davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
$15,000,000 Issue
Of Westinghouse
Notes Approved
Company Needs Large
Working Capital and Must
Meet Maturities

The Westinghouse Electric and Man
ufacturing Company announced yester-
day the sale of s15,o00,O00 one-year
per cent notes to Kuhn, Loeb &: Co.
and the Chase Securities Corporation
The bankers, who are handling the
financing, stated that the company ad-
vised the Federal Reserve Board Of its
intention to issue the notes and no OBJ
lection was made to the transaction.
Through the sale of the notes the
company will obtain a supply Of fresh
working capital needed to carry the
large Inventories which are essential
under present conditions. The issue, it
is stated, will not increase the current
liabilities of the company, as the pro-
ceeds will be applied to the payment Of
outstanding notes.
The notes will be offered at 80 early
next week. In letter to the bankers.
Guy E. Tripp, chairman Of the Westlng-
house board, says that on the first OF
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

income taxation, that usually bear rates
Of interest from por cent and above,
and therefore compete directly with
government bonds. Accordingly, il such
securities should continue to be issued
In considerable amounts they might
we'll interfere seriously with the mar
kct for government loans.
Prompt Cooperation Urgently Needed
because Of this situation this COM
mttce recommends that immediate
steps be taken to secure prompt CO.
operation OF the states and munich
palitics in curtailing their ordinary re-
qu'rcments, in temporarily suspending
expenditures for roads, general inn
provements, public and school build
ings, etc.
ION this point this committee has
conferred with Assistant Secretary
Crosby and hereby renews the recon-
mendation, made orally to him, that,
with the second Liberty Loan campaign
out Of the way, the Secretary of the
Treasury call n conference of gov
ernors, or communicate with them in
some other appropriate manner, and
acquaint them with the seriousness Of
the situation, inviting their active and
immediate cooperation in meeting it..
amy permanent body which might
be hereafter appointed to deal with
this whole question of new capital is
sues could appropriately undertake, as
an initial measure, cooperation with the
Secretary of tho Treasury in detailed
conference with the state authorities
and in starting a campaign of educa-
ton in order to enlighten all minor
state officials as to the necessity Of cur
taiiment in all public improvements,
thus securing their active assistance to
the same general end.
1T is obviously impossible to suspend
all public improvements. Such public
financing as may be required for sani-
tary development and improvement
dock improvements Gin many cases sub
serving the governments interests)
temporary financing in anticipation OF
taxes and certain refunding operations
must continue. But the general scope
Of them should be made to conform
to the necessities of the general situa
tion and in point of time any bono
issues by local governmental bodio:
should be guided so as to avoid conflic
with Federal bord issues"
The results accomplished under tI,s
British plan OF security supervision
the committee points out. are somcwha
startling, rs Indicated by the follow
ing tabulation of new capital issues O.
the London market during the last fou
sand One-half wears Figures in pounds
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

and municipalities, issues OF which are
placed locally to a large extent. 1t
is plain thaf local committees can eX
crt their influence on the officials Of
municipalities and companies in their
districts, TO the end chat capital eN
penditures may be restricted to work
Of urgent public necessity.
Upon the board OF supervision Will
naturally fall great amount OF cdu
cational work, in the furtherance of
which assistance can be enlisted from
organizations such as the National
Municipal League. the League Of
American Municipalities, the National
Electric Light Association, the Ameri-
can Electric Railway Association, etc.
The publications of these associations
and the technical journals covering the
various fields Of activity. should be
fully utilized IN any educational cam
palgn."
Members Of the committee of bank
ers do not feel that it will be neces
sary to enact legislation to restrict
security issues. The same results,
through moral suasion instead Of
through the medium Of the law. An
effective supervision Of security issues
wisely administered ought in the opin-
ion Of the committee, to nave the fol-
lowing results:
Ito eliminate much competition
in the demand for money which the
government is likely to meet.
2-To reduce automatically the
amount Of materials which arc now
being consumed in the operations Of
public improvements and OF indus
tries not necessary to the conduct
of the war.
3-To release for the use Of the
government substantial number OF
! laborers, both skilled and unskilled,
who are employed IN unnecessary
operations.
ito emphasize and accentuate
the campaign for economy through
out our national life, which is just
being got under way.
Comparative Statistics
Statistics compiled by the commit
tee showing the total par value OF
financial issues, exclusive of foreign
loans, for the four years prior t.
Americas entry into the war. and fol
! the first nine months Of 1917. arc "a
l1owS.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

