The herald and news. (Newberry S.C.) 1903-1937, May 13, 1921, Page FIVE, Image 5
r uu<ty, may jo, I
BANKERS TO HELP
COTTON EXPORTS
New York, May 9.?Cooperation in
financing cotton exportation was
promised by important New York
bankers at a meeting today with the
committee of Southen} bankers and
cotton exporters, Eugene Meyer, managing
director of the war finance corporation
declared in a statement tonight.
The committee was formed at
Atlanta recently under the auspices
of the Federal International Banking
company.
"The committee' discussed at
length," Mr. Meyer said, "the details
? offnotivo tVio
OX Lilt; pmil lui Kiaivm^ v ?uv
offer of the war finance corporation
to make advances on cotton under
contract for export in future months.
It was expected that very considerable
advance to exporters or to banks that
are financing exporters would be
made available from the war finance
coloration under this arrangement,
with corresponding relief to Southern
spot markets and "Southern banking
insHt.iit.inns.
"The committee also discussed the
question of sales on credit to European
countries in order that they may
be able to purchase additional
amounts of American products over
and above what they are now able to
buy for cash. * On this question the
meeting had the benefit of consultation
with important New. York bankayc
eno/>i!ili7incr in -fnrpicrn trade. As
wo
surances of strong cooperation were
given by the New York representatives
present at the meeting. No formal
plan of syndic;? e cooperation
was adopted or considered necessary
but it was agreed that this cooperation
will be forthcoming when concrete
export propositions are ready
for consideration.
PHONE SITUATION
STATED, IN DETAIL
(Continued From Page 1.)
made to sho^' substantial profits or
substantial loss, according to the
wishes and purposes' of the controlling
parent corporation. From the
facts in hand,- .we believe that the
Southern Bell Telephone and Telegraph
company in South Carolina
have been charged* excessive fees,
ccmrmssions and licenses'bv the affili
ated apd controlling companies and
that such charges are unwarranted by
sound business practices* Without
such charges, the Southern Bell would
have shown a much larger net profit
in this state and an adequate- return
on its investment.
"The statement ' submitted shows
changes as expense" kret- year- otf repairs
and dfcpjrtc&tpn $n their property
in this state tov,the amount of
$592,000.00. This aiftount in our
opinion can not be substantiated under
a careful analysis of the items
cMarged to this" account. This
amounts to more than, fourteen per
cent, of the total value of the property,
a ratio that in our, opinion is absolutely
unreasonable.
No evidence was submitted to show
the rates of depreciation changes by
them nor was any evidence submitted
to show that depreciation for prior
vears had been' deducted from the
original investment accounts.
The petition of the company stated
that it was necessary, for the company
to have increased rates in order
that it could raise additional money
with which to carry on their business
in this state. We have evidence that
in the same month the Southern Bell
was pleading poverty in South Carolina
it bought common'stock of another
telephone company and paid for
it to the amount of $2,400,000.GO.
We believe that the distribution of
income from long distance toll service
between the Southern Bell ^Telephone
& Telegraph company and their parent
tompany, -the Ameridan Telephone
& Telegraph company, is unfair
to the Southern Bell. The Southern
Bell makes the cOnnertion and performs
the larger part of the service,
but it receives only twenty-five per
cent of gross income for such service
(in no ~case more than 30 cents
per call) and the American parent
company receives seventy-five per
cent. The result is a reduction of
Southern Bell income and apparently
sman revenue irom such scivrco.
Such arrangements as these made it
possible for the American company to
earn last year more than ten per cent
of its capital stock while the Southern
Bell Earned approximately four and
three-quarters per cent on its capital.
A change in the terms of the
contracts between the Southern Bel]
and the other companies slightly more
favorable to the Southern Bell would
have resulted in a net income to them
of five and one-half to six per cent
on their capital stock.
We are informed that the Federal
tflYPs were charged bv the
jiavuiv vv.? v
Southern Bell as a part of their operating
expense. All business mer
know that such a charge against income
is improper as a cost of operating.
.Such a tax represents cost tc
[the stockholders rather than a cost [fig!
