Newspaper Page Text
8 D
ITEARST’S SUNDAY AMERICAN. ATLANTA, GA., SUNDAY, JUNE 1, 1913.
News and Views by Experts of Finance, Industry, Crops and Commerce
ECEIVERSHIP IS
FINANCE, FORBES THIS
French Holders Deceived and Paris
Bourse Threatens Ban on All Se
curities From Wall St.—Thorough
Probe Is Believed To Be Necessary.
By B. 0. FORBES.
NEW YORK, May 31.—America has been
diagramed in the eyes of the financial world by
the sudden bankruptcy of the St. Louis and San
Francisco Railroad, a system comprising enough
mileage to run from San Francisco to London or
Paris, and having obligations of a third of a bil
lion dollars.
American finance, American credit,, America’s
whole reputation have been lowered, for the epi
sode is everywhere condemned as a scandal.
The courts, I understand, are to be invoked
to ferret out the responsibility of the many in
terested parties
Thfafk of Hi Less than six
nssedes agio, French investors
induced to pay solvency
price*-fior $8,000,000 of the com-
bonds on definite assnr-
anee from the president that
maturing obligations would be
met and an official statement
that a net surplus of some $1,-
200,000 had been accumulated in
•even months.
had tJie FYervoTi investors’
the company'i treas
ury# iHi*il llk« a bolt from the sky,
Ohalraen Benjamin F. YoAkom, Pres
ident Benjaunln L. Wlnchell and as-
•oolat»s »u<!denty. without consulting
the bank era, say the latter, ha<l a St.
Louis oourt appoint President Wlnch-
®11 and a friend as receivers.
The fnnds necessary to meet $2.-
150,000 bonds failing: due to-day were
not forthcoming, It was explained.
Stock 8hrlve!» In Value.
The $50,000,000 stock of the. Frisco
road shriveled up to some $2,600 000
In market value, while the 6 per cent
freneml Mon bonds collapsed to 68 and
the 4per oant bond* to 66.
Instantly “protective committee*"
sprang: into exJotenoe, each clamoring:
for the protection of It* own set of
client*. The scramble Is now on; It
Is a case of each committee for Itself
and devil take the hindmost.
I want to offer the engrffeatlon that
»1nce American railroad credit is be
ing: aosaastnated, the Interstate Com
merce ComaTtieslon should e*ek to in
terpose In the interest* of all cred
itors, thus Injuring fair play for
everyone, Bhiropean end American, for
bondholders and stockholders.
The United States need* foreign
capital. We can balance our obliga
tion* only by exporting securities.
But can IDuropean Investors be ex
pected to retain faith In a country
where each ooandels as this are al-
'jowed^ to go on pro bod end unpun-
Paria Issue* Ultimatum.
The Part* Borov** already ha* an
nounced that not one dollar of Ameri
can investment*, not even the New
York City bond*, will be accepted
there unless th* French holders of
Frisco bond* are saved from every
penny of Lose.
Thl# ultimatum ought t© make the
government a] authorities here take
notice.
Rumor* fll! Wall Street that a thor
ough probing of the Frisco System's
operation*. it* numerous purchases of
arubaddiaries, it* various important
contract* and the like, would reveal
ongoing* that would gladden the heart
of th* Now Haven management on
the theory that misery loves company.
' V Monopolistic aspirations and reck
less financing have characterized tho
history of both system*
New' Haven’s rottenness has been
laid bare. I* the Frisco mess to have
a lid plaoed on It by “friendly" re
ceivers and the ruined stockholders
and bondholders forced to pay tbs
penalty of past mismanagement, ac
tual and otherwise?
What have the management, the
roads’ complexity of bankers and the
Interstate Commerce Commission to
•ay about It?
An aroused, Indignant public, at
home and abroad, should expect very
clear explanations and appropriate
action.
Wall 8tr*et Stricken.
Wall Street has never before been
bo sorely stricken.
Commission houses are discharging
half their clerks, one firm has laid off
two-thirds of Its force.
Salaries everywhere are being out.
Firm members are unable to draw
their customary allowance.
Renta are not being earned.
Neither stocks nor bonda can be
sold In even moderate quantity.
