davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-10-10
Expect Many More
Banks to Join the
Reserve System
Non . Member Institutions
Have Total Resources of
$7.6OO.OOO,OOO

Recognition of the urgent need Of
mobilizing all Of the country's avail
able credit resources for war purposes
is expected to bring many more state
banking institutions into the Federal
Reserve banking system, according to
information obtained in responsible
banking quarters yesterday.
Banks in the United States which
were not members of the system in
April had total resources of $780,
100000, of which $1,250,000 900 were
Of banks in the New York district.
The tota! number of state banks and
trust company members on October 8
was 791. of which eighty nine are in
this district. There are in all 272 state
banks and trust companies in this dis
trict which are eligible for member
ship, but which have not yet joined.
Since July l twenty-three banks in
this district have joined--six in July,
seven in August and ten in September.
The number of applications on hand at
the present time indicates that the
number admitted in the current month
will be about the same rs in Sep
tember
New-York tribune., 1918-10-10
Lackawanna Steel
Earnings Decrease
Company Reports Profits at
Annual Rate of $22 a Share
in September Quarter

Earnings OF the Lackawanna Steel
Company fell off sharply in the quarter
ended September 80 last, according to
the statement issued to the stockhold-
ers yesterday, disclosing profits at an
annual rate of $22 share. compared
with approximately s29 in the preced-
ing quarter and $A8 year ago.
Net earnings of the company aggre-
gated $6,561,517 for the quarter. con-
trasted with $7,595,2os i'll the corre-
spending period Of 1917. A special re-
serve of S3,750,0O0, the same amount
as in the June quarter, was set up to
cover taxes and other contingencies.
Profits, after all charges, amounted to
81 1892, ,O95, compared with $4,247, ,146 in
the cores spending period Of 1917.
For the nine months of 1918 ended
September 80 the company showed
profits after charges and war taxes of
S6.991,37 equivalent to 1891 share,
compared with profits Of $l2,749,219, or
1862 a share, in the corresponding
period Of 1917.
The company had on hand on Sep
tember 80 untitled orders aggregating
451,4O5 tons, against 556,207 tons on
June 80 and 1882 tons on September
80, 1917.
New-York tribune., 1918-10-10

In d u striaI s
Cotton

1here was further severe decline
IN the cotton market yesterday, with
December and all later deliveries
breaking below the 30-cent level. The
impression prevailed that old long lines
previously held on the expectation that
improving peace prospects would prove
bullish factor We're being liquidated.
while selling was also promoted BIZ
the continued good weather in the
South and further hedging for South
ern or Liverpool account.
December contracts broke to s2s.se.
or Sc points below Tuesdays CLOSING
figures and more than 61s cents below
the high record of last month. There
was enough covering to cause rallies
Oh several points in the late trading
and December closed at 3O.14. but the
tone OF the market was unsettled, with
the general list showing a net loss Of
~ to 81 points at the close.
Ihe market opened steady at an ad-
vance OF to 20 points, and active
months sold 20 to 27 points net higher
tlgnt after the call on covering and
trade buying. This bulge met in
creased selling, however, and prices
very soon weakened, with offerings be-
coming heavier after the publication
OF the favorable weekly report from
the Weather Bureau.
There was another rally of 25 or SO
points during the middle OF the dav,
but this also met good deal of cotton,
and the market broke again, reaching
the lowest levels during the middle Of
the afternoon. October sold at 80. SO
and January at 29.37, with active
months generally showing net losses
of 6S to S6 points.
A number of reports seemed to be
reaching the trade that the South was
showing disposition to sell less free
y at the decline and would hold around
the 30-oent level. A fairly large busi
ness was officially reported in some of
the leading spot markets, however, par
ticularly at Dallas. with prices ruling
about 81 to 15S points lower. There
were no exports yesterday.
The range Of prices yesterday fol-
lows:
New-York tribune., 1918-10-10
September Pig
Iron Production
Sets New Record
Blast Furnace Output a,
Annual Rate of Al, $780,
600 Tons

