The Wall Street Journal from New York, New York · Page 1Click to view larger version
September 26, 1918

The Wall Street Journal from New York, New York · Page 1

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The Wall Street Journal i
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New York, New York
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Thursday, September 26, 1918
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-4 T A T J ill! H i if i 1 s;zc::i mm to-luk Csfliss Aeroplane's Outlock SFECIil ARTICLE TO-DAY ' Steel Labor Problem! jIj 'mm VOL. LX XII. NO. 73. MORNING EDITION- NEW YORK, THURSDAY, SEPTEMBER 26, 19 18 TEN PAGES. PRICE FIVE CELTS' r Or H i m Morning and Evening EdMons. Published by Dow, Jone & Co, the Ode New Agency fa Wall Street Largest Grcultion of the American Financial Papers, Santa Fe, rrescott & Fhoenlx 5s , MoUiie riow 7s, 1923-1924 Armour & Co. 6s, 1924, Province of Ontario 5s, 1926 Ind. & Michigan Elec. 5s, 1957 . Chicago, Lakehore & East. 41s Grand Rapids & Indiana 4Js '' ' New York Air Brake 6s ' f " , v l Investment Department j PYNCHON & CO Members New Tork Btook Exchange 111 Broadway, N. Y. . Telephone 970 Rector Chicago . MUwMkM Toledo St Eiaals Leadoa Liverpool rafta Private Wires to AH Important Cities Wanted J. K. RICE, JR. & CO. For Sale SB lntr AWsaea liMr 5 Aaier Uthe pf . M AaM-r ftama ees A pf a taaeia Co of AmiIm BO Ceatral Prtroloma pf Z8 f.iWulw TroMpert Jee Ceoaa-Tablat-lieeerd 10 K W Bliss eeaa lee Faasaas Players laeky ' 3 Fifth Nat Bank. eock loo Goaaral Bakta pf 15 Great Aaier linr SMI Greeley Bqnara Hotel at SB Gaaraaty Trast a" SB H W Johae-Maav seat 1M I.ohl-b mm tim SB Im Star Oaa im MrCall Corp na at Mldlaad Srewrltlrs . JO Mohawk Valley Co as M.Um Plow cam IM Motor Predaets Carp J W T Shlpballdlac 8 SO Ntlra-Beateai-Pead 1M Peaa CmI "eke 1W Akn Mtf mm WRJ Rersslda T Mat "B" 9ft Blager Mf Tessa PaotSe Coal OH t wuiera Glbba Wlaebeater Repeat Aim IN Air Redaetlea 35 Alaaataaai Co of Aaaerlea 14 Aaier l)tat Tel af H J im Amer Meat Traef J as Aataaalm cara root M Baraa Braa lea lot at B Baob Termlaal wa SB Child Boat em , M tirU Lack Wrat Caal a Floclltr-Paealz laaar 100 Paaiaaa Plarera Iaaky lAO rt.Worao JarkRReoai - KA Praaklln Fire laaar lljm Ga Oaa Y CI 0. 139 100 flrrolera Saaara Hatrl at ao Uaaraatr Traat atack MEW Bllaa aaai )Mt Klrby Lnwker cma at M lbla-k Vallrr Caal flakia XS lMmm Mar Oaa 1M Mink Llaia C Na at in Mlalaa aoearltloa M Motor Proaarta Cor M Nat Aalllac C aaai at pt ft Natlnaal Pari Oaa inn T aklakalUlaar t ia OtU Elrr f KA Porta Bleaa-Aaier Tak la anKVT mto . n Tfim Paaiaa Caal aV All SB Waak Stool Or J. IL RICE, JR. & CO. a Wall Btroot Pka i joka aaa ta na aaia to ma Notice Wa bajr to announca that oa and aftar rtetobar 1. lnl8. our New Tork office, located at lit Broadway, will ba dl- eontlnuad. - . All oommnnlcatlona after that data will pleaae be directed ta oor Chicago effloa. John Burnhxun A-Co. . ' 41 South La Salle Street ' Chicago, llllaoia FOR SALE New York & Jersey R. R. 5s, 1932 FREDERIC H. HATCH & CO. 74 BBOADWAT. N. T. Telephone 6340 to 6359 Rector Prirate Telephone to Boaton atABK A. NOBLE THEODORE C CORWIJf NOBLE & C0RWIN 25 BROAD STREET Central Union Truat Columbia Treat -Equitable Truat Guaranty Truat Farm era Loan & Truat Lawyera Title & Trust Chaa National Bank National Bank of Commerce Hanover National Bank Mechanics ft Metala Natl Bk. Lone Star Gaa Texaa Pacific Coal & Oil Teleahaae Broad till t American Braes Co. . Aabeatos Corp. of Cantda Babcock & Wilcox Co. y . New Jersey Zinc Co. , Otis Elevator Com. Sc Pfd. . ;,' ' . "';''. PrlTBte wlrea to BARTPOBD WHJBIKQTOI1 BOBTKEAI. TOROBTO JENKS, 0 WYNNE & CO. Menibara New Tork 8toek Sxehansa and M. T. Cottoa Ezobanaa Telephone T474 Hanoter IS Broad St, N. T. 