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IIEARST’S SUNDAY AMERICAN, ATLANTA, C.A., SUNDAY, JUNE 1. 101T
13 D
News and Views
Experts of Finance, Industry, Crops and Commerce
OF BIG IMPORT
NEAR DECISION
Grain Case, Tallulah Falls Litiga
tion, Tariff and Money Re
form Are Pending Issues.
MONETARY REFORM
SEEMS IN PROSPECT
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
facturers 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 circles Is attracted, un
divided, to two court actions which
will have a great effect In this terri
tory, and to the two most Important
subjects under consideration by Con
gress, which affect the Southeast in
as 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 In 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.
As this works out, it amounts to $12
to $18 per car difference In freight In
favor of Nashville, when shipping to
such points as 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 gTain and flour busl-
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 most ac
tive feature of the local stock market
recently, and which are held by al
most everyone in Atlanta who holds
any stocks at all. The decision of
the lower court, however, will not be
final in this case.
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 in the South is coarse numbers.
Fear an Overproduction.
Where the shoe pinches is in the
fear that spinners of fine numbers
in 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 in 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
Reason. Some excellent handwork of
this kind done in the Philippines is
shown by a local importer.
Bryan Not Hostile and Other Powers of Ad
ministration Seem Favorable.
SEES POLITICAL MONEY; LOSES
NEW YORK, May 31.—While stay
ing in the background for diplomatic
reasons, the leading New York City
bankers are keeping in as clo^e touch
as possible with the progress of cur
rency reform prospects at Washing
ton. The latest advices are under
stood to be encouraging. The influ
ences that are preponderant with the
administration are those which favor
banking and monetary legislation of
the conservative and safe kind.
It is not known in just what shape
the bill will be presented which is now
undergoing the scrutiny of the Dem
ocratic leaders in Congres, but well-
informed bankers feel satisfied that
its essential features will be those
which have been largely agreed upon
In banking discussions the country
over. New names may be given to
provisions that are borrowed from the
so-called Aldrich plan, but the ideas
of concentration of available reserves,
more or less central control, elasticity
of the currency, and wider bank pow
ers are understood to be preserved
in the administration program.
Of much importance in the shap
ing of a measure which will restore
confidence In the business and invest
ment community is the attitude taken
by W. J. Bryan. It is understood
that the Secretary of State is holding
himself rigidly aloof from active par
ticipation In the conferences over the
proposed financial bill.
The course pursued by President
Wilson Is encouraging the EMt<th
banking community in believing that
practical results will be rendered as
regards currency reform at the ex
traordinary session of Congress. The
course is the devotion of the admin
istration’s entire energies upon one
question at a time. All the “punch”
of the administration is now concen
trated on getting its tariff policy
through. Nothing is allowed to inter
fere with the fight inythat direction.
But while concentrating to work on
tariff reform, Mr. Wilson and his
Congress advisers still find time to
thrash out the questions relating to
a banking bill and to pave the way
for taking it up promptly as soon as
the Underwood tariff schedules be
come law r .
It Is this faculty of practical pro
cedure that the President has devel
oped so early In his administration
that lends confidence to the financial
interests that improvement in cur
rency conditions will be achieved In
the first year of Mr. Wilson’s tenure
of office as well as the tariff revision
he considers the primary work at his
bands.
COTTON OIL EXPORTS
SHOW FALLING OFF
Large Olive Crop or Big Year for Milk in Bel
gium May Affect Shipments Adversely.
E. P. Ripley, of Santa Fe, Says
House and Senate Are Too
Radical; Wilson Untried.
OOD-LOT SALES
ARE INCREASED
Quotations on Ten-Share Lots
Now Are Used on Ticker Under
Certain Conditions.
NEW YORK, May 31.—Within the
short period since the Stock Exchange
acceded to the request of several odd-
lot specialists and directed that on
both the noonday and closing; list of
quotations sent out by the ticker
where the 100-share quotation is 5
per cent or more apart, the 10-share
quotation may be substituted :f
closer; odd-lot trading has received a
pronounced stimulus.
