New-York tribune. [volume], June 06, 1919, Page 14, Image 14

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

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ClMilar u^oa reQOest for AK-22K
TheNationalGty
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MahOttca: Nationil City Bank BaaiMia;
Uptawa Ofica: Fifth Are. * A>4 S?,
Correspondcnt Offlce* in J,S Ciritvi
M
To Those
Interested Jn
Listed
Securities.
Complete Marktl Data,
A'eiw RuUeAirta, and
Security Analysea am
available.
Listed Securiiies carried
on conservative margin.
Merrill,
rTlCl1
& Co.
Lynch
InvPsimentB
Commercial Paper
120 Broadway,
New York
Chicago
Detroit
Los Angeles
lienibcrs New York Stock Fxxihanae.
J.K.Rice.Jr.&Co.Buy&Ser
American Alliance 1ns. 3
American Cigar
American Chlcle Com. & PW. t
American Meter
American I'iuno Com. Jfc Pfd.
Atlantic Nat'l Bank
Bankers Trust < o. Stk.
Continental Fire In*.
Del.. Lack. & West. Com.
E. IV. 1SLI-.S Com.
Farmers Loan * Trust Co. Stk.
Fldelity Plierafac 1ns.
Franklin Fire 1ns.
<.eneraJ Baking Com. A Pfd.
(ireut .American 1ns. ,
H. W. Johns-ManTlUo Com.
lnt'l Motor Stocks
lrvltur Nut'l Bank Stk.
Klrbj J^umbcr Com. Ji Pfd.
Ilom:* Insuriince
I.one Star <.ii* Stk. & "Ktcs.
I.ehiirli Valley Coal Sales
Mohawk Valiey
Midland Securities
Nlles-Bement-Pond Crrm.
National Ice & Cou.1 Jst .& 2nfl Ffd.
Otis Elevator Com.
Pyre.ne .Munufmt urinjr
Prnn*.vlvuniu < oal Jt Cokr
?Splltdorf Kl.'i'tric < om.
Beaboard Steel & MangaTteaB
Standard Screrw Com.
Siaiper MonufactnrtnR
Texas Pacilic Land Trust
Te\as Pacific Coal Jt OU
Vlctor Tnlklng Miu-liinr. Com.
ANrijfhX-Martin Pfd.
J.K.Rice,Jp.&Co.
Phoncfl 4901) to 4010 John. 3B"Wjill St_ X. X.
JSew York Stock
Exchange Stocks
Complete facilltJes for
the execntion ot or?
ders in any amount
HarUhorne. Fales & Co.
A/cmeer* N. Y. Stodfr Exchmxe
71 Broadwiy Kttr Ywfc
Telephone 7610 Bowling Green
Maur$,RogeTs b Auchirtcloss
f.N. V. Stawfc j->r>nuise
Membei? J Jf. V Oartlua K*eJfcai,r,
ICUcaso Boanl of Trade
25 Broad Su, New York, N. Y.
Bonds for Investment
Harrte, Forbes & Co.
?TaM atreet. Uran WUOam
NEW YORK
EOB1NSON & CO.
Investment Securities
26 Evchmnf Tlmo* Ne>w York
Mmnhm 2i<ne TmTk BtxtOt JTr-fian?,
Hwk A. K#W? ThmOor* <;. f^rwin
NOBLE & CORWIN
ti ttromi ft x*-w tork
Bankers Trust Ikndem Com.
Nat JBL Cornme/ce Otii JEievator
rr|?ubon? 11U Bmm4
The Markets
A New High Price
Tho significant. thing about yester?
day's stock market is that the loss ln
the average prices of stocks of Tues?
day was more than made up. At
the close of the day the average of
thirty industrial stocks had actually
reached a new high level for the year,
and stood at 108.80.
Concerning "Secondary Reactlons"
Some tommentators, who, after tho
close on Tuesday, had intorpreted the
session as marking the end of the
present movement, and who had looked
for a sagging of prices and a dimuni
tion of activity for a few weeks be?
fore any resumption, were inclined to
alter their views, and wonder whether
Tuesday was not, after all, just a one
day icaction. Tho risc in ca.Il money,
usually assigned as the cause of the
reaction, had disappeared, and tho
rate on Wednesday and yesterday did '
not go above six per cent.
After such a break as Tuesday's,
there is frequently a partial recovery
and then a "secondary reaction,"
which, though not as violent as the j
first extends over a longer period and |
carries prices down even further. But
this secondary reaction usually comes
for a special reason. On the tirst
break banking institutions and "strong
interests" put in supporting orders,
to prevent utter demoralization, and
when recovery has set in, they seek
to let go of these stocks gradually.
But there is no evidence that support?
ing orders, properly so-called, were
?placed in Tuesday's market, and it is
therefore unlikely that strong intex
esta have stocks to sell.
