
St. Paul, Dec. 28.-rrThe number
of employes killed or injured on
the Great Northern railway com­
pany's lines during the month of
October, 1922, *was 96 ?er cent
greater than October, 1921, accord­
ing to a report of C. L. LaFountaine,
general safety supervisor of the
Great Northern, made public today.
The same report indicates thfit,
the number of employes' filled ."or
injured in October of the present
year was 28 per cent greater than
the same month in 1920, and 84 per
cent greater than that of October,
1919. For the 10 months ending
Oct. 31, the report shows that
number of employes killed or
jured was 1,727, as against 1,270\
for the same period last year. The
report also shows that 321 persons,
including employes, were killed or
injured during the month of Octo­
ber, 1922, as against 167 during
October, 1921 248 during October,
1920, and 185 during October, 1910.
the
in-
Laid to Equipment.
R. A. Henning, manager of the
shopmens' strike for. the northwest,
in commenting upon this report der
clares .that the increase.in .thepunx
ber of persons killed and injured is
due to the unrepaired and poorly
repaired equipment, as a result of
the company's refusal to settle t-he
strike.
"Our investigation shows that
practically every wreck since July
1 has been the result of either •un­
repaired or poorly repaired equip­
ment," Mr. Henning said. "We have
contended' right aiding that the so
called replacement men, employed
by the road which have refused to
settle, are' incompetent. Ap the re­
sult of their poor work, the wrecks
have occujrr.-d."
PLUMBING LAW ILLEGAL.
County Judge Dunn of Littleton,
Col., has declared illegal the state
law. which delegates7 to the state
boaai of plumbing Inspectors the
powft to .license and withhold' IK
censes from plumber®.'*- i
ri-
Holds Only Well Paid Workers
are Good Buyers.
Washington, D. C., Dec. 28.—Jul­
ius H. Barnes of Dulyth, president
of the. Chamber of Commerce jot the
United States, stands'for 'fc. program
9f higher wage^, according to a
speech m9.de here last week, intelli­
gent merchandisers throughout the
country 'have long-admitted labor's
contention that higher wages mean
more buying of commodities, neces­
sitating increased, and more eftlclent
production, which in turn makes pos­
sible the payment of still higher
wages.- Mr. Barnes said he was "sub­
mitting-his statement "for the con*
sider'ation of those who. Relieve that
wages and salaries must return to
the standards of 1918." jie said?
"This ability to produce more and
more things with fewe,r and fewer
employes and. therefore, lower cos^s,
can not help but by the very pres*
sure of this ever-:increasing industrial
production press into more and more
homes. The very* industrial produc
tion itself and its increase assures us
of a'wide distribution of the buying
power of our people. That produc
tion can no^ be secured or main
talned by the expenditures of the
concentration of wealth in the hands
of a few. It can only c.om'e from a
very widely disseminated earning and
spending power of 'our people gen­
erally.
"As the ability of each worker to
produce more by the-fiid ofmechan
ical processes increases' the" earning
capacity and the earning value of
that worker Increases. That is a very
serious statement and I submit it
for the consideration of those who
believe that wages and salaries must
return to the "Standards of 1913.rTh®
earning power of a man today, bet­
ter equipped, better educated, more
productive, because of mechanical
aids, does not have to return to the
standards of 1913 to establish a nor­
mal balance, of earning and produc­
tive power. That thi$ is not the ten­
dency is shown by every measure
which you can apply. Between 191'4
and- 1920 the scaled of thlf
country* %jn six
hourly W$pes"!pn,£ -'hijpj$^v *1^
average family in^oilisi ^n.
States in 191® Was Il,470. 1n l9l9,
jfr^TOO. These are not inflation. in­
stances.hey are, the evidences, ex
aggerated, if you please,: and sub­
ject- to some setback,' bytthe evi­
dences of a distinct -.and-'iound Eco­
nomic tendency in buying."
formed
era Timber Bosses Slumbers.
