davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Local Traction Issues
Under Heavy Selling
T. P. Shonts Says Municipal
Operation of marlborough
Is Not Likely

Heavy selling in the traction issues
on the Stock Exchange yesterday, even
before the news flashed over the wires
from Russia that Kerensky had been
deposed. brought forth statement
from Theodore p. Shonts, president of
the Interborough Rapid Transit Com
pany, that this was done presumably
on the theory of municipal operation"
There can be no municipal operation
of the Interborough lines except under
the terms of our contract with the
city" said Mr.. Shonts. The title to
all subways in New York-those in OPP
Grafton and those in process of con-
struction-now rests in the City of New
York. The Interborough is only ten
ant operating under a ease.
"Undcr the terms of this lease the
city cannot take over the existing sub
way as q whole until the expiration Of
the lease, fifty years hence, nor the
new subways now building until az
least ten years after they are COM
pleted and put into operation, and then
only on d remunerative basis, the for
mula for which is stated in the lease.
As the city's partner the Interborough
is now carrying out and always has
faithfully carried out all its con-
tractuai obligations, and expects to
continue so TO do.
"The present earnings are greatly in
excess of original estimates, and unless
the growth of New York City should
20 below ITS former average OF increase
these earnings should continue 20 grow
faster than orr estimates
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Current Comment
Cooperation, Not Socialism

There is much talk about the growth
of socialism in connection with the
present activities Of the government.
But socialism presupposes that indus
tries shall ne owned by the state,
whereas the railroads and factories
regulated are still owned by private
capitalists, who are enjoying by far
the largest profits in history. What
we are getting is not at all socialism
but a degree of cooperation between
business and the government. which
most European nations have hitherto
enjoyed. and the lack Of which has long
been a conspicuous curse TO business
conditions in the United States. The
only enterprises which SAVIOR Of state
socialism are the formation OF the
Emergency Fleet Corporation and the
governments Grain Corporation, which
is buying wheat on large scale. After
the war is over, however. the Grain
Corporation will doubtless be dissolved,
and as rapidly rs possible it may be
presumed that the Emergency Fleet
Corporation will sell or lease its ships
to private corporations. - Hereunder
Hamilton Institute.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09

1t is asserted in many quarters
that the recent lull in industrial ac-
tivity was caused in large measure
by uncertainties resulting from gov
eminent price fixing. This may be
true, but as good an authority as
"The Iron Age" holds that price
fixing has nothing whatever to do
with the matter. On the contrary,
it believes that the fixing of prices
has tended TO stimulate industry,
because prices had become so high,
before the government interviewed,
that they tended to restrict con-
sumption. IF purchases are not
made freely at set prices" "The
Iron Age" says, cit cannot be argued
that there would have been more
buying if prices had BEEN allowed
to remain at higher levels. Eventu-
ally market conditions would have
forced various price readjustments,
and the chief question is when the
readjustments would have occurred.
If delayed, the readjustment might
have proved more injurious. Hold
ers Of material always experience
losses when market values decline,
and if the prospect Of government
price regulation held over the sit
uation for months preceding the
actual inception of price fixing had
the effect of causing holders to re-
duce their stocks the situation to-
day is in that respect better than
would otherwise have been the case.
1T is quite possible that the
present unsettlement is the one that
was due the country, according to
precedents, when it entered the war.
IL So, we have been very slow, in
stead Of quick, as Americans usually
think they are, while it is also to be
observed that in that event we may
later feel the quickening effect of
war upon industry that is usually
felt in a country following the dis
turbance caused in the first place"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Railroads Build
Up Their Side of
Rate Raise Case
Western Lines to Apply for
Reopening When Hear
ing Ends

WASHINGTON, Nov. s.-Some OF me
railroads represented at the hearings
on the proposed Is per cent increase
in freight rates submitted detailed
statements to the Interstate Commerce
Commission to-day in which they elao-
Grated on the testimony given ye5ter-
day before Examiner Disque.
Tomorrow testimony regarding gram
rates will be given. Testimony regard
ing petroleum and its pro luc.s also
was scheduled TO be heard tomorrow
but. as it probably will take an entire
day, it likely will be postponed until
later in the week.
The railroads propose including live
stock and meat traffic in the 10 per
cent increase, and it was reported to-
night that the carriers probably viii
offer no additional evidence on that
subject, relying upon the presentation
made by their executives and counsel
of what they described as a serious
unduCldl COHuiblOu NOhAipheihS NN
lines.
To complete the formal records in
the case railroads filed written ap-
plications for permission to raise
rates 10 per cent, excepting rates on
which increases were granted several
months ago.
The application refers particularly
to commodity rates and special per-
mission is asked to raise rates on
anthracite coal to Eastern consump-
tion centres by an average of about
Is cents a ton.
The New Haven and Central New
England railroads to-day joined the
movement for higher passenger fares
in New England by asking the com
mission for permission to raise mil
age rates from pa to 212 cents a
mile and one-way passenger fares
from 2ts TO 22l cents. The New
Haven also sought authority to in
crease a number of class freight
rates by varying amounts ranging
from 10 to 20 per cent.
Western railroads will petition to
reopen their application for 10 per
cent allowance in freight rates as
soon as the hearing on the applica-
ton of Eastern roads is completed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Am. Tobacco Co.
Sells S25,OOO,OOO
Short Term Notes
Issue To Be Rediscounted
at Federal Reserve Bank,
Is Report

