The Oregon daily journal., November 21, 1915, Page 5, Image 5

THE OREGON SUNDAY ! JOURNAL, 'PORTLAND, SUNDAY MORNING, NOVEMBER 21, 1915.
PROFIT . SHARING AS
TRIAL FEATURE
INDUS
IN AMERICA CERTAIN
In No Other Way Can Capital
and Labor Be Brought To
gether, It Is Said,
BEST PLAN NOT KNOWN
General Ido rB Accepted, However, toy
Men of Affaire who Think
Internationally.
iiy n. c. Fori.
New York. Nov. 20. J. S. K.)
How are capital and labor in America
w TuuRiit together?
By profit sharing, I think.
The greatest business minds In this
country today are wrestling a never
before with the whole lahor problem.
Alarm Is felt over the outlook-r-more
alarm than Is publicly known.
I have been Investigating conditions
at first hand.
Financial, railroad, industrial and
commercial lenders have (riven me
their views frankly, honestly, heart
t-o heart.
Fw of them believe the present
ystem will or can last very long.
Winds that think Internationally are
convinced the Kuropean war will mean
a radical alignment of relations be
tween employers and employes.
For the last two or three years
American men of large affairs have
Srroped for a solution, or part solu
tion, of the labor question.
I find they are now turning toward
profit sharing, almost all of them.
Rockefeller Farori yrorit Sharing.
John D. Rockefeller, founder of
standard Oil. would like to have his
workers and other workers become
stockholders in concerns they help to
build up.
lie also has come to favor having
"workmen given places on boards of
directors.
Had Kdtvard U. Harrlman lived the
probabilities are that employes would
have had representation on the Harrl
man railroads before now.
How to Introduce profit sharing
Tlans without Incurring the opposi
tion of labor unions Is proving an ex
traordinarily hard problem, industrial
leaders state.
One employer who has to handle
over 20.000 workmen put It to me
thus:
"I nm anxious to start a plan for
Mowing bonuses to the men at dif
ferent plants who. through taking care,
raise the quality of the product. This
ttrcy can do by exercising a reasonable
mount of skill and common sense.
"The men, I arn sure, would welcome
auoh an offer.
"Hut Uieir union.. I am told, would
object, oii the ground that members
miiMt he treated alike.
"AVere our men to earn niorp than
those at other plants, the unions fear
they Would lose their hold on the men
"I am still working on that Idea!
however. and I believe something
tangible will come of It.
."The " present system of Industrial
wai rare cannot o on forever."
1 Stock Selling not Satis factory.
Many haat'flS of corporations do not
regard ths selling of stock lo em
ployes as a satisfactory arrangement.
The plan works all right as. long as
good dividends are earned, it is point
ed out, but when earnings fall and
dividends have to be stopped, the
workers are affected.
"Our workers would doubtless he
billing to share our profits, but not
our lossrs," said one very large em
ployer. The practice f)f giving voluntary
bonuses, fixed according to annual
profits, has come into vogue in certain
lines, but has not been laken up so far
by many large companies
Just how to divide earnings so as
to satisfy both owners the stock
holders and workmen, is the nut which
must be cracked.
1 have no cut and dried panacea to
offer.
I do ktiow. however, that the whole
subject Is today being given the most
serious study.
And I am confident substantial prog
ress will be niade before long, since
necessity is the mother of invention.
The argument that continuous good
work always wins pro- . ilion does not
quite cover the ground, for, after all.
Only a few can become bosses.
What is need ed h nH will h
more Imperatively as the world pro
gresses is some system which will
Insure for the great body of sober,
hard working men and women a share
Irf.the profits they spend their lives
In helping to create.
This would not only stimulate effi
ciency, but make for contentment.
lOOAcresGifrto
. Wilson and Fiancee
Earle. Ark., Nov. 20. One thousand
seres of land will be presented to
President Wilson and Mrs. Gait as a
wedding gift by an organization of
large Jandowners of this section.