'Birmingham Water Works 5s, 1939 Central Vermont Ey. 4s, 1920 Great Western Power 5s. 1946 Michigan Railway 6s, 1919 Union Steel 5s, 1952 Westchester Elec. By. 5s,.1913 Ilcncon & Boyle m fmOAB aTRKtrr Tet HM Broad Public Service of New Jersey 5s, 1959 Iacili'c Light & Power 5s, 1951 Bhawinigan Water Power 5s, 1934 . Oc.arJLEY Cc nORRIG U Wall Straat. It. T. Taleaaeae Root or tS4i-a Dominion of Canada Ss, 1919 CULL & ELDHEDGE, SI Xaaaaa Strat.'Raw Tack Tet CartUaat SSS POMTIOM WAHTEOAXB connection aa Traanper. Executive or Renreaenta- tlvo nt m.nufaoturlnpr; mervantlle or Investment houae, or letKtant to man of lara;e arralra, desired at once by well-nmn ConneeUcnt men (S.t). old Amerlnan family, wide fiiienoial and oxaeutlve experience) eollee; ' education, (imrried. family: conacirntlmi, ambitious, initiative; head ct own security concern doina larae business until six months after our entry European atrtislc, correspondingly .Mem'ted. with reultina; war reverses. Consider tunilna In rid opi .nine; hiiKinexs ffr house d""lrlns; pood Conneoti-n t I iMim iicli-ii( r'lerenres snd thorouph Investigation. j,.- !rea Box tt A. The Wall Street Journal. REVIEW AND OUTLOOK GEKMANTS MAN rOWER There is much ststisUcal nonsense, sasiduously fostered by German news agencies of one sort or another, and taken here too much on -trust, about Germany's man power. Assuming that out of a population of 67,000,000 there will be 1,000,000 reaching the age of eighteen In a given year, It Is to be remembered that 52 per cent, of these are women. The remaining 480,000 will not ail be nt lor war. When a Iwy since the age of fourteen lias been suffering from malnutrition and "ersatz" food, his physique is necessarily deteriorated. What chance would be stand against an American boy of the same age 7 The German prisoners tell the tale clearly enough. But what is completely ignored is that the proposition is open at both ends. If the boys are coming of age, 'the men of fifty are getting older. Only in cases of exceptional physique, such as no general would be ao foolish sa to count upon, are men of forty-five to fifty-five fit for a punishing front line against young and vigorous troops. The equation, in fact, almost balances. Germany 'a man power, except on paper, is deteriorated in physique and morale at both ends, with accelerated speed. There remains the backbone of the German army between the ages of twenty and forty-five, but there Is every evidence from the prisoners alone that this Is deteriorating also. Captured orders Issued by German generals make this clear and are entirely in line with the hysterical exhortations to the German soldiers and civilians, to be "hard"!. Their generals might set them an example. Can we imagine Pershing or Baig or Petaln bolting for dear life, like Field Marshal von Sanders, six hours ahead of his outgeneraled troops T An Allied general would have run in the opposite direction, like Sheridan, and rallied his men or died with them. ' There is no need for boasting or overconfldence, but Germany has once more an eastern front of the most menacing character, with allies who are liabilities rather than assets. Up to the time of the immense operations of the present war Sir Edmund Allenby'e victory, lnvolv ing the virtual annihilation of., an army1 of 120,000 men, with immense capture of guns, stores and territory, would have been regarded as one of the greatest victories in history. It was a Turkish Sedan, and we are only beginning to hear of its consequences. There is ample justification in the war position now for hope, but we must not for an instant relax our efforts. At home we nave the opportunity for another smashing victory, one from which Germany cannot , recover, in the Liberty Loaib : . f " ' . .' '': : Prussian Chancellor says that in previous crises the German people have shown their enemies "what a resolute will to victory could do". ' His German people may have some sort of "will" left in fact, they are making it REGULATING COTTON Cotton has of late been going down and up according to