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

167 97 47 130H 101 96.69 21.47 miDKO IMS HIE VALL STREET JOURNAL oiu aid niiH Kerne l.bliah4 tk Calls, etreat aaaUaxa. hf d6V, JONE9 fi. CO. t. nuNtl.

Hal hMnli. Iwftufy, Jaerkh rulaui, Traeawrar. 4 raa Blraat. rm lark. 0 Tlpkn; llre' Oaa.

.07 .33 21 1 3V4 3W(3 4.44 4.45 Off 1 3 Ex-dividend. 1921 Aug. Last high point. Nov. Last low point.

Declined to Jan. Rallied to May Declined to Juhf Rallied to July Tues. July 25 Wed July 26 Thur. July 27 Fri. July 28 Tues.

25 Wed. 26 Thur July 27 Fri 28 1 ill )rir. ill moMinry. or acvaa raaia tally, for either 4lllnn, Kai.s paid Hi the I'altarf Vial. CaaaaA.

M-air. l'url film, tluaiu. lHllplaa laUntla. Ilaaaltaa Island a ad Cuba. Karelia uatae II yaer additional.

Vubacrlptiaaa raraivae' al Waahlnfiu lluraau, Mii Street. H. Oik-afe Uuraau. r.aam lit. La Valla Niraat; ltrell Hurtau, Fr4 IUI.

Amm rkanft aa requrel; alaaya eld addraea. Arllianaui llaue 1U ba furnlalied ly ua or any raapaaalbla advertialn any. Katrrad aa arvndt Um matlrr Auiuil 4, IMS. at Ihe poal (ffirt at New Vara. N.

Y- undnr lle An of March a. I IT. ri Faper Hat a Larger Circulation Than Any Other America Financial Publication. Tba iralb la It proper aa. Our graatrat flory eoaalata not In nrvar falling, but la rlaiaa every time wa fall.

Ouldmltb. MAIIKET DIARY 1922 1921 Friday, July Irregular. Friday, July 29 Irrerular. 812,800 Stock 443.900 14 UK i nn SIiim Jinnin 1 Sales 2000 4100, 18100 14600. 13100, 11600.

10200. 54800. 24 C3.90 2, 24, "21, 63.90 10, -22, 78.59 29, '22 96.41 12, '22, 90.73 20, "22, 96.76 TWENTY INDLBTRIAL -iars- Arrr. A. Dot.

95.69 1.05 94,84 .85 96.36 1.62 96.69 .33 TWENTY RAILROADS Aw. ASt. Iac. 86.14 .61 85.59 .65 87.63 2.04 87.70 .07 108.571.300 Stocks Sales Price Up Off A Fy 400 128 2400 85 A Ohio 2300 39 Stl 1300 55 Petrol. 11100 105 Central 2300 Penns'vania 6M0 15200 16400..

8 7400 Average 20 railroads Average 20 industrials. 714 3714 76 73 73.33 68.37 New York October 12.03 Chicago September corn. 60H Call money renewals Time money. Commercial paper Trime 90 Demand sterling Cables 1 Rails a .19 8 1 DAILY MOVEMENT OF AVEKAGCS .25 Jan. 15 77.56 June 20 65.62 Oct.

4, '16. 112.28 June 20, 2L 05.62 Dec. 23, "21, 73.30 May 29, "22, 86.83 June 12, "22, 81.81 July 28, "22, 87.70 loai- Avrr. ASv. 69.20 69.18 68.18 68.87 .19 Dae.

.60 .02 1.00 ibsi Aver. ASt. D. 72.93 .16 73.08 .15 73.58 .50 73.33 .25 REVIEW AND OUTLOOK THE IRON HORSE; THE PUBLIC GOAT When Washington desired to bring down the cost of living it set out to reduce railroad rates, which in totaj do not amount to lO.per cent, in the cost of living. The railroads were still on an unprofitable basis after 30 years of political agitation against them, which ter minated in the absolute destruction of their net earnings and credit under government control.

The rail roads were promised compensation and guarantees, but the compensation is still unsettled and the guarantees do not exist in law or in fact. For well nigh 39 years the Iron Horse has been the public and political goat with' nobody responsible for its sustenance. Tho roughage or hay for this Iron Horse ii new capital from the investing public which will take for that new capital new pieces of paper. But the real sustenance ia the railroad rate ration daily received. Yet, Washington told this old transportation goat that the way to health and prosperity was to reduce the daily rata ratios In order that it might be swollen later from in- creased traffic.