of the board that the burden and re-
sponsibility will fall primarily and that
the successful working of the plan will
depend. 1t seems to us that all appli-
cations for security issues should be
submitted in the first instance to the
board, which would then refer each
individual case to an appropriate ad-
visory committee for investigation and
recommendation.
Upon this board of supervision
should be placed responsibility for the
appointment Of competent advisory
Committees throughout the country.
These advisory committees should be
made up SO as to enable the board of
lntelligently the questions put up to il
under the four general categories into
winch capital issues fall, namely:
~. State and municipal securities.
-. Public utility securities.
.. Railroad and other trnnsporta,
ton securities.
ID: Industrial securities.
The reasons for the assistance OF
such advisory committees are obvious
In the first place, the work will be sc
extensive that the board of super
vision could not possibly, by itself
thoroughly investigate every appica
tlon tor capital. and must therefo fore
call in the aid of ub-committees
These should, 30 far as possible, be
composed of experts capable of han
ding the important work involved.
Educational Work Necessary
"Another reason for organizing II
the manner suggested is in part politi
cal. About one-half of the country
financing is applied to public utilities
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

Commenting on the above figures the
Lamont committee says: There are
now practically no rev issues except
government loans. The question, there
fore, at once arises as to how British
industry has been able to meet the Re
quirements OF wHf conditions without
additional capital. Mn. Blackett has
answered that by stating to US that the
government has made important ad
Germs working on munitions or on war
contracts, and that the other industrial
concerns not so engaged and not so
financed have simply had to curtail
their businesses: that they have been
able to borrow from the banks perhaps
q little more literally than in normal
times, but beyond that point have been
obliged to keep down their business to
the limits Of their capital
sit is at once apparent to this com
mttee that the whole problem in this
country is much more difficult than It
was in Great Britain, for the reason
that the government there is concen-
trated practically under one roof,
whereas here we have forty-elght diff
ferent state governments and widely
diverse conditions to deal with. tur-
Their. in the case for instance. Of the
railroads in England the situation is
quite different from us, for there
the government has, in effect, taken
over the operation OF the railroads on
the basis Of g. guaranteed return to
vockholdcrs, and is advancing funds
for proper extensions, improvements
maintenance, etc.
America Open to Foreign Borrowers
eve must furthermore remember
that for almost all of the first three
wears Of the war England and France
were able to close their own markets
almost completely to new capital 49,
sues and yet to secure large funds from
the United States for the requirements
Of both municipalities and private cor
porations. American enterprise, how
ever, has no such resource to draw
upon. Moreover, in England it was
rassible for security holders of do
nestle corporations to obtain new
funds through the sale of American
securities, and without any public issue
to apply such funds to the continued
assistance Of their domestic enter
prises
"These statements are made not for
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

the year the company had on hand ua-
filled orders amounting to more than
S13O, 000, 900, exclusive Of contracts Cor
rifles. The letter continues:
As of December I, 1917, the COM
rany's Current assets as they Will he
defined in the lndenturc amounted TO
more than S71 000,0 600, while lis cur
rent liabilities as so defined amounted
to less than 100000, which the
present issue of notes will not increase.
as the proceeds thereof will be APP
piled to the payment of outstanding
notes. The funded debt of the COM
pany, consisting almost entirely OF
The Westinghouse Machine Company
first and refunding mortgage bonds,
due 1910, amounts 20 about 5000, 600
and in capital stock now paying Z per
cent dividends per aNnum, amounts to
STl,S12,G50 and has present market
value Of over S60,G00,000
"Thc earnings Of the company for
the eight months ended November 30,
1917, after deducting Of all interest
charges and after setting aside maxi
mum reserve for all income and excess
profits taxes, amounted TO 5000 1923,
which is only $3.50, 1O1 less than for the
same period of the previous fiscal
.cay, when there wee 20 war income
or excess profits tax deductable."
The indenture under which the rose.;
are tc be issued will provide that the
company shall at ali times, while the
notes are outstanding, have on hand
current assets equal to at least twice
the amount Of the current obligations
and that it will not hereafter, as SC
long as any of the notes are outstand-
ing. make or permit to be made any
mortgage on any Of it's properties ol
TIE properties of any Of its proprietary
companies.
This is the second short term fnanc
ing operation arranged in this marke
last week, the American Can Compan,
having borrowed $4,000, 00O from loca
10 rk0rS
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

the accumulation of stocks that are not
needed either for the winning of the
war or for meeting the present eco
romic stress Of the country.
an Germany the Reichsbank has
oversight over all new stock fotations;
all new financing is curtailed particu-
larly with a view Of diyerting all in
vestments toward the war loans of the
imperial government Even floating of
securities by municipalities is dis
couraged, and last August the Reichs-
bank sharply rebuked certain local
hanks which we're helping to float some
war loan was being contemplated"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Dollar in Foreign Exchange

In the foreign exchange market dur
ing the past week fluctuations in rates
were narrow in the main, and the gen
eral movement was sluggish. Out
wardly the market made pra :tically no
response to President Wilson's state
ment Of our peace aims. Exchange on
the leading Allied countries remained
steady as rule. Franc bills on Paris
were slightly higher, while sterling
rates held at the peg levels.
Russian rubles, despite a sensational
fall in tho price Of the Russian gov
eminent bonds here, on the circum-
stantial reports that the Bolshcviki in
tend to repudiate all of Russia's war
debts, were unchanged during the week
at 1874 cents. The present condition
in Russia has tended TO restrict deal
ings in ruble exchange here to mini
mum, and the market has all but
dried up.
Steps being taken in Washington TO
improve the position Of the dollar in
tho neutral markets are working out
TO the satisfaction Of the financial au-
thorities, it is asserted, although the
effects have yet to be reflected in rates.
If YOU calculate the cost Of the dollar
in terms of foreign money at par value
that is, as if you were buying dollars
with pounds, marks or francs - its
value at the close Of last week, as COM
pared with year ago, would be about
as follows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Relevant Comment

"Sell the Notes." Said Mr.. Baker
A misunderstanding as to whether
the s12,O00,oo0 serial per cent notes
Of tho American Can Company, sold
by the First National Bank last week,
were rediscoun.ablc at the Federal
Reserve Bank, it was learned yester
day, arose the same day the notes were
offered. 1t was stated by an official Of
The bank on the day preceding the
offering that there WAS no question
but that they possessed the rcdiscount
privilege. A later ruling Of the Fed
eral Reserve Bank. however, based
upon an examination of the company's
contract with the First National, stated
that the notes could not be redis-
counted This made no difference with
the banks llans. George f. Baker,
with characteristic quickness in de-
Gliding matters of finance, gave the or
der to go ahead with the sale Of the
notes, and they were sold within half
an hour of tho time of offering them.
Not First Misunderstanding
The experience Of the First National
Bank recalled the difficulties Of the
American Tobacco Company in float
ing an issue OF $50 100000 notes sew
eral weeks ago. Tho Guaranty Trust
Company, as the bankers in charge of
the financing, reached sn agreement
with local Reserve Bank officials that
these notes possessed all the features
necessary to carry the rcdiscount priv
ilege. The Federal Reserve Board at
Washington reversed the decision Of
the local Reserve Bank. Thereupon
tho banking syndicate revised its
agreement with the company TO con-
form with the requirements OF the
Kcse,,-n Board
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Dividends Declared

Borden's Condensed Milk Company.-Regu-
the common stock. payable February Is TO
stock of record February L; also the regular
quarterly dividend of ! u per cent on the
preferred stock. payable March IL 10 stock OF
record March i.
Dominion Steel Corporation. - Regular
QUARTERLY dividend of l.. per cent the
preferred stock. payable February to stock
Of record January 10.
Public Service Investment Company.
Regular quarterly dividend of $3.50 share
on the preferred stock payable February /
to stock Of record January II.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Tobacco Factories Busy

Net profits Of the British American
Tobacco Company for the year ended
September 80, 1917, amounted to g.
1o5,oO2, compared with s2,733,36l in
the preceding year. Dividends paid
during the year amounted to 80 per
cent, the same as in 1916. The report
says that during the year the factories
of the company in England had been
largely employed in-~making supplies
for the troops abroad at q reduced
ratc Of profit. Having regard for tA:a
possibility Of the war being prolonged,
the directors made arrangements for
large increase in the output at the
American factories. The production
Of the latter lest year was as a re-
suit more than three times that Of the
average prc-war year.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

used by the Secretary Of The Treas
ury to stabilize Liberty bonds in the
market place. 1t is hardly likely
that this bill will be passed and GER
ta'nly it would be Ineffective and
probably would defeat it's owr pur.
pose, but it is significant as showing
the trend of thought on the subject,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

The above rates express the cost or
foreign money in terms Of the Ameri-
can dollar. You buy an English pound
sterling at say, sA.7o1<. The intrinsic
parity is S4.s6s, per pound. Thus, you
say either that pounds are at dis
count or thet d7llsrs are at a premium,
land the demand for dollars with which
TO settle accounts in this country is
greater than the demand in this eoun-
try for pounds with which to settle SC
counts in England.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Corporate financing:

and whose judgment and advice would
be most valuable. The remaining five
members should be chosen by the Pres
ident, or the Secretary Of the Treasury,
from private life, and one Of them
should be chairman OF the board. Pref
erably they should be business men
and bankers, thoroughly experienced IN
dealing with large problems Of bust
ness and industry ana with large issues
of securities. This seems particularly
important, as it is upon these members
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

From the foregoing figures" says
the Lamont committee, at is apparent
that, if the war continues for any
length of time, conditions will almost
undoubtedly be such as to require the
curtaiIment OF ney issues in every line =
that is to say, If the government is TO
have free field for its own bond IS
sues. This statement already applies ut
the present time TO issues Of domestic
state and municipal bonds. These arc.
as rule, exempt from all forms OF
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Corporation Returns
Toledo. ST, Louis & Western
Special Dividends
West PENNSYLVANIA Railways

Consolidation Coal Company. De
olared an extra dividend of 3 per cent
PAYABLE February II to stock Of record
February /; also the regular quarterly
dividend Of u per cent, payable Janu-
ary 81 to stock of record January 20.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Gold Bills Disappearing

Cola certificates are rapidly disap-
pearng from general circulation. A
Wall Street restaurant. which in nor
NAL times takes in $500 to s4o0 day
in the gold backs" has, in the course
of the last month, received only one
or two bills Of this character.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

the purpose Of exaggerating our diff
culties, but so that we may realize. and
make preparations to meet them. In
France and N Germany supervision of
financial issues has heen in effect since
an early period Of the war. in France
the Minister Of Finance supelvises the
issue of all securt!es.' strict control
which a CORES pondent OF The London
Econom list -chsracterlles as irksomc 20
those who are used to commercial lib
crty' is maintained, so as to prevent
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Money and Credit

Tho Clearing House statement issued
Yesterday disclosed an increase of
Sa9,97l,o00 in local bank loans and dis
counts, that item standing at the end
OF the week at $4,067 1852 900. Surplus
reserves increased $17,3O2,490 to S7S.
9I9,0l0. There was further decrease
IN government deposits at this centre
which now total sl2e,o4S. 900, compared
with s241 ,46a. 900 g week ago.
The Clearing House statement fol-
lows:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
News Digest


Paris Bourse.-PAR!S, Jan. IL
Trading on the Bourse was quiet to-
day. Three per cent rentcs. 80 francs
rs centimes for cash. Exchange on
London, 81 francs 10 centimes. Five
per cent loan, SO francs As centimes.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
Cost Of one dollar

Closing rates yesterday, compnred
with week ago. are given in the table
below. American bankers have sus.
pended all dealings in German ana
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

Acceptance Rates.---Current bid prices
for prime acceptances are as follows:
Thirty Sixty Ninety
Spot delivery: days. days. days.
Eligible member
banks. ....... s7sqs 4 % 4 %
Eligible non
member banks 4lsoo 4l4eo 4l41o
Ineligible bank
bills. ........ 8 % 5 % 5 20
For delivery within thirty days:
Eligible member banks. ....... ~ %
Eligible non-member banks. 4Na1o
Ineligible bank bills. .......... 6 %
Bank Clearings.--The days clearings
at New York and other cities:
Exchanges. Balances.
New York. 49,. 1885, ,457, 656 $57,221 500
Boston. 48,569,511 11,317,557
Sub-Treasury.--New York banks lost
to the Sub-Treasury 81 900.
Silver.-Bars in London. 45lsd, un-
changed; New York, 90lsc, unchanged;
Mexican dollars, 73c, unchanged.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

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:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13
~ w ealth Markets and Com {

Austrian exchange, SO that daily quo
tations for either marks or kronen are
no longer available.
Quoted dollars to the pound.)
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

Money in Circulation.-WASHI
TON, Jan. l2.-On January /. 1918.
money in circulation in the United
States totalied $500 424,90S, compared
with S4,4Ao,9 32 ,e34 on January /, 1917.
The statement, compared with a year
aCo fOllOWs.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

Leans. discounts. invest
mcnts, e5c........... SA,o67, 1920
Cash in vaults Of Fed
Res. members. ....... 117,2eo.ooo
Reserve IN Fed. Res Nank 549.771 900
Reserve in vaults Of state
banks and trust Co.'S. 2O,419,0OO
Reserve in repositories. 3,601.OCO
Net demand deposits. 3.7A4, 3343 900
Net time deposits 500. 96.894 600
Circulation .......... 34111,OQO
Aggregate reserve. 577,790,ooo
Lscess reserve. ........ 78573,01O
United States deposits deducted.
s126.24S 900.
The changes from a week ago were:
Loans snd discounts. Dec. S4o971 900
Cash in vaults OF Fed.
Res. members. . Inc. 4,O47 GOO
Res. in Fed. Res. Bank Inc. 3O553. 600
Res. in vaults of state
banks and trust cos Inc. $4,000
Res. in repositories Dee. 10000
Net demand deposits. Inc. 97,89o,OO0
Net time deposits Inc 5,733, 600
Circulation Inc. $4,000
Aggregate reserve Inc 2O,379. 900
Excess reserve. Inc. 1902. 400
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

London Money Market.-LONDON,
Jan. 12.-Money firm at 3M per cent.
Discount rates, short bills, 9 3l-32 per
cent; three months bills, 132 per
cent. Gold premium at Lisbon, 40.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-01-13

Sub-Treasury.--New York banks lost
to the Sub.Treasury 81 900.
Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1918-09-19

Whereas default has been made and
now exists In the conditions OF GER
tain mortgage made and delivered by
Mrs. Gertrude ID. Randall and f.. q.
Markvttle State Bank, mortgagee. dated
November ath. 1915 and recorded In the
office OF the REGISTER OF Deeds OF Pine
County. Minnesota on the End day OF
December 1915 at 1 O'clock D. M. in
Book 10 OF mortgages on Page cog: and
Whereas there is claimed to be due
and Is due on said mortgage at the
date OF this notice the sum of Four
Hundred and Twenty Five and $4,000
Dollars Nie523);
given that pursuant to the power or
sale contained in said mortgage and
the statute in such case made and pro-
vtded. the said mortgage will be fore.
closed and the following premises de.
scrlbed In and covered by said mort :
and State OF Minnesota, to-wit.
All OF Block A In the Townsite OF
Duxbury according to the plat thereof
on ME and OF record in the office OF the
nesota. viii be sold at public auction to
the highest bidder therefor for cash by
the sheriff OF said Pine County, at the
front door OF the court house in
r Ins village or Pine City in said
day OF October. 1913. at one o'clock
p. m: Of said day. to satisfy the amount
winch shall then be due on said mort :
gage and the costs and di sbursements
allowed by law and Twenty five Dollars
mortgage.
Dated August Goth. 1918.
Markvtlle State Bank. Mortgaree.
w. 5. Erwin. Attorney for Mortgages
sandstone. MINI.
tAug ss-sept. IS,