davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Notes or Bonds
For Victory Same
In Bankers View
But Opinion Is That Con-
gress Ought Not to Tie
the Hands of Secretary
Glass in Fixing Terms

Bankers, in commenting yesterday
on the reported decision of the House
Ways and Means Committee that notes
instead of short term bonds should
be issued in the Victory Liberty
Loan, reverted to the familiar inquiry
of Shakespeare. asking naIvely what's
IN a name. Whether called bonds
or notes, short term obligations of
the United States would be for all
practical purposes identical. members
of the Liberty Loan Committee and
other leading tinanciers explained.
The bond market, too. was articulate.
expressing the reactions of many
holders Of outstanding government
SECURITIES. Liberty third and fourth
"a s were firm on the assumption that
the government would issue short
term notes instead of long term bonds
at higher rate of interest, which
would make the non-convertible out
standing issues relatively less valu-
able. The first 312s, however, sold off
on the belief that their conversion
privileges would become useless if
short term notes were issued as the
Treasury has interpreted the con-
version clause to affect only those
five years or more
Regarding this Interpretation of
the Treasury. several bankers and
bond men expressed dissent. holding
that the first Liberty. bonds them
selves do not thus specifically restrict
the conversion right to bonds of five
years or longer maturity. If the short
note idea is carried out, this point is
likely to be a cause of controversy.
Although bankers seemed to agree
that it was wise to give buyers of new
government securities the option be-
tween taxable and tax free issues and
to make the obligation short term, an
almost unanimous opinion seemed to
prevail that Congress ought not to
fix too rigidly the terms of the next
loan, but should leave much to the
discretion of Secretary Glass.
Investment bankers consider a week
long time ahead to decide on rates
Of forthcoming bond issues. and
regard two or three days as bet
ter, because market conditions change
so rapidly. especially in times of re-
adjustment. They emphasize what
they call the futility of deciding in
February the minute details Of a loan
that is to be foated in April. In this
connection a member of the Liberty
Loan Committee said that be believed
submission of the minute details of
the loan to Congress was bound to
result in compromises which would
make the issue unscientitic.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

$50, 900, 600 Credit for
Rebuilding Belgium
Supplies To Be Purchased Here
to Aid Country's In
dustrv

The first of after-the-war loans by
American bankers to aid in the re-
habllltation of wartorn Europe was
completed yesterday with the an
nouncement that a credit of S5O, 5000
had been arranged for Belgium. The
proceeds will be used to purchase sup
plles IN this country for rcestablish-
ing industrial operations in Belgium.
The syndicate Of New York bankers
which is handling the details of the
Company, j. P. Morgan &, Co., the Ma
tional Bank of Commerce and the Ma
tlonal City Bank. About seventy Bel
glan banks, with capital and resources
OF more than $3.50, 900 900, in the trans
action are represented by the Banoue
Rationale de Belgique and the Societe
Genera lie de Belgique.
Under this credit" said the an
nouncement of the American group.
the Banque National de Belgioue.
acting for the consortium, is to draw
gratis from time to time on. the syndi-
cate partIclpants. Each series of orig
maj drafts will be drawn at ninety
days sight, with privileges of three
rel renewals st Of ninety days each, and the
drafts will be sent to the syndicate
participants for Acceptance. The ac-
ceptances so created will be sold in
the open discount market and the pro-
ceeds placed at the disposal of the
belglah consortlum in this country to
pay for the merchandise purchased
here for shipment to Belgium.
The proceeds of this credit will
therefore, be used only to provide
funds in America to purchase American
supplies for reestabishing industrial
operations IN Belgium, and no part Of
TINS credit will be used for other than
lndHstrial and commercial purposes,
Obligations of the Belgian industrial
concerns, for whose benefit this credit
is being arranged, will be held in Bel
gum as security for payment of the
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Air Brake Cuts
Dividend in Half:
Plans Expansion
Starbuck Says Outlook Is
Bright and Believes 10
Per Cent Rate Can Be
Permanently Maintained

