davidaulloa/AmericanStories huggingface dataset:
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
M'ADOO TO DECIDE
RAILROAD CONTRACT
Tentative Draft Now Awaits
Director-General's Approval
or Revision.
WILL RETURN HOME SOON
Amendment Adds Rentals Paid
to Leased Lines to Interest
Sinking Funds, &c.
WILL RETURN HOME SOON

WASHINGTON. July 30.--The first thinr
that William G. McAdoo. Director.Gen.
eral OF American Railways, will take up
as soon as he reaches this city one week
from to-day is the railway rental con.
tract. The final draft OF the contrac,
as agreed upon between Judge Payne
representing the Railroad Administra-
tlon, and the Railway Executive Ad.
v.sory Committee. which had full au.
thority to close the negotia tons from
the railway presidents at their meeting
in New York on July IL. will be placed
before him. At the same time Mr.. Nc
Adoo will receive the protests OF the
Warfield committee. representing life
insurance companies and other large
railway stockholders. His decision will
be final.
In the meantime the officers and d.
rectors OF the railroads OF the United
States. provided present plans are car.
ried out, are to receive copies OF the
Anal draft subject to any changes that
may be ordered by the Director-Gen.
oral. This contract will not differ
much from the copy exclusively
published in THE Sun on July . and
accented in the main by railroad execu.
tives at their July IL meeting. At the
time the railroad presidents made as
their only request the contention that
leased lines should be placed on the same
basis as fixed charges
The amended contract, II is learned
here to-day. contains a clause under
section 1.-THE terms of compensation,
adding the rentals paid to leased lines
to the other items. such as Interest,
sinking funds and sums required to keep
up the corporate organization. which
must come ahead OF any deductions
from the standard rate Of return.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
CONSOLIDATED EXCHANGE.

Net declines from a fraction 10 moro
than a point were registered in prices at
the close OF the market yesterday on
the Consolidated Stock Exchange. Final
prices were substantially higher than
the low levels of the session. but the
closing tone was nervous and unsettled
After holding steady and dull during
the greater part OF the session a heavy
selling movement, initiating in steel
common. developed suddenly In mid
afternoon and prices dropped rapidly
throughout the list, the average loss
being about . points before the bottom
was reached. The lethargy of recent
days gave place to great activity. In
the final half hour values recovered
about half of earlier losses There was
no satisfactory reason assigned for
the action OF the market. There were
runors that the Steel Corporation would
reduce present dividend rates, and there
was also a iirmer tone in the money
market, and war news told of des-
perate fghting. but whether either or
AL OF these reasons were responsible
for the violent movement could not be
determined, That the first was not
founded on fact was proved that tne
market closed when the regular rates
were announced The one issue not
to show net loss in the decline was
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31

Traders are quite at n loss to under
stand why the market should act so con-
trary, for these issues which they con-
slider short sales turn out somewhat diff
ferently, as in the cases of ST. Paul and
Consolidated Gas. In reference TO the
last named stock an active Stock EN-
change firm says that only spectators
who in considerable numbers have been
apparently short of the stock were At
all surprised that the Consolidated Gas
Company last week declared the quar-
terly dividend at the regular rate. Few
companies are In relatively stronger po-
sition as to current accounts, while the
careful attention to every detail of labor.
purchase OF supplies and methods OF
management has enabled n substantial
cut in the amount of decrease in net
revenue TO a basis much more favorable
from the stockholders standpoint than
has been seen In other great public utili-
ties. In every possible way little savings
have been. man. For instance, in the
department handling the rental of in
stallations for gas utilization new poll
cies have been introduced which have
operated to benefit the service to the gas
consumer and at the same time improve
the results TO the company"
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
Roads to Use Besse mer steel.

