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Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, March 09, 1920, Image 1

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VOL. XXII. NO. 47.
THOMAS DEMOCRATS
. ASK FAIR PLW IN
GEORGIA PRIMARY
Issue Is Between Committee
and Voters t Not Commit-
• tee and Hoover, Asserts
‘, Representative Mclntyre
BY BOGERS WINTER
(Staff Correspondent of The Journal)
‘ THOMASVILLE, Ga., March B.
One of the most interesting argu
' ments yet advanced concerning the
action of the subcommittee of the
Democratic state executive commit
tee in shutting Herbert Hoover out
of the preferential primary is that
of W. Irwin Mclntyre, member of
• the Georgia house of representatives
from Thomas county, and one of the
most prominent lawyers of southeast
Georgia who discussed presidential
politics at considerable length with
k ’ The Journal correspondent and ex
pressed himself unreservedly in op
position to the subcommittee’s ac
tion.
"It is conceivable,” said he, “that
the public may call a man to the pub
lic service, I admit such a thing does
not occur often, but when it does
occur. It is very encouraging. Ap- ,
parently such a thing is about to oc- I
cur in the case of Herbert Hoover
and will occur if the public is allow
ed to express its preference. And
when this rare, but very encourag
ing, political phenomenon is about
to take place, it certainly is unfor
tunate to have it thwarted by the ;
subcommittee of our Democratic
state executive committee.
The Beal Issue
“The subcommittee seems unable !
to conceive that such a thing is ;
possible as a public office seeking j
a man. Vt seems to act upon the j
theory that Herbert Hoover is seek- ■
’ ing the votes of the Democrats of
Georgia, when in point of fact he I
specifically disclaims that he is a
candidate. Tfye subcommittee seems
to make the issue between itself
and Hoover, when, as I see it, there
is no issue between them at all, but :
a very serious issue between the
subcommittee and the Democrats of
Georgia.
"It cannot be questioned that a
very considerable number of Georgia
Democrats wish the opportunity of
voting on Mr. Hoover in the prefer
ential primary. That is to say, they |
ttf-e in the attitude of calling to the
service of the party and the nation
a man whom they consider capable
of rendering service. They are pre
vented from expressing themselves,
although the primary is ostensibly to
?te held for the specific purpose of a
- ’ free expression by those who con
stitute the pa ly in Georgia. Hence,
1 say the issue is not between the i
ubcointgjftee aai_JHerbert Hoover, r
” r ‘*li’ut between the subcommittee and*
?' the Democrats of Georgia.
“Whether I myself will vote for
Mr. Hoover if his name goes on the
• ballot has nothing to do with my
conception of the issue raised by the
subcommittee's action. As a matter i
of fact, I have not made up my mind 1
whether I will vote for Mr. Hoover, ■
if given an opportunity, or for some- j
body else, but, nevertheless, I feel
that his name ought to go on the
ballot.”
Mr. Maclntyre's views were not
expressed with any feeling of animus
whatever toward the members of the >
subcommittee. In point of fact his ;
personal feeling toward tho~e gen
tlemen is altogether 'friendly. One
of them, Judge James J. Flynt,
chairman of the subcommittee and
• likewise of the state committee, is a
member of the house, and they _ are
very pleasantly acquainted with each
other. His views are simply those
of a Democrat who believes in fair
play, who believes th. members of
the party have an undeniable right
to a free expression more especiallj’’
since that is the object of the pri
mary who conceives it possible, as
he says, for the public to call pri
vate citizen to the public service, and
when such a thing happens or is
about to happen, it is a most whole
some political sign and should not
be stopped or hindered.
Want Yair Flay
Another Thomasville man who dis
cussed the primary along pretty
much the same line, or rather from
the same disinterested angle of fair
play, was Edward Jerger, the editor
of the Thomasville Times-Enterprise,
a staunch Democratic paper that last
week expressed itself editorially in
disapproval of the subcommittee’s
action. Said Mr. Jerger:
“I do not know whether Mr. Hoover
would carry Thomas county or not.
