La Grande evening observer., January 01, 1923, Image 7

(SrattiV lanmttt
VOLUME XXVI
SECTION TWO
LA GRANDE, OREGON.MON DAY, JANUARY 1, 1923.
ME.Miti:a Of ASSOCIATED PRESS
NUMBER 73
HALF WAY UP
: IS 1 -'
LATESURVEY
' Statistician Believes Next
, Twelve Months is a Feriod
of Money Making- 'for
. Lots of People.
WELLESLEY HILLS, 'Mass., Jan.mcnt. . Some commodities aro hich
1. (Special). "What's going tovhop-!and
pen in 192:1?"
That question is uppermost in the
.piinds of 1,000,000 American busi
, ucsshicn and investors who are fac
ing tl'c problem of making plans for
, the now year. - ,
Signs are not clear and the usual
barometers seem to contradict one
another.
In the face of this general, con
fusion we had best fall back on-the
i fact and figures. After a thor
ough study of the fundamental con
ditions that govern our market, Rog
er W. Babson today issued a state
ment which clears the air and fur
nishes a basis of fact for your plans.
"Wo aro now at a point in the
business cycle. says Mr. Babson
win. vnn run tret almost as many
different opinions as there arc busi -
ness men. Some arc very bullish for
the coming year, and others cannot
sec much hiipo for business. The
reason for such a situation is that
wo aro at present neither at the top
of a boom nor at tho depth ot a de-
prcssion. If wc were at either of
these extremes there .would be no
Question of what the next mow
would be. As it is, -wo are- about
half way between them.
"Normal" llusincss.
"During the Past year United
States business has steadily advanc
ed until the average .for the whole
country is what wo usually call
"normal" business. Having ndvanc-
cd thus far,' shall we immediately
continue into a great prosperity per- ............. .
iod or shall wc go into anothor per- "-"'v 'n the United States. Bo
iod of depression and poor business ifore 'Pc war we n addition of
us some iiredict' !a million immigrants a year. Now
.. . v ... . . .. .. 1..... ..... 1-..- .1 nn nnn
"If vou will only remember the five
years preceding 1921 and recall what
an enormous orgy oi expansion exist
cd, you call sec for yourself that it
will take some time to get a proper
foundation for really good business.
tc danced during these years, and
now wc must 'pay the fiddler hisjl
complete bill. Business has really) 'The real solution is not tho re
becu tiko a convalescing patient. 'peal of the' present immigration law
Kvcrylhing will go well with the pa-J but rather the repeal of the eon
tient if he does not try to get out: tract labor law for as long a period
of bed too soon. If ho tries to over- as the .1 per cent law remains in
do lie will have' a relapse. We now 'force. This , would make it possible
havo passed the most painful part! for employers to promiso selected
uf ln. read iustmcnt. The crisis is, foreign wurk-.i's fmnlm-mpnt- lifrrfi
over, but a process: of cost rcduc-
'lion anil ro-Daluncinir- is necessary, '
t ..Price' Shread-is. Wide.r': " . - 1
"Tny'.'n:iviue;fep"ar
, ,iwj Vf .llffr.. rnfnrtro,!-
lties ' aiid particularly the spre-id ln P-'tt'ng ample supplies of bi- J"e iltlc lear of a lack of .funds EXTliND
between ni'aduc cCnsu c s' luminous coal this winter. The carl' a" legitimate purposes, and this . iv , ,
foodi T mi is ' fic on trade KO is i diminishing somewhat. ?! "PPl'M to long-term moneyT tHntrTTg
AnKoU ;poX cannot1 'etn Aple supplies of bituminous, coal . JiUl PO-mneiit h,estm,t
enouth to ' buV l ie iroods that the "r? uplnS Produced, suggesting low- '-Mortgage: during ..L'lJ.l- shoAld
othci ih-.ll 1 has to'sell There are o,,i;o'':pces., .The mischtvf f Hhis sttJr !' :X4X,W-9rrm.xb 1 T T.
