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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, February 21, 1918, Image 10

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Wealth
arkets and Commerce
Mackay&Co
May we assist you
in solving your
investment problems?
( >m services
are at
your disposal
1 4 W?dl Street
New York
Safety and Yield
In Investments
Tl/TANY short-term notes
Ml 0f ample security offer,
at present prices, an un
usually liberal yield.
Well-known issues of such
securities can now be bought
at prices to yield from
5.60?o to well above 7%.
Si-nd for Circular AK-I ?
The National City
Company
Correspondent O fees in .'< C\ ies
florid*- Short Term Xotes-Acceptanrrt.
. isr \ W. E. / """ ,
New York
[" ?}
Members
S rOCKS?BONDS?GRAIN?COTTON
Cincinnati
York Stoci I ?? hanoi
?;.'... gt
Ct'in - ?..??'. /;..?? ' aiiya
I fhicauo Hoard of . U
j Our Weekly Market Letter
? "Coming Events''
< I Upon request. Address Dcpt. A,
60 BROADWAY, NEW YORK
Liberty Bonds
We specialize in $50 and
$l?o Liberty Bonds and will
ad\ ise ) ou full} about them.
John Muir ?S Co.
w Spec lAi.iM In ^
Odd Lots
Main Office, ??I Broadwuy, \. T.
M . a ?; 42<1 SI I : i ?????? I ?? Ill lyn
? ? -? ,>. Mad At S1U Bron I. \i .. ..
-.- a . ? J.; Si llrlilgi ;.. n l'i ?
- & Ui i at I -.. . 11.,<??:, i
Memo n .V. V. Slock Kxchanat.
G?i
arcoas iron bo.
o? Jimence
Preferred &. Common Stock
Special circular on application
Livingston & Co.
51-53 Exchange Place, New York
The Steel Stocks
In War and Peace
I. S. Steel
Independent Steels
analyzed
II Hill l-'Ori liOOK?.ICT s<;
R.c.MEGARGEL^CO.
I stibtithrd IOOI
Mrmbrr* ?ew )i>r'? Q Chieafo Mock I ichanjw
2 7 Pine Street -New York
*? II \Kl I.KIIi 1804,
j union Trust Co, of New York
, SO Broadway
j 1 ? At .<. ?:>-. S!. I ".'. A. .* 60th 3!.
Allow* Interest mi Deposits.
\ ?els as Executor, Guardi?n, Trustee, etc.
r-r
Your Surplus Funds
deposit 'vl w itii this i .onipan y
'a!I earn a liberal interest.
Metropolitan Trust Co.
60 Wall Street
n
Mirk A. Noble Theodore C. < orwln
NOBLE & CORWIN
?5 Broad St. New York
\American Brass National Su%ar\
\D.,L.& W.Coal Tex. & Pac. Coal]
rclepbou?! mi Uruad.
- E
inance - economics
WALL ?STREET OFFICE: Telephone.
Milla Building, 15 Broad St. Hanover 6614
Gradually, but nom- the less]
f.rmly, "non-essential" industries are
being curbed. That apparently is
inevitable, inasmuch as there is
neither enough labor nor capital tu
produce the things required for war
and enough to allow private con?
sumption to proceed as in timos of
peace. So we have restrictions
through priority of supplies, and to a
constantly increasing extent, through
c 'edit starvation. Pressure is
brought, "unofficially," but with
steadily greater force on the banking
institutions in this city and pre
sumabljrHhroughout the country?to
curtail loans to "non*essentials."
N'o'.v, this is to ho expected, and is
deserving rather of commendation
than condemnation, but the manner
i'i which it is sought to cut oft" credit
supplies is open to serious criticism,
for it is not only likely to work gross
injustice, but is positively dangerous
in that essential production might be
reduced. The banks are asked to re
Train from loaning to non-essentials
and they are doing it?but neither
the Federal Reserve Hoard, which
apparently is back of the movement,
nor any other official agency has
had the courage to define or classify
the non-essentials. That is left to
the individual judgment of each of
about 30,000 bankers, whereas there
arc scarcely any two of them who
have the same ideas as to essential
and non-essential industries. One
banker has as a customer a large
tobacco manufacturer. When that
customer applies for a loan lie is
told that the tobacco business is non
essential and he will have to do
without funds. So he quits business
or greatly reduces his output. Across
the street, perhaps, is another
! anker who likewise has a tobacco
11 anufacturer as a customer. On the
theory that tobacco is necessary for
''the boys in France" and those at
home as well, the banker grants him
all the accommodation he may re?
quire. The result is obvious?the sec?
ond man gains trade at the expense
of the lirst. To attempt general re?
striction of credit in such a hap?
hazard way as it is now being at?
tempted is as absurd as it is danger
? us. A definite programme should
be adopted.