The Rt. Louis and Ran Francisco
collapse has Incited nervousness over
other weak roads, such as Rock
Island, Denver and Rio Grando, M.,
K. and T. and Krie.
Th* Other Aspect.
But, bibs* you, the country is not
going to ruin. Turn your eyes from
Wall Street to the rolling wheat and
corn fields of the West und the vast
cotton plantation# of the South.
There, where the nation’s material
prosperity Is made and unmade, mer-'
clful nature Is turning soil into wealth
at a rate the country has not before
known In all Its history.
This is not hyperbole; it Is not
rhetorle. It Is a fact.
The crop prospects all ovst the
United States are most inspiring. And
that, after all. is the axle on which
prosperity revolves.
To insure funds to market the un
precedentedly heavy crops that ure
promised our bonkers will have to
act with great diplomacy.
Our languishing trade, our lifeless
investment markets and even our po
litical fears would be Instantly re
lieved by the adoption of a right cur
rency Mil. We need It
French Commission
Will Probe Incident
PARIS, May 81.—M. D’Allly I>eVer-
neuil, of the Agents DeCliange, who
declared yesterday that American se
curitb-s would probably be barred
from the Paris Bourse in the future
because of the financial disaster
which has overtaken the St. Louis
and Ran FTanesco Railroad, said to
day that a commission will soon go
to the United States to investigate
the affairs of the Frisco and the re
ceivership. Tho commission will be
made up of bankers and brokers. The
reason for the intense feeling here
over the Frisco’s affairs Is that a bond
Issue of the road was sold here not
long ago.
Market Stubborn
When Bears Assail
Prevalent Prices
“Trade Buying Versus Speculative
Selling” Is Explanation Given by
New Orleans Experts.
NEJW ORLF1ANR, May 31.—Bearish
Interests in the cotton market have
had a hard time trying to depress
jrrloes the past week. Weather condi
tions were favorable, and crop advices
were more encouraging than for some
weeks post, yet the market khowed
stubborn resistance to the hammering
and as soon as pressure was with
drawn, Immediately r^ncted
Students of the cotton market say
that it is a < a$e of trade buying
versus speculative selling. Sentiment
1s generally bearish, and the specu
lative element in the South 1# guided
bv this Influence. Should crop con
ditions continue to Improve this sen
timent might induce sufficient specu
lative selling to depress prices to the
level of 11 cents for the new crop
contracts. Whenever the market gets
around lhat level, however, trade
buyers Come In and absorb all th$
contracts,’ and when the shorts at
tempt to cover they find the supply
of contracts on the market so smAll
that a little bidding suffices to cause
an advance of 20 points or more.
Trade buying Is not an unusual
thing at this season of the year. The
mills especially the European mills,
which make contracts for ten to four
teen months ahead, always begin to
hedge their commitments by pur
chases of new crop contracts in the
spring and early summer, when, as
a rule, speculators on this side are
Belling on crop prospects. The for
eigners are shrewd enough to re-alize
fhat brilliant crop prospects Burn us
ually shattered before the planting
season 1* over; even If the yield of
th© orop 1s not materially reduced,
a crop Bears of large proportions de
velops flomt time or other during the
summer, and when the large short
latsrasts attempt to cover, an advanoe
of one or two cents usually takes
place. Thus the foreign trade buyer
seldom ever loses anything on his
contraot purchases, and when he Is
able lo buy the actual cotton he can
then sell out his hedges and depress
the market at a*time when his object
Is to buy spots as cheaply as possi
ble.
Tho trade buying this year has been
on an unprecedented scale. A promi
nent Liverpool firm, In a letter Just
received in this market, explains the
situation by saying that sales of
cloths ahead by English and Conti
nontal spinners have been ah©nxl of
the average of many years past, and
hence, the larger hedge requirements
In the way of contract purchases.
The consensus of opinion here is
that tiie average condition shown by
the Bureau Monday will be around
83. Th© lowest condition figures are
expected from the Atlantic* and from
Texas.
Going Away?
Y OU WILL SAVE TIME, AVOID
delays, have your money always
safe, and practically enjoy the many
benefits of having a bank account in every
country in which you may travel, if you
carry with you a Letter of Credit or Trav
elers’ Cheque. It will enable you to know’
exactly the relative worth of your paper
in foreign countries, and enable you to
keep an accurate account of your ex
penditures.