The low prices at which stocks are
selling have attracted bargain hunt
ers, and brokers who specialize in
small lots agree that business :n
this department has increased all the
way from 10 to 25 per cent in the past
three or four months.
The odd-lot buyer has a peculiar
relationship to the Stock Exchange.
He is regarded as of far greater im
portance than the trading customer
who buys and sells speculatively and
is concerned with crop news, railway
earnings and industrial activity only
as bearing on day-to-day movements
of the market.
The Ultimate Consumer,
The trading customer, -dipping ir
regularly in and out of the market,
is naturally of particular importance
as a producer of commissions, but the
odd-lot trader in nine cases out of ten
is an ultimate consumer, the man who
stows away in the upper right-hand
pigeonhole of his office safe the ten
shares of Reading or Steel or North
western preferred which he has pur
chased because he believes that tne
conditions which have lowered prices
will pass and that his investment will
pay him more than the savings back
or more than it would earn if put
back into his own business.
The odd-lot buyer reduces the
floating supply of securities and is an
economic factor of greater importance
than the small scale speculator who
in the course of a year may buy and
sell many times the number of shares
which represent the purchases of the
odd-lot man.
Exchange Favors Him.
For this reason the Stock Exchange
has sought always to encourage and
protect the odd-lot buyer. Such rules
as have been made for his benefit
represent all that has ever been asked
in his behalf, and it is safe to say
that if any suggestion can be made
which will encourage him still fur
ther and safeguard his interests even
more than they now are, the govern ■
ing committee of the Stock Exchange
will enact the necessary legislation
without hesitation.
One of the earliest steps taken to
protect the small trader was the
adoption of the low share unit of
trading, the odd-lot Investor was then
only hanging on the fringes of the
market and was willing to pay the
1-8 more than the market to sell at
1-8 under. The investor who put
stocks away then was usually in po
sition to purchase 100 shares. Then
in March, 1910, the rule was adopted
which ended the practice of breaking
down a market by offering stock in
large blocks below the bid price.
Stop Bear Hammerinp.
Where a number of bids on a cer
tain stock might be in at, say, 75,
it was a practice to break the mar
ket by offering several thousand, ”a 1
or none,” at 1-8 or 1-4 below the
bids. Under the ruling then adopted,
the seller who offered several thou
sand shares was required to accept
all pending bids for 100 shares or
more before attempting to offer stock
below that price.
The practice of exacting 1-8 more
from the 10-share or odd-lot buyer
and of forcing him, to accept 1-8 less
when he sold was ended, and the
small investor is now on the same
basis as the man who buys 1,000 or
10,000 shares at a time.
A BIG MELON.
NEW YORK, May 31—John D.
Rockefeller, who at the time of dis
solution of the Standard Oil trust
got one-fourth of the $15,000,000 stock
of the New York company, and who
is believed not to have sold eny of
it since, receives a handsome melon of
$15,000,000 more stock by the increase
of the company's capital to $15,000,000.
If the new stock has a value of $150
a share, this little disbursement to
John D. will be worth $22,500,000
real silver or gold dollars.
HSETTLERS
Wealth of 140,143 New Residents
From U. S. Placed at $1,000
Each in Budget Report.
OTTAWA, ONT., May 31.—In his
budget speech in the House the Hon.
W. S. White reported the number ot
immigrants who entered Canada from
the United States during the last
fiscal year.
There were 140,143 entered and
their Intention of permanently set
tling was shown by the fact that they
brought with them capital and effects
to the value of $140,000,000.
Far East Leading
Producer of Rubber
Brazil Is Passed for First Time in
History—Reduction of Export
Tax Recommended.
For the first time in history the
crude rubber crop of the Far East wl$l
exceed that of Brazil this year, ac
cording to estimates made by experi
enced growers and traders. The fig
ures are placed at 54,000 tons for the
Eastern countries, and 52,000 tons for
Brazil, Including Bahia and Ceara.
