New-York tribune. [volume], May 25, 1918, Page 12, Image 12

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Wealth Markets and Commerce
Finance - Economics
WALL STREET OFFICE: Telephone:
Mill. Building, 15 Broad St. x?anover 6514
It required just five lines on the I
news ticker to break stock prices !
sharply io the last ten minutes of
trading yesterday. A Washington
dispatch stated that "Majority Lead?
er Kitchin of the House announced
that he had received word from a
T easury official that Secretary Mc
Adoo has decided that it is impera?
tive that Congress enact a new reve-1
nue hill at the present session." At!
once there was a rush by profes- j
signal traders to sell stocks. Steel |
( ommon quickly dropped two points !
and other active issues followed its
lead. After the market closed an
other report was received in effect
denying the earlier one, so it. might
logically be assumed that traders
will have an excuse this morning for
buying back the stocks they dumped ;
just before the close. It is absurd
that the market should fluctuate at
all on these reports, for whether they
are accurate or not they have abso?
lutely no effect upon values. Every?
body now believes that taxes on 1918
incomes and profits will be tsubstan-1
tially increased. What difference does
it make whether the size of the addi?
tional imposts is determined in July
or December? The balance of profits
remaining for stockholders probably i
will he neither more nor less because
of the date on which the new imposts
are fixed. It is obvious, of course,
that the extent which taxes are in?
creased will have a very important;
bearing on security prices, but stock j
traders do not appear to be con-|
cerned with such fundamental facts, t
They sell stocks because it seems that
the taxes, which in any event would
not be payable for more than a year,
may be decided upon at the present
session of Congress instead of the
one beginning in December. If any?
thing early action in the matter
would be favorable, because the un?
certainty which now restricts market
activity would be partly cleared up. |
Supplementing the recent state?
ment of the Federal Reserve Board, j
ii. which banks were requested to re?
duce .or eliminate loans for non
essential purpose.. ? among others,
loans for purchasing or carrying
stocks and bonds?the sub-committee
on capital issues of the Federal Re?
serve Bank of Philadelphia has just
issued an appeal to ,the member
banks in its district to apply drastic
restrictions to further expansion of
credits. It urges all banks and busi?
ness men to read carefully the board's
message on this subject and to fol?
low the course outlined as closely as
possible, because only in that way
can sufficient credit be made avail?
able for the essential businesses. "To
prosecute the war successfully," the
committee says, "necessitates the use
by the government of the nation's
supply of credit, materials, labor and
transportation to a far greater ex?
tent than ever anticipated. While
admitting the tremendous resources
of our country we must not lose sight
of the fact that there is a limit be?
yond which we cannot go. In many
lines of production the greater por?
tion of the output is now needed
solely for war purposes and in oth?
ers an extension of facilities will be
i ecessary.
"The requirements of the nation
must in all cases be placed before
ihe requirement-, of the individual if
we are to win the war; hence tho
necessity for applying a rigid check
upon further expansion of credit in
directions not clearly essential for
Ute prosecution of the war or for the
health and necessary comfort of the
people."
Money and Credit
Withdrawal of government funds
caused some calling of loans yester?
day afternoon, when the rate for call
money at the Stock Exchange rose to
6 per cent for loans secured by a mix?
ture of railway and industrial collat?
eral. Loans secured by industrial se?
curities only were quoted at 6% per
cent. About $500,000 of the industrial
call money leaned at the 6?% per cent
level.
(?'Veringa cf fixed date funds were
practically nil and the business in this
.loparttnent was confined mainly to re?
new al.s of maturing obligations at 6
per cent for all the regular maturities.
Ruling rates for money yesterday,
compared with a year ago, were as fol?
lows:
Yesterday. Year ago.
Per cent. Per cent.
Call money:
On mixed collateral. 6 2'/2
On industrial col'fl. 6^2 3 ,
Time money (mixed collateral):
Sixty days. 6 4 @<H4
Ninety days. 6 WAQtyg
Four months. 6 4'/?@4%
Five to six months. 6 4'/?@4%
Commercial Paper.?A fair amount
of prime paper was discounted yester?
day at 6 per cent.
Bank Clearings.?The day's bank clear?
ings at New York and other cities were:
Exchanges. Balances.
New York.$520,144,397 ?62,626,347
Boston. 40,435,642 11,606,600
Philadelphia.... 59,874,865 10,200,024
Sub-Treasury.?The banks lost to
Sub-Treasury yesterday $1,506,000.
Bank Acceptances.?This market was
active, with a heavy demand for eligi
ble bills from interior banks. Rates
were unchanged as follows:
Thirty Sixty Ninety
Spot de- days. days. days. .
livery: Per cent. Percent. Per cent. '
Eligible
member
banks....4J4@4 4A@4A, 4A@4?/4
Eligible
non-mem?
ber banks^lg^'/a 4i1_@4l/4 4iV@4A
I nc ligible
bankbills.5'/4@434 &A@4% 514@4?4 ?
For delivery within thirty da:'s:
Per cent. !
Eligible member banks. ^]/z '.
Eligible non-member banks. 4%
Ineligible bank bills. 6 j
Discount Rates.?The following table |
gives the current rates of thf twelve i
Federal Reserve banks on commercial |
paper on all periods up to ninety days: j
,-Maturity-, i
- r- r> ?_ r. CT n *"*
||?| is gsl
??Sa3 <? _.?
