davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-01-08
Other Cities

Receiver Asked for United Railways
Of St. Louis.-ST. LOUIS, Jan. 7.-Ap-
plication was made in the Federal Dis
trict Court here to-day for the appoint
mcnt OF receiver tor the United Rail
ways Of St. Louis, the local and subur-
Ian traction line.
The suit was filed on behalf OF John
W. Seaman. Of New York. holder of
several shares of stock The petition
asked tha. the company and its direct
ors be compelled to make restitution Of
large sums alleged to have been squan-
dered in contracts for power from the
Keokuk dam.
The court was also asked to annu,
The contracts between the Mississippi
River Power Company and the Union
Electric Company and the Electric
Company OF Missouri and to turn those
contracts over to the United Railways
in order to save alleged middlemen'
profits realized in the sale of current
from the Kcokuk darn.
The petition charged that directors
of the United Railways caused the com
pany to make power contracts with the
Union Electric Light and Power Com
rany OF st. Louis in order TO serve the
interest Of the North American Cosn-
pany, which holds stock of the United
Railways, Union Electric and the Elec-
trio Company Of Missouri.
1t was stated that if the United Rail
way; had been we'll managed it would
now be in a good condition.
New-York tribune., 1918-01-08
Relevant Comment
Liberty Bonds Not Sacred

Liberty Loan per cent bonds sold
at their lowest quotation yesterday,
$4,000 worth changing hands at 96.42.
In all, sales amounted to nearly S2,-
100000 the irst transactions for the
day being at 96.80 The selling was
attributed chiefly to the failure of
subscribers to the last loan to meet
their instalments, such delinquency
making it necessary for the banks to
liquidatc the bonds. Transactions in
Liberty Loan 312s were at prices
ranging from 1884 to 98.72 The
weakness in the government war
bonds, especially the 4 per cent issue,
has given rise to much discussion in
financial circles. In the opinion of
the Commercial National Bank of
Washington, these securities must
take their chances with the market
for investments as 81 whole
ut is not often" the bank says,
that Secretary McAdoo makes an alb
surd remark; but he succeeded in do
ing so, impelled by praiseworthy love
for country. when he declared that it
is unpatriotic to sell Liberty bonds
New-York tribune., 1918-01-08
Stock Dividends
Held Not Income
By Supreme Court
u. S. Supreme Court
Sets Aside Federal
Income Tax DEGREES

WASHINGTON, Jan. 1.-THE Supreme
Court to-day set aside Federal DEGREES
which sustained the validity of the
stock taxing section Of the 1918 income
tax law, which held that stock dividends
on profits earned prior to the enact
ment Of the constitutional amendment
permitting direct taxation of income s
are subject to taxation as incomes.
The proceedings were brought by
Henry r. Towne to recover $2O,2O8 paid
as income tax on stock received by him
by the readjustment of capitalization of
corporation. The lower court denied
contentious that stock dividends are not
incomes, but mere readjustmcnt of
the form Of capital obligation already
owned.
The decision of the Supreme Court,
reversing the District Court of New
York. in which suit was brought, was
unanimous. The case for Towne was
argued by Charles E. Hughes, former
associate justice of the Supreme Court.
The decision, in part, as read by Jus
tice Holmes, follows:
"a word is not a crystal, transparent
and unchanged. 1t is the succession of
Il living thought and may vary greatly
in color and content according to the
circumstances and the time in which it
is used. Whatever the meaning Of the
Constitution. the government has ap-
piled its force to the plaintiff on the
assertion that the statute authorized
it to do so before the suit was brought,
and the court below i.aa sanctioned its
course.
"'ine plaintiff says that the statute
as it is construed and administered is
unconstitutional He is not to be de-
icated by the reply that the govern
ment does not adhere to the conviction
by virtue of which alone it has taken
and keeps the plaintiffs money. If
this court should think that the con-
struction would make the act uncon-
stitutional. While it keeps the money
construed as it has construed it can be
maintained. The motion to dismiss is
overruled.
The case being properly here, how
ever, the conviction Of the act is open
as we'll as its constitutionality if con-
strued rs the government has con-
strued it by its conduct. Notwith-
standing the thoughtful discussion that
the case received below, we cannot
doubt that the dividend was capital,
as we'll as that the purposes Of the
income tax was for the distribution be-
tween tenant for life and. remainder
man. What was said by this court
upon the latter question is equally
true for the former. "A stock dividend
really takes nothing from the property
OF the corporation and adds nothing
to the interest of the shareholders. It's
property is not diminished and their
interests are not increased
"The proportional interest of each
shareholder seems the same. The only
change is in the evidence which repre-
sents that interest, the new shares and
the original shares together represent
ing the same proportional interest
that the original shares represented
before the issue of the new ones.
"ln short the corporation is no poor
er and the stockholder is no richer
than they were before"
New-York tribune., 1918-01-08
Argentina to
Lend $2Oo,O0O,0O0
Great: Britain