In an endeavor to conserve the rub
ber Industry of Brazil and to lessen
the cost of production, a group of cap
italists and steamship owners in 1911
sent a commission, In charge of C. E.
Akers, to the Far East. Accordirg
to Consul General J. G. Ray, Rio de
Janeiro, the report of Mr. Akers shows
that rubber is already being pro
duced in parts of the Orient at 30
cents (gold) a pound, and bids fair
before long to be produced in that
part of the world generally at the fig
ure. Against this is a cost of pro
duction in Brazil of 72 cents. Mr.
Akers advises a 75 per cent reductl >n
in the export tax levied on this co n-
modlty, which is now 19 per cent at
Manaos and 22 per cent at Para, to
help lessen this difference. He also
suggests the importation of 50,000
Chinese coolies into Brazil, and the
hiring of a number of Malaysian
planters to instruct the Brazilian
collectors in modern methods of tap
ping.
The entire cost of carrying out the
proposed scheme would be approxi
mately $5,500,000.
Chemical National
Drops U. S. Funds
Notifies Treasurer it Wants No Gov
ernment Deposits Since Inter
est Is Demanded.
The Chemical National Bank of
New York City' has notified the
Treasury Department that it wants
to be relieved of Government deposits
of $150,000. This is the result of Sec
retary McAdoo’s order that national
banks must hereafter pay 2 per cent
on Uncle Sam’s money.
The Chemical is the first institution
to ask Mr. McAdoo to take his deposit
elsewhere. Other New York banks
are expected to do so. They say they
will lose money if they pay 2 per cent
interest on Government checking ac
counts.
The Chemical says that for over
80 years It has never paid such in
terest and doesn’t want to begin now.
It explains that It has plenty of de
positors whose balances are larger
than Uncle Sam’s and are much less
trouble. Besides, It does not want to
discriminate among depositors.
The banks here figured that they
will lose from $166.17 to $861.97 on
each $100,000 of Government money.
Country banks, which do not keep so
large a reserve and seek prestige, are
taking $10,000,000 which the Treas
ury Department is now' banking.
KEEPS DOOR OPEN
At last 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.
BY BOERSI AN ER.
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 prevent a
catastrophe. There are certain signs
which mak? him hopeful that the
headlong course will be stopped, but
he is far from sure.
The House and the Senate, in his
view, are dangerously radical. Wil
son, to him, is as yet an unknown
quantity. The one compensating fac
tor In Washington Is that which Is
relative to the railroads. He believes
that the Interstate Railroad Commis
sion is les§ 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 suppose I have unwittingly ac
quired the reputation of being a pes
simist,” said Mr. Ripley. “I am per
fectly conscious of not agreeing with
the majority of people who elect leg
islators, but long experience as 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
what 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 was 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 crow’d. The signs, true, are few
and somewhat indistinct. Let us
hope, how r ever, that those 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 and 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 bill I
indorse; also the income tax. His
currency legislation promises to be
beneficial and these are features that
extenuate much that is disquieting in
the political situation.
Expects Rate Increase.
“I believe the Eastern roads will be
accorded a small increase In 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 is
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, but in import it is very untrue.
The increases have been small In im
portance and in significance, compar
ed with the decreases.
“Obviously, the railroads cannot go
on Increasing their wages and paying
higher prices for their material with
out compensatory measures the other
way. Should this disproportion con
tinue without relief in the way of
freight increases it is inevitable that
some, if not many, roads must be
operated by receivers.”
Good Stocks Show
Increased Yields
Twenty Active Industrials and Rails
Yield 6.196 as Against 6.06 at
Low Point of 1911.
NEW YORK, May 31.—The higher
interest that New York City has been
obliged to pay draws attention to re
turns shown by prominent dividend
paying stocks.
