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

FOtNDEU tSSI THE Mil STREET JOURNAL. VORXtXa A'D EVCMXa EDITION Publlabed twice dally, except Sundays, by Dow. joNEs co; C. W. BAKROK, Prealaeat.

'Hugh Bancroft. Secretary. Joseph Citbrnu, Treasurer. -44 Breaa Street. ew Vark.

Telephone: Broad One. liMrlitlnii (IB yearly; $1.28 mcntbly; or flv waU Daily, tor lthr edition. pMU paid in, tha United State Canada. Mm loo. Purto Rico, Guam.

Philippine lalands, Hawaiian latande and Cuba.v forties poitafo a yaar additional. Subicrlptton also reeelved at Washington Bureau. U32 Btret. y.W.i Chicago Bureau, Room S. 208 So.

La Ball, fttret A Sanaa as changed on requeat; alwaya five old address. 'V AtvevtkMaMatei Raita Will turnlahed by" tt or any reepoBalble adrarl'Mrg agency. Catered aa eeeond-claaa matter Auguat IBIS, at tn r.et office at New York, N. under the Act of Mareh a. 1ST.

This Paper Hat a Larger Circulation Than Any Otktr American Financial publication. Tfce rratfc la Ita rae aaa. When will evil apeakera refrain from avil talking Whan Uatenera refrain from evil hearing. -Hare. 31 ARRET DIARY 1918 1917 Sept 25-Irregular.

Sept 26 Quiet. 803,100..... Sales of 96,857,100 Since January 1 143,171.900 TllU WALL 20, 1013 l9.1:0 'I8'" Sf bonds I' to capacity operations. The Wall Street Journal has January 1 1688,912,400 however from f0Hrcet of exccUellt au- Up Off Saks Stocks Pales Prira Up 'thoritv InHimtlnff ht thla romnanv will within thanaxt 4400.. Am.

Smelt'g 17000 98 4900.. Am Steel Fy 200 67 7600.. Am Sumatra 3200 57 3600.. Anaconda 6200 71 21600.. Baldwin 10900 61 I Motors 7200 101 41900..

Marine 17300 88 11800.. Mex. Petrol 2900 93 4 1600.. Reading 8100 83 60700.. Steel.

.192100 110 .21 Average 20 railroads 88.23 .16 Average 20 industrials. .84.61 2 85 lVk .109 68 89 118 105 8 108 874 110 81.21 82.64 143 1 1 1. 2 1 Ye 1 2 2 .85 ...1.41 Chicago October corn. 121 December. 82.08 63 New York October cotton.

21.25 7 New York December coffee. 7.46 3 Call money .1 2 Time money 56 Commercial 5 Cables sterling ....4.76 A Demand sterling 4.75 ft 8.95 6.. 6.. 8 4.76ft 4.75ri MOVEMENT OF AVERAGES Following the daily average price at the close of twenty industrial and twenty railroad stocks, for the period indicated -SO Dec 19, '17, 70.75 Last high 21, '16, 110.15 Last low point. 19, '17, 65.95 Declined to.

11, 18, 75.58 Pallied to May 15, 'IP, 84.04 "Declined to June 77.93 Rallied to Sep. 5,18, 83.63 Apr. 11, '18, May 15, '18, June 3, '18, Sep. 8, '18, 78.00 84.39 82.26 86.98 TWENTY INDUSTRIALS iaia 1B1T Aver. Adv.

Dee. 85.23 .41 84.53 ,70 85.70 1.17 86.02 2 84.61 1.41 lttT Aver. A4v. Dee. 87.04 .33 87Alv JS7 88.03 .62 89.08 .1.05 Aver.

Adv. 81.96 Dee. FrL 20 Sat 21 Mon. Sep. 23 Tues.

24 "Wei Sep, 25 8133 82.44 82.80 82.64 .37 .11 .36 .16 TWSNTT AILBOAJM Aver. AST. Dee. FrL 20 84.20 -Sat 21 84.21 .01 Mon. 23 84.36 .15 Tues.

.1. 24 84.42 .06 Wed. Sep. 25 84.21 .21 88.23 .85 THE WALL STREET JOURNAL STRAWS What's in a Name Due to the big influx of visitors and the little provision that has been made for their reception Washington has become a veritable mystic maze. One is compelled to lose half a day in locating a Government official.

