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fi at. WAR TAX DROPS TT n nmnriT ism imm UX VI Ll I H Pi Pi I I J V! LI II Pi WT I TO $137,532,377 1918 Gross Nearly 2 Billions, but Government Levies Take $297,645,045. SURPLUS IS 828,985,350 Revenue Eclipses Record, But Bate on Shares Declines From 339.1 5 to 822.10. With sTroofl revenue for iia at tias I record figure of nwtrly S2.000.000.000 the United States Steel Corporation ' I report for 1918 ahowa net earnings after all charges, taxes, Interest, Ac ot $17,522,877, or at tho rate of $22.10 a, share on tho 5508,302,000 common ntock after the deduction ot dividends on the preferred. This compares with net earnings of $224,219,564, or $39. on tho common stock. In tho preceding year, and represents a decline of duo. largely to heavy Increases in operating costs and Federal taxes. The total amount set aside for taxes for 191S reached ho tromendouj sum ot $297,645,048, of which $274,277,835 la represented In the reserve for Federal Income, war profits and excess profits taxes, and the balanco for regular taxes. In 1917 the total taxes provided (or were $252,265,695, of which amount $233,465,435 was for account of Federal taxes. Another Item which resulted In r largo cut In net earnings despite heavily Increased business was that ot wages, which Increased more than $100,000,000 from $347,370,400 In 1917 to $452,663,524 In the year Just ended. The net earnings of the Steel Cor- poration and Its subsidiaries for ithe Tear, after provision for all taxes, but before charges for Interest, deprecia- tion, replacement. &c, totalled $208.-381.10- 4. a decline of $91,880,367 from the 1917 figures. There was a drop of more than ten million dollars In the amount set aside for depreciation, ex- traordinary replacement and rlnklng funds than tn the preceding year, while the amount paid In dividends on the common stock was lees by $20,332,100. An additional allowance for amortisa- tion tn the amount ot $12,215,000 brings the surplus for the ytar down to 0. which compares with $33,505,-43- 7, a decline of $23,570,087. nerelatlon In Balance Sheet. The report Is a revelation, however. In the matter of Its balance sheet, which llsclo'ses-\- & net worktnsr capital at the end of 1918 of 14S5,J54,&3, or about 1S6.S a \stjare on the common stock. This compares with a working capital of I4S9.S45.814 at tho close of 1917 and I40S.208.4S7 at the end of 1916. Ths balaivce sheet shows total assets and liabilities of S2.S71.617.17S; aa aeainst 2, 449,550,306 on December tl, 1917. Current diets total S8S3.138.0S1, as asalnst S799.987.397 the year before, and current liabilities at the end of ISIS were S397,7S1,482. as compared with IS40.3S1.5S2 the preceding year. Following Is \a. table \of the-ali- ent features of the comparative- Income ac- count for 191S with net chanso from the 1917 figures: U.L Chanres. Eirnlrura before chart- ing lntwrt oa boniti and taortx&tft ot m imprest on bonds and mnrtiuM ot the subsidiary compaa- - iea S.SZ9.C24 In. 41.ia Iti charsea a\l al- lowances tor depre- cation applied as fallows, vis.: To depredation and extraordinary re- placement funds and rlnktor funds of aabaidlary com- - (isnles tJ.117.rM Oee.16.ltMO To etntdnx funds on U. 9. Stenl Corporation bonds 7.81,CS Irxs. JU.trj STet 1 Dooms tn the rear li.t31.B5 Dec. tl.137.0S: Zdut Interest ou U. 8. Steal Corpora- tion bonds oul- - startilnr .t is.rn.ilJ IHe. 135,114 pednot premium paid on bonds redeemed, rts.: On subsidiary com- panies' bond T0.1t$ Dee. 7; On V. S. 8tee! Cor poration bond... 7n.ll Inc. run Palance IU.M1.X3 Dec S6.:tS,SU sundry chsrres and credits. lnciudlnc . adlustments . . . ot rsr- - .MM. T ft\ M. ilslsnce U7,ttt77 Dec M.SiOn ptrldends on u. o 1 Steel stocks. Til.: Prefsrred T.l 3,n,frr ' Oocnmon (1)12. reru-U- r 1. extra ; lirt. leralar 1. extra U) 71.iei.iM Dee. W.8M.1M iaisnca u,iw,no xw.'Md,h deductions as follow: Additional allowance to oover amortlra- - tlon of part cost of faculties In- stalled for produc- tion of articles ooctribntinr to prosecution of war li.MS.OOo Inc. 1J4H.M0 Appropnstea en ac- count of expendi- tures for addition- al property, new plants and con- struction ...... Deo. u.ooo.wo Stalanes to undivided ..rmlns m.ms.M) Dec,, ajpn,m Kevr Tlecord. Marie for Gross, Although the gross revenue ot the rteel Corporation during 191s was well that of the Dreceedlnr year, the Report shows that \the operations as rep- - resented by production and shipment of Al not nn rha .trhnl. r.arh - - ' v totals for 1917.