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IT D
ITEARST’S SUNDAY AMERICAN, ATLANTA, GA., SUNDAY, 3TTLY 27, 1MX
Economic Reform Swinging Too
Far the Other Way. From the
License of Former Times.
By BOERSIANER.
CHICAGO, July 26.—Nothing is
more absurd in English history, Ma
caulay has observed, than the out
breaks of fanatical morality. Periods
of orgies and libertinism are followed
by intolerable puritanical reigns, and
upon these, in turn, ensue free thought
and free action of lawless character.
America goes to extremes in the
matter of business ♦morality. The
financial orgy of 1901-1906 has incited
a reaction that is felt everywhere.
Hardly a State that has not enacted
statutes inimical, to some extent, to
the welfare of commonwealths.
Curative in purpose, these^laws are
really destructive in effect. And what
State legislators have done, or tried
to do, in detail national legislators
at Washington are doing in a large
way.
The economic reform wave, incip
ient in 1908, mild in 1910, now is be
come almost a mania. Every other
statesman has a highly original
scheme for perfecting the economic
condition of the country. Almost ev
ery man in a position to submit a
bill wishes to save his constituents
from financial imposition. The idea
of men in public office is quite gen
eral that the people as a whole can
not only be legislated into unimpair-
able happiness, but that every indi
vidual can be prevented from mak
ing financial mistakes. The law,
seemingly, can do everything to per
fect the deficiencies of political econ
omy.
“Blue Sky” Laws.
Probably the most virulent form of
fiscal reformation is that which is
known as the “blue sky” laws. No
body knows definitely how the term
originated. Among bond men it is
supposed that the expression had its
origin in the idea that the maker of
shady securities was trying to capi
talize the blue sky—was selling shares
on the blue of the heavens.
The supposition is improbable. The
probabilities are that it is of German
birth. There is a Teutonic proverb,
“Er redet das blaue von himmel herun-
ter si,” roughly, “He could induce the
blue of the heavens to come down
with his talk.”
Very likely, then, a German sales
man of insecurities—a voluble, hyp
notizing swindler—prompted the
phrase, “blue sky laws.”
These laws, as a whole well inten-
tioned, are as entirely ignorantly con
ceived and injurious. Their purpose
is to protect people who have no
knowledge of values, who are innocent
of financial methods, from the swarm
of swindlers who in part travel about
the country and who in other part in
fest the skyscrapers in the financial
districts of cities. The preventive so
far has been unsuccessful. Contrari
wise, the sellers of sound securities
have been enormously embarrassed.
Kansas Takes Lead.
The first State to enact restrictive
measures was Kansas—the home of
the greenback proposal of the
Granger movement, of the Populist
party; all in good intent, but unsound
politically and economically.
The Kansas statutes make it a se
verely punishable offense to attempt
to sell securities without obtaining
from the bank commissioner a state
ment that the vender is solvent; that
his plan of doing business and pro
posed contract contain and provide
for a fair, just and equitable plan
for the transaction of business, and,
in the commissioner's judgment,
promise a fair return on the securites.
An applicant for such a statement
must file with the commissioner his
plan of doing business; a copy of all
contracts he proposes to make with
or sell to his clients; an itemized
account of his financial condition and,
if a corporation or association, copies
of all papers pertaining to organiza-
tion.
An approved applicant must regis
ter his agents in the commissioner’s
office semi-annually (oftener if called
for), file his balance sheet and take
a trial balance monthly for the in
formation t>f inquiring customers.
Certain concerns and securities are
not within the purview of the law.
The concerns are banks, real estate
mortgage companies, building and
loan associations and corporations not
organized for profit. The excepted
securities are Government bonds,
bonds of the State of Kansas and
Kansas municipalities, and Kansas
real esate mortgages.
Home Securities Exempt.
It was, of course, highly consider
ate of Kansas legislators to exempt
the securities of Kansas, especially
its real estate mortgages. This was
an inspiration of solonlike fame.
Twelve other States to date have
passed laws based more or less on
the Kansas idea. A few of the devia
tions from the Kansas scheme are
Interesting. Thus Wisconsin holds
the vender responsible for the bonds
sold. If the interest is stopped or the
principal is invalidated, the seller
must make it up to the purchaser.