'of furnishing service. tat
The statement furnished by the C01
! Southern Bell to the railroad com-1 ths
; mission contained only three items of j
revenue and nine items of expense.1 tes
These lump figures were not ex-jfi
< plained or analyzed and no attempt J car
!was made to show how these gross!
J
figures were arrived at. I tha
The new rates were requested on a j fin;
plant investment figure as of Decern-jail
i'ber 31st, of $5,368,000. Telephone I Lit
[company witnesses testified that the!Soi
'actual value of the property wasjtre
i probably eighty-eight per cent more, j fur
I making a total present value of ap- :dir
proxmiately ten million dollars. Yet j the
the company submitted sworn state- j ing
'ments to the South Carolina tax com-J be
; mission that the value of their prop-j$K
J prtv in this state was only $3,256,- {phc
1000 and were assessed by the com- cos
mission approximately forty-two per J
| cent of that figure or $1,353,000.00. sta
In other words it is apparent that $6(
j they have used one set of figures in
j assessing the public for revenue and "~
| another set for tax assessment by the
j state. And it should be remembered
: that telephone companies are required
to report one hundred per cent
j values and that the tax commission
(assesses only forty-two per cent of
'such values. As one illustration of
the inconsistencies of their 'statements,
it has been discovered that
the telephone company pays tax on a
certain lot in this state on the basis
of $42.00, whereas, the actual value
of the lot is between $4,000 and
j $5,000.
I One of the most serious changes
made by the telephoen company is the!
discontinuance cf direct inter-community
service formerly furnished at
nominal cost and the placing of this
service on a long distance toll basis.
The whole economic and social life
of South Carolina is affected by ihis
change. Communities that were formerly
in constant touch with each
other are now practically cut oiT by
slow and expensive service. The
whole fabric of the business Jife of
[some communities will be changed,
j Instead of quick and easy communication
and the richest development of
j inter-community life, the whole projcess
will be reversed. The telephone
| company estimates that this change
j will produce a small revenue to them
: of $12,600.00 and we estimate that
it wiU cost th(i people of South CarI'olina
in their progress and developjment
hundreds of thouynds Df dollars
a year. Will the people of South
i Carolina submit to an act of any corporation.
however powerful it may be,
that will retard' the progress and development
of the state and our people?
; The* rate increase asked by the telephone
company was not based on
'experience of the past but was basled
on their estimate of increased expenses
in the future. All-of know
| that* commodity prices have declined
| tremendously within the last few
'months. We know that labor costs 1
| have seriously come down and must
'decline further. We also know that
the operations of any company for
the past year or two is no indication
of the ability of a company to earn
fair dividends over a long period of
time. We know further that in the
midst of a financial depression it is
'no time to increase the load of ex
I pense.
Our people, who have suffered
severe losses within the past year,
not only of income but of capital, are
unwilling to guarantee to any man or
set of men an unfailing dividend
through bad times as well as good.
The telephone company has not
(been fair with the people : South
j Carolina. They carried out expensive
and costly propaganda through
1 j-- J.~
the press and by paia agenis ll? d.ua.% |
popular feeling and explained in advance
that the increases sought would
be negligible. They stated that they
were asking for less than a five per
cent return on the:~ investment. And
yet we find that i,.. people of South
Carolina will be forced to carry an
j additional financial burden that will
| easily* reach a half million dollars in
I a year in the near future in order)
| that the northern stockholders of the
'parent company may regularly receive
! their nine per cent dividends. The
(Southern Bell said nothing in advance
J about the discontinuance of direct
- ? ~ ~ ? .1 Knf uruitorl
inter-community scivac uhl,
until the last night of the hearing
shortly before it adjourned and put
it ovsi or. the people of South Carolina.
Will the people submit or will they
seek to establish their rights?
The Telephone Subscribers associa-1
[ tion was formed by representative j
citizens from communities all over J
t South Carolina. The executive com- j
i mittee consists of a representative!