numSed'ai5.1C ?eo YOU THE
the United '.Stales and -fil'tv ner.eent agam c t6--tho di'nn.rge ot bdth fth6 -umtod State- between. ,1, cr .
of tBehi get their "iviug frL pro- ,,,iners " operators !o..elae...e)kMiL----WenC The time isEg
,lue VdhlritanrTa Th difi,Ule. not far .way when this average WHln&
It has thus far been impossible to 'wnicn nrougnt on tne strike last year
reduce the prices of finished con- !"lve "(,t been settled. There is ser
suiueis' goods to meet the cuts on ,0f danger of another strike in the
these raw materials. The purchas- ;so1' c0"' fields.
ing power of these people is out of .Everybody is worrying obout the
its natural proportion. political situation. There is talk of
"It is not entirely a matter of re- 'adical legislation during tho com
ducing wages, although labor costs I '"K year. , Most . of this is merely
are a large factor, nor is it entirely,;"" coho, from .campaign speeches.
. ..... ..e :....eF:..: . . -It mav be A nnisv vpar. Ilnfh tho
No, the problem of high costs is not
a problem of any one element: and
readjustment can come in only one.''nouKh to push thru any extreme
way drastic competition. All this power, but neither is strong cnouKh
will take further tunc. i measures of its own. The only kind of
"Does this mean that there will be I legislature to be enacted is that
no opportunities in 192? Not a bit! which will appeal to members
There will be just as many chances f " croups. Already the Fedcr
to make money as in any venr you ' Reserve Board has issued a rul
ever lived. It will be possible !'or''K admitting a largo amount of
you to make as much during the agricultural paper for rediscount in
iiext twelve months as in any year,t''e federal Reserve Batiks. The
of vour business life, but it will not! Muscle Shoals problem will probably
be along the lines which made money io settled, either by sale to Henry
in 1919 and 1920, nor in any other 1'ord or by development on the part
boom vear. Tin- profits in 192i willlof the government itself. The Sol
come bv giving attention to details, iters' Bonus will Probably lie enact
bv stopping the little leaks, bv sav-ied, although no agreement as to the
ng here anil more tnrouj!ii new m -
i. ..--..,,.;,. !iiiK nm mot nf
M1L bv devising new and more eco-jable that there will be any increase
nomical means of distributing goods. in the amount of business taxes
This was not at all the situation dur- "Iho political aspect has fnghten
ii.n h,Kin,,E4 hnnm Then the ! ed many stockholders, but it is en-
k (,! i n.-ovnnt email
leaks found himself caught by tho
t. - aj , --- ss-,w-i laqn 199S 1900 190$ j8!Q ' I9IS 1S20
ff; - Lujrgf iTTi rm j rm inrt i ;
p Ji M'il U " " LO'hG.SWINGTBOWD CYCLE lf
vl iv i Aj-k Lf-i
momentum rise in prices and changO
in general conditions.
"Thosa days havo passed. They
were wild and merry while they last
ed. Now business ha come tack U
earth. , In moat industries, an exces
sive producing capacity was created.
During the boom, overhead costs
word increased to keep MP with an
abnormal turnover. , Today the
amount of business has dropped bark
more nearly to normal, but costs
have not been proportionately rcduo
ed. Higher wages, higher rents,
more expensive sales organization
in fact, nearly every item o ex
pense is out of proportion with the
amount of business done. !
Instead of wild gyrations in the
commodity markets, tho average
trend throughout the coming year
should be moro of a sidewiso movc-
others are very low, but the
majority at present aro about 15 per
cent above their levels a year ago.
A year from now we shall prob
ably find them averaging at about
tho same level they stand today. In
between, there may be a further ral
ly from the low of 1922, and agri
cultural products certainly should do
better.".