\ This 1b explained by the atatement further along In the report (hat . \the prices received for all prod- - - h ...-- . .hkii- - Ef,i tSnMier Tw. Jnm.wht w.r Lroducts brought the corporation's grot up to the new record mark of fjvenue an Increase of moro than leo.ooQ.ooo over me jujy ngures. The production figures as set forth In the report chow a decrease In the total traduction from mines and factories, ron or mined was lower by 10.9 per lent. ; limestone quarried by 20.8 per nt ; steel Ingots manufactured bj 3.S er cent-- ; rolled arid other finished steel products manufactured for sale by 7,3 ier cent and cement manufactured by I.S per cent There were Increases In he production of coal mined, .8 per ent; coke manufactul-ed- . 1.7 per cent., ind pig Iron, ferro and splegel manufac-ere- d, l.S per cent. More than $19,583,000 tons of steel were produced 'during the year, (rhlle the output of finished steel prod-kc- tl aggregated 13.849,483 tons. .Under fontract, with the Emergency- - lrieet Cor- poration thtrs rers completed and de Mvtrtd from the shipbuilding plants ot the subsidiary companies, three 9,800 ton Msangolns vessel, and the close of ycar.ava additional steamships bad Stan launnlinl and .were rapid 1 Baal eoiatietloa, aa4 fourtse attamthlps ware on the ship wars In various degrees of construction. I Price Ave race la Smaller. In explaining the. smaller average, of rices received for all IMS. th. reports eays that ...A.r from the fact that the prices receded durlns the first half of 1P17, larcely for de- liveries on contracts entered r!nr to 1917, wero considerably below the price which prevailed after the entrance of the United States Into the war. The prices received In 1918, generally fpeak-In- c were, after conferences wljh repre- sentatives of tne Iron and steel Industry, determined by the United fitttcs War Industries Hoard and ppproved by the President of the, United States, althoUKh considerable tonnage, e.rpejlall? for the railroads, was delivered on contracts entered early In 1917, and prior thereto. In many Instances at prices considerably lower than the maximum established by the Government. \The tonnage of the unfilled orders of the subsidiary companies at Decem- ber 31, ISM, waa 7.S79.152 tons of rolled eteel products. In comparison with a total of 9,381,718 tons at the cIojo of 1917. Itecause of the action of the United States Government concerning the disposition and usi tf teel products there was naturally a relatively smaii .,, , tnn,mrA, t,nvin- - rfnrine- - 1918. sincj the tlimlng- of tho armistice there ht\ bn steady and rood demand for deliveries of steel on then existing con- - tract3 an(J onlers. Bj,0 the booklnts of new business have been oulte up to what could be expected under pre Xearly Half Dllllon In M'aaes. The averaire numtoer of employees In the. service of all companies during ths year was 268,710 and the total fcAl&Kes and waavis paid was $452,463,624. The Inereate In wages allowed during the year is shown In the flguresfor whereas there wss an Increase of only 652 In th average number of employees over the 1917 figures, tho 1918 salary nnd wage list exceeded that of the preceedlng year by $103,293,124. The average sal- ary or wage paid per employee per day, Ineludlngjhe general administrative and selling force, the report shows, was 15.38 In 1918, as against $4.16 In th previous year, an Increase of more than SI per day for, every man employed by the corporation. In this connection the report says: \During 1918 three general advances were made In wage rates of employees of the subsidiary manufacturing and Iron fining companies. On April 16 an advance of IS per cent, and on August 1 an Increase of 10T per cent was made In common labor rates, tha rates for other classes of employees tietng advanced relatively. On October 1 the plants of the subsidiary manufacturing companies were placed on the basic eight hour day, with time and one-ha- lf paid .for over- time. This was equivalent to an average Increase In wage rates of nbout 10 per cent, alnco tho employees generally con- tinued to wort: thj samo number of hours as previously.