American blast furnaces, stimulated
by the unprecedented war demand for
steel, broke all previous records in
the history Of the industry in Septenl-
Der in daily pig iron production. Ac-
cording to The Iron Age" 1892
tons OF iron were turned out each
working day of the month, q gain of
4,6O0 tons a day over the August pro-
duction.
The fact that October, with its
thirty-one days and generally favora-
Bile weather, is always set apart for
ecord-breaking points, says this au-
thorlty, to continuance OF the good
work begun last month. The Septem-
Der total was 3,41S,27O tons, against
3,3S9,5S5 tons in August. Fourteen
furnaces went out. while seven blew
IN, the total in blast on October !
beng 3G5. September production was
at the rate Of more than 41,5OOOOO
tons year, against less than 4O,OOo.-
oUo tons year as the August rate.
"n lie the official figures for the first
nalI OF the year were only 1927 .73O
tons.
1enditions in the steel industry IL
seif are not so favorable owing To
the spread of the influenza epidem ic
10 the Pennsylvania steel mills. Steel
output in Eastern Pennsylvania has
been cut down> and Pittsburgh re-
ports increasing severity of the dis
case and fears for mill operations.
Larger orders for war materials are
coming. from France. New REQUIRE
ments IN that direction mean the fur
ther concentration of mill Operations
on rails, shell steel, barbed wire and
STEEL for cars. The orders of the
aiiles have been materially increased.
an urgent demand has been presented d
lowing the recent order for "a ooo fnr
use by. the American Expeditionarv
Army iii France. This will invoIva
about $4,000 tons of steel. Other or-
ders for delivery in France include 15o
mlies OF portable track and $500 froos
and switches --'0'' l. 70 :
New-York tribune., 1918-10-10
No Surprise in Paris
Over Wilson Reply

PARIS. Oct. e.-President Wilson's
reply to Germany caused no surprise
and no extraordinary fluctuations ON
the Paris Stock Exchange, which re-
manned calm and firm. A prominent
member Of the Bourse declared that
the reply had been confidently ex-
pected and accurately anticipates; thus
the market WAS ready upon its opening
to-day.
The capture Of Cambrsi, which was
announced officially on the Bourse at
2 p. m, caused greater advance and
more activity, the influence of military
events being felt more keenly. Notice
able among the active stocks were
Mexican securities, which rose consid-
erably. Russian and Turkish shares
also were much sought, the Russian
1909 AZ per cent loan reaching sc
francs, an advance of 2 points since
Monday.
New-York tribune., 1918-10-10
Security Owners May
Contest r. r. Contract
Adopt Resolution Urging
Trustees of Mortgages to
Investigate the Law

The financial committee of seventy
representing the National Association
Of Owners Of Railroad Securities at a
meeting in New York yesterday adopt
ed resolution urging the trustees Of
railroad mortgages to Investigate the
law and facts appertaining to the effect
Of the (railroad) operating contract on
the rights of the bondholders whose
bonds are secured by mortgage of which
they are respectively the trustees, and
that such trustees take such action as
is necessary or proper for the protec-
tion of the interests of the bondholders
represented by them respectively and
as trustees"
This resolution was adopted, the
committee stated, following the receipt
of reports of special committees pur-
suant to the resolution passed by the
committee on September II under
which counsel were to take up with
Director General McAdoo certain ques-
tions in connection with the railroad
contract. There were ffty-one men,
bers present at yesterdays meeting
from twentyfour cities of the Union.
The prelude to the resolution re-
cited that the Director General had
declined TO take part in q test suit to
obtain an authoritative construction of
Two fundamental provisions of the
Federal control act. For this reason
u was decided to recommend that mem
bers of the securities owners associa
ton should take independent action to
protect their interests.
New-York tribune., 1918-10-10
McHugh to Head
Newly Organized
Discount Company
Board of Directors Consists
of Leading Bankers in
Financial District