The land faces the Mississippi river
on one side and the St. Francis river
on the other. It Is well protected by
a levee system.
United States Senator James P.
Clark was chosen to carry the deed for
the land to Washington.
Top row, left to right C. D. Emmons, H. E. Judge, R. Martin Jr., H. D. Story. R. B. Hewitt, Dr. G. F. Koehler, J. D. Leonard, V. M. Kapns.
Hecond row H. M. Cake, C. M. IdlemaJi, O. li. Stubbs, C. V. King, Dr. Curtis Holcomb, Don G. Woodward, M. G. Gorman, K. K. Lee, Dr. J. J. Panton.
Third row H. 11. Johnson, A. G. Graham, C. C. Smith, K. I. Doseh, A. L. Upson, Ivan Ilumason, John Gill, Dr. B. E. Miller, C. E. Lock wood.
Fourth row Ralph K. Ilojt, George T. Willett, E. W. Moore, F. O. Xorthrup, G. W. Weber, J. P. Islington, Dr. C. C. Newcastle, F. H. Fleming.
Fro- row F. F. Pittock, H. C. Gregg, S. A. Hering, W. A. Lee, Captain Offley, V. S. A., General Charles F. Beebe, General C. V. Gantenbein, Captain II. E. Davis, A. G.
Ktrowbridge, H. V. llogue.
CHANGES IN FERRIS BILL URGED TO PREVENT
PRIVATE PROFIT IN UNEARNED INCREIVIEN
N
WATER RIGHTS AMOUNTING TO A LARGE SUM
Measure Offers the Public No Safeguard for Water Rights
Which Are Granted by the State, According to Attor
ney C, McColloch, in Letter to Secretary of Interior,
M
HE SIGN OF THE
SATISFIED GUEST
HOTEL
NORTON IA
Wkere the Service is un
obtrusive Where the beds lull to Rest
Where E xecution antici
pates Desire
Where Pleasing is a Pleasure--
Where the Viands, are the
Best-
When, the' man from ail
where meets the than from
eerpw'here.
The thing that appeals-moderate
price.
,
lift, off
Washington
12th am)
, Waking ton
iPertW;
Claude McColloch, a Fortland at
torney, has written a letter to the
secretary of the interior recommend
ing changes In the Ferris bill based
on facts and claims disclosed In the
valuation proceeding, before the pub
lic service commission, on the prop
erty of the Portland Railway, Light &
I'ower company.
Briefly stated, the contention of Mr.
McColloch Is, that the Ferris bill, as
emended, falls to protect the public
against claims for Increment In value
of water rights.
"In the case of the Portland Rail
way, Light and Power company," says
Mr. McColloch, "this increment
amounts' to $5,500,000, and It seems
that In future power developments
protection against such claims should
he made by specific provision In the
Ferris bill. There is In the bill safe
guard against such claims for un
earned values In the power sites
proper and other rights granted by
the federal government, but no such
safeguard Is provided for water
rights, which are granted by the
state."
The letter follows:
Hon. Franklin K. Lane. Secretary of
the Interior, Washington. I). C.
Sir: I desire to call to your atten
tion the claim for land and water
right values being made by the Port
land Railway. Light and Power com
pany of this city In valuation pro
ceedings before the Oregon public ser
vice commission, for your assistance
In getting back into the water power
bill the vital principle of actual cost
valuation of this cla.ss of property.
This valuation proceeding and thi
claim made by the utility therein op
portunely vindicates, as no abstract
ever could, your position that the pub
lic should not pay. on buying back,
a greater sum than cost price for any
natural resource or right. The com
pany named is asking to have valued
a; $13,871,000 land and water right3
for which It paid but $3,201,000.
Terms Are Recalled.