\ The military necessities of the. United Htates and Its allies could not have been adequately provided, the report declares, \except for the existence of highly In- tegrated unlte-wl- th large capacity for the production and transportation of steel products and their perfection of organization, evstsin. Improvements and methods, together with the Incidental working capital, which rermltted Im- mediate extensions, additions, diversifica- tions whenever requested or evidently desirable.\- - From the start of the world war on August 1, 1914, to the end of 1918, the corporation shipped to the United States Government, the Allies and the Railroad Administration for war purposes a total of 18,439,460 tons of steel of all kinds. In Many Lines of War AVorli. The corporation was alto very promi nent In other lines of war work. It took nn important part In the manufac- ture of gas masks, steel sheets for hel- mets, special railway mounts for guns, mortar shells, gas shells, mortars, &c More than 200 officials and employees got leaves of absence to tike up work In departments, tommlsslons. Red Cross and similar work, while 84,407 employ ees entered the active military and naval service. Seven ocean going steamers owned by the corporation were turned over to tho Government besides five of its great lakes fieet and one tug. The Shipping Eoard was permitted to utilize the corporation's entire fleet on tho great lakes In training naval reserves. The entire warehouse property ot the corporation In San Francisco was turned over to the Navy Department \In May, 1913, the report rays, \the corporation entered into a contract with the United States at the solicitation of the Secretary of War to construct for the Government a large plant for the complete manufacture of heavy twelve Inch to eighteen Inch guns and of pro- jectiles for such guns. The plant wait designed to manufacture tho guns and projectiles complete from tho furnishing of pig Iron and steel to the final finished products. The contract provided that the corporation should take entire charge of the designing and construction of tho plant subject to- - the approval of gen-or- al plana by the Secretary of War, an,d that It should bo reimbursed for only the exact cost of outlays made directly for the work, which. In accordance with the offer of the corporation. Included no compensation for the sen-Ice- s of Its officials,! expei ta or Its general organi- sation In supervising the work, nor for Interest upon considerable sums ad- vanced for the payment of labor, mate- rial and other construction expendi- tures.\ Millions In Patriotic Loans. Prior tp the entry of the United States Into the 'war the corporation purchased an aggregate of $84,673,000 ot. various loans Issued by the Allies, and since April, 1917, has bought $15,117,400 addi- tional. Besides this the corporation and Its subsidiary companies subscribed for and purchased Liberty bonds of the four Liberty Loans totalling $127,950,000. Of this amount $97,134,900 Is still held, the remainder having been taken by em- ployees of 'the corporation. In addition the corporation has purchased from time to lime-treisu- ry certificates of infiebWC nesa nf a net acrree-at- e amount of 3362. 240,609. Subscriptlona between April 1 1317, and December 1. 1918, to various funds' for war purpose raised by tho Red Cross. T. M. C. A. and kindred or- ganizations totalled and once . . ?w \ f\ s Sl.-l I Jt aaw.. - ,1.aIu4 a. \ 'IJl' , 7v2Yaai I f\8.8 \1.\,. I tl0.Sl .nnT. i Is a Increase In the inventories of manufacturing and op - I ?SvnrA!in MnraS net work. Ac,\ the report saye, \for all the subsidiary com panies, after allowing credit lor reserve of 151. \SO 603 for account of actual cost or market value of Inventory stocks In eicess of normal prices therefor, equalled at December 31, 1918, the sum ot $274,873,600, an Increase ot $51,083,-S- I 4 In comparison with the total at the close of preceding' year. \Inventory values before allowing for credit for the reserve above mentioned are on the basis of actual purchase or production oost ot materials to the re spective sube Mtary companies holding the tame (unless sucn cost was above the market value on December, 191S, In which cate the market price was utedl except that In respect of such commod ities In stock at tne cloee of the year as had be-e- purchased by one subsidiary company frors another there