II used to be said, before the war
that labor was immobile. That
complaint is no longer heard. Un
der the influence of an unbalance!,
labor market it is so mobile tha
much of its efficiency is destroye?
and industries are seriously embar
rt.ssed by wild fluctuations in thi
i umber of workers on tiieir payrolls
As showing the rapid shifting fron
one ,i"b to another, witness the fol
lowing from the annual report 0
the Underwood Typewriter Com
pa.uy :
11 has been difficult to compete
with the unusual labor situation in
New England caused by the demand
made by the many munitions manu?
facturer-: but the company has en?
deavored to treat the wage question
as liberally as possible and has made
substantial increases in wages at the
factory. The total number of new
factory employes during the year
ha- exceeded ??..I, and yet has re?
sulted in a net increase of only 500
employes al the close of the year.
And this from the report of th
Pressed Steel Car Company:
A ?matter of the gravest import?
ance in the present crisis which it ?E
hoped our government njay promptly
correct is the migratory disposition
of workingmen, as to win the war it
will require steady, sober applicatior
by every one, Labor conditions hav?
been most difficult, and we can m
better illustrate this than by th<
statement that, during the year w<
employed four men for every job
that is, each employe ?averaged onlj
three mouths' service with us. Thi
changing of employment slows dowi
production and tends to make higl
: COStS.
Such instances are not excel
jtional; they are common. Tl
worker hardly has time to get a
customed to ?me job before he aba
lions it for another. Incidental]
we shall probably have more "skill
labor" and fewer skilful worke
when the war is over than we ev
j had before. The problem will
to find enough of the class who a
, willing to work with a pick a:
| shovel.
If thi' American transportait
machine, anil railroad l?gislatif
. had been made to order, with w
; efficiency as a prime objective i
was more or less the case in Europ
i -stead nf developing in the asyi
metrical fashion dictated by exj
diency, there would lie good fou
dation for the time-wodn charj
repeated by ?Senator Johnson in 8
; '.?eating' government ownership.'th
the railroads had "broken down" r
i der private management. As
i happened, the carriers were call
e I on to meet a situation the like
which had never been imagin?
i They met it with what was, uni
: the ci reu instances, a reniarka
demonstration of efficiency. Tl
produced more transportation th
over more than would have hi
considered possible a year befo
A nu in spite of restricting legis
lion, they were moving a constantly
increasing volume of freight until a
flood of stupid priority orders
brought such congestion ?nul confu?
sion that seemingly only more gov*
ernment interference could bring
order out of chaos.
Money and Credit
A slightly easier tendency was no- ;
ticeable yesterday in the call money
market on the Stock Exchange. Al?
though the ruling rate was ? per cent.
some money was obtained ?it ."i1- per
cent, late in the day. The closing rale.
however, was at the higher figure.
Money brokers state that whereas un?
der normal conditions time loans
formed from "i? to ."?(? per cent of the
total borrowings on Slock Exchange
collateral, the proportion has now
dwindled to between i '? and 20 per
cent. In other words, current dealings
on the exchange are carried largely
through call loans.
Ruling rates for money yesterday,
compared with a year ago, were as fol?
lows:
Yesterday, "fear ago.
Call money. 6"? 2' 2%
Time money (mixed collateral):
Sixty days. 6?., ! %
Ninety days.... 6"., 4 %
Your months... &% -1 @4'-4%
," to G months... G?? 4 @4'4%
Commercial Paper.?Kates for com?
mercial paper were somewhat firmer.
The best names were quoted 5V> per
cent to ."i-'.t per cent for four months'
periods and '';i per cent to ti per cent
for the longer maturities, with the
volume of business being done at the
higher rate. Names not so well known
continue at ?:', to U per cent.
Bank Acceptances. Owing ;.. the
present policy of the hanks in keeping
their funds In readiness for govern?
ment financing and the higher rates
for call money, the market for bank
acceptances continues dull. A few
eligible hills, however, for ninety-day
periods are moving at 1 per cent. Quo?
tations are unchanged as follows:
Spot delivery : '.mi days. 60 days.
1'cr cent. Per cent.
Eligible member b'ks 41 8@ ? 41 ?(W>378
Eligible non-member
hanks. 43?@4l 8 4%@4 '8
Ineligible bank bills. 5 @4!/2 5 @4J/2
For delivery within thirty days:
Bid. Off? red.
Eligible member banks.., 4%% 4 %
Eligible non-member b'ks. 4%% 4' 8??
Ineligible bank bills. 6 % 5 ",,
1) rates of
twelve Fed
Discount Pates.- -OfFi?
discount for each of tin
eral districts are as foil?
Over ?iver Over
; .'1 or ! ~, up 3D up GO up
less, to'30. to GO to 90.
Boston .'i
New York . 3'/2
Philadelphia... . 4
Cleveland. 4
Richmond. 4
Atlanta. 4
Chicago. -1
St. Louis. 4
Minneapolis.... 4
Kansas City.... 4
Dallas_'.. 4
San Francisco.. . 4
Bank Clearings
clearings at Ne?
cities were:
411/2
41/2
4'/-,
4>/a
41/,
41/2
5
4</2
5 ""
4''2
41/2
4| 2
The dav's hank
\ ork and other
4?/2
?1
4
4'/p
41 2
4/2
4">2
4/2
4j 2
41 2
41/2
-1
41 2
41 2
4I/0
xch
Balanc?