I do not know whether he would
carry Georgia or not. But it seems
to me that the subcommittee made
a serious mistake when it shut him
opt of the primary for no other rea
son than his refusal to commit him
self to undefined partisanship. I
have heard many expressions of re
sentment here. The feeling in
Thomasville is about the same as
the feeling everywhere else.”
A rather peculiar situation has de
veloped in Thomas county with ref
erence to the holding of the primary.
The local county primary has not
been called. The Democratic execu
tive committee of the county is not
in favor of holding the county pri
mary on April 20. the date of the
preferential primary, as requested
by the state executive committee.
This will necessitate forming
of a volunteer crew of election man
agers to hold the primary in this
county. Editor Jerger is secretary of
the county executive committee and
is determined that Thomas county
shall not go by default with no bal
lot boxes open. He intends to form
a volunteer crew by his own person
al efforts, if tne county committee
does not move in the matter, and
• open at least one or two boxes where
the voters of the entire county will
be invited to cast their ballots for
their preference for the Democratic
presidential nomination.
In other words, as he states him
self, Editor Jerger was not especial
ly rampant for having a primary to
start with, believing an uninstructed
delegation might not be amiss under
the rather extraordinary circum
stances of the present presidential
contest, but now since a primary has
been ordered he would like to give
the voters an opportunity for full
and free expression upon everyone
whom they are interested in. and he
is determined particularly that
Thomas county’s voters shall get a
(Continued on Page 6, Column 6)
©be Mlanfa ©rMßteHfl Wtwua®
Let All Democrats
Have Chance to ote
JHithout Restraint
—HOKE SMITH
Editor Journal: Not having a fixed opinion as to who should
be selected as our standard-bearer at the Democratic national
convention I have sought to avoid any part in the coming Geor
gia presidential primary, but Holloman and the Atlanta Consti
tution seem determined to force me into it. In a telegram to
the Constitution on Wednesday he stated that the members of
the Georgia delegation are lining up almost solidly behind At
torney General Palmer, and that I have repeatedly expressed my
high regard for him.
The obvious purpose of this article was to create the im
pression that I favored Mr. Palmer’s candidacy. I wish to cor
rect any such idea. My personal relations with Mr. Palmer have
been very pleasant and I trust will remain so, but when he an
nounced as his platform an unqualified indorsement of every
act of President Wilson he made it impossible for me to sup
port him for the nomination. The Wilson administration has
many splendid achievements to its credit. It has also done a
number of things, especially in the latter years, from which I
was forced to differ. Only a small percentage of the voters of
the country approve every act of the administration. The wise
course for the party is to plant itself on its great achievements
in the last seven years and not to blindly insist on following
those policies of the president which the public have shown they
disapprove. x
It has - been and is my desire to take no side in the presi
dential primary, but I have no hesitation in expressing the hope,
since we are to have a primary, that all Democrats may have
an opportunity without restraint to vote for whatever candidate
they wish. To deny this privilege will create discord in the party
and especially so, if a large number feel that their rights have
been taken from them without regard to any candidate. The
only -way to run the party is to let every Democrat express his
preference and let the wishes of the majority control.
Washington, D. C., March 7.
WAR TAXES MUST
BE CONTINUED
SAY BOTH PARTIES
WASHINGTON, March B.—War
taxes must becontin- -d, Republican
and Democratic leaders in the house,
in charge of revenue legislation, de
clared today. No reduction can be
made by congress this year they as
serted.
Republican Leader Mondell and
Democratic Leader Kitchen, the
framer of the present tax laws,
joined in stating that the proposal
of former Secretary of the Treas
ury McAdoo for a billion-dollar re
duction in taxes and the flotation of
a large bond issue to make up for
the loss in revenue is impossible at
this time and would imperil the
whole financial structure of the na-
Xlon. The high taxes must be con
tinued to meet a war overhang of
three billions in floating indebted
ness, both believe.
A panic, rather than relief, would
follow such action, Mr. Mondell said,
while Mr. Kitchin believes it would
be “the most unwise step that the
government could take at this time.”