"A Tha railroad, were told by tha Interstate Commerce Commission to post reduced rates in expectation of cost reduction in' fuel and labor. But th expense to the Railroads for both fuel and labor is today higher than before. Yet, does anybody propose increased railroad rates 1 It was dishonest politics that reduced railroad ratal the Wall stkekt journal, satukday kvknlnu, july 20; 1022 ltk th promise of reduced pease. Agaia th raQ. road li th political goat and the labor goat Reduced ipcaaai were no mora guaraataod than waa a per cent return uaranteed by tha government.

Tha honest malhod would hav beea first to hav made such rata a would hav Iniurad pro parity tat railroad. Hut ft waa adjudged good politic kit the railroad, tha old oat, aad than part off a measure from tha doubled war wagee of tha railroad employee with apologia to Compere and wall. Some day tba public may awaken to the fart that thU political oat If really tha daily work bono of every family and ovary man in tha United Statee, and that It la brat politically, aa well aa tha highest lUteimannhip, to feed him aa well aa treat him and hit lupportera. honestly. But if the men who have remained loyal to their porta and have not atrurk against the public safety the gov.

trnmmt are to be domoud and tha rebellioua atrikrra re- atored with seniority, there ia only a postponement of the real Issue aa to whether the labor union or the govern. Qient la to bo in control of tranportation in the United State. If the labor union rontrola, there ultimately neither aafety for government, nor credit, nor value, in trans port a lion. 1 Striker seem to bo a little behind the timet. They never make arrangements to sell 'the movie rlirhta.

GERMAN COMPETITION Before the war an American dollar in Germany would buy about four marka' worth of goods. Now, that aamo dollar ia equivalent to approximately 500 paper marka. Germany ia an industrial nation and in the earlier period waa a heavy exporter. According to tha argument and feara of aome tariff framera, the exchange aituation hould now make her a still more dangerous competitor. But fart do not bear out theaa fears.

For illustration, take cotton hosiery. Once, Germany $7.535,000 Mi.ceU.noou. $7,395,000 11,479.969,000 Sine. January 1 1874.799,000 Vd "nuhwi producU all over the world. 13,453.000 Liberty Loan $7,363,000 iSh- United SUte.

produce. $1,095.241.000 Since January 1 cton ni lnor noraspower per worker fiuan.uuw Jtonaa ana uoan $2,57510,000 January 1 Price Up 172M 4 101V 574 881b man any country in me worm, cut noiwunsianaing this, when four msrks nearly equalled a dollar it bought heav- ily of German goods. German atatistica ahow that in the calendar year of 1913 our imports of cotton hosiery amounted to 1,323,500 kilos. In the year ending with April, 1922. they were 414.100 kilos.

And yet, in this later period the exchange aituation gave a great advantage to the importer of German goods. Russia and the Balkan markets no longer figure in German exports. Naturally, a greater export would be made to other countries. That they are not chows that Germany is not able to meet her rivals in trade. Onre, Turkey, Egypt and the Asjatic countries were large buy- per cent, less now than then.

Through the whole list of countries the reductions are heavy, although not so 'great those referred to. But for the whole world the aver age reduction is tu per cent, uermany nas lost her 3.55 9b 'markets. .3.66 Following are tha dally average prices, at the dose, of twenty industrials and twenty railroad stocks, for tha period indicated: ladaatrlata- High, 1921 Dec 16 81.50 BocauHe Germuny was not invaded, the extent of the allied victory is not realised. But it was none the lean sweeping in its effect. The vanquished country then undertook a policy of blind fatuity.

She proposed to win "The men folks '11 get your old man," she warned. The other -woman stood silent. "They'll shoot him or burn him may hang him!" No response. "They'll get you, too. Can't, tell what his work- ing'll lead to." Still no retipon.se.

on a small tonnage of special size plates. We'll split the difference between what you offer and our price be fore the strike tied us up. The company lost a possible $6 a ton but kept a Inend. ANSWERS TO INQUIRERS 1aeu4sT taotiaf is re I pt bur's oaeaT 4ca" 1NCOSI12 TAX rilOnLLMS KimtiiiK or STOXK 2(841 eira tin rra of Siera mkitk I eamtuUr exert $:00 a Ki or $1,000. A parfg a saarvs tt0tk in aaalAer roaipaeg traara cUm nh We darvfe la irwWe aad him mw lea hart, for Au n4 My kim M0 Utt ttmU lndlt lha trantaeH far imeama tat jmrftttl W.