Stock Movement
Yesterday's stock market was highly |
irregular at times. While some ia- i
sues were jumping one-half a point
between sales, others wero falling a
point and more between. Toward the j
end of the day the entiro list became I
strong. United States Steel sold at i
110, up 2 points. Throughout the cop- j
per group were gains of 2 and 3 points..
The most active demonstrations were
those in Central Leather, with sales of
36,000 shares at a gain of ti points;
Continental Can, which gained 4"^
points with sales of 22,000, Studebaker,
which advanced 7, United Cigar Stores
5*4, and General Motors 13..
Copper
A prominent interest identified with
the porphyry copper companies yester?
day was quoted as predicting that the
metal would soon go to 20 cents a
pound. He remarked that last month,
against production of 115,000,000
pounds at the refineries in this country,
sales were 207,000.000 pounds. thus
working into the surplus. He thinks
it significant that Japan, which has
been producing 300,000,000 pounds of
copper a year, has just become a buy?
er instead of a selle.r, and has pur?
chased 4,000,000 pounds here. This in
terview may have been partly respon
siblo for yesterday's unusual strength
in tho copper shares. But London ad?
vices say that the Australian copper
mines and smelters are closed down
on account of the large stocks on
hand and the dwindling demand.
Sainrday Holldays
Though many names are being signed
to tho petition to closo the New York
Stock Exchange every Saturday dur?
ing July and August, thero is opposi?
tion in some quarters on the ground
that the action might draw outside
criticlsm. The criticism is expected to
be to the effect that the brokers raise
their commission rates and then give
themselves an extra half-holiday.
Other objection which the proposal
might meet would bo the traditional
fear of two-day holidays. lt is always
thought that traders sell ont before
such interludes for fear of what may!
happen, though that idea was rudely'.
shaken before the Memorial Day in
tervaL Supporte.rs of the Saturday 1
holiday plan urge in its favor that it
would give employes a rest or time to
catch up with their work at tho end
of each week. Trading lately h&3 cx
ceeded thc mechanical eapacity of brok
erage houses to keep abreast of it.
Such a holiday, it is urged, would bc
doing no more for employes than a
few of the department stores are do
ing for theirs.
Marine Preferrrd's Prico
The present price of International
Marine preferred stock, around $122, is
thought by some observcrs to indicate
a belief that serious opposition will be
met to the plan to liquidate the com?
pany. The directors have already ap
proved the sale of the ships to the
British syndicate, on the idea, as they
announce, to give the stockholders a
vote on the question. Tho meeting of
stockholders to approve or disapprove
the salo of the ships has been called
for June 16. If the stockholders ap?
prove the sale the directors will advo?
cate the complete liquidation of the
company, because they feel that thcrc
would be serious handicaps to operat?
ing it without the British ships. In
caso of liquidation the preferred stock
would be entitled to retirement at par,,
plus $.27 in back dividends, or $127 a
share. A loss on account of the present
sterling exchange rate would bring the
net receipts down to $12)0. The plan
reeommended by tho directors. in their
belief, will obviate the question of a
heavy excess profits tax.
Market Opinion I
Tremendons Forces
We do not agTce with those who as
aert that the present movement of sc?
curities is just a bubble without any
tangible reason or basis in fact. The
truth is that treraendous economic
forces are at work. We see the t;amc
proce'ss as was witnesscd after the
Civil War, only the forces now arc
world v/ide and of much greater in
tenaity. There ia a basis here for
continuatlon of the pTeaent movement
through months to co/ne. -Hwydcn,
St.one & Co.
No Fundam??ntal Change
The eltuatirm has ru>t changed fun
dainentally and H wilj, in my opinion,
b? only a short time When the market
will figain \>* bolllng over, Jt U well
to kn-p in wind that b1g in aid ers can?
not unload because they do not want
tO gtve mv th'.- bulk of their profitfl to
tha government for'taxes,- K. IV. Wag
ner & (',<>,
Cotton
We think the market haa now had
sufflcient reaction to favor purchaaea '
of the late months, especially in thc
event of any fresh declines.?S. B.
Ckaplin & Co.
Steel Common
Do not wait until e.verybody sees
tho merits of United States Steel and
the great busine.ss which it will do
during the next year or two. Buy this
stock now. I think it will sell much
higher and will lead the next forward
movement. But even if such a move?
ment is delayed, Uniitcd States Steel
is a prime investment and it has large
speculative possibilitias.?Block, Ma
loney & &Co.
"Pretty Well Discounted"
Stocks now look a sale on any ad
vances. They have in the last two
weeks reached new high levels that
havo pretty well discounted any im
provement. that will come in general
business in the next two or three
months. On the basis of conditions of
to-day very many arc too high. Very
few steel companies are to-day making
any money.-?Clark, Cliilds & Co.
Monev and Credit
Call money opened and renewed
yesterday at 6 per cent for mixed
collateral, and remained at that rate
for the entire session. Loans on all
industrial collateral were unchanged
at tP/a per cent.