In Michigan the wiseacres insisted
upon having the authorities audit the
books of bond houses and make every
bondman prove the amount of his
wealth. Tn Kentucky a slight slip
from the license stipulation lands ths
licensee in Jail summarily.
■From beginning to end the thing is
inquisitorial. Chara-cter goes for
naught. Prestige is worthless. A
house like Harris, Forbes & Co is
on the same level with a mining
stock sharp—it must run the gauntlet
of commissions who may know some
thing of ward heeling, but who. as
a rule, know as much of bond values
and the standing of a firm as a toad
knows of astronomy. However, the
chances for graft are myriad.
How It Works.
When it Is considered that there
are some bond houses here and In
the East that have on their lists at
one time 200 issues each, all of which,
before being offered, must pass
through the commissioner'* office, an
idea is had of how tho bond business
Is impeded.
Twice as Many Cattle Could Be Raised
In South By Use of the Modern Silo
'ermits Greatest Amount of Food Per Acre,
Furnishes Appetizing, Succulent Food—N
Essential in Beef Production—The South
Conserves the Waste,
ecessary for the Dairy,
Backward in Its Use.
CHAS. A. WHITTLE
With a silo it is possible to grow
two cows where one was grown be
fore.
More succulent food can be grown
on ar^acre for the silo than can be
grown in any other form. When con
verted into ensilage more of the food
content of a plant is conserved than
when kept in any other shape. Cattle
fed from the silo with suitable quan
tities of other food, are kept health
ier and thrive better than when fed
in any other manner.
The silo is both a source of econ
omy and efficiency. Ten times as
much space is required for storing
corn field-cured than when put In
the silo. Three times as much space
is required to store hay in the barn
than in the silo. So it is that the
silo makes it possible to have smaller
barns, carry less Insurance, save cost
of repairs.
In feeding, the silo preserves from
waste a larger quantity of food ma
terials than is possible in any other
way. True, there is some waste from
fermentation in the silo, but the cur
ing process of corn in the field or
other field-cured crops, exceeds by
far the waste from the silo.
Economy of Silo.
The chief economy In using the silo
is that it is the means of converting
portions of the plant into appetizing
food which otherwise the cattle would
discard in the trough.
The equivalent of four tons of hay
in feeding value can be easily ob
tained from an acre of silage. Four
tons of hay per acre, of course, are
not to be had, except from a good
patch of alfalfa. Crops for ensilage
can be grown on most any kind of
land and with little trouble. It is
not so easy to get hay crops.
No part of the country affords the
opportunity that the South presents
for growing, at lowest cost, abundant
silage matter. Corn and sorghum
with oowpeas can be gathered in
great abundance from a field of ordi
nary fertility. Nothing like the equal
amount of feeding matter can be
grown in any other way. Consider
ing that the silage crop can be
grown as a second crop of the long
growing season in the South, it is
apparent, of course, that the kinds
of crops that can be grown are not
alone the South’s advantage.
Necessity of the Dairy.
To keep a dairy up to maximum
milk production all the year, of
course, requires care in feeding. Ex
perience has put beyond all question
that no food source better serves the
dairyman than the silage which he
can get in great amounts from a small
tract of land.
Aside from the unquestioned econ
omy, the silage has special value *n
maintaining a healthy condition of
the animal. It . operates as a mild
laxative and when properly balanced
with cotton seed meal and some dry
hay,- the cow is in prime condition
for the maximum production of milk.
If a dairy is maintained on small
acreage near a city where land *s
expensive, pasturage is out of the
question, and the silo alone is the so
lution of an economic feed. For most
parts of the South, however, pas
turage is abundant and easily main
tained, so that it is the cheapest pos
sible source of food for cattle. Con
sidering that there is a nine-month-
pasturage season on lands covered
with Bermuda grass, where one might
consider that from $1 to $1.50 per
month would be a fair charge as pas
turage cost, it is apparent at once
that cattle growing in the South need
not be an expensive proposition. The
cheapness of pasturage, together with
the long growing season, makes it
unnecessary to go to the lengths in
providing silage to which more
Northern farmers have to go during
the longer period of stall feeding.