The timber bosses' company
"union" is traveling, the inevitable
road to oblivion. This "union" is
known as the. loyal, legion of loggers
and lumbermen* At the meeting of
its' board, of directors in Portland,
Oj*M the president reported that "the
greatest difficulty" the past six
months was the number of employ­
ers who have deserted the "uiiion,"
they "have felt no immediate
need of protection against industrial
radicalism."
Officers of the bona fide union of
timber workers remind workers of
tlie claim by trade unionists, that the
employers would throw over the
loyal legion when it served their pur*,
pose to prevent organization.
"These' employers are hot con­
cerned' with the I. W.' W. They are
assured from another source that
the I. W. W. will be 'taken care. of.'
^These employers have used the loyal
legion as a tool. It is now worn out
and. they discard it."
The issuance of stools dividends Is
the best proG^ that the. fruits of in­
dustry are Deling divided unequally,
and that wage workers' claims, aie
justified.
Stock' dividends is another name
for• oapkalizing profits/ v'-v
Th^ f^eason for stoclf. dividends is
to avOid the income tat a fear that
congress will tax undivided profits,
and'a* desire to extend profits over
a larger issuance of itock' *o tlie
p%b#l,attetibh will not be- attract
ed JHBtxcessive profits.
__ Of these profits they
ai*^turned into "capital account"
(pnt back'into the business) and ad­
ditional common* stock' td that
amount: issued and divided among
the stockholdera This stock Is called
"stodk di^idepd8,,k although| it is an
extra issue, of "the .ordinary variety
of common atock.. jz'i
6tock, dividends., indicate ia* prof^l
that is above and beyond a ,f
profit on, an investment, Work
sti^iggle for a living Wage, but -thfe
dolltCr is always guaruiteed a lixdlf
interest rate. This: interest rate it
charge on industry, as is salaries,
Discriminate Against
-'•'By taternatiohal Lrf^\New» 'Service.
Washington, D. C., Dec.. 28.*r--The constitutionality of the
ship subsidy bill be&rethe U. 5.
iL 1
floor of the senate'shoTtly in a
of the elaborate preparations ma
measure to put'it over.
The basis foi* the attack is ^he fol­
lowing. provision of the -U. S. Con­
stitution:
"No preference shall be glfcen by
any regulation of commerce or rev­
enue to the-ports of one state over
those of another."
One of the striking features, of the
ship subsidy bill is the great num­
ber of provisions for preference to
ports of one state over those* of An­
other by regulations of ^commerce
or revenue.-
A greater evil, considering the
spirit of the Constitution,' is the fact
that congress by this bill would dele­
gate to' the U. S. shipping board the
power to .make almost any .discrim­
inations it chose in favor of one port
against another.
The bill,1 as i\lUstrated by the fol­
lowing clause, admits that discrim­
inations will result and purposes to
remedy the ^vil by empowering tho
Ui S. shipping board to establish new
preferences:
."Whenever the board -and the com­
mission are. both of opinion, and
certify, that puttinjr into esffept. or
keeping in effect the provisions of
this section will result inunjusf £is
crimination between ports of the
United States, on commerce accus­
tomed to move through such potts,
or materially changing the chan­
nels of. transportation within tlie
United States, or'in unduly congest­
ing one or more of the'ports#of the
United States, the commission shall
by order, suspend the operation of
said provisions until such/time as
it and the board reach a, Contrary
conclusion in the premises, where-
PeiftsytYMi^ KHfw Ca*e-lRlaw
to Be ConfUcatwif.
The United States' Supreme court
has set aside the Pennsylvania law
which prohibited the mining of an
thraclte coal in .a manner tliat would
endanger the Ilvei cr injure -the
property, of .. persons---occupyiriS'
houses situated on the surface soil,
justice Brandels -dissented.