A moderate amount of time money
was offered at 0 per cent, bul. borrow
ers hesitated to bid that figure, and a
few loans v.-ere made at 5%.
The ruling rates for money yester?
day, compared with a year ago, were
as follows;
Yesterday Year ago,
Per cent. Per cent.
Call money:
On mixed collateral 6 5'/2
On indus. collateral ?V2 6
Time money {mixed collateral):
Sixty days. 534@6 6
Ninety days. 534@6 6
Four months...._ 53/4@6 6
Five to six months 5?4@5 6
Bank Acceptances.?Rates were un?
changed yesterday as follows:
Thirty Sixty Ninety
Spot de- days. dayu days.
livery: Per cent Per cent Per cent
Eligible
member
banks ...4A@4 4' 4@4A 4-A @4'/4
Eligible
non-mem
ber banks.4-'e(ri4 4A@4',4 4%@4-&
Ineligible
bankbil]s.5l4@4l/2 5U@4!/2 5l4@434
For delivery within thirty days:
Per cent.
Eligibio member banks....'.4{<s
Eligible non-member banks..... 4>2
Ineligible bank bills. 6
London Money Market
LONDON, JunB 5.?Closing rate for
money, 2% per cent. Discount rates
weTe: Short bills, 3a/i per cent; three
month bills, 3% per cent. Gold prem
iums at Lisbon, 150.00.
Bank Clearings.?Bank clearings yes?
terday were:
Exchanges Balances
Ne-w York-$895,947,646 $61,863,682
Boston . 59,626.727 14,083,647
Chicago . 96,829,850 8,881,955
Philadelphia .. 69.856,849 11,487,881
St. Louis. 27,003,910 10,567,230
Silver.?London, 53%d; New York,
$L09% Mexican dollars, 84Ja,SSc.
.Sub-TTeasury. ? The Sub-Treasury
gained $6,020,000 from the banks on
Wednesday.
Tlie Dollar in Foreign Exehanste
The foreign exchange market was
quiet yesterday and rates were irregu
lar. Rates on London were firm around
$4.61 7-8 for demand bills, but French
exchange declined fractionally, as did
Italian lire.
Neutral exchanges were barcly
steady on light trading.
(Quoted dollars to the pound.)
Week
Ye:--terday. ago.
fterling, demand.$4.6Va" $4.6312
Sterling, cables. 4.62<"g 4.64'/2
Sterling, sixty days.-1.58 "h Lfi2
Sterling, ninety days.. 4.57 4.60>2>
tQuotcd units to the dollar.)
France, checks. 6.51 6.44
France, cables. 6.49 6.42
Belgium, francs, checks 6.67 6.57
Belgiurn, francs, cables 6.65 6.50
Lire, checks . 8.67 8.40
I.ire, cables. 8.05 8.33
Swiss, francs, checks.. 5.25 5.17
Swiss, francs, cables.. 5.23 5.15
(Quoted cents to thc unit.)
Guilders, checks.38v8 39
Guilders, cables.39i'^ 3Qi,4
Sweden, checks.25.55 25.40
Sweden, cables.20.75 25.55
Denmark, checks.23.45 23.40
Denmark, cables.23.65 23.60
Norway, checks.25.30 25.C5
Norway, cables.25.40 25.20
Pesetas, checks.19.99 20.00
Pesctas, cables.20.04 20.03
Japan, yen, checks....5134 51.75
Japan, yen, cables_51% 51.90
Argentina, checks.100.25 101
Argentina, cables.9934 100J 4
Brazil, Rio, check3.28 27.15
Brazil, Rio, cables.281.-m 27.30
Following are the official rates
quoted by the American Relief Admin?
istration on exchange against the coun?
tries on which it has supervision over
all dealings:
Marks to the dollar
Germany . 12.65
Poland .,. 14.25
Finland . 9.65
Kronen to tho dollar
Czecho-Slovakia . 15.50
German Austria. 24
Jugo-Slavia . 23
? -?-.
Syndicate to Tnderwrite
Empire Gas an<l Fuel Notes
Plans h;K<T" bften completed for the
sale of $25,000,000 bond-secured sink
ing fund convertiblo 0 per cent notca
of the Empire Gafl and Fuel Compatiy,
the principal oil produclng subsidiary
of the Cities Service Company. Henry
L. Doherly & Co., syndicate managers,
are for/nlng a syndicate to underwrite
the new issue,
The notes will bo dated June 15,
1919, and mature June ir,, 1924, nnd
nro convertible at any time par for
par into n new is?ut; of H per cent
cumulntive preferr-d stock of the Em?
pire Gas and Fuel Company, The
notes will bc offered at 97',^.
Proeeeds of the note sal? win b?
used in extensiona and for develop
ment work.
Four Directors
Oppose Sale of
I. M. M. Assets
John W. Platten and F. W.
