The Wall Street Journal from New York, New York • Page 2

i (J 3i i THE Wj STREET JOURKAL HomsiBre and eveniyo edition- Published by pow, jones 6-ca W. CUBBOW, FiaaMeaA Mugk erury. Jeaaeh Cbma, TrMWr. 44 Iml Btraa. Jtew Telephone: Broad On.

SakMripttMMi il yMrty; SMS monthly, er Bra eenta Dally." for either edition, poatfc paid la tha Unltad BUUa. Canada, Utilw, PworU Ww. Ovaw. Palllpplo lilaada, Hawaiian Islands and Cuba. Foreign potu 14 a.jraar additional Uo reaa.vad at Washington Bar 1422 Btraet.

N.W.; Chloaco Bureau. Room 411. 20 Bo. La' Sail Street iMiHNi chaaftd on rqust always stva old addraea. ASwrtleaweatsi Rate will ba fumUhad WW any responsible advtrtlitna; agency.

Epurad In sacond-claae mall at the N.T. Post Offlca. Tklm Pntitr Pin Ittretr Circulation Than Any Other American Financial Publication. The trath la Ita ua That la a rood book which la opanod with axpaetatlon and oloMd with profit Alcott MARKET DIAUT Friday, Aug. 16-JDulL Friday, Aug.

17 Irregular. tIKtm of stocks 857,800 17,045,000 Since January 1..... 124,121,900) 15430,000.... of bond. W00 January 1 $590,276,450 Priee Up Off Sale Stocks Salea Price Up OS 85V4 1 8300..

Am HAL pf 400 64 126H 2 8800.. Am Sumatra 2100 54 t- 94K 4900.. Baldwin 4200 694 1574 1 2700. Pac 1300 159 52V 2 6100.. Genl Cigar.

100 89 2 V100 19800. 8500 90 Ti 10114 6900.. Max. PetroL 1300 964 4 89 SflOOy.Reading 6800 92 1 45 1 2300. 1000 63 111 25600..

98300 124 1 84X5 .22 Average 20 rallwadi .92.06 .90 81.T7 49 Average 20 induitriala 91.61.17 'V-in Chicago October corn 112 1 "December. 81.54107 New York October 24.69 19 BM 6 New York Sept coffea 7.64 4 Commercial paper 4 g)5 6.. Call money renewal 3 -69b, Time money ,...46 V4L7662 Cablee Btorling .4.76 A 4.7560 Demand -765 'V. MOVEMENT OF AVERAGES fallowing to the dally average priea, tha doat, of twenty indurtrial and twenty railroad etockB, for the period Indicated: nana Oct Dec. 19,17, 70.75 Last high point.Nov.

21, Last low point. 19.17, 65.95 'Declined to Jan. 1518, 73.38 Rallied to. 19,18, 82.08 Declined Apr. 11,18, 75.58 Rallied to May 15, 18, 84.04 Declined to June 1,18, 77.93 Rallied to July 6.18, 83.20 Jan.

15.18, 77.21 Mar. 14, 18, 8170 Apr. 11,18. 78 00 May 15,18. 84.89 June 82.26 Aug.

13, 18, 85.00 TWEWTT 1WDPBTBIAU aimUt. Dm. mt Aver. aa. D.

92.65 .84 Men. Aug. 12 Tuea. Aug. 13 81.58 .46 81.68 .10 91.69 92.10 91.44 91.61 .90 .66 Wed.

Aug. 14 81.70 .02 Thur. Aug. 15 81.58 -FrL 16 81.77 .19 .41 a 47 42 WBirrr baiiaoaim ItlT Avar. Dao.

93.49 .23 93.46 .03 93.45 .01 92.96 92.06 .90 Awmr. Adv. Doa. 84.12 .79 85.00 .88 84.57 .43 84.43 .14 84.65 31 vMon. Aug.