?.;?-? ^ o !* ?_>
j ? ?_
: ?3
: RS-?
_.
; p ? 3 -3 ! 3 i
Boston. 4 434 ~ 434!
New York. 4 434 434 '
Philadelphia_ 4 ' 434 434 j
Cleveland. 4'/} 4% 434 1
Richmond. 4'/4 4?.4 4%,
Atlanta. 4 434 4%. ?
Chicago. 4 434 5
St. Louis. 4 4% 4%,
Minneapolis.... 4 4% 5
Kansas City_4 434 A%\
Dallas. 4 43_l 5
San Francisco.. 4 4% 434 ?
Silver.?Bar silver in London was |
48?4d, unchanged; New York, 90ViC, un- ?
changed; Mexicafl dollars, 77c, un- j
changed.
Bank Exchanges.?Clearings through
the banks at the principal clearing
house centres of the country this week !
aggregated $n,_8_,117,977, an increase j
of 10 per cent compared with the cor?
responding period of 1917. Clearings
in New York exceeded the total of a?
year ago by 5 per cent. Average daily i
bank exchanges for the year to date?
are given in comparison with 1917 as |
follows:
1918 1917 I
Mav .$937,451,000 $880,005,000
April . 873,208,000 904,421,000 ?
March . 855,161,000 810,518,000 \
February .... 868,834,000 867,567,000
January .... 876,845,000 861,252,000
Bank of France.?PARIS, May 24.?
The statement of the Bank of France
with the changes from last week fol- ?
lows, in francs:
Gold .... 5,381,700,000 Inc. 756,000;
Silver ... 255,400,000 Inc. 738,000]
Circul'n .27,073,100,000 Inc. 69,110,000!
Gen. d'p's 3,174,200,000 Inc. 44,184,0001
Bills dis. 3,104,200,000 Dec. 12,577,000 j
Tr's. Dep. 65,400,000 Dec. 24,063,000
London Money Market. ? LONDON, '
May 24.?Money, 2% per cent; dis?
count rates, short bills, 3% per cent;
three months, 3 9-16 per cent. Gold
premium at Lisbon, 130.
The Dollar in Foreign Exchange
Increased selling pressure caused a
fresh decline in Italian lire yesterday,
the rate declining to a new low record
of 9.09 for checks and 9.07% for cable !
transfers. Brokers reported large of- '
ferings from Italian banks. A firm
tone was displayed by Swiss francs.
Guilders were steady. The rest of the
market showed no important change.
Closing rates yesterday, compared
with a week ago, follow:
(Quoted dollars to the pound.)
WceK
Yesterday, ago.
Sterling demand.$4.75A $4.75'/?
Sterling, sixty days-4.7? 4.72
Sterling, cables..4.76v? 4.76^r
Sterling, ninety days.. 4.70 4.70
(Quoted units to the dollar.)
Francs, checks. 5.71% 5.71'/4
Francs, cables. 5.69% 5.69%
Lue, checks. 9.09 9.01
Lire, cables. 9.07 8.99
Swiss, checks.4.07 4.02
Swiss, cables.4.03 3.98
(Quoted rents to the unit.)
Guilders, checks. 49 4934
Guilders, cables. ^Vz 50>/4
Rubles, cables .13.25 13.25
Stockholm, kr., checks.34.50 34.50
Copenhagen, kr., ch'ks.31.50 31.25
Pesetas, checks.28.00 28.00
Below is given the current exchange
value of foreign money in dollars and
cents, together with the intrinsic gold
parity, as calculated by the United
States Mint:
Current
exchange Intrinsic
value. value. !
Pounds, sterling.$4.75% $4.86% !
Francs. 0.17.4 0.19.3;
Guilders. 0.50 0.40.2
Rubles .0.13.25 0.51.2;
Lire, checks.0.11.25 0.19.3
Crowns (Denmark).. .0.31.50 0.26.8;
Crowns (Sweden)_0.34.50 0.26.8
The above rates express the cost of j
foreign money in terms of the Ameri- j
can dollar. You buy an English pound j
sterling ?.t, say, $4.75%. The intrinsic
parity is $4.86% per pound. Thus you ?
say either that pounds are at a discount]
or that dollars are at a premium, which !
is owing to the fact that in England
the demand for dollars with which to
settle accounts in this country is
greater than the demand in this coun- j
try for pounds with which to settle ac- ;
counts in England.
News Digest
Foreign
London Market Firm.?LONDON, I
May 24.?Money was in good supply to- ?
day. Discounts were quiet. The Stock j
Exchange maintains its firmness, deriv- j
ing its chief strength from the antici- ?
paiion of dividend reinvestments and
the smallness of stocks available. ;
Allied bonds were strong on an ex- :
pected advance in the government blue
book rates.
Paris Bourse Firm.?PARIS, May 24. j
?Trading on the Bourse to-day was'
firm. Three per cent rentes were !
quoted at 59 francs 75 centimes. Ex- i
change on London was at 27 francs 15 Vi
centimes. The 5 per cent loan was ;
quoted at 87 francs 80 centimes.
Peruvian Checks Approved.?LIMA, I
Peru, Mav 24.?The Peruvian Senate !
has approved the emission of circular
checks amounting to $15,000,000 to be i
guaranteed by funds deposited in the
United States.