the news, or the rumors,' of price-fixing by the Government. Saturdays bad break was followed by an upward movement when it was seen that the evil day waa not to come at once. Plainly, the cotton market fears official price-fixing. The action of the southern representatives shows that the planters also do not like it The fear of the cotton market is readily understood. Price-fixing would eliminate all speculation just as it has in wheat Obviously, the result would be the closing of the cotton exchanges... To be consistent the southern people should hail this prospect with profound satisfaction, since theyalways saddle the exchangee with responsibility whenever the price of cotton is low. The cotton market is referred to the Presidents words on the subject Less than two weeks ago he said, in reference to the Cotton Committee: "It may be part of this committee's duty to recommend basic prices on cotton. If, after investigation, it is found necessary, a fair price will be fixed." According to this, nothing is to be done until the subject has been investigated. . This is being done now, but such a complex question cannot be thoroughly investigated overnight After the investigation it is not certain that a price will he fixed. That depends upon the necessity of the case. Bow to handle the cotton crop to avoid that necessity is a matter to which dealers and growers might devote most serious attention. '. It is not difficult to understand what the President means by "necessity". When wheat went to $3.50 a bushel and flour around $20 a barrel a necessity arose. The wheat crop meant far more than big profits to those who produced and handled it The life of the nation, and perhaps of civilization, was at stake. The question now is whether the present prices of cotton and the growers' demand for higher and still higlier prices create a necessity for official price-fixing. The situation is not easy, particularly for the exchanges. ; They might however, as a starter, persuade the Government, now the great consumer of cotton, to utilize some of the low .grades, and let up on the pressure for white cotton. There may be other workable ideas, the net result of which would go far toward stabilizing prices and not permit them to go to a height whose only limit is the sky. If the law of supply and demand is to prevail, whatever impedes it nowhould be removed. V "BT THE WAY Turkey will now accept Austria's proposal for a non-binding conference, but putting a "porous" plaster on broken log sounds inadequate. ' ; : ' 3IAIUXE DEAL NEAR COMPLETION Announcement Expected oy October IS Special Meeting ,1 oj DirecUyn CaEed for Today .. ,1 ' Negotiations for the sale of tha British tnbsidiariat I of the International Mercantile Marine Co. are rapidly coming to a bead and it ia learned in official circles that a definite announcement regarding the consummation of the transaction can be exnected bv frtaW IS. Detail concerning the plan are not available, but it is autthorl- raoveiy stated that practically all the difficulties which stood in the wav f the comolation of lbs deal have, been overcome. Negotiations for thetransfer of the ahipping wnuaga ana omer .assets oi me British, companies to an English banking syndicate began around Oct 1, 1917. - Special meeting of directors will be held today. ' COTTON PRICE FIXING UNCERTAIN With Way Found U VtiUxo Low Grades Necetty for ' Action Seems Vnneeeuaiy WashingtonPrice fixing of cotton probably will net become neeessarr, t was hinted by the War Industries Board. " ; j. . . , ...:;-., By the appointment of a committee, Tuesday, to find a way to utilize the low grades of cottoa not now on the market, but stored away' for -iome future use, and by Government control of distribution of all raw cotton, th necessity for actual price fixing la eliminated, according to the opinion of certain official! of the board. - x AMERICAN 3IALTINO CO. . , ' PASSES PREFERRED