12 Tflea. Aug. 13 Wad. 15 Aug. 16 THE WALL STREET JOURNAL STRAWS Moving Pictures for Judges 'r -y A departure from the usual methods of presenting evi- deoce to a court was furnished recently by the newsprint manufacturers in their appeal for a higher price for their The hearing was before four judges of the Circuit Court of Appeals of New YorL Counsel for the paper jnanufactarera attempted to explain to the court in non-technical language the intricate process of producing newsprint, placing particular stress on the unusual hazards of the business.

The attorney was no paper expert and the manifestly knew little of the matter. The argument fell rather flat Finally was agreed that the court would adjourn and allow the attorney to present a moving picture film outlining the process. Judges and attorneys proceeded to an uptown hotel where the picture was duly shown. At ita -conclusion all parti as concerned possessed a fair knowledge of the paper industry. Straw Hats v.

i Despite the bounding of prices wearing apparel necessary io the average business man, it is worth notinj that since the United States has entered the war the pricei of straw hats have not increased to Any extent worth tioning. In fact the season for reductions is earlier this year than A man in the business when asked why straw hats had not advanced in price to keep step with other goods in his line, gave two good reasons: first, can get along without them; there is a muchamaller demand on account of t1. draft' Straw hats do not rrrr.cL THE AVAIL STREET GATUI1DAY I IOHNING, AUGUST-' IV, IDlf SWIFT Ca'S SOUTHERN PROPERTIES ORGANIZED LAUNCHED AS CAMPANIA INTERNACIONAL, UNDER ARGENTINE LAWS CAPITAL 122,6,000 Dividtd Into tfiQOfiOO Shartt Preferred, Par (18 Offer to Exchange Swift Co. Stock Ownerehip of International Sharee Represented by Firtt Trust Co. ChieagoAmnge- mnti for Fraciionalt Chicago The American and Australian prop erties of Swift Co.

fcave been organized into a distinct company known as the Compania Internacional Limited and eapitalised at $22,500,000. Stockholders of Swift Co. are given the opportunity of exchanging 16 of holdings at par for equivalent amount of Internacional stock at par. In explanation of (he change, Swift Co. have issued the following circular: South America and Australian properties have been organized as Coapsnia Intsmacione! limited Ta, under the laws of the Argentina Republic, with a capital stock of t22fiO0fi0O Argentine gold.

It is divided into 1,500,000 shares preferred, par value of $15 each fully paid and non-assessable, issued and outstanding, and directors offer to each stockholder of the Swift Co. of record August 81, the opportunity of exchanging 15 of his holdings in Swift Co. at par for equivalent amount of capital stock in International at par, evidenced by the First Trust of Chicago certificates of deposit Exchange of shares of capital stock upon above basis will in all cases involve fractional shares of Swift Co. capital stock, except when number of shares of capital stock owned by shareholders is evenly divisible by 20. As Swift A Co, does not issue certificates for fractional shares, warrants representing such fractional shares will be issued by depositary hereafter mentioned whenever necessary and may be bought and sold and upon surrender thereof at the office of the depositary property endorsed, in amounts aggregating one or more whole eh ares, such warranto may be exchanged for certificates for whole shares of Swift Co.

capital atock. Such warranto shall not entitle holders thereof to voting or dividend rights until converted into certificates representing whole shares of capital stock; The First Trust Co. has been appointed depository for the purpose of effecting the exchange of shares of capital stock. On or about Sept 10. notice will be given to each stockholders stating the number of shares of Internacional which he is entitled to acquire and the number of shares of Swift Co.

capital stock and fractional thereof exchangeable for such shares of InternaclonaL Promptly upon receipt of auch notice, but not later than October 15 each shareholder should deliver in person or send by registered mail to depositary certificate or certificates for least number of shares which will cover the number of sharee which wiU eover number of shares of Swift Co. capital stock and fraction thereof called fcr in his notice. Internal revenue stamps for the proper amount will be affixed by the company. Shareholder may avoid handling warrants for fractional shares of Swift A Co. capital stock by substituting cash payment at rate of $5 for each one-twentieth share contained in fractional share of Swift Co.

to be surrendered, To do this he should send to the depositary with his certifleatea of capital stock cash of New York or Chicago exchange, payable to the First Trust Co. for the proper amount It has been arranged that any shareholder of record August 31 may purchase through the First Trust at the rate of $100 per share, warrant representing such fractional share as will enable him to convert fractional share received by him in exchange of shares, into whole share, or he may sell at same rate through the First Trusi Co. warrant representing fractional shares of Swift Co. received by him in exchange of shares. Any shares of Internacional not exchanged on or before October 15 may be disposed of upon iuch terms and to such persons as may be deemed advisable.