has been ex- cluded the approximate amount ot profits in sucn aaiea price wnicn had accrued to the subsidiaries telling ths tame or furnttlilng tervlce tn connection there, with. These profits are not carried Into tha currently reported earnings of the en. tlx organisation until converted into 'cash or a cash asset to It Accordingly, In the combined assets for all oMhe com- panies, the inventories of those materials and product on hand which have been charges that Clarencs IT. Mac- kay and the Other officers of the Postal were removed by the Postmaster-- I General a week ago because they refused to In of telegraph rtttBS by Office De- - transferred and sold from one suhsldtary comPan- - t0 Bnol,\r- - M crrlJ at ntt lvalues which are substantially the pro- - auction .cost to the respective subsidiary companies furntehlng the same. Summary f 'Year's Operations, Following Is n summary of the oper ations of the United Stalts Elel Corpo- ration slnre Its organisation In 1901, as set forth In the report': Capital fnrpliu prortded at date ef era!\tlra tJS.ew.WO.O Artrwts lift profits as bot..Jl,K,4;,in.;t Ltrt, traouDt In- - elded uinrtn to I. n, IK, rep rfMMIng scriund pnflts on Inter romj)-i- 7 mite- - rltls en bind In tnrentnrlo :o,l,lo:.:3 Xt cntrc ttlr.it prcflL retde it f r. sot trrltal tl,- - to uarllmlsr enirtem r n IJ.WJ.Wl.N ItMerrel for fnnd to corrr poH.U'le fl1-- to rrtllc tilT-ie- tnlnlrj roraltlei 7,fl.CM.t I .\' n!.w of trvTlta ji,3,m.M7.M Tout .li.Mi.Mi.6t.. rlTlSvd pld en O. i;. itock, Steel Corpori-tln- n , j rre ferred, U4( per rent Common, 14H per CCttt 4D,4K,Ttr. MO, ',..!! I Leartnt a stirplt ef 74T B3.M4.S3 ' Of tb foirtotni turclus there hit spproprlnted for payment of rapiul etpedtturw tnd sjs-cl- rhsrr-- t J0.4tt.2i.t6 !!! ef nurplui Dfeemter It 1911. eiclalt of profits etmnS by aubiMUrr compsnlft on y ttlot ot prod- - tet on hend tn InTentorlM. .. $4,MI,4I1.M The undivided surplus of the corpora- tion and subsidiary companies since April. 1201, is Bhown In the. report as follows: surplus er wortUnr rapttal pro- - tided in OTSnltion S,0M,9M. Bsliive ot eurpius sccumuUled by all compsnJos from April 1. to DweaibM- - 11. HIT, of aubstdi&rr oom- - Interconipaay profits In rianlea' per annual report for rear HIT , ,fcJ,K.a Add. for tti following Itan-i- , via. : Adiuttmant of prertona yra allowances lor oepreciauon and for civdlta not applicable to Hit operations 6crpln at J&nuarr 1. His. ot snndry eube'.dlary cotnptn'ta whoae d:t ailed accounts h r.ot previously been included In thla report t,uurs.a Bnrplua net I r come In the year :il, aa abore M.fW.SEO.tS Total undlrldwj surplus Decem- ber SI, 1MJ. exclunlve o! profits rnl by aubalillary companits en Intercompany aalea of prodjeta ou hand in Inventories J .HM.tU.CLtt APRIL GRAND JURY TO HEAR RENT CASE Dooling Finishes Inquiry Into Inngliorne Lease In- validations. Lloyd Wlilis. chairman of the Ing-horn- e tenants' committee which Is fight- ing the efforts of the owners of tho apartment houte at S60 Riverside drive to Invalidate the existing leases and raise rents, announced yesterday that the committee had voted unanimously to rfecept the propo8al-ma- 4 by the owners If an Investigation shows that the carrying charges can be met under cooperative ownership. The committee, however, refused to entertain any suggestion of compromise In the legal actions which have alreadv been commenced against tho Bcrgmlll Holding Corporation, the present owner of property, and will consider the rale of the house to tho tenants as pro- posed by the owners simply as a busi- ness proposition. The order granted by Jurtice Cohalan requiring the owners to show cause why the foreclosure pro- ceedings should not be set aside and the property turned back to the Winters Realty Company, which formerly h'.ld the title. Is returnable this morning before Justice Henry D. Hotchkles, In Part 1. special term of the Suprome Court Meanwhile John T. Dooming. Assistant District Attorney, has been com- pleting .his Investigation of the foreclosure sale which Is alleged to have Invalidated the leases on the and the Information which he has acquired will be placed In the hands of the April Grand, Jurj-- . Mr. Willis was emphatic yesterday In his statement that there would be abto-lutel- y no compromise tn tho actions al- ready started by the tenants and that