A Wall Street man called at the White House to see the President's Secretary, Joseph P. Tumulty, and was icformed that Mr. Tumulty might be in the Army and Navy Building; Crossing the the visitor entered! the building and approached the information desk. One of the attendant stepped forward and th following conversation ensued: fctssMr. Tumulty jn the building!" "Who?" "Mr.

Tumulty." "What does he' do "Why," gasped the visitor, "he's the President's secretary." "He might replied the all-important information dispenser, "but I never heard of v- Railroad Co-operation Railroad Administration and the Federal Treasury Department are working hand in hand. A new time I for the New York, New Haven ft Hartford Railroad, under date of September 22, in addition to thoinual information about trains, contains an impressive tlrtment Xiberty bonds. Director-General McAdoo a ids little or nothing to the cost of the time table and at tha) same time puts Liberty bond advertising into the of thousands of commuters. The ad. carries thess Logans: "Ee one of' the-millions to lend the blU with eri CURTISS AEROPLANE GETS LARGE WAR ORDERS NAVY DEPARTMENT WANTS MORE OF THE FLY PATTERN IS A SUCCESS Pursuit Plant Passes Govtrnment Tata Slay Prove Even Mart Successful Than the French SpadCompany Getting Into Potition to Swing Into Big I Production-r-To Bring Opcrationt Dp to Capacity War Department tests of SE5, an aeroplane of the fast pursuit and fighting type, have proven satisfactory.

This machine -will be built In this country by the Curtis) Aeroplane Motors Corporation and production -will commence in October, and by November the company should bts well into quantity production. Government expert, who have examined the trial machine of this type, express the opinion that It will prove oven superior to the French Spad. The latter has boon used with considerable success on the western front for more than a year. The SE5 Is patterned much after tha Spad and is equipped with the His'pano-Sulxa motor. The Curtiss company has received aome large additional "orders for flying boats, on which It will be in quantity production sometime next month.

The first model of the new type Is about completed. Speaking generally, Curtiss' organization has been gradually whipped into good shape and is better able to take care of quantity production now than at any time since the formation of the In fact 'it is not going too far to prophesy that within two or three months, which means by the start of 1619, the whole Curtiss organization will be running like a well oiled machine. 1 The various delays and changes in this country's air- craft program, now a matter of history, has meant that few months, be given busineas enough to bring operations of all its plants up to capacity. Besides the SEo and the flying boats, Curtiss will also manufacture the large Caproni bombing machine. The company has received orders for this machine, but work on its construction is yet awaiting the final drawings.

Tests made during the lajl few days show that the Cap roni is an unqualified success, and with these tests finally oul. of the way, Curtiss will be In a position to secure the eon.plete drawings and get into quantity production within a reasonably short time. The three types of machines outlined above are all for fighting purposes. In addition, the company continues to manul'icture training airplanes of the advanced type. Curtiss Li practically the sole manufacturer of training airplanes in this country.

The Wall Street Journal was in receipt some time ago of information showing that for the twelve months ending April 1st 1918, Curtiss manufactured and delivered 22Q9 airplanes. The entire production of the 'country in the same period was not more than 3,000 planes, which means that this company alone built more than 70 of the machines made in the United States during the first year following our entrance into the world conflict Of the 2,209 planes made during that year, 1,376 were of the so-called preliminary training type and S39 were advanced training planes. Altogether thirty-one models were made. CENTRAL AGCIRRE SUGAR, PRICE FIXED AT 7.28c.1 Food Administration Seeks to Treat Porto Rico Growers Liberally, but Advance From 9 Cents It Partly Offset by Higher Costs Boston The price fixed for the Porto Rico sugar crop, at which Central Aguirre Sugar Cos. will sell its next season's output, ia 7.28 cents delivered at United States seaboard.

This compares with price of about six cenU for last season's The Food Administration has evinced a desire to treat the Porto Rico growers liberally, but the 1-cent advance is not all owing to increased costs. Moreover, a now shipping regulation will prove somewhat onerous to the less important producers on the island. They have bean in the habit of shipping their sugar on small ships whose light draft does not require a deep harbor. But henceforth they must ship by large steamers, which in some cases will involve transporting sugar over land by ox-cart for miles to the shipping port Central Aguirre is not affected by the regulation, as the port of Aguirre can accommodate large vessels. Annual report for the year ended July which usually is sent out in October, is likely to be late this year owing to the fact that the books are now kept in Porto Rico.