Class System on
U. S. Railroads
A Possibility
May Introduce European System
To Meet Rising Costs
of Operation
(Special Correspondence)
CHICAGO May 24. The Europeani
zation of American railroads is seen as
a possibility by transportation ob- j
servers in the prospective advancJ in
passenger fares. In order to meet the
increased costs of running the roads
without placing too great a burden on i
the travelling public, it is considered I
possible that the Director General of j
Railroads may introduce the class
travel system.
The contemplated order of a new
scale of charges fixes 314 cents a mile
as the rate for passengers w'.io use
Pullman sleepers and parlor cars, 31/.
cents a mile for those who use tourist
sleepers, and .'. cents a mile for pas?
sengers in day coaches. Such n sliding
scale, if put into practice, would carry i
a suggestion of the European system, j
In the opinion of many railroad men,
the American public would be unalter?
ably opposed in principle to the adop?
tion of classes of travel. The Euro?
pean system, they insist, would be rp
pugnant to the democratic spirit of
Americans, who maintain that one man
is as good as another.
Even though the practical differences
in conveniences might be slight, the
objections to the class system might
be insurmountable. It is generally
admitted that the American people
would not take kindly to an extreme
form of the class system such as ob?
tains in Germany, where the trains
have four classes of accommodations.
The issue is whether they would tol?
erate two classes, whereby the less
well-to-do persons could escape part of
the rise in transportation charges.
From the viewpoint of railroad earn?
ings there could be little objection to
class travel, for the reason that the
charge for first-class accommodations
could be placed higher than the pre?
vailing rate and this gain would coun?
teract any reduction that might be
made in second class rates. And it is
believed the majority of American
travellers would prefer to buy first
class tickets
The Federal Railroad Administration
is now studying the advisability of per?
mitting the usual summer tourist re?
duced rates this year. Although no
official announcement has been made
yet, it can be said that the Government
will allow summer tourist passenger
fares in the territory west of Chicago,
where the congestion is not as preat
as in the East. The question of tour?
ist rates east of Chicago has not yet
been even tentatively settled.
It seems that the determining point
in reaching a decision on tourists
should be whether the stimulated pas?
senger traffic will interfere with the
movement of freight. If not. the peo?
ple ought not to be deprived of their
usual opportunity for recreation, which
is important even in war times. The
new practice of using all the berths
in Pullman trains may make it pos-|
sible to add coaches to the summer'
trains to meet the increased traffic
without adding extra trains to the.
schedule.
Even where tourist rates are allowed
there will be an increase over the 1917
scale of prices. The rate from Chicago
to California and return last year was
$73.r>0 and this .umnr.r it will prob?
ably be $80.. 0.
? * ?
Regular Dividend on
Chesapeake & Ohio
Frank Trumbull, chairman of the
board of directors of the Chesapeake &
Ohio Railway Company, announced yes?
terday that the regular semi-annual
dividend of 21/. per cent had been de?
clared on the $62,792,600 outstanding
capital stock, payable June 29 to stock?
holders of record on June 7. This ac?
tion, Mr. Trumbull emphasized, was
taken with the approval of the Federal
administration of railways.
In view of recent statements to the
effect that there had been delay on the
part of the Director General in giving
the necessary permission for the dec?
laration of the dividend, Mr. Trumbull
said he had nothing but praise for the
celerity with which the matter was
handled in Washington "as soon as an
understanding was had as to the requi?
site forms.
Market Barometers
Stock Exchange Transactions
Stocks
Rail- Other All
roads. stocks. stocks. ?
Yesterdav_46,800 885,000 931,800 ;
Day before... 104,700 782,800 887,000
Week ago.... 147,700 922,100 1,069,800
Year ago.100,200 1,481,700 1,581,900
January 1 to dale:
1918... 7,372,400 50,016,900 57,989,3001
1917... 9,095,700 69,240,500 78,336,200;
1916... 10,799,800 61,679,500 72,479,500 j
Bonds
Day Year
Yesterday. before. before.
U. S. gov.$4,233,000 $3,471,000 -
Rails.... 378,000 560,000 $1,106,000 j
Others.. 963,000 1,086,000 2,718,000 !
All bonds 5,574,000 5,117,000 3,824,000 j
January 1 to date:
1918. 1017.
U. S. gov'nts..$256,036.000 $261,000
Railroads. 68,476,000 147,406,000
Others. 146.024,000 303,583.000
All bonds.570,536,000 451,250,000
Stock and Bond Averages
Stocks
Yestcr- Day Year
dav. before, ago.
20 Railroads.69.25 69.40 80.95
30 Industrials."*. ... 83.13 83.60 93.63
50 Stocks.77.58 77.92 88.56
Bonds
10 Railroads.80.55 80.70 88.06
10 Industrials.91.48 91.52 94.42
5 Utilities. 85.14 85.14 95.56
25 Bonds.85.84 85.92 92.11
Trade Checked by
Shortage of Supplies
Manufacturers Too Busy on
War Work to Meet Civil?
ian Demand
Civilian business continues to decline
while there is a tightening of condi?
tions in the non-essential lines, accord?
ing to this week's trade summaries.
"Bradstreet's" says:
"Because of a paucity of supplies at
a time when shelves are being cleaned
out of medium priced goods as a result
of heavy buying flowing from abnor?
mally high wages, linked, too. with
concern about the likelihood of being
unable to cover future requirements,
final purveyors are buying liberally
and as often as opportunity offers.