Negotiations for the extension of
Go,OO0,000 (s2Oo,oOo,OOo) credit to
Great Britain by the government Of
Argentina have reached a stage where
only the approval of the Argentine
Congress and the British Treasury is
needed to close the transaction.
Cable advices which New York bank
ers received yesterday from Buenos
Ayres were to the effect that the pros
poets of the loan being successfully
consummated were favorable 1t is
known that the financial authorities
of Great Britain and Argentina have
been negotiating for some time.
Information received here so far re-
garcing tho character of the loan is
very meagre. and nothing is known as
TO tie maturity Of the credit arrange
ment and the rate Of interest. 1t IS
believed in banking circles that Great
Britain is obtaining the credit 10 draw
against in paying for wheat and meat
bought in large quantities in the South
American republic.
Within the last fortnight arrange
ments were concluded between the Al.
lies and Argentina for the release oi
100000 tons of wheat Much of TINS
wheat will be brought 20 the United
States to be miiled. and Will then he
transported to France and Eng and IN
British vessels.
Establishment of a s4o.000.00O credit
IN Argentina in the name Of Great
Britain Will. it is asserted. help 20
stabilize exchange, which has been run
ming strongly against all of the Al
lies and the United States. as a result
Of their heavy purchases in Argentns.
New-York tribune., 1918-01-08
Current
Dividends Declared

Arizona Commercial Mining. A dividend
of so cents, payable January 81 to stock of
record January 10. has been declared.
Colorado Fuel Iron Company. Regular
quarterly dividend of per cent payable
January % to stock of record January l5
International Nickel Company-Re Regular
quarterly dividend of li2 per cent on the
preferred stock, payable February | to stock
of record January 10.
Miami Copper Company.-A quarterly dvi-
dend of $l.50 share. payable February Is
10 stock of record February |. has been de-
clared This is the same rs three months
ago.
Milwaukee Electric Railway & Light Com
pany.-Regular quarterly dividend of / l., per
cent on the preferred stock. payable January
g to stock of record january 2l
Sierra Pacific Electric Company.-Quar-
terly dividend of S1.50 share on the nra-
ferred stock, payable February 1 to stock Of
record January ! o.
United Dyewood Company-The regular
Hy, quarterly ii, dividend of IS. per. cent on the
TO stock of record March IA. duly ! 70
stock of record June IA. October / to stock
Of record September IA. and January 2. l91a
to stock of record December IA.
New-York tribune., 1918-01-08
Loan to China improbable

New York bankers who were inter
ested in the original Chinese loan six
power group denied yesterday aav'ns
first hand knowledge regarding re-
port from Peking that TN advance o.
So0,00O,000 by Japan to China fer the
purpose OF improving the position oi
the Bank OF China had been tempo
rarily postponed, owing to the decision
of American, French and British hanA
ing groups to participate actively ID
the loan. 1t was said that g loan "
China, in which American financial IN.
terests might subscribe. had not been
discussed for months. Should tne
United States feel disposed. however, ~
lend financial assistance to China along
with Japan bankers here declared tnss
the government would receive ths
necessary financial assistance
New-York tribune., 1918-01-08
Readings November Earnings

Income of the Reading Company for
November was $5S6,043, which, after
deducting expenses amounting to $9,-
O1O and interest and taxes estimated
at S493,0 900, left a surplus of SS4, ,O33.
This compares with surplus of $114,-
397 for November, 1916 For eleven
months ended November 80 the COM
pany. earned surplus of 81 1888, 900,
compared with $4,597 ,421 for the cor
responding period in 1916 The No
vember report of the Philadelphia &
Reading Railway Company showed a
surplus of only $191,712, compared
with 81 ,463,9l5 in 1916. Income for
November last was S5,93l ,O62, an in
crease of s4l2,495; expenses. $4,S69,-
s49, an increase Of S1.611,697, and
rent, interest and taxes (estimsted)
S87250O, an increase of S73 600 The
Philadelphia & Reading Coal and Iron
Company returned surplus from No
vember operations of $46l. .480, a de-
crease of $196,119, compared with the
1916 frures
New-York tribune., 1918-01-08
Money and Credit