The American Tobacco Company mas
sold s25,0O0,0O0 ninety-day per eea'
notes TO a syndicate composed OF the
Guaranty Trust Company, the chase
Securities Company and Kidder Pea
body g. Co. Announcement OF this SAFE
Yesterday was said IN banking circles
to foreshaiow red scouting ~ the
Federal Reserve banks on a large seaie
of the short term obligations e I'M
portant industrial corporations.
The notes of the tobacco concern, It
was learned, viii be renewable up 10
two years, and each renewal vii. 90
guaranteed by the banking syndicate.
Through liberal Interpretation T ne
reserve act, it is understood, they sill
be placed in the same category ss cr-
binary commercial paper and therefore
will possess the rediscount privilege.
Action of this character was consid-
cred necessary because Of the difficult
ties corporations arc now meeting m
going into the open market 20 of'ain
needed working capital
The securities that viii be acoep,t d
at the Federal Reserve Bank Tor re4.s-
count. an official of chat institution
pointed out yesterday. mat Dr. OF
self-liquidating character lait, 3. =
said. will probably preclude the sa3H
term notes of railroad companies. Fa"te
borrowings are usually placed H ine
class called fixed capital. Howe %
a railroad should want 70 issue 1o-"- %
pay for, say, large consignment u
coal, it is regarded likely that the end
ing bank could rediscount them g re
Federal Reserve Bank.
In the case Of the American To-
baccO Company the money borrowed
will be used for the purchase o. leai
tobacco and other raw material.
the notes are renewed for q full year
they will cost the company 7 per cent
as the banking syndicate vii. charge
a of per cent for renewals.
In explaining the process by whiea
the notes may be rediscounted az the
Federal Reserve Bank a representa-
tive Of one OF the banks IN the Ameri'
can Tobacco syndicate took as an eN'
ample the French credits placed ~
this country through William P. Bon
bright & 60.
The French loans became effective
by the French banks drawing their
drafts on American banks By an ar
rangement under which the drafts
were accepted. payable three months
after acceptance. and in turn, were
handled by banks and brokerage
houses dealing in commercial paper
who, in turn. could take them 10 the
Reserve Bank. The acceptances "ets
taken up by the proceeds OF the re-
newal drafts.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
The Dollar in Foreign Exchange

Russian and Italian exchange rates
broke sharply in this market, on the
unfavorable news from abroad. Rubles
dropped to 117s cents, off Il cents, on
the Petrograd advices telling of the
overthrow of the Kerensky govern
ment. The low record for rubles is
liz cents, made in September
The break in Italian exchange car
ried the rate to the equivalent of s.39
lire TO the dollar This compared with
8.04 on Wednesday and established a
new low record for the war period.
Closing rates yesterday, compared
with week ago, are given in the table
below. American bankers have sus-
pended all dealings in German and
Austrian exchange, so that daily quota
tions for either marks or kronen are
no longer available.
(Ouoted doIizrr tn the nonrx
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Buys American Tractors

Orders have been placed BY the
Portuguese government. according 70
". S. Lourie, American Consul Gen
eral at Lisbon, for twenty-eight Amer
lean farm tractors. OF the numpe'
seven are machines Of % to 30 horse
power and twenty-one are light tfae'
tors of II to % horsepower. Ten az
ferent makes are represented m y"
purchase. and the government p'v
poses to lease the machines TO farmer,
at fixed daily rate. IL Is proeSp'S
that additional orders will be nlsesSs
as soon as the styles and capaeiY '.
the tractors best suited 20 the COW
try are determined by actual eSpeI
ment under the direction Of the ASn
cultural Department -
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Deposits in Danish
Savings Banks increase

The savings banks Of Denmark have
greatly prospered during the war. ac-
eording to n statement by the Danish
inspector Of savings banks. He say.
that the combined assets of these in
stitutions, which were s26s. 904 900 on
March 81, 1913, have increased by ID
per cent during the war. Up to now,
according 20 the inspectors report,
there has been but little unemploy
ment and wages have been good, and
people are inclined to save more than
usual against a rainy day.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Money and Credit