Twenty active industrial and rail
road dividend-paying common stocks
at Wednesday’s closing show' average
yield of 6.196 per cent. Average yield
at record low prices in 1912 was 5.66
per cent, and in 1911 was 6.06 per
cent. At the high points in 1912 the
yield w'as only 4.87 per cent, In 1911,
5.11 per cent.
This large increase in yield Is due
to increased dividends as well as de
clining prices. In 1911 and up to
April, 1912, Amalgamated Copper w as
on a 2 per cent basis, comparing with
present rate of 6 per cent.
Reading increased its dividend from
6 per cent to 8 per cent the current
year, and United States Rubber from
4 per cent to 6 per cent. Canadian
Pacific went from an 8 per cent to 10
per cent basis in February, 1911. St.
Paul reduced its dividend from 7 per
cent to 5 per cent in 1911. and New
York Central from 6 per cent to 5 per
cent in the same year. The average
rate now paid by the 20 stocks is 6.25
per cent.
Ministry Demands Resignation of
Man Who Allows Funds to
Cross the Border.
BY BOERSI AN ER.
CHICAGO, May 31.—M. Spitzer re
signed neither voluntarily nor leisure
ly from the Societe Generate Pour
Favorleer le Development du Com
merce, a leading French bank. It was
some time before Europe, Including
France, knew of Spltzer’s resignation.
The incident is of International im
portance and significance. It also
throws in high relief the tension of
relations—political and economic—
between France and Germany.
The Societe Generale, though
founded by Frenchmen, is now’ owned
partly by non-French capitalists, by
Englishmen, Swiss, Bulgarians and
Germans. Some years ago it was in a
distended condition. It bad extended
too much credit to swift entrepre
neurs of slow payment. Much unmar
ketable paper and insufficient cash
threatened the bank’s convenience. At
this rather uncomfortable juncture
Sir Ernest Cassell and a number of
his business associates in England,
Switzerland. Belgium and Germany
put $20,000,000 into the institution,
thereby acquiring an influential pro
prietorship.
German Is Chosen.
Sir Ernest Cassell and associate In
vestors deemed the then head of the
executive committee of the bank not
competent, a view quite forcibly in
dorsed by the state of assets and lia
bilities. The chief was superseded by
a German banker, Herr (subsequently
Monsieur) Spltzer, of Berlin.
Spitzer soon justified his responsi
bility and Cassell’s judgment. The
Societe Generale retrieved its im
paired prestige, an achievement that
only financiers can appreciate, for
nothing Is more difficult in the science
of finance than to restore confidence
in a bank whose standing has been
weakened.
In a relatively few years the con
stituency of La Societe Generale
Pour Favorisor le Development du
Commerce embraced the sovereign
states of Europe. Under Spltzer’s ex-
ecutiveshlp it made large profits and
earned a world-wide reputation.
Incurs French Enmity.
Spitzer incurred the hostility of
Frenchmen, not because he was a
German, but because he had made
the bank an impregnable success,
somewhat at the expense of other
French banks. A Paris banker who
had so little business of his own that
he could devote time and energy and
vigilance to other bankers’ business,
ascertained, through the treachery of
a disloyal employee, that the Societe
Generale had been discounting more
German than French paper.
The situation was transitional and
in a sense inadvertent. Spitzer had
been actuated by purely business rea
sons. The Germans needed money
badly and were offering a high rate
of interest. As a former German, ex
pert in German credits, Spitzer se
lected a lot of sound paper bearing
German names and these purchases
overbalanced the notes with French
names.
Damned for Success.
Within a fortnight the directors of
the Societe Generale were invited by
the Minister of Finance to call, In a
body, at the ministry. There they
were told to select, immediately, a
successor to M. Spitzer.
A “request” from the French Gov
ernment in a matter of this kind is
tantamount to an imperative order.
M. Spitzer “resigned” at once.
The Government has no interest
whatever in the Societe Generale,
which Is a private corporation. But
a refusal on the part of the direc
tors to comply with the Finance Min
ister’s “request” would put a decid
edly violent end to the bank. Its
doors would have been closed in a
few days.