Karnings," continued Mr. Babson,
"should average somewhat better
than in the year just passed. A sur
vey of 100 loading industrial com
panies, recently made by tuy organ
isation, showed that in 1919, 96 per
cent of these companies made a net
profit. ' while only 4 per cent showed
a deficit. In 1021, the number of
linns which ceuld show a profit was
cut down to 4ti per cent Over half,
lci - o2 per cent of these industrial
concerns lost money on their year's
business. 1922 has witnessed a
I change) from red ink figures into
black ink figures, but the amount
oC net profits will not be large when
the books are finally balanced. nc
arc just Betting back onto the right
sale oi tne leuger.
"Tho shortage of labor is ono of
the worst (features of tho 1923
look. The moment that business
works up to average activity it bc-lso
comes impossible to get sufficient
workers. This raises costs and in
turn increases commodity prices and
i - ,,c cost of living. The immigration
lnw is largely the cause of this
snortagc. inis law restricts tne
inn hiu iCT-i:iuii iwa man dw,"W
land at least OU Per cent of these
aro woman, children or other de
pendents. On the other hand, I
Uloubt if the repeal of this 3 per
cent immigration iaw is the proper
'solution of. the present labor shor-
- agc.
leaving their own homes. The mo -
mtmt that the lmmin-rutmn luw
- rcpealed the contract labor law can
, ... :
"Ihcre should be no great difficu
:-" "b "u vne naoicais nave
veto power, but neither is strong
j "ji;. m n i misim i inu.,-
ev nas yet occn mane, it is inipron-
tirely too early to be worried. The
i thing to watch is fundamental con-1
IS
DEFEATED BY
pin
STADIUM STANFORD UNIVER
SITY, Jan. 1 The Panther football
team from tho University of Pitts
burgh had little trouble in defeating
K'ltnfr.Vi llllitrAlitr- 1 R In 7 tin-,. ...
day in tne second cnst.west' KBm0 of
tho season. The .visitors outclassed
the Cardinals throughout the gnmo
ana except tor a lew minutes dur
ing the last period were on the of
fensive. Only a vicious Stanford defensive
prevented the score from being high
er. Six timas the Pitt backfield
with its crack fullback, Hewitt, and
its star halfback, Flanagan, doing
most of the work, by line bucks and
forward passes, canricd the ball to
within the Stanford 20-vard lines.
and six times Stanford held and
i punted out of safety
It was one Warner-trained team
playing against anothor, and the
most eperienced eleven won. Glenn
Warner, who is advisory coach of the
Stanford team, and comes to take
full charge of tho eleven in 1921.
ditions. Wo are still in a readjust
ment period. This means that soon
er or later wo shall work toward
better prosperity. It is true that in
dustrial stocks arc much higher than
a year ago and aro certainly not the
bargains that they were. However,
as I havo already stated certain lines
j, go forwar!, The industrial
of industry are just getting ready
ket h. ..no,tv. ,., ,,,,. nr
great manv issues (hut limill ,in
STANFORD
out-lbotter in the coining year,
"The rail group is, relatively, not
far advanced as tho industrials,
i I do not believe rails should be
bought indiscriminately, but the rail
'average will follow 1111 thp rrinimt
'market. I am much more attracted
I to the long-haul roads than to the
shorter lines. The motor truck is
a feeder for the former but a com
petitor of tho latter. Copper stocks
have really no.', started yet, but the
statistical position of the metal is
far better than it has been for n long
time. Coppers, certainly, are selling
at bargain levels.
".Money conditions should continue
good. There is on question that the
banks arc in a strong position. The
Federal Reserve Banks today havo
reserves eual to about 7(i per cent
of their note and deposit liabilities.
The reserve required is between 115
per cent and 40 Per cent. It is true,
that when foreign countries begin
to got on our feet, it will be neces
sary to send much of this cold back.
For the present, however, this gold
represents the basis on which a con-
'sif'eraolo expansion of credit can be
isiuuni,. n iruaraiuces ,io us a re a-
iivciy easy money rate, until neavy j
gold exports are resumed. During i
the coming year, borrowers need '
stand between 5 per cent and C pe
cent. .;
"Of course, the ease of the money j
market is distinctly favorable to long?
time uonus. there is a point in the
business cycle when industry becomes
so active that money is absorbed by
trade. When this occurs bonds are
sold and develop a downward ten
dency. This point in the cycle has
'- . ""'"-'.