But a long grazing season on in
expensive pasturage does not abate
the necessity of a silo. The mere
fact that cattle graze so much in the
South makes the silo the more neces
sary, for no food better follows or
precedes pasturage than succulent si
lage. They supplement each other
splendidly.
For Beef Production.
Because of the healthy condition
which silage produces in the animal,
and because of the enlarged capacity
for food which feeding silage creates,
beef growers have long recognized
the value of leading up to the fin
ishing season by using silage.
Recent years have developed that
silage is not only good as a succu
lent food between pasturage seasons,
but Is a food that can be carried along
till the feeding is finished. Former
ly it was said that cattle fattened by
use of silage did not kill out well,
that the meat did not have good
color and the bone was too hard, that
in shipping the shrinkage was greater
than in the case of strictly corn-fed
animals. Careful experiments have
largely disproved these claims. At
the Virginia station 124 beef animals
were fed with reference to testing si
lage in beef production, for a period
of 149 days and were then sold on
the market. These cattle were fed
from eight to nine pounds of con
centrates per day from twenty-five
to thirty-nine pounds of silage per
day and about two pounds of dry
stover or hay. When shipped to mar
ket the shrinkage was not as large as
usually prevailed on shipment of
corn-fed cattle from the same terri
tory. The lot of cattle dressed out
56.9 per cent; a very creditable rec
ord, considering that they were
grades, fed only 149 days. Instead of
the meat being inferior, it turned out
superior in quality. The fat and lean
were well blended and the color was
excellent.
It will be noted that some dry mat
ter was fed. This Is generally ad
vised as a check on the laxativeness
of the silage. Professor Charles
Plumb, one of the greatest feeding
experts of this country, connected
with the Ohio State University, while
strongly advocating silage, believes
that to feed silage twice a day and
hay once would prove a good policy.
Others, however, claim that no more
dry matter need be fed than by ex
periments prove is necessary to pre
vent too great a iaxativeness of the
animal.
Best Feeding Record Includes Silage.
The most rapid and economic gain3
made in a car load of cattle averag
ing 800 pounds each and fed from
March 17 to July 15, by the Indiana
Station, were those made from feed
ing 33.81 pounds of silage, 14.6 pounds
of corn, 2.34 pounds of cotton seed
meal, 2.38 pounds of clover hay. This
experiment, as will be observed, was
conducted during the summer months.
The eattla relish silage in the sum
mer as well as in the winter. For
those sections of the country where
droughts occur, the. summer silo is
considered a most important adjunct
to cattle raising.
The Illinois station used silage for
finishing choice Hereford steers along
with a ration of broken ear corn and
alfalfa. The cheapest gains were
made where the silage exceeded the
alfalfa, but the most rapid gains were
made where the proportion of alfalfa
to silage was greater.
Corn silage, when supplemented
with oats and hay and used for calves
intended for beef production, will
produce 35 pounds more gain per
steer during the season at the same
cost of ration than when shock corn
similarly supplemented is fed, ac
cording to experiment conducted oy
the Illinois station.
Another experiment where cattle
were fed a ration of silage, shelled
corn an*d cotton *eed meal, as against
another group that was fed all the
corn and clover it would eat. The
co9t of gain per 100 pounds in the
first was $9.79 and in the second
$12.99. This experiment was con
ducted by the Indiana station.
Many instances might be multiplied
giving the advantages of silage feed
ing in the cost of beef production,
but enough has been given to indi
cate the general results.
Conserves Soil Fertility.
The more live stock grown per acre
the greater the amount of manure
available for enriching it. Since the
silo makes it possible to raise two
cows w'here one has been grown by
other methods, so the silo makes it,
possible to get twice as much soil fer
tility for the same outlay—a matter
well worth considering in these days
MORE PROFITS
Showings in Several Instances
Better Than Brought Out by
Profit-Paying Lines.
, . . ., .. ..... , . ment in the earnings of Erie and Mis-
when acquiring soil fertility is be- ri p ac ifl 0 after a long period of
up- rn-inn more PYnPns ve v .