And yet the cost is very small. A
mere nothing compared with the innu
merable benefits they afford.
We will be glad to have you come in
and talk the matter over with us.
Atlanta National Bank
The Oldest National Bank
in the Cotton States
JOSEPH A. M’CORD
FOR ZONE SYSTEM
Congress Will Not Hear of Central Bank, Re
gional Plan Is Next Best, Expert Writes.
Joseph A. McCord, vice president of the Third National Bank of At
lanta, a member of the monetary commission, which was picked from
men who had gained national recognition at. expertt, ditcuttet herewith
the nerdt of the United States at to banking and currency reforms. The
United States Senate Hanking and Currency Committee hat tent a Ust
of thirty-two guctUont to bankert throughout the nation t tee,king their
views. The tubject it next to the tariff in popular interett, and many
business men believe it exceeds the tariff in importance. The present
Congress mutt do something. Mr. McCord's discussion of the problem,
therefore, is timely ansi valuable.
By Joseph A. MoCord.
On a recent visit to W r a«hington, I learned that whatever our
views may be relative to the Central Reserve Association, or Cen
tral Bank, that neither of these would be acceptable to those who
had in charge the currency legislation of the present Congress;
therefore, it is useless to discuss what we would prefer in the
way of currency legislation.
Eliminating the Central Bank
or Central Reserve Association,
I think the best suggestion is the
Regional Reserve Association, or
what is known as the Zone Sys
tem.
I find that the administration and
the loading members of the House and
Senate at Washington are disposed to
take up legislation along the line of
the Regional Reserve Association, or
the Zone System, say of fifteen zones,
located In various sections of the
United Rtates. This could be made
very satisfactory and agreeable, and
of considerable value to the country,
with proper safeguards surrounding
It, if the banks were allowed to place
part of their reserves In Central Re
serve cities.
However, If those In authority In
sist on all of the reserves being kept
In the banks’ vaults and In Regional
Reserve associations, this would
practically stop the wheels of com
merce and put the banks throughout
the country In a position where they
could not discount for their customers
because they could not avail them
selves of their reserves for the bene
fit of extension of credit without con
tinually being under discount with
the Regional Reserve Association,
which no bank would care to be.
I believe that those in position to
handle the legislation have discover
ed that such a course would be very
detrimental to the business* interests
of the country, and that they will be
disposed to divide up the reserve be
tween the central cities and the Re
gional Reserve Association. If proper
facilities are provided, whereby one
Regional Reserve Association may
discount for another, or so that funds
credited in one zone may be placed
to the credit of a bank In another
zone, this will go a long way toward
carrying out the plans suggested by
the American Bankers’ Association.
After this has been put In force,
It will be readily seen that the Cen
tral Reserve Association will be nec
essary for the issuance of currency,
for the discount of commercial paper,
the handling of foreign bills of ex
change and foreign commercial drafts.
While the present Congress possibly
would not listen to the establishment
of a Central Reserve Association at
the present time, it would naturally
come ln the course of business events
that would force it upon the country.
New Crop Progress
Absorbs Attention
News From Fields Supplants Gossip
of Trad© Circles and Sales of
Old Remnant.
MEMPHIS, May 31.—DlBCU«sion of
th© condition of th© new crop has
been the main occupation of the cot
ton trade ln this section during the
pajft week or so, supplanting in Im
portance the situation in trade cir
cle* ajid the disposal of the unsold
remnant of the old crop. There has
been somewhat of a lull In the latter
and sales have been restricted to fill
ing of commitments that could not
well be deferred. In this center busi
ness has been small and the unsold
portion of the stock is approximately
what the total was a year ago at’
even date.
One feature of the strength dis
played ln the future market has been
that large spot Interests have been
giving support and much of the ab
sorption of new-crop offerings has
come from representatives of the for
eign spinning Interests, thus Indicat
ing a belief that present price levels
are not unreasonable. The reduction
of the New York stock to about 40,000
bales, of w hich only about 60,000 are
under certificate and are thus avail
able for contract delivery, has left
short sellers of July and August with
but little protection ln case there
should be bullish activity agniust
them.