Briefly, to trace the history of the
Ferris bill, as you proposed it. it was
provided mat on recapture the goverr
ment, or any new lessee, should pay
me actual cost or rights of way
water rights, and lands, and the "rea
sonable value" of other property taken
over. In tho senate, however, under
stress from the power interests bank
ers, operators, promoters and .their
lawyers, wno appeared as witnesses
(Mr. Griffith, president of the Port
land Railway, Light and Power com
pany. among the number) actual cost
as to this class of property was
changed to fair value, except it was
provided that no value was to be
claimed for lands or rights acquired
irom the Lnltefl States, good will, go
lnjr value, future or prospective prof
its. It was said it was necessary, to
assist In the financing of these con
cerns, to have a more liberal rule of
value than actual cost. Now, observe
from the consumers point of view
how the difference works out In ac
tual practice!
Valuation! Are Given.
Mr. Griffith's company, represent
inn a consolidation of constituent
concerns and covering a lite of
years, la valuing real estate accumu
lated during that period at $v.S71,00n.
For this ft paid only $2,751,000. On
water rights that cost $500,000 it
claims $6,000,000. As for the land. I
Judge that many wUl say that utilities
are entitled to prbflt on t heir land
from the growth of the community in
wnicn tney operate, llKe anv other in
vestor. but as to water, a natural re
source of the state, given free to tho
utility, can there be any doubt that its
capitalisation against the very people
mat gave tt. Is wrong.'
Yet the Ferris bill as it left the sen
ate committee, and the papers state
that it Is to be reintroduced in tfiat
form, permits just that. If any right
of recapture of water rights still ex
ists under tne Dili in its amended rorm
which may be doubted, it is at fair
value, and that, every one knows, will
permit a large intangible capitaliza
tion. Claim Is for $5,500,000.
TBus. the claim of Mr. Griffith's
company for $5,600,000 "unearned In
crement," in its watefr rights, and like
claims by other electric utilities, is
to be given the express sanction of
law. Not only as to past develop
ment, but for the future the public
must pay for values of its own cre
ation in property that was its own.
There are those even in the West
who will dissent. The practice of tak
ing private profit from unearned in
crement in natural resources, while
perhaps protected under the law as to
vested titles, should not b enoour-
aged, let alone legalized. In the public
utility development of the future.
Cases have arisen in the past of amaz
ing profit at the public's expense out
of what was once Its own property.
For example, the state of Oregon gave
free of cost or price the foreshore of
the Willamette river to the upland
owners, and for two dock sites which
It was later compelled to buy back,
the city of Portland paid In 1911 $1,
315,000.00. Rut these occurrences were
charged to the looseness of methods and
state policy current In the early days
and for the future It was said proper
protection would be afforded the pub
lic. Is the water power bill, a great
measure that will fix the law of Its
subject matter for many years, to dis
regard these lessons and experiences
of the past?
Result Hot Intended.
It has occurred to me that such a
result was not Intended by the sen
ate committee, a majority of whom.
I am informed, are favorable to your
program or conservation: that this
hole in the wall as to water rights
was left more through oversight than
error. ine great principle you con
tended for against capitalization of the
natural rights power sites, rights of
way, etc., granted by tne United States
was retained. Why were water rights
not left in the same category?
Perhaps the committee held that
water rights were comprehended irt
the rights granted by the United
States and so covered by the bill. But
through the bill there Is recognition
that the state "owns the water," as
It is commonly put, and not the gen
eral government, sn this could not
have been the reason.
Or, the value of the water as com
pared with the land mav not have
been considered great. But I call
to your attention that the Oregon
legislature In its resolution for the
Western Water Power conference, de
clared that the water rights in the
average power development are worth
I.fty times the land. And everv ten
dency in the western states hereaf
ter, due to the pronounced vogue for
'state's rights" will be to value up
the water and value down the land
sues, together with a;i other re
sources that are the general govern
ments property.
Cost Should Be Specific.
Unquestionably "water rights"
should be specifically mentioned as
property whose value may not be
capitalized above actual cost, for If
it Is not so provided, only ineffective
protection against watering of values
will be given.
More provision should be made
against valuing either water rights
cr power sites above actual cost in
i.ny public proceedings.