It will show profits less than the $67. a share earned on the $3,000,000 stock in the previous year, but this is to be expected in view of a desrease in production. In the year ended July 31, 1917, Central Aguirre earned $2,027,403 net without provision for war taxes. The company's war tax status waa then uncertain owing to conflicting rulings, but the 1918 report will show a very substantial charge-off for exceu profits A a company doing Ita entire business in Porto Rico, Central Aguirre fs subject to the excess profits tax but not to the corporation income tax. Central Aguirre paid $l6 in dividends last year and $60 In the year to 81, 1917.

The dividend policy in. future will not, ef course, be unrelated to items of taxes. Liberty bond subscription and necessarily larger working Central' Aguirre has at present more than $600,000 invested in Government securities, which', ia 20 of capitalization. Advances in Minor Steel rrodnctg Coincident with the $1 advance In pig iron the price of cttt nails was increaeed from $4 to $5 per 100 pounds. Cast Iron water pipe was advanced $5 a ton to $60, Birmingham, and $67.70 New York.

Horse hoc were advanced 80 cents a ton, to per 100 pounds. Advances of 15 cents per 100 pounds were granted on certain aiies of barbed Wire, the basic price remaining ANSWERS A TO INQUIRERS 'I'-'. "MTSUioxxt wqoIii ta tut ruBucs eaut SArMOUo" PARTNERSHIP COKPOKATIOH 22858-4(1 the answer to No. 2ci856, in figuring the income tax of the corporation, vou deduct from net income only the amount of the excess profile tax in order to reach the amount subject to income tax. Should there not be also specific deduction of $2,000 that is not subject to income foxf A.

D. C. AnswerYou are right The Houe revenue bill provides for a specific exemption of $2,000 of corporate- Income free from income tax. This is a provision not in the 1917 law and changes the figures giVen in answer to No. 22868.

Including this exemption with the amount of excess tax, $8,800, there would be $10,860 to deduct from the net income of $25,000, leaving only $14,200 subject to income tax, but $16,200 available for taxes and dividends. The income tax would be 12 on the $14,000 paid out in dividends' and 18 en the "remaining $200, or -a total of $1,710 instead of $2,076, making excess and income tax eojtether $1016 Instead of the individual's share li 15,258, to which must Wadded the surtax or I4U on the dividend. In the second case, the taxable net income would be! only $3,000 at 12, and the total tax on corporation andivice was reiterated by Howard Elliott at that time presi- individuals would be $2,344 and each stockholder's share: $1,172 instead of $1,316. In each case the saving in corporation! ncome tax would increase the surplus left In 'the treasury. TIMELY MARKET TOPICS Discriminative buying continues to feature Stock Ex change operations.

There Is no disposition shown in the financial community to lose sight of the fact that the probable duration of the war is a debatable question, but even the most skeptical regarding the early peace theory are ready to admit that isteady switching from war to peace snares is unaer way. This tendency was accentuated ty news of the overwhelming Turkish defeat and the col-1 lapse of the Bulgarian forces. The decisive nature of the British victory in Palestine was taken to indicate that the days of Turkey's usefulness to the Central Powers were numbered, while Wall Street argued that the rapid advance of Allied troops into Bulgaria foreshadows a blow at Austria-Hungary, which might bring an end to the conflict without the bloody fighting which progress to the Rhine against German resistance on the western front would entail. Classify peace and war stocks and issues which cannot wholly be placed either category, one houie says: The peace stocks include the railroads, public utility and gold mining stocks. The war stocks include the ordnance and ammunition stocks.

Somi-ver and semi-peace stocks include the steel, copper, electric, oil, fertilizer, motor, shipping and equipment stocks. Of these, we think best of tho equipment electric, fertilizer and oil stocks. The railroad and equipment stocks look best to us for the immediate future. We think thu't practically all railroad dividends are safe under the contract that has been ac cepted and that will Boon be signed by many leading rail- TdS'" i-WV' American Smelting 4 Refining was weak in anticipation of the report, just issued, showing balance available for dividends on the common stock from the earnings for the first six months of 1918 equal to but 25 of the showing for the corresponding period of 1917. Rapidly mounting operating costs, which could not be offset on account of the fixed price of copper, were responsible for tho decrease.