A distinctly easier tone developed in
the call money market yestc rday, the
ruling rate at the Stock Exchange de-
clining 30 3 per cent, compared with
at the close CT last week. Despite
the fact tina. the bank statement Sat
Urday disclosed decrease of so per
cent in cash surplus, the banks made
liberal offerings of demand funds, with
a small amount Of business being done
at "a per cent.
In the market for fixed date maturi-
ties a slightly easier tone was appar-
ent as a result Of nm increased sup
New-York tribune., 1918-01-08
Finance Economics
The stock market shows signs of

The stock market shows signs of
an impending relapse into a state of
dulness such as prevailed before the
government took control Of the rail-
roads. Yesterday there was an i'm
posing accumulation of favorable
news, and little or none of an unfa-
vorable character. The Street found
encouragement in reports from Rus
sia, accompanied by announcement
from Washington that the coupon
cue on Thursday on the Russian ex-
ternal 61a per cent bonds would
be paid, in the decision that stock
dividends are not income, in the
announcement that Director Gen
eral McAdoo is already taking steps
to provide for railroad maturities, in
the amendments introduced in the
Senate to limit the period of govern
ment railway control and in the Smoot
amendment to the revenue law. All
these things were of a constructive
character, but the stock market made
little response. While there was a
decided undercurrent Of strength and
gains were recorded by many stocks,
little or no expansion of investment
buying occurred, and it was said by
several brokers that speculative COM
mitments by other than professional
traders were in small volume. Deal
ings again are confined chiefly to the
exchange of counters between pro-
fessional traders. The turnover last
week averaged more than 100000
shares day up to Saturday. Trans
actions yesterday were less than half
Of that; indeed, they were less than
the total for the two-hour session at
the close Of the week. Evidently,
the stimulus impaired by the Presi-
dents happy solution of the railway
problem is losing it's force. Fort
unately there could be worse things
for the stock market than dulness.
One Of them would be the develop
ment of anything like bull market
at this time.
New-York tribune., 1918-01-08
Dollar in Foreign Exchange

In the foreign exchange market yes
terday sterling bills displayed a firmer
tone as result of the easier money
conditions here and in London.
Swiss exchange was weak, the rate de
clning to AT. italian bills were in
larger supply and caused slight de-
cline in the rate for lire. Russian
rubles were steady.
Closing rates yesterday compared
with week ago, are given III the table
below. American bankers have sus-
pended all dealings in German and
Austrian exchange, so that daily quo
tations for either marks or kronen are
no longer available.
New-York tribune., 1918-01-08

Doubtless there will be consider
able opposition to that section of
Senator Smoots amendment to the
revenue law relating to excess profits
taxes, but it is at least certain that
his plan is a vast improvement over
the existing statute. In the first place,
it may fairly be called a war excess
profits tax, whereas, beyond it's title
the law as it stands has not the re-
mOtest relation to what are commonly
understood to be excess profits. More
over, administration of the law un-
der the Smoot amendment would be
simple and probably as equitable as
can be expected, while the present
act is hopelessly complicated, and is
bound to work gross inequities even
though the Internal Revenue Depart.
ment apparently is interpreting, or
is trying to interpret, it as fairly as
it can.
New-York tribune., 1918-01-08
Equitable Trust Secures
Judgment in Denuey

DENVER, Jan. IA judgment for
S36. ,03S to enforce judgment for
a similar amount awarded in the
United States Court for the Southern
District of New York was returned in
the Federal District Court here to-day
against the Denver e. Rio Grande Rail
road COMPANY in favor of the
Equitable Trust Company of New
York. 1t took less than forty five
minutes to cmpanel a jury, present
evidence and obtain verdict.
New-York tribune., 1918-01-08
CENTRAL PACIFIC RAILWAY COMPANY
Three and GDe Halt Pei Cent.
Mjrtgdge Bonds.