The court held, that Jjjp law. de­
prived coal owners of valuable prop­
erty rights without compensation.
Under the declsiori, coal owners can
mine coal without any regard for
cave-ins that endanger lives aiid
property, unless the' coal that is
necessary, for props is. paid for...
In his/ dissenting opinion, Justice
Brandeis 'said:
"If by mining anthracite coal the
o^ner would necessarily unloosj poir
sonous gases', I suppose no one Swould
doubt the power of the state to
pireventv the mining without? buying
his coal field^ And' why ^imay rioti
the state, likewise, witho^ paying
compensation, prohibit :troi&
digging so- deep or excavating 89
near the siirface as to Cxpose the
comlnunity to like dangers? In the
latter case, as in the fornier, carry­
in us in
lic nuisance.'' .- i"
the cost'of raw material, taxes a.nd
wages ."
After these and other charges are
paid, profit is considered. When this
profit is inordinate, the stocks divi­
dend- is used to conceal excessive in­
come.
The.. stock. dividend is prOof that
the people are being gouged. lt also
indicates, the enormous values others
have created and which are no^cen
tered jn the thahds of those wm r«
fuse workers a living wage and tlie
ri'ght^to or^anise.^. :j .•
£to^ dlvideiids are an anikwer to
ttte- continuous whi^e by the defen
Setfjftt'' reactioft ijtd privilege that
alplreid :high wages/ arf drag. ion
industry. TheVstock dividend is evi
dence that andspjrofite^r
ire making ,1}^. records ^Icnd that
va«e earners %re not beinjt justly
Compensated. Z.
r%
i*he stock ditiderid doSS.^Ot tell
full .stoi^lp^corpora^^tofita
fcind these princely, salaries
numtoit^ ^NM|l8and holdlsn^
dan ridt%* tthiAngl^d or under
stodd save by_one acqtiaint^l with
the intricacies^Of a
The" trickery of ons in
on Floor of Senate Will
of Various States.
i6natef
will be attacked on the
Jer
that will make shortshrif
by the proponents of the
the standpoin^bf the commerce
because tlie U. S. shipping
is given power to pay subsidy
PS sailing a certain rout# frOm
port and not to ships sailing
same route from another .j^qri.
also assert that the i*ieasur$
is .unconstitutional from tffe- stand­
point of the revenue clause for. two
reasons firsft, because of the income
taxiexemption and second, because
of ,10 per cent reduction of duties
on Jbargoes allowed to vessels oper
atliig from -ports favored by the U.
S. feliipping board.
No prudent business man would
risk making a subsidy contract with
the£u. S. shipping board knowing
that & suit to annul the subsidy was
inevitable.
"»hat is. the .Constitution among
frieMS?" lias long, been a maxim of
b% ||usineSs. Somebody has made
the.'^iistake of taking that literally
Mar acts passed by congress would"
prbl |bly be declared^ unconstitutional
if ^erred to the U. S. Supreme
coui jf.' Nobody .bothers to raise the.'
tan* :in. many instances. For instance,
nob ay has yet had nerve to ques­
tion the. constitutionality of the
Mai White Slave law although law
yen twill admit readier that a good
caeflpould be -built up attacking it.
.Notf'so ^vrtth the ':Ship Subsidy bill.
The, question will arise That-Is not
the point, however- It will bo inter­
esting to know how many senators
will Ignore the Constitution in their
desicfe to sprve proponents of tho
Ship ^ttbsldy bill.
tlf^aiil JBbils. is a pertinent ques
ti^n-^nXiiQi^ers -of the hbuse and sen
upon such suspension .shall, by, or- have walt&l until thjis late day
by^the. commis^r v^thotit raising such. an ob^ous
dfr» be terinlnated
sipn uppn to days' notice as herein­
before provided for the^'termination
ot their' to tii^3unopnttttfr
•tiinai
qiijestion about the constitdtlonaUty
of the meastirp, how ^kn^ ijf jthem
Understand ev^ a ltttlfc'qf ithje '^raml
ficatio^s^of^ thfr thousand and oite
^jher ^riojis provisions pf the .UH|?'