Answer Tarre la no gala er leaa for Ineome tax purpoare on the exrhango of comma stork ia one com pany for common stork In ahother, since la aa rhanga for "property of like -kind er aa." Whea yoa cotne to sell the 20 share you lake a your beis in flgur mg your gain or Iota the amount you paid for the ton ahareat given in esrhange for them, plus the $100 you had to pay at the time of the exchange. What tha stock waa worth, when you exrhangt It for other stock do not enter into the transaction other than to fix the amount you had to pay to make up the difference. This problem has been handled numerous tun recently in Tha Wall Street Journal income tax query column. IVUMK rBOaf ItSTSLHEbT StK 24S62 aim property kuh oott ma $18,000. seJt it under a contract far a deed far $24,000 and the pur.

hater agree to pay iVrrrst on the amount due and $100 oo A principal amount rack month untit tke entire amount paid, with the provioa that ke fails ta complete the payment tko amount that ke does pap akall eontiderod at rent an the proprrtu. If cont inure hit payment until the full amount i paid then I am ta fire htm deed for the proprrtu. How tkaU thit ke handled for income tar purposes A. Answer The instalment, being small and many In number extending over a long period, the full amount of profit to be realized if the whole $24,000 is paid la not taxable income at the time the contract la made. Only such' proportion of the tola instalment for each taxable year as represent profit is taxable Income.

In rase of default and entry into possession by the vendor (who always has title), the full amount received up to the time of default and entry is taxable as income received In the form of rent arffl revined returns may be necessary. The Interest received Is taxable income in any event. STOC BKf EIYED BT BlXtt RtT 24K63 In 1917 waa bequeathed ten ahart af I'nton Pacific flock, but the estate teas not divided until Jan-: uory 10, 1922. At uhat price do I enter the value af th ttuck the dot when the will wat filed or, the data when the itoek wa delivered to met The itock in que rt ion wa told July 15, 1922. at 141.

J. 11'. Answer The value of the stork as of the date of the testator's daatH as computed for the purpoae of the federal estate tax is the bais to be taken, and not the value when distributed, rebiduary bequests. This applies to both specific and STOCK AS 1)1 IDE 24864 May a corjioration buy fn it preferred etoek, ers, hut not now. Next to the United States, England was or a portion thereof, and then reiteur the said preferred the largest purchuscr.

Now she takes 93 per cent. Argentina was the next largest purchaser. She takes 84 etoek to it etockholdere a a dividend, u-itkout incurring any federal Itahility to tha etockholder for income tan if L. Answer A dividend in preferred stock, which is not given preference over or equality with creditors, is a true stock dividend for income tax purposes. This ia on th theory that the proportionate interest remains the same.

If a corporation has preferred stock outstanding and redeems it, purchase cancels the stork, increasing the rights of the remaining stockholders. The stock remains canceled for all purposes until reisKued. In other words, it is the same as if no stock had been issued. Now, if the the peuce by ruining her conquerors. The result was her corporation distributes the canceled preferred stock as a own bankruptcy.

A country prostrated by war and bank rupted by its own folly does not possess the foundation on which to base a strong competition. Those who are writing tariff schedules with Germany in mind are influ enced by figments of the imagination rather than by facts. "BY THE WAY" Damage caused -by insocts may reach a billion an nually, but what about the humbug? a a a Labor Board should be stronger than a plank in either side's platfrom. a Eighteenth Amendment makes the pursuit of happi ness too much of a chase. a dividend by means of a reissue, it has the same effect as if a new iwiue of preferred were declared and, assuming that it complies with the requirement that it shall not share equally with or in preference to ordinary creditors, it is a true stock dividend on viich the stockholders are not taxable Office decision 801 is to the effect that "a stock div idend paid in true preferred stock is exempt from tax the same as though the dividend were paid in common stock; however, if the stock issued and distributed as a dividend ranks with or prior to the interest of general creditors (with respect to the payment of either interest or pnnci pul), it can not be considered true preferred stock, and must bo treated as income to the recipient." T4X OK AI TOMOBII.KS 24885 Will-you inform trie whether tha tax paid on an automobile at the time of purchase it deductible from Micht not Uncle Sam refer to Europe as his debtor United State pergonal tax a on exemption? For instance, nalf Ufa machine bought from ine racieara Motor to.

and THE WALL STREET JOURNAL STRAWS The Business of Picketing A striking shopman's wife was telling the wife of a member of the union who was sticking to his job that if she didn't make her husband quit working she would soon be taking in washing to support three fatherless children. the government tax of 8220 ts paid to tho company as government tax it thi deductible a an exemption A. K. Answer No. This is a tax on the manufacturer and he add it to the price, so that it is an element of cost of the automobile to you and not deductible as a tax.