Yet it must be recognized that the
shortages of merchandise, plus the fact
that ordinary business is being side?
tracked to care for government orders,
operates to lay checkreins on normal
movements, to superinduce closer
i terms of credit, to enhance profits of
; those who may have free supplies, to
create an air of unwonted activity at
a season that is ordinarily marked by
; between-season characteristics, and to
give more than due prominence to de?
mand for goods as distinguished from
actual ability to get supplies.
"Here and there one meets with evi
: dence of conservative buying that is
born of the fear that prices have as?
cended too far, and in connection with
| final distribution there are indications
i that the so-called wealthy classes are
: economizing. While manufacturing is
| characterized by super-activity, it is
j largely made up of war work, and more
and more are deliveries of orders in
j tended for the usual channels failing
! behind, and in consequence contracts
are being accepted subject to the abil
j ity to get raw materials as well as to
turn out the finished product."
According to "Dun's Review" there
is a large and somewhat urgent buy
? ing in many quarters to forestall the
shortages of supplies that are clearly
indicated, but many demands cannot
now be satisfied, and where orders are
being accepted they are subject to
frequent delays in deliveries, because
? of the priority given the government
? shipments. War-time economies are
! being more generally practised by the
civilian population.
./Etna Decision Affirmed
Higher Court Upholds Post?
ponement of Annual
Meeting
The United States Circuit Court of
Appeals, in a decision handed down
yesterday, affirmed the recent order of
Judge Julius M. Mayer in the District
Court postponing the annual meeting
of stockholders of the _Etna Explo?
sives Company, Inc., until after the re?
ceivership had been terminated. The
appeal was taken by interests asso?
ciated with J. & W. Seligman & Co.,
whose plans to put into effect a reor?
ganization scheme are defeated by the
ruling of the Circuit Court of Appeals.
Judge Ward dissented from the ma
Significant Relations
Money and Prices:
Stock of money gold in the country.
Loans of all national banks.
Bills discounted and bought by Fed?
eral Reserve Banks.
Federal Reserve notes in circulation..
Total gold reserve... .v.
Now
$3,042,708,319
.larch 4. 1.1_.
?^,139,225,000
Last week.
$1,122,151,000
1,569,445,000
1,894,404,000
A Tear ate
$3,088,904,808
N'eare. t period
preytous year.
$8,712,862,000
?,-. _*?.?""' ????
$145,023,000
446,501,000
?989,303,000
Average price of fifty stocks.
Average price of twenty-five bonds...
Food cost of living (Annalist index
number).
General commodity price level (Dun's
index number).
Production : I_
Unfilled U. S. Steel orders, tons. 8,741,882
Pig iron (dally average), tons....
Teatorday.
77.58
85.84
-.?.it week.
288.030
May 1
226.665
111? day before.
77.92
85.92
The wee* ...or?.
290.991
April 1.
230.313
?A year ago.
88.56
92.11
A .ear aro.
288.164
A year ago.
208.435
April SO.
April.
109.607
March 31.
9,056,404
March.
_1103,648
1917 yield ?etlmated.
650.828,000
3,159,494,000
1,587,286,000
10,949,000 ^^^
r?-?Iner_/?M or decrease from year before-??
14 road? .-114 road?
First wee!; Month of j?n j (0
mmamammMaAm?jMjMjMj?JSa^?^?^?^?mamama^Sa^Sa^SaU ____.^^"
Gross railroad earnings.+10.0% + 14.2%
Increase or decrease frota lait
Week b?fo_?.
+9.5%
Wheat crop, bushels.
Corn crop, bushels..
Oats crop, bushels..
Cotton crop, bales...
Distribution :
April .10. 1917
12,183,083
A year ago.
111,165
The 181? cjrofl
636,318,000
2,566,927,000
1,251,837,000
11,449,930
Bank clearings.?_, ^?JSf
General :
Active cotton spindles.,.,, 746 893
Commercial failures (Dun'a) :
Number .: April
Liabilities . 905
Building permits (Brad?treefs) : " 114,271,849
<139 c,??> . MUBh
March 31.
?5.4%
Mar?.-??
tear to data.
+4.3%
March.
33,789,656
A year ago.
33,268,615
A year ago,
1,069
$12.587.213
April. 1917.
^^^^^^^^^^^^ $76.287.287
?Gold held by Reserve agents against circulation included in general
fund beginning June 23, 1917. For purposes of comparison it is included
in the 1917 figures.
March.
1,142
$17,672.331
jority opinion of Judges Mant?n and
Rogers, who said that their decision
rested upon two points: First, the
point of jurisdiction, upon which they
decided that Judge Mayer had ample
authority to make his ruling involving
the postponement of the annual meet?
ing; and, second, that the readjust?
ment plan proposed was unfair to the
common stockholders.
Judge Ward, dissenting, took the
view that the merits of the plan were
not at issue. He said Judge Mayer
appeared to have been influenced by the j
feeling that the preferred stockholders
should not be permitted to exercise!
their rights by casting nine votes each I
for the plan against only one allowed
for each common stockholder. He
thought that the sentor shareholders !
should not be interfered with in that |
alleged right unless the question was
definitely passed upon by the court.
Judge Ward added that the plan of re?
organization was not involved in the
postponement of the annual meeting.
I" - ?