Scott Resigrn From Proxy
Committee; Fear for the
Common Stockholders
John W. Platten, president of the
United States Mortgage and Trust
Company; Donald Geddes, of Clarke,
Dodga & Co.; Frederick W. Scott and
Charles A. Stone, president. of the
American International Corporation, all
directors of the International Mercan
tile Marine Company, yesterday came
out oponly against the proposed sale of
tho British assets and the plan for
liquidating the American holding cor?
poration,
Mr, Platten and Mr. Scott registered
their disapproval of the previous rec
ommendation of the board by resign
ing from the committee that was ap?
pointed to soiicit proxies for the
special meeting callcxl for June lfi,
when the plan for selling the British
fleet is scheduled to he voted upon.
The othrr members of ihe committee
consist of P. A. S. Franklin, president
of the International Mercantile Marine
Company; .1. P. Morgan and Frank A.
\ under!ip.
Mr. Platten's Position
Mr. Platten'said he was opposed to
the sale of the International Mercan?
tile Marine's British assets lar-gely on
the grounds that this transaction would
inyolve the liquidation of the American
shipping companies and other American
assets, which, in his opinion, would
leave little for the common stock?
holders.
"I have been absent from the city
for tho last month, returning Mon?
day," he ndded, "and was not present
at the board meeting when ihe direct?
ors took action recommending the
sale of the British tonnage, and there?
fore did not vote upon the question.
"The same members of the proxy
committee for the annual meeting held
on Monday were used for the special
meeting called for June 16. I was
wired asking for the use of my name
on the committee, but was unadvised
that the transaction carried with it
the complete liquidation of the Inter?
national Mercantile Marine Company.
Learning this upon my return, to?
gether with other circumstances, I am
convinced that the sale is not in the i
best interests of the marine company,
hence the withdrawal of my name from
the proxy committee.
"The sale of the British assets as
recommended would carry with it the
sale of tiie American assets, thus
throwing a heavy burden on the com.
mon stockholders. The loss of other
valuable equities such as good-will and
important docking facilities in this
city would also be entailed. In addi?
tion to the above, the probable lower
taxes applying to the British com?
panies and tho improved current earn?
ings and the better outlook in this
respect, in my opinion, are excellent
reasons for eontinuing the company
as a goinjr coneern. I am, therefore,
absolutely opposed to the proposed
sale."
Franklin Issues Statement
In announcing after a meeting of the
Marine directors yesterday that the
four members of the board named op- l
poscd the sale of the British assets
Mr. Franklin said that Mr. Scott, al-!
though he was a representative of the
old preferred stockholders' commit?
tee which fougbt the bondholders' re
organization plan three years ago, !
never approved of the plan. Mr. Plat?
ten and Mr. Geddes wore members of j
the common stockholders' committee. |
Stockholders were informed in a state- :
ment signed by E. E. Parvin, secretary, j
that proxies already sent in will stand j
unless notice of revocation is received I
by the company, and voted in favor of j
approving the sale.
Mr. Plattea declined to state yester?
day whether he would carry his fight
against the liquidation plan to the ex-J
tent of forming a special committee)
to ask for proxies to be voted against '
the proposal. He intimated, however,
that such action was a possible de?
velopment of the n.-ar future. Both Mr.
Platten and Mr. Geddes believe thai the
complete liquidation of the I. M. M.
would involve the payment of heavy
government taxes by the company.
Denies C.unard Line
Interest in Mnrine Deal \
^ Sir Alfred Booth, chairman of the |
Cunard and Associated Steamship !
Lines, yesterday denied that tha Cu- I
nard Line was a member of the syndi- I
cate which, it is reported, has offered
to purchase the English assets of the
International Mercantile Marine Com?
pany. It had been generally assumed
that the Cunard Line was one of the
leading members of the syndicate. Sir
Alfred said he did not know what
British companies had made the offer.
He made these statements to re
porters after deiivering an address
at the final meeting of the season
of the Chamber of Commerce of the
State of New York, where he was the
chief guest.
Speaking of the shipping outlook, he
declared:
"The outstanding fact to-day is that
America, with her mercantile marine,
has stepped right into the place which
Germany occupied before the war.
"As a British ship owner?quite
apart from the ties of blood and busi?
ness which unite me to this country?
I welcome the change, and I will tell
you why.
"The operation of steamships in for?
eign trade is of its very nature inter?
national. Lines Under various flags
operating in the same trade must work
together, or in the long run the trade
and prosperity of the world wi'.l suf
fer. With the Germans the scrap of
paper principle was always in the
background; but Americans look upon
business agreements in just the same
light that we do. If we don't mean
to keen them we don't make them.
Moreover, Americans in the past have
always treated all flags alike, without
favor or discrimination, and I believe
that they will continue to do so, be?
cause this is the only basis upon which
international communication can be
freely developed.