; citizen from each of the seven cono^-occmnal
districts in the state. They
[ are able and determined men. All |
! committeemen and officers are serv- j
ing without pay. However, funds are j
i needed for the employment of ex
perts, accountants, engineers and
- counsel. One dollar per telephone
> will pay the cost of prosecuting this
I I I I I I I II I I I I II II II ?? M JP
ht. Every community is ufrged to
;e immediate action, to form local
Timittees and to raise an amount,
it will equal one dollor per phone, j
..cs meetings are suggested but pro-;
ts will be in vain unless there is a'
ancial backing strong enough toj
ry on this wQrk.
j
Fhe executive committee suggests '
.t local committees conduct their!
' 1 4U..4 i
inciai campaign at ontc aim nun ,
funds raised be- forwarded to the j
>erty Trust company, Columbia,!
ith Carolina, which will act as!
i
asurer, by Friday, May 13. No'
ids will be spent except under the j
ection and upon the approval of |
executive committee. In solicitcontributions,
no person should j
asked to contribute more than j
).00, as the fight is for the tele- j
)ne subesribers as a whole and the
ts should be borne by all.
\ similar fight is going on in other
tes. Louisiana is raising a fund of
),000 and New York City has ap
? ^
???at? ! ?!#
m
T"*1 ?
: & a
Special p
^ T 1(
ery, Ladi
this store
? money.
# MILLINE
a One table of $5+
on s<
$1
V
? $2.00 Georgette
m 1 spe
t $1.4?
,J
One lot Men's c
? all at o
$1.7!
/
A ' * ? OT?
* Children's Slipp
pr
^ Men's Overa
w
1 9
"? BOYS' O
? 50c and
_________
? "
Job lot IV
$s
@ ?
#>
^5^
* Upper Me
propriated approximately the same
amount. We understand that the
rate increase in Alabama has been
thrown into the courts; in Mississippi
the attorney gtyieral has secured
an injunction; in North Carolina, the
commission has not reached a deei-1
sion.
The people of the South have been j
slow to realize the seriousness of this!
new finanicai load that has been im-1
posed upon them. But they are now j
arousing themselves and thev will not!
longer submit to the dictates of a;
monopolistic billion dollar corpora-{
tion . Relief may be had through the
state railroad commission or through
the courts. The interstate commerce
commission might welcome an investigation
or the federal trade commission
might be asked to investigate this ;
gigantic telephone monopoly. Wej
believe, however, that relief in South j
Carolina will be quick and effective j
and that our state railroad commission
will welcome the evidence we
turchases of 5
ies' Ready-to:
in position
Visit this sto
* I
RY SALE ".a
00 to $8.50 Kats
ed, j
l^e a* 'I valu
larh
vo was
V .
. nece
> supj
, assorted colors, Rati
;cial trial
take
? yard bars
mat*
of w
xnd Boys' Shoes, | ^
I bro\
ne price l i
1 j sale
5 pair
L;
blac
ers at the right pric
ice
_ L
row
.lis, sale price saje
8c
V
' blac
t AT ? c
V LKAL.LO
L
98c pair blac
len's Suits $
Hos
1.98
I
B. T. A
tin St.
I
can present t<; show that the public |
has been unjustly dealt with by the n
Bell Telephone company. \ d
The response by the people to this !
call of their committee will determine j
our freedom or our submission.
Signed: Telephone
Subscribers Association.
By A. L. M. Wiggins, president, ^
Hartsville, S. ('.
W. J. Thackstcn, vice presi'1 nt,;
(Jreer.ville, S. ('. j H
C. S. Monteith, secretary, Co'umbia, j
s. c. ' jx
Executive Committee: 1st dis-Jd;
trict, Dr. A. J. Geer, Charleston. j
2nd district, C. F. Riser, Olar. j ?'
3rd district, G. C. Sullivan, An-j?.
derson. j b<
4th district, B. H. Brown, Spartan- J 9
burg, *
5th district, E. I). Blakeney, Cam- f,
den. Ji
6th district, D. D. McColl, Ben- }
nettsville. * ^
7th district, W. B. West, Columbia. jr
inc In ,
fmu in *
? AT*
I
awhbga?jaaj i n 11 iiibi hi hi? ii ii mi i mi
Hw C\fM
/II WCj 1^1 J
Wear and Ge
to give you
?, 1
TC UllCU UUiin
SALE OF HOSIERY
11 hosiery, white and col
is cn sale at this time, 1
es in white hose are parti
j notable. White footws
never more popular wh
sssitates having a generc
>Iy of hosiery to mat
ler than be bothered with 1
c nf a tlinrf simnlv. whv J
o WA V*. rr-^ 7 ^
t advantage of these gr<
^ains and be generous in 1
ter of a comfortable sup]
hite hose.