Relevant Comment
Bank Notes for Silver Certificates
The Philadelphia Federal Reserve
Bank is requesting the member banks
in its district to cooperate with the
government in turning in their present
supply of silver certificates of the de?
nomination of $5 and upward, which can
be replaced in circulation at once by
Federal Reserve notes. Federal Reserve
bank notes or United States notes. The
withdrawal of the silver certificates is
in accordance with the terms of the
Pittman act, and is not intended to be
! permanent, but is merely a temporary
expedient to provide the government
| with a supply of silver bullion
j promptly. In a few weeks, when Fed
I eral Reserve bank notes of $1 and $2
i denomination are ready, a request will
he made to the banks" to send in the
i silver certificates of the small denom?
inations.
Melting Silver Dollars
Approximately $40,000,000 in silver
dollars held by the Treasury for se?
curity of outstanding paper currency
has already been melted down and
turned into bullion under the terms
of the Pittman law. The total stock
of silver dollars before the melting be?
gan was ?400,672,4:.4. Most of the bul?
lion obtained from melting the dollars
? is being shipped to India.
India Exchange Available
The largo credits obtained in India
as a result of the silver that has al?
ready been shipped to that country are
now being drawn against by the Fed?
eral Reserve Bank of New York. The
local institution is now making allot?
ments of rupee exchange to American
firms which have payments to make
in India. In the open market the quo?
tation for Indian rupees is around 39
cents. It is understood that the re?
serve bank is selling its rupee exchange
on a much more favorable basis.
Rise in Call Rates
Although the rate for call loans se?
cured by mixed collateral rose from 4V_:
' to 6 per cent yesterday at the Stock Ex?
change, the bankers' money committee
did not find it necessary to come to the
assistance of the money market. At G
', per cent a liberal flow of funds de?
veloped which was sufficient to take
: care of the brokers whose loans had
' been called, and the rate fell back at
[ the close to 5?T? per cent. A small
! amount of business was done in call
loans secured by straight industrial
; collateral at fiM: per cent. The govern
! ment made heavy withdrawals from the
: batiks yesterday, which was the prin
. cipal explanation for the sharp rise in
tho call rates.
Cashing Doughboys' Checks
The London County Westminster and
| Parr's Bank, Ltd., of London, one of
i the largest of the English joint stock
institutions, announced yesterday that
it will cash United States army pay
drafts at all of its branches, including
Paris, and will open a forwarding mail
department in London and Paris for
the accommodation of the American
forces, Y. M. C. A., Red Cross and other
war organizations. The Columbia
Trust Company is the New York cor?
respondent.
American Sumatra Soars
There was action aplenty in Ameri?
can Sumatra Tobacco yesterday. The
rapidity of the early advance in this
stock left the tape readers dizzy. The
later reaction was equally spectacular.
Sumatra started tho day at 135, up 2
points. At midday, when it got really
under motion, it spurted to 145. It
fluctuated slightly under that figure for
a time and then beat a hasty retreat in
the closing hour, falling to 133 .4 at the
last, where the stock showed a net gain
of V_ after a total turnover of 30,000
shares. A year ago American Sumatra
was selling in the market at 25. Yes?
terday's top price of 145 was a new
high record for this issue.
Alcohol Issues Strong
Alcohol stocks were strong yesterday
i and held a part of their early gains in
| the face of the sharp decline in the
general list at the close. Distillers'
| Securities got into new high ground at
1 64%, which was the best price for this
I issue since it sold at 78 in 1907. It
I closed Vs up-at 61%. United States In
j dustrial Alcohol made a new high for
I the year at 136?2, afterward reacting to
j 133%, where it showed a net gain of 1
I point.
Views on Tax Legislation
Conflicting views were heard in the
financial district y?.3terday on the re?
ports that President Wilson will urge
the adoption of a new revenue measure
at this session of Congress. In bank?
ing quarters that are called conserva?
tive it was said that the imposition of
additional taxes at this time will do
much to unsettle business. The opin?
ion was expressed that as the Treasury
Department is well supplied with funds
up to fall, it might be better to await
the summer's developments in the war
situation before adding to the burdens
of the people and the country's cor?
porations. On the other hand, the ar?
gument was made that if greater taxes
must come it would be wiser to get to
work on a bill immediately and end the
uncertainty.
Liabilities vs. Assets
According to papers filed in the
United States Circuit Court here yes?
terday the Stock Exchange firm of At
water, Foote & Sherrill, whose main
offices were at Poughkeepsie, N. Y., has
liabilities amounting to $1,096,859,
against assets of $261,767. The failure
of this firm a few weeks ago created a
stir in Dutchess County because of the
social prominence of the partners.
Requa Fixes Oil
Price? for Allies
Fuel Administrator Acts to
Stabilize Petroleum Prod?
ucts' Prices
WASHINGTON, May 24. With a
view to stabilizing the price of gaso?
lene furl oils, and other petroleum
products to domestic consumers, Mark
L. Requa, director of oil supply of the ?
fuel administration, to-day announced
the prices the Allies will pay for these
products for the sixty days from May ?
20 to July 19.
At the expiration of the sixty days j
the fuel administration will take fur- I
ther steps if it is found that to-day 3
action has been without avail in re- |
ducing the price of gasolene and other ;
oils to domestic users in the United
States. ., _. . .
