davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-06-07
Come Easy; Go Easy

The War Board Corporation found
the other day when it met for the first
time that applications had been re-
celved for the entire several billions
OF dollars which the War Bank is au-
thorlzed to create out of blue sky, or
TO be more exact, with some aid from
the Federal Reserve Board.
Never before in the history Of the
world has a war chest of such enor-
nous value been thrown open. Perhaps
not every manufacturing concern do.
ing business for the government will
ask for Treasury aid, but what has
occurred up to this time is an indica-
tlon OF what to expect in the future.
This war board financial assistance,
1T may as well be understood now 90
later, is. pure imitation. 1t calls for
paper currency on paper security. u
IS a credit operation without parallet
put II does not mean that chaos Will
result. There are reasons for beliey-
ing tnat the war board plan will BE-
OF much aid in Fastening the war pro-
gramme. Let us not deceive ourselves,
however, by thinking that something
can be created out of nothing. Con-
trasted with European nations, our
gold-secured currency is beyond at
tack. But when 5000 million dollars
OF additional credit is added to pur-
chaslng ability, with no more goods
70 buy than were in existence before
the credit was created, then prices are
gong up, or century-proven economse
theories stand to be shattered.-The
tloHnrier
New-York tribune., 1918-06-07

mands on the trade multiplying
along with our war problems. And,
as "The Iron Age" says, "if we are
to win this war at all, and not to
win it is unthinkable, we can win
only If we make the American steel
industry. with it's 45,OOO,OOO or 5O,-
100000 tons of steel ingots year,
reach with every ton and every in
got toward Berlin. Every ton must
help. If there is no means now for
its helping, it is not a surplus ton, it
is a ton waiting for means to be pro-
vided whereby it can help, be it's
bit individually ever so little, in the
shell factory, the gun plant, the ship
yard, in railroads in France, in rail-
roads in the United States, on farms
in France and Britain and on farms
in the United States. Work must be
found for every ton." That is an
other way of saying that the nom
essentials depending on steel must
starve.
New-York tribune., 1918-06-07
Banking Corporation Takes
Over Two FOREIGN Rranche,

announcement was made yesterday
that the American Foreign Banking
Corporation has taken over the two
branches OF the Commercial National
Bank, of Washington, D. c., located at
Panama City, Republic of Panama. and
at Christobal, Canal Zone. respectively.
The Commercial National has in turn.
as result of the transaction, acquired
a financial interest in the Amer;cen
Foreign Banking Corporation, which
was recently organized for the purpose
OF engaging in international bankine -
and banking in the insular possession
OF the United States. Archibald Kains
former governor of the Federal Re-,
serve sert eank M OF San Francisco, is presi-
at S2.00o,O00. The stock in the institu.
ton is owned by banks in all parts Of
the country.
New-York tribune., 1918-06-07
Porphyry Coppers
Cut Dividends
Chino, Ray and Nevada Consol-
idated Make Smaller Dis
bursements

Mounting costs of operation, in
creased taxes and a fixed government
prce for copper are held directly re-
sponsibc for a reduction made yester-
day in the dividends paid by three i'm
portant porphyry copper producing
companies, the Chino, Ray and Ne
yada Consolidated. No change was
made in tho dividend rate of the utah
Copper Company.
The directors of the Chino Copper
Comranv declared a dividend for the
quarter of 81 per share, compared with
ST so three months ago. The Ray Con-
solidated directors declared a disburse-
mcnt to stockholders Of rs cents per
share for the quarter against 81 three
months ago. In the case of the Nevada
Consolidated the quarterly dividend
was also reduced from 81 to rs cents.
The regular quarterly dividend of
$3.50 was declared by the Utah direct
ors, the same amount as was disbursed
three months ago. All the dividends
are navable June 20 to stock of record
June Ia.
News that three Of the four principal
porphyry copper companies had found
it necessary to reduce their payments
to stockholders occasioned little sur
prise in Wall Street, where such action
had been anticipated. Recently oper-
ating statements had indicated that
the companies were not earning the
dividends that were being paid owing
to- increased difficulties Of operation.
1t is asserted that the fact that the
companies will probably have to pay
larger war taxes under the proposed
new schedule is said to have infiu-
cnced the directors in reducing the
amount of the quarterly disbursemen
Up to last September the Chino
company paid dividends for several
quarters at the rate of $3.50 per share.
In December the dividend was cut to
81 per share quarterly and in March
further reduction to $3.50 was voted.
The cut made yesterday puts the stock
on an annual dividend basis Of $4,
compared with $40 year ago.
New-York tribune., 1918-06-07
Other Cities