One important matter settled at the
conference here Monday between Charles
NJ. Schwab, j. Leonard Replogle. United
States Steel Administrator. and repre-
sentatives Of the steel industry. was the
substitution Of bessemer steel rails on
all the railroads of the country. though,
Mr. Schwab, in his pleasant interview
following the conference, forgot to men,
ton II. Director General McAdoo APP
proves OF the use of the bessemer steel
because OF the vital necessity for other
grades OF steel for Federal war work.
This means that roads like Pennsyl-
vania. New York Central and others
which have expended huge sums of
money in developing a special type OF
steel rail will have to go back to bes-
semer grade on all future maintainence,
or until such time as the steel industry
gets ahead Of wars pressing demands.
The change Is regretted by railroad in
terests for bessemer steel rails do not
last as long by five years as the. latest
grade developed especially for the larger
roads. But railroad men are willing to
do anything to shorten the war, and
they will accept the Steel Administrator
decision and give him all the assistance
within their power This change in the
grade of steel for rails may explain the
delay in Government price fixing for
rails. though 1t Is expected the matter
will be officially settled very soon. A
conference was held in Washington yes
terday on the subject and some an
nouncement may be released this week
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
Amendment of Drafted Contract.

Amendment or DRAFTED Contract.
Under the newly amended draft par
agraph r OF section 7 will read about
as follows. the added clause beng
placed in parenthesis
THE said compensation shall he paid 70
the company quarterly. on the last days ~
March. June, September and December
OF each year for the quarter ending
Herewith. except that the first install
ment shall be due upon the execution ~
this agreement. and shall include all
prior instruments then unpaid. but from
each instalment there may be deducted
any amount due by the company under
paragraphs a and d of section
hereof. under paragraph b of section
hereof, and under paragraph b Of seq
ton 6 hereof, and all amounts 80
Quired to reimburse the United states
for the cost of additions and bettermens
made to the property of the company no.
justly chargeable to the United States
unless such matters are financed or
otherwise taken care of by the compar'
to the satisfaction of the Director-GeH'
eral. and the Director-General may an-
portion any such amounts to two o'
more subsequent instruments; provide
however. that said power to deduct the
cost of additions and betterments ~.
Justly chargeahle to the United States
shall not be so exercised as to prevent
the company from paying out the sums
required to support it's corporate or
ganization. to keep up sinking funds 10y
the Gompany's debts required by con.
tracts in force December 81. 1917 II
pay the rentals for leased lines as r.
qured by contracts in force December
81, l91D. for interest which has hereto
fore been regularly paid by the com.
.8.1
under Federal control and approyei b"
the Director-General. ="
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
Railroads Gain vital Point.

A director of a road greatly interested
In the leased line clause OF the standard
railroad contract Is authority for the
statement that the latest draft of that
act. which will be in the hands of rail-
road officials soon. comedies everything
that the railroad executives desired on
that point. In other words. the con-
tract now protects the integrity OF the
leased lines and guarantees them their
pro rata share of Government compen-
saton based on the three year period
ended June 80. 1917, the same as other
lines. In addition 1t provides that rent
ais paid by railroads and earnings OF
leased lines can be figured on the same
basis as interest charges, which explains
tho recent strength in stocks of roads
like New Haven. St Paul and others
with big interests in leased lines. The
concessions of the Government on these
points were known in certain quarters
last week and in fact 1t was reported
that directors OF some of the roads in
volved were notified before some others.
which may account for the heretofore
unexplained activity in certain low
priced railroad issues since that time
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
The Financial Position.

Consolidated Gas is a typical instance
of the financial strength in trying
time as the result OF the steady turning
back for years OF n large part of the net
profits" adds this houses review. 1T is
only by consideration of the total profits
of all Consolidated Gas subsidiaries
rather than of that portion paid over TO
the Consolidated Gas treasury that one
arrives at the actual earning power of
the Consolidated Gas system. Up to the
time we went into the war such profits
for long term of years we're we'll in
excess OF Is per cent. on the company's
stock after provision for all prior
charges. The accommodating surplus OF
the system, represented by cash items
Or property. has come from the differ
ence between this actual earning power
and the amount made actually available
to the Consolidated treasury for divi-
dends or other uses In all this period
the capitalization of the company has
increased. we believe. to a less extent
than that OF most similar public utili-
ties"
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
FINANCIAL NOTES.