John McHugh, president of the
Mechanics and Metals National Bank,
will head the Discount Corporation OF
New York, the new discount bank
which was projected some time ago
by leading financial interests in this
city. This was made known yesterday
in an official announcement that the
preliminary organization of the new
institution had been completed. The
company will be capitalized at $5,OOO,-
600. with surplus of $1,000,0O0. Its
principal business will consist of the
purchase end sale Of bankers and
trade acceptances.
The personnel of the board Of dl-
rectors has been selected from the
officers Of the banks and trust COM
panies. supporting the corporation,
and in addition to Mr.. McHugh will
include James S. Alexander, president
of the National Bank of Commerce;
Francis l.. Hine, president of the First
National Bank; Edwin S. Marston,
president of the Farmers Loan and
Trust Company; J. p. Morgan, head OF
]. P. Morgan & Co.; Steward
Prosser, president Of the Bankers
Trust Company; Charles II. Sabin
president of the Guaranty Trust Com
pany; James A. Stillman, chairman OF
the board Of the National City Bank;
Eugene Y. r. Thayer, president of the
Chase National Bank, and James N
Wallace, president Of the Centra
Union Trust Company.
1t was stated that the election o1
Mr.. McHugh as president would not in.
chanics and Metals Bank. A staff fol
the new corporation will be organized
as soon as practicable. The arrang-
ing of other details, such as location
the date of opening, etc, will be de-
ferred until legal requirements have
been complied with and the Capital
Issues Committee has approved the
issuance OF the conpanys stock.
"The purpose Of the formation o.
the Discount Corporation OF New
York." said the official announcement
"is to develop broad discount market
in this country, as it is recognized
that, whereas the discoun. business
previous to the war was almost com
rletely controlled by Great Britain
there is now an opportunity for rhe
development OF a big business in this
connection in the United States. with
New York as one of the principa
money markets of the world.
"The formation Of such an organiza-
tion is deemed OF prime importance
at this time, inasmuch as the coun-
try is facing the most important and
far-reaching fiscal problem in its his.
tory-namely, that Of providing ample
funds for the government and al the
same time caring for the financial re.
qurements of private business. Ii
view Of this situation the field for such
an institution as the Discount Cor.
poration Of New York is an extremely
broad one, and its useful and success.
full operation is assured. l. is felt that
the formation of this corporation viii
not only develop the market for bank
ers' and trade acceptauces, but viii
lead to the formation of similar com
panies, the need for which is becom
ing more apparent every day"
New-York tribune., 1918-10-10
Bank Resources
Jump $4,000, 900,

WASHINGTON, Oct. 9.-Total re-
sources Of national banks on August
81, were $1S,o43,6o5,o0O. The Con-
troller of the Currency in making this
announcement to-day said this was an
increase Of nearly two billion dollars
in resources since May i, 1917, before
the first Liberty Loan was launched.
The amount of Liberty bonds and Ger
viticates of indebtedness which the
government has sold and collected for
since that date. exclusive of certiG-
Gates of Indebtedness paid off during
this period is S14,275 900 900.
Controller Williams said that the in
crease in national bank resources is
we'll distributed throughout the whole
country and is confined to no special
section.
Loans and discounts on August 81
were s9,a93,0o0,0O0. a reduction since
June 20 of s126, 100000. Total deposits
were $l3,ss5 100000. reduction since
June 20 of s1350oO, 900, but an increase
over September l1.l9l7, of s651 900, 900.
New-York tribune., 1918-10-10
> u S t e n a n c G
Cereal:

Wheat.-No special feature occurred
in the wheat position except the an
nouncement by Mr.. Hoover that all
wheat offers will eventually be ab-
sorbed and that farmers should not be-
come alarmed and sell their wheat
under the government price. Receipts
continue quite liberal, while the export
movement is increasing. This should
bring about an improvement in the
general statistical situation and relieve
congestion.
Corn.-Fucther weakness was ex-
perienced in the corn market during
yesterdays session and at one time
values were down about 6 cents .
bushe! from the final of Tuesday. This
represented Il loss OF "a to SO cents
in less than two weeks snd a drop OF
over 90 cents from the high point Of
Continued on neat paasl
New-York tribune., 1918-10-10
The Selling in Steel

Much of the selling of United States
Steel common since the question of
peace has been a dominant factor in
stock market trading is said to have
come from sources who feel that the
After-t -the-war demand for The COM
pany's products will be greatly re-
stricted by the lowered credit stand
ing Of the European nations now at
var. 1t is argued that owing to the
enormous war debt that these countries
have piled up they will be unable to
buy on a scale that will approximate
the wartime purchases financed largely
through the credits extended by the
United States.
New-York tribune., 1918-10-10
Wealth Markets and Commerce
Dollars Versus Marks

LvIN W. KRECH, president Of the Equitable Trust Com
pany issued yesterday called attention to
Germany seeking her ninth credit while the
United Offering for sale fourth Liberty bonds
Germany to-day Offering her ninth loan to the amount of
Marks Mr. Kech pointed OUT and its betrayed
wareary will bc forced subscribe to the last pfenng
The nearly equivalent Of the fourth Liberty
translated into dollars Mark for mark, dollar for dollar
and shell shethat what the fight for the of the
Liberty Loan means to-day
The Liberty is behind its quota Our pride
achievements Of the Allied abroad is threatening the
success of the loan Other obstacles have es the campaign that
were other taxation higher cost of
living demands necessary charesal these have hurt;
but been potent the feeling Of overcon
dence in our military that the sacrifice
past"
New-York tribune., 1918-10-10
Relevant Comment
r 6 A,coboys Postwar Outlook