Any shares of Swift A Co. which company may receive in exchange for shares of Tnternocional shall be held aa treasury It is expected that Internacional will pay dividends, the yearly return at least to equal dividends now paid by Swift ft Co. Officers and directors of Swift ft Co. consider shares of Internacional valuable security and.wU exchange their shares in accordance with foregoing plan. They earnestly recommend and advise each and every shareholder to do likewise.

As customary under the laws of Argentine Republic, shares of Internacional are issued in bearer form. Internacional has appointed First Trust Co. its agent for the purpose of enabling shareholders of Internacional to obtain the benefit of this agreement and of avoiding presentation and identification of bearer certificates whenever meeting of shareholders is held or dividend paid. The shares of Internacional have been deposited with the First Trust Co. Ownership of shares of Internacional therefore will be represented by the First Trust Co.

certificates of deposit which will be transferrable. Full voting power with respect to shares of Internacional so deposited is vested in holders of deposit certificates and may be exercised at meetings held in the United States. All dividends upon such shares of Internacional wQl paid to owners of deposit certificates through the First Trust Co. Exchange of shares, will not affect the October dividends on Swift ft Louis F. Swift says Swift ft Cq.

is materially strengthened by transaction. It is exchanging $22,500,000 of stocks in foreign subsidiaries for equal amount of atock of Swift ft which quick asset has ready market in United States and could be sold if needed for requirements of business. Meantime dividend obligations are lessened nearly $2,000,000. Officer of Swift ft Co. says: "Bear in mind that after exchange made, this company will have $2,500,000 of ita stock in treasury available for sale over the counter, and while it remains in treasury, our dividend requirements is reduced by $1,800,000.

Internacional shares represented by First Trust certifleatea will not be listed on any exchange." -J -C Chicago A bid of 20 was made on the floor of the Stock Exchange here for 103 shares of Internacional, Co.) ANSWERS TO INQUIRERS onrsLueaW ttdorav a taa'itoaucs ess BAvaeoaae' dTDlSTJUBXTED rROFtTB TAX I'' 22823 bank at its close of business December 31, 1917, shows income for tazobls year $34,000, Excess profiti Uu paid $2,000. Amounl of income tarn assessment for year $2,000. Paid dividends in the year of $20t000. There remains in the profit nnd. loss account, $10,000 (which is the amount left over after above payments).

I baa I A I. tn wM miiancs we uutaou if ins oan no expended this amount in taking on new loans, during the first sif months of jai8T Does not the amount vhieh is undistributed and in profit and loss account become a part of the working capital of the bank and therefore ts not subject ihs tax even though the amount is stilt carried in that account? If we had distriButsd this amount we would not have oeen able to expend it in loans. Do yon' consider the $10,000 taxable? s. 'iv-' Answer Money uaed by a hank in ita particular business of making loans is not aubject to the 10 undistributed profits tax. BETHLEHEM'S EIGnT.nOUE DAY Applies to the Machine Shops in Bethlehem and Not to Pre duetionfjor Open Market Washington The National War Labor board Authorizes the following: In the statement made public under authority of the National War Labor Board on August 4, with respect to the board's findings in the case of the Bethlehem Steel it was made to appear that the basic eight-hour day had been appHed throughout the company's plant at Bethlehem, Pa.