PREFERRED STOCK BOOKLET Fourth annual edition of "Industrial Preferred Stocks" has been completed by Dominick Dominick, con densed information on preferred stocks of 32 leading domestic industrial companies. PEl'PEK AXP SALT "KAMERAD" All this talk about international harmony and oneness "Why, I heard aome of the ladies say already the and nien being the same in spite of flags and frontiers were not going to speak to you any more. merely ine cneci oi oeing urea, moderns nave long applied fatigued simplification to right and wrong and a I a. a A are on tne verge oi applying ngni ana leii. "That's too much," said the far-sighted salumanager will all be the same in 100 years rather than decide what of a large steel company to the prospective customer I to do iif ten minutes.

But there is no particular phil-who had just offered to pay a premium of 28 over the osophy or philanthropy about that; it is a mark of low regular asking price in order to get immediate shipment vitality or incipient slumber. II A-- I 1 I The socialist simplification that would deny a Prussian to be different from a Parisian is not fraternity but the dissolution of dazzled eyes and deafened ears. It is not progress but a slipping back into thct slimy island sea, that monstrous pool somewhere in the dark heart of Asia, which Buddhists call Nirvana. The New Witness. rw -cioiuiYjc yA51 DIVIDEND WAIT FOR A RISE rnuoaenia -eysione watcn Case Co.

directors Club Bore That impertinent fellow, Brown, offered poiuwu wnc Huiwwiy qmaena due at MIS time. Three 1200 ta reaiirn nv nwrnhM-shin. What Uu ui.iucuu vi oi J7c was ueciarea. mor advise me to do 7 A. 1 A A 1 I io i.iov quarterly payments at rate of 97 per annum had Jollver Han on a bit vou'H n-ohaWv et itic i- Mimu muw iut Tranacrini.

HOLLAND'S LETTER LARGE MAJORITY OF SOLDIERS WILL OPPOSE BONUS WHEN ENLIGHTENED A3 TO WHAT IT INVOLVES Sorretary of the Treasury Mellosi kaa oa his desk a memorandum delivered to him al hi. requaat Very likely UIM kk 1 1 it a UfAM.lL, ZINC PRICE ST. LOUIS STRONG AT 6.15 CENTS STOCKS REDUCED ABOUT 10,000 TONS TUIS MONTH TO LESS THAN $0 DAY'S SUPPLY DEMAND STRONG Soma a mo ih AmarVaa! -int I Mlllng at 111 rent a pound. East 6L Louis. Expeditionary Ferre, originally mobilised at a consider-.

to a tonnage, with demand so strong most producers ahle town in th southwest, recently held a reunloa at klB ThU Is tha highest prlca for tine alnca Omaha. Tba waa aaaiaaa La Ai. November, 1IM, and compare, with th pre-war prlca cover the feeling respartlag the bonaa and atked each.e' soJdier to voc aaon)mosly mr er It was found "llrr pr. that about 9 favored tho bunas. -lwm vumin ago py uow, joaes, when The commanding general waa persuaded that their nU- lMw- on 1 votes represented no more than a sort of vsgu sentlmen.

re tautng ia recogniso ui. s.iuauon, Ul Interest and. therefor, address! the veUrans, ior increasing oe. Ing a thorough expoitkn ia detail of what tho plan ma.n.y ouy.ng oy would meaa. how each aoldier would reeelv, only a small nM vp p'r sum which would be perhsp foolUhly ar carelessly ex-," pended.

II wont on to say that th aggregate, neverth I k.v,,- tiwMrwMivM ik- Mn compsnlo hav not been buying enormous Indebtedness of th; United States. It would w'th Wr. seem. proUble that they entail a large lacreaM la tax.Oon. Furthermor.

It would wm i TLa J'" T. 7 Consumer, have not realised th InabOlty of th alnc wera inspired mora by mercenary motives than by a sens Than asked th veUrans to deposit new vote. It ss found that 92 voted against th bonus. They did that bocaus their own commanding general had made such exposition of th plsn as to gi their first "onlh understanding of all It involves. When Secretary Mellon wa told of this affair, It Interested him a much that ha asked for a snemoraadum which might prove useful ia demonstrating to certain Senators that American soldiers, when they understand what th bonus means, will refuse ta support It With this Information Senators who are bow hesitating ar likely to be persuaded that the American soldiers aa a whola will support them If they refuse to giv their votes la favor of th bonus plan.