Prices in the belt continue at a
level that means heavy loss to any
who might attempt contract deliver
ies in New York. There is an idea
that manipulative tactics are largely
responsible for the recent action of
the market 1n the face of favorable
news as to the new crop, though the
existence of an extensive short inter
est created by a widespread effect
to discount bearish news ln advance
when pessimism was so rampant, has
made it possible for the profession
als to thus dominate the speculative
market.
The usual period of trying to dis
count the Government crop condition
estimate has been experienced during
the week, and the offerings from pri
vate sources have been normal. These
reports have prepared sentiment to
expect tho official guess on Monday
morning to be around 82 to 84 per
cent for condition on May 26. Such
would compare with 78 9 a year ago,
87.8 the year before and a 10-year
average of 79.9. While the Govern
ment will not Issue Its report on acre
age until July 1 or thereabouts, sev
eral private estimates are at hand,
averaging slightly over 8 per cent in
crease compared with the official re
vised figures for the past season.
Such would bring acreage very near
ly to what it was two years ago,
when the crop proved a record one
Information reaching here during
the week from all sections of the bolt
said the crop was faring satisfac
torily, the only complaint being that
night temperatures were abnormally
low. thus delaying growth and germi
nation and causing some injury to
the tender plant. Every section, ex
cept a small portion of Southern and
Southwestern Texas, has had plenty
of rain and the thing now needed
is warm weather so that stands can
be had and proper cultivation given.
News From Kansas
Decidedly Bullish
Bountiful Rains and Ensuing Lower
Temperatures Needed to Prevent
Further Deterioration.
By JOSEPH F. PRITCHARD.
CHICAGO, May 31.—Not only have
the “crop killers" sounded the alarm of
serious deterioration of the winter wheat
plant ln Kansas and States bordering on
that section, but nearly all the grain
and elevator concerns ln Kansas have
had more or less to say about the crop
going backward. They have volunteered
the opinion that unless there are boun
tiful rains soon which bring lower tem
peratures, the outcome of the harvest
will be entirely different from that
which was expected a few weeks ago.
One of the best authorities in the
wheat belt says that ln Southeastern
Kansas, parts of Oklahoma and South
western Missouri, the long drawn out
dry weather has caused the wheat plant
to show thin growth as well as a sickly
color and many localities do not promise
much over a normal yield, where an ex
traordinary crop was promised. It was
also said that In the greater part of the
hard winter wheat region the outlook la
for an average crop.
Grain quotations:
Furnace Repairing
Curtails Production
Southern Make of Pig Reduced for
June—Steel Market Shows
Better Conditions.
Previous
High.
I<ow
Close. Close.
WHEAT—
May....
#2%
, 91%
92
91%
July....
92%
92%
92*4
9l4
Sept....
92%
91 %
90 74
Dec
9414
95 4
94 Ms
924
CORN
May....
69
57%
69
58 %
July. . . .
57%
57%
57%
57 >4
Bvpi
58
68 V4
B7’J
Dec
69
58%
69
66
OATS-
May....
431b
42^
48
42
July....
39 >4
38*4
39
38%
Kept....
38%
38V 4
38%
38
Dec
39%
39
39
38%
PORK
May....
20.50
20.37 Ms
20.50
July....
20.30
20.26
20.27^
20.25
Sept....
19.90
19.85
19.85
19.87%
Lard—•
May . . .
11.26
11.20
11.20
11.20
July....
11.12
11.07
11.07
11.17%
Sept....
RIBS
11.22%
11.20
11.20
11.20
May.
12.76
12.75
12.75
12.76
July....
11 85
11.72H
11.72 Va
11.76
Sept....
11.4214
11.35
11.87^5
11.40
CHICAGO CASH QUOTATIONS.
CHICAGO, May 31.—Wheat: No. 2 red,
1.01(011.04^; No, 3 red, 96(0)1.00; No. 2
3 spring, 91 (S'92.
Corn—No. 2, 68
No. 2 white,
9Va(R59^i; No. 2 yellow, 68(3)6814; No. 3,
57^4^ 68; No 3 white, 69 (u 5^*4; No. 3
yellow. 67 s -* (a 68; No. 4. 57 **@57 *4; No. 4
white, 58(s2l>8 , 4; No. 4 yellow.
Oats—No. 2 white, 41(0)41Vi; No 3
white. 39*4®40. No. 4 white, 38^<&39;
Standard, 40^@41.