New York.$517.962.709 $35.777.830
Boston. 47,743,115 5,763.005
Chicago. 75,305.620 5,682.917
Si. Louis. 23,968.655 6.061,163
Sub-Treasury. The hanks losl $3S2,
?00 to tiie Sub-Treasurv yesterdav.
Silver. Bars in Lond
at. 42%d, unchanged; >.<
unchanged; Mexican d?
changed.
were quoted
York, W\c.
Dollar in Foreign Exchange
The decline in Italian exchange went
further, the rate falling to 8.77 for lire
checks. London continued as a seller
1 f lire hills here. Other exchange rates
show no important change. Russian ru?
bles were steady in the face of the news
from Pet rograd and Berlin.
Closing rates ypsterday, compared
with a week ago, are given in the table
below, American bankers have sus?
pended all dealings in German and Aus?
trian exchange, so that daily quotations
fur cither mark.- or kronen are no
loilffcr available.
(Quoted dollars to the pound.)
Woelt
Yesterday, ago
Sterling, demand.?4.75'4 $4.75 ft
?Sterling, sixty days_ 4.71^ 4.72
Sterling, cables. 4.76:* 1.76/,
Sterling, ninety days... 4.69 V, 4.70
(Quoted units to the dollar.)
Franc?, demand. 5.72'J? 5./21 4
Fiancs cables. 5.70T-. 5.70' ,
Lire, cheeks . 8.75 8.61
Lire, cables . 8.74 8.60
Swiss, checks . 4.5C! 2 '.51! ?
Swiss, cables.4.18 4.49';.
(Quoted cents to the unit.)
Guilders, checks. 43' ,; 43' 2
C'.'.ildei-.-, cailles ...... 44' .; 44
Rubles, cables.13.25 13.25
Stockholm, kr., ch'ks...32.50 3?..C0
?Copenhagen, kr., ch'ks.,30.25 30.75
j Pesetas, cheeks .24.25 24.18
Below is given the current exchange
value of foreign money in dollars and
cents, together with the intrinsic gold
parity, as calculated l'y the l'n;',.-d
States ?Mint :
Current
? ? xchangc Intrin -ic
calue. value.
Pounds, sterling. $4.75 $4.86^3
Francs . 0.17 5 0.19.3
, Guilders . 0.44 0.40.2
i Rubles . 0.13.25 0.51 .2
Lire, checks . 0.11.80 0.19.3
Crowns (Denmark).... 0.31 00 0.26 8
Crown- 1 Sweden'. 0.33.00 0.26 8
The above rates express ike cost of
foreign money in terms of the Ameri
. can dollar. Yon buy an English pound
1 sterling at, say, $4,75 .. The intrinsic
; parity is $4.86% per pound. Thus you
! say either that pounds are al a discount
'? or that dollars arc at a premium, which
i is owing to the fac: mat in England
I the demand for dollars with which to
; settle accounts in this country is greater
; than the demand in this country for
j pounds with which to settle account- 111
I England.
Dollar Exchange
Accepted by Chile
For Export Duties
New Financial Plan En?
ables American Interests
to Effect Big Saving
Officinl recognition of d ?liar exchange
as an important means of making in?
ternational payments has been accorded
by the Chilean government through
the adoption of a plan whereby part
of the export duties on nitrate of soda
shipped from thai country may be paid
in approved ninety day sight bills on
New Wir!; drawn in united States
dollar.. l'|i to this time such export
duties have been payable only in gold
and in sterling hills drawn on London.
The plan for using dollar exchange
in such payments was first advocated
by, Leopold Fredrick, director of the
American Smelting and Refining Com?
pany and treasurer of the Bra'den and
I Chile Copper companies, all Guggen?
heim properties. Mr. Fredrick, who
has lone,- been prominent in the move?
ment to establish regular trading in
' dollar exchange in South America, par?
ticularly in Chili, submitted this plan
to the Pan-American financial Confer?
ence, held in Washington in I91f>. lis
adoption on his suggestion is one of
the first practical results of that con?
ference. It is pointed out that not
only doc-; it mean the firm establish?
ment of dollar exchange in Chili, hut
it should in addition contribute to the
stabilization of the exchange situation
between the two countries. Secretary
of the 'treasury McAdoo is known to
have taken a personal interest in hav?
ing the measure adopted in Chili, and
the Secretary, in conjunction with
Paul M. Warburg, of the Federal Re?
serve Board, took up the question with
the Chilean government on theii visit
i,i S, nib America two years ago.
Big Saving in Commissions
Mr. Fredrick, who caused dollars to
he quoted officially on the Bolsa, in
Val] araiso, : aid yesterday that the
American Smelting, the Bradcn and
the Chile companies have sold in the
In ' ':.:?(-.' years about $.50,000,000 of
.ira:'! ? on Xew York. Formerly all of
iliis financing was done via London.