Twenty-eix-cent. copper did not become effective until July 2, so it was impossible to advanes smelting and refining charges until that time. The increase will figure in the earnings statement for the current six months, which will show a decided improvement over the initial half year. Central Leather was strong on declaration of a 2 extra dividend, which demonstrated the well-fortified financial position of the company. Conditions in the' leather industry at the present time are extremely prosperous.

Studebakef's steady advance due to recognition of the fact that the stock has been considerably undervalued at recent selling levels. Vir ginia-Carolina Chemical continues to reflect the company's high rate of earnings and bright outlook under post-bellum conditions. Its working capital aggregate $31,598,000. WaU Street has a habit of looking to the tape for Its forecasts of future developments. Special attention is devoted to the trend of bond prices, representing as it does the consensus of the soundest judgment in the world of finance.

Mr. Mott shows that there was no upturn in the bond market after the battles, of Gettysburg and Vicks-j ubrg. In fact, the lowest levels during the War of the Rebellion were reached in The fall of Atlanta in September, 1864, caused a brief rally, which was followed bj another decline that carried prices close to the bottorl again. At the fall of Savannah the bond market began to move forward. Six months later Lee surrendered at Appomattox.

In other words, bond prices began discounting peace a half year in advance. According to the laws of military analogy, the pres ent war should continue for a year or more. The Civil War, lasted nearly two years after the tide had turned at Gettys- burg. But in 1883 there was no check in the downward drift of bond prices to Indicate that the end was consid-' ered near. The precedent thus established has not been! followed in the present conflict When the Allie defi-! nltely halted the progress of the German advance toward Paris and besran carrying the fight to the enemy's I foreign war bonds immediately rebounded in tha American security markte.

The City of Paris 6s have risen from 81, to 98 since the close or Marcn. une ower rrencnj mriniciDals are up over 12 points. The French Republic 5s', which then were considerably below par, are now above 101. The 6 bonds guaranteed jointly by the British and French government are now selling around 5, against a March price 8 point lower. Admitted to' Federal Reserve Washington--The following state institutions have been admitted to the Federal Reserve System; Federal Title Trust Cc of Beaver Falls, capital First State Bank, Glen wood City, Security Trust Co, Mast, $200,000 Amer ican Bank of Commerce, Scranton, Pa, State Bank of Chatham, Chatham, N.

Rockland County Trust Nyack, NX, Traders State Leon, Isabella County State Bank, Plensnnt, HOLLAND'S J-ETTER EASTERN STATES, RETURNING TO THE CULTIVATION OF WHEAT ON A LIBERAL SCALE Much of his time, while serving as president of the Van-derbilt railroad system Brown gave to an exhaustive study of the possibilities of increasing our wheat cultivation. In the last four years of his presidency he visited many parts of the country to discover whether such an increase could bo accomplished without relying upon recla-j matioa of arid land in the Far West or upon attempts to open up new and yet not well tfested wheat belts, specially in the Northwest 4 i At that time, there was no thought of war in Europe. But there were apprehensions that unlessVe increased our wheat aupply rapidly the time was not distant when we be compelled to import the grain. It was his apprehension that the growth of our population might exceed onr yearly wheat supply which led James J. Hill earnestly to advocate opening up to cultivation," especially In the Dakota, of vast areas which scientists whom he employed reported contained rich virgin wheat soil.

Mr. Hill's ad- dent of the Northern Pacific Railroad Co, In the mid-nineties, John W. Bookwalter made an ex tended trip throughout "the western part of the country to learn what the possibilities for the Increase of wheat production were. His investigations justified his speaking with aome alarm of the condition as it then existed. He estimated that within a few years the growth' of popula tion in the United States would so far exceed wheat sup ply that we would be compelled to import wheat from Argentina and other countries.