An offering OF additional common stock
of the p. Lorlllard amounting TO ss.o62,24o
will be made at par to holders OF record
on August 8. Stockholders Will be per-
mitted to subscribe to- one-thrd of the
present holdings and subscriptions will DO
payable August 20 at the New York Trust
Company.
National City Company is offering a.
600, 900 per cent. notes of the Grafton
knight Msnufaeturins Company; due
prices from 80 to ssh. the yield being
from approximately IN per cent. to IN
per cent.
National Acme Company reports profits
for the quarter ended June so last of
Si,S4osss compared with Sl,++s.obi for the
same period IN 1917. Net sales amounted
to ts.sos.5sl. against A72e.t5s In 1917.
Phillips Sheet and Tin Plate Company
OF rlttsburg has changed Its name 10 the
wierton Steel Company. There is no
change In ownership or In personnel of
the oficiais or directors.
A. b. Leach & Co.. Inc. are offering
Hydraulic Pressed Steel Company $3.5O6.-
900 hrst mortgage and collateral trust Z
per cent. gold notes due July !, 1871. The
proceeds will be used to retire notes due
october ~. 1913. for plant extension and
additional working capital.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31

This guarantee of the integrity ~ tire
leased lines Is held TO be the most ir-
portant Of the concessions made by the
Railroad Administration and SCI down
as the fruit of the policy OF quiet ard
steady negotiations pursued b. tho "a 10
road executives advisory comm 'f'''
In addition the question of interest A.
lowances is solved. 1t is understo'l, by
the grant OF a fixed rate for sums ~
pended from a railroads aCcumu.Ri"G
surplus and Of current interest rare
for sums expended by a railroad out ~
funds received from bond or note St.es
or from the excess OF standard COM
pensation over dividend payments
With these amendments the RAILWAY
executives advisory committee IS sl'.
isfied with the fairness and elui'E ~
the proposed contract OF coErs" :
leaves something to the discretion -
| the Director-General, hut railroad men
hold that this is unavoidable While re
United States is a participant no ne
world war and is constantly corfron'"c
with ever changing conditions '..e
contract as described above Is the Hii'i.
ard one and railroad stockh2l!cr- "l@
! have a month TO choose wh".hr- q,
accept this standard form or {" i.@ao
unusual circumstances for the neg 80
ton OF a special contract. For tNam.
| pie the standard rate of return Won
be unfair to roads Of the typ" ~ 80
| Frisco, which was In recelycfsn'p ahL'
| Ing the three years ended June 81 l''',
| and which spent extraordinary sums ~
| maintenance and property imirNN"
ments. which might have been G~,' -
pay dividends: Such road has rr-iT
claim to special treatment and a." ~
is left open for the neg pt!a'oN ~ 81.
| a contract. But when Mi VI \dr' pas
his o. X. on the standard form "i
! tract the so-called standard roads ',
| the country will be ready % p.'
| matter squarely before their s''. a
| holders.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
GOSSIP OF. WALL STREET.
A Bear Attack.

Aside from the sharp bear drive In
In the final trading security prices yes
terday were content to mark time until
the official announcement of the Steel di-
rectors' meeting was in hand. The fact
that II could not come until after the
close presented an opportunity for shorts
to attack stocks. and they selected Steel
common as the chief target. which
caused minor steels and some specialties
to sell of In sympathy. Up TO this
phase OF the trading there was little to
distinguish II from other recent sessions.
when quotations completely ignored both
war news and domestic financial and
political events. A few issues gained
point or so while others receded
fractionally under moderate offerings,
though the standard shares were firm
until the pressure became too great.
Prices recovered well just before the
closing,
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
BIG STOCK OF LEAF TOBACCO.
Aggregate Observation-Disclosures
900 More Than Year Ago.

WASHINGTON, July 30.-About 900. 900
pounds more tobacco were on hand
July l than was held on that date last
year, a canvass by tHe Census Bureau
just made shows
Aggregate stocks OF leaf tobac Geo
amounted TO l,3s6,O49. 1868 pounds, COM
posed OF 9s9,sl0.467 pounds OF chewing,
smoking, snuff and export types 3l5,-
9l5,2o5 pounds OF cigar types and So
3?3,6s6 pounds OF imported types.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
Turkish Tobacco and Peace.