The annual dividend on the s1O.OOo :
ooo capital stock of the New York Air
BRAKE Company was reduced yester-
day from q $40 to a $40 annual basis
when directors declared QUARTERLY
distribution to shareholders of $3.50
a share. The annual report, which was
made public after the meeting, showed
a surplus for 1918 after charges of
S2,o52,553, equal to 5000 a share on
the stock, compared with 1884 a
share earned in 1917.
In explanation of the cut in the
dividend rate, c. A. Starbuck, presi
dent Of the company, said in the re-
port:
The Explanation
IL will be noted that the net earn
lngs for the year are more than suf-
hclent to continue the payment of the
dividend at the rate of 20 per cent.
However, the board of directors has
decided to pay at this time dividend
at the rate Of 10 per cent, being OF the
OPINION that the past earnings and
future prospects justify the belief that
TINS rate can be permanently main
tanned and still permit the COMPANY
to continue to enlarge its working
capital to enable it to take on some
special business now under considera-
ton"
Nh Starbuck said informally that
the proposed expansion of the COM
pany's operations related to plans for
entering the export field, but he added
that none of the details could he an
nounced at present.
Gross sales in 1918 amounted to
SlO,o8O, 5S4, an increase of 1923 ,546 over
the preceding year. Air brake sales
last year were the largest in the his
tory OF the company, and, according to
the president, the outlook is good for
very large business during the cur
rent year. None OF the company's
government orders have yet been set
tied and this was offered as the reason
that they are not included in the 1918
earnings. Mr.. Starbuck indicated that
the settlement would be satisfactory.
Reservations
or last years total expenses.
amounting to more than $4,000 900, the
sum of 1894 ,63S was charged to adj
expenses, royalties and
taxes out of the 1917 surplus. An adj
ditional reservation of 100000 was
also made for depreciation and taxes
from the combined 1917 and 1918 sur
plus of $8633,3S2. The cnmpany's
balance sheet showed total tax and
depreciation reserve of $1,000. 1871.
Accounts and bills payable as of
December 81, last, stood at S7.13O,226
Current assets included $2,36O,670
cash; S2,313,447 accounts and bills re-
ceivablc and S5,245, 009 inventory, of
which more than $2000,00O represented
government work in process of adjust
ment.
The 90 per cent dividends paid in
1913, the report disclosed, were from
the 1917 surplus. Expenditures by the
company last year on government war
contracts, placed in the assets column
of the balance sheet, were S3,928 ,024.
Gross and net earnings in 1913 would
have been materially greater, the an
nual report stated, except for the
influenza epdAsMic, which was very
severe in the company's shops during
October, November and December,
there being as many as 2,10O men Out
at one time.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

SO 1-3 per cent during the war, is
returning to its pre-war level. The
reason is simply that the shortage
of labor no longer exists; that the
mines are laying off the "fy-by-
nights and keeping only the mar
ried men, the steady men, and the
more efficient. One reason why
some companies did not curtail pro-
duction as much as they might have
in December and January was the
desire not to put men out of en-
ployment in the midst of winter.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Lcssing's Stores Not Sold

With the sensational activity in the
tobacco shares yesterday one could
hear almost any sort of report involv-
ing acquisition OF new operties. One
of these was that Lessings, Inc, which
operates a chain of confectionery, soda
water and ice cream stores IN the Wall
Street district, had been taken over by
the United Cigar Stores Company.
Lawrence Leasing, vice president, de-
MED that control or any substantial
interest in the company "has been ac-
Quired by another interest
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Injunction Stops Meeting of
Winchester Arms COMPANY

>EW HAVEN, Conn, Feb. f9.-An
injunction TO prevent the stockholders
of the Winchester Repeating Arms
Company from electing new officers
was read To- day at the annual meeting
" the stockholders here. AS result
re meeting Was postponed 10 February
70. Jhofnag G.. Bennett, president of
the company. read the court order,
which was issued on application Of
isifner w. Demarest, Of New Jersey. IL
~ believed the Injunction mar secured
81 behalf 81. stockholders who object
to the propbsed reorganization Of the
company.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Northwest Rail EARNINGS
Heavy Increase in Gross for
1913, but Net Falls