The principal railroads, which fit
present are paying no dividends on
their common stocks and have passed
through many financial vicissitudes,
have been able in several cases to at
tain more satisfactory operating re
sults than have many of the impor
tant roads which enjoy greater pres
tige and confidence.
This group of roads includes Mis
souri Pacific, Erie, Seaboard Air Line,
Wabash, St. Louis and San Francis
co, Rock Island, and Missouri, Kan
sas and Texas. Generally speaking,
these roads have shown an expansion
in gross earnings in keeping with the
record attained by all the large sys
tems of the country In their current
year. In respect to the amount they
have been able to save for net, they
have done even better. The improve-
Price of Cotton Oil
Is Not Manipulated
Shortage Is Blamed for Present Bulge, Together
With Advance in Lard.
coming more and more expensive.
Moreover, the silo is a means for
returning to the soil the largest pos
sible amount of the plant food con
tents which the crops have taken out.
Each plant grown on the farm robs
the soil of a certain amount of fertile
ity. If it is corn that Is grown and
the grain is sold off of the farm, rath
er than fed on it, that much of soil
fertility that has gone into the grain
leaves and if its equal is to be ob
tained the farmer must go forth and
buy it. If a part of the stalk of the
corn Is permitted to waste In the
field, or is permitted to cure in a
form that the cattle do not eat. so
much of food content of the soil is
thrown away. But when it is cut
up and put in the silo, all of the plant
is made palatable and available for
food. Thus, the least possible amount
of soil fertility taken up by plnnis
is permitted to go to waste. After
being fed. of course, it goes back to
the soil to that extent which the ani
mal has not converted into bone,
blood, sinew and fat. It is estimated
that about 75 per cent of the elements
of the plant get back to the soil
when fed through the silo and re
turned to the soil in the form of ma
nure.
South Backward in Use of Silo.
All sections of the United States
have better appreciated and made use
of the silo than the South. True, some
sections of the South devoted to dai
rying and beef raising have been
using silos with great profit for a
number of years. One can ride half
across sorfie of the Southern States
and never see a silo. It is the great
est need of the Southern dairyman.
adversity, furnishes a striking exam
ple.
The St. Louis and San Francisco
receivership, because of the road’s in
ability to meet $2,250,000 maturing
notes, has, of course, tended to ob
scure the fact that it has been making
quite a satisfactory operating record
so far this fiscal year. For the first
three-quarters of its year gross earn
ings of the system were $47,511,845,
an increase of $3,122,448, or 7 per cent,
and incidentally the largest in its his
tory. Net earnings were $13,138,852,
an Increase of $1,072,953, or 8.8 per
cent. The increase in net was, there
fore, proportionally larger than tha
gross gain.
Missouri Pacific’s achievement in
the ten months to the end of April
was more striking. Gross earnings
were $52,324,996, a gain of $6,718,383,
or 14.7 per cent over the correspond
ing period of the previous year, anJ
net earnings were $14,267,990, an in
crease of $3,667,702, or 34.6 per cent
over the ten months of the 1912 year.
Erie with ten months’ gross earn
ings of $51,879,756 showed a gain of
$4,762,029, or 10.1 per cent over the
previous year. Net earnings were
$13,040,888. an increase of $1,449,300.
or 12.5 per cent. In other words, it
was able to save more than 25 per
cent of gross for net, against some
what over 24 per cent last year.
Missouri, Kansas and Texas made a
more impressive showing. Its gross
earnings for ten months showed a
gain over the previous year of 14.9 per
cent, totaling $27,585,043, and net
gained 47.6 per cent, reaching $7,412,-
469.
It is doubtful If beef production can • n t j • txti ' i.
be generally carried on with success i .1. hi gt jUStlCG W ill t)6
in the South without the use of the' u f T 1J " fcWV
silo.
A silo can be constructed cheaply;
in fact, more cheaply in the South
than elsewhere. A farmer can build
one himself at little cost. Usually
it pays to have one built according
to some of the best designs and. at
greater expense than the cheapest and
more temporary kind, because of the I
lasting qualities, as well as its better j WASHINGTON, July 26.—Chief
arrangement. A silo can be hullt at ; justice White, of the Supreme Court
Opposed Cotton Tax
Assailed Similar Assessment as Per
nicious While Serving as Sen
ator From Louisiana.
cost anywhere from $50 to $250.
