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

LL STREET 2 VOL. LXXX. NO. 48 EVENING EDITION NEW YORK, SATURDAY, AUGUST 26, 1022 -EIGHT PAGES SEVEN CENTS nn MAT. MU II I.

it 1 A 6j "i 0 Daily Morning and Evening Edition! (Except Sunday and Stock Exchange Holiday) Published by Dow. Jonet Co, the Oldeat Newt Agency in Wall Street Largest Caxulation of American Financial Paper. Entered Under Bcond Clan at Post Office. Ntw Tork. HUDSON CO, 66 BROADWAY, CITY BOWLING GREEN 3800 MEMBERS OF New Tork Stock Exchange New York Cotton Exchange New York Curb Market New York Coffee Exchange Chicago Board of Trade Philadelphia Stock Exchange UNLISTED SECURITIES DEPARTMENT FOREIGN EXCHANGE Wanted J.

K. RICE, JR. CO. For Sale Atlaa ert. Ceaaeat IK Amrr.

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RICE. JR. CO. Wall at N. Y.

Pfceaea Jafca eee ta 40te aa 811 ta Ml Adams Express 4s, 1947 American Typefounders 6s, 1937 Burlington Railway Light Bs, 1932 Canada Cqpper 6s, 1924-1928 Denver City Tramway Bs, 1933 Island Refining 7s, 1929 Oregon Electric Railway 5s, 1933 Sierra San Francisco Power 2nd 5s, 1949 Vermont Hydro Electric 6s, 1929 FREDERIC H. HATCH CO. 74 Broadway, New York Pkaaa Bawllac Grara 1220 laataataaaaaa private trlrpkoa wlrra ta Baatoa'aad rkllatrlpkla WANTED 1M Ama. Tyaaaaiia pf JOO Appalachian Pewer raaj ino Hllaa. B.

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LI. PRIHCE Ck CO Mambata New Yark Stack firhanaa 10 Brtad Street, New York TeL Hector 9831 Mexican Gov't R. R. Bonds Chilian Cedulas 8s rolish Gov't 6s, 1940 Mcelroy co. 43 William Street Tel.

Jaka 24S6-242T Maxwell Closed Car Prices Cut LVlaxwell (Motor Co. has reduced price of sedan and coupe 9150 each to and respectively. Opan ear models are unchanged. Gold Imports LondonGold amounting to 1,275,384 was exported to America during -week ended August 23. STUDEBAKER'S PROFIT A DOLLAR OF SALES IS HIGH ON SECOND QUARTER SALES OF $45,606,044 PROF ITS WERE $7,086,552, A RATIO OF 1 15 CENTS it But Quarter Last Year Ratio Barely Reached 13c Inert at to fJSSS in Second Quarter This Year, on Lower Selling Prices, Indicate How Readily Price Reductions Art Absorbed Through Increased Output Steady increase in Studebaker Corporation' profit a dollar of aalea reveal a how well prepared the company waa to make ita recent'prire reduction of about 109b and Indicates that further reductions, II necessary, could be made without acriously impairing earnings.

On sales of 145,608,041 in second quarter thia year, net profits after chargea and taxes were $7,086,552, or about 15 cents a 'dollar of aales. In the preceding three months the ratio waa alightly better than 14 cents on aalea of $27,816,817 and net profit of $4,069,848. For the full 12 months last year, when aalea were $96,690,643 and net profits $10,409,690, ratio of profit to each dollar of aales was' 10 cents, and in the best quarter, which was the sceond, ratio barely reached 13 cents. Following tabulation shows aalea, net profits and profit a dollar or aales lor first two quarters this year, nrst three quarters and the full year of 1921. Actual figures for last quarter of 1921 were not issued and to show them as difference between those of full year and total for first nine months is unfair because of year-end charge-off and adjustments, some of which are applicable to previous quarters.

Profit a Dollar Net Sales 27,816.817 96,690,643 29,059,893 33.059,634 18.475,270 Net Profit $7,086,552 4,069,818 10,409,690 3,203.201 4,270,547 of Sales $.1553 M4C3 .1076 .1123 t.1291 2nd quarter 1922. 1st quarter 1922v. Full year 1921.. 3rd quarter 1921.. quarter 1921..