JKansas Governor Backs Down
and Court OBSIS Case*
Judge JIarris'of the district court
at Emporia, Kan.,-has. dismissed the
state's case against William Allen
White, wh"o was charged by Gover­
nor AUen with violating £he "can't
strike? laW when he posted a sign
professing "49 per cent sympathy"
with striking railroad shop men.
"This Case was- commenced reck­
lessly or maliciously, without inves­
tigation .of the facts to ascertain
whether the prosecution was justi­
fied," aaid the, ^burt
William A)ien White jested his
sign a short, time after the shop
mer^s strike started The governor
claimed this was sympathizing with
an unlawful act, and was a viola­
tion of the law.- The governor se­
cured enough publicity over the case
for half a dozen lectures and then
paid no more attention to it. The
accused insisted' he~ was denied' the
right of free expression of opinion.
On three occasions^ he' appeared for
a
IS THIS A LIVING WAGE?
The bureau Of census reports that
the average wage last year tor. 7,816
workers in the leather gloves and
mittens industry was $14.80 a week.
STOCK DIVIDENDS IS SIFFICIENT OF LOW W*0E$^ AND EXCESSIVE NOFITl
concealing profits is. indicated by. the
recent account of how a well-known
5-and-10-cent store corporation
"lost" profits:aggregating $20,000,000
This coincern was carrying on its
'good wll^" as an asset, which
it vilued at $50,00^,000. Aflde from
somp leaseholds, this asset was in
tanflble and pure guesswork. The
rj|ofation- had profits: of $20,000,r
00 spiled uft'and .to dispose of these
proms it voted to reduce the $50,-'
000,000 "good will" asset to $00,
000,000.
1*| mother words,-' th'e ^corporation
took $20,000,000 from on^. pocket
and-: piit i£ in another
:pocet.
By this
jugAery ^$20,000,000 in profits were
wipe|i outi. with/the money remain­
ing in "the -hknds jof the corporation.
TAis tricky bcokkee|ing 4s .useful
If the government -^ould call fOr .'a
recced ^of profits that have been
"sweated". from Immature girls and
iittl^ eKUd^n.
SIpTck/ dividends- and other forms
of epncealed r.prpflts& are found in
evb^r lndifttrial' and commere^tl
group, ^veh railroads, makers of
the |irt of -telitng hard-luck stories,
anneunce stock dividend^ while carti
State Hgencles Assessed to
There are well founded rumors in
Su Paul and Minneapolis, according
to the,-Minnesota Star,, that the
.agencies for the big stock liability
insurance companies doing- business
in'Minnesota- have just levied a ohe
per cent assessment1 on state pre­
miums' artd a 2 per cent assess­
ment on all agencies within the state
for the purposed of raising a, fund to
fight any proposed legislation in the
'form' of a state insurance law.
The assessment, it is declared, will
raise'between $100,000 and $125,000
which: is" to be used in a campaign
of advertising, principally iir the
country papers,- to show the people
that a state Insurance- law would be
against- the interests of the working
people.
It is well known thaf'the. insur­
ance interests have succeeded in kill­
ing. every attempt that .' has been
made in.Minnesota to pass a so
called state insurance law.
The Minnesota State Federation of
Labor many years, ago declared for
the state fund plan for administer­
ing the.-work^ngmedi's compensation
act. The iawVcr^atifig. the. present
state'industrial commission was en-,
acted, in the hope thi&t it would put
a quietui^^on state Insurance. It has
not succeeded.
The state fund.pla$.has succeeded
admirably: ia Washlhgtoil~ stnd- OhiO.
In the tM^erestate' many inillions of
dqllars bitive.been saved to employ­
ers and Ahe injured workers were
actually eompensated, Whereas in
Minnesota the compensation is but
a pittance.