THE WEATHER.
Conditions.
WASHINGTON, May 31.—With the
exception of local showers in the Ohio
Valley, Tennessee and North Carolina,
the weather will be generally fair to
night and Sunday east of the Mississip
pi River, with no temperature changes
of consequence.
General Forecast.
Following is the general forecast until
7 t>. m. Sunday:
Georgia Fair to-night and Sunday
Virginia—Generally fair to-night and
Sunday.
North Carolina—Local showers to
night or Sunday.
South Carolina. Florida and Alabama—
Fair to-night ar.d Sunday.
Mississippi—Fair to-night and Sunday
Tennessee—Local showers to-night or
Sunday.
BIRMINGHAM, ALA., May 31.—
Pig Iron manufacturers in the South
ern territory can tell nothing as to
what the future is likely to bring
forth. At present the iron market
continues quiet. The cast iron pipe
makers are In need of iron but ap
pear to be waiting perhaps for still
lower prices. The iron quotations in
the South are now about at $11.50
per ton, No. 2, Foundry. Some iron
is being shipped for export, the quota
tions being low enough. Furnace re
pairing starts in next week. This
means that there will be a curtail
ment of production throughout the
South.
It is estimated that the production
will fall off between 30,000 and 46,000
tons ln June, as compared to what
the make was in April and May.
Figures will be given out during the
coming week as to production in
May. Two of the furnaces making
basic Iron will have to shut down for
a while. There is a healthy accumula
tion of iron ln the Southern territory
and the announcement Is made that
all orders will be cared for promptly.
It is figured there is as much iron
in furnace yards in this section of
the country as was to be seen here
at this time a year ago.
The steel market still is active.
The several plants are doing well In
the way of production and good prices
prevail. While the demand for steel
wire has fallen off there is a good de
mand for rod. The Tennessee Coal,
Iron & Railroad Company is making
rail at a lively pace with no accumu
lation. There Is a good demand for
fabricated steel. Some little rail is
being shipped to Southern countries.
Tie making plants in the South are
buying some steel ln the Birmingham
district while other shapes of steel,
rod ln particular are in good demand.
Foundries and machine shops re
port quietness. Charcoal Iron com
mands $23 and more per ton. Cast
iron pipe plants are against melting
pig Iron in quantity but tho trade is
not yet what it was expected it would
be at this time.
CHICAGO GRAIN CLEARANCES.
Clearances of two days of wheat to
tal 1.090.000 bushels: flour, 24.000 bar
rels; corn. 1,000 bushels, and oats 6,000
bushels.
Wheat and flour equaled 1,217,000
bushels.
KEEPS DOOR OPEN.
At lust has come a device that will
keep a door open at any desired point.
It is made of a flat piece of steel, bent
in the form of tongs, with a short,
strong spring to supply the required
upward pressure to keep the door
from sliding. A projection at the
end of the shorter leg prevents the
device from being dislodged easily.
Georgia Cotton Oil
Men Meet Monday
Members of the Cotton Seed Crush
ers’ Association of Georgia, w r ho have
gathered In Atlanta from the northern
section of this State, leave to-night on
a special train over the Central of Geor
gia Railway, for Atlantic Beach, Fla.,
where Monday and Tuesday their ninth
annual convention will be held. Cars
will be picked up at Macon earning the
South Georgia members of the associa
tion.
P. D. McCarley. secretary, has an
nounced the program. An address of
welcome to the association will be made
by H. M. Stanford, to which a response
will be made by B. L. Bond, of Royston,
Ga., vice president.
F. W. McKee, of Atlanta, president,
will deliver his annual address and will
be followed by Andrew M. Soule, presi
dent of the State College of Agricul
ture at Athens.
At th© afternoon session, Thomas C.
Law, an Atlanta chemist, will read a
paper on "The Quality of Crude Oil,"
and will be followed by H. C. Brown, of
Augusta, with an address on "Proper
Grading of Cotton Seed for Manufactur
ing Purposes." E. E. Pomeroy, of At
lanta. will deliver an address Tuesday
morning, and will be followed by Joel
Hunter, on "Fallacies ln Seed and
Crushing Costs.” Dr. Peter F. Bahnsen,
State veterinarian, will make the con
cluding address.