Conditions in the local money mar
ket reflected an easier tendency yes
tcrday AZ the Stock Exchange call
money was plentiful at a ruling rate
Of 4 per cent, with some loans being
placed on a basis Of per cent. The
demand for call money was somewhat
lighter than usual ~ result Of the
heavy liquidation in securities.
Ia the market for time funds loans
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
News Digest
Foreign

London Stocks.-LONDON. Nov. s.
Cheerfulness marked the early dealings
on the Stock Exchange to-day. The wal
loan, foreign rails and shipping. iron
and steel shares were prominent lead
ers. and despite the Russian news. prices
closed near the best. Russian bonds
however, declined point, and mines
were alphabetically weak, while Rus
sian exchange rose to 375, making the
ruble worth barely 612d. Japanese
and Italian bonds were firmer.
Money and discount rates were quiet.
Paris Boursc.-PARIS. Nov s.-Trad-
ing was quiet on the Bourse to-day.
Three per cent rentes. 60 francs for
cash. Exchange on London (unofficiaD
q francs 39l2 centimes.
Five per cent loan, 81 francs SO
centimes.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
New York

Stock Exchange Seats Lower.-Three
memberships were sold yesterday al
substantial declines from the last pre-.
vious. sale of $4,000. The respective
prices were $4,000, SAC, 800 and $4,000
The purchasers were W. Charming
Burbank, Sydney Lewinson and Oscar
L. Schmidt. Edwin VI. Friedlander and
!. Wistar Kendall have been elected
members of the exchange.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Stocks Resume
Slump on the
Russian Upset
Many High Grade Securi.
ties Are Thrown Over
by Investors

Liquidation broke out afresh in an
other exciting millon-share session on
the Stock Exchange yesterday. Forced
selling of weakened margin accounts
and heavy offerings Of investment
holdings drove prices sharply down
ward 20 new low records, declines run
ming from 2 to points in the more
active issues. Standard bonds lost a
point or more. The market gave way
on the news from Russia of the Boil
sheviki revolt, which reached Wall
Street shortly before midday There
after. for two hours, the securities
market was greatly agitated, with
prices declining violently.
Liquidation was particularly heavy
in United States Steel common stock
and in a number Of the better class
investment railway shares, which suf-
fered severely The decline in the
bond market carried the United States
Liberty 3i-s to 1896. after they had
sold early in the lay at $3.50. Anglo
French per cent bonds. the joint
obligation of the British and French
governments, fell point TO 80, new
low record A to;al OF S735,OOO of the
United States Liberty Is, the new is
sue, sold at par.
Steel Shares Lead Slump
The market received the worst shock
shortly after p. m, when the full
import of the Russian news struck
home. Prior to that, for an hour or
so, the market had sagged steadily
as the pressure Of offerings increased.
Steel common was selling around 9217.
Suddenly big blocks OF Steel began to
come into the market, and in the
CO rise Of the next half hour this stock
had made another low record for the
year by falling 20 SS$4.
At that point support appeared ana
cffectually checked the decline, bring
ing about a recovery IN the closing
hour that carried Steel back to'above
81. 1t closed at 9Oi4 for net loss OF
434 points. after having sustained an
extreme decline Of Ga points.
Brokers said that the selling OF
Union Pacific. which fell to new low
record of l0S, the lowest since tie
panic OF 1907, undoubtedly represented
liquidation of investment holdings:
This, it was stated, was also true Of
much of the selling of Steel common,
American Telephone and Telegraph
and in fact of many other of the stand
ard shares. American Telephone and
Telegraph sold from l10is TO l055s, off
AS points. Many other representative
issues dropped to new low records,
notably General Electric, which tell .
POINTS to 1928; Central Leather, OH
So. New York Central, off pa, and
Republic Iron and Steel, off ) points.
international Mercantile Marine pre-
ferred pursued en- erratic course, SELL
ing early in the day at 1929, then
dropping II points to 9l12 and finally
rallying at the close 10 "a, when 1t
showed loss of points. Bethlehem
Steel "B" broke from s21s TO % and
closed 59s points off at 75i2. Some OF
the inactive issues showed even greater
losses, Manhattan Shirt losing 10
points net, Maxwell Motors first pre-
ferred ga, Tide Water Oil % points
and American Brake Shoe preferred T..
The following table shows what hap
pened TO some of the market leaders:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Relevant Facts