-The employers' liability companies
Jiave-tfrig|itened-.ihe other .insurance
people into believing that the state,
fund'systent of administering work
inginen's compensation is but an en*
tering)fr0dge' for .-state socialism eunid
unless the jplanr.Ws^"Rilled nojv' it
would^not be long before the stat'i
wouid be dpihg a general insurance
'business.
Of cours^^here is: nothing tb isucR
argumen t. There are reasons Why
c9mpa.nsation.law. which
in? .'.ihy jthifc'
laborife '^Itii'.iesire jfori
pretty ^iD^^ted^^th^fco^r'
ing: iitessibn jof: the legislature.- S
Real Trade UnHHiisii)
Fine Victory on Coast.
The International .Union of Tim­
ber Workers has won its eight-hour
fight at Weed, Cal„ and at Klamath
Falls,- Or. These movements have
been on during the entire year. The
Klamath Fails timber bosses were
ungracious enough-to publicly state
that they "voluntarily restored- the
eight-hour, day,".- despite the fact
that they were'soundly licked in an
attempt to establish the long work
day.'
"The winning of this strike means
or to or
northwest thsui immediate gains to
those directly involved." union .offi­
cials declare.
"The lumber lords cannot -success-,
fully defeat workers who are prop­
erly organized. It also means that
workers have again been- impressed
with the fact that. complete and
proper organisation is the only safe­
guard for the present their only
hope fer: the. future.",
ytivid^nds ih excess^df the: regulation
,5 per cent,^, are quite, common/
^'.Orily reCehtiy^on the' floor of: the
senate Mr.. Capper, Of Kansas charg­
ed the railroads w|th concealing
trpfit^ yet' th^ public is continually
warned that the roads "are facing
bankruptcy, while the railroad labot
board rejects the. shop men's living
wig« demand. 2 fj&J :./'v
The textile industry which has
att^mitedj to reduce wages and Is
respohsiblO for a loiig' strtke.^ tke
past: summer, is now declaring Stock
dlvid*rids.: Issues of. 50,' 100, f^nd 200
p4°r cent, to oppress thelr employes
are common.
The jsiwificance ofv stdck divi­
dends ahd tKer"profit' concealments
is not. discussed by our "molders of
public OplniOh.'* Vff .'j
Those who have tho ^ublicity ma­
chinery to enllgbteB the peoplej on
this" subject are,' In' tha stock'^vl'
i. ^hey. too, are
their
dead
It ai^sl^lr'puroose to keep alive
the fiction of%h" wagds &nd tnef
pauperisation o^f ind^stc^ a'hd cotti:
^*e*«e«
Will Stmt ianltt Cwer Opiw slllon Wltli Jii Biz Propagan
da Attempt to Cblw,ot orm Pabtk) to Sleep.
By CHESTER M. WRIGHT
The redrafted bill 'is" now in the
'hands of Giorge F. Russell, superirt.
tendent df public utilities, who will
•giyii a writteA report on* Its nifeHtS
ifrprn jthe' point -of view of hls. de
jpartment. It provides for a 5-c«nt
caSfe^'fareVor for1 the sale of four
ftokens for 26 cents, transfers being
allowed, only on^ token fares or from
a few specified "feeder^ lines.
The National City Ban^of New York and the New Yorl: Trust,
company are among banking concerns which publish periodical
reviews of important economic financial and political events It
appear* to be the intention to give these reviews the appearance
of impartiality andtocreatethe imprMsion that they speak as die,"
final word of authority. Presumably they are distributed among
stockholders and depositors but they find a growing circulation
butinde of these ranks and they may be had by* anyone who will
inquire for them.