"The horrors and suffering of the
great war were brought about by a
narrow and selflsh nationalism which
aimed at world domina^ion. I believe
there i3 a higher patriotism which
will make world cooperation its ideal,
and that on the great English-speak
ing nations is laid the responsibility
of trying to make that dream come
true."
Sir Alfred represented the employ?
ers of marine workers in the threat
ened united strike of tho "Triple Al?
liance" in Great Britain in February
and March. He narrated the progress
ol' the negotiations which led to a
scttlernent, and said that these con
clusions were to be drawn:
Results of Marine Strike
"First, employers of every class of
labor must organize themselves into
associations for dealing with labor
affairs exclusively, with an export sec
retariat, and there also should be na?
tional federations of tTiese local as?
sociations.
"There are three reasons for this:
"To prevent the prehistoric em
ployer from putting the fat in the fire;
"To prevent the weak employer from
lotting you down;
"To enable employers to meet or?
ganized labor on an equal footing and
without delay.
"Second, you must eonduct your ne?
gotiations in such a way that if a
strike oecurs public opinion will be
on your side. Easier said than done,
perhaps, but a real effort to put your
self in the other fellow's place will
go a long way to help you.
"No great strike can succeed without
support from outside opiniojp. It is the
business of the employers to make it
clear that they have tried to meet
legitimate demands in an absolutely
fair spirit."
Tobacco Products Holders
Get Chance to Subscribe
The Tobacco Products Corporation
last night announced that its preferred
and common shareholders of record of
July 1 next would be permitted to sub?
scribe share for share for the stock of
thc newly organized Tobacco Products
Exports Corporation, which has taken
over the foreign factories nnd business
of tho parent company, at $10 a share.
At. present the 450,000 shares of the
oxport. corporation are held by the
parent organization, which will retain
185,000 shares. The stock has no par
value.
Maxwell-Chalmers Plan
Negotiations for the consolidation of
the Maxwell .Motor (ompany. Inc,
and the Chalmers Motor Corporation
were yesterday reported nearer com
pletion than at any previous time, nnd
tho terms which the directors of both
companies aro considering for thc
issue of new stock for the proposed
Maxwell-Chalmers Corporation became
public.
lf the plan suggested is adopted a
new corporation having approximntely
400,000 shares of no par value will be
launched, with Maxwell lst preferred
getting 120 per cent in new stock,
Maxwell 2d preferred 60 per cent and
Maxwell common 70 per cent, and Chal?
mers preferred will get 90 per cent
in new stock and Chalmers common 15
per cent.
Sign i fi c a nt R e I a t i o n s
Money and Prices: Now
Stock of money gold in the country. . $3.092,430,916 $3,042,71L222
March 1. 1919. pt^Stag^w
Loans on all national banks. $9,691,187,000 $9,139,225,000
Their surplus reserves..[[ 76,981,000 75,920,000
Bills discounted and bought by Fed- M^?3m, ?? Armr w
eral Reserve banKs.. pljo'SoSrS $1,204,587,000
Federal Reserve notes in circulati'on 21602?fiOOn 1.526,232,000
Total gold reserve. ~.1?U 16,000 1,327,000,000
Average price of fifty stocks. '"qos' '^"'g^go'* ^"gi*0
Average price of twenty-fivc bonds.. 87.66 87.62 85 38
Food cost of living (Annalist index Jftg S??' The weok befora. A year aim
number) . 309.961 313.041 283.577'
General commodity price level (Dun's ?of.$Vx<, A*>rt!!- Ayearaao
index number).222.193 219.973 226.665
Production: Aprti?. Mweh g,
Unfilled U. S. steel orders, tons. 4v?fv?'685 ^,430.572 8,741,882
fij? r>fK> r^i'^l.-. ?* year ngo.
Pfg iron output (daily average), tons foYvl,, 82'607 111.175
1 ? yield, estlmated. Xlie ini" crrri
Wheat crop, bushels. 917.449.000 636.655,000
Oat crop, bushels. 1.538,350,000 1,592,740.000
Corn crop, bushels. . 2,582,814,000 3,065.233,000
Cotton. 500-lb. bales......." 12.022,601 11,302,375
' -Increase or docrense from year before_
_.. ., l'rnnl r-"*" <-:'as* I roada-,,
J>ih1 ribntion: Third woei, Month ?. T , ,
ln May. Marrl, l?' u1 J?
HfVfto- rto~ March 31.
Cross railroad earnings. , , ," 4 2.8% +19.5%
. J.aul wci>lc Vt'oek l*>f.>r.. v _.