Hampden r. RIB. & M Suit
SPRINGFIELD, Mass, June 6.-Henry
w. ELY, director of the Hampden
Railroad Corporation, to-day testified
IN Superior Court that after the Bos-
ton & Maine Railroad had declined to
ratify the lease to it of the Hampden
which Charles S. Mellen, then presi-
dent OF the Boston & Maine, had
signed, he endeavored, unsuccessfullv
to procure in the Grand Trunk a pur.
chaser of the new road. He saw a
representative of the president of the
Grand Trunk, but the negotiations led
to nothing. Up to the time the Boston
q Maine directors voted not to take
the lease, which was in December, 1913.
1t had made no claim to the Hampden
that the new railroad had not per
formed its contract.
Mr.: Ely's testimony was given dur
Ing the course of the trial in Superior
Court Of the Hampden's suit against
tn. me Boston & Maine for s3,79s,ooO
1oT aiieged breach of agreement.
the statistical and Investigating de-
partment of Lee, Higginson & Co.,
of Boston, bankers, was called as
an expert by the plaintiff and testified
that it was his opinion, if the Boston
4 Maine had taken lease of the
new road the Hampden would have been
worth, January l, 1914, $2,e25,o 900. and
ne also testified to the value of the
road to its share and bond holders un-
DER similar conditions. The $1,000, 900
. per cent 30-year bonds would have
been worth 1876 and the $1,4oO,o0O S
per cent guaranteed stock would have
been worth 70. Without the lease he
said, the new road was worth onlv
scrap value.
New-York tribune., 1918-06-07
German and American Copper

m In an article on Sources of Strength
mat Have Not Yet Dried Up" Dr..
feilX Plnner, who writes on economic
subjects for the "Berliner Tageblstt
deals with the future effects On Ger.
man trade of the intervention of the
Uhlted States in the war. He recaly
Snat IN 1913 the United States exportecs
1oo,oo0 tons of copper to Germany sns
asserts that since the beginning o.
The war the copper production of tm
United States has almost doubled
owing to the demand for munitions 70,
,ne Allies. When thiss war demana
mas ceased, he argues, there must in'
evitably be an overproduction Of thss
metal in the United States, and pe
political enmity will induce the mani.
facturers under such conditions
refuse to deal with such good Gus
TONER as Germany. On the cortrsm
tney Will be in hurry to recaptuN
the German market, if for no other
reason than to put stop to the gress
development of substitutes whlcs
owing to the scarcity of copper dnns
ing the war, has made such rapio
strides in Germany In all of thes
observations the wish is plainly fsthsx
10 the thought, and the probshilsR
that the United States and its sliies
VIII supply the world trade in ccppes
products which heretofore has locse
10 Germany Is entirely ignosed=
New-York tribune., 1918-06-07
England Fears "Money Trust"

A'SAoHA CoAS money 1PuSt'
The committee discusses the danoers
of banking monopoly through anal.
carnations thus:
"Any approach to a banking combine
or money trust would undoubtedly
cause great apprehension to all classes
OF the community, and give rise to q
demand for Matchmaking the banking
trade. Such combine would mean
that the financial safety of the coun.
try, and the interest of individual de-
positors and traders, would be place
in the hands of few individuals. who
would naturally operate mainly in the
interests of the shareholders. More.
over, the position of the Bank of Eng,
land-which would, it may be assumed
stand outside any such trust-would
be seriously undermined by so over
whelming combination, and the bank
might find it extremely difficult To
carry out its very important duties as
supporter and regulator of the monev
market: Amy such result would, in
our OPINION, be grave menace to the
public interest. Further, it has been
represented to US that the government
of the day might not find it easy to
adopt course of which the combine
for its own reasons, disapproved. While
we believe that there is at present no
idea OF a money trust, it appears to
us not altogether impossible that cir
cumstances might produce something
approaching to it at a comparatiyeiv
early date. Experience shows that, in
oroer to preserve an approximate
equailty OF resources and of competi-
1--WE power the larger English banks
consider it necessary to meet each i'm.
portant amalgamation, sooner or later
by another. If those con,hi'
nations amalgamated, or entered into
a joint agreement as to rates and
policy, etc, the money trust would i'm
medlately spring to birth"
New-York tribune., 1918-06-07