Even with drastic cuts in govern
ment spending it will be difficult to
make revenues equal expenditures
during the next fiscal year, it was
pointed out."
New Bonds at 6 Per Cent
Both leaders stated that it was
the opinion of treasury department
officials that another bond issue such
as Mr. McAdoo suggests would have
to bear an interest rate of 6 per
cent, which would force the market
value of outstanding Liberty Bonds
down to such a figure that the 20,-
000,000 bond holders among the
American people would lose hun
dreds of millions if forced to sell
their securities. Credit would be
further inflated and the cost of liv
ing increased, they-hold.
Present indications are that none
of the war taxes will be repealed at
this session of congress, although
the house has passed measures to
abandon some of the consumption
levies, such as tho"e on soft drinks
and clothing. The income and ex
cess profits taxes will not be chang
ed until after the campaign, Mr
Kitchin predicted.
The Democratic leader sharply
criticized Mr. McAdoo for his appeal
for reduced taxes, declaring his
statement was fdr "purely political
purposes.” He expressed belief that
the former secretary knows a reduc
tion is impossible with governmental
expenditures at the present high
level.
“As to the bond issue,” he said,
“former Secretary Glass, Secretary
Houston, Assistant Secretary Lef
fingwell and Governor Harding, of
the federal reserve board, all have
told us that such action is fraught
with grave financial results at this
time.”
McAdoo Is Blamed
“Secretary McAdoo,” Mr. Mondell
said, “is, more than any other man,
responsible for the present situa
tion, for if he, while in office, had
not insisted on a heavy reduction of
federal revenue for the calendar
1919, while the administration was
still running things at a wai - level,
we could now be discussing a reduc
tion of taxes.
"Before there can be any reduc
tion of taxes there must be a reduc
tion of expenditures and it is to
ward that end that congress is now
working. The present administra
tion is demanding appropriations far
in excess of the estimated revenues,
but this congress hopes to cut down
the expenditures asked for the next
fiscal year at least 81.250,000.000 or
below $4,000,000,000.”
Sells All-Wool Suit for $25.00
A handsomely illustrated Spring
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52 beautiful cloth samples of the
very finest, high-grade fabrics, is
being distributed free by the Bell
Tailors, Dept. 759, Chicago, 111., the
largest concern in the world selling
made-to-measure tailored suits direct
to wearer. The values offered for
the coming season are simply amaz
ing. For instance: They offer a
very fine all-wool, high-grade suit,
made to individual measure, at only
$25. The measurement system used
is so simple any member of your
family can take your measure and
the Bell Tailors guarantee to fit you
perfectly-or there is no charge. Send
for their Style Book and price list
today and save big money on your
clothes.— (Advt.)
HOKE SMITH.
DEMOCRATSLIKELY
TO CONSIDER WET
PLANK-LAWRENCE
* _
BY DAVID LAWBENCE
(Copyright, lt)20, so» The Atlanta Journal.)
WASHINGTON, March B.—Pro
hibition has made its way into the
strategy chamber of the political
'parties with the prospect that the
Democrats at* least, will consider
seriously inserting a damp plank in
their platform. The leaders here are
against the saloon, against whisky,
against a repeal of the federal pro
hibition amendment, but in favor of
a liberal interpretation of the laws
and a less drastic enforcement act
os that light wines and beers may
be made in the home or bought like
any other article of food, provided
the beverages do not contain too
much alcohol.
Congress under the amendment to
the constitution can define what is
intoxicating or nonintoxicating by
determining the per cent of alcohol
that it is permissable to use. At
present the law reads one-half of 1
per cent. Democratic leaders think
this is absurd and that the country
would not suffer the evils of wet
ness which ifhe Anti-Saloon league
preached so vigorously If the per
centage were doubled or even treble
the present amount.
But the interesting phase of the
question is the consideration given
to a damp plank as a vote-getter in
the next elections. Could the Demo
crats carry the country by it? I
present today a table of states
which several Democrats of promi
nence have worked out a ndwhich
they think could be carried “with
a strong candidate on a platform
containing declarations of a liberal
character in the matter of laws
relative to intoxicating liquors.’’