?"Oim that following the Civil war
bond prices, barring temporary fluc
tuations, rose for iC long period of
years, the advance culminating about
1900. from this point, a descent was
gradually made to a low point at
the end of the European war. Since
this low point, history is repeating it
self, bonds having reached a middle
ground, but still far below the .1.811
or 4 per cent basis of the 1900 per
iod. All thc.-e factors suggest that
well selected bonds, both municipal
and corporation, are a distinct pur
chase. . .
"Bonds nnd money," concluded Mr.
Babson, "aro certainly sound factors
iivthc situation. As for bu-siness as
a whole, there is no doubt that it
will average lictter this coming year
than it did in 1922. This does not
mean that there will be any boom.
but that there will be plenty of
money-making opportunities for those
who know fundamental conditions."
Stars Favor U. S. in 1923
THIS IS PREDICTION OF WOMAN SEER FOK NEW YEAR "
What do the stars foretell for
1H23? NF.A Service asked Kvnnge
lino S. Adams, world famous as
trologer. Here 5s hor story of the
influences which will prcsidti over
tho nations of the world for the
coming year.
By Evangeline S. Adams
Tho year 1923 will be one of ma
terial success.
Throughout the year Jupiter will
be in the sign Scorpio, which augurs
well for any enterprise having to do
with liquids," chemicals or drugs.
Oil wells will Show profit, ship
pink will oo stimulated, those en
gaged in the import and export busi
ness will meet with success.
Hope for Wets.
Conditions also favor those inter
ested in the so-called "wet" move
ment, so that prohibition agents and
"drv" lenders will have to be in
creasingly vigilant.
Political chaos will continue abroad
until this country decides to co-oper-
ato. Restriction and depression will
mcvail in China and India. Rus
sia, however, will issue into brightct
conditions.
U. S. Success.
The United States will be mater
ially more sucossful than any othel
country, as Ircsidnt Harding is un-
ler better influences than any other
ruler.
Kinc Gconre is under the influ
once of the nerve-wracking Uranus,
so his country will continue in great
unrest.
Tile year 1923 will be as n rule a
year of last struggles, preluding the
appearance of now ideals and a new
and stronger race of people.
Children bom in this year will
tend to be of the new race.
1921 Conflict Predicted.
Here arc predictions made by Miss
Adams which later events justified:
The Windsor fire, 1899.
King Edward's death.
Panic of 1897.
World War.
She predicts a great conflict for
e United States in 1912.
the
Ileal Estal
Greetings and Salutations, kil.
And ulso "Welcome to our city!
The Old Year's blowed, we're glad
ho did,
His gears were gettin' worn and
gritty; .
Ho wasn't hittin' on all sit,
The poor old wreck could hardly
toddle,
He wasn't worth the time to fix;
So we get YOU, u bland new
model !
It's true tho roads he found was
rough,
Chuck full of mud and sand and
gravel ;
You'll find some, too, but DO your
stuff,
Let's see how smoothly you can
travel.
We're wishing you tho best of luek
And that is straight, we wouldn't
con you;
Go on now, show your Pep and pluck,
We're for you, kid, ir ad is
on yoa!
, .
That old bird, 1022,
Done well, thoust h ieer 9s
. checkered, .
Hut 're exectm' more from you.
We're bnefcn' you to break his
record.
HliOA! Start your act! Get bu-y! We
Arc wateOin' every move you're
mak in'.
Go to it, 192:;,
Step out and cop the well-known
bacon!