Rank clearings.\. ' 15-9% +29.4% '^11.1%
General: Apr)1 M
Active cotton eplndles. 33.312,026 32,642,376 Z3J3Aflfa
Commercial fallures (Dun's):
.Niimbei' , , Majr, Aprll A yea.r acj
Liabllltles ........... **1 543 880
Bolldlng permlts (Bradstrect'a)";"" *1T,?I5?;*51 *11'450-4?2 $13,134,672
(151 cltlcH) aoTVaoion A"r11- IM*.
s|. $83,168,786 $49,953,803
Independent Packers in
$165,000,000 Merger
J. S. Hawkinson Leaves Wilson
& Co. to Head New
Concern
Jamea Imbrie, head of the banking
house of Imbrie & Co., announced yes?
terday that eight independent packir.g
houses would be merged in a new
concern capitalized at $165,000,000. He
further stated that J. S. Hawkinson,
of Chicago, had resigned as vice-presi?
dent of Wilson & Co. to accept the
presidency of the new concern.
Complete details of the merger will
not be announced until Mr. Hawkin?
son arrives in New York next week,
Mr. Imbrio said.
The new concern is expected to en?
ter into competition with the other big
packing firms in this country and
Europe. Packing plants, it is said, will
be operated in the United States and
Canada, and eventually in other for?
eign fields.
F. S. Snyder, head of the meat divi?
sion and member of tho executive com?
mittee of the United States Food Ad?
ministration, is to become an execu?
tive of the new company, according to
Mr. Imbrie's statement.
New York Central
Fails to Ear ii Its
Rental Guarantee
Only Half of Compensation
Paid by Government at
End of Year; Revenues
Set New Record
Net income from operations of the
New York Central Railroad in 1918 feli
several million dollars short. of the
amount guaranteed the road under the
Federal control agreement, nccording
to the annual report issued to the
stockholders today.
Compensation allowed the company
by the Federal Railroad Administra?
tion for the use and control of the
property of the road and its leascd
lines was $55,802,630 for the twelve
months ended December 31, whereas
the net income amounted to $52,230,
407.
At the end of the year there was
due the company from the government
on account of that part of the annual
compensation that had not been paid
$27,072,084.
Railway operating revenues of the
company in 1018 aggregated $209,270,
9.20, a new high record, and an in?
crease of $53,003,439 over the previous
year. Operating expenses amounted to
$210,037,8-18, an increase of $57,039,943.
Freight revenues of the New York
Central increased from $135,979,337 in
1917 to $175,869,945 in 1918, while pas
senger revenues increased $10,382,795
to $60,370,139.
During the yenr the Director Gen?
eral of Railroads allotted to the com?
pany 4,500 freight cars estimated to
cost $3,201,000 and 120 locomotives, es?
timated to cost $6,192,955, a total of
approximately $19,393,955. Of this
equipment 2.550 freight cars and 114
locomotives were delivered. The Di?
rector General also allotted the com?
pany as less'ee o? the Boston and Albany
Railroad, ten locomotives, estimated
to cost $022,770, for use on that road.
The report states that pending tlie
execution of the agreement between
the Director General of Railroads and
the settlement of accounts thereun
dor, the company borrowed from him
$20,000,000, for "which it gave its li
per cent demand notes. Of the notes
so given $13,500,000 were secured by
collateral, $0,500,000 being unsecured.
The balance sheet as of December
31 showed cash of $8,993,280. comoared
with $13,407,045 the year before. In?
vestments in stocks and bonds of com?
panies apart from the system were
practically unchanged at $45,000,000.
The renort of the Cleveland, Cin?
cinnati, Chicago & St. Louis shows net
income of $16,367,65fj for 1018, com?
pared with the $9,938,507 compensation
allowed by the Railroad Administra
i ion.
Net income from operations of the
Michigan Central Railroad Company
in 1918 amounted to $15,711,942, an in?
crease of $6,825,555. This compared
with the Federal compensation of $8,
955,107.
Midvale Steel to Spend
$8,000,000 on Plants
Also Plans to Launch Important ;
Welfare Work on Rebalf
of Krnployes
The Midvale Steel ?and Ordnance
Company announced yesterday the
launching of an extensivc reconstruc?
tion programme at its principal plants
involving an outlay of approximately
$8,000,000.
At the same time important welfare
work is to be uudertaken on behalf
of the employes, including the adop
tion of a pension system, effective
July 1, and the making of advances
of funds to the men to enable them to
own their own homes. A new hospital
will be built at. .lohnstown for the
employes.
"The directors and officers of the
company," said the statement issued
yesterday, "firmly believe that the
interests of the co-mpany are identical
with those of the communities in which
the various plants are located. They i
also believe that the idenl community j
is one in which all, or at least a ma
jority of, the citifens own their own
homes. In order to assist in bringing
about. this condition, a comprehensive
plan was authorized whereby employees
will bo materially assisted in the pur
chasing of homes. Under this plan
the company will advance 90 per cent
of the total cost and will extend pay
ments over a maximum period of
twelve years."