II. s. Alcohors Postwar Outlook
Judging from the heavy selling IN
U. S. Industrial Alcohol yesterday
there is evidently a preponderance OIL
speculative opinion that this stock will
suffer from the early return OF peace.
That there has been quiet puy,ng ny
important interests on the decline,
however, was stated to be fact in
we'll informed quarters. These inter
ests, it was said, based their purchases
on the belief that the company, even in
peace times. will be able to earn much
more than before the war, owing to the
large increase in its productive capac-
ity, which has been paid for out Of war
profits In yesterdays decline tho
stock broke to 9S?s. &, new low price
for the year. At the closing quotation
of o91a n net loss Of AZ points was
recordcd
New-York tribune., 1918-10-10
News Digest
Foreign

London Stock Tone Firm. LON
DON, Oct. 9.-The stock market had
a good tone to-day, but business was
small pending developments. Hon
duras bonds were the leaders in the
foreign section. while British issues
were dull owing TO war bond COM
petition. Rubber and industrial shares
showed some irregularity due to profit
taking. Shipping stocks and Argen-
tine rails were better. Money was
plentiful and discount rates were quiet,
New-York tribune., 1918-10-10
New York

r., American Druggists Stock Listed
FL me governing committee of the Stock
Exchange yesterday admitted to traSA
ing s3,695,760 capital stock of The
American Druggists Syndicate. the par
value of each share being $40.
Inspirations September Production
In September the Inspiration Con.
solIdated Copper Company produce 4
I,ooo'ooo pounds of copper, compared
with 100000 pounds in August. -
New-York tribune., 1918-10-10
Corporate Returns

Standard Milling Company.-Annna,
report for the year ended Aueus+ 81 a.
a1seloses inse net profits. after deduction of
interest charges. of S1.931 ,22T, which
compares with S1,668297 for the vear
eelore: After preferred dividends of
SooS'lol, balance amounted to s154o
700, or equal to S31,26 a share earnnd
". o-o 9o.l lo4'ooz common stock, against 81 :
A'9'l4o, or $26.72 share earned H..
preceding year Common div;donIo
were $4SS 663, leaving q surnlus fn,. ~
year Of 1853 ,403. - Lux 'he
~ Pennsylvania Salt NIanufactu,;nr
Sompany.-Net earnings amounfed 4e
?}l,ooo'ozo for the year ended June 20
iast' compared with S2,3S0.7lS for ,bo o
previous year. Other income wac s1d1
80 a' bringing the total income ~ e.
o99''Io After deductions Of sto7 2so
balance was s1,29l.94 which ;s acn.1 ','oI
10 1851 share earned on tba 81 son %a'
So So CO sSapl'al stock, against s1,s02 ,156. or
Sa..U0 go snare snare earned in the preceding
year. dividends paid were S93T5o(5
leaving a surplus Of s354,446. '''V''
American Power & Light Companv
NSuKusf Nu gross 80. s1.131. .a25 Inc. s26z oes
we've we've mos. gross. IL. 2.7O5,379 Inc I 7os ga
net after taxes. 5.oe7 ,so5 Inc. ala spa
New England Power System
SSuguse Sr gross -. $333.665 Inc. s1s4, 800
Fi,b Eiebt arser n,as enarges 2o.476 Inc. 1897
o0-9 si'er charges S7a.a24 Dec. 44.1si
New-York tribune., 1918-10-10
Cotton in Australia

A committee has been appointed by
the Commonwealth Board Of Trade to
investigate the facilities for raising
cotton in Australia and thereby con-
tribute to Great Britain's needs for
tlfat commodity. Cotton raising, to a
limited extent. has been tried in
Queensland with good success, the
amount of cotton accepted by the De-
partment Of Agriculture in May, 1918,
being 46,977 pounds, as against 10,163
pounds in May, 1917.
New-York tribune., 1918-10-10
Southern Railway
Prosperous in 1917

For the calendar year 1917 the South
ern Railway Company reported gross
revenues of s9O,716,569, compared with
S75,554,651 the preceding year. Oper-
ating expenses increased S11,0S9 ,531
and taxes advanced G1,047,137, with the
result that the years operating income,
amounting to $26,429 1862, showed gain
of only S3,030,569. A summary of last
years income account compares with
that Of 1916 as follows:
New-York tribune., 1918-10-10
The Dollar in Foreign Exchange