the matter would be carried to thchlgh-es- t courts If necessary. The property, he said. Is heavily mortgaged and the amount of ready cash necesrarjr to carry out the transfer of the building to the tenants Is relatively small. Their ac- ceptance of the offer depends entirely on the Investigation which will begin to- day as to details of the mortgagos and the amount of the carrying charges. \We are making this fight for all tho tenants In New York,\ Mr. Willis said yesterday, \not only tenants of apartment houses but thoee ot business properties as If under color of foreclosure proceedings leases can be Invalidated at the will of landlords and tenants left without legal protection then the man who pays the lowest rent In the city of Now Tork and who can least afford to move Is Just as Insecure In his rights as we were and without knowing It\ DINNER FOR LORD READING. Snnr MSxai IsjTlted A Event Ar ranged for Next Saturday. A dinner to the Earl of Reading, who In here for a short time for comple- tion ot his mission as Rrltlsh High Commissioner and Ambassador, to be held Saturday evening at the Wa'.dorf-Attorl- a. will provide the occasion for the largest gathering ot Judges assem- bled In thts city since the centenary of tho establishment of the United States Supreme Court. Rllhu Root dean of tho New Tork bar, and Arthur P. Bugg, Mr\1\ Justice of tho Court of Massachusetts, will be among the speak- - john u. MllDurn, presicent of the Bar iVsioctatlon. will .preside. Invitations have been extended to Federal Judges and Judges of the State Appellate court of New Tork and neighboring States. Ambassador Read- ing will shortly resume his duties as Lord Chief Justice-o- f England. ORDER GINGER ALE ,1 \i -- THE SUN, MONDAY, MARCH 31, 1919. PREDICTS HIGHER TELEPHONE RATES \Postal Telefrraph,\ Mackay Orffnii, Assci-t- s IJurlcson Plans Further Boost. ' \WARNING TO THE TUBLIC Scheme Is Dcclnrcd to Bo Most Flagrant of All War i Scandals. Prediction that Postmaster-Gener- al Burleson will Incrcare all local telephone rates In order to Increase the revenues of the Hell Telephona Company $30,- - ooo.ooo for tho year, is made In an article lr Postal I'clecraph. the Mackay companys organ, for April. The article acquiesce the Increase announced the Post the property the the well. the Supreme partmont on Saturday It further declares that the Tost- - master-Gener- kr.ex all along that he would Increase rates and not lower them as he announced when ho took over tho wire companies, that his alleged de- - creaoq of telphone long dletanee rales In January wan In fact an Increase, and that the whole programme cf Increases Is an effort on the part of the Bell Company through the Tost Office De- partment to \put over\ chargrn which ll could not or Itself cstabiisn aa Justified before the various Publlo Ser vice Commissions to tho control of which the company was subjected. The article says tho effort ot Mr. Rurleson to continue the control of the wires for two years Is merely to cover this attempted ralie and to establish It for the Bell Company, which 'wul reap thereby a golden harvest.\ Warning- - to the Pnhlln. \Unless tha lines are turned back telephone rates are going to be Increased by Burleson until he makes up that $30,000,900. and tha sooner tho public gets busy to fonstill this movo the bet- ter,\ the article concludes. \The whole wire control arrangement has eeveloped Into a glgantla Job, whereby the Ameri can Telephone ft Telegraph company has been and will be enabled la exploit the publlo through the medium of the Post Office Department Of all the war scandals this is the most flagrant be cause the money Is taken direct from Ithe pockets of the, people.\ \The followlne. then. Is what the Bell oompany has gotten out of tho people of the United elates through its contract with Mr. Burleson \An annual compensation of $65,149,- - 641, which la more than the Bell com- pany coukl have earned had It kept Its lines. \Sixteen million dollars' Take off from the subsidiary companies, repre seating 4 per cent of the gross re- ceipts of the latter. This payment has been denounced by the Publlo Service Commissions. \All Interest expenses, depreciations and taxes to be raid by the Government \Tolephons rates will be Increased $80,000,000, all to come out or the pock eta of the telephone users of this coun tn-- . \And on the return of Its line the Bell company will have rates eetabllshed by order of Mr. Burleson which it never could have put across Itself and which will yield a golden harvest to Its ex checquer. Truly, Mr. Burleson has done much for the Bell company \Mr. Vail, In lit annual report of the B'll Telephone Company, aleo discussed the theory that the day for competition in the telephone and telegraph service has parsed. The same thought was ut tsred by Mr. Burleson before the Houe Committee on Postoffice and Post Roads on January 59, 1919, when he said : \ 'Competition nhould be eliminated. The period for competition Is passed.