Not a line about the disposal of
Spitzer has appeared in the French
papers; for, while the Government at
present is coercively chauvanistic, It
is at the same time commercially dis
creet. It wants no trouble in French
finance just now*.
NEW YORK, May 31.—Recent ac
tivity in American Cotton Oil Com
pany common has not been due to
new developments, according to di
rectors. Several of them declare the
financial position of the company Is
strong, but do not seem to favor early
resumption of dividends on the junior
issue unless earnings for year end
ing August 31 should be exceptionally
satisfactory.
One director says: “The crude cot
ton seed oil situation has not been as
good this season as last. The 1912 cot
ton crop was smaller than in 1911,
and cotton seed prices ruled higher.
A great deal of this year's supply was
of poor quality, due to unfavorable
conditions under which cotton was
picked.
“Exports have been curtailed some
what, which may be attributed to
political uncertainties abroad and the
fact that England, a larger user of
American oil. has shown a disposition
to wait for lowering prices. However,
these are only some of the factors en
tering the cotton oil business, which is
subject to so ma^y influences that
it is impracticable to gauge the sit
uation by one or two. For instance,
a large olive crop in Italy may affect
demand for cotton oil, as would also
a large “milk crop” in Belgium. When
there is a shortage of the milk sup
ply, much of the famous Belgium but
ter is manufactured from American
cotto5i oil.
“All our mills are shut down for
the season, as seed crushing has prac
tically been completed. The next
months will witness distribution of a
large part of our stocks of oil, and
developments in that period will de
termine much as to the final result of
operations for the current fiscal year.
“It is not possible to state how net
will compare with previous fiscal year,
as accounts are not made up until
the end of August, but business of our
principal subsidiary, the N. K. Fair-
bank Company, is excellent and well
ahead of last year.”
For ten months ending April 30,
1913, exports of cotton seed oil were
275,983.034 pounds, against 360.626,488
in corresponding period of the pre
vious year.
STEEL EARNINGS
DURING OOARTEO
LITTLE CHANGED
Estimate Places Figure for Period
Ending June 30 at Between
37 and 38 Million.
DETAIL STDDE
OFFERS BONDS
Holders Seem in No Haste to
Take Stock in Return for 5s
Selling at Same Price.
NEW YORK, May 31.—Conversion
of Atchison 5 per cent convertible
bonds of 1907 has been slow' and
small. In April $1,189,000 were con
verted, and during first 20 days of
May $789,000 were turned In for com
mon stock. Atchison common is sell
ing around 99 per ixyrE and jJie price
of the controvertibIe5s is about the
same.
Beginning June 1, the $43,686,000
4s issued in spring of 1910 may be
converted into stock. These bonds
are now selling on a parity with the
common. In fact, all Atchison con
vertible issues are quoted under par.
Since 1905 Atchison has issued $147,-
711,000 convertibles.
Of $104,025,000 bonds now’ subject
to conversion, $76,334,000 have been
turned in for common stock, or 73.3
per cent, leaving $27,691,000 outstand
ing. The conversion privilege on the
4s of 1905 and 1909 runs until June 1,
1918. In the 4s of 1909 the conver
sion has been heaviest in proportion
to total issued.
Atchison has outstanding $177,312,-
500 common stock. Total conver
sion of $76,334,000 bonds into common
means $4,580,040 additional to annual
dividend account. But charges of
$3,212,160 have been cut off, making
the net addition $1,367,880.
Atchison, for the time being at
least, has stopped raising money
through convertible bonds. The last
financing was in the spring of 1912,
when $18,299,695 California-Arizona
lines first and refunding 7% per cent
bonds were sold. It Is not likely that
the company will be in the market for
more money until end of the present
calendar year at earliest.
Ocean Lines Force
Good Cotton Baling
Steamships Take Action Aimed at
Prevention of $50,000,000 An
nual Loss of Staple.