ST. PAUL, Feb. 19.-Statistics made
public here to-day on the total operat-
ing income of ten Northwest Railroads
o oeT lsl8 showed decrease of SIS, 664,-
3d. over the previous year.
,o1 ! ne INES had record total of SS49.-
.o''oao IN operating revenue. but the
tremendous cost of materials and labor
increased the total for operating ex-
pendltures to 1854 ,495, TAO.
inns total and other expenses re-
o 9uced the operating income to SOL
81 III, according to the statistics.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Hooking Valley Sells Notes

Kuhn, Loeb e. Co. have completed ar
rangemcnts to purchase $500, 900 five
year per cent notes of the Hooking
Valley Railroad, which will be offered
at 98M. to yield approximately $40 per
cent. This transaction is an outcome
of negotiations begun about the first
of the year to obtain an extension of
S5,0000 900 of per cent notes that ma
tured February /. An extension until
March was secured from the princi
pal noteholders pending the completion
of more permanent financing plans.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
LacIede Casiight's Net
Decreased in 1918

For the. year ended December 81,
1913, she Laclcde Gaslight Company
reports gross earnings Of $4,946,41O,
which compares with s4,800,265 for the
previous year. Operating expenses,
maintenance, taxes, etc, totalled
S2,S84, 152, leaving net income of
$2,O62,258. a reserve of $207 100 was
placed aside for requirements and con-
.tingencies. Interest and preferred div
sidends aggregated 1869 ,381, compared
With $l,329,534 for 1917 Surplus for
the year amounted to $485,117.
The companys cash on hand was
placed at s177,O69. Plants and invest
fnents amounting 90 500, 135,050 were
recorded at the end Of 1918. Common
stock Of $1,000 600 and preferred stock
Of 900 were reported among the
outstanding liabilities.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
RelevantCs Comment
No Security Co. for Guaranty Trust

TO 17~ouffty NOs tut Vud d1ttJ II uSt
The Guaranty Trust Company is not
contemplating the formation of a sep
arate security corporation to take over
its bond department. This statement
was made by an officer of the institu-
ton yesterday in denial of reports that
such a plan was under consideration
The Chase National Bank, the First
National Bank, the National City Bank
and the Liberty National Bank have
security organizations through which
they do business not permitted by the
national banking act.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
kclly-SpringGeld Shorts Squeezed

a sensational advance yesterday in
the common stock of the Kelly Spring
field Tire Company caught the shorts
by surprise, and their hurried efforts
to cover their commitments resulted in
Il gross gain OF II points. At the clos
ing price OF 81 ~ there was net rise
or l01a points. Other rubber shares
did not participate in Kclly-Snrinv-
fields skyrocketing to any noticeable
extent.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

Sub-Treasury. - The Sub Treasury
gained S5,123,000 from the banks on
Tuesday.
Silver.-London, 47Bd, unchanged;
New York, 1o1 &c, unchanged; Mexican
dollars, TIC, unchanged
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Finance Economics

Hesitation is certainly not = re-
fiected in our foreign trade for jan
uary Exports for the month of
S623, 100000 compared with $780,
100000 in December, and exceeded
the former monthly record--that of
January, 1917 by $4,000, 1000.
This is curious, in view of the cessa-
ton in war demand and the belief
that reconstruction demand had not
yet made itself felt. Last months
imports of 100000 were so
small as to make the balance Of
trade in our favor also the greatest
for any month in our history
Closing at 1884 Monday, 8 = per
cent Liberty bonds fell to 98.74
Tuesday, and declined yesterday to
9S.44. This reflects simply that
these bonds will not be convertible
into the coming issue if that issue
is put out in the form of notes."
The other Liberty loans were
strong, as the expected competition
of long-term issue is removed by
the suggestion of two to five year
obligations.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

A slightly lower rate in demand ster-
lag and higher rate in peseta cables
were almost the only changes in yes
terday's unusually dull market.
Closing rates yesterday, compared
with week sgo, follow:
Quoted dollars to the pound.)
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Stock
holders
THE MORTGAGE BOND COMPANY or
NEW YORK.