\ \Here you have two minds with but a Ingle thought, and two hearts that beat as one. Senator Sherman put It aptly In his speech before the United States Sen- ate on March 4. 1919, when he said: \It seems aa If the two (Burleson and Vail) connect theiradvice tnd conduct that one Is accomplishing what the other desires.'\ Itell Company' Annual Ttepnrt The roitai Telerrapb bates Its charges on the Just Issued annual re port or the Bell Telephone company pLUTO elimi-nat- es poison from intestines, from the kidneys and through the blood an ideal remedy for gout. Also beneficial in treat- ment of other kidney, liver and stomach troubles, rheumatism and nervous dis- orders. Bottled at French Lick Springs and for sale at all drug stores, hot, clubs and on trains. L6rga BotiU 45c Smallir BottU 20c French Lick Springs Hotel Co. French Lick, Ind. (itn It says that while the compensation to be patd to the Postal company was de- termined, by the value of the company's Investment anything but that process wat followed In th cate of the larger concern. The annual report of the Bell oompany Is quoted showing that the first five months of operation under Government control netted a less of nearly $4,000,000. But the estimate presented by the Bell company to the Government before Its compensation wss arrived at showed a prospective profit to the Government of $12,477,300. The article continues: \This estimate for 1919, showing a profit of $12,477,300, was conditional on the Government lncreatlng the telephone rotes by $80,773,000. The Bell eom-tany- 's annual report In discussing thett estimates states as follows: \'The extraordinary rapidity of the Increase in wages and In oost of ma- terial, at noted eliewliere, could not be met by the economies tn operation. To provide revenue against them a cam- paign of readjustment of rates had been otarted during 1917. which was well unaer way when the properties ware taken over. The necessity of continuing this campaign and Its effect upon our ettlme.tea ware fully set forth and In- cluded In our estimates for the latt five months of 1918 and for the year 1919, of which the experts In economics made etudlet and analyses and submitted them to the Postmsrter-Goneral- ,' , \In other words, the campatrn for In creased telephone rates Inaugurated by the Bell company before Its lines were taken over by Mr. Burleson was to be continued by the latter In behalf ot the Bell Telephone Company, the power of the rostmastor-Oener- al being relied on to do what the Bell company had difficulty in doing. Bays Anion Belles Talk. \Ho knew that the Bell Telshon Cf.m- - par.y'n Increasing of rates wan resented by the Public Service Commissions and the public because those Increased rates wero not Justified. He was talking rates, but he knew while he was talking that he was going to Increase the rates. In December, 1918, he an nounced a new schedule of long distance telephone rates as a reduction, but which turned out to be a very substantial In- crease, and he knew that they were 'an Increase when he announced them as a reduction. 'These Increased rates were all In the toll or long distance telephone rates, and tccordlng to th Bell company own report that company does 96 per cent of nil the toll or long distance telephone business of the United States. What part of the $80,000,000 rate Increase to which Mr. Burleson Is committed was Involved In this Increased rate announce- ment of December last cannot be ascer tained, but In any event If those In creased rates do not make up the 10.