Cable reports OF disagreement between
Germany and Turkey had little effect on
the market generally, though it con-
tanned suggestion of what might hap
pen to those tobacco companies which
formerly used large quantities OF real
Turkish tobacco, for II the Porte con-
cluded a separate peace these American
companies would be able to get tho
Turkish leaf. Tobacco Products would
be benefited most from the reopening of
trade relations with Turkey. and 1t was
reported in several firms that there had
been some fresh buying on the strength
of this possibility. The recent steady
upswing In the stock has been accom-
plished without any attempts to capital
ize anything other than the company
earnings.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31
The Steel Dividend.

The action of the Steel directors in
continuing the extra payments on the
common stock was not surprising to we'll
informed Wall Street. though the ex-
ceptionally good earnings for the second
quarter were not fully anticipated. In
that period the Corporation reserved
three times what It did in the first quar-
ter for war taxes and still showed S62.-
557,S9 net, compared with $56,96l. 42i
In the first three months OF this year.
And to show how good the corporation
felt about 1t the employees received a
10 per cent. increase in wages. effective
August !.
The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-31

~, raul although it was substantially
lower than the previous high ouota,Ion
The other railroads Melted substan,iU
losses at the close. Tobacco shares wa o
active and reactionary. with losses from
fraction TO about . points. Tradin,
IN Liberty Loan bonds was In goo
volume.
The Washington herald., 1918-03-02
THE HERALD CONTEST

The Herald has just concluded second en-day contest
for prizes for policemen letter carriers and femen who sold
greatest number of saving stamps and thrift
The total of money raised by these contests
will exceed 100000 The achievement is remarkable when
comparison made with the whole effort sell in
the District of Columbia
The initial credit for these two contests must to
James ODounel, who gave $I5o the first and
$3.50 to the second In the first contest Mr. ODonne
listed contributions of similar from Ross P An
drews and NJ o. Leese In the second Mr. ODonne
gave $25o, and similar amount contributed by Col
Robert n Harper, Harry Wardman and William J. Guide.
The Herald glad of the opportunity perform
service that helpful the government and is grateful
to the pubhcspirited gentlemen who contributed
ousH to the contest fund To Mr. ODonnel special credit
is DUE for it his original idea and his initial money that
made the plan succeed ',.-:>.-. q s.'
To the policemen, fremen and letter carriers who entered
the contest with zeal and carried glorious conclusion
the thanks of everybody due. was high patriotic
ice well performed .ts.N .. +.
The Washington herald., 1918-03-02
THIRD LIBERTY
LOANSTARTS
ISSUE APRIL6
Anniversary Of U. S. Enter,
ing War Date Set by
McAdoo.

Secretary McAdoo last night set
April s as the date for the opening of
the Third Liberty Loan campaign. 1t
is the first anniversary Of our en-
trance into the war against the Kaiser.
The amount, terms. and conditions
Of the loan have not been decided.
Secretary McAdoo said, because these
features are dependent upon further
legislation. In making the announce
ment, Secretary McAdoo said:
VIII Ask Congress Soon.
II expect to ask the Congress at an
early date to grant the necessary ad-
ditional authority. OF course the open
ing date of the campaign Is somewhat
dependent upon the new legislation,
but 1t is hoped and believed that the
matter can be considered and deter
mined in ample time to begin the cam
paign on the date suggested.
April will forever be a conse-
Grated day in American history. and
it seems peculiarly appropriate that
the opening OF the second year Of our
participation in this war for the honor
and rights Of America and the free
dom of the world should be celebrat-
ed with a nationwide drive for an
other Liberty Loan.
THE campaign should begin with
great demonstrations of patriotism in
every city, town and hamlet in the
country that will truly express the
spirit of aroused America. On this
date every American should pledge
anew to his government the full meas
ure of his resources and resolve to
make every required sacrifice in the
same fervent spirit that impels our
gallant sons in the trenches of France
and on the waters of the Atlantic to
shed their blood in Americas sacred
cause
To carry forward America essen
tiaI part in this war for righteousness
and justice, every man and woman
in the country must lend their avail
able means to the government. and I
know of no more fitting time for such
a patriotic response to the call of
duty than the beginning Of the second
year of the war.
Suggests Patriotic Paradss.
The campaign in all probability will
last three or four weeks, and an
nouncement OF the opening date is
made at this time in accordance with
my promise to make public all matters
90 5ected with the loan tcss soon IS
determined and in order that ample
tinue may be given every community
to prepare for the event"
The Secretary suggested that pa
rades and. patriotic meetings be held
in all parts Of the country.
The Washington herald., 1918-03-02
POSTAL TUBES
BUY FOR j. S.
RECOMMENDED
Pneumatic Channels in Big
Cities Held of Value to
Government.