In this regard the statement was in error, since the application of the basic eight-hour day was not included in the finding. The basic eight-hour day does now and has applied in the machine shops at Bethlehem. It does not apply, under the War Department's interpretation of the eight-hour law, to those branches of the Bethlehem plant engaged upon the production of steel billets, rolled steel or other unfinished products made for the open market In these branches at Bethlehem the present workday remains unchanged under the findings of the board, the only action of the board with regard to the bask day being to declare that overtime beyond the usual workday should be compensated for at the rate of time-and-half time and that work on Sundays and holidays should be paid for at the rate of double time, and that in the fixing of piece rates provisions be made for over time payment as now provided in the case of time workers. ILLINOIS CENTRAL TAXES Chicago A complaint filed before the Board of Review by Attorney-General Brundage charges that the Illinois Central has escaped taxation on certain property from 1889 to 1918, and asks that assessment he made on the property in order that taxes due the county may be eol-j lectad. A Dimon dollars jj tne jioara ox iteview estimate of the Value of the property 'hitherto tinassessed.

Legal complications showing seeming conflict between original act of incorporation and Supreme Court decisions are explained in bill of complaint in its assertion that there has been evasion of law by Illinois Central Striken In Canada Due to Enemy Aliens Winnipeg Widespread strikes through the west are now definitely attributed to alien enemy propaganda. Thia insidious influence has been suspected for some time. The Manitoba Gypaum Co. published a definite statement asserting positive proof that Teutonic propaganda was; responsible for the strike in their works and the general industrial unrest in Canada. The authorities are investi-l gating.

PEPPER AND SALT THE NEW CONTEMPTIBLES "Regard them not" the Kaiser yawned, "because the lust for gold That has them firmly in its clutch will never loose its hold. They may stop mining money long enough to call me But what care we for epithets? They'll never fire a gunfj Tell that to your well-trained, precise, unthinking war machines, Who had the grave misfortune to encounter our Marines. Relate it at the Marne, which saw your second big ds feat The Mills of God are grinding as the Prussian hordes retreat "What can they do?" the German press inquired with scornful sneers, To beat our mighty army that was building forty years? Behold the New Contemptiblea, prepared to thrash us. how?" Behold them then and let us know, what think you of them now? The British crush your submarines; they beat you in the air; The "ldotic Yankee" now is primed to do his share. We're in! And we will carry on until the sun shall shine Upon Old Glory's brilliant folds, reflected in the Rhine! Full slow to draw the sword were we, hut now the die Is cast The tongue the Prussian understands we epeak to him at last V- Now we will fight, and we win but right must surely win, And though we start "Somewhere in France" well finish in Berljn! Beatrice Barry, in N.

Y. Times. WE SHOULDN'T KICK In China, when the subscriber rings up Exchange, the operator may be expected to ask: i 'What number does the honorable son of the moon' and stars desire?" "Hohi, yy Silence. Then the "Exchange resumes: 1 "Will the ihonorsble person graciously forgive the inadequacy of the insignificant service and permit this humbled slave of the to inform him that the 1 -y?" Lroisn Tit-Bits. NEW YORK CITY TRAFFIC HAS PHENOMENAL GROWTH PASSENGCRS CARRIED HAVE INCREASED FROM IN THE YEAR TO 'J.

M18122 IN 1917 Opening of Seventh and Lexington Avenue Subways Com pletes System, Host Important Link in City's Rapid Transit Chain rransportatten ffeeds of Mstropolis Havp Al Kept Ahead Articu IL With the opening of the Lexington and Seventh Avenue lines on August 1, the system, the most important link in New York City's rapid transit chain, was placed in operation. The Lexington Avenue subway fills in the northeast stem of the by furnishing transportation to the East Side from Grand Central north to 167th street. From there Sixth and Ninth avenue elevated trains complete the run to Kingebridge Road. From Kingsbridge Road a shuttle subway service will take passengers to Woodlawn. When the line is completed the Lexington avwua traJlii "WiU Wilaam.

The old subway line from Grand Central to Atlantic avenue, Brooklyn, comprises the southeast leg of the connecting directly with the Lexington avenue subway. The southwest section was filled in by the Seventh avenue subway running downtown from Times Square to the Battery as a continuation of the present Broadway and Van Cortlasdt Park lines, which form the northwest stem of the H. Whet: Jie Clark street tunnel is completed, passengers from Borough HalL Brooklyn, will have access to the west side of Manhattan without change of trains. Between Times Square and Grand Central the connecting link of the will run along Forty-second street Connection win be made by shuttle. It is planned to have five levels at Grand Central Station, alleviating the present serious congestion at that point AH of the Brooklyn Rapid Transit traffic from Brooklyn, pouring through the narrow throat of the transporta tion bottle at the Canal street station, creates the second chief point of congestion.