The Georgia Association is the second
largest in the South.
OF BIG
NEAR DECISION
Grain Case, Tallulah Falls Litiga
tion, Tariff and Money Re
form Are Pending Issues.
Breeds New Cotton
Maturing Before
Boll Weevil Season
E. L. Worsham Successfully De
velops Variety Resisting Wilt and
Black Root, Yet Growing Fast.
, By M. A. ROSE.
Legislation and litigation with vital
bearing on the future of business and
finance have drawn more attention
during the week than any actual
change in the drift of Immediate af
fairs.
Indeed, the trend of business seems
little altered. Consumers are buying
from retailers, retailers from Jobbers
and jobbers from brokers or manu
facturer? in the same restricted way
that has been noted since the begin
ning of the year. There is the same
eagerness on the part of borrowers,
and the same caution on the part of
lenders.
“If I could get hold of a barrel of
cash I’d make this season pay well
enough to enable me to retire," sighed
a wholesaler the other day. “My
country dealers are begging for sup
plies and offering the most heavily
gilded kind of collateral for credit. If
I had the cash to buy all I could sell,
take their notes and collateral, and
wait for the crop to enable them to
pay out, I’d get rich this year.”
But he hasn't the cash, and neither
has anyone else, to go into such a
venture.
Four Undecided Factors.
With business restricted by tight
money, then, the attention of business
and financial circle? Is attracted, un
divided, to two court actions which
will have a great effect ln this terri
tory, and to the two most Important
subjects under consideration by Con
gress, which affect the Southeast ln
ns great or greater measure than the
other sections of the nation.
The Nashville grain case now be
fore the Supreme Court of the United
States and the Tallulah Falls case
tried in the Superior Court at Clayton
are the two Important pieces of liti
gation, and, of course, the tariff and
the currency reform bill are the na
tional questions.
A decision was predicted for last
Monday ln the Nashville grain case.
For years the railroads have ex
tended a privilege to Nashville grain
and grain products dealers which has
been denied to Atlanta.
Stripped of technicaliteis, the sit
uation is that Nashville dealers are
allowed to buy grain or flour at any
of the Ohio or Mississippi River
crossings (Memphis, Cincinnati or
Louisville, for instance); move this
grain to Nashville; unload it and put
it into elevators there for mixing,
grading, drying and sacking; and at
any time within six months rebill it
to any point In the Southeast, paying
only the through rate from the river
crossing to the point of destina
tion.
How It Works Out.
Atlanta dealers, on the other hand,
pay the through rate from the point
of origin to Atlanta; then must pay
the local rate from Atlanta to desti
nation.
A? this works out, it amounts to $12
to $18 per car difference 1n freight Vn
favor of Nashville, when shipping to
such points a-s Griffin and Macon.
Indeed, Nashville dealers can deliver
flour in East Point, at Atlanta’s city
limits, cheaper than can Atlanta
dealers.
Atlanta won its case against the
carriers in the hearing before the In
terstate Commerce Commission, lost
before the Commerce Court and ap
pealed to the Supreme Court. If
Atlanta wins, the railroads either
may cease the practice at Nashville
or extend It to Atlanta, Whichever
they do, the result will be beneficial
to Atlanta.
Atlanta does a gTa.ln and flour busi
ness conservatively estimated at 40,-
000 cars a year, and believes this will
be enormously Increased by a favor
able decision. Translated into dol
lars, this Is a staggering sum.
Local Stocks Affected.
The Tallulah Falls case is being
watched because It Is certain to affect
the price of Georgia Railway and
Power common and second preferred
stocks, which have been the moat ac
tive feature of the local stock market
recently, and which are held by al
most everyone ln Atlanta who holds
any stocks at all. The decision of
the lower court was ln favor of the
power company, but this decision Is
not final. An appeal is certain.
Georgia cotton mill men have been
presenting their views of the cotton
schedule before the Senate subdivi
sion of its Finance Committee.
In general, they are anxious for
greater distinction between the grays
and colored goods, and between the
plain and fine goods. Reports from
Washington indicate that they made
a strong appeal.
On the surface, the South is not
much affected by the cotton sched
ule as framed and passed by the
House. The fine weaves are the only
grades slashed, and most of the out
put ln the South is coarse numbers.