In the South they should be built with
less diameter than in the North, be
cause of climatic conditions.
Any college of agriculture or ex
periment station will furnish plans
and specifications for a silo. Some
of the railroads will also do the same.
It would seem that there is no ex
cuse for the Southern farmer not
having a silo.
Col, Thompson Lauds
Cotton Tax Editorial
'Finest I Ever Read on That Topic,”
Says American Interviewed
in London.
OCCASIONAL
OBSERVATIONS
Special Cable to The American.
LONDON, July 26.—Colonel Robert
M. Thompson, of New York, in an in
terview with a representaitve of The
New York American, said:
“I would like to offer your paper
this expression of my opinion: You
had an editorial on the cotton problem
which seemed to me the finest edito
rial I have ever read on that topic.
The way it grips thje situation is just
wonderful.”
The Sunday American, July 6, had
the following in its weekly business
and financial article:
“The vicious proposal to tax deal
ings in cotton ‘futures’ has naturally
aroused a storm of protest, for it
would embarrass cotton growers, cot
ton manufacturers, spinners and ev
eryone associated with the business,
to say nothing of driving dealings in
the staple from New York and New
Orleans to Liverpool, where the ad
vantages of a free, unfettered market
are properly appreciated.
“The manufacturer who under
takes to make and supply so many
gross of shirts or dresses or sheets
at at stipulated price, in order to es
cape risk, at once arranges to have
the raw material delivered to him it
a specified price. On the cotton ex
changes he can buy this material for
future delivery, as there is an active
market all the time for ‘futures.’ But
if every bale thus traded in be taxed
$2 or *$3, this markete will be ruined.
“The manufacturer will have to pay
more for his protection aaginst uncer
tain fluctuations and the grower will
not find a ready market for his crop
the moment he has It gathered and
baled.
“The cotton tax is barbaric, and
should be killed before it reaches the
statute book. It would benefit nobody,
but would injure everybody.”
DOGWOOD SCARCE.
Dogwood, the principal source of
shuttles for use in cotton mills, is grow
ing scarcer year by year, and various
substitutes are being uned, fcu* with no
great success.
Anyway, in Premier Bryan the United
States can boast—if it feels that
way about it—of having the most
conspicuous “DOLLAR Diplo
mat” that ever held office. The
emphasis is on the "Dollar." The
“Diplomat” part is sounded
softly.
• * •
Young J. P. Morgan rose like a son
of his dad at the New Haven
meeting which ousted Mellon.
He asserted himself in the good,
• old-fas'hiomed way of' the late' J. -
P. ’Tis said that it was the new
Morgan who insisted upon Mel-
len’s going, that it was Morgan
who arrogated to himself the duty
of selecting a successor, and that
the other directors were forced to
eubmit to the new leadership.
Half the directors did not know
when they met that Mellon was
slated for dismissal. Morgan’s ag
gressive action took their breath
away. He showed unmistakable
signs of pain and anger over the
nation-wide criticism that has
been leveled at the New Haven
management.
• • •
Playing wdth secrecy is playing witii
dynamite these days. The Vul
can Detinnlng directors learned
that. The president had an un
comfortable half hour before the
Stock Exchange governors for
the three days’ delay in announc
ing the dividend omission. Pub
licity pays.
• • •
J. P. Morgan & Co. and Kuhn. Loeb
& Co. have been supplying Huer
ta with sinews of war. In case
of intervention by the United
States, what then?
• • •
There is much mental speculation
going on in brokers' offices as to
the probable price at w'hich
Union Pacific stockholders will be
asked to subscribe to their allot
ted holdings of Southern Pacific.
Efforts to obtain a glimmer of in
formation from the bankers have
signally failed. A well-known
broker calls it a case where the
bankers hold all the cards and
the Union Pacific stockholders
are compelled by the Supreme
Court of the United State* to play
l Vke game.
of the United States, himself a Louis
ianian and cotton planter, is on rec
ord as against a tax on cotton futures
on oonstitutionnal grounds.