1st quarter 1921.. 2,110,577 .1142 'Price reductions approximating 10 made January 7, 1922. Price reductions approximating 87c made June 1, 1921. How readily Studebaker can absorb reduction through increased operations ia revealed in a compan ion of results of first two quarters' this year. 'In the first three months, at the beginning of which prices were cot about 10ri, profits a dollar of aalea were $.1463.

In the succeeding three months, with sales nearly doubled, the ratio increased to $.1553. In the third quarter of 1921 ratio declined to $.1123 from $.1291 and while this might have been partly at tributable to the June 1 price rut approximating 8S, a reduction in sales volume also had its effect. Price reduction approximating 10 effective Au gust 1 no doubt will cut ratio of profits to sales in current quarter, especially aimM aales volume will fall off some what. A 10 reduction in the ratio, however, would leave it close to 14 cents, or more than a cent higher than the best quarter last year. BALDWIN WELL BOOKED UP Orders Enough to Keep Plant Busy Into Next January Unfilled 1 6,000,000 Philadelphia With over $16,000,000 of unfilled orders Baldwin Locomotive Works has sufficient business to keep the plant busy for the remaining four months of this year and well into January without considering any new business which may develop.

At the annual meeting of the Cuba Locomotive Machine Works, a Baldwin subsidiary, to be held Septem ber 7, officers and directors will be elected and an organization perfected. Extent of the shop which will be used for repairing locomotives ha not yet been determined. SOUTHERN GAINING SHOP FORCES Chattanooga Southern Railway haa restored two local train discontinued because of lack of motive power. Local shop have about 25 men at work who are returning to service two engines each three days, in addition to doing running repairs on equipment' now in use. Nashville, Chattanooga St.

Louis trainmen have finally determined not to refuse to operate -trains, at present, on account of alleged inferior condition and danger to lives of passenger and crews. Both roads are running late, Southern- particularly so. Rubber Price Stabilization London Rubber Grower Association has definitely turned down suggestions made with object of stabilizing price of crude rubber. American interests have suggested formation of fifty million sterling corporation with object of amalgamating and assisting estates and a. conference between British rubber planting industry and Rubber Association of America is contemplated.

Minneapolis Traffic Gains Minneapolis July's traffic through this gateway in-ised 11.6. Shopmen's strike effects were only slight ly felt Cars received increased 1,141, or 4.9, and cars forwarded increased 4,332,, or 16.9. Automobiles and building material, binding twine and iron and steel showed principal increases. Confers with President Washington Alfred P. Thorn, counsel for the Amer ican railway executives, conferred with the President at the White House 11 o'clock on the pending 'railroad situation.

GULF STATES STEEL Current Quarter Should Show Earning Equivalent to Annual Rati of $lt a Sharo on Common If earnings of Gulf States Steel Co. continue at current rate, net profit, after all chargea for the quar ter ended September 30, should be over $350,000, equiva lent, after preferred dividends, to the annual rate of about $12 a share on the $11,000,000 common stock ($100 par). In the first half of 1922, net profit after all charge were $305,980, equivalent to over $2 a share on the com mon. Consequently indications now are that Gulf States will earn at least $8 a share on the common stock for th current year, even without any improvement thia fall. Finishing mill are practically at capacity and com pany has all the business it can take.

It has advanced wire product in the past week about $1 a ton. PARIS BOURSE IGNORES TpLITICAL DEVELOPMENTS Labor and Economic Conditions Unsettled and Believed to Point to the End of the Prenent Boom Labor Shows Discontent Cabled to The Wall Street Journal Paris Deopite alarming cascade of currencies, the Bourse displayed cheerfulness and atrength throughout the week and there was special cptimism in Russian, Turkish and Roumanian securities. Austyan 4s, curiously, are still quoted at 35 francs, while Hungarian 4 are only around 20. Recent comparative steadiness in franc ex change has been adduced as argument of ita independence of German mark, but its sharp fall at end of week was disconcerting. Bourse, however, still refuses to take notice of external political situation, though detached critic believe that optimism is unwarranted by economic condi-tiona at home, and aay that as soon as the government begins putting out loans again, the genuine investor will withdraw and the present modified boom will collapse.

Indications multiply that a determined onslaught against eight-hour law will soon be made. Decree modifying application of Mercantile Marine Railways were approved by cabinet. Mine owner are also moving in the aame direction a well aa metallurgists. Labrtr threatens to make vigorous stand as it is unwilling to see wage diminishing and hours increasing. General strike has broken out in Havre as the result of reduction in wages of metal worker and intervention of communist federation of labor which split off from original national federation, and hi now controlled by The latter, according to ita president now has only 700,000 members against 2,000,000 in 1920, but communist organization haa not more than 100,000 mem ber.