“Solid South”
It will be noted that in the first
group are states of the so-called
“solid south,” with certain border
states, thus:
STATE. Elec. Vote.
Alabama . * . 12
Arkansas < 9
Florida . . ~ 8
Georgia •'’••• H
Kentucky -.13
Louisiana 10
Maryland J. . 4....... . 8
Mississippi 10
Missouri ,♦ * 18
North Carolina 12
Oklahoma 1°
South Carolina 9
Tennessee 12
Texas 20
Virginia • 12
Total ............175
From the foregoing group, it is
true, came the chief support for the
prohibition amendment, but as be
tween a wet and dry issue' and voting
the Republican ticket, the negro
problem is counted upon to keep the
south safely Democratic. The south,
moreover, has had state laws on the
liquor question long before the fed
eral amendment was adopted.
As for Missouri, Maryland and Ken
tucky. which have shown a tendency
to become Republican, the Democrat
ic strategists say the liqyor ques
tion would surely-keep them Demo
cratic. '
276 Electoral Votes
But to continue with the table:
Eastern • Electoral
States. Vote.
Massachusetts 18
New York 45
New Jersey 14
Ohio , .... 24
Total 101
Combining these two groups of
[ 175 and 101, the grand total would
i be 276. which is ten more votes than
! are needed to elect a president of
the United States.
But even if the four eastern states
were not assured, the
wet advocates point to a carefully
worked out list of doubtful states
from which they would expect to ac
quire enough votes to malce up for
any losses in that Massachusetts-
New York-New Jersey-Ohio combina
tion. These so-called doubtful states
are as follows: Electoral
States. Vote.
California ... 13
Colorado 5
Connecticut 7
Delaware 3
Indiana 15
Rhode Island 5
Arizona 3
Montana 4
Nebraska 8
Utah 4
Total 58
Republican States
The Democrats here by no means
on Page 6, Column 6)
ATLANTA, GA., TUESDAY, MARCH 9, 1920.
Red Leaders Desert
The Radicals
« .1
"SW£E7 E7A/?/e"GA/VZ
NEW YORK.—Are the ’Teds” go
ing out of business?
“Sweet Marie” Ganz, who threat
ened the life of John D. Rockefeller,
Jr., and served time • iti jail for it,
has renounced her allegiance to the
red flag. In 282 pages of a book she
is writing, “Marie” tblls, why she
did it.
“I fell in love with Nat J. Ferber."
says she. “He introduced (ire to a
kind of people I had never qiet' be
fore.”
Then Harold Lord Varnfey, high
priest of the “Wobblies” and an aid
de-camp of Big Bill Haywood, has
deserted the radical movement. He
only requires one page in a Sunday
magazine section to explain matters.
Both Miss Ganz and Varney de
clare they are through with the
“antis” for life.
ROAD'S WINSuifT
ON VALUATION IN
SUPREME COURT
WASHINGTON, March B.—The
railroads of the country in the su
preme court today won their suit
to compel the interstate commerce
commission in fixing the Valuation
of the lines to accept the present
value of right of ways and termi
nals instead of the original cost.
The decision is of far-reaching im
portance, because the valuation now
being made by the commission prob
ably will be usted as the basis for
making rates under the Esch-Cum
mins bill which will guarantee -the
reads a return of 5 1-2 per cent .pn
their property value. The effect df
the decision is to increase the inter
state commerce commission's valu
ation of the roads, with the prob
able consequence of higher rates.
The test Suit was brought by the
Kansas City Southern, backed by
ether roads after its present st'-
mated valuation of its right of way
and terminals was rejected by the
commission The road claimed that
valuation made on the basis of the
present value of this property would
increase the total valuation from $5,-
000,000 to $10,000,000. The road
fought the case on the grounds that
the lower figure will be the basis for
rate-making, instead cf the higher
one. The commission is now making
valuations of all roads under the
act of 19 t L3,
LOOK! READ!