S8,331 ,101 were accounted for during
the month of May, compared with ST.
59O,595 for the corresponding month
of last year. Sales for the first five
months Of 1918 amounted to S36,70s,-
994, against S33,570,43O for the same
months of the preceding year, an in
crease of s3,13S, ,564.
Pacific Coast Company.-Report for
April discloses gross revenue of S442,-
1O9, compared with S335,919 for the
same period Of the year before Net
earnings were S46,647, against S6SA0S
for April of last year. Gross revenus
for the ten months ended April 80,
1918, amounted to s5,139, ,44o, against
S5.177,988 FOR the same months of the
preceding wear. Net earnings for the
period totalled 1884, 1902, compared with
$e42.038 for the corresponding period
OF the previous year, an increase Of
S22, ,264.
Wheeling & Lake Erie Railway Com
pany. = Gross revenues for April
amounted to S955,100, an increase Of
S2l4,59S over the same period of the
year previous. After operating ex-
penses of s791 ,208, net revenues to-
tailed .s163,Se1, a decrease of s52,2sS
from the corresponding month of 1917.
!aXeS We're S5Z,l4U, leaving operat-
ing income for the month of s111,7
Gross revenues for the first. four
months were s3,205,2S8, an increase Of
S508,613 over the four months period
ended April 80 of last year Expenses
amounted 70 s2,869,126. Net revenues
totalled $336,162, from which taxes Of
s196,800 were deducted, leaving an
operating income for the period Of
Sl39, 1862, a decrease of S460,255 from
the same months of the preceding year.
New-York tribune., 1918-06-07
r. r. Shareholders
Fear Income Loss
National Association Participant
ing in Negotiations for
Uniform Contract

The National Association of Owners
of Railroad Securities, headed by
Davies Warfeld, is taking an active
part in the negotiations between the
Federal Railroad Administration and
the members of the Railway Executives
Advisory Committee regarding the
form of contracts to be entered into
by the transportation companies with
the government. The association, in
making this announcement yesterday,
stated that it's membership included
many of the country's largest financial
surance companies whose holdings of
railroad stocks and bonds run into
billions of dollars.
Some Of these interests have ex-
pressed fear of impairment of guar
anteed net income of the carriers
through the proposed authority of the
government to order any road to i'm
prove or make additions to it's lines out
of income.
Railroad men who attended Wednes-
days conference at the Grand Central
Terminal admitted yesterday that the
most serious question still at issue
between the companies and the rail-
road administration concerns the pow
ers which the Director General may be
given to alter the so called standard
return. Among the proposals that
have been advanced from the govern
ment's side have been two possibilities
of such alteration. One was through
reductions which the Director General
might make on account of the higher
cost of maintenance at existing prices
and wage scales compared with the av-
erage expenditures for this purpose
during the three-year test period.
An important fact bearing upon the
negotiations between the representa-
ment is that they have not yet been
taken up directly with the Director
General. This will doubtless be done
in the event that the roads fail to
reach a satisfactory agreement with
the legal representative of the rail-
road administration.
New-York tribune., 1918-06-07
News Digest
Foreign

London Money Market.-LONDON,
June 6.-Money was steady to-day at
2A per cent Short bills were dis
counted at 31a per cent; three months
at SIG per cent. Gold premium at
Lisbon, 130.
Paris Bourse.-PARIS, June g.
Trading was very quiet on the Bourse
to-day. Three per cent rentes were
quoted at 60 francs for cash; S per
cent loan at 8S francs.
London Market Firm. LONDON
June 6.-Trading on the Stock Ex
change to-day was firm. Buoyancy in
the oil group stimulated interest in the
industrial section. Explosives were
strong on the definite statement that
there is to be big combine of explo-
sives manufactures. Mining shares.
especially Mexicans, did an increasing
business. Rubber shares were better.
New-York tribune., 1918-06-07
japanese in Other Countr;e.

The total number Of Japanese cit
liens living abroad was 450,77s at
the end of June, 1917, according to
fgures issued by the Japan Gazette. i"
This IS an increase of 50,357 in the
year. The United States was credited
with 151,6o6 men and 76,b72 women
the most in any country. Manchur;a
and Kwantung ranked next with so .492
men and 81 ,766 women. Brazil had
2.ob0 men and 2,6ss women with "a
25b men and 2,621 women in other
south American countries.
New-York tribune., 1918-06-07