Under the three^rides-for-a-quar
has, beebme more, ^neowsary than
feasible, .-Seattle's city counclL is de
termitied:' to slower appreciably the
8 i-3 cents cost of a trolley ride and
let the -question: of practicability, be
settled as best it may.
under* the three-ride»-for-a-suar
tef system, Seattle's municipal rail­
way: has been just about "breaking
eyen" in paying off the $15,000,000
purchase price and interest thereon.
Presumably the increase in patronage
under a- lower' faite would enable the
lines to continue to "break even/' Or
perhaps, some other source qf rev-?
enUe can be found for paying Off
obligations.. These -. are side isuestions.
is that Seattle's
street .railway hiust serve a (greater,
mitnber of Seattle persons ahd this*
cianhot be"/done without a cut rin
.. Jl. jV'v. ••:K
"®^-^tS^d5of cutting ic^^ie^q^
for a cash «ductldrt. Mfr Carroll is
which
Several met^^hr^ arevrbelng-diflT
cihnsed ribfflci^r.:nh^«n!«lft imi^'
tant Of^ which
gerald 5-cent fare bill, wiich th^
corporation counsel's office has just
redrafted for tKe, council's official
consideration some time 'this we^jc.
Under t»e bill sclhobl .children's
ratei are" to remain at -3 cents for'
icasli fare, two child^eii ifor 5 cents,
or tickets .good 'for" 10 rides for 25
cents, transfers being allowed either
on cash or ticket fare for school
children.'. ..
Wiscoisin ConiressmanMik-
Congressman Fretar of Wiscon­
sin has. renewed his. attack on Sec­
retary .of thf ^Treasury Mellbn for
permitting great Vwealth to escape
a a
Under the. law the secretary-*caii
levy a penalty.- of 2 5 per cent where
hie. .believes
!cbrp'bration's
.hold 'sur-
phises to evade payment *f -income
ta^es^by individuals. .These .corpqr-,
ations are now dividing their sur
plaees throuth stbck dividends. Con­
gressman Frear says upwardsr of
$2,000,0(^0,000 in surpluses^ arev es­
caping penalties and individual sur­
taxes because Cecretary Mellon re­
fuses to enforce the law.
On 'the floor of the house Con
gressman Frear^submitted a list of
questions to the treuury official
"Is it true," he s^ed, "that due to
legal evasior.s possible under \exlst7
ing law, disclosed by the Secret=r«i
cords of your bfflc?, tlj«t. Mr.-^ORlj
efeller, Mr. -Kprgan, Mr. Mellon and
Mothers of great wealth-,are not VtT
iing-one-flfth -of-the. income tax they
are poputerly supposed to P*^- vn*
der the law based' on. their wealth,:
^lue to investments *n tax-free se­
curities, stock divldends, tru^
stock and bond exebanges andf other
forms Jfo tax avoidance? I gather
la so from your Official re)wC
•These are matters ,that congress
permitted to remain secret for
il YeasonrKpparently, send I am
hq^jtiif your answers will be speclfic,
sorihat the. nidesstty Zpr- full putk
llcity can be detfermined by
Publishes Review.
yThe
Clevelandv Trust company also
publishes such a review and the re
view 'published bythat company is
probably one' of the best in the field.
What a. great many -persons un»'
doubtedly do not realize is that these
reviews in time of need serve as pro-v
paganda agencies for high "finance
and that their dignity and-seeming/
authority makes them the more ef
fectiyc when a real, need arises. Tlie
discriminating" reader, will, find much
of interest and value in the. .pages:
of these peflodicals, but thos«» who
dO. not discriminate are likeS^ to be
broughit to false conclusions on most
important'matters.
.' The publication issued by the Na-_
tional Cltybaj^k is Issued monthly'
and averages about sixteen pages.
The National City bank represents
speculative finance just as Morcrap &
company represents induutrlal
nance. The National City bank, bin*
ter than any other institution, typi­
fies Wall Street.