WASHINGTON, May 31— For
many years the railways have sought
to have cotton shippers exercise
greater care in packing cotton. Gov
ernment experts have estimated that
of the cotton crop of the United States
there is. between the gin and spinner,
a wastage and damage of $50,000,000
per annum.
The trans-Atlantic lines who in re
cent years have been mulcted In
heavy damages because of the poor
condition In which cotton has been
delivered to foreign consignees have
now taken action that will reinforce
the efforts of the railways.
From September 1, 1912, to March
31, 1913. on the average one bale of
cotton out of every six offered at the
South Atlantic and Gulf ports was
condemned; one bale out of every ten
was improperly marked. Beginning
July 1 next, their requirements will bo
more rigid; higher charges will be ex
acted for cotton loosely baled.
LOSS ON EGGS.
Ex-Secretary Wilson, of the de
partment of agriculture, estimates
that between the producer and the
consumer there is an annual loss of
$45,000,000 in the egg crop of the Un
ited States, the greater portion of
w’hich falls on the farmer who is by
far the largest producer. Of this
enormous loss about one-third, or
$15,000,000, is caused by heat, which
develops the embryo of the fertile
egg. causing what Is known to the
trade as a “blood ring.” As it is
impossible to produce a “blood ring”
in an infertile egg such an egg will
stand a higher degree of temperature
without a serious deterioration than
with a fertile egg.
Dividends Paid
By Subsidiaries
Of Standard Oil
Twenty-nine of Thirty-four Standard
Oil Companies Make Dis
bursements.
Since dissolution of Standard Oil
Company of New Jersey, on Decem
ber 1, 1911, the 34 companies into
which the corporation was split have
all paid dividends but five, the total
being $122,539,946 in cash and $103,-
100,000 par value In stock. Valuable
subscription rights have also been
granted.
In 1912 cash dividends totaled $53,-
299,969. Ho far in 1913 they have been
$69,239,977. The largest disbursement
in a single year before dissolution was
$58,000,000.
The five companies which have not
paid any dividends are. Atlantic Re
fining, Colonial Oil of Kentucky,
Union Trunk Line, and Waters-Pierce
Oil Co. Several have published bal
ance sheets showing large earnings
available for dividends.
The following table, shows the cash
dividends paid by Standard Oil and
former subsidiaries:
Total 1912 1913 to data
$10,000
4,000,000
250.000
210,‘tOO
900,000
80,000*
1,500,000
800.000
400,000
2,000.000
1,527,309
1.500.000
200,000
2.000,000
2,500,000
100,000
2,800,000
750.000
700,000
1,250,000
3.900,000
50,000
180.000
19,667.660
3,900,000
175,000
Ror-Hcry
Rkeye P L ...
Chesbr Mfg
Coritln Oil
Creso P L....
Cunib P L....
Eureka P T«...
Ual tflg O
(lo i»f
Ind P Ij
Nail Tran . ..
N Y Tran
North P Ii...
Ohio OH
Pr O & O. .
Solar Refit .
Southern P L.
So Penn O...
S w P P L...
St Oil Cal....
St Oil Ind...
St Oil Kana. .
St Oil Neb...
St Oil N J...
St Oil NY*..
St Oil O
Swan A V
Vacuum Oil
W ash Oil ..
Aug-Am O .
$2,000,000
100,000
480,000
1.000.000
200,000
100,000
1,600,000
381,827
1,000,000
200,000
1.000,000
600.000
100.000
1,600,000
500,000
175,000
2,500,000
3,900,000
170,000
120,000
49,109,150
900.000
175,000
25.000
450,000
44,000
750,000
Total
$40,000
6,000,000
350,000
210.000
1,440,000
60.000
2,500,000
1,000,000
500,000
3,600.000
1,909,136
2,500,000
400,000
3,000,000
3,100.000
200,000
4,400,000
1,250.000
875,000
3,750,000
7,800,000
220,000
280,000
68,836.810
4,800,000
350,000
25.000
1,350,000
44,000
1.750,000
Adds Gilt-Edge Securities to
Stocks of Ribbons—Tries
to Reach Poor Man.