It is reckoned that over 1,000,000 workera have abandoned the unions on account of strike fiasco and internal dissentions. Nevertheless labor is not suffering and there ia little unemployment There ia complete mystery as to the government's next move in the reparations question but the business world does not believe Poincare has much faith in military measures. There is a campaign among industrialist to bring about direct understanding with Germany. NATL. ENAMELING STAMPING Wa Started Up Five Additional Sheet Mills at Granite City Plant Coke Output Increaeing National Enameling 4 Stamping Co.

haa started up Ave additional sheet mill at Granite city plant. Order are far in advance of production. Recent strike of 1 annealers lasted only half a day. With new supplies of coal available production ia increasing in coke plant of St. Louis Coke Chemical with result that not only is blast furnace working at full capacity, but there is a surplu of both pig iron and coke available for sale to surrounding foundries.

TEXAS CO. CasDer Texas Co. has organized a subsidiary in Colprado, to handle its production in the northwest, with $1,000,000 capital stock, known as Texas Producers Co, Immediate steos will be taken to secure lease and pro ductive acreage, as well a production from other opera tors. Company will open offices in Denver and Casper. Texas Co.

is making record progress with construe tion of its Casper refining plant which will be ready for operation before January. Central Pipe Line asso ciated with Texas, has completed 17 miles of its line from Salt Creek to Casper and with two crew working will be eady to deliver oil before cold weather. 6 American Surety Co. Bank of America Bank of Manhattan Co. 1 Bank of New York Columbia Trust Co.

Continental Ins. Co. Equitable trust Co. Fldellty-Phenix Ius. Co.

Guaranty Trust Co. Irving National Bank National Bank of Commerce National City Bank National Liberty Insurance. Co. National Parlf Bank National Surety Co. New York Trust Co.

Realty Associates U. S. Trust Co. Co. KMhaas Plata, N.

Y. mo rnVrng foe COAL SIIORTAGE BRINGS INQUIRIES ON OIL FOR FUEL INDUSTRIES CAN USE FUEL OIL KEROSENE IS BETTER ADAPTED FOR USE INT HOMES Standard Oil Subsidiary Owns Patent on Sew Type of Burner for kerosene Manufacturers of kerosene Cooking Stoves and Water Heaters An Working Day and Sight to Meet Shortage (Large oil companiee are receiving hundred of inquiries regarding' conversion of coal burning boiler to oil firing for generating cteam in manufacturing plant and residence. Inquiry is occasioned by scarcity of coal. Larg est of recent conversions to oil ia Ford's Highland Para automobile plant, which will use about 1,000 barrels of furl oil daily. While manufacturing plant and railroads are equipped to use fuel oil, big oil companies consider it too difficult of delivery and installation of equipment rather costly fcr genera domestic heating.

They nee a tremendous field for use of oil in boiler to heat residences, but feel that low grade kerosene would prove more desirable fuel. One thing particularly in favor of kerosene over fuel oil, they contend, is that it needs no preheating. Fuel oil from 'Mexican crude, owing to its viscosity, requires installation of rather costly equipment. Oil companies point out that kerosene can also be delivered readily with present facilities. Kerosene deliver)- is oldest marketing operation in cil trade.

Standard Oil Co. of New Jersey, through a Bubsidiar owns patent on new type of burner for using kerosene distillate in place of coal. Cost of installation, including inside tankage for 50 gallons, approximates $250 with reserve tank Outside of residence an additional It is estimated that about 100 gallons of thia distillate would yield same heat as a ton of coal and cost about 9 cents a gallon. Not only w6uld this be cheaper than coal, at present, but there would be convenience of supply as well as a saving in elimination of ash removal. Work of using kerosene for residential heating waa initiated by Standard Oil to familiarize people, in the hundreds of communities using natural gas for heating, with heating by kerosene against the time when natural gas might be exhausted or too expensive.

of coal ia accentuating effort to popularise kerosene for burning in boilers in communities outside natural gaa consuming area. There is a larger demand for kerosene for domestic' purposes. Manufacturers of kerosene cooking water heaters and room heaters are working day and night to meet a threatened shortage. An instance of how kerosene is being recommended for residential cooking and heating is the appeal of James J. Storrow, coal consignee for Massachusetts, that people refrain from burning coal for cooking or heating until November.