The appropriation for reconstruction ;
will bo largely expended at the blast'
furnaces and open hearth department,
of tho Franklin plant of the Cambria
Stoel Company at Johnstown, Penn., in
replacing wornout equipment nnd
modorni/.ing the- plant. At Nicetown !
an electric furnaco is to bo erected. '
At. Coateaville the principal item will I
be tho construction of a largo plant
for tho special heat treatment nnd i
llnishing of plutoa und othor steel
producta.
Mexico to Resume
Negotiations With
New York Bankers
Financial Agent of Carranza
Government Says Plans
for Rehabilitation Wait on
Congressional Legislation
Contrary to the impression that has
spread that the elTorts of the Carranza
government to work out a plan with
New York financiers for the financial
rehabilitation of Mexico have been
abandoned, Dr. Alfredo Caturegli
financial agent of the republic here
said yesterday that as soon as the
necessary legislation is enacted bv the
present Congress Luis Cabrera, Secre?
tary of Finance, or a representative of
the Cabinet member, will come to New
York to resume the negotiations.
Ka.aelo Nieto, acting Secretary of
i Finance. who conferred with bankers
here, returned to Mexico two months
ago and reported to his chief the con?
ditions on which Mexico could get
financial assistance.
^ The present Congress, which the
President called into extraordinary
session on May 1, will consider pro?
posed banking legislation and a law to
divest the Mexican constitution of its
retroactive features in regard to oil
lands held by foreigners. The terms
that Mexico could offer in return for
j financial aid are contlngent on the
passage of these laws.
Dr. Caturegli said that the Congress
is at present deliberating over a series
of labor laws providing for the eight
hour day, workmen's compensation,
peaceful picketing and other safe
guards for the rights of workers. The
administration, he added, will ask
Congress for authority to connect the
united railroad lines of Yucatan with
the Xational Railways of Mexico sys- '
tem and to build a new road from
Sonora to Lower California. The gov
ernment's ultimate plan. the financial
agent explained, is to get by purchase
the complete ownership of al] railroad
lines in Mexico. A foreign loan would
probably be necessary to enable the
government to compensate the owners
of securities of the lines that have
been taken over.
The agent declared further that the
government is now building new lines
in Jalisco, and has just finished a
line 150 miles long in Zacatecas and
Durango.
Business in Mexico, measured in
dollars, will be better in 1919 than
ever before and twice as large as in
1914, when the Huerta regimo was
overthrown, Dr. Caturegli said. Most
ol the goods imported were coming
from the United States.
Regarding the advnnce of General
Angelo, Dr. Caturegli expressed skepti
cism and said that reports of his suc?
cess were inspircd by hostile interests.
He insisted that no military problem
harassed the present administration,
only protracted banditry.
?-????-~_
Long Lines Form
To Get Paris Bonds
PARIS, June 5.- Tho city of Paris
loan was put on sale in 400" offices to?
day and new queues were seen in the
streets.
Ordinarily only tho milk sellers and
tobacconists have lines of patrons be?
fore their doors at opening time. To?
day there was in front of every bank
when it opened at 9 o'clock lines of
persons waiting to subscribe to the
new loan.
The is.-uo is for 1,500,000,000 franes
at a price to yield 4.65 per cent Hold?
ers of city of Paris short time bonds
were given preference in the exchange
of their bonds for the new loan and
as a result there was only 650,000 000
francs worth of bonds to be sold when
subscriptions opened to-day.
Stroinherp: Carbnretor Earned
S.>..">3 a Share Last Year
The Stromberg Carbureto,- Companv
oi America, Incorporated, reports net
profits for the year ended December
31, 1918, of $79,097, equivalent to $5.58
a share earned oti the oustanding 50 000
shares of no par value, compared with
$318,819, or $6.37 a share, in tho pre
ceding year. N'o provision har, been
made for Federal taxation, as the
amount has not been definitely de
termined.
Net sales of the Stromberg Motor
Uevices Company, the entire capital
stock of which is held bv the Strom?
berg Carbnretor Company, were *?>
100,373. Operating profit after cost' of
?sales and expenses was $384,781.
-???-?????__
Investment Bankers
Acquire Oil Properties
J. S. Bache & Co. and Colgate,
iarker & Co., oi Xew York, and Coch
rane- Harper & Co., of Boston, have
formed a syndicate and acquired oil
wells and refining pronerties in Texas
Oklahoma and Louisiana. New stock
will be issued. it was learned, but de?
tails as to the forthcoming securities
and the names of the companies in
volved are not yet sufficiently formu
lated for public announcemerir jt was
said.
More Gold From Canada
Gold bars amounting to $5,500 000
arrived at the Assay Office from
Ottawa, Canada, yesterday for the ac
count of J. p. Morgan & Co., repre?
senting the British government.
This is the second shipment since
the movement started on Tuesday
making $12,800,000 that has been
brought in to date. It ia understood i
that the movement will agerera'e
about $50,000,000.
Dividends
Extras
Fifth Avenue Bank.?An extra dlvldend
of 56 per cent has been declared ln addl.
tion to the regular riuart.rly dlvldend of
12* Per rent, both payable Julv 1 to
stockholders of record June 30.