adies' white, black a
vn Silk Hose, $1.50 vali
price
98c
adies' lace striped Silk He
1 * r* a 1
k only, $l.DU vamesj *>
e
98c
adies5 white and black j
stripe Silk Hose, $2 vali
price
$1.69
ery special in Silk He
:k only, value $3; sale pri<
A 4 /\ N
adies' Silk Lace Hose
:k; special
$1.25,
1.00 Black and White ?
e, sale price
50c
???gr: 11 ipowc- ?i
ik Tr\nnr?AiVT n _
JNUHKOun, rroj
Sign at an Allentown, I'ennsylva-I
ia, eating house during -he economy
ays:
SAVE THE SUGAR
STIR LIKE HELL
-11*1' rtnv'T 1IIVI) TIIV VMIQV I
V\ L 17V7?N 1 JI l.> 1 / l 11 u ?> v/ikj ii *
I
NOTICE OF SALE
f $400,000 Newberry County, South '
Carciina, Highway and Bridge'
Bonds.
Sealed bids will be received by the l
ighway Commission of Xewberry
>unty, at the office of the Highway
ommission of New jerry county, in
ewberry, South Carolina, until Friay,
May 20, 1021, at 12 o'clock,
[>on, when they will be publicly
pened, for the purchase of not less
lan par and accrued interest of
400,000 coupon highway and bridge
ands of Ne\Vberry county, boutn j
arolina, in -the denomination of j
1000.00 each, dated June 1, 1921. j
ids shall be made both for bonds ma-:
ning serially, $16,000 of bonds on}
jne 1st in each of the years 1922 to .
)4f>, inclusive, and Coi bonds matur!g
serially, $10,000 of bonds on June |
5t in each of the years 1922 to 1961,
iclusive, and bearing interest at a
A11 O
ods, Clothing
nts' Furnishii
? ?
big values
g this sale.
LADIES' S
or
iiiuvru
cu" i cial prices
jar
ich $1.98 to
JUS
ch. ????^
10|. J. & P. Coats !
eat
the 5<
piy ____________
.nd $2.50 Taffeta J
je;
$1.!
?se,
ale LADIES'
in all the new st
\rue;
$3.98 to
>se, 20c Heavi
:e
12 l-2c
$2.50 Crepe de
iilk colors, spe
$1.50
awHaras^
prietor.
Newfc
rate noi exceeding six per cent per
annum, payable semi-annually, on
June 1st and December 1st. Principal
and interest will be payable in the
City of New York.
Bids must be accompanied by a
certified check or checks, drawn, upon
an incorporated bank or trust eompany,
fot 2 per cent of the par value
of the bonds bid for, payable to the
order of (.he Countv Treasurer of
*-? ' ?- -1 u,.
Newberry county. i>ias snoum ut ?< dressed
to the undersigned and enclosed
in a sealed envelope marked
"Bids for Bonds."
The bonds wiil be approved as to
legality by Messrs. Reed, Dougherty
& Hoyt, l.j William street, New York
City, whose favorable opinion will be
c rm>v>hn<;pr without
i Ui iiisiiiru LU luv wn. ----charge.
The bonds will be prepared at the
expense of the Highway Commission
of Newberry county, and will be delivered
to the purchaser in New York
City as soon as they can be prepared..
The right is reserved to reject any
and all bids.
H. C. HOLLOWAY,
Clerk Highway Commission of Newborn:
Countv.
5-10-3t.
_
m* mmmi
HKrasnsnsm ^
[, Miilin
tigs puts
for your
?& -i'r;
ift
I IDDCDQ 7 V
1_.1I X JUiVvJ A
s, Whites; spe
. $7.50 J
Spool Thread ?
? ? ?
jilk, sale price ^
50
SKIRTS
yles, sale price
$12.50 ?
j Dipviot
: yard
Chine, assorted
:cial price $
yard
___
__
9
jerry, b. L.