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Clubbing Offer to get another combination equally as good. With this issue the At
lanta Semi-Weekly Journal has been changed to The Tri : Weekly Journal, giving
every subscriber 52 more issues a year. The latest in news is on your reading table al
most as soon as if you were subscribing to a daily paper. In this day of progress and
advancement this is a fact that you cannot fail to appreciate.
There has never been a time in the history of the country when
there is more real news of vital interest to the public than right
now. Covering the Democratic Convention in the near future for
Ihe Tri-Weekly Journal will be, in addition to the Associated Press
f and the United Press, David Lawrence, Dorothy D‘x and a member
of The Journal staff, who will be able to present the things that
are of special interest to Southerners.
Take Advantage of This Wonderful Opportunity at Once
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Al! Previous Clubs and Combinations Are Hereby Withdrawn
STOCK DIVIDENDS NOV
SUBJECT TO U. S. TAX
DEMOCRATS ARE
INDIGNANT OVER
ONE-SIDED POLL
That the state Democratic
tive committee proposes to disregard
the demand of thousands of loyal
Georgia Democrats as voiced with
practical unanimity by the Demo
cratic press of the state and refuse
to place Herbert Hoover’s name on
the primary ballot, was indicated
: Monday by Hiram Gardner, secretary
; of the committee, when he stated
• that two-thirds of the committee had
replied to Chairman Flynt’s question
naire and that a majority had voted
to sustain the ruling of the subcom
mittee.
Secretary Gardner was unable to
give the exact vote or to furnish
the names of the committeemen vot
ing to sustain the subcommittee’s
action. An effort was made to reach
Chairman Flynt, but he was busy in
court in Griffin and it was impossi
ble to get a statement from him.
In Sunday’s Journal four mem
bers of the committee announced
their disapproval of the subcommit
tee’s arbitrary ruling and Monday
W. E. Sirmans, of the Eleventh dis
trict, wrote Chairman Flynt, refus
ing to sanction the subcommittee’s
ruling. According to a telegram
from Waycross, Mr. Sirmans wrote
Chairman Flynt as follows:
“In answer to your letter, I would
state that your question is not fair,
as you ask If I am in favor of put
ting Republicans or whatnots on the
ticket. The question is. ‘Will we
allow Hoover’s name to go on the
ticket?’ I think this question of his
being a Democrat is all rot. He
voted for Wilson in the last cam
paign and held office under Demo
cratic administration and the Dem
ocrats of Georgia should have the
right to say if he is a good enough
Democrat to be our party candidate
and not the state executive commit
tee. If his name is not allowed to
go on the ticket we will make a se
rious mistake.”
All of the committeemen who have
voted against the subcommitee’s rul
ing have declared that Chairman
Flynt stated the question very un
fairly. As one Democrat expressed
it Monday: “Chairman Flynt’s ques
tion was about as fair as the ques
tion, ‘Have you stopped beating your
wife?’ It* was a reflection upon the
good sense of every member of the
committee. A poll taken in this
manner cannot be indicative of the
real sentiment of the state commit
tee. The Democrats of Georgia
should demand that Chairman Flynt
call the whole committe together at
the state capitol and let the question
of Mr. Hoover's candidacy be pre
sented in open meeting. The Demo
crats who believe that Hoover’s
name should go on the ticket have
a right to be heard, and they should
demand a hearing.”
New Czar Reported
LONDON, March 3.—Proclamation
of a new czar In the trans-Caspian
province is reported in a wireless
dispatch from Moscow.
Prominent Clergymen
On List of Speakers at
Conference of Pastors
Boibbwmmi
I - V -W
I JMI
IS
PROMINENT FIGURES IN THE GEORGIA PASTORS’ CON
FERENCE, to be held in Atlanta Wednesday, Thursday and Friday.