The following Bonds have been drawn
for payment on April !. 1919 on which
date the interest will cease Series .. Nos.
53e So. 1851, 1897, 2Q55. 20s9. A-54o.
B-9ee. B-27s7. B-3792. and Will be re-
deemed at par with interest 10 that date
upon presentation a. any Of the following
places for payment:
In New York
At the Office of The Mortgage Bond Co.
OF New York.
Al tho once Q. I.adenburg. Thalmann &
Company.
In London
At the Banking House OF Coutts & Com
pany.
In Paris
AT the Banquc de rUnion Parisienne.
In Amsterdam
AT the Observation-Disclosures Broes &
Gosman. =
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

The Shawinigan Light and Power
Company reports for the year ended
December 81, last, gross earnings Of
s3,o2lO71, compared with $2,9O2 ,21o
for the year before. Expenses, etc.
were S1,2S6,021. Interest on securities
amounted to $S24,959, against $685.
for the preceding year. Depreciation
reserve aggregated 100000, the same
as TOR 1917: Stockholders shared in
dlvldends OF $1,077,527, leaving a sur
Plus OF $332,567, which, added to pre-
surplus of $362,71O.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Divid en- d S
Decreases

New York Afrbrake Company. The
regular quarterly dividend has been
reduced from per cent to 2is per
cent, payable March 2t to stockholders
Of record March 4.
= Regular Declarations
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

The Fedt raj Reserve Bari. Of New
York has put in force the following
schedule of rediscount rates which
apply to bankers acceptances: Maturi-
ties up to Is days, per cent; IS to
60 days, inclusive, AZ per cent; 81 to
80 days, inclusive, AZ per cent.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
WILLIAM CRAMP Il SONS SHIP AND
ENGINE BUILDING COMPANY.

Sinking fund NOTICE..
FIDELITY TRUST COMPANY formerly
The Fidelity Insurance, Trust and Safs
Deposit Company. Trustee under Mortgage
of the William Cramp & Sons Ship and
Engine Building Company, dated March I.
1922 invites tenders or proposals for honda
issued under said Mortgage TO he Eurren-
dered for redemption. proposals to Ia
opened and awards made on February "a
1919, at IL o'clock NJ
rIDELITY TRUST COMPANY.
Trustee.
VIM. +. GEST, President.
January so. 1919,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
WARWICK, MITCHELL, PEAT 4 co.
Accountants and Auditors

We beg to announce that we have admitted
into partnership Mr. Thomas Richie, for
many years Manager of our Bank Audit De-
partment; Mr.. James B. Campbell, C. A.,
c. P. A., who has been Manager since 1911 of
our st. Louis Office, and Mr.. Andrew Stewart
M. A. B. L., G. A. formerly Manager of our
Vancouver Office and now at our New York
Office.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20
Money and Credit

Call money on the Stock Exchange
continued to rule at 51a per cent for
mixed collateral. The opening and re-
ncwal rate was per cent, and the
quotation closed at per cent. Loans
on all-industrial collateral were made
onehalf Of l per cent higher.
The time money market was feature
less, with nominal quotations ranging
from 81 to 5 Il per cent for all periods
from sixty days to six months
Yesterday. Year ago.
Pc" cent. Per cent.
On mixed collateral 5Ia 6
On indus collateral
Time money (mixed collateraD:
Sixty days ........ 5I4@p5Ia.6
Ninety days ...... 5I4@5I2 6
Four months ...... 5A@5I2 6
Five to six months 5A@5Ia 6
Bank Acceptances.-Rate were steady
in fairly active market yesterday
Thirty Sixty Ninety
Spot de- days. days days.
livery: Fer centPer cent. Per cent
Eligi b 9
member
banks So. .41s@4 4A@4a 4h@4A
Eli 81 b c
nOn-mem-
Der banks.4is@4 4Is@414 435@44s
Ineligible
bank bills.514@4Ia 514@4Ia 5I4@434
For delivery within thirty days:
Per cent.
Eligible member banks ....... 4is
Eligible non-member banks. go. 4La
Ineligible bank bills.
sDiscount Rates.-The following table
gives the current rates of the twelve
Federal Reserve banks on commercial
paper for all periods up to ninety days:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