He points out that enough kerosene is available and weather ia sufficiently mild, at least, until November 1, to permit kerosene to supplant coal for cooking and heating necessary in houteholds. Mexican OH Completions Tampico Corona Ca (Royal Dutch)' has completed Cacalilao well No. 5, with 200 barrels at depth of 2,170 feet. Gulf Oil Co. has completed Lopez well No.

4, with 1,000 barrels daily, at depth of 1,847 feet Toteco Production Tampico Toteco oil production in 24 hours ended 7 a. m. August 25, totaled 96,000 barrels; Mexican Seaboard produced 24,000, Gulf Oil 87,000, and Mexican Petroleum 85.000. H'e recommend Missouri. Kansas Texas Convertible Adj.

Bond and Preferred Stock Listed on New Tork 8 lock Exchang Detailed circular with earnings for lilt (5 montht) and lftl on all bonds and stock sent on request, Circular W. FARS0N, SON CO. Members Now Tork Slock Exchan-a IIS Broadway New TenB We are in the market for Colorado municipal issues of such citiea as the following City of Denver Colorado Springs Greeley Loveland Fort Collin Trinidad Also bonds of all issue of the State of Colorado. BdSWOIflttGIANUTPG 701 Seventeenth Street -DENVER, COLORADO Columbus Ninth Ave. 1st 5s, .1993 Lexington Pavonla Ferry 1st '93 Second Ave.

Receivers Ctfs. 6s, 1919 FINCH TARDELL afeateer A'ata YtrS Stock 12f BROADWAY, N. J. TeltphtM Sector ilZ Doe Ihe public know you It wl! you a Jvertite, Liberty Bonds Ca MmUts Siod ttsJut uwnsinit flcWYoxk JWephono 'Rector 2901. WE HAVE OHIIERS IN, Amer.

Pr. Lt. Coni. Optional Wrt. A iner.

Typefounders Com. Tfd. Carbon Steel (All Issues) Colorado Power Com. Pfd. Eastern Steel Com.

Pfd. InterborotiKli Rapid Transit (Old Stock) Hall Switch Signal Com. Pfd. Kaiifinann Dept. Stores Com.

Pfd. Lehljth Power Securities Richmond Radiator Com. Pfd. Pacific Coast Co. (All Issues) Gas Elec.

(All Issues) Valvollne OH Preferred Western Power Common Winchester Co. (All Issues) KIELY HORTON 40 Wall Street, N. Y. Phone John 6330 GEORGE W. GOETHALS fit INC CONSULTINQ ENGINEERS 4j0 WALL STREET NEW YORK 7 IHVtSrJDXnDSS AND reposes MANAGEMENT AFFSAEALS Klrby Lumber Pfd.

Broadway 7th Ave. Stock Bancitaly Corp. New York Richmond Gas Stock Van Raalte Common Safety Car Heating Lighting Brooklyn City Railroad 5n, 10 tl Second Ave. Receivers Ctfs. Home Telephone of Spokane 5s, 1930 Brooklyn Rapid Transit 4s.

2002 Lexington Ave. Pavonla Ferry 5s, 1993 New York Westchester Lighting 4s, 2004 THEODORE L. BRONSON CO, Memeera Nrw York Stuck Eirhaape ISO Bread way, M. V. Tel.

Ratter TSM Babcock Wilcox Universal Leaf Tob. BRISTOL BAUER 120 Eroadway, New York Phone Rector i59l Grand Trunk Western 1st 4a, 19S0 Virginia Southwestern Contol 5a, 1958 Kean, Taylor Co. Nassau Street Ntw York aim phone Hector 7UBO Chesapeake Ohio Preferred, When Iasaed Chesapeake Ohio Rights New York Telephone Preferred BOUGHT SOLD QUOTED GOODBODY CO. Members New Tork Stock Ezohange IK ore, N. V.

nee. B3 Pateraea. N. J. Maw Herea, Caaa.

PRIVATE WIRE B-itfaaera Beaten iiaara nartrem j-aaeetewa rauiwuaai Tereata Bae heater i WllatlajTlee EQUIPMENTS J.DAYKNAPP 15 BROAD ST-W V. TIL'HAHOVER 821 J. P. CAHILL CO. Member New Tork Stock Exchange LIBERTY BONDS 12 Broadway.