The above rates express the cost of
foreign money in terms Of the Ameri-
can dollar. You buy an English lound
sterling at, say, s4.752s The intrinsic
parity is s4.S65s per pound. Thus you
say either that pounds are at dis
count or that dollars are at premium,
which is owing to the fact that in Eng
land the demand for dollars with which
to settle accounts in this country is
greater than the demand in this coun-
try for pounds with which to settle ac-
counts in England.
Exchange on London was quoted at
27 francs and 16 centimes in Paris
yesterday.
New-York tribune., 1918-06-07
To Stabilize Lire

1t can be definitely stated that a
plan has been adopted, and is now in
operation, for stabilizing Italian ex-
change. Bankers with a knowledge of
the details of the arrangement refused
yesterday to divulgc any information
on the matter, although it was learned
that Italy will be granted substantiallv
larger credits by the United States
government in order to enable the Ital-
ian government to pay for the large
purchases made in this market. Any at
tempt to curtail further Italian i'm
ports, 1T is said, would seriously ham
per Italy's war programme
New-York tribune., 1918-06-07
Allis- Chalmer. Dividend

Directors of the Allis- Chalmers
Manufacturing Company declared a
dividend of three-quarters of 1 per cent
yesterday on account Of the back d;v;-
dends on the preferred. in addition to
tne usual quarterly disbursement Of
Ia per cent
The payment on account of the hacL
dividends is the same as was vnted
three months ago, and reduces the ac-
cumuiated dividends on the preferred
issue to $50 per cent. "
New-York tribune., 1918-06-07
A One Cent Income

There are few slackers among in
come taxpayers whose salaries barely
exceed the minimums set by the Treas
ury Department as being subject to the
normal tax of 2 per cent. Inquiry
yesterday at the Custom House brought
forth the information that as low a
tax as l cent had been paid, while
those making payments of less than a
dollar were numerous
New-York tribune., 1918-06-07
Dollar Shrinking in Chile

Interests doing business with Chile
called attention yesterday to the fact
that the American dollar has fallen to
discount in that market of approx
lmately 40 per cent. This compares
with a recent discount of 20 per cent
Bankers assert that the movement
against american currency and in favor
of the Chilean peso is due to the fact
that no gold shipments to Chile are
permitted.
New-York tribune., 1918-06-07
Relevant Comment
Guaranty Not in Studebaker

Reports that the Guaranty Trust
Company is preparing to identify it
self with the affairs of the Studebaker
categorically denied by an official of
that institution yesterday. He said
that the auto company was already
client of the bank, but beyond this the
interest ceases.
New-York tribune., 1918-06-07
Increase in Loans of
French Bank Authorized

PARIS, June 6.-The Chamber Of
Deputies to-day passed a measure pro-
viding for the increase by 5000 900 900
francs OF the amount of money which
the Bank of France may loan to the
government.
New-York tribune., 1918-06-07
Money and Credit

Late government Withdrawals re-
suited in Tightening the money situa-
tion yesterday and at the Stock Ex-
change call money ruled at per cent,
compared with on Wednesday. Both
industrial and mixed collateral loans
were placed on the basis.
Activity in the market for fixed date
funds slackened as the banks restricted
their offerings. Rates held firm at
5A to 6 per cent for the regular ma
turtles.
Ruling rates for money yesterday,
lows:
Yesterday. Year ago.
Per cent. Per cent.
Call money:
On mixed collateral 6 334
On industrial col'tl 6 4La
Time money (mixed collateraD:
Sixty days.. 5a4@6 4L2@4s4
Ninety days. 5M@6 4L2@4al
Four months. ... 5M@6 4I5043h
Five to six months 5a4@6 4Ia@434
Commercial Paper.-A small volume
of business was done yesterday on the
basis of per cent.
Bank kAcceptances.-This market was
active yesterday, and the demand that
has been in evidence during the past
week has pretty we'll absorbed the
available offerings. Rates were un-
changed as follows:
Thirty Sixty Ninety
Spot de- days. days. days.
livery: Per cent. Per cent. Per cent
Eligible
m g m ber
banks: ;: .4A@4 4A@4A 4A@4Hs
E igible
non-mem-
Der banks.4Ss @4Is 42s@4N 4Is@44s
Ineligible
bank bills.5A@494 5A@4a4 6A@4s4
For delivery within thirty days:
Per cent.
Eligible member banks. 4L2
Eligible non-member banks. -. 45a
Ineligible bank bills
Discount Rates.-The following table
gives the current rates of the twelve
Federal Reserve banks on commercial
New-York tribune., 1918-06-07