DIV. Payment of Quarterly Dividend on Preferred It Passed, Due to Food Admtnietration't Order Prohibit-ing the Manufacture of Malt Directors of the American Maltmg 3o at their meeting Wednesday, passed the regular quarterly dividend of ltt on the preferred stock, due st this time. This action, was forecast by Dow, Jones ft Co. earlier is the week. ' '.: , - .;'. ' Following the meeting It H. Lansdale, vice-premident, said :v "In view of the conditions brought about by the orders of the United States Food and Fuel Administra tions, prohibiting the making of any malt and the nse of malt after DeeeniJb 1, th directors feavo determined, not tedl wthe tha preferred stock."' r 1 .-' v- " - - While the eompaay'a plants have stopped the actual manufacture pi malt four of them are still open and working day and tight in order to deliver about 700.000 bush. els of malt which have been sod under contract and which must be delivered before December 1, after which date brewers are not permitted to make beer. This malt was manufactured before the edict of the Federal authorities became effective. ' '. The company's cash position is in rood shane doe to the fact that cash ia paid for the malt on delivery. Cash will continue to increase in size as the volume of malt on hand decreases. ' Two of the plants are now being used bv the Gov ernment for storinr rrain, the en ace bema- let bv the com pany at regular atorage charges. There are five other plants which are available for Ibis purpose but ao far only two have been rented by the Government CENTRAL LEATHER EXTRA - x INDICATES LARGER EARNINGS Report for Quarter Expected to She Better RetnU Than Thote of Preceding Three Month -Earning t ty Qunrtert Large Tat Allowance ' Declaration of an extra dividend of 2 on Central Leather common stock indicates that the expected improvement in earnings has materialized. ' In the first quarter of the current year Central Leather just about earned its regular 1 common dividend, the net for the stock being $L41 a share. Earnings Improved materially in tho second quarter when $1,839,7,44, or $3.87va share was reported applicable oa the common. The decline in Central Leather's earnings which be gan last Summer and continued until the beginning of this year was attributable to several causes. These included advancing costs of labor, slackened demand for sole leather ia the domestic markets, export embargoes and bad weather conditions. ; Writing down of inventories at the close of last year was another important factor. Finally, it must be remembered that allowances for taxation werj krgely increased upon the passage of the revenue bill last October and that still larger tax deductions have been nec essary this year. , During the Spring of this year domestic demand improved and the company was able to book large orders f.r Great Britain. The breaking up of Winter relieved the traffic situation and conditions for Central Leather im-rroved all roundJ It is expected that the report for the quarter now- drawing to a close will show even better results than those of the June quarter. . Turkish commander's new line in Palestine is ar El-Fule, but damfool jokes are hereby headed off. . - -; '"' , :- ': ' ' , Dachshund, like the shad, runs largely to tones, and does not taste the same. ; . , .!'.' Times editorials are now the only American enes "fit to print" inGermany. " : '' v- . . Congressional Record is to be "made thinner", but it sound impossible. , r ; ' . , ' ' STEEL TRADE SEEKS TO SETTLE LABOR PROBLEMS EXPECTED ALL COMPANIES WILL FOLLOW LEADING INTEREST, IN INSTITUTING THE ' EIGHT-HOUR DAY MidvaU Steer Plan of Repreientation for Employe Sue- tcsxfvUy Tried by Other Concerns Eiskt-Hour . . .'