NEW YORK, May 31.—City bonds
of the recent issue are being offered
by one of the largest department
stores at a price below the average
at which the issue w r as alloted.
Wall Street is much interested im
the mo*ve, and brokers remarked
the five and ten-cent stores would
have bond3 for sale next.
The department store believes that
the average man with $10 to $100 to
invest knows nothing of bonds, but
thinks only of a savings bank as a
place for small sums, while these
bonds pay better interest than sav
ings banks.
The idea of introducing high-class
securities through the medium of the
stores is new, but it Is believed that
the move will serve to assist In edu
cating the people of the United States
to the fact which the French wage-
earners long have known, that bonds
are not a rich man’s luxury, but a
safe place for the poor man’s sav
ings.
PLAN SUCCEEDS IN ST. PAUL.
ST. PAUL, May 31.—A New York
broker conceived the plan of selling
bonds over the counters of depart
ment stores, which tried out in St.
Paul, resulted In $65,000 worth being
sold In a few hours. His idea reached
local bond mon through Charles W.
Gordon, a prominent St. Paul capi
talist.
According to Mr. Gordon, the pro
moter explained the plan is to mar
ket high-grade securities to people
of small means, or “the men and
women with savings of $50 to $100.”
The success of the plan has been
remarkable. No profit has been made
by the department store. Exception
ally favorable circumstances are con
ceded to have attended the inception
here, however, for the bonds pay a
trifle less than 6 per cent and run for
eleven months, the store guaranteeing
them, and agreeing to take them back
at purchase price and accrued inter
est at any time.
Parisian Slippers
Designed in U. S,
Style Fails to "Catch On” Until Sent
Across Ocean for Approval
by French.
The satin slippers with wide ribbon
streamers that have been spoken of so
much of late in the Paris fashion ca
bles are the result of an American
idea.
Last March a Brooklyn shoe manu
facturing firm, in making up samples
for the coming season, designed a sat
in slipper trimmed with rhinestone
ornaments and having wide ribbon
streamers attached to each ornament.
These streamers crossed over the in
step and were fastened with rhine
stone slides. They were tied about
the ankle, well up to the calf of the
leg, on the order of a high-strapped
bathing slipper.
These slippers were shown to a
number of Americans for approval.
Ail admired them, and said they were
pretty, but no one thought of buying
them. There were eight pairs of these
slippers, all made in different colored
satin.
Later the slippers were called back
by the Brooklyn firm, and sent to
Paris for display purposes. Within a
week the American papers began to
tell of the beautiful new style foot
wear that was being shown there.
Since these articles have been pub
lished there have been many calls for
these slippers.
This incident simply goes to show
that American ideas in footwear are
right, but that they must be approved
by Paris before American women will
buy them.
NEW YORK, May 31.—Estimates
of earnings of the United States Steel
Corporation, for current quarter,
show very little change. The cor
poration suffered from the floods in
the middle West, and then again cer
tain departments have been unable
to operate fully on account of pro
nounced scarcity of raw steel. It Is
believed, however, that net earnings
for the second quarter will aggregate
between $37,000,000 and $38,000,000,
compared with $34,426,801 In the pre
ceding quarter. The increase during
the current quarter will be the result
of a larger production and deliveries
of steel on a slightly higher price
basis.
If earnings are between $37,000,000
and $38,000,000, they will compare fa
vorably with the corresponding quar
ter since the organization of the Steel
Corporation, except the second quar
ter of 1907, when they were $45,503,-
705; the second quarter of 1906, when
they were $40,125,032, and the second
quarter of 1902, when they were $37,-
662,058.
The following table gives the nat
earnings for the second quarter ->f
each year, with the current quarter
estimated:
Quarter End Net
June®: Earnings.
1913 •$37,500,000
Totals $13,299,969 $69,239,977 $122,539,946
• One dividend of 20 per rent paid Peeember. 1911.