The new method of financing tbvough
bills drawn on N'ew York liar, saved
the companies hundreds of thousands
of dollars in commission and interest.
Two financial agencies have been es?
tablished in Valparaiso, one for the
Bradcn Copper Company and one for
the ? hile Exploration Company. The
mines of thee companies are hundreds
? :' miles away from tin- Chilian me
; i opol : . but these agencie - cent ralize
the financial transactions of the enter?
prise and by cooperation with the
American nil rate exporting companies
and other American interests operat?
ing in Chile an active market for dol?
lar exchange has been established.
American nitrate of soda imports
from Chile 'nave trebled in volume
since the war and in 1917 were valued
al 560,000,000. The nitrates are uti?
lized principally in the manufacture
of munitions and for fertilizer pur?
poses. \Tow that export duties on this
commodity can he paid in exchange on
New York an effort is being made to
have the Chilean government authorize
the payment of import duties by use
of the same medium.
Reserve Board Rulings Help
The value of developing an interna?
tional market for dollar exchange is
generally recognized. To encourage
its use in lieu of sterling exchange,
the Federal Reserve Board lias made
a number of important rulings in order
to make it easier for South American
hankers to pay in American dollars
than ?n English pounds. The hoard
recently issued a decree permitting
member banks to accept drafts drawn
upon then] by banks or hankers in the
following countries; Porto Rico, Santo
Domingo, Costa Pica, Bern, Chili.
Brazil, Venezuela. Argentina and Bo?
livia. The board has ruled against ac?
cepting bills of a similar nature from.
European hanker- on the ground of it
being mine? esi ary to do so.
New York Air Brake on
Regular 20 Per Cent Basis
Directors of the Xew York Air Brake
Company declared a quarterly dividend
of 5 per cent on its $10,000,000 capital
-toi-k. putting the issue on an annual
basis of '-'H per cent. This action had
been expected. '1 he company has beei
paying dividends fur the last fifteei
months a! the rate of 10 per ecu
regular and 10 per cent extra. Thi
dividend just declared is payabl?
March 22 to stock of record March -I.
Relevant Comment
Market Ignores Russia's Blight
In Wall Street commission houses
it was remarked not once but. many
; times during the course of the session
that stocka were acttflg remarkably
j well considering the gloomy news from
I Russia. Substantial declines were re?
corded at times, but good recoveries
' were made oil the whole, and the |
undertone was strong. The explanation
of this stolidity of prices in the face
of the Petrograd news was that it
had been generally expected Germany
\ would in the end outwit the Bolshe
; vik managers. Indeed, the wonder- has
'been that Trotzky and Reni?e were
j able to keep up the "negotiations" as
I long as they did. Russian government
external ?Vj por cen?, bonds sold on
! the Curb yesterday at 39, a declin? of
a point. Russian exchange was steady.
Country Banks Buy Fewer Bonds
Bond men report a sharp falling ofi |
I in the sale of bonds to banks within
the pas) ten days. This condition ap- j
< plies largely to out-of-town institu- !
tinns, which are conserving their ;
, liquid funds to invest in the Treasury,
certificates of indebtedness to be is- j
sued before the next. Liberty Roan is
? floated. The country banks, it is ;
! stated, arc carrying-their policy of re?
trenchment to the extent that in sorno
instances bond.-; now held are being
sold to increase the funds available
for participation in government financ?
ing.
Distribution of Sugar Credit
While no further statement was
forthcoming from the bankers' sugar
: committee yesterday it was reported
that in the allocation of the $100,000,- j
000 revolving credit to finance the cur- -
rent Cuban sugar crop Xew York's ;
preliminary subscription amounted to
$60,000,000, of which $17,000,000 was ?
subscribed by cane sugar refiners. An- I
other $20,000,000 is understood to have'
been taken in Chicago, between $5,
000,000 and $0,000,000 in Boston and
$.'3,000,000 in Xew Orleans. This leaves
about ' $12,000,000 to come from other
, parts of the country.
National Enamelling Raises Dividend
In declaring a dividend of ?> per,
cent on the $15,591,800 outstanding!
' common stock for the year 1918 yes
; terday. directors of the National Enam
; cling and Stamping Company raised ,
! the rate over last year by 2 per cent.
\n initial dividend of ! per cent '.cas
declared a year ago. The ?i per cent
disbursemenl is payable in quarterly
instalments, 1 l. per cent on March 20,
May ,'!t. August 30 and November 29.
Announcement of the increase in th.?'
dividend rate was followed by an ad?
vance in the price of the common stock
to -Is'-; on the Stock Exchange. The
closing quotation was !7~s. a net gain.
Money Pool Still On ?lob
Reports that the money committee,
?vhich was organized in connection
with Cue last Liberty Loan campaign
to stabilize call money rate-;, had re?
cently dissolved .-.ere denied at the
Federal Reserve Rank yesterday,
.lames I-'. Curtis, deputy governor,
stated that the committee was still in
existence and had no intention of dis?
solving. The hanks. Mr. Curtis said,
are reporting to the committee weekly
instead of daily.