Top row, left to right, Dr. Charles H, Pratt, former pastor of the
First Presbyterian church of Richmond and foreign mission secre
tary of the Southern Presbyterian church, and Dr. James I. Vance
pastor of the First Presbyterian church of Nashville. Bottom row,
Dr. Wiliam Hiram Faulks and Rev. Edmund de S. Brunner, of New
York. .j xl
RAILROAD WAGE
CONFERENCE TO
OPEN WEDNESDAY
WASHINGTON, March 8. —Repre-
sentatives of the railroad brother
hoods and the roads will meet here
YVednesday to begin negotiations
looking to a settlement of the -vage
demands of the 2,010,000 railway
workers. The machinery with which
an effort will be made to settle the
dispute is that provided for in the
railroad bill.
ALLEGED “CON”
MAN IS CAUGHT
BY PINKERTONS
The arrest in Montreal, Canada,
Saturday of H. H. Muggley, alias
H. H. Hubert, news of which was
received In Atlanta Monday by the
Pinkerton Detective agency, halts
the spectacular career of a man,
who, according to the Pinkertons,
posed in Atlanta as a wealthy Cali
fornia manufacturer of "safety car
wheels,” gained the confidence of
railroad officials to the extent where
they ordered his "wheels,” bought
several automobiles from Atlanta
firms, was feted at Atlanta clubs,
occupied an expensive suit of rooms
at an Atlanta hotel, got prominent
Atlantians to vouch for Him at the
bank, and then suddenly disappear
ed after cashing checks for several
thousand dollars which turned out
to be worthless.
W. T. Gloer, assistant superintend
ent of the Atlanta Pinkerton office,
said Monday that Muggley has op
erated in a number of other cities
as well as Atlanta. He will be
brought to Atlanta for trial, how
ever, said Mr. Gloer, who announced
his intention to go before Governor
Dorsey and seek a requisition for
Muggley’s return to Georgia.
Mr. Gloer said that Muggley came
to Atlanta last December, and with
his wife and child, ,a little boy, reg
istered at a downtown hotel under
the name of H. H. Hubert, the alias
he went under in Atlanta. Mr. Gloer
described him as a fine up-standing
figure of a man, expensive, genial,
radiating prosperity and inspiring
confidence by the very aroma of
his fifty-cent cigars.
According to Mr. Gloer, he bore
fake letters of introduction with
which he made the acquaintance of
prominent railroad officials. To
these, said Mr. Gloer, he explained
his patent brake by which he made
car wheels safe and convinced them
not only that he owned a large fac
tory in California, where he was
turning out orders wholesale, but
that the brake was worthy of -trial,
at least.
Mr. Gloer says that the railroad
men signed contracts for the deliv
ery of the car wheels, although they
did not pay any money, so far as is
known.
The Pinkertons’ theory is that
Muggley’s "safety car wheels” was
simply a dodge to gain the confi
dence of men of standing, in order
to pass his checks. If this is true,
he succeeded, according to Mr. Gloer,
first at several automobile agencies,
where is said to have purchased a
n iber of cars for which he gave
drafts thit the Pinkertons declare
turned out to be worthless. Again,
they declare, he passed checks for
several thousand dollars at local
banks which, they say. were returned
by out-of-town banks on which they
were Irawn with the statement that
"Ml. Hubert” had never had an
account there.
The Pinkertons state that Muggley
cashed all of his checks within a
few days, paying his hotel bill with
the last one, and so timing his
departure that he left Atlanta just
before the checks were returned as
worthless, taking his wife and child
with him.
When the case was put into the
Pinkertons* hands, they traced Mug
gley to Indianapolis, to St. Louis,
to Minneapolis, where he is alleged
to have defrauded a Jewelry firm
of a number of valuable gems; to
Spokane, Washington, and finally to
Montreal, where he was run to
earth.
5 CENTS A COPY.
$1.50 A YEAR.
MILLIONSGOLLEGTED
ON INCOMES MUST
NOW EOEFUNOED
Supreme Court, in Memor
able Ruling on 1916 Act,
Says Stock Dividends Are
Capital Stock
WASHINGTON, March B.—Stock
dividends may not be taxed ‘as in
come, the supreme court held today
in declaring unconstitutional the pro
visions of the 1916 income tax act
taxing as income such dividends de
clared by corporations out of earn
ings and profits accruing after March
1. 1913.