Fear an Overproduction.
Where the shoe pinches is in the
fear that spinners of fine numbers
ln the East, robbed of tariff protec
tion. will turn to coarser yarns, thus
Increasing the South's competition
and perhaps bringing about overpro
duction.
When the tariff schedules first were
made public leading cotton and wool
en mill men of the State, in interviews
given to The American, expressed lit
tle concern, and nothing bordering on
alarm. Either they have awakened
suddenly since that time, or they are
engaged ln the very human occupa
tion of trying to get the best and the
most that they can.
Southern bankers were among the
first to plead for currency reform,
and have been among the stanchest
advocates of a better system ever
since.
The “catechism” of 35 questions,
sent out by the administration to
national bank presidents all over the
country, therefore are much discuss
ed. and from the South the President
and his advisers may expect some
interesting and instructive replies.
HANDWORK FAVORED.
Embroidered waist fronts are com
ing in for a good share of success this
season. Some excellent handwork of
this kind done in the Philippines is
Shown by a local importer.
E. Lee Worsham, State Entomolo
gist, in his annual report to the Com
missioner of Agriculture, submits a
plan for circumventing the Mexican
boll weevil and nullifying in large
measure the ravages of that pest,
which is expected to enter Geerrgia
by way of the South western counties
this season.
Mr. Worsham's plan Is to cultivate
a variety of cotton that will mature
before the weevil’s season of opera-
tlon, which is late summer.
The entomologist has perfected a
new variety of cotton which he thinks
will serve perfectly the purpose he
has ln mind, and annonnees that he
will be ready to distribute this season
a sufficient quantity of seed for a
thorough test next fall.
The trouble with early-maturing
varieties of ootton in Georgia hereto
fore has been their susceptibility to
those fatal cotton diseases, “wilt” and
“black root.”
By crossing successfully a good,
substantial variety of ordinary cot
ton with a strain of Egyptian, Mr.
Worsham has perfected a new and
hardy variety of early-maturing cot
ton, perfectly adapted to Georgia cli
mate and proof against “wilt” and
“black root.”
The Department of Entomology
does not olalm that this new cotton
will entirely nulligy the bell weevil’s
powers of destruction, but it does
think the new cotton will go a long
way in that direction, and that, more
over, the plan is capable of amplifi
cation and further improvement.
In his report to the Commissioner
of Agriculture Mr. Worsham calls
attention to some other work being
carried on by the Department of En
tomology. such as the scientific and
intelligent destruction of fruit de
stroying insects and worm*, the in
spection of apple and peach trees for
various diseased conditions and the
remedying thereof, the encouragement
of farmers' meetings throughout the
State and the supplying of helpful
literature wherever it is desired.
When It is realized that the de
structive work of various Insects al
ready costs the farmers of Georgia
some 530,000,000 annually, and that
the boll weevil aotually Is at Geor
gia's very front door, the importance
of the Department of Entomology Is
readily seen.
The Department feels, however, that
it could do even better work if the
Legislature would provide more am
ple funds, and to that end an addi
tional appropriation will be asked of
the incoming General Assembly.
Greatest Corn Crop
In State’s History
Is Present Outlook
Week Brings Improvement in All
Georgia Fields—Fall Sown Oats
Better Than Expected.
ATHENS, GA., May 81.—Agents in
various portions of Georgia reporting
to the Georgia State College of Ag
riculture, state that the week marked
continued improvement in crop condi
tions. Cotton planted late has come
up to a good stand while that which
was planted earlier Is poor but grow
ing thriftily since the rains
Com is showing up well. The poor
stand In places Is being recouped by
replanting, so that everything Is now
favorable to the largest corn crop
the State ever has produced, the com
acreage being larger than ever be
fore and the soil preparation good.
Harvesting oats has been In pro
gress through Middle and North
Georgia. All reports are to the ef
fect that the yield Is turning out bet
ter than was expected. Only the
spring sown oats have suffered to any
extent. Wheat is fine in all counties
reported. Melons are fruiting in ex
cellent shape after the rains Pas
tures and truckings have also good
showings as a result of the showers.