- - 600,000 he is committed to an Increase in the telephone rates during the year 1919 which will Increase the telephone retenues by such $30,000,000, and there- - fare there will be mare increases to come, and they are coming, because Theodore N. Vail say In his report, Jus pub- lished, that telephone rates should be Increased during 1919 by 13 per cent. and what Vail says goes with Burleson. \In January, 1919, three of tne four members of the wire committee, namely. Burleson, Lamar and Koons, appeared before the House Committee on the Post a al . Office and Post Roads In support of the Moon resolution, providing for an Indefinite extension of Government control. (This retolutlon was later re- jected by the committee.) The burden of tho testimony of the wire tommlttea wi that the Independent telephone com- panies needed further Government tup-por- t, and that It would work harm to them to releate the Governme.nt control Inside of two years. Whon they testified to that effect they knew that what they really wanted was an extension In the Interest of the American Telephone and Telegraph Company. In order that they would have sufficient time to put across this $30,000,000 Increase In telephone rates beforo they turned the lines back.\ Hitler Over Commission, The report Is particularly bitter over the allowance by the Post Office Depart- ment to the Bell company of the 4 14 per eeot commltslon which It Has collected from Its subsidiary companies as A charge for engineering and other services nnd for the use .of Instruments, a charge which has been denounced by a number of Publlo Service Commissions, ithlch have Investigated It, es excessive and a rcheme for tho diversion of profits to the parent company. The article quotes a decision of the New York Ihjbllc Service Commission on thts charge as follows : \It Is certainly, on this estimate, proper to aseert that any payment above 76 cents by the New Tori: company to the American Bell Telephone Company, both of which ara owned by the Ameri- can Telephone and Telegraph Comrany, Is a mere means of diverting profits from the local to the parent company. The New Tork commission figured out that the New Tork Telephone Company was paying the American Telephone Com- pany, under this rental charge, $2.49 per Instrument whllo a proper charge would be 75 cents.'' Te artlclo continues: \In spite of the nbove decinions by Public Service Commissions, after In- vestigation, that this charge of 4H per cent, levied by the American Telephone and Telegraph Company on Its- sub- sidiary companies Is r exorbitant. Post- - naster-Gener- Burleson continued that payment to the American Telephone and Telegraph Company. Assuming that the figures of the New Tork Public Service Commission are correct Mr. Burleson overpaid the American Telephone and Telegraph Company $11,200,000 per an lum on this one tem alone. \This S3tf,000.000 rate increase which Mr. Burleson committed himself to ex tlalna In large measure why he la hold-n- g on to the telephone and telegraph Ines despite the publlo clamor for their eturn to the companies. 'Burleson won't ct go until he puts across thii S30.000, 00 rate increase for the Bell, and Theo-- pore N. Vail. In its annual report for the Bell company Just Issued, Is urging a 12 per cent Increase In telephone rates dur- - ng 9. So here you have It. \Vull Is urging It and Burleson has ut some of It over by his Increase In the ong distance telephone rats In January (whtca he announced aa a reduction) and the balance of the 324.000,000 we are reliably Informed, Is to be made by an Increase In the rates for ocal exchange telephones. Just as soon bs the Supreme Court passes on his right o Increase Intrastate telephone rates. hich Is being contested by tho Public Jervlce Commissions throughout the ountry. 7 YourNose Tobacco yO by MORE YORKERS WIN SERVICE CROSS Lient. Winant and Privates Elicky and Lucia Decorated for Gallantry in Action. The Distinguished Service Cross has been awarded thres more New Torkers for extraordinary gallantry In action. They are Lieut. Frederick Winant, Jr., Thirtieth Infantry, ot 48 East Ftftiefi street; Private Frank Eliclcy. Tenth Field Artillery, of 338 East Seventy-thir- d street, and Private Harry A. Lu- cia, Fourth Infantry, of 849 Linden street Brooklyn. Lieut Winant In action at Mezy, France, while In command of the Stokes mortar platoon of his regiment at the of the enemy attack on July ID, 1918, saw nil but two of his guns blown out of thctr pits. Changing the location of these two