It was pointed but by oil officials
I that while the price to the Allies ap- |
plied to their purchases alone, and not I
to domestic users, the Allies are such ;
large purchasers of petroleum here j
that their price has a powerful effect
upon the domestic market.
The price of standard white refined
kerosene was fixed at 7 Ms cents at Gulf
ports and 8V4 cents at Atlantic sea?
board. Mexican refined oil was fixed
at 6 cents, Atlantic seaboard. The
prices become effective May 20 for
sixty days.
. -_?-?
Higher Prices Won't
Increase Oil Output
Lack of Material for Wells
Retards Production
By F. H. Taylor
Editor The Oil City Derrick
(Special Correspondence)
OIL CITY, Penn., May 24.-Producers
in Eastern fields scarcely have ex?
pected any advance in crude prices.
There is very little available territory
for drilling except in Kentucky, and a
little profit can be mad. on old wells
at present quotations, but they will
not drill because the cost of material ;
i makes any profit at the present prices ?
i prohibitive. An advance in price of 50
I cents or a dollar a barrel would not !
| increase the production in the East.be- ]
| cause the territory is overdrilled.
In the Western fields such an ad
! vanee would be a stimulus for more J
j operations, provided material couid be i
I obtained to equip the wells. The j
i trouble is that since the early part of ]
1914 to the present time the cost of;
all material going fnto the oil in- j
| dustry has advanced 120 per cent, while i
? in Pennsylvania the market for crude j
has advanced only (50 per cent, and in
the mid-continent region, owing to the !
greater depth of drilling, the same pro- i
portion holds good, besides which it is i
almost impossible to get the needed 1
equipment.
If material for wells could be ob- ;
tained readily there would bs more de- '
velopment. If in addition the price j
of that material was reduced, there j
would be a large increase in operations I
in every part of the oil regions. As |
it is now, increased prices are not ex
pected, except in consequence of a !
large decrease in production, due to I
the inability to get material to keep
up drilling operations.
Loans of $91,865,586
Made to Farmers
First Report of Federal Land
Banks Shows Steady
Improvement
WASHINGTON, May 24.?The twelve
Federal land banks, established under
the farm loan act, have made loans
to farmers to the amount of $91,
865,586, according to a statement of
condition for April 30, 1918, issued to?
day by the farm loan board. This
date marks practically the close of the
first year's.business.
The capital stock of the banks has
increased from $9,000,000 to $13,
594,895 and farm loan bonds to the
amount of $83,750,000 have been is?
sued. The banks' excess of expenses
and interest charges over earnings
amounted to $411,954.24, which is about
3 per cent of the capital.
The loans include $68,675,561 at 5
per cent and 523,190,025 at 5?s per
cent. The total payments by borrow?
ers overdue on April 30, amounted to
less than $14,000, and more than half
of this amount is pnly thirty days over?
due. The amount ninety days overdue
is $2,503.
It is said that the excess of ex?
penses and charges over earnings has
been rapidly reduced during the last
four months, as the volume of business
increased. The figures represent prac?
tically twelve months' expenses and six
months' receipts, as it was not until
the banks had been in operation six
months that they had any appreciable
amount of receipts. The expenses in?
clude the cost of appraisal, and part
of the costs of determination of title
on additional loans to the amount of
about $83,000,000, which have been ap
| proved but not yet closed.
Corporate Returns
Casein Company of America.?Report
of the company and subsidiaries for
the year ended December 31, 1917,
shows net earnings of $388,881, com?
pared with $425,615 for the preceding
year. Depreciation amounted to $63,
476, against ,$59,898 for the year be?
fore. Surplus available for preferred
dividends of $82,079, totalled $325.405,
compared with' $365,717 for 1916. Bal?
ance for the year was $243,326, a de?
crease of $122,391 from the previous
year.
Niagara, Lockport and Ontario
Power.?The company reports gross
earnings for April of $256,440, an in?
crease of $64,219 over the correspond?
ing month of last year. Net after taxes
totalled $125,062, against $90,109 for
the same period of 1917. Surplus for
the month amounted to $81,663. Gross
earning? for the first four months of
1918 were $978,955, compared with
$740,204 for the corresponding months
of the preceding year. Net was $341,
498, against $298,392 for the "same
period of the year before. Surplus
after charges amounted to $167,882,
against $127,090 for the first four
months of 1917, an increase of $40,792.
Newport News & Hampton Railway, Gas &
Electric
1918 1917
April ?roe* earning-,.$156,294 $92,872
Net after taxes. 44,730 36,369
Surplus after charges. 24,326 15,832
Executor Trustee
Chartered 1822
The Farmers' Loan and Trust Company
Nos. 16, 18, 20 & 22 William Street
Branch Office, 475 Fifth Avenue
At Forty-first Street,
New York
London Parii
Foreign Exchange
Administrator Guardian
Member Federal Reserve Bank and New York Clearing Honw
The Denver & Rio Grande Railroad Company
Seven Per Cent Cumulative Adjustment Mortgage Gold But
The Committee, .?-pr- scntlng bonds of the above Issu?., has concluded %*.
raiiK.mcnts enabling the Receiver to provide funds for the payment of the In.
terest which matured on the above bonds on April 1, 1918.