The attitude of the War Finance
Board indicates that the $57 100000
of Brooklyn Rapid Transit notes ma
turing next month will have to be
met in part, at least, with an issue
underwritten by bankers. There is
little or no doubt in Wall Street that
this will be done, though it is prob
able that the bankers will demand
the establishment of a policy of rigid
economy before they will undertake
to guarantee the securities of the
company. 1t is said that, among
other things, they will insist upon
the passing of the dividend.
The statistics of pig iron produc-
ton tell an amazing story of recov-
cry from the partial paralysis with
which the basic industry was afflicted
as a result of the fuel crisis and
transportation shortage last winter.
In January the daily average output
of pig iron was 77,799 tons; in May
the daily average was no less than
111,175 tons, an increase of over 40
per cent. Only once before in the
history Of the trade, in October,
1916, was so much iron produced in
a single month. But even more
striking is the fact that this huge
supply is not sufficient to meet the
demand; it is barely more than
enough to meet the current demands
for war uses, with scant leavings
for those industries not engaged di-
rectly or indirectly on war work.
And rations of the non-essentials are
likely to become more meagre rather
than more generous. The war pro-
gramme is growing rapidly and the
need for war steel even faster, de-
New-York tribune., 1918-06-07

Mercantile Marine Company the
usual statement that negotiations
ARE progressing" in the deal for the
sale OF some of its ships and assets
to British interests was not forth
coming yesterday. Instead, the
Street heard rumors that "unex-
pected complications" had arisen, and
reporters making inquiries were told
that it was only natural to expect
complications in a deal of this kind.
Which is quite true. 1t is just like
the preferred stock on the exchange.
The stock progresses eight or ten
points upward; it meets with unex-
pected complications and goes down
eight or ten points or more; then it
starts all over again, each bit of
progress being followed by unex~
pected complications to wipe the
progress out. The stock has been
doing that for months. Wall Street
is wondering how much longer it will
continue to pursue the brilliant but
erratic course that puts it in the
class of the Reading of other days.
Wall Street found much of inter-
est in Paul M. Warburg's address
before the National Conference on
War Economy, but it was especially
concerned with his remarks on the
public utility situation because of
their bearing on pending financial
operations. He laid emphasis on the
position of the War Finance Cor
poration in the matter of direct
loans, when he said that the corpora
ton expects to deal only with con-
Germs that arc solvent and able to
provide bankers guarantee" and,
further, that Except where the pub
lie interest absolutely requires the
corporation will not consider itself
warranted in making advances to
companies on the brink of insol-
vency" without such guarantee.
That would seem to be the proper
position for the War Finance Board
to take. There is no good reason
why the corporation should under
take to provide funds for bankrupt
or near bankrupt properties.
| Rt1f o% of
have been placed in dangerous po-
sition through no fault of their own?
AS Mr.. Warburg points out, "fran-
chises in many cases have become
excessively onerous for such corpora
tions, due to the fact that labor, coal,
steel and copper can be secured only
at exorbitant prices, while the
charges for services rendered cannot
be properly adjusted without the
consent of the community involved"
Obviously company the expenses Of
which are mounting steadily and are
now so per cent or more above the
pre-war level cannot hope to enlist
banking support unless it is allowed
price for its services that will
leave sufficient margin of profit to
insure the safety Of the capital it
seeks to secure. It is apparent that
in many communities there will be
great opposition to any upward re-
vision of rates. And yet it would
clearly be against the public interest
to permit bankruptcy on a wholesale
scale among our public service cor
porations. 1t is an intricate prob
lem and one with which it is ex-
tremely difficult to deal, because the
question of rates rests not with the
Federal government, but with the
various state and municipal regula-
tory authorities. 1t would not be
surprising if the Finance Corpora
tlon should discover many cases in
which the public interest would re-
quire direct loans, without the guar
antee of bankers.
New-York tribune., 1918-06-07
New York

>, Official of Trust Company Resigns
Henry c. Strahmans, vice president and
a director of the Hudson Trust Com
pany, has resigned from the institution
because of poor health.
New-York tribune., 1918-06-07
Would Control Bank MERGERS

Recently committee was named in
London to investigate the matter Of
bank mergers, of which there have been
several in late months. Lord Colwvn
headed the committee, which has finallv
made report recommending amono
other things that legislation should he
enacted requiring government approval
OF future bank amalgamations.
New-York tribune., 1918-06-07

Aside from fractional advance in
Dutch guilders fluctuations in rates in
the local foreign exchange market yes
terday were unimportant. Italian lire
were steady, with checks at OIL and
cables at 900. Francs and sterling
rates were firm.
Closing rates yesterday, compared
with q week ago, follow:
lQnnte dalIars To the nound