It is true your law will have the
effect at the expiration of the lease
holds granted, of withdrawing all
natural resource values above cost
from the power developments. But
what of events pending expiration of
the leases? In much less than 50
years every hydro-electric plant In
the west, it may he expected, will be
valued in some proceeding or other,
and the monopoly of valuable power
sites, with water rights, even though
limited to 50 years, will be put in,
and without doubt allowed, as an as
set of great value. It will be easy
to persuade commissions, much easier
courts, that the sole right for 60 years
lo the use or a great western power
s:te. especially where near a growing
city, is an Intangible of large value.
Valuation Xarf est in Country.
To any one reading the testimony
given before the senate Vommittee It
Is apparent that much was uncer
tain in the minds of both committee
and interested parties. Many things
of purely speculative nature were said
end opinion evidence given. The
Portland Railway. Light and Power
company's valuation is the largest
hydro-electric valuation in the history
of the country, I am informed. The
claims therein made are opportune
in that they concretely emphasize the
merit of your contention that the pub
lic interest cannot be too carefully
protected in the law that provides
for the future disposition of the un
developed power sites.
Neither the so-called "Jones bill"
rior- the Ferris bill in its emascu
lated form. In the light of the Port
land company's claims, give that pro
tection, l'ours respectfully.
CLAUDE MCOLLOCH.
Luncheon Is Social
Meal in Old London
London, Nov. 20. Luncheon has
come into its own in London as the
meal of the day for seeing and enter
taining friends, and this In circles
above those where the meal Is valued
as an opportunity to elude the ban
on treating. Not only fashionable
restaurants, but the little French and
Italian restaurants are losing habitual
diners who do not care to face th
darkened streets. But there has been
a notable increase In the number of
lunch patrons, so much so that
tables have to be ordered in advance
at quite modest establishments.
Till lately, luncheon, except at the
really, smart restaurants, has not
been reparded as a social meal.
Women lunching alone, or In couples
during an interval in shopping, and
business men, with a sprinkling of
the more Bohemian folk, used to make
up the luncheon throng. Now, how
ever, the restauranteurs are having
much to their satisfaction, to cater
for family parties, a little lunch in
town, with a matinee in the after
noon, taking the place of the little
dinner followed by the theatre.
Czar Orders German
Title to Be Dropped
BXorgrasatic Wife of Bis Only Uncle
Made Subject of Drastlo Imperial
Order.
Berlin. Nov. 20. Petrograd papers
arrived here report that the czar has
ordered the morganatic wife of Grand
Duke Paul Alexandrovitch, his only
living uncle, to drop her German title
of" Countess von Hohenfelsen. She
will be known In the future as Prin
cess Palei and the same name has been
given to her children.
Five Million Men
Killed in the War
Swiss Military Statistician Places Fig
ures a Bit Higher Than Other Esti
mates Taat Have Been Made.
Basle, Nov. 20. Colonel Heusslcr, a
Swiss military statistician, calculates
the total looses, in killed of the fighting
men on all sides In the present war at
5,000,000.
Colonel HeuFSlcr's estimate of the
number of fatalities in the present war
Is higher than any hitherto made.
whether official or otherwise.
Neither France nor Russia Issues to
tals of casualty lists, while Germany
either combines her losses with thoFe
of Austria-Hungary or designates mere
ly the Prussian casualties, leaving the
other etates of the empire to make
public what they choose.
On July 31, Premier Asqujth an
nounced in the British house of com
mons that the first year of the war
showed the total number of slain, based
on German as well as British calcula
tions, to have been over 2,000,000, dis
tributed as follows:
Great Britain 116,000
France 400,000
Russia 733,000
Belgium 7,00n
Serbia 64,000
Japan . . . 300
Record Attendance Expected',
at Functiorrto Be Held at!