With the completion of the dual system all this traffic between the two aides of the East river, which now presses through one gateway, will be distributed through five gateways. First, in importance will be the Fourteenth street Eastern tunnel It will extend from Sixth avenue (Manhattan) through Fourteenth street, under the East river, and through the eastern district of Brooklyn to. East New York, at Ridgewood with the Myrtle avenue line extending into Queens, and at East New York with the Jamaica, Canarsie and Liberty avenue lines. Its operation will furnish tremendous relief to the congestion now shown on the Broad way (Brooklyn) and Myrtle avenue elevated railroads and will divert from Canal street thousand of daily tra velers whose work takes them to upper Manhattan. Next in Importance is the Montague street tunnel connecting with the Broadway (Manhattan) subway at Whitehall street, and with the Fourth avenue subway in This tunnel will permit the operation through trains down Broadway (Manhattan) and into Brooklyn and vice versa, thus additionally diverting many thousands of passengers daily from Canal street Another contemplated artery of relief in connection with the Montague street tunnel is the extension of the Centre street loop, through Nassau and Broad streets from the present termination at Chambers street to a junction with the Montague street tunnel No contract for construction on this improvement has been let With this extension completed, however, Williamsburg Bridge passengers desiring to go below Chambers street in Manhattan would no longer have to change cars at Canal street to the Broadway subway, or walk from Chambers street south, bat would be carried to the southern end of Manhattan without change of cars.

A second advantage would be the establishment of effective loop operation in lower Manhattan, benefiting South and Central Brooklyn and the Flatbush section. An extension connecting the Brighton Beach line with the Fourth Avenue subway will enable passengers from the route now served by the former line to be brought di reetly into Manhattan, up or down town. The Broadway subway of the Brooklyn Rapid Transit Co. is now in opera tion between Rector street and Times Square. It win be several months before the Whitehall street Station is ready for operation and a much longer time before service can be extended through Times Square to 59th street and thence to Queens.

Since improvements of transit began to be placed in operation by the B. R- T. traffic has increased on ita elevated and subway tracks by over 72,000,000 passengers a Before the Centre street subway was opened, about 72,000 passengers used the elevated cars daily in both di reetions over the Williamsburg Bridge. Since then this number has increased to 216,000, while rush hour traffic has grown from 42,000 to 128,000. Past experience has shown that no matter how fast rapid transit facilities are built in New York City, the transportation needs of the population keep ahead of them.

The phenomenal growth of the city is demonstrated by an increase from 741,329,835 passengers carried on all traffic lines in 1898 to 1,918,812,225 in 1917. This table shows the development of traffic on all New York City traffic lines during the peat 19 years: Passengers Year carried Increase 1898 741,329,885 1899 762,966,896 21,636,511 1900 846,353,058 83,386,662 1901 881,344,801 34,991,748 1 902 938,989,964 67,645,163 1908 1,000,767,483 61,777,619 1904 Y. 1,065,984,910 65,217,427 1905 1,130,982,696 64,997,786 1906 1,261,841,175 120,858,479 1907 1,815.381,388 63,640,213 1908 I 1,858,000,407 42,619,019 1909 1402,41742 44,417,235 1910 1,531,268,914 128,845,272 1911 1,603,901,897 72,638,488 1912 1,680,913,935 77,012,688 1918 1,769,876,608 88,962,673 1914 1,818,204,856 43.827,848 1916 1.807,652,726, 1916 1,898,735,615 91,102,889 1917 1181226 20,07611 i i'N first subway, built to carry a day. a3 carrying at the end cf i's first year ft daily Chartered TheV Farmers Loan; and Trust Company" y.i Kov 1-5-23 TOan Street, Net York Branch) 475 Fifth Aunne, at tst Street londoa Paris' COMMERCIAL CREDITS Issued In dollar. y'ty as wIl is La foreign meaeji airailabU 'yy la aU puts ef the world.