.Nothing, has so disturbed the Na­
tional City bank as the recent elec­
tion in which progressives hostile .to'
railroad profiteering and to plunder
ing in general were so uniformly sue
cessful if we aTe. to-believe the De­
cember issue1 .of jthe publication if-'
sued by that^bank. ,j
Finance Is Worried.
It wlll be interesting to know why
high finance lboks upon the pro
^tessive Victory as. such a menace.
Theexplattation is* in the^following
fliiotation/: fironithe Nktion^i Ciiy
ban^: pubUcationVr
"Notwi^hSttodihg the evidence that
the ot ^j^gricuittiral pice«:
'ha».vJ»«n difeb'tly related to, tha
posed in t|iu name relief for
fttfolttl^. Whi'ch
'^hecfc the Improvement
a|^lcui|^s*i
cbpdi^ns
which is
d^(wiyi-and thrQw the ciuntry back
'^?S«?sfiite of dlsorduUsl^ton.. W&
$nd'. conxiiisiQn. I
,^i|«jsfbck market,. whlch:4s-qul^fc
to sense developments unfavorablela
orderlyHusiness progress, has sko#ii
declded weakness since the election,
railroad shares leading', in. the de-:
cline. Although tlie country evident­
ly is suffering from the inadequacy
bf railroad facilities, due to the fact
thit railrpad investments no longer
commihd'the confidence of the pub­
lic,- oni Of the objects .of the revived
Sulfation fe the repeal of the trans
portatipn act defining what in the
opinion of the legis!ative authority,
is a fair, return upqn railroad pron
erty ,-v ','#/•
Nothing more would bie required^
to rnii^# flier railroad situation -hop^-k
less. Railroad -service cannot be hai 1"
without the facilities, and these Can
not be had unless the inventing pub-:
He is- assured of a return correspond- S
ing to what can. b'e had )h other fields
bf investment. View -commonly
held at the sources of this -agitatlon"
seems tc that the railroads *re.
bwned by a few .rich bankers w-ho^
are -able to Rjit their hands in their.fe
pockets^ for all the money .needed to
provide the necessary expansion .qfv.
service.".'.'"-.*
"The' railroads, however*' are-nbt:
owned by barikers -. the ownership is ^^5
widely: distributed and will respond
.with additional- capital only ~as it be
lieves the -investment to" be The
strongest companies are able to. bor­
row, by- giving mortgages or stock,
but this is just li*e putting a second
mortgage .on a farm. This, process
cannot" be carrled^Indefjnitfely^ be
cause the margin "of safety, grows
smaller.
Proper financing of the. railroads
requifes that' approximately one-half
of the -capital-shall be ^presented
by»capital stock in othi^ir- weirds,
that proportion should be proprie-
tary. capital,- in order to. obtain fa-1~,
vbrable terms upon: borrowed money.f
Very -little new capital has been
raised fpr railroads by that means
recently.^ .Expenditures for rolling*.
Stock ^re financed mainly by,meansv
Of equipment trusts,'the new equIpi^-.^ ,s£
ment being mortgaged for about 75
per cent of its cost."
It, whl be noted that the stocky
market is set up as an indicator^
.whlcli quickly detects un$pund^ d«-4jT
:pai^tur^8.^!^ltpit Is really, the case Is,
that the stock market quickly de* .^g
tects^ develppiiients unfavorable. to
speculative interests. The stock mar
.k'^t^lSi'tto. indicator at. all?as to* -thf
rMl, soiindnMs.. ot sconomic .• proj-.
pOSalS. iv-v.
.FJorgcta Gqod .Management.
The liTattonal Gity bank assumes^
that we have an -*1na«eqn«cy ofr i|
railroad ftusilities" because •iraflWakAk^t
investments no Mnigirr command tbepu
confidenee'.of'the'^ublic." Upon lhIS^|
ther bank bases a.plea for retaining^.
jthe EschCuipidhM law. It Is all vc"
clever, but-' It- is also all vfcry
Mf?!