Multnomah Hotel,
ENGAGE TWO BALLROOMS
1 BUGLE AGAIN CALLS TO REUNION THE LOYAL MEMBERS OF COMPANY G LAURELHURST CLUB
: " m a m m : BUSY BOOSTING FOR
JIn Jiv Jt Jls flgH THANKSGIVING PARTY
Jim cj t; v7 W 7 T- if vtj
H Ok f m k M
"'V'- -! n 1 i iiMininntiiii -mnmftiMHi, -nirmiii.trr TT JUl4iilkriiirrrmii iimni mmm muni n. , W'wuiirr - ,-w'Tr 1.11. ijiw in it il gf irnnniw
1 ' ' ) j 1. iswJEC'MJ-''igiP ' ""'
'BW in 11 .iW.m. ,i, ,i,.ii. 1. 1 1 iiii.ii.il nhi 11
Elstory of Club Organised by Best-
dsnts of District Is Beoallad Wom
en nave Valuable Aid-
Hotel Multnomah, on the evening of
November 26, will be the scene of the
Laurelhurst club gala party. Both
ball rooms and the mezzanine floor
have been engaged for their Informal,
as well as formal, Thanksgiving eve
ning party,
From present indications, the func
tion will ekceed in attendant-e any oth
er gathering of Its nature this year.
The reasoi for this Is that each and
every member of the club is a chair
man, manager and whole committee all
In one, and the success of the party de
pends upon them.
The Idea of organizing a club In
Laurelhurst arose during election tiina
in the fall of 1912. Laurelhurst Park
consists of two voting precincts. At
one precinct the subject was broached,
and the result was that a club should
be organized.
raw Attended First Meettaff.
First steps toward organizing the
club were taken by H. S. McCutchan,
now president of the club, assisted by
Earl EL Parker, Charlee Rtngler. Jaclc
Keating and L. E. Mason. The first
meeting- was held at the residence or
E. H. Parker, at which onlr were
present. Other meetings were held,
with the attendance growing- larger,
and finally officers were elected and a
location was selected for a clubhouse.
A rather unusual method fM taken
by the women members to ralee funds
for the furnishing of the club. Jard.
parties were held at different homes,
at which & charge was made. In this
way a fund of more than $2000 wae
obtained for furnishing the clubhouse
upon Its completion. :
Pertain afternoons and evenlnrs are
set apart for different entertainment.
jivery oiner iuuriuay uicuiuuu -
matlc club holds meetings. Every
other Tuesday afternoon a bridge and
600 party by members takes place. A
charge of 25 cents is made to purchase
dishes and silverware for the club.
Orchestra Holds BeUearsala.
Every other Monday evening the club .
orchestra, which consists of 25 pieces
and under the direction or Jotin J. woy-
er, uses the club for rehearsal. It Is
' the intention of the club that, should
the city offlcals shorten the city park
'band schedule next year, the orchestra,
with an addition of five pieces, -will
render concerts for the surrounding
citizens.
' A dance class, under the instruction
i of Mr. and Mrs. A. C. Holmes, Is held :
' in the club rooms on every other Tuea
I day night. All latest dances are
: taught free of charge. Between S6
! and 60 members take part in the class.
!The dramatic art class, in charge of
i Mrs. Josephine Hammond, of the Reed
1 institute, holds forth at the club every
, other Wednesday evening. Dance and
card parties are held alternately in the
club on Friday nights.
Over $2000 has been paid on improve
ments ana cjud innDiuntM w
On June 14 a country fair was held at
the club.
Your Fuel Supply
'should be replenished at once, J"
Prepare for Winter ads In Today
journal give you a reliable list er
fuel dealers to choose from. (Adv.)
Total allies 1.SH0.300
Germany , 42,000
Austria 341.000
Turkey 45,000
Total Teutons S68.000
Grand total 2,228,303
On this basis, which shows a month
ly average of 185,661 slain, the total
Of the nations recorded, omitting Ja
pan, would be to November 15, 1915,
from August 1, 1914, 3.S77.S34, to
which may be added the unofficial
estimates of those killed on the Austro
Italian front (Austrian 110,000, Ital
ians 30.000), making a grand total of
4,017,834 killed since the war began.
Mendota Lump Coal, $5.50 per ton
delivered. Albina Fuel Co. (Adv.)
ON Thanksgiving Day, whether you
walk, ride or motor you'll want a new
Overcoat, for Thanksgiving airs are crisp and nippy
Come to this store to see the models that are in the mode
beauty, fit, ease and luxury of fabric at a modest price.
$15, $20, $25, $30, $35
Men, Main Floor Young Men, Stjcond Floor
BEN SELLING
Morrison Street at Fourth
KM ft
You'll find here
The Eyes of This Generation
are equally efficient as those of previous generations, but . the
riemandH upon them are greater The growth of manufactur
ing and commercial purnults. the increased reading or "wb
rapeTS. magazines and books, and the introduction of moving
pictures have emphasized the need of exact vision.
Nearly all defects of vinlon can be remedied by Pperly tted g I""
and in no other wav. Many of the minor diseases of the eye may also
be arrested by the skilled specialist. .
We have been In successful practice for 20 years eight years W
PrWenexamine your eves by the most modern methods, and supply glasses
which absolutely correct your defect,, c f vision roneiiltation
Let us attend your eye needs. We make no charge for consultation.
yHEHR0C-
5TH FLOOR, ORECON1AN BLDG.
Move Paper in Circle and See Wheels Oo Bound.
THANKSGIVING DAY!
The good, old Thanksgiving Day will never again be the same (or
those who love the cheer of the golden Juice ot Mother Earth's grain,
or the ruby of her wines with their roasted turkey. This is the Ust
within the bounds of green Oregon. It will require a constitutional
amendment to buy
Lnqunoir
for your festivals after 19 15, and now is the time to stock up. You
are permitted to own as much as you like, if purchased now not a
cent's worth over a ha'f gallon can you buy afterwards.
PREPARE! PREPARE! PREPARE!
PURE CALIFORNIA WINES
(Bottled In California)
Bottle. Case.
Quarts. 1 Doz. Qts.
STANDARD WINES $2.75
IMPERIAL WINES $3.50
OLD VINTAGE 35c $4.00
CREAM OF CALIFORNIA (oldest and best) 45c $4.75
DE LUXE 65c $6.00
Add $1.00 Per Case for Two Dosen Pints
The above wines Include Port. Rherrv. Angelica. Muscatel. Claret. Zin
fandeU Burgundy. ItlesllnK and Bauterne.
el
Belvista
Champagne
70c
Bottle
Dosen $6.75
t "N
Sparkling Bur
gundy or Califor
nia Champagne
Bottle
Dosen $5.75
Ruby Red
Highest Grade
Sparkling Bur
gundy Made
70c
Bottle
Dosen $6.75
HIGH-GRADE WHISKIES
Bottle. Gallon.
Five different WELL-KNOWN WHISKIES $0.65 $2.25
SUNNY BROOK $ .79 $2.90
OLD KENTUCKY $ .75 $2.45
SUNNY TRAIL, "rich and mellow" $ .90 $3.25
CREAM RYE $ .79 $2.90
PRINCE ALBERT, a $d whisky $1.15 $3.85
KING HILL, "pride of Kentucky" $1.05 $3.45
DE LUXE, oldest whisky on the market .$1.45 $4.25
4-
Imperial Wines
Regularly $1.50
. Now
35c
Gallon
Old Vintage
A $2.00 Win
$U5
Gallon
Cream of
California
Oldest and Best
$1.45
Gallon
Choice of Port, Sherry, Angelica, Muscatel, Claret, Zinfande), Bur
gundy, Riesling and Sauterne.
PURE CALIFORNIA BRANDIES
Bottle. Gallon.
REGULAR $3.50 BRANDIES . . $0.70 $2.45
REGULAR $4.00 BRANDIES $ .90 $2.90
REGULAR $5.00 BRANDIES $1.15 $3.45
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