MORE AVD MORE WHEAT mODCCTIOXS Notwithstanding a considerable emigration from the United States to the newly opened Canadian' wheat fields, immigration more than made up for the Sturdy Swedes, Norwegians and others familiar with wheat culti vation undertook to develop wheat lands in the Northwest They were so successful that it was possible to report a few years later that wheat cultivation in the United States would be, for some years at least sufficient to meet the demands of the American people, although there would be a constantly diminishing surplus for export WHAT THB WAR HAS DOE Mr. Brown estimated that throughout the East, and especially that part where in earlier days wheat waa suc cessfully cultivated there existed a large acreage which could be put to wheat cultivation. In New England he estimated that sufficient wheat could be cultivated to meet the demands of its people. He also advocated the return to wheat cultivation upon a large scale in western and northern New York, in Pennsylvania and in Ohio, The war and the appeal of tho Department of Ajiv culture are likely to result in the resumption of wheat cul tivation upon a large scale east of the Mississippi and especially east of the Allegheny Mountains. The Department of Agriculture has recently asked that the farmers increase their wheat acreage so that not less than acres will be utilized for this purpose.

Before the opening up of the great agricultural lands of the West, the eastern states produced all the wheat the American people needed. At one time wheat cultivation and milling in western New York were so great as to give Rochester, where excellent water power was obtained for mills, the title of the "Flour City." When the West was opened to cultivation and transportation facilities were furnished, the farmers in the East were persuaded that they could not compete with the western wheat growers, and gradually abandoned wheat cultivation. Now the ap-psal of the Food Administration, the urgent request which TT comes irum uur. xiwvcr iiu anii-m-y rjwi wmt.ii ui farmers met the appeal last year fer enlarged wheat acre- age justify the belief that what were the great wheat talta nf tha East in earlier Tears will aeain be devoted to cultivation of that grain. Holland.

WORK Coryri'sht, 1918, ty the Press Publishing Co. -I if aj r. i -4 a. -jrsx 7 I. Charterea toil jhi Farmers' Loan Trust Company Kos.

16-22 William Street, New York: Branch: Fifth Avenue, at 41st Street 0 London Paris COMMERCIAL CREDITS issued la iollara -as weli la fortlga meaty available ia I part ef the world. aV ACCEPTANCES PAYABLE at future date for both fortlga and domestic business. Foreign Exchange, Cable Transfen Member Federal Reserve Bank and New York Clearing House PACIFIC 3IILLS HAS DECLARED $20 IN DIVIDENDS THIS YEAR On $15,000,000 Capitol Company It Distributing $3,000,000 Lawrence Mill to Show at Least Double "Its Dividend Requirements -SeaBBa -t j. awlvii vMMaMiH mil vvjs uiiiuvtiv va mjj aialJuJ AT it TVarin Villa a11aav atirvitlav jfsVMaratiAn If Va aif tSt aaaaea avtiw wvmw aim "rj aw time of the Third Liberty Loan, both disbursements being made with an idea to furthering the success of Government financing. V.

With two regular semi-annual dividends of $4 'each. Panfie has declared a total of 820 in dividends this Year. making by far the banner showing of any of the big in dependent New England textile organization. On Its $15,000,000 capital Pacific is thus distributing in dividends $3,000,000 a year. Back in 1911, when its capitalization consisted of a modest 8,000 shares of $1,000 par value it was paying out out tixivw annuaiiy.

jt-cific' growth under the present management, has been notable. In th first half year alone Pacific earned $26.40 a share, or more than enough to cover all of its 1918 divi dends. There is no doubt that the big Lawrence mill for the full year will show at least double its dividend requirements. At the current rate of expansion over a year ago and in view of sales for the first six months of practically $28,000,000 Pacific will probably break Into the ranks of $0,000,000 industrials this year. Net sales for 1915, the firkt year of the war, were $13,000,000.

.1 American Steel Wire's Crop Report Chicago American Steel Wire crop rep6rt says: Not only is the weather too cold, but it is tod wet these two thinKs are holding back the ripening, of corn; but, on the whole, corn prospects are very bright This Fall killing frosta have made deeper rUienta into the northern tier pf ststes thsn in an average year. This is true of Montana, North and South Dakota, Minnesota, V.lm Va Tn M.nw nlnMf rain. I1AVJI isconBin unu .1 cui held back the work of seeding winter wheat, a good thing for the crop, for the farmer is forced to hold off aeedingr until the danner from the Hessian fly is greatly reduced. Interest in wheat crop is evident everywhere. OR FIGHT JMJUtjO jr WW'S 1 I tr tw Lf-JFrm th New York Evening.