Such a provision is contained in
the pending tariff bill. Undoubtedly
if this provision is in when the bill
becomes law, the constitutionality
of that tax will be brought before
the Supreme Court for final deter
mination.
It was in 1892, when Chief Justice
White was a Senator from Louisiana,
that a bill was pending similar in
purpose to the amendment to the
tariff bill proposing to tax dealings
in cotton futures. In the debate, a
number of Southern Senators took a
prominent part. Speaking of the bill,
the then Senator and present Chief
Justice said:
“In my judgment there has been
before the American Congress for
many years no more pernicious, no
more vicious, no more flagrantly un
constitutional legislation, no legisla
tion more tending to undermine and
destroy the very foundation of our
decision to recall Ambassador Wilson j Government, and none more calcu-
, .. . 4 . . i lated to do untold and untellable harm
from Mexico City in order to get his
account of conditions in that dis
turbed republic.
Judging by the difficulty of obtain
ing authentic information from cor
respondents in various parts of Mex
ico, it might be imagined that the
Huerta Government was located on
a South Sea island, with no cables to
the mainland.
At best, communication between
New York and Mexico City is muenj ln comparison with the first quar-
more difficult than with countries sop- j t( , r of 1912 , locomotive buying by the
arated by the Atlantic or Pacific, an i 1 tai i roads showed a notable expansion
News From Mexico
Nearly Unobtainable
Business Men Have Much Trouble
in Learning Real State of
Affairs In Republic.
NEW YORK, July 26.—Business
men with property interests in Mex
ico can understand the President’s
The recent advances in the price of
cotton seed oil have led to suggestions
that the price of the oil is being ma
nipulated by large buyers. It is re
ported that Attorney General Me Rey
nolds has been asked to investigate
the American Cotton Oil Company
and the Southern Cotton Oil Compa
ny, It being alleged that these com
panies are “trusts" In violation of the
Sherman act, and that they have
forced the price of the oil to between
20 and 30 cents a gallon above its
actual commercial value.
Inquiries made among large inde
pendent dealers in cotton oil, how
ever, seem to show that the increase
in the cost of oil has been due to the
fact that consumption 1? considerably
in excess of output and that con
sumers, both large and small, are ln
the same position in that they have
been unable to provide themselves
with an adequate supply.
One of the largest dealers In cotton
oil said:
There is no doubt that the present
scarcity of oil is the principal cause
for the high price. Neither the Amer
ican nor the Southern Cotton Oil
Companies is in a position to con
trol the supply of oil to-day, and it
is absurd to claim that they are re
sponsible.
"We ourselves have been unable to
get supplies of oil, and what we now
have on hand is only about one
month’s supply, while we really need
Iron Men Holding Up
Price for Product
Believe It Better to Steady Market
Than to Make Sales at
Concessions.
BIRMINGHAM, ALA.. July 26 —
Southern manufacturers of pig iron
are still maintaining the $11 per tor.
price for pig iron on a basis of No. 2
foundry. While sales are not very
frequent, the belief is that It will be
better in the long run to uphold the
price rather than to sell in quantity
at a Io9s or near the cost mark.
There are indications of a better
condition of the market in the next
few r weeks. The make is being fur
ther curtailed, effort being made to
equalize the demand and production.
Shipments are lively on old business,
consumers asking for immediate de
livery. This means there is need for
the iron.
The steel operations In the Bir
mingham district are steady. With
the exception of steel billets, the Ten
nessee Coal, Iron and Railroad Com
pany’s big plant at Ensley has plenty
of orders on hand to last, two months
yet, at least, with inquiries in hand
that will call for operation extending
through the balance of the year. It is
expected that before December the
Tennessee company w r ill be furnishing
billets to the American Steel and
Wire Company at its new plant neat
Fairfield, in‘the Birmingham district.
Cast iron pipe plants are melting a
large quantity of iron and there is a
better feeling for the product. It is
expected that all accumulated cast
iron pipe will be moved out during
the third quarter of the year.
Charcoal iron continues slow, but
manufacturers are not making any
conce^ions on the price, $23 per ton
being asked still for the product. Spe
cial analysis ifon as w'ell as special
brand iron is commanding a prerriium
of not less than $1 per ton.