At 1 1
,m 4 ' : :
: I -M
EVANGELINE
T
E
(Cy The A:iuWi(lM I'nwi)
HA X !' It A Stilti '( . I m .1 l.-r-tf a
Kmnico exeat munlrlpnl v:iUr
power project ut HoU:h llutchy, 'ul
'avenuH county, hi m-uriny: coinpli.-tlon,
TOIH'OlllltlR: lO (MlKllltK'tti In chiUKi; who
Kiy that 1ikh than a montli' work re
mains on I lie Iuiko $5,mHi,ouu dani.
llfti-h llctrhy Ih a Siena Nuvuda
inoiintain valley ami uflen Iiiih buen
(joni pared lo t lie VoHLinltu valley, nut
inutly IHIKiH I rum n. ncn Hi".' limn
li nd bv nV Mi'iing It la expected'.
HUGE R H
IS NEAHLY DON
the valley will be n-plaeed a l.-iko. !l prove sonieinmg.
Work is progressing on the power Ullt what they will prove will not
plunt lines ,.,! the water malua ami ho known to tho .world until the
mn Is being cons, meted a a purl ,,f images of the faint stars surround,, g
' whin, ,.veiulh-. will'tho oc ipscd sun are measured with
sui'! Sun l''innslco wllh water un.l
1942
Conflict Predicted
Hero are predictions made
ty Miss Adnms which later
events justified:
Tho Windsor fire, 1899..
King Edward's death,
Punic of 1897.
World War.
She predicts a great con
flict for the United States
in 1912.
4 V
S. ADAMS
Biggest Task
Up to Science
Im New Year
l)y Edwin E. tilossan
Scientist nnd Author
Tho most important scientific event
of the coming yenr, so far as enn
bo foretold, will bo tho confirmation
or contradiction of Einstein's theory
of relativity.
Already tho evidence is in hand.
Director W. W. Campbell of the I.ick
Observatory has returned to !Califor
nia . with - the precious plates that
may settle the question whlcn is
right in regard, to .griivitationlBaitc
Newton or Albert Einstein. He says
they l negatives and likely
the micrometer to n thousandth of
an inch to seu if they ore farther
apart than when tho sun is not in
their midst. If they are so separ
ated and to tho right amount, it
will show Kmstein was right when
ho said in 191D that a ray of light
from a star passing near by a heavy
body like the sun would bo bent out
of Its straight path toward tho sun.
To get these few photographs the
American astronomers had to travel
across the Pacific to Australia and
un the west coast of the island con
linent to a place in the desert known
as Wallal. Why did they go there?
Itecausc it was in the desert and
therefore likely to be clear weather
during the six minutes ot total
eclipse.
Other astronomers went farther
and fared worse. The British. Ger
man and Dutch nstronomers chose
Christmas Island, in the Indian
Ocean, as their observation point for
the eclipse of September nnd it hap-
ncned to be a cloudy day, so they
had to return without any evidence
on the hinstein theory.
Triple Test.
Einstein, like Portia's suitors, has
lo pass a three-fold test. Ilepro
dieted , besides the deflection of light
rays passing by tho sun, that light
ru'vs proceeding from the sun would
have their waves so lengthened tnnt
their spectral lines would be shoved
toward the rcii end.
Here the evidence is conflicting.
Some astronomers say that there is
such a shift. Others find none of the
sort required. This mention is being
most thoroughly tested by Dr. C. E.
St. John ut thu Mount Wilson ob
servatory. Ihe tnir.l test, or ratner the first
in O'iut of time, is the famous ox-
r . ... I . . .. ... - L L .
peiniii'UL mane uy .iiicnneson ami
.M'.rley in Di to Determine the rate
of either unit, ihi.o gave the dis.
4-uncerting result that there seemed
to be no ether at all.
Einstein interprets this to mean
lllial everything shortens n its speed
inereaes; mat at u velocity of llil.-
ll(;0 miles a second a footrude would
:-.l:rink to six inches 'and a watch
would lose .10 minutes an hour.
Apples Still Fall.