To Relaie. Small Liberly Bonds
li was stated at the Federal Reserve
Rank yesterday that there is no tires
cut intention of leaving out of the next
Liberty Roan bonds of $50 and $100
denominations. There has been some
discussion, however, of a plan for re?
placing the cash partial payment sys- I
tern by the use of war stamps. This.
it is argue?!, would elminate much de?
tail work involved in the regular meth?
od of paying for the bonds on the in?
stalment plan.
Nicaragua's Coffee Crop
During the year 1917 Cue quantity
of coffee produced in Nicaragua for ex?
portation was 21,837,905 pounds, valued
at approximately $2,000,000. From the
port of Corinto 127,142 sacks ,,f coffee,
wi ighing 18,089,105 pounds were shipped
during the year, largely to American
ports, and there remain on hand of the
1917 crop in warehouses 20,992 sacks <>!'
coffee, weighing 3,148,800 pounds, des?
tined I" European ports.
The annual average crop of coffee is
150,000 sacks of 150 pounds each or
22,500,000 pounds. The pri?e 0f pro?
duction, according to a consular report,
caries between 5 and i; cents per pound!
and the export price throughout 1917
averaged !i cents., a small ipargin of I
profit for-the growers throughout Nica?
ragua.
From Cue various coffee sections it
is reported that the 1918 crop will ex?
ceed that of RM 7 by at least 20 pel
cent. Should the forecast he correct
the production in 1918 will apnroximate
180,000 sacks, or 37,000,000 pounds
Significant Relations
Money and Prices:
Stock of money gold in (he country. $3,038,545,642 $?.9.2,465.116
- ,. .,, ,,,.- "carat period
Loans of all national banks. $9,535,000,000 $8^45784,000
Bills discounted and bought by Fed- ,,., ?,
??ral Reserve Ranks. $789,179,000 $H5 60*7000
Federal Reserve noies in circulai ion.. 1,281,045,000
Total gold reserve. 1.758.512,000
291.839.000
789.652,000
A ? -?r aj?"
112.60
95.46
225.9;
\verage price of 15 railroad slocks. . . 92.02 92 20
Average price of 12 industrial stocks ?8.d2 83.84
Food cost of living (Annalist index . .,. },, , . ,
number) . 285.58 287.50
iinirr.ii commodity price level (Dun's r.->. ; 1.. il_
index number) ..'. 227.02 222.17 '?76J27
Production:
I ?filled l . s. Steel orders, tons. 9,477.853 9.381.718 ! 1,474,054
Rig iron (daily average), tons. 77,798 ^92,997 *f?V,643
Wheat c-op bushel?. o'so'?boo' MeS?a.OOO
Y:" crop' 1,,n , u;ls. 3,159,494,000 2,566.927 000
!:' r Cr0p; b?h?S. 1.587,286.000 1,251.837 000
Cotton crop, bales. 10,949,000 11,449,930
Distribution: ' I ??? .. - or decrease from last
^^^Tm.--;. Month
Keli .
Jan. I to
dross railroad camines. . Yon e ? ? broads
^^^^V''9" -6.1%
ricreasc or decrease from last year
eck n,?,ne?H before. W ,n ...t..
*?? 0 4.4% 3.4o/o
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^<l?-.-ri>a.s? frein -?
Hank clearings ., '""':Y'L n?nef^'??' Wtodat
General:
la- .1
Active cotton snindlcs inti-n -,<> c?n ?-,,. * r"nr ?ud
1 .o3,552,/32 o3.649,076 33,016 893
Commercial failures (Dun's):
Number . Ji YY ""'"'i'nc- * "?' "?"
....... . 1,1/?a 1,05a 15.10
. ^abilities.~. $19,278.787 $14,043,716 $18,283J20
'Gold held by Hcserve agents again?, circulation included in general
!n tlie ?5in6n?gurcsnC ^ lDl7' *" ^^ "' COmParis?? " ?? ?"eluded
".". ~ .~ ~ j
Pressed Steel Car
Plants Are Still
Partly in Idleness
Loss in Profits Attributed
in Measure to Price
Fixing
Inability to obtain regular .supplies
of malcri?is and labor was responsi?
ble foi a heavy decrease last, year in
earnings of the Pressed ?Steel Car Com
??any, the annual report issue?! yester?
day showing a balance of $1,255,308
available for the $ 12.500.000 com?
mon stock. This was equal to $10
a share, compared with $15.01 a share
in 191(1. The slock sold off 3% points,
following publication of the report.
Cross sale.; of ?he company in 1917
aggregated $44,034,844, compared with
$31,202,646 in 1916, while profits last
ye.-tr amounted to $2,430,308, compared
with $3,051,152 tiie year before. The
balance sheet, as of December 31 last
showed cash on hand of $2,058,358, com?
pared with $2,664,660 in 19Hi.