Coke is in strong demand and good
prices obtain. There will be need for
steady operation of coke ovens
through the rest of the year. Mexico
is still receiving much coke from the
Birmingham district.
fully three months,
company is in th
The American
saint* position.
This is proved by the fact that re
cently it purchased a lot of oil In an
other city and brought it immedi
ately to the refinery, when, if it had
been Well supplied and was buying to
hold, it would have been far more
profitable to store it where it was
bought.
“Another cause of the price ad
vance has been the increase in the
cost of lard. The consumption of cot
ton oil for various uses has grown
materially of late years, and its prin
cipal use is as a substitute for lari,
though a considerable amount is also
used in making oleomargarine and as
a substitute for olive oil. With lard
selling at nearly 12 cents a pound,
cotton oil at 9 cents is an attractive*
buy, and this has naturally enlarged
the demand.
"A peculiar phase of the situation is
the fact that July oil is now selling
at a higher price* than August. As
new supplies cease about May and no
more oil can be obtained from the new
cotton crop until October, it is natural
that the further deliveries should
fetch a bigger price, as there; are
storage and other expenses to be
taken into consideration. The pres
ent situation is evidence of the fact
that buyers are short and are willing
to pay high prices to obtain oil quick
ly.”
Fiscal Year Closes With New
Record for Gross Earnings
and Satisfactory Net.
FINANCIAL NOTES
Total receipts of Suez Canal for
1912 were $27,005,068, an increase of
$363,692. Net profits were $17,794,-
423.
Royal Dutch group of oil compa
nies has entered fight for control of
German oil trade against Standard
Oil Company and a corporation con
trolled by Deutsche Bank.
Reports to the Department of Ag
riculture show that in the fiscal year
ended June 30 last there were 57,-
628,491 animals slaughtered under
Federal Inspection in the 790 slaugh
tering establishments in 225 cities
and towns of the United States.
This is an increase of nearly 5,000,-
000 over the number of animals
slaughtered in the previous fiscal
year.
It is understood that the fiscal ywaT
of the American Locomotive Com
pany ended June 30 will rank among
the two or three best years ln the
company’s entire career. So far a*
gross was concerned it was of record
proportions and although net has
been exceeded, particularly in per-,
centage for the common stock, ths
general results were most satisfac
tory-
The balance for the $26,000,000 com
mon after taking out $1,750,000 for
preferred dividends and the usual lib
eral allowance for depreciation was
equal V 1 not far from $3,000,000 or
practiciilly 12 per cent for the issue,
a record which compares with less
than 1-2 per cent for the common la
the 1912 year and 7 per cent in 1911.-
Final inventory taking is likely to*
increase rather than reduce thi# bal
ance for the common stock which
compares with a 10-year average of-
5.3 per cent.
One of the features of American
Locomotive’s recently concluded year
is the sharp contrast which it affords
with the car building companies as
represented by American Car and
Foundry. That company ended Its
fiscal period April 30, only two
months before American Locomotive,
so that comparison is fairly equitably
American Car and Foundry had a me-,
diocre year with a balance for ttg.
common of but 4.1 per cent, or less,
than double the 2.4 per cent earned
ln 1912.
The very favorable record of Amer
ican Locomotive must be ascribed,
mainly to two factors, freedom from
labor difficulties and ability to get a,
large measure of continuous, opera
tion out of the plants.
This year just ended the company,
has had no labor difficulties and if,
has had the benefit of sufficient orders,
to keep plants in operation at an.,
average of better than 80 per cent ef
capacity.
Locomotive orders, as a whole, have
done relatively better than car orders
during the past 18 months.
to the people of this great country.”
Railroads Buying
Many Locomotives
Prices Not Cut Deeply as for Cars,
and Earnings of Manufac
turers Show Gain.
since the latest outbreaks it has been
almost impossible to get an answer
to inquiries directed to Americans on
duty at different Mexican points.