Under the court’s ruling, the fed
eral government must refund mil
lions of dollars in taxes collected,
on stock dividends since the 1916
law became effective. Internal rev
enue bureau officials said today the
exact total of the refunds could not
be estimated at this time, and that
it would not bo known until all
claims had been filed and computeci.
The opinion read by Justice Pit
ney declared that the 1916 law dis
agreed with the sixteenth amend
ment, providing for federal income
taxes.
The court held stock dividends are
capital stock.
“Stock dividends are nothing man*
than a book adjustment and repre
sent the increased value of a corpo
ration’s stock because of increased
earnings,” he said.
"Stock dividends show a company’s
earnings have been capitalized In
stead of divided. They still remain
property and In the hands of the
company, and the stockholder re
ceives nothing Which may be re
garded as income.
“It is argued the stock dividends
may be sold, but that is not the
question. The question is what is
a stock dividend . and we hold it is
capital. It doesn’t make any differ
ence whether the stock dividend Is
salable.
“It would require the selling of
other stocks to pay the tax on stock
.dividends, if it were held taxable.”
The case has been argued twice
during the last year.
The decision of the court was 5
to 4. Justices Holmes and Day dis
senting on one ground and Justices
Clarke and Brandeis on another.
Charles E. Hughes represented tho
financial interests fighting the ef
forts of the government to collect.
The suit was brought by Myrtle
Macomber against Mark Eisner, In
ternal revenue colector, and lower
courts decided against the collector.
The Standard Oil company of Cal
ifornia declared a 50 per cent stoak
dividend and Myrtle Macomber, who
was owner, of 2,200 shares, received
1,100 shares more as her dividend.
Eisner levied on this under the
1916 law and the attacks on the law
followed.
Text of Opinion
The majority opinion said in part:
“A stock dividend shows that the
company’s accumulated profits havo
been capitalized, Instead of distrib
uted to the stockholders or retained
as surplus available for distribution
in money or in kind should oppoi -
tunity offer. Far from being a real
ization of profits of the stockhold
er, it tends rather to postpone euca
realization, in that the fund repre
sented by the new stock has oeen
transferred from surplus to capita.!,.,
and no longer is available for actual
distribution.
“The essential and controlling fact
is that the stockholder has received
r othing out of the company’s as
sets for his separate use ano bene
fit; on the contrary, every dollar
of his orighial investment, together
with whatever accretions and acctP
mulations have resulted from em
ployment of his money and that of
the other stockholders in the busi
ness of the company, still remains
the property of the company, and
subject to business risks which may
iesult in wiping out the entire in
vestment.”
Court officials said the case was.
one of the most important at this
term and that determination of the’
question affects thousands of in
vestors.
Palmer Starts Probe
Under Own Direction
Os Sugar Situation
WASHINGTON, March B.—Attor
ney General Palmer today turned
his personal attention to the na
tional sugar situation with especial
respect to the New Orleans and Den
ver phases.
District Attorney Tedrow, acting
on personal order of Mr. Palmer, was
on his way back to Denver to start
a thorough investigation of the beet
sugar manufacturing industry. Beet
growers of Colorado complained
manufacturers were profiteering.
District Attorney Henry Mooney,
of New Orleans, arrived here today
for a series of conferences with Mr.
Palmer with regard to the cane sit
uation in Louisiana and his recons,
mendations, adopted by Mr. Palma,
which resulted in the order of <he
justice department that prosecutions
were not to be started where prices
were raised to 17 and IS cents per
pound.
On the basis of Mr. Mooney’s per
sonal report, Mr. Palmer was pre
pariing a mass of data to be laid
before congress in reply to the reso
lution ordering an investigation of
Mr. Palmer’s course in the Louisiana,
situation.
Mr. Palmer’s friends charge the
investigation was ordered for politi
cal reasons.
Hungry Deer in Church
BOONTON, N. J.—A young deer has,
been around here for several days, visiting
garages, churches and other places. He
was apparently driven from thp woods by
hunger. It was given food and returned
daily for more. .

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