Cleveland Bank Merger-CLEvE-
LAND. Feb. ia bank consolidation
involving S7o,oOO,00O, whereby the
Guardian Savings and Trust Company
purchases the entire assets of the
Cleveland National Bank, was an
nounced to-day f'-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

Nominal.
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, 1919-02-20

for if it sells below the expenses of
"high-cost" producers, those produc-
ers shut down, and the smaller sup
ply of the commodity either raises
its price or average cost of produc-
ton is lower, because the high-cost
producers are out of business. New
copper will not be mined if the
price does not meet cost of produc-
ton. But consumers at present do
not care whether new copper ia
mined for a time or not, for there
is q vast supply accumulated, and
until that is sold off, at a loss per-
haps, current costs of production
do not count.
Men in the copper trade object
to the statement that a billion
pounds of the metal is "accumu-
lated" They dc not deny the fig
ure, but they say that there is al
ways about half a billion pounds
Of copper accumulated, in the sense
that it is in process somewhere be-
tween the condition of concentrates,
smelted metal, refined metal or cast
ings. This would leave the additional
surplus only about half billion,
but even this is nearly equal to half
q years peace-time production in
this country. How much our gov
eminent holds is not known. 1t
has been estimated at 225 100000
pounds. One authority estimates
that France has something like 200,-
100000 pounds of copper on hand,
and another authority places the
combined holdings of the British
and French governments at 3O0,-
100000 pounds, but these are
guesses: AS to Germany, which
took from us 200,0O0,000 to 30O,-
100000 pounds of copper a year
before the war, there is a good deal
of doubt. Even if her markets are
opened, people question whether
she will have the money to buy cop
per. And when a country is forced
to do without a thing it turns to
substitutes. Germany has been
using corrugated iron roofs instead
/ OF copper roofs, and soft iron for
cable and other electric wire. 1t
may try to manage with these for
a little longer.
The answer for the copper pro-
ducers is that if the price of the
metal continues to fall costs will
fall, because they must. Wages
are based on the price Of the metal
and have already come down. Even
they will not go back to pre-war
levels, for where miners were paid
$4.15 a day on 18-ccnt copper, they
are now paid $3.50, the extra rs
cents being concession to the cost
of their living. Further, the eff
cheney Of the miners has increased.
This is not statement Of belief,
but statement Of fact based on
statistics kept by the companies on
work per man, and it is found that
rHf ~
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

The copper producers are in the
position of a man walking down a
pitch-dark stairway in an unknown
cellar. They take a step down,
which is a cut in price, hoping it
will be their last; and the bottom
of the cellar, the ground, the con-
crete foundation on which trading
can be done, is not yet. Yester-
day came another cut Of half cent
from the leading producers; little
dealers offered at 1914 cents. One
report talked of an offer Of 8,00O,-
900 pounds at IS cents a pound.
These prices do not mean what
the same prices would have meant
before the war. Costs of production
have risen. The average increase
in production costs comes to about
40 or SO per cent. Take one large
and fairly representative mine. To
produce copper in 1913 cost it
about 8 cents a pound, and it sold
the metal for about Is cents. Last
December the cost of production
was IA cents a pound and is now
around 10 cents. And "The Engi-
neering and Mining Journal" the
leading authority in the trade,
thinks that under present condi-
tons costs Of production do not
count in supporting the market
price. "The Journal" intimates
that further cuts may come as
"jolt"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-20

Inc above rates express The cost Of
foreign money in terms Of the Ameri-
can dollar. You buy an English pound
sterling, say at s4.75%. The intrinsic
parity Is 4.S6M per pound. Thus, you
say either that pounds are at a dis
count or that dollars arc at q premium,
which is owing to tho fact that in Eng,
land the demand for dollars with which
to settle accounts in this country is
greater than the demand in this coun-
try for pounds with which to settle
accounts in England.