lCClTrAES PAYABLE at fatart dates for hoUi forclfa aad domestic bnalaesa, rord Exchanje Cable Tnnsfcn Uemker Federal Resent Bank and Km York Clearing House GOLD PRODUCERS ASK FO GOVERNMENT ASSISTANCE LOW COST MINES ARE WORKED OUT, AND ORE CAN NOT BE MINED FOR 20.67 COST ABOUT $30 American gold producers, in conference at Reno, have passed resolutions asking relief by the Government to correspond With increased cost of production.H "In this connection the following communication to The Wall Street Journal from a western mining engineer is of interest: I. tU. 41.. -I. 4V.

the gold and silver mining industry. Unless drastic remedial action is at once taken, the business and financial -structure of the country will suffer. Before the war began it was estimated that the gold reserve of the world was about $10,000,000,000, which represented about 85 of the. bonded indebtedness of the warring nations. At present it represents less than 8.

Unlesa the supply of gold and silver is increased, our credit wM rest on paper, cost of living will advance faster than ever, and it will take a bushel of paper money to buy a bushel of wheat "The statement is often made that 'there more gold and silver in the ground waiting to be mined in future, than has ever been mined from the beginning of time to No mining man doubts this statement but, all of them recognize the act that the ore which remains is of: far lower grade than that which has been mined, and if it I ounce than it ever has been. All that remains wfl cost' mora ter ounm than that vtilrli In )iun i The value of $20.67 an ounce for gold was fixed at a time when labor was cheap, prices of commodities low, and when vast unexplored areas of the world were supposed to be rich in gold. Low cost gold and silver mines are worked out Today it actually costs $30 to produce an ounce of gold worth only $20.67, and the miner is asking that the Government pay him the difference, eo that mines will not be forced to close at a period the world's his tory when there is more need of additional gold than ever "Much of the ore in the mines will pay with gold at $30 and silver at $1.30 an ounce. With these prices the West can produce the metal needed mining be made again an important industry. Without an increased price, the miner must out of business.

An increase of $10 will barely cover the gold miner's increased cost of labor, and supplies. In many camps he is faced with an increase in costs amounting to 100. "Not alone Is the miner concerned fn thia Everybody directly and indirectly connected with the mining business win feel the effect if the gold and silver mines ara tnrteA to close. Thousands of stockholdera in mining Companies, ana every uuuma ii-u mniuuix iuiic. people interested in gold or silver mines will be affected." Harvesting In Manitoba Winnipeg Harvesting through Manitoba is so far -advancad that the A arri cultural Department announced a I tl.V 1 the yield to be 47,124,000 bushels, based on an acreage of 2,618,000.

The yield is averaging 18 bushels per acre from various sections, many going as high as SO bushels. These averages are based upon reports from 20 widely stparaxea aisinciB. Canadian Eastbound Rates nttawa Rami of Railway Commissioners has irsued an order equalizing iommodity freight rates eastbound from Pacific ports to Eistern Csnada to a basis equivalent to that charges from Eastern Canada "to Pacific porta which were recently increased by 25. Lines affected include canned fish, lumber, shingles, metul prod urts, etc. average of 422,592 persons.

It is now carrying an average of more than 1,260,000. The new Queensboro subway carried 130,894 passengers in July, 1915. In June, 1918, it carried 1,690,730. President Shonts of the Interborough says that it would not at all surprise him ten years from now to find New York building still further additions to the vast net work of new rapid transit lines that are now near completion. Public Service Commissioner Travis H.

Whitney, who estimates that city traffic is Increasing at the rate of more than 100,000,000 passengers annually, be- lieves that it is fair to assume that the opening 'of the new lines with their extensions will develop territory as undeveloped as that portion of the Bronx and Wafhipgton Heights opened up by the first subway in 1004. 'Ten years from 1917 or 1918," he says, "may witness the same pushing' crowds on tjhi of the dual system as are seen any night and minings now at the Grand Central subway station and at Itations ua thtf-r TlJxd Avenue elevated A.