Regular Declaralions
American Snufl? |. Q.JSfy'T/SnS'ft
?lu 1 Vi pr, Q.1 ii! v 1 .lune 14
Am Steel Found 76c. Q..June 80 lue 9
Allls Chalrnera, 1 \ pf, Q. .july lr> J3?1 .',;,
<!o % pf, Aoo.Inly ir Juno S0
llanlc of Cuba, fi, S-A-Julv l June 20
('lu',',V',1ll,0'ly' ^ Ilf' Q--.'uli- 1 June 2(1
A. Plok & Co. 2M,, Q.Au?. 81 Aui 1
Nat OU of N J. 3 pf. Q...July 15 Jufy 1
r U Beo. 1 %, pf, Q.Juno37 Jun. 17
Tex-Ken
Oil
CORPORATION
Full Information
on Application
TRIPPE & CO.
15 BROAD ST., NEW YORK
Telephone Hanover 5875
Texas Pacific
Land Trust Ctfs
J.K.JRiee,Jr.&Co.
* '' M '' " to401 Uohn. HWilIBi v v
Copy or 77 ,,?, on requ ;(H'
STANDARD
WEEKLY f^ ?llf iik
^^ UAILED
g !(<
g INVESTORS
I (iv REQ1 KST
CARLH.PFC'lZHEIiVIER&Ca
Phone ?860-l-8-8-? Broad. (6 Itr?a.l m \ y.
r'I'MMAKV
ON
STANDAH1) OIL
ISSI ES
Liberty bonds
.1 . di nomiitat |
',; ?' " :' on tha t lofiing ?. to dai
$50.06 for afflO?3Vi".i Bond. 57 Coupona
?','?!!:''"?? e'?-'" '"'? ?""?'? i (,,??.?,
$4 7.77 for a $50?3d (',?? h??i. ?<?,.???
$47.26 for a*50?4th .?,' . H. ;i. . , ? *
$40.00 for a $50?5th ?%% Vlotorj !.,;,.,
PURDY & CO.
Trl. John 3174-5-6-7.
M l'm.- Sf.. V Y.
Franklin
trust co.
dlcbBskcd r888
ifi-n ? o? 4> """ s' Madiaon \
1 : W ? |,oul M
V V 0/>(r
est (
Liberal Interest
on daily balances. ..
Metropolitan Tru?t Company \
of the Ctty of Nrw V.-rU |
Wall str??-t. 710 Fifth Arrn-i- J
Expects Savings
To PurrliasrCvoof!
Foreign [ssues
Savings banks of tho counl be
depended upon ro absorb ?? v
large amount of foreign
according to Milton W. Han
retary of th. , avii . ?. . ' . ,
the American Bankers'
provided they arc assured of i
lute safety and soundm s o
curity offered.
' Much has been writtei
said Mr. Harrison yest. i
necessity for thc absorpti, i
quantity of foreign ob
American investors, !
tabi ity to ri, ......
situation th" pressuro of ?
sity may tend to hasten 1
the \'u.<U of savings bank a
investors will be inn led I
stantial amount in fon ..
"An amendment to i
York State permitting bucIi
has not as yet been pr. po
Legislature, nor has I , .
discussed by tho Savi , As?
sociation of the State i f
which is tho author I |
tive b,?,iy for saving thia
state. However, durin
sion of the I ? .? .
cut a bill '.'.as j, ng, |
inga banks to 'invest n i ?
ing 10 V,.Y cen1 of thejr , ,
and surplus in the < I
government of the Kii Great
Britain and Ireland, and tl ? govern?
ment of the French peop ? .
government of the Dominion of Canada,
or any of its provinces, pr i n
obligations havo a fixed and lefinita
maturity and shall be the direel ob
ligations of such govei prov
ince and that the full faith and credit
of such governnient or province shall
be pledged for its payment, principal
and interest.'
"It ia by no means certain that the
other mutual savings bank stato? will
follow the wording of this law, which
would permit investment in the hondl
of Rritish Columbia, for ? xatnple,
which are not exactly up to thi atand?
ard of what a savings bank ??
should be. The restrictions which will
be imposed on foreign obligat ona by
such states as N\-w Vork and "
chusetts will doubtless be more clearly
defined, possibly to include Buch bonda
as those which were issued bj the
American Foreign Sccurities Company
in 1910, which was an issue of >'?'?*?"
500,000, dated August 1, 1919, for three
yeara at 5 per cent. secured by the
bonds of foreign governments owned
by the French government under its
plodgo to the American Foreign S$*
curitiea (.'ompany. It ir reaaonable to
aaaume that foreign security companies
will be formed with this very purpoao
in mind."
The resources of the 626 mutua! sav"
ings banks in the United States. Mr.
Harrison said, are cloae to |5,000,000,
000.