Profesfor 1). C. Miller of Clcvc
land is now repenting tho Miehelson
Mnrley experiment on a moro cxten
Si
lustra EU
HI6H SCHOOL 1
CLASSIC BEINGIi
; PLAYED TODAY
Tim CorvalliH hlirli nchool gridiron
team, Rchctlulcd to play tho Toledo
football team for tho interne holnattc
champlonHhlp ot tho United Htates,
liaa bitten off a largo mouthful, or o
miys they who witnessed tho Invader
workout on Multnomah field yeator
tlny. The eatcrn team, avoraglng 1 (0
pounda to tho man, hit a high pac
for about an hour and when the prac
tice was over, tho team Jaunted from
the field without appearing tho least
bit tired.
A hundred or moro forward pames
were executed with a perfection that
In rarely seen even amonic college
teams. Of tho entlrn number of at
tempted gains by the aerial route,
only a few went to the dogs. And
the rent of their plays were carried off
.with a Hpced and Hmoothnesa that
showed without a doubt that the
Waito bunch were champions.
The CorvaJtls team,' a heavy, fast
bunch of expert moleskin men, took a
five mllo jaunt as their final prac
tice preliminary to tho game, which
Is being played this aftornoon In Cor-
vallls, and they are ready to meet
their opponents and give them th
toughest battlo that they ever had.
"1 am counting on the; wondordif
fighting spirit of my boys, their speed
and Intelligence, moro than any
knowledge of tho game .1 may have
been abe to give them to come out
victorious," said Coach Kcan of Cor
valliH. Officials for today's game arc: 8am
Iiolan, referee; Vincent Uorleske, um
pire and It. II. Ku.ek, head llncs-
mtu.
MOSCOW IDAHO, Dec. 81 Hopes
of retaining tho baskcthull champion
ship of tho Pacific Coast Intercolle
giate Conference are held at thp Uni
versity or iduiio noro, wnero tniriy-
five men are fighting for poaltloiui on
the varsity. Uist year Idaho, in Its
first conference seaaon, Won the bas- .
ket championship.
Coach David McMlllulli has several
teams working gut dally and Homo, of
tho new men aro so good that tha
veterans will lie forced to rujhl
for their jobs this season. McMillan
believes lie luis a better passing team
than lie had last season.-,
The Vamlu's basketball schedule
follows: - V ' ' '
Jan. 12. .Montana at Moscow. ,
Jan. 13. Montana at Moscow.
Jan 17. (lonzngu at Kpokano.:
Jan. 18. Washington at Hcattle.
Jan. 19. .Miiltnoinuh at i'orftand.
Jun. 52. O. A C. at CoiviiIUh. . '
Jim. 23. Willamette nt Hnleni
Jun. 20. Washington state at Pull
man.
Jan. 27. Washington State at Mos
cow. .
I'Vli. in. Washington nt Moscow.
Keb. 14. Willamette nt Moscow.
I.'cb. 1'J. Oregon at Moscow.
Keb. 21. Oregon Aggies ut Mos
cow.
Feb 23. Washington SUito at Mos
cow.
.'eb. 24. Washington HUilo nt Pull
man.
I'eli. 2il. Wbltniun ut Moscow. ,
i(eb. 27. Montana at Missoula. 1
Mur. 1. Montana at Missoula.
IIS ARE
F
TOKIO, Dee. 9. Tho taste for tht
general public In Japan for movlnf
pletureH Is Inereaslug every yc;ir.
Krom Hlxty to eighty new picturca art
llispeeto.l every ilay by tho metropoli
tan poltee. .According to the poHC
authorities, tile number of picture-' .
permitted for use last year rosels"
J1.S77, showing an increuse of at"ol,l:
double that of tho proceeding '"r'
Hlnco January 7,000 picture
been imported to Japan from
L'llllcil Klutes nnd about M" !
from Italy, tlermany and fP""-0 !
speetively. Tho number m ' JJ
pletiircs Imported from Kne'"1"1
olber countries Is very "ninl' m, -
KJllfllC
Co.
VANDALS HOPE
TO BE CHAMPS
11
'I
seine himi wun more exact ap-
pa-Mti.i, inn, uia iy.uiu sj iur n
.........luti.. . I .
a l