Hale & Klburn.. - stockholders OF
this company have received circular
from the committee of which ". ID.
Baldwin, president of the Otis Elevator
Company, is chairman, stating that the
committee contemplates obtaining
81 900 900 new cash capital for the pur-
pose Of reducing the company's present
Indebtedness and providing additional
working capital needed in view of in
creasing business and the larger vol
ume of raw materials carried under
present business conditions. II is eX-
pected the stockholders will handle the
financing.
$. II. kress. - Sales for October
amounted to s1,746,47s an increase Of
s367,0l9 over the corresponding month
wear ago. For the ten months ended
October 81 sales were Sl2,966. 1923, i
gain of s1.8O8.35S over the first ten
months in 1916.
Jones Bros. Tea.-Septembe sales Of
the Grand Union Tea Company and the
Globe Grocery Stores, operated by this
company, totalled s1031, $50. an in
crease of 24.3 per cent over the CORE
spending month last year. Sales for
the nine months period amounted to
Ss.5S5.492, an increase of 21.7 per cent
over the nine months ended September
80. 1916.
Pierce Arrow Motor Garnet profits
for the tire months ended September
80. 1917, after allowing sl17.332 for
depreciation, but not including Federal
income and excess profits tax. totalled
Sl,6s7,O15, compared with net operating
profits of sl,3O3,376 for the June quar-
ter of this year. For the nine months
ended September 80 net profits, after
deducting $351.l9S for depreciation,
amounted to S3.796,129.
Extra and Initial Dividends Declared.
Directors Of the Underwood Type
writer Company have declared an extra
dividend of per cent on the common
stock; also the regular quarterly divi-
dends Of y per cent on the common
and Ia per cent on the preferred
stocks, all payable January ] 20 stock
holders Of record December Is.
Initial Quarterly Dividends OF per
cent on the common stock and p per
cent on the preferred stock have been
declared by the Pocahontas Logan Coal
Company, payable January 1.
The company reports gross profits of
1872 52 for August and net profits
after taxes and depreciation of S101,-
989. which is at the rate Of 80 per cent
per annum on the common shares after
allowing for expenses and dividends
on the preferred stock.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09

The fortunes Of war were again
mirrored in the stock market when
news that the Kerensky government
had been deposed precipitated a
flood of selling. Prices tumbled in
an abrupt fashion as the rush to
get out from under, assisted by
heavy short selling and forced
liquidation, overwhelmed such sup
porting orders as were in the mar
ket. The surprising feature of the
day was the complete absence of
hysteria such as had been witnessed
during other recent sessions in
which prices have declined as much
as or more than they did yesterday.
Wall Street viewed the slump
calmly. This, perhaps, was to be
attributed to the fact that the break
was the result of tangible develop
ment, whereas on numerous occa-
sions Of late there has been bad
breaks with nothing in the news to
account for them. This time there
was no mystery about it, and conse
quently there was less excitement.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09

for four months secured by half rail-
road and half industrial securities were
offered at 5l2 per cent yesterday. with
little actual business being done. Loans
against industrial securities alone were
512 to SO. per cent for sixty and ninety
days and four months, and 5a4 per cent
for five and six months.
Ruling rates for money yesterday,
compared with a year ago, We're as fol-
lows:
Yesterday. Year ago.
Call money. 40 go
Time money lmiXed collateran:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Bears Not Blamed

Governors of the Stock Exchange.
when asked after the close of the
market yesterday regarding the char
acter of the selling orders, declared
emphatically that no evidences of
bear raiding were seen during the
break. The market acted in nor
nal manner, they said. apparently
reacting naturally TO the extremely
unfavorable news from Russia. H..
G. S. Noble, president of the ex-
change, expressed the opinion that
the selling was largely the liquida-
ton of long accounts. IL was ad-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09

Commercial Paper. - Rates were
slightly frmer yesterday, with the best
ninety-day and four months discounts
at 81 to 5ia per cent. Five and SIX
months commercial paper moved at
512 10 so per cent.
Official rates of discount for each Of
the twelve Federal districts are as fol-
lows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09
Current

The above rates express the cost OF
foreign money in terms Of the Ameri-
can dollar. You buy an English pound
sterling at, say, s4.75n. The intrinsic
parity is s4.s6ss per pound. Thus, you
say either that pounds are at a discount
or that dollars are at premium, which
Is owing TO the fact that in England
the demand for dollars with which 70
settle accounts in this country is
greater than the demand in this coun-
Try for pounds with which to settle
accounts in England.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-09

Undoubtedly short selling played
a part of some Importance in the
break as we'll as in the subsequent
recovery, but there was nothing to
indicate anything like a concerted
attack on values. The action Of the
market seemed to prove the effect
iveness of the measures taken by
the Stock Exchange authorities to
eliminate bear raiding as a factor.
There were times yesterday when a
bear drive against values might
have caused a serious upset. AS it
was, the market moved in a natural
manner. In the absence of ar
tifcial pressure, it was allowed to
take its course with a minimum of
what may be called artificial sup
port.