Measures taken by President Harding and Secretary Hoover to relieve th coal shortage will probably prevent aeriooa disturbances this fsll and winter to Industrie and households. LoaJers of industry be) lev th tim oppor-tun for such further action as will hereafter eliminate the danger of friction betwen miners and operator. The public ia not fully Informed respecting the coal which wera around 29,000 tons July 1, ar now undsr 20,000 tons, it Is estimated, or only about 20 days' supply, aa buying has probably cut into stocks close to 10000 torn There ia every indication that consumption of new tine, which has averaged better than 80,000 tons a month this year compared with a pre-war home use of around 25,000, will show stilt further Increase this second half as exhaustion of scrap forces greater resort to virgin tine by brass milts. Temporarily shortage of both coal and natural gas Is restricting output at tine smelters as much as it Inadequate supply of laoor at both mines and" smelters. Even with abundant fuel and labor supply it is stimaUd that, were Western and Joplin mines producing at full capacity, it would ba practically impossible for American production to exceed 35,000 tons a month.

Juno output, despite very effort to inert it, was only 28,500 tons. Considerably larger than 85,000 tons a month has been produced by American smelters but at such timet, other than when tha war was on, Urge shipment were industry. Facta accumulated by a competent coramU- comin from Asia and Africa as well aa from Canada son of five or seven would enlighten public opinion and Lnd Mexico. Owing to shortage of line ores In Europ and might lead to eonatrocti action that will end disturb- condition, Jn Melco HtUe dependence can be placed for am-e in th coal industry. Information has reached New tim npon lmporU of orejgn linc orei to out York that President Harding la disposed to appoint uch Amarirai.

ft a oelievlng that can call Into his rvlcejrini tMm probmbU thtt prIe, 4round UyeU Km? VI UaC Capital Stock Tax Duo Corporations are warned, in a staUment issued by internal Raranue Collector Frank K. Bowers, of the rities on London Stock Exchange increased 83,056,000 during month ended July 10, compared to decrease of 32,424,000 during month ended June 19. Fixed interest stocks in with British funds leading increase, and variable dividend issues 40,545,000. Home rail variable interest stocks and American rails gained. ST.

PAUL CAR LOADINGS Chicago Car loadings of the St. Paul for first 22 days of July were 1002 againtt 82,395 a year ago. TO OPEN BRANCH OFFICES Logan 4 Bryan will open seasonal branch offices, after August 1, at Poland Spring House, South Poland, Maine, and at Mount Kineo -House, Uoosehead Lake, Eineo, Maine 111 prevail on tine for many months, with bulges well above 6 cent, as temporary condition intensify difficulties in satisfying demand. AIR REDUCTION CO, t- k. to thair Canlul Strk' For th three months ended Juna 30, 122, Air Re Tax unles.

their return, ar received at th Custom- fction Bet PrflU WWW house or deposited in th mail, by midnight of next lion-day, July SI. Approximately twenty thousand corpora tions hav thus far failed to (lie returns for the taxable period. July 1, lW2-June 30, 1923. All corporations are required to file a return even though the Law may indicate that they are exempt from tax. The question of exemption is one for determina tion by the Commissioner of Internal Revenue.

Stork Value) on Ixndon Exchange) London Banker Magacine tables show value of secu federal taxes but after interest and depreciation, equiva lent to 1.51 a share, earned on the 153,114 shares stock of no par value. This compare, with profit of 1192,270, or $1.25 a share in the previous quarter, and $184,814, or $1.20 a share in the corresponding period of 1921. Income account for the quarter ended June SO, 1922, follows: Gross income Operating expenses Operating Interest, deprec, Net profits 1922 1921 $1,773,883 $1,337,784 1,235,005 898,196 $538,878 $439,588 307,527 235,274 $231,351 fl8i.SH AJax Rubber A four-point break in Ajax Rubber to 914 is attributed to rumor that the company contemplates some new financing. Horace De Lisser, chairman of the board states that company is contemplating no financing of any kind but on the contrary is liquidating its indebtedness faster than it is due. Payment has Just been mad of $300,.

000 of bank debt which was not due until the latteA pars of October. Mr. be Lisser characterizes company's finan cial position as "better than at any time in company' history." THE USUAL DEADLOCK RESULT From Louisville Courier-Joorn-l Jg i.