Government ownership of the postal
pneumatic tubes OF New York, Phila-
deiphia, Boston, Chicago and st.
Louis was recommended to Congress
today.
The Congressional Commission ap-
pointed in 1917 to investigate the value
of the tubes and their facility Of seIv-
ice. recommends the purchase almost
unanimously. Only one member is
against it.
Postmaster General Burleson fought
hard last year to dispense with the
tubes. holding that they are no longer
necessary and should be superseded
by automobile delivery.
The commission which examined the
tubes says the substitution Of auto
mobiles for the tubes would cost but
Sl14.552, but the motor cars would
cause a delay in mail delivery and
be a menace to life.
Part of the report sets out that
first-class mail demanding a high
rate. should have special attention.
The signers say:
1T is not a question of what
character of service is sufficient,
but what is the best possible serv-
i've within reasonable limit of ex-
pense that can be provided for such
important customers of the postal
service"
- Senator Bankhead of Alabama.
Hardwick of Georgia, and Weeks of
Massachusetts,; Representatives Bell
of Texas. and Steenersen of Mime
sofa. signed the report. Represen-
tatiVe Rouse Of Kentucky, will file
a minority report
The Washington herald., 1918-03-02

They took all except first, second,
eighth, twelfth, nineteenth and twen-
ty-ninth.
Counting the totals only of the
thirty winners give the large sum OF
$12S, ,717.49. which in itself is more than
a score of thousands of dollars in ex-
cess of the entire amount OF stamps
sold in the first contest, which itself
was remarkably successful.
Capt. c. Z. Fathers and c. G.
Barteman alone sold about $4,000
worth Of stamps.
Many contestants who sold between
$500 and 81, 100 worth of stamps did
not win prizes, which proves the keer
competition which existed among the
contestants.
When it comes down to plain facts
every contestant is q winner and II
is this spirit which will be in evil
derce at the Tabernacle this even.
ing.
There were many close finishes in
the contest and five contestants who
sold in the 5000 were exceedingly
closely punched.
Goal In Exceeded.
Officials at the war savings stamp
headquarters threw their hats in
the air when they heard that The
Herald's second contest had even
exceeded its own high-set goal and
sold many thousands of dollars
worth of stamps over the first
QUARTER OF A MILLION.
Early figures Thursday night in
dicated that the second contest had
sold stamps slightly exceeding
CONTINUED on PAGE TWO.
The Washington herald., 1918-03-02

Senator K. d. Mcclellan. of Ten
nessee. has become one of the in
teresting political personalities in
the capital today by virtue of the
close line-up in the Senate Com
mittee on Military Affairs.
IL Mcclellan votes with the ad-
ministration the war cabinet bill
Will be rejected by, the committee
by to27 -
IL he votes with Senator Cham
berIain, the bill will be put on the
calendar without; recommended
tion. I'D
Mcclellan has supported the war,
but early developed an awful
crouch on the War Department.
Mcclellan was for three terms a
member of the House. He was
known then 40 as a close friend
OF Champ Clark. (s) as an eligible
bachelor. fond of tea dansants, t3)
as one of the 'best-dressed men in
Congress. (D as the foe of the
packers and cold storage men. t5)
as q hard-working. and hard talk.
ing member of the Military Affairs
Committee, who didh't believe there
would ever be any more wars.