Edftoria
1 Page "oi The Salem Capital Jooma
MONDAY
DEC. 29, 19) 3
The Capital Jourinal
PUBLISHED BY
The Barnes -Taber Company
GBAHAM P. TABEB, Editor and Manager.
Aa Independent Newspaper Deroted to American Principles and the Progresi
and Development of Balem in Particular and All Oregon in General.
Pahllahed Erery Erenlng Except Sunday, Balcm, Oregon
" SUBSCRIPTION RATES:
(InTarlabljr In Advance)
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"Want" ads nd
The Capital Journal carrier boys are instructed to put the papers on the
pore a. If the carrier does not do this, misses you, or neglects getting the
Pr to yon on time, kindly phone the circulation manager, as this is the only
way we cat determine whether r not the carriers are following Instructions.
Pious Main 82. '
WHY THEY WAXT RATES RAISED.
THERE IS NO ONE so well qualified to apeak intelligently on railroad
matters and conditions as a man who has been in the business of man
aging milroads for years. Tho only trouble with the information from
this source is its unreliability. A man once in this business, unless a
failure, is always In it, or at least until Lo gets old enough to be side
tracked. Whilo in the business he is not going to give its inside workings
away, hence tho information from that source is, as a general thing, absolute
ly unreliable.
llore is an exception to tho rule. William W. Whcatley,, who has been in
tho railroad business sinco 187l, occupying all kinds of positions from train-dispatcher
to president, in an address to tho New York Hailroad club not long
ago, upon the subject of allowing railroads to increase thoir ratos, presented
some interesting figures. Ho showed that it had long been tho custom of tho
railroads to issue long timo bonds, so long a time in fact that the material or
improvements made with the monoy aro worn out or outgrown before tho bouts
become due, and that no provisions aro niado for retiring or mooting them at
maturity.
This has resulted in an ever-increasing dobt with no increase in assets. Now
increased Interest charges and piled-np dobt are used ns a basis for a request
for increased froight rates.
Another feature ho called attention to was tho unbusiness like mothods, or
perhaps wo should say, tho "business-liko method" of tho railroad mnnagors.
He showed the oxtortionate prices of monopolies in which many Individuals
prominent In railroad circlos and sometimes tho corporations themselves are tho
Donoficiaries. Ho showed that tho railroads in 11112 paid for conl between
85,000,000 and $100,000,000 in excess of a fair price. Ho also statod that out
of the $120,000,000 paid for steel in 1012, that $225,000,000 of the sum was in
excess of a fair price.
It will bo seen from this that tho Goulds, Rockefellers and tho gang of cor
porate financiers and some of the big railroad companies aro requesting the
government to permit thorn to incrcaso their freight rates, so they can mako
the shippers first and tho consumors finally, pay tho extortionnto prices which
as stool and conl monopolists, they are charging themselves as railroads.
On top of this is tho fact that in tho original construction of tho railroads
tho same extortionnto prices wore paid tho snmo gang tlwt now owns nliko
steel, coal and railroads, and in all the betterments and extensions of these
wilds or systems tho snmo double prices were charged. Now these modest and
diffident gentlemen conic before tho authorities at Washington, and ask not
only that they be permitted to collect interest in the way of high charges on
these double values, for which the public has long ago paid, but are asking
that they be permitted to raise freight rates so the consumer must pay them,
as railroads, double prices for the steel and coal they buy of themselves, as
monopolists in coal and steel.
The "water" paid for by the railroads last year, and which the roads nat
urally recoup from the public amounted, according to tho showing of Mr.
Whcatley, to $325,000,000, and this on coal and steel alone. With even this
sum added to the amount on which the public must pay interest yearly, in in
creased freight rates, it can be seen that the sum the public will have to pay in
ten or twenty years from now will amount to practically confiscation. What
is needed is to have the water squeezed out of every public utility corporation,
and then have its earnings fixed at a fair return on that valuation. When this
is done, and the water is squeezed out, that element will be more abundant
than when "Herod reigned 40 years in Israel."
THE NEW CURRENCY LAW.
THE EVENING TELEGRAM, in an editorial commenting on tho new cur
rency law and the regional bank reserve alalyses the law as follows:
"Banking is a private business engaged in the administration of a
public trust and in a considerable measure in the discharge of a public
function. Its trust accountability is to business. Business dependB upon
its facilitation of exchange, upon its regulation of the flow of money and upon
its control and guidance of credit. Law tends to prevent banking from im
pairing its ability to meet its trust obligations. Law demands the bank re
serve. It established reserve bnnks and central reserve banks, and under its
provisions, money flows from the banks at tho circumference to the banks at
tho center. The troublo has been that in times of stress it will not flow back
again. The reserve banks, and more especially the central reserve banks, are
identified with tho big industrial and commercial interests of the country; they
are in tho very center of lnrge financial activity, altogether too much' of
which is speculative. A catastrophe in speculation or in financial over-activity
produces a shock at the center that is immediately communicated to the en
tiro country. Reserves ceaso to flow in. Demand ensues. Tho system is indi
vidualistic, extremely sensitive, and every institution from tho smallest to the
largest begins to call in its loans, contract its credits aud by a spasm of frig
idity, with just as much money in the country as there was before disturbance
arose, it helps bring on a panic thnt mobilization of the currency would avoid.
"Tho chief aim of tho new lnw is to bring tho bunking interests of tho
country into co-operation, to unionize them as it were, and in that to provide
for that very mobilization, or elasticity of tho currency, of which wo have thus
far been in costly need. The machinery to be providod for this purpose is not
so complex. Regional reserve banks are fo bo established, on tho thoory that
several reservoirs will serve tho country better than one, and on the further
assumption that a number of centers are less liable to the evils of centraliza
tion than one would bo. These banks are to be established by capital subscrip
tions by existent banks in their respective territories. Each bank shall have
nins directors, threo of whom shall be of government selection, the member
banks appointing tho other six. These shall be the reserve institutions of tho
country in their respective regions, supervised by a rcservo board to bo ap
pointed by the president. The government will deposit its funds in these
banks. Momber-hnnks are entitled to share in tho profits of their business up
to 6 per cent, all profit above that, after a surplus of 40 per cent is accumulat
ed anil maintained, to be turned over to the government. From the reserves on
deposit, and from government funds tho reserve bnnks may loan to member
bunks only, or may rediscount their promissory notes on commercial security,
running not longer than ninety days. If the reserve of member-banks and the
government funds are not sufficient to moot the legitimate loan demands of
tho member-banks, tho reserve bank will supply to tho reserve board for re
serve notes, tho issue which is provided for in the new law, tendering there
with on equivalent value of the commercial paper upon which loans have been
mado to tho membor-banks. The process of redemption and liquidation will bo
continuous and rapid, and tho shifting of tho volume of currency, nccording to
regional needs, will bo comparatively easy. Such, in brief, is an outline of the
plan embodied in tho Glass-Owen bill.
"Tho reserve notes do not partake of the nature of inflation currency.
They coustituto a relief currency, the utility of which is measured by the value
of tho commercial paper on which they are loaned. Their service is fitted to
the need which the presentation of that paper makes manifest, and they "do not
go into circulation except to meet that need. They will constitute sound mon
ey, because besides the government's promise to pay, there will be back of
them an equivalent of commercial paper maturing within ninety days; the
credit of the payee; the endorsement of tho member-bank; the balance of the
member-bank 's reserve; the double liability of the stockholders in that bank:
the stock which that bank holds in the reserve bank; the surplus and earning
power of the reserve bank, and finally 33 1-3 per cent of gold reserve.
"The plain and honest intent has been to create a system of banking and
currency that is safe and flexible; to get away from the money monopoly that
we have and to avoid that which we might have. Whether or not these pur
poses will be achieved, we do not undertake to say; but that they are sincerely
attempted, there can be no doubt."
GIRL BEATING HER WAY
FROM EL PASO TO BUTTE:
THE ROUND-UP.
A carload of mail destined for Bak
er, La Grande and Joseph was burned
a few days before Christmas in Wyom
ing. It was loaded with newspapers
and packages, and some one is shy
Christmas presents in consequence.
v
Anyway, Copperfitld did .not get
Sheriff Rand
ing.
in its Christmas stock-
William M. Colvig, of Mcdford. has
been appointed head of the tax and
right of way department of tho South
ern Pacific, to succeed tho late Col. J.
B. Eddy. He begins work with the new
year.
Baker City had during 1913, up to
Christmas, 139 births and only 71
deaths.
Anson Rogers, aged 84, and a pioneer
of Coos county, died at his home on
Coos river Christmas day.
e
A snowstorm that has continued for
a week ended Christinas night at Baker
City. Tho snow is deep and is being
drifted by the high winds so that rail
road traffic may be interfered - with.
The thermometer is down to 10 above.
The British ship Inveraven that
sailed from Callao, Peru, for Astoria
October 4, is so long overdue that it is
feared she is lost.
a
Darius Fish, for 20 years an engin
eer on the S. P., dropped dead on the
streets in Portland Christmas night
while on his way home after passing
tho day with his sister.
The Forest Grove News Times ad
monishes its local redaers to "resolve to
keep 'the Prettiest Town in Oregon'
still prettier in 1914.",
The Beaverton Owl snvs that blank
UNITED PBESS UJ8CD WIBt.
Sacramento, Cal., Dec. 29. Hiding
the brakebeams of box cars in real hobo
fashion, pretty Lucile Adams, aged 23
years, arrived in this city from her
home in El Paso, Texas, bound for
Butte, Mont., where, according to her
story to Matron Phillips, of the Trav
elers' Aid society, she has a position as
stenographer waiting her arrival.
"A girl friend of mine and myself
page which appears in each issue is the 1 our homes in El Paso several weeks
one on which it might be printing its ago to beat our way to Butte, Mont.,"
knocks, but it isn't. J tho girl said. "We dressed as boys and
when we arrived at a city we would re
move the trousers and put on a plain
skirt.
"All went well until we arrived in
Los Angeles, where my companion be
came separated from me. I came to
Sacramento, expectin to locate her."
When she arrived here Miss Adams
wore a flannel shirt, a plain blue skirt
and a boy's cap. After a few hours'
stay hero she resumed her novel jour-nev.
La Grande Observer: Building four
story buildings in La Grande is not such
a heavy task any more. Look how
quickly the Buhnenkamp structure was
built,
e
Juoaquin Miller's spirit having been
reported as hanging around near his old
home on Oakland Heights, the Gresham
Outlook says there should be no diffi
culty in recognizing him, with his long
hair, whiskers and pants in his boots.
JOURNAL WANT ADS. bring results.
E 1
LADD & BUSH, Bankers
T1ANSAOTS A GBNXSAL BANKING BUSINESS. afATBTY
POSIT BOXES. TRAVELERS' CHECKS.
House of
Half Million Bargains
Come and see the biggest wonder in the history of Salem. You will
find in our place the biggest accumulation of articles, from a hairpin to
a threshing machine, ever seen. Feather beds, bed springs, crockery,
dishes, latest style new and second-hand pictures, clothing for men and
women, shoes, suit cases, show cases, vacuum cleaners, books, all kinds
of new and second-hand machinery, construction and all kinds of tools.
Steam and water pumps, gasoline engines. We buy and sell every
thing from a needle to a piece of gold. We pay the highest cash price
for everything. The House of a Half Million Bargains.
H. Steinbock Junk Co.
833 State Street. Salem, Oregon.
Fhone Main 224
And will be kept in full blast until further notice. This tale
will be a genuine clean-up tale, for profits throughout the
big ttore will not be considered. We have done the biggest
business in the history of our store the past year; so if we
OUR BARGAIN WINDOWS TELL THE TALE
COME AND SEE THE LOW PRICES WE QUOTE
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sell goods at cost, and in many cases less, for the month of
January, we don't have to worry. The best and lowest price
you can get in Salem we are ready and willing to beat during
this sale.
1 C A
A
HP1 O 1 OI .
i ne uooas Diacea ror uur mnuaj
Clean-up' Are the Following
Ladies' Suits and Coats, Furs, Dress Skirts, Kimonas, One-Piece Dresses in Silk and Wool, Silk Petticoats, Ladies' Shirt Waists, Sweaters, House Dresses,
Silks and Dress Goods. Odd lots of Hosiery and Underwear for Man, Woman or Child. Men's and Boys' Clothing Odd lots of Millinery Odd lots of
Shoes, Blankets and Comforts. Slightly soiled corsets and hundreds of other great bargains..
See the prices in our windows which is the convincing proof
EXTRA
SPECIAL
Ladies' 12 l-2c fast
black cotton Lose, good
and heavy, 4 pair for
the STORE THAT SAVES YOU MONEY
EXTRA
SPECIAL
Ladies' 75c black Mer
cerized Sateen Petti
coats 25c
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