F. X. Hoffstot, president. oT the com?
pany, in his remarks to the stockhold?
ers referred to the delay in obtaining
deliveries of steel in 1917, caused by
th" genera! confusion over the. gov?
ernment's price fixing programme.
"Until the middle of October," said
VIr, Hoffstot, "(here was received less
than one-half the steel plate require?
ments, with the result that inventories
wre unduly increased to more than
'reble in value and double in units, on
account of large quantities of shapes
and bar., coming in regularly without
plates, thus causing additional ex
pen 50.
"Ai soon as this country entered the
war the company offered its facilities
to the government for making such
materia! as the plants are fitted to
produce, but its plants have freight
car capacity still open, as the equip?
ment for manufacturing freight cars
i not adaptable to the more highly
til.?shed products required for war
work. We have believed for a long
time that the great shortage in cars
must inevitably result in placing ol
h.rge orders and the buildings in which
this equipment is located could there
fere be more advantageously used b\
building cars than embarking in manu?
facture of material involving large
expenditures for new machinery am
difficulty of forming new organization:
for this work."
The company has not yet: estimate?
its 1917 excess profits taxes. Order:
last year included about 10.00?) cars a
varying prices. Of the total of $44,
000,000 gross sales more than $30,000,
000 ??ame from car business. The re
mainder of income came front forgings
shell and genera! repair work. Thi
plants are now running at about 7?
per cent of canac.it.v.
Steel Industry Is
Slowly Recovering
Operations This Week Esti
mated at 80 Per Cent of
Capacity
Production of iron and steel is work
ing back into accustomed channels, bu
according to leading trade authoritie
the process of recovery i: slow. 11.
the end of the wee!; it is estimatei
that the industry will be operating a
80 per cent of capacity. "The Iro
Age" says: "Improvement has no
come to mills uniformly, for in Last
ein Pennsylvania operations droppe
last week to a Id per cent basis, an
fuel supplies have since been littl
bettered. Increased activity under th
limitations ?it' inadequate motive powe
are expected to be only gradual. L
roads have been made on the gres
stocks of finished product, which hav
blocked mill .-pace for some time, an
general domestic business now waits o
how much mill capacity will excee
v o \e mm en: requirements."
Poor gas coal, "The Iron Trade R(
view" says, has been the cause of
reduction in open-hearth operation
this week in the Pittsburgh and va
ley districts, from St to XI per cen
Bcssmer plants were <>" per cent activ
compared with >i I per cent the precei
ing week. By-product coke plan'
have been operated at 91 per cent.
New York Telephone
Earns Less in 191
Company's Taxes Increas
Over $2,000,000 for
the Year
The Xew York Telephone Compai
earned in 1917 a balance equal to $13.
a share on tile $125,000,. Capit
stock, compared with $13.81 a share
I'M i;. The annual report, issued ye
terday, showed total revenues <_f $G:
001,006, compared with $57,005,565
1910. Deductions for taxes aggi
gated $5,490,626, compared with $3,42
.'?72 the previous year. The balan
I available for commun dividends w
$10,:t77,490, compared with $17,265,0
m 1910,
The statement of the Xew York Te
? phone Company and associated comj
nies, operating in tin- States of X
.York. Xew Jersey, Pennsylvania, De
ware, Maryland, Virginia, West Y
ginia. in the District of Columbia a
in parts of ( onnecticut ami Oh
showed combined total earnings
$98,307,838, an increase of $9,5 10,
compared with 1910. Expenses
creased ?1 1.'". t?.V?t? to $78,760,303. Is
earnings aggregated $19,601,575, a .
crease of $2,105,423.
Op December 31, 1917. the Xew Y<
Telephone Company.had 1,443,388 s
lions under its direct operation, an
crease of 82,"on. To assist employes
meeting the unusual conditions obta
ing as to living costs the Xew Y<
company and associated companies ;
thorized increases in rates ,,f cornp
sation aggregating $3,377,788, bone
ting 53,050 employes. Under the
stalmcnt payment plan offered by
Kastern group of the Hill system
employes subscribed $861,850 of
tir.st Liberty Loan bonds and $8S4,
of the second.
The Xew England Telephone :
Telegraph Company reported yes;
day a balance available for divide
equal to $t>.7I a share on $61,266,
capital stock, compared with $7.?t>
I share earned in 191,6 on a $55,295,
capitalization,
Get Full 6% on
Your Investments
Few bonds are on the market nowadays which net
the investor full G Y , with both normal Federal in?
come taxes (4%) paid by the borrowing corporal
tiens. In nearly all bonds containing the "tax-free"
(lause only one normal tax i.-. paid, leaving 2<, to
be paid by the investor.
4% Normal Taxes Paid
We oiler a variety of sound bonds, safeguarded
under the Straus Plan, which net full 6< ; . the bor?
rowers pledging themselves to pay both normal
taxes (4%) on the interest they yield. The record
of these bonds and of this House is the best evidence
of their safety. Every investor should post himself
on their merits. Call or write for
Circular No. B-156.