- ' ScJiedK'e- Will Cott Corporation ProoaMy ?UftM,000 Thi- Year Little - ; : ; V'r ' ' - ; Effect on Net for Stock ; Following the action of tha Midvale Steel ft Ordnance Co., which has recognized the right of wage earners to bargain collectively with employers, and of the United States Steel Corporation) which has instituted the eight- hour day, with time and a half for overtime, other steel. companies are expected to take earljr action toward the settlement of the labor problems with which they are now confronted. Republic Iron ft Steel will, in all probability, take up the matter aa soon as John A. Topping, its chairman, returns to town; whUe Lackawanna Steel's directors are expected to discuss the question at their meeting today. It is almost certain, however, that all companies will fall into line on the eight-hour question. ' While it is suggested in some quarters that a plan of representation of employes such as adopted by Midvale creates machinery by which small and unimportant griev-ancea may be magnified out of all proportion to their merits, similar plans have been successfully tried by the Colorado Fuel ft Iron Co, the Standard Oil Co. and the Western Union Co. Some steel men believe that such a plan ia the best means of combating the encroachment of labor unions, giving employee the advantages of unionism while eliminating its worst dangers. The Institution of an eight-hour day basis, with time and a half for overtime and doube time for Sunday work will probably cost the United States Steel Corporation between 150,000,000 and $50,000,000 annually, or say $14,000,-000 for the last three months of the current year. That is, its labor costs will be increased by approximately that sum, depending, of course, on the fluctuating overtime factor, which, in view of the labor shortage, is likely to be an important consideration. The estimate allows for an average day per man of ten hours, with the same on Sundays. If Sunday work can be kept at a minimum which, steel companies have for years endeavored to do ithe in-crsase ia. Idj&jBPA would bo. well -under $40000,000 a1 y- ; . ,:v Steel stockholders, however, derive comfort from the fact that tho earnings on the corporation's stock will be little affected. As sr large part of the corporation's profits are in the 80 tax class, with an income tax of 184 under the pending measures, the actual loss in net earnings applicable to stock will be only about one-sixth of the aggregate increase in wages, or, for the last quarter of 1918, anywhere from $1,600,000 to $2,500,000 less thao M of 1 on the capital stock. On the other hand, the corporation gains materially in increased good will from its employes, a considerable asset and one' that may result in increased earnings offsetting the increased wage cost Youngstown, 0. Independent iron and steel companies here aie to follow Steel Corporation's lead in adoption of 8-hour 'day. The innovation is expected to mean a basic day with extra pay for overtime, as there are not enough men available to man three shifts, and reduced output is impossible. Basic day means from 10 to 15 increase for day labor. . Studebaker '".'' Investors Interested in our opinion on the prospects of this stock should write for the MOODYMANUAL INVESTMENT SERVICE letter of September 17th, We have a few copies left for free distribution. ' MOODY MANUAL COMPANY S3 Broadway New York . WHX BUT. 100 A aver Gaa Kleetrlc pf 100 Oalral Faaadry lat pi aa CeaaBJ'wtB Cr R a L eoai 1KS Coaua'vrtfe I'r By I. IS Del, I .a-k A Wra( toal 28 da Poat Powder aoa' la da Peat 7i tlobeatnra SO fcaalera Steel lat ef IS Kaataua Kodak t la Kas-IUh Mareoal jee Pamoaa Playera Lak 00 Hall Swltra at SlKaal S5 ladlaa RvSalac at loe L.lata Loeoaaotlre pf la. Marlla Arms Notes lea Kew .t ork afclpkallaiaaj IMS Paa-Aaser Pet A Truss le Hrpaelle Mot Trork eoai 4M Reeaeatrr By Wast Ca BO Psfrty Car His (.ta Se aeuty irea v ' WILL SELL ISM Aetaa Kapleelve Sa S Aaier Graphopboae Sa ' Ie Atlaalle lloldlasa 1 Baeyraa Co eosa lad Careea Sel coat TO Carwea Steel Tafee ' SB Celluloid t o N Ceadra OU A Gaa Ss. 1S1 S Casdea Sa. Serira "B" 8 Haekiaaal