Judging from reports a large part
of the oats fields will be sown to
peas or velvet beans, though some
will go to com. The success of fall
sown oats so clearly demonstrated
in contrast to spring oats Is leading
the farmers to plan to sow oats be
tween cotton rows this fell. The
fields which nave been ln oats and
peas this year will go to cotton next
year.
SEES POLITICflL 1
CRISIS AHEAD
E. P. Ripley, of Santa Fe, Says
House and Senate Are Too
Radical; Wilson Untried.
BY BOER8JANER.
E. P. Ripley, president of the Santa
Fe Railroad, is distrustful of the
country's political future. He has no
downright fear that the United States
Is heading for disaster; the tendency
may be checked in time to prervent a
catastrophe. There are certain signs
which make him hopeful that the
headlong course will be stopped, hut
he is far from sure.
The House and the Senate, in hla
view, are dangerously radical. Wil
son, to him, Is as yet an unknown
quantity. The one compensating fac
tor in Washington is that which la
relative to the railroads. He believes
that the Interstate Railroad Commis
sion is less perilous than It was, say,
a year ago.
Mr. Ripley has Just returned from
California. The president of the San
ta Fe is gradually recovering from
an acute attack of indigestion, which
occurred seven weeks ago in Califor
nia.
Thinks Majority Unsafe.
“I auppose I have unwittingly ac
quired the reputation of being a pes
simist,” said Mr. Ripley. "1 am per
fectly conscious of not agreeing with
the majority of people who elect leg
islators, hut long experience os a rail
road man and as an observer of pol
itical tendencies impels me to say
that the United States of to-day, In
Its general political aspect, that is to
say, in Its political trend, is not at all
wha t the founders of this country in
tended.
“It was not the intention of the
framers of our Constitution to have
the crowd rule. The intelligent and
experienced minority were to rule;
men who by their Intellectual gifts
and by their statecraft were to guide
the country. That idea wae kept up
for many years, but of late the men
have been elected to office who sim
ply do as the crowd dictates. The
editors, and not the elective, govern.
“History Is instructive. It tells us
that whenever the mob becomes para
mount then was the beginning of dis
solution.
Lauds Commission Form.
“I am glad to qualify, however, my
general view, for here and there I see
signs of the return of the scheme of
government by the fit. I mean by
this that certain communities have
resorted to government by commis
sion, instead of government by muni
cipalities, who are entirely swayed by
the crowd. The signs, true, are few
and somewhat indistinct. Let us
hope, however, that these are the be
ginning of betterment in the right di
rection.
“I think the appropriation bill for
funds for the prosecution of trusts
passed by the House and Senate is
extremely bad legislation; a measure
that provides for prosecution of one
class in a community ana absolves an
other class Is tinged with demagog-
ism. The measure, in effect, was ve
toed by Taft. Wilson will give us a
better Idea of his statesmanship when
the bill comes to him. By his action
in the matter we shall be able to Judge
him in a very' Important respect.
"However, there is much to be said
in Wilson's favor. His tariff hill I
Indorse; also the Income tax. His
currency legislation promises to be
beneficial and these are features that
extenuate much that is disquieting ln
the political situation.
Expects Rate Increase.
“I believe the Eastern roads will be
accorded a small increase ln freight
rates, for which they have applied.
Heaven knows that they need it.
When a body like the railroad com
mission is in office .for any length of
time they cannot help but perceive
that there are two sides to every cor
poration question. The commission la
beginning to see the other side and 1
trust that they will have the cour
age of their perceptions.
“It is, of course, unfair to argue
that the commission has allowed as
many increases as they have favored
decreases. In number this may be
true, hut in import it is very untrue.
The Increases have been small in im
portance and ln significance, compar
ed with the decreases.
ESTABLISHED 1880.
NATIONALIZED 1908
THE
AMERICAN NATIONAL BANK
ATLANTA, GEORGIA
Capital and Surplus $1,150,000
Deposits - - $3,500,000
WILLIAM L. PEEL, President.
R. F. MADDOX, Vice President. T. J. PEEPLES, Cashier.
J. P. WINDSOR, Asst. Cash. J. F. ALEXANDER, Asst. Cash.
Depository of the State of Georgia, County
of Fulton and the City of Atlanta
We invite new accounts—both commercial and savings
and extend a service adequate for every legitimate requirement
and satisfactory to the most exacting minds. ^