S.WSTRAUS & GO.
IM ABI.IsllU) iss: I INCORPORATED
150 BROADWAY, NEW YORK
?JHICAGO PHILADELPHIA DETROIT ?".
MINNEAPOLIS D-VVTOX KANSAS i
36 Years Without Loss to Any Investor
P. Lorillard Co.
Declares 20 P. C.
Stock Dividend
Company Needs Its Cash Re?
sources for Working
Capital
Announcement was made yesterday
that the P. Lorillard Company, a for?
mer subsidiary of the American To?
bacco Company, is to declare an extva
dividend of 20 per cent in common
stock in lieu of the usual extra cash
dividend. The extra dividend last year
amounted to ? per coat and two years
ago to 5 per cent. The proposed extra
dividend will call for an increase in
the authorized common stock, and a
special meeting ol Hie stockholders has
been called for March 12 to vote on
the matter..
Thomas J. Maloney, presiden' of the
company, in an explanatory statement,
said:
"The r.et earnings of the compan?
for the year 1917 have been sufficient
to justify the directors in following the
same course and paying a similar or
even a larger extra dividend this year,
but as there has been an enormous in?
crease in the cos? ? ? ?' leaf tobacco and
all materials use,! in the manufacture
of tobacco, which necessitates a much
larger provision For working capita!,
they deem it for the best interest? of
the company to conserve its casi: re?
sources and to omit the declaration of
the extra cash dividend this April.
"Under these circumstances, the offi?
cers and directors have- come to the
conclusion that in addition to the regu?
lar cash dividends of ! "?* per cent on
the preferred stock and 3 per cent on
the common stock, payable April 1, it
is adxisabie to declare anil pay to the
common stock holders an extra dividend
of 20 per cent of their holdings, pay?
able in common stock of the company,
as soon after April 1 as practicable, in
lieu of the usual extra dividend in
cash."
The stockholders will be asked to
authorize double the present amount
of outstanding stock of 151,556 shares,
only one-liftb of which will be needed
to pay the extra stock dividend.
?-a
Gulf States Steel Earnings
Increase Over $1,500,000
Net operating income of the Gulf
States Steel Company for 3017, accord?
ing to preliminary figures made public j
yesterday, amounted to $4,199,925. an
increase of $1,549,919 over the previous
\ear. After deductions for deprecia?
tion and reserves for all taxes, the net
income was $2,882,176, compared with
' $2,452,510 in 1916.
News Digest
h oreign
London Stock Market Stagnant.
LONDON, Feb. 20. Business was al?
most stagnant on the Stock Exchange
to-day in the absence of stimulating
influences. Short term securities were
the most attractive issues in the giit
edged section, while bank shares and
a few industrial and shipping stock-;
hardened slightly. The tendency in
cither directions was easy, owing to
lack of support.
Pari? Bourse. PARIS, Feb. 20.
Trading was quiet on the Bourse to?
da;,. Three per cent rentes, ,">7 francs
.">?) centimes for cash. Exchange on
London, "7 franc.-. 17'- centimes. Five
per cent loan, 87 francs 7-7 centime.-;.
New York
Stock Increase Planned. According
to an announcement, made by Charles
Miller, president of the corporation, the
Galena Signal Oil Company will in?
crease its capital stock from $14,000,000
to $30,000,000. The financial arrange?
ments have already been mude. Of the
new capitalization of $30,000,000 oniv
$24,000,000 will be issued, the remain?
ing 56,000,000 being left, in the treasury.
Elections
Herbert W. Morse has been elected
vice-president of the New York Trust
Company, and Samuel 1!. Fisher has
been elected a trustee, to till a vacancy.
Boyd G. Curts succeeds Mr. Morse as
secretary.
P.. T. Sullivan has been elected a di?
rector of the Republic Kail way and
Light Company.
Corporation Returns
Butte and Superior Mining. Prolits
of the company in the quarter ended
December M la I an um ??? to $564,01'
compared vvi'tli $2,309,067 e con
sponding period of 1916, a decrease
$1,745,050. Total profit s i or the fi
year of 1917 were $2,723.594, equal!
$9.38 a share on the ; tock.
N. Bruc? \] acKeli ie, d nt
?:." company, said that alt hough op?
ating costs for the quarter were si ig
ly lower than in the preceding quart
?hey were considerably higher tfaj
those of the first two quarters of q
year, due to high costs of labor, :t:
terials and supplies and to unsettk
labor conditions. No further develcj
meuts have taken place in the litige
tion in which the company ha- be
involved. The Mineral Separata
Company's suit, which has been i;
pealed, will be heard by the l'nitfc
States Circuit Court of Appeals in Si
Francisco early in March.
Alaska (lold Mines, 'pie roper: c:
the company for the quart? r ? tided De?
cember .".1 last was issued yesterd</r"
revealing total operatii ? profits o?