Prod Sa SS l.eac Star Gaa SB Maahat Klee Sap lat pf , ia JlM.lif-S.iw A Moore a Marlla-Heeawell Corp S O'Baaaoa Corp IB RoekweU By A Lt pf IS Roma Brasa aTt Copper IA Saata Cerllta Saaar aaat 1 Saata Cerllla Baaar pf loe Straaaberp; Carbaretor e Texaa fanae Caal oil G Wynne Bros tS Bread Street. ST. T.i Tel. Bread W have order in the following tecurititt; ' Mew l ark. Hew Harea Hartford R. R, 4a, IJJ C Mease S3evatd By. Ss, ISIS . Jetparial Chlacse Gov. Ha-Kaaaf Br. Ss, 1S1 ; (.Uletta Safety Baser Co. Sa, 1B3S ; . ' Gillette fafrty Baser Co, Stack STABTOAJBD OIL CO. STOCKS ' - AXJb STOCK SCRIP AND 'HKiHTS" i: t ' ; BOUGUT-SOLD-QUOTED ' V Glide, IVInmlll G Co. Jlfew6er New York Stock Exchange ' ::. . , 20 Ero?.j Street, N. Y. - Telephone Rectof e:S0, 74 Advtirtislng to pay must Erst teach those able to buyy C I. HUDSON & CO; Toronto, Canada Cincinnati, a Wilmington, DcL CO Broadway " ; 209 5th Arena. ' Atlantic City, N. J. Brighton Casino . ' Uke Placid, N. T. New Standard Oil Book ready for .distribution. Will mail v . , '.' on request . Outside Securities Department 1 Government operations wjll help the underlying situ- ation in a stock like ' , Western Union We will he pleased to give cur opinions' of this security gratis upon" request r - Addret Departnv,nt ' RABSON STATISTICAL ORGANIZATION VeSaIey nill Mass. Largest Org anlzaUon i? Its Character la the World - tee ISO 100 IM lea ie lea ae 1M ISO tVAJITKD A" Type Peaadera eeat Aater Water Wka dt Eire 1st pf A eeat Caaada Fsaad A rera; pf Coat States ICIeet eoai Italatk Rdlaoa pf Bleefrie Bead A Share pf Robert Galr pf llllaoia Trad Ion raat ' Kaaaas Gas Kleet pf Veebaales Bk at B'kiya Kew Verb nark pf R J Reyaelda Tab eoai Soathweat Pew A Lt pf "aleer Mf eoai A pf YVhttaua A Baraea MfS FOR SALB 1,000 Aawrieaa Tbread pf ' Sa Aaier l.labt A Traet eeat SO Aaier Pablle CUUtlee pf SO Careea Steel Id pf TS t biles Ca eoai BO Coastwise Traaaaartattoa SO ceaaeetleat Ry A Lt real IT Klcbth Aveaae R R 100 rert Worth Pew A Lt pf 1SB Maahat Eleet Sapply pf 100 Paeaard Rioter pf -IM Saata Ceellla Sasar pf B Beath CalU Rdlaoa real leo l ot Gaa A F.lee pf (Coaa. Sa Cat Gaa A Eire pf (B! FREDERIC H. HATCH & CQ Standard Oil and Segregated Companies Stock BROADWAY, N. Y. Telephone 6340 to 8859 Sector Private Telephone to Boston . ' Burns Bros. Ice (AO Issues) , Butterworth-Judson - . . ' Qanh Syndicate Carolina Power ft Light Pfd.''- ' ' Marlin-Rockwell Stock ft Notes .. . L Midland Securitlrs . . v.: ' N. Y. State RanwaysCommon -It J. Reynolds Tobacco Common B" " Weaiern States Gaa ft Electrie Pfd. American Power ft Light 6a, 2016 Bleeker Street ft Fulton Ferry 4s, 1950 Duquesne Light 6s, 1921 -. KIELV & nORTON SO WALL ST, N. r. Pbeae Jeha SSSS French 5 Loan Due 1919 Coo pons due October 1st will be paid from today on at our office. At a Premium v Pn'ee on Application ABRAHAM & CO. ia wail st, n. Y. Tel. Rerter SSSS We solicit offerings of . . UNDERLYING LEGAL BONDS FINCH & TARDELL z atembera New Tork-Etoek'Sehante 130 BROADWAT. NEW TURK Tel. Berter Seae Central Petroleum Company Bought and Sold -MacQUOID & COADY , Umber New York Stock Exchang id wall ST. ; repond g$70 Rector XKW TORSI WANTED MAULIN, ROCKWELL CORP. 6 Notes due March 1, 1919 " t?ADCOCK, RUSHTON &. CO. Meat be ra Mew Terk at Cbh-ege Baehaaaea Heaie laa. Bids, Ch lease ' T Wall St, W. T. , American Cjnnamld Burns Bros, Ice Freeport Texas Sulphur . Indian Refining Com. & Pftl. . v . Holt & Woodward 71 Broadway Telephone 200 Devonshire St New York, N. Y. 8103 Rector Boston, Mass. Carbon Steel Central Aguirre Sugar Columbia Graphophone Manati Sugar - . 7 . C C. Kerr & Co. I WALL STREET, N, Y. 'Phone &780 Rector - r . FOR SALB . ; PACIFIC LIGHT & POWER 1 :,':- 1st ft Ref's: Is. 1951 ; ; 'V ' JACKSON, MAY & CO. TeL Haaerer 170S IS Brsad St, V. T. National Fuel Gas .',-' Shawinigan Water &. Pf, 6s, 1919 ,-: IViUlam C. Ortcn IS Bread Itreet, V, T. : rheaea T1G-14 res I II I