President E. N. Brown, of the Na
tional Railways, who has tried hard
to have an ex- placed before his title,
has sailed for the United States anl
is expected to reach the company’s i the
local offices on July 27. Until then. 1 lnten9c as dmonK tnp
the directors of the National Rail
ways do not expect to have mui-n
news of the situation.
in the opening quarter of this year
Records kept of purchases of all the
country's roads display a total or
1,261 bought in this period of 1913
against 805 in the same time ln the
preceding year.
As price-cutting in this department
of equipment making libs not been as
ar building in
terests, the increase of orders nat
urally is being retlected in the earn
ings of locomotive companies.
The fiscal year of the American Lo
comotive Company, which ended June
30, is expected to be established in the
annual report as one of the best in
the company’s history ln respect to
gro c s sales, while net income ran far
in excess of the previous year,
SOUTHERN RAILWAY BONDS
LOUISIANA CORPORATION
HAS INTERURBAN PLAN
NEW ORLEANS, July 26—The South-
western Traction and Power Company
has filed incorporation articles and pro- . IAn A.., P Dll\/ AMD cell
poses to build a system of Interurban IVlOnGANo DUT AND otLL
railways in Louisiana connecting I^afay-
ette. New Iberia and Abbevile. besides |
other points, and possibly reaching to
Alexandria.
The capital stock is placed at $3,000,-
000 authorized. Construction Is expect
ed to begin as soon as franchise taxes
have been voted in the several districts
named. Jules Godchaux is president,
Sol Wexler vice president and Lawrence
Blum secretary and treasurer.
If the line is built to connect only
the three places first mentioned, it would
be about 60 miles long, but if it be
extended to Alexandria from Lafayette
there would be about 80 miles more add
ed. or a total of 140 or 150 miles, ac
cording as variations from a tangent
might be made to tap Intermediate
point*.
NEW YORK, July 26,—J. P. Mor
gan & Co. have purchased and re
sold to Kean. Taylor & Co. $1,500,000
first consolidated mortgage 5 per
cent bonds of the Southern Railway
Company due 1994. This is part of
an authorized issue of $120,000,000 of
which $61,757,800 are outstanding, in
cluding $1,114,800 now' held in the
treasury. The proceeds will be utilized
in reimbursing the treasury •for
moneys that have already been ex
pended for improvements, better
ments, etc.
Purchases of Cars
Rise to New Figures
Railroads, by Heavy Orders In Last
Year, Seek to Prevent
Another Shortage.
During the first six month* of the
year 1913 a total of 85,000 cars was
purchased by the railroads of the
United States, according to authorita
tive records compiled by leading car
manufacturing concerns. This total I
exceeds the record of car purchases
for the first half of 19r which ‘
reached hardly over 50, 7 The’
heaviest buying of cars, hoOer, in
1912 did not come until the last half j
of the year, and particularly in De
cember, when the builders for a time (
were swamped with orders, so that !
for the last twelve months the new j
cars ordere by the roads reaches a
total that shows they are making ev
ery effort to prevent a recurrence of j
the car shortage of last year.
In the final six months' period of
last year from 150,000 to 175,000 cars ;
were ordered, w hich brought the total !
of the year up to approximately 235,- j
000 cars.
According to estimates made by the ‘
Iron Trade Review, the cars ordered I
during the first half of this year pro- j
vide a requirement of at least 1,000,-
000 tons of rolled steel products.
REAL MONEY IN CIRCULAR
MAILED BY SOUTHERN FIRM
The old saying that "money talks”
was put Into practice in a recent cir
cular advertising campaign by a
Boutbarn concern selling bookkeeping
jand record forms.
I TUls company’s circular was a fold
er closed at the sides with seal stick
ers. The announcement on the ad
dress side of the circular was, There
Is Some Real Money Inside This Cir
cular for You.” Upon tearing open
the seals and opening the circular the
recipient found a crisp one-dollar bill
attached to the top of It.
The heading read, “We Wish to Buy
Ten Minutes of Your Time. If the At
tached Currency Will Pay for It, Con
sider Yourself Engaged.” This com
pany figured that if it could actually
secure a complete hearing of some
100 out of a list of some 150 of .ts
best prospects the amount invested in
the one-dollar bills would be money
well spent.
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326 W. Madison St.. Chic.go., 11L
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