$37,684, compared with $8.735 in t/i"
preceding quarter. On th< "? .. isoft?ie
quarterly statements tota operating
profits in 1917 ..--iv $273,630. ,%it'. t<
36 e.-nts a share on the 750.006 sharei
of $10 par value capita! sto
J. S. Young Company. The annul
report for the year ended December3!.
1917, shows not. profit of 5217,806,co?
pared with $365,331 f? r L616 Dividend]
amounted to $180,000, a decreaJb ?
$10,000 compared with the previo-.
year. Surplus whs $37,806, compara
with $175,331 for a year ago.
San Joaqu?n Light ?V- Power (.'orpon
tion.?Gross revenue for the year ended
December :il was $2,054*,000, compares
with $1,809,586 for thi
Jan'y gross earnings. .$2,031,462 $1.854.4?
Expenses .SO.970 21.W
Net earnings . 2,003,491 i.832."20
Twelve months" gross. 19.429.505 11,30!?49
Ej penses 366.470 2i2J*rf
Net earnings . 19.063,034 II.wS'iU
?iulf. Mobile ?v Northern
December gross . . .. $180,207 $166.6??
Not . in .14.6?
Surplus. 15,353 '>'? "
Twelve mos. gro 3 ' 64,475 '? .'2Q3P
Sur,.hi-.. 772, " ' 680,7!
Detroit ildi-nn
.lanuarv opcr. revenue, ?,980.764 \ %B7S,P
Expenses . 828.933 ' 61MJ
Net income . 388.912 430.?.
Net . 2'i>2,095 341,..
Dividends Declared
American ?ins Company. Regular f|'J>
terly di\-idend of -' per cent, payable March
to stockholders ol record L-'ebruary -'"?
California Packing (ompany. - Re**1
quarterly dividend of ? cents per she??
the common stock, payai le March 1? to??*
holders of record February : '?> : siso,"???
ular quarterly dividend of $1 ? t-er share e
the preferred stock, payable Arril ' to??*
holders of record Mar i '
fiulf States steel Company. Regulara"?
terly dividend of . ' per cent on the roninx?
stock, payable April it. >"~ ".', "J
ord March 13 ; also, regu .. ?a divuK-jw
of 7 per cent on the first preferred and I
per cent on the second preferred. PW^g
April I to stockhold.' rec ird Maren w
Julj i to stockholdei of record JW*?
October 15 t.. stockholdei ? record SapWJ
I..- 15 und Januarj . : ' . to sttx**?*"
ol rec? ird I lecember ^P%
Heywood Bros. & Wakefield. Semi-?n?*?
dividend of f.: per *are on the prrtg
stock, payable March : to stockholder!
i ecord Februa rj! .:' ^ ..
I.aci?rie (.as Light < ompany. B^f
? uarterlj dividend of Ia. P.fn< "" ,;
common itock, payable March '" ??*
holders of record March 1.
Maekay Companies (tegular r',ja, "2
dividends <>f 1 per cent on th< i>referreo?j
'.'.. per cent on the common stocks. "?
April ! to itockl ? del - i ' record Ma??'' *
Mergentlialer Linotype Company. I^JJ
quarterly divid< nd of - P? r - '?? Y
March 31 to record Mar
National Enameling ?V. Stampin*. W
terlv <M-> idei .'- ol per ???"'. ''*? ?
March 2.1 to stockholder of r'?*'*/$!%
: i. May 31 to stockholders of rwordW,
K .?? ? ? - ? i:? -~ ??' Y Y ,tt*
10 am! November _" to stockholder? >'
ord November ? : also, regular *""?'"?
dend of ; per cent
Payable quart, , I '
.??. ol i-. ?-. rd Ma H . ?''?
: ?idei of record Jun< ' Septemberj
...... .;,,!,,. , ,.; rec0rd September ^ r?ea*
cember 31 to stockholders o? record D"<"
Heading (ompany. Regular ,|"*.rt'r^|
d;vidend of 1 per .-en', on ''"' ,s<"'1'YtocK-'
'Vrred stock, payable March U ? ?
holders of r.-.-ord February -??? ....
Shattuck Arizona Copper < ompany. ,
terly dividend of 26 cents per -?'?r;: ^?,
capital distribution of -'?? c<
loth payable April -0 to
record March 30 ,,.
Union Bag & Taper ?ompan?. ^?y,
quarterly dividend of 1 ' per "'|Y;Yh ?
March 15 to stockholders of record J?r^
Republic Iron & Steel Company- .**?%-*
quarterlj dividend of C-. per ffn*?2SR
preferred stock, payable April ' ' ^^r
holders of record March ? ?'' , ' *W*
quarterly dividend on the common JK?
able May I to Btockhlders of record M
Cuban-American Sugar <'omp"";', .?, \rI
lar quarterly dividend of ~ ' _? per' Kffrft,?
?ommon and 1 'i per rent "ii tpe . ?
| atocia, both payable April ! to ?taekWW
? of record March 15. J

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