BROWN FURS DOMINATE.
Brown furs are expected to domi
nate this fall and winter. Natural, or
undyed, furs will be much in vogue.
This is attributed in no small degree
to the wide showing of brown fabrics
for women’s wear for the coming sea
son.
1912.
1911,
1910.1.. ...
1909
1908.. .•...
1907. .,. ...
1906..
1905.
1904
1903.
1902 -
1901.
25,102,265
28,108,520
40,170,960
29,340,491
20,265,756
45,503,705
40,125,033
30,305,116
19,490,725
36,642,308
37,662,053
26,363,840
ated.
earnings as above stated
woulcf*enable' the Steel Corporation to
show a Sfttrplhs for second quarter of
more than $10,00t,000, which, added to
the surplus reported in first quarter,
would give 4 total for the first half of
the year of about $17 600,000. Assum
ing that the corporation's earnings in
the last half will be as large as In the
first half balance of surplus for tha
full yoqjp would be anoroximately $36,-
000,000. Tl^is would be sufficient *»
more than cover entire construction
expenditures £pr twelve months, as It
is estimated that outlays for this
purpose in 1913 win amount to ap
proximately $30,000,000. Manufactur
ers are confident there will be no in
terruption to the upward tendency ot
the Steel Corporation's earnings for
the next five months at least. This
means that If there Is a setback it
will occur in last quarter of year.
Copper Production
May Exceed Demand
Present Rate of Increase Will 6lv»
2,000,000 Pounds In Decade.
No Use for So Much.
Last year will bo remembered as
tile first year when the total world
production reached a million tons.
One hundred years ago the average
annua] output of copper was about
10,000,000 tons. The quantity for the
decennial period 1811 to 1820 was, to
be exact, 96,000 tons. In the middle
of the century, from 1851 to 1880, the
total output was 605,999 tons, or,
roughly 60,000 tons per annum; and
by the end of the century the output
had reached half a million tons.
It will be seen, therefore, that In
the comparatively short space of
twelve years another half million tons
have been added to the annual pro
duction of copper. The question nat
urally arises whether this tremendous
rate of Increase is likely to be main
tained, for if so In the course of an
other ten or twenty years the trade
will have 2,000,000 tons of copper to
deal with every year. It is almost In
conceivable that employment can bo
found for a quantity so enormous.
The Increase in the output has been
lately very large, nearly 130.000 tons
having been added during 1912,
against only about 20,000 tons in the
previous year. The electrification ot
railways may open out a large mar
ket for copper, but, on the other hand,
this process will throw upon the mar
ket a very considerable quantity of
old copper and old metals of which
the principal constituent is cop
per, and the release of these metals
will tend to keep down the consump
tion of new copper In other indus
tries.
FAMOUS HOME PASSING
IN OLD-TIME ST. LOUIS
ST. LOUIS. May 31.—Beilgrado, the
historic St. Louis home made famous
in “The Crisis,” where Virginia Car
vel was wooed and won by Stephen
Brice, now is tenanted by two negro
families and undergoing the last rav
ages of decay.
Famed at a time when St. Louis so
ciety was brilliant with old-time
Southern flavor, when women were
proud and men chivalrous, the one
time scene of many a famous ball
and reception is about, to be razed.
EXPORT BUSINESS BETTER.
Exporters report a picking up in the
inquiries from abroad for staple
prints. Foreign business in these
goods has been none too hea»ty in the
last few months.
FRUIT JARS, ETC. A retail
AT LOWEST PRICES TO ,
. MKRCHAl
Our traveling men _
the beet makes of Fruit
at very attractive prices
an<1 Queer Fruit Jars.
Wholesale Showrooms
57 North Pryor Street
nevw ahowin*. amont - ,
Jelly Glasses, Fnflt Jar —^
* trade. We specialise *on E
are now i
lit Jars, J«
;es to the
DOBBS & WEYCa