remaining mortars he con tinued to fire on tha Germans as they crowed ths Marne until forced to retire with h,ls men. numbering about twenty. He ther assisted In holding back the forces of tho enemy, which was deliver ing a punishing fire on three stdeo. Ha received two tevere wounds, but re mained on d.uty dosplte the hardship and sunerins. Private Ellcky. in action near Greyes Farm, France, July IF, 1913, responded to a call for volunteers and with eight olhern manned two guns of n French battery which had been abandoned by the French after a tevcre enemy fire hud Inflicted a great number of casual- ties on th.lr forces. For two hours Pri-va- to Ellcky remained at his post pour- ing a disheartening flro Into the enemy ranks. Private Lucia receives the crois for volunteering: to carry a messa3o through an extremely heavy barrage nar Le Charmel, France, July 25, 1918, after several other rtlnners had reported that they could not get through. Ho suc ceeded In weathering the storm of fire and delivered the message. Others who are to receive the Dis- tinguish Service Croso are Capt Robert Vallols, French army: Lieut. James II. Gay. Germantown, Ta. : Llout. Emory St. George. .Plymouth. Mass. ; Lieut. Al-d- C. Perrlnglon. Haydonville, Main. ; Lieut Harold W. Batcholder. Harrtwlck Vt; Sergeant Frank M. Tracy, Rosei, Utah: Corporal John J. Glbney, Tuesn, Ariz.; Private Chauncey M. Griffith. Arnery, Wis. : Private Lafayette Bnvjn- - gardt. ninfield. Mo.: Piivate Elmer V, Rice, Elkton. Mich, and Private Tony P.ircdics, Barra, Italy. Cop Hart In Fall From Anto. In a fall from a moving automobile which lie lioardeu to reach a lire at 681 First avenue, yesterday Patrolman Jer- emiah O'Connor of tho Eont Thirty- fifth stret station was seriously bruised. It Is believed his skull was fractured. He was taken to his home, 214 East Thlrty-flft- li street In an ambulance from Bellevue Hospital. Hare yoa tried Tuxedo in the New Tea Foil Packajje? It ka nany advantages Haadier fit tie pocket No 9 digging the tobacco out with the fingers: Keeps the pore fragrance of Tuxedo to the last pipeful. Not quite as much tobacco as in the tin, bat 10c Knows1 Pipe and Cigarette TVtr TTl? TVf ' Rub a little Tuxedo briskly in lljL the palm ofyour hand to bring out iu full aroma. Then smell it deep its delicious, pure fragranco will convince you. Try this test with cny other tobacco and wc will let Tuxedo stand or fall on your judgment ., \Your Nose Knows\ Finest Burley Tobacco Mellow-age- d till Perfect 4\ a Dash of Chocolate 0uxecLo The Perfect for Guaranteed NEW beginning Attractions are Prtwis iXSZyK Qaallty Itrrtce. Uarald fiqnar. Broadway, Kth to JJth Ot. Wo Sell Dependable Merchandise at Price Lower Than Ann Other Store,butforCath Only. Store Opens9 rOOA.M. and Clcces 5:30 P.M. That Extra Hour of daylight is what Mr. Tired Business Man has wanted all the lone insipid win- ter Of work-a-day- s. Now, if fortunate enough to live near the links, he can put in an hour or two of the old Scotch pas- time before supper. He can, at least on Saturday, swing the old mashie for an extra hour. Of course, he'll want the wherewithal wc invite him to come and look over our many \joys-of-thc-golfer- .\ The Clubs Slazcngcr'3 Drivers nnd Brassies, $3.2-- 5 Slazengcr' Iron3, $3.24 Burke's Driven) and . Brassies, $2.24 Burke's Irons, $1.98 Golf Bags, $3.49 to $10.49 For Young 'Uns GOLF SETS, consisting of 3aR, 3 Clubs and 2 Balls. Midget Size, $1.89 Junior Size, $5.74 Juvenile Size, $7.49 GOLF GL'OVES Fingerless Gloves, $1.69 pr. With Fingers, $2.74 pr. GOLF BALL MARKERS. with three initials, $1.89 GOLF BALL PAINT, 39c con GOLF SCORERS, (.Limited Quantity) 5c & 34c We sell Colonel, Spalding, IVrigh ' and Di'son, Worihinglon and U. Sm Golf Balls at the loiresi-in-thc-ci- hj prices. \OSPREY\ GOLF BALLS (floaters or sinkers), $4.24 dor. \FALCON\ GOLF BALLS (floaters or sinkers), $5.94 doz. \CHICK\ GOLF BALLS (floaters or sinkers), $6.94 doz. From the Ground Up he s ear- - BaaaKrt. with life. He never slips on a diffi-- c u 1 t putt, he's sure footed and a sure swinger as a result. An Oxford Shoe is made in a combination of tan and cream colored leather that looks quite \trig\ and is tough enough to defy the worst wear of the links. The hobnails in the soles and heels make for sure foot- ing. All sizw. $8.89 !iJX: w riflh Floor. Ccnirr.