Notice is hereby given that pursuant 10
gage from this Company 20 the United
states Trust Company OF New York. Trus-
zee dated August l. 1899. this Company
mas set apart out of the net income derived
by II from the lines Of railroad therein
NOR NOR gased the sum of Twenty-Five thousand
ooliaTs IN trust 10 be used 10 redeem said
bonds. and that bonds issued under sal!
NOR gage VIII Re redeemed Herewith BIDS
are hereby invited for the surrender Of such
ooiiEs a' prices 10 be named by the bidders
70 the amount OF $2530013 in he sinking
Funl " " e
=, Such bids should be presented to this
Company at its office, l65 Broadway in the
Ciiy OF New York. on or before he 5th day
OF lepIua!y, 1913. at twelve o'clock noon
ana 81 should he endorsed Bids for Surrender
and One-Nalf Per Cent. Bonds.
CENTRAL PACIFIC RAILWAY co
Ey WM. +. HERRIN. President
Dated January : 1918
New-York tribune., 1918-01-08

Commercial Paper.--Brokers report
ed further Improvement in the com
mercial paper situation. The tone of
the market was easier and there was a
substantial expansion in the volume of
business. This was particularly true
OF the interior, where the banks arc
buying freely at 5s4 per cent. The best
paper was quoted at 52. per cent.
Official rates of discount fo- each of
the twelve Federal districts are as fol-
lows:
New-York tribune., 1918-01-08

The ruling Of the Supreme Court
that stock dividends shall not be con-
sidered as income is of considerable
Importance, for hundreds of millions
Of dollars have been distributed in
the form of stock dividends. The
Bethlehem Steel Corporation alone
gave its shareholders S30,00O,000 in
stock last February, and this is only
one Of a great many similar dis
bursements. Undoubtedly numerous
stock dividends which otherwise
would have been declared have been
withheld because of the ruling Of the
Treasury Department under which
such dividends have been taxed as
income. Now that the way is clear.
it would not be surprising if there
were to be large crop Of "melons"
of that character.
When terms Of the first Liberty
Loan were under discussion, there
was much opposition in banking cir
cles to a rate so low as 3 Y per cent
Now the proposal to increase the
rate on the next flotation to AZ
per cent is meeting with similar op-
position. 1t is said that bankers
object to this rate because it is odd
and therefore would add to the labor
Of handling the bonds by complicat-
ing interest calculations. The real
objection is that an increase in the
interest return on Liberty bonds
would tend to depreciate the value
Of some existing securities. Even
that is of minor Importance, how
ever. The first thing to be consid-
cred is the fixing Of rate which
will insure the success of the govern
ment's loans, to the extent that they
are bought solely for investment and
not as a matter of patriotism.
New-York tribune., 1918-01-08
News Digest
Foreign

london Stocks Firm.-The stock mar
ket developed a firm undertone TODAY.
Premier Lloyd Georges speech was we'll
received, and its results, it is believed
will be seen in the near future. Home
funds and Allied bonds we've firm un-
der the lead of consols, mining shares
were stronger and diamonds were the
leading feature. Rubber, oil and ship
ping stocks were steadily supported.
Paris Bourse.-PARIS, Jan. 7-Trad-
ing On the Bourse was dull o-day Three
per cent rentes, IS francs so centimes
for cash. Exchange on London. 27
francs 2l centimes. Five per cent loan.
SO francs 40 centimes
New-York tribune., 1918-01-08
No L. p. Stock Dividend

A report gained circulation in brok-
erage Offices yesterday that directors
of the Union Pacific Railroad had un
der nsideration plan calling for the
distribution of a stock dividend. The
report. however, was denied in official
sources almost as soon as it started.
The statement OF d director that no
stock dividend distribution was under
discussion by the board was supported
by the action of the stock in yestcr
says "a market. 1t closed at 114E up
New-York tribune., 1918-01-08
New York