Neutral exchange rates developed
fresh weakness in this market yester-
day. continuing the decline begun few
days ago. The lowest prices for more
than year were established for Dutch
guilders, Spanish pesetas and Swiss
francs. scandinavian exchanges also
declined in response to selling pressure.
Foreign exchange dealers said the mar
ket was apparently discounting peace.
Closing rates yesterday, compared
with week ago, follow:
(Quoted dollars to the pound.)
New-York tribune., 1918-10-10

The above rates express tie cost OF
foreign money in terms of the Ameri-
can dollar. You buy IN English pound
sterling at, say, $4.755O. The intrinsic
parity is s4.96ss 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 il
greater than the demand in this coun-
try for pounds with which to settle ac-
counts in England.
New-York tribune., 1918-10-10
Consolidated Gas Segregation Plan
Reported

A report current in brokerage cir
cles yesterday, which was connected
with the recent strength shown by the
shares of the Consolidated Gas Com
pany, was to the effect that the COM
pany might segreeate its New York
Edison aSldings. The latter has been
a big Garner for number Of years
and is understood to have valuable
"hidden" assets which in the event of
a segregation plan might be distributed
New-York tribune., 1918-10-10
Canadian Pacific Up

Canadian Pacific, classcd as an "in-
ternational ISSUE" displayed pro-
nounced strength. crossing ITO for a
gain of more than points. The &C.
tion of this high priced rail was at
tributed to the growing belief in inter-
national financial circles that Germany
has about reached the end Of her rope.
New-York tribune., 1918-10-10
Money and Credit

The bankers money committee was
active in the call market yesterday,
loaning out substantial amount of
funds. Rates were unchanged at to
61a per cent for call loans.
Conditions in the market for fixed
date funds were unchanged. The banks
continue to withhold offerings and bor-
rowers are compelled to fill their needs
in the call market. Rates are firm at
around 6 per cent for all maturities.
Ruling rates for money yesterday,
compared with year ago, were as
follows:
Yesterday. Year ago.
Per cent. Per cent.
Call money:
New-York tribune., 1918-10-10

to Consolidated Gas stockholders, either
in whole or in part. In yesterdays
stock market Gas, after reacting to
991s, rallied in the late trading to
102ss, an advance of 8 IS points.
New-York tribune., 1918-10-10
Slump In Baldwin

Baldwin Locomotive was the most
vulnerable spot in the whole list yes
terday, judging from the ease with
which it was knocked down. That
issue fell from an early high Of S2as
to low of 747, closing at 75K. off 6as
points. Trading in Baldwin totalled
approximately $4,000 shares, making it
next to Steel common, the most active
stock in the market. Curiously enough,
while Baldwin common was suffering
such slump the preferred advanced
2$4 points on one trade Of 100 shares.
No Burns Brothers Melon
Directors Of Burns Brothers yester-
day failed to take action on a 40 per
cent stock dividend which is reported
to be under consideration. Merely the
usual quarterly dividends were de-
clared on the preferred and common
stocks. 1t was limited that at an ad-
journed meeting of the board on Oc-
toher Is the matter Of the stock dis
tribution may be taken up and some
action taken at that time. The directors
are said to have three plans under con-
sideration, one calling for the declara-
tion of the entire 40 per cent in one
lot or a distribution at the rate Of 21a
per cent extra every quarter until the
reported plan is consummated. The
third plan is said to call for the re-
tirement Of the preferred stock.
New-York tribune., 1918-10-10

At the annual meeting Of stockhold-
ers in Richmond, Va. yesterday Fair.
lax Harrison, Augustus Julliard
Henry b. Spencer and Henry Miller
we're elected directors for a term of
three years. On November IL & special
meeting will be held to submit to
shareholders the company's contract
with the government.
New-York tribune., 1918-10-10
Finance Economics

a moderate demand. Rates yesterday
were unchanged as follows:
Thirty Sixty Ninety
Spot de- days. days. days.
livery: Per cent. Per cent. Per cent
e | igible
mem ber
banks. .4I4@4 4ss@4I4 436@4A
e l igible
non-mcm-
Der banks.414@4A 4ss@4A 49a@4h
Ineligible
bank bills.5i4@4 5I4@424 614@43z
For delivery within thirty days:
Per cent.
Eligible member banks. ......... 4Ta
Eligible non-member banks..... 40
Ineligible bank bills.
New-York tribune., 1918-10-10

Commercial Paper.-lnterior banks
are the principal purchasers of com
merclal paper. Rates yesterday were
steady at around 6 per cent.
Bank Acceptances.-There is a large
supply OF bills in the market and on1v