The holder? of Certificate? of Deposit will be paid the amounts to which they
are entitled, as interest on their deposited bonds, upon presentation of tbtir
Certificate? of .Deposit, at the office of The New York Trust Company *s
Broad Street. New York C-ty, ??'.companied by proper ownership certificate? ?J
required by the Federal Income Tax law In respect of the payment of such in.
fa^a^sW
ing bondholders acting through the Committee.
Vndeposited bonds . hou?cl be promptly deposited with The New York t-_
Company, Depositary, or with the First Trust and Savings fili? A??rJ?
Depositary. 68 West Monroe Street, Chicago, Illinois, onT thTdc^osIt ^e -?_
dTtede?eiC19V7,rateS ?f DeP08H Wl" b* iBBU<!d "ndV? ?h"? "ffi?? ??r5??
Dated, New York, May 23, 1918.
B. I.. Si-OWKO-, Secretary. ?V?0 T BANVAWi
24 Broad Street, New York City. AIONZO POWER
BERTRAM CCTLEB
HORNBEOWER, Mil.I.ER, GARRISON & POTTER. Comnitti?
Counsel.
IS IT NOT *
SOUND POLICY!
for you to do your bank?
ing business with a Trust
Company?
Such a company not only can
look after your money while you
are alive, but, if you wish, can
act as Executor, Administrator,
Guardian, Receiver or Trustee.
It is a Legal Depository for funds
of every description.
This Company especially attends
to the management of Personal
property and Real Estate and to
the collection and remittance of
rents, interest and dividends.
Write for our booklet
"Management of Your Estate."
UNION TRUST
COMPANY
OF NEW YORK
Eighty Broadway
Wool Plan Completed
BOSTON May 24.?"The Commercial
Bulletin" will say to-morrow: "The
government's plan ror handling the
I domestic wool clip has been completed,
| so far as its essential details are con
I cerned. Further modifications are
likely from time to time. Thre new
! domestic clip is coming forward in
I small quantity, but with fair celerity." ;
-a
Elections
Alba B. Johnson, president of the !
Baldwin Locomotive Company, has j
been elected president of the Railway |
Business Association, succeeding;
George A. Post.
Dividends
Extras
Lawrence Manufacturing Company.? j
An extra dividend of 2 per cent has
been declared, in addition to the semi- j
annual dividend of 3 per cent, both pay- ;
able June 1 to stockholders of record
May 23.
Grasselli Chemical Company.? Extra ?
dividend of 2 per cent, in addition to
the regular quarterly dividend of 1H
per cent on the common stock and 1^
per cent on the preferred stock, al1.
payable June 29 to stockholders of rec- j
ord June 15.
Specials
Nashua Manufacturing Company.-A j
special divider, d of 2 per cent has been i
declared, in addition to the semi-an- |
nual dividend of 5 per cent, both pay !
?able June 1 to stockholders of record:
I May 24.
I -
Regular Declarations
Ajax Rubber Company.?Quarterly divi- ;
'. dend of $1.50 per share, payable June 15 to ?
'stockholders of record May 31.
American Laundry Machine Company.?
Semi-annual dividend of l1^ per cent on the '
common stock, payable June 5 to stockhold- ?
? ers of record May 25.
American Locomotive Company.?Quarter- ,
ly dividends of 11.? per cent on the common ;
stock, payable July 3 to stockholders of rec- |
ord June 14, and 1*4 per cent on the pre- ?
ferred stock, payable July 22 to stockholders j
? of record July 5.
i Atlantic, Gulf ft West Indie?.?Semi-an- ?
i nual dividend of 5 per cent on the common '
, stock, payable August 1 to stockholders of '
[ record June 28. .j
i Calumet ft Heel? Mining Company.?Divi. '
, dend of $15 per share, payable June 14 to
stockholders of record May 28.
Dominion Glass Company.?Quarterly divi?
dend of 1 % per cent on the preferred stock,
: payable July 1 to stockholders of record J-jne
15.
Chesapeake & Ohio Railroad Company.? i
1 Semi-annual dividend of 2 per cent, payable <
j June 29 to stockholders of record June 7.
Genera! Chemical Company.?Quarterly
i dividend of 1 <A per cent an the prefe.-red \
> stock, payable July 1 to stockholders of rec
| ord June 18.
Hocking Valley Railway Company.?Semi
' annual dividend of 2 per cent on the coin
. mon stock, payable June 29 to stockholders
of record June 14.
; National Surety Company.?Quarterly divi
; dend of 3 per cent, payable July 1 to stock
i holders o"f record June 20
I Lehigh Valley Coal Salea Company.?Quar?
terly dividend of 4 per cent, or $2 per share, '
ANDREW .t. McCORMAbK, Auction??
REGULAR AUCTION SALE
STOCKS AM) BONDS,
By ADRIAN H. MCLI.KR * 80K
OFFICE. r,5 WILLIAM ST
WEDNESDAY, MAY 39, lmg.
at 12:30 o'clock, at the
EXCHANGE .SALESROOM
NOS. 14 and IS VESEY STREET
._.Tor Arro""t of Administratrix '
13 . shs. McAllister Steamboat Co
For Account of Whom It May Concera.
li,..8_8hs. Argentum .luniata Mining C?,
9,12. shs Molli. Gibson Cons-llkw
Mining & Milling Co.
75 shs. New Grand Junction Und I
Investment Co.
$347.64 Argentum Juniata Mining Ce Ctt
of Interest. $20. .50 paid on awt
6 shs. Giant Portland Cement ft
prefd.
C shs. Giant Portland Cement ft!
common.
$2.000 Acker. Me.rall & Condlt Ce H?
Deb. Bonds. 1923.
30 shs. Hudson County Coiunnw?
Rrewing Co.
'".shs. Consumers- Pi<? Raking Co,
73 shs. Consumers' Pie Baking Co
$2,000 New York Bottling Co. ?; Raggtl
Bonds. 193...
?2.000 Federal Dyestuff & Ch?ml<_al Corpa
6~. Notes Equitable Trat Co. Qt
of Dep.
$2,400 New York Realty Owners' Incoa
Bonds. .
2,400 shs. New York Realty Owner?. I
FINANCIAL MEETINGS
St. Louis. Mo.. May 16th.? 11? i
SPECIAL MEETING OF STOCKHOLDER
OF
LIGGETT * MYERS TOBACCO 00.
Notice is hereby given that a _p*c_
meeting of the stockholders of Liggett<
Myers Tobacco Co. will be h? Id tt I
principal office. 15 Ex-hange Place, J?
City. New Jersey, at 11 o'clock A. JL ?
Tuesday. June lSth, 191?, for the parpH
of considering and acting upon the SSS
tion of amending th" Certificate of lit?
poration of the Company so as to Incral
its capital stock by the issue of Twnit
one Million, Four Hundred and Nlnitj??
Thousand. Four Hundred Dollars <#M
496.400.00? of "Common Stock B. witht
same rights to dividend? and upon llqa__.
tlon as the present Issued common ?Uta.
but without voting powers, and for tta
purpose of empowering the Board M Dit*,
tors to issue such Increased stock ?$?
such terms and conditions as It may ism
proper.
The transfer book.*, of preferred ??
common stock will be closed for th. p*f*
poses of this meeting from 3 oYlo.li P. ?*
May 2Sth, 191-, to 10 o'clock A. M,--*?
19th. 1918.
By order of the Board of Direct??.
E. H. THURSTON. Secretary? 1
COLONIAL NAVIGATION COMPA?T.?
Notice is hereby given that the saSMm
meeting of the stockholders of th- Co!?*!
Navigation Co. will be held at th? ?*
of the Company. Pier No. 39. North BW*
Gity of New York, on the.4th day of Jt*;
1918, at 2 o'clock p. rn.. for the p_r?*f
of electing directors and officers for <?
ensuing year and inspectors of election*
serve at the next annual meeting and ?
the transaction of such other busln*? *
may properly come before the said ?f*
ing. Polls are to rennln open until 4 t- *
Dated, New York. Slav 21, 191$.
RICHARD E. FITZGERALD.
Secretary
NOTICE IS HEREBY GIVEN THATi
meeting of the Stockholders of J
AUTOMATIC VENT-LATOR COMPA*
will be held at the office of the Com??
No. 2 Rector Street, Borough of MaMj
tan, City of New York, on Saturday, 0
first day of June, 1918. at 12 ?'clockW*
for the purpose of electing two Dirt?"
for the ensuing threo years and "**?
spectors of Election, and for the U?????
tion of such other business as raaypW1
come before said meeting.
WILLIAM J. FLEMING. Jr.. SecTStStf
Dated: New York, May 18. 19H._
DIVIDEND NOTICO__-J
GREENE CANANEA COPPE? <*
42 Broadway, New York, N. T.
The Board of Directors of twJJjY
Cananea Copper Company haa <l*t*'?L,
dividend of $2.00 per share upon itt **??.
tal Stock of the par value of _*?M'?: fi
share, payable on May 27, HI?. *? ,?Jj
holders of such ?hares of record *?? *
close of business at 3:00 o'clock f-/?
Friday. May 10. 1918. The d|?f*%|
pavable only upon the $190.00 sMtm ??j
whleh the Capital Stock Is <*ivta?o. _,
stockholders who have not convene? "J
holdings into shanls of $109.0? f*f Jj
should do ?o without delay tn.?'?Lid|
they may receive their dividend PJJ2?
The transfer books will not be cw"
.New York, April 25. 1918. _?,
J. W. ALLEN, trssstt*^
BORDEN VS CONDENSED Mit? **
PAN Y. M _. -
Preferred Stock D?ridend_>*??, ?
The regular Quarterly divide?? ? j
and one-half U*%> P" cent ^JSM
clared on th? Preferred Stock ^ ?"?2
rany. payable June 15, 1918. *?^JT5
ers of record June ., 1918. Bo?** *
close. Check? toto?^ tss*^
payable July 1 to ?tockholder? of tsem J
Packard Motor Car C-_?p?W/-f5??3
dividend of 1*4, per cent on -"K-Tjilil
stock, payable June 15 to stock!???"? j
ord May 31.
Pittsburgh Rolls Company,
dend of 1% per cent on *.he pr
Plymouth.?Quarterly dividend?^r?
cent on the preferred *t?ck. P*T^
to stockholders of record May -??
Southwestern Pewer ft LifM j^
Quarterly dividend o( 1\ P? Tf\,
preferred stock, payable June 1 ??
ers of r?ecord May 25. .. ?
Standar* Screw C ..?pany^ Owf***! |
dend of 6 per cent on the comrooajJC?
able July 1 to stock bold-re of ?*?*""
United Eaatern Mining C**?***"
ly dividend of _? cent? per
Julv SI to stockholder? of IN