American Tobacco Stock Issue An
proved stockholders Of the American
Tobacco Company, at special meeting
yesterday, approved the plan of the d..
:ectors to create a lew issue Of $50 600
600 common stock. Previous staements
that there is no intention. on the part
Of the company to issue the new stock
in the near future were officially re;t-
Grated
Toledo Traction Bond Tssue.-Ear.
ris, Forbes & Co. and the National Cit0
Company announced yesterday that
they had purchased $40 800 900 Toledo
Traction, Light aud Power Company
trst lien per cent two-yenr gold
bonds. The bonds will be secured nv a
first collateral lien on practically The
entire electric light, power and street
railway business of Toledo. Thev are
being offered at 9Sh, to yield 1882 per
cent
Bank Meetings To-day.-All the ma
tional banks will hold their annual
meetings to-day. Changes in the official
stats OF some of the larger institutions
are expected Many of the state banks
and trust companies will hold their an
nual meetings tomorrow and Thurs
day.
Note Issues Approved Stockholders
or the Cuban American Company at a
New-York tribune., 1918-01-08
a. 7. & 7. Notes Oyersubscribed

The subscription books to ss4O.0OO.
600 one-year 6 per cent notes of the
American Telephone and telegram
Company, which were formally opened
by the syndicate members at 10 o'clock
yesterday morning. We're closed fifteen
minutes later, with the announcement
that the entire issue had been oversuh. =.
scribed. The high interest weld. It
was said, made the notes especially at~
tractive to banks, which were the heav.
lest subscribers.
New-York tribune., 1918-01-08
Washington

l.. & LOSES Rate Dec;sion.-W ASH
INGTON, Jan. THE Supreme Court
decided against the Louisville & Nash
Vile in the case involving the right
Of the railroad to maintain lower rates
to Bowling Green, Ky, than Nashville,
Tenn, under the long and short haul
clause.
New-York tribune., 1918-01-08
Elections

Robest c. Stanley has been elected
first vice-presdent of the international
Nickel Company, to succeed f. T. Wood,
resigned. Mr.. Stanley was formerly
general superintendent of the COM
panys Bayonne plant.
New-York tribune., 1918-01-08
General Motors Meeting TODAY

.'roe01S 17ett1rg 1O-u1v
Directors of the General Motors
Company and the Chevrolet Motor
Company were scheduled to meet YES
terday, but the meeting was POSTPONED
until to-day owing to the inability of
some of the board members to be nres-
ent because of the snowstorm in the
West Wall Street has revived the re-
port that the two companies. already
under the same control, will be MERGED
The Chevrolet Company may 90 into
the combination, it was said, on a basis
somewhat better than General Motors.
botn corporations pay annual dvi-
dends of 12 per cent.
New-York tribune., 1918-01-08
Special Dividends

Standard Motor Construction Com
pany.-An extra dividend Of 20 per cent
has been declared by this concern out
of 1917 earnings, payable February T.
1918
New-York tribune., 1918-01-08

American Window Glass Machine
Company.--A dividend of 14a4 per
cent has been declared to apply on
back dividends on the preferred stock,
payable January Is to stockholders of
record January H.
New-York tribune., 1918-01-08

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., 1918-01-08
Corporation Returns
Western MARYLAND

Western Maryland's gross revenues
for November were s1,1S7.85l, an in
crease over 1916 Of $134,815, but ex-
penses for the month increased $751;
100, the total being s87C,3GA. Net
operating income, including S3S,7S7
received from rents and hire Of equip
ment, was $307 ,274, or s2.325 less than
in November, 1916. For eleven months
ended November 80 net operating in
come amounted to S3.6O3 .064, or SlO3.-
439 more than during the correspond
ing period in 1916
New-York tribune., 1918-01-08
Telephones:
Hanover 6514

ply of funds, but rates remained un-
changed.
Ruling rates for money yesterday,
compared with year ago, were as
follows:
Yesterday. Year ago.
Call mOncy &c., 3Cc
New-York tribune., 1918-01-08

special meeting yesterday approved
the issue of S6,000,O00 serial notes rec
commended by the directors.
New-York tribune., 1918-01-08

Silver Bars in London, 451sd, un-
changed; New York, 9olsc, unchanged; :;
Mexican dollars, 73c, unchanged.
Sub Treasury. - New York banks
gained from the Sub-Trcasury $4,000.
BOSTON, Jan. THE Federal Re
serve Bank Tor this district has ad-
vanced the discount rate on trade &C
ccptances from to Z per cent.
London Money Market.--LONDON,
Jan. 7.-Money was in good supp y at
3i4 per cent. Discount rates-Short
bills, 31-32 per cent; three month
bills, 132 per cent. Gold premium at
Lisbon, 1000.
German Bank Statement.-BERLIN
via London, Jan. THE statement OF
the Imperial Bank Of Germany, issued
December 81, shows the following
changes, in marks: