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irEATtST’S SUNDAY AMERICAN, ATLANTA! - CA , SUNDAY AUGUST 31. UH3.
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News and Views by Experts of Finance, Industry, Crops and Commerce
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ILL STREET'S PLUCK
REVIVED BY BREAKING
Huerta’s Move in Recalling land Gives Courage
to Financial Interests—General Business
Improves, but Money Rates Are Likely to
ytay Firm Throughout Autumn.
By CHARLES W. STORM.
NEW YORK, Aug. 30.—Financial interests plucked up courage
the latter part of the week, when there was a decided scattering
of the Mexican war-clouds that in recent weeks east dark shadows
lover the security markets.
Although some disappointment was felt in Wall Street over
the flatness of President Wilson’s message on Mexican affairs to
Congress, the recalling of Lind by President Huerta had a distinctly
favorable influence on sentiment in the financial district, mirrored
by a sharp rise in stocks.
Millions of funds that have been withheld from investment
pending some favorable change in the Mexican situation already
have begun to find their way in the stock market.
General business continues to
improve and statements made by
railroad heads indicate less ap
prehension by trade interests
over tariff and currency legis
lation.
While there Is an urgent demand
for new capital, the total of new
security offerings In the near future
promise to be very light,, according
to monied Interests.
Money Not Easy.
The bankers say there are certain
elements in the money market at
present that have created the mis
taken belief that money is easier
than really is the case. Apportion
ment of $46,000,000 by the Secretary
of the Treasury to the Southern and
Western banks has caused the belief,
to prevail that rates for money li
the fall will not be steady or stiff.
This onipion is not ^v^red by the
bankers.
International banking firms las’
week broke the rates for funds over
the year by lending large sums,
which, it is understood, represented
advance payments by Europeans on
account of subscriptions to the $88,-
000,000 offering' of Soqthern Pacific
stock. As a result, plenty of funds
have in the past week, been available
for collateral loans.
The demand by the South for
funds still is present and expected to
continue until the middle of Septem
ber, when the Western banks will
begin to draw on the East for funds.
The Western institutions will be
steady borrowers through October
and November. This drain is calcu
lated to result in firm and higher
rates.
Securities In Demand.
Easing ur> of money has been fol
lowed by a better and larger demand
for investment securities. The better
feeling has released funds that have
been held by banks and investors in
expectation of higher rates for money
in the fall and lower quotations for
bonds. Apprehension felt on this
point has been dissipated to a con
siderable extent and high grade bonds
are being picked up.
Savings banks are understood to
be looking over the bargain counter
preliminary to making purchases.
The quick sale of the $7,000,000
“Pan Handle" bonds last week had
a favorable influence on the bond
market. Further improvement in
sentiment is expected to have its
effect on security values should the
subscriptions for the, Southern Faeiflo
offering be such as to require the
underwriters to take up only a small
proportion of the entire $88,000:000.
Requisitions for steel products
have been increasing the last week,
and the unfilled tonnage statement
of the United States Steel Corpora
tion as of August 31, is expected to
show a falling off in orders of about
250,000 tons. This would campart
with a shrinkage of 408,000 tons in
July and 517,000 tons in June. Im
provement in the pig iron business
also has been recorded.
Copper To Go Higher.
An increased demand for copper,
together with sales of electrolytic at
sixteen cents is back of the predic
tions of higher prices for the metal.
The Balkan war and the prospects
of a general European conflict months
ago restricted the foreign demand for
good metal. With this good improve
ment in financial affairs abroad, a
resumption of buying on a large
scale is anticipated.
Supplies of copper now are so low
that large producers are unable to
meet the requirements of their regu
lar customers, and in many instances,
have asked them to make their pur
chases from competitors.
Copper companies with mines in
the United States are "making hay
while the sun shines,” and while the
Mexican properties are unable to pro
duce.
Many of the mines in the‘United
States are being operated at capacity
and with 16 cents for the metal,
they will report large increases in
earnings for the current year.
By JOSEPH F. PRITCHARD.
CHICAGO, Aug,. 29.—Circumstances
indicate that the longs In corn are
likely to encounter lower prices.
Farmers are letting go of their cash
corn in goodly quantities—in fact, the
railways at Chicago and elsewhere
report a largely increased demand for
empty cars, which are being sent to
scattered points throughout the belt
as rapidly as available. The country
is believed to have sold out its long
corn pretty well, as rhere were good
profits to be had, and for once in their
^lives the farmers have refused to
overstay the market and turn hand
some paper profits into actual losses.
$100 Railway Bonds
Predicted by Clough
Chairman of Northern Paclfilc Says
Next Issue Will Be in
• Small Amounts.
According to Colonel W. P. Clough,
chairman of the Board of the North
ern Paclftc, the advantage of issuing
securities in small denominations is
forcing itself upon the heads of ah
corporations, and it is only a ques
tion of time before all railways will
Issue' $100 bonds.
"I believe the next issue of bonds
of the Northern Pacific will be avail
able in small denominations,” sayo
Colonel Clough in an interview.
“It is not ilkely that the company
will increase its indebtedness in this
way for some time to come, but an -
ether bond Issue will come some time,
and by the time it does, I feel that
the country will be ready to take up
the securities in small denomina
tions.”
News and Notes
Of Grain Crops
Odd Lot Buyers
Dominate Local
SecuritiesTrading
Brokers Get Some Thrifty Souls to
Take Advantage of Higher
Yield Stocks Offer.
The farmers have been the ones to
make the money, and the country
storekeeper, the country banker, and
in fact the countrymen at large, have
reaped a rich return on the buil side
of corn.
Dull, so far as surface indications go,
nevertheless there is some trading in
Atlanta securities.
No great blocks are changing hands,
and the "big fellows” are out of the
market. The business consists of trans
fers of two, three, five and ten share
lots.
Quotations have slipped downward
gradually, almost imperceptibly, since
the first of the year, and brokers, finding
no active speculation to foster, have
devoted their energies to seeking out
men with small sums in savings hanks.
The attention of these thrifty people
has been called to the bargain prices of
good bank stocks, shares in the larger
industrial corporations, and similar at
tractive offerings
Georgia Railway and Electric has been
a favorite. It can be bought now to
yield 7 per cent, which beats the sav
ings banks’ 3% or 4 For those not
anxious for an immediate yield, “Power
common” looks inviting at 17. or a little
better. Gilt-edge bank stocks, ordinari
ly at a premium now can be had at
“book value” basis.
Quotations for local stocks follow:
Bid. Asked.
A. & W. P R. R 148 150
American National Bank . 218 220
Atlanta National Bank ...300 310
Atlanta Ice and Coal Corp. 88 90
Atlanta Ice and Coal Corp,
pfd 85 86
Atlanta Brewing and Ice Co.165 185
Atlanta Trust Company ...1Q7 110
Central Bk. and Trust Corp. 139 140
Augusta and Savannah Ry.105 108
Exposition Cotton Mills ...160 165
Fourth National Bank ....270 275
Fulton National Bank 125 127
Ga. Ry. & E Co., stamped. 115 117
Ga. Ry. Sc E. Co., 1st pfd... 76 78
Ga. Ry. Sc E. Co., 2d pfd. .. 30 33
Ga. Ry. & E. Co., common.. 16 18
Empire Cotton Oil Co., com. 45 47
Empire Cotton Oil Co., pfd.. 90 92
Lowry National Bank 242 244
Trust Co. of Georgia 242 245
Realty Trust Company ... 93 97
Sou. Ice Co. (Nashville), com 45 50
Sou. Ice Co. (Nashville), pfd 74 75
Third National Bank 240 242
Southwestern of Georgia ...108 110
BONDS.
Atlanta 4%. 1922 100
Atl Ice C Corp. 6s 1916. 90 92
A B. and A. 1st 5s 69 62
Ga. Ry. & E. Co.. 1st pf. 5s 99 103
Atlanta Consolidated Co. 5s. 104 108
Ga Ry. & K Co. consol 5s..102 105%
Southern Bell 5s 98% 99%
Cotton'Invades New
High Price Levels
Liverpool Begins to Show Reluctance
to Follow—Drouth Is Incentive
for Buying.
The men who have made the largest
amount of money in the Chicago pit
men who are known as city specu
lators—are probably headed by Ar
thur Cutten, James Riordan, R. F.
Cummings, George H. Phillips and
James A. Patten, In the order named.
Phillips and Riordan have m.\de many
quick changes in their position in the
corn market, and they have been wise
enough to get rid of their corn at
high prices and to reinstate their lines
on the soft spots. It is said that a
man down at Fort Worth, Texas, has
probably been the largest profit-taker
from a faraway point, and another
man at Montreal, Quebec, has made
enough out of corn on the bull side io
put him in an easy position for the
remainder of his life. W. H. Bart
lett, who owns the 25,000-acre cat
tle ranch in New Mexico, has been
on the bull side of corn, and it is said
his profits have been enormous. This
speculator has traded largely through
his own house here as well as througn
Charles Congdon.
By EDWARD LOW RANLETT.
The recent rains throughout the
corn belt have accomplished a great
deal of good, as some of the com his
been reawakened to active life, and
the pastures in many sections are bet
ter than they were a few weeks ago.
This change for the better will prove
a drawback to the cprn price.
Many of those who have given the
corn market most of their attention
of late are again returning to wheat,
and the speculative business in that
grain shows a mabked improvement
over ten days ago. Sentiment is
much mixed. The bulls believe that
there will be no great pressure from
the Northwestern crop, as the first
run. which is soon to grow to larger
proportions, will come out of :he
hands of tenants and others who have
financial obligations to meet. Condi
tions in Canada are quite favorable,
and the crop there is said to be be
yond the possible damage of frost.
NEW YORK, Aftg. 30.—New high
prices for all options have beeiT re
corded in the cotton market the past
week. The advance has been so swift
that toward the end of the week Liver
pool interests manifested reluctance to
follow the upward trend.
While the better prices resulted to a
large extent from the covering opera
tions of shorts, the buying also included
a fair-sized number of longs who had
left on the present advance, or who
had sold out early' in the week. The
buying had for its incentive the con
tinuance of .drouth in Txas and Okla
homa and rumors that th*> September 2
report of the Government would show
a condition of less than 70. Conserva
tive judges of the market, however,
were of the opinion that the condition
would be between 70 and 71.
Even this would he substantially low
er than the ten-year average, but this
is believed to have been discounted by
the recent enactment in quotations. The
average guess of seventy members of
the New York Exchange placed the con
dition to be announced at 69.9. A com
mercial crop of approximately 14,000.000
bales ta indicated by' the end of the
.season statistics. Consumption has ex
ceeded this by f about 750,000 bales, so
that the visible and invisible supply of
cotton at the Inception of the crop
year has been reduced by that amount.
The excellent condition of the East
ern crop has not been considered in the
upward movement, attention being di
rected chiefl.v to the damage visited up
on the Western crop. Indications are
for a moderate crop in Texas, a fair one
in the central belt and an excellent yield
for the Eastern belt. The South was
reported to be offering freely in Eu
rope.
Easterners Taking
All Corn Offered
GE
Every Bushel Headed Toward Chica
go Will Go Out Again Almost
Immediately.
Morgan Answers
A Stockholder
Banks Demand Clean Export Pa
pers—City Needs Nearly Six
Million Dollars for Season.
Secretary Hester’s Figures
To Be Posted Monday.
Big Building Pays
Savings Institution
People Judge the Size and Prosperity
of a Bank by the Home It
Boasts. 4
NEW ORLEANS, Aug. 30 —The local
cotton market was closed to-day’ and
will remain closed until Tuesday morn
ing. Secretary Hester's annual crop
statement, giving the official figures on
the commercial crop and the consump
tion, will be posted Monday morning on
the exchange windows, and are awaited
with much interest by the trade here,
especially in view of the alarming re
ports as to the enormous deterioration
in Texas and Oklahoma. Norman May
er Si Co., are out to-day with a crop
condition report placing the average for
the belt as low as 66, and showing a
decline in th** Texas condition of 18
points and of 20 points, for Oklahoma.
The general expectation here is for a
bureau report Tuesday of 69. and if un
der those figures, another sharp advance
in the market probably will be recorded.
NEW YORK, Aug. 30.—It pays to
build a good savings bank building
in a prominent place as a means of
impressing the depositing population
with the character and standing of
the institution, says a prominent New
York official. A board of directors
recently reviewed the questions and
agreed that the policy which its pres
ident opposed ten yeas ago—of put
ting $300,000 into a bank building on a
leading New York street corner—was
one of the best investments they ever
made.
The bank was in a populous dis
trict, and the people Judged the in
stitution’s prosperity by the size, dig
nity and attractiveness vr'thin . nd
without the building itself, rather
than by any financial statement.
Immediately after the new building
was opened the deposits began to run
up rapidly and have kept going ever
since in impressive fashion.
LIVERPOOL COTTON MARKET.
LIVERPOOL, Aug 30.—Due un
changed to % point lower, this market
opened steady with prices at a net de
cline of 1 to 2% points. The market
closed irregular. 1% points higher to 5%
points lower than Friday’s final.
Spot cotton quiet at 3 points decline;
middling 6.97d; sales 4.000 bales, includ
ing 3,100 American bales; imports, 1.000
bales.
I
Futures opened.
Opening Prev.
Range. Ploc*
August . . . 6.72 6.74% 6.73
Aug. Sept. . . 6.64 -6.65 6.60 6.65
Sept -Oct . . 6.65 -6.50 6.51 6.56
Oct.-Nov/ . . 6.51 -6.46 6 47% 6.52%
Nov.-Dec. . • 6.47 -6.42 6.43 6.48
Dec-Jan . .. 6.46 -6.42 6.43 6.48
Jan -Feb. . . 6.47%-6.42 6.43% 6.48%
Feb.-Mar . . 6.48% 6.45 6.50
Mar.-April . . 6.50 -6.45 6.46 6.51
Aprll-May . . 6.51 6.46% 6.52
May-June . . 6.50 -6.46 6.47 6.52%
June-July . . 6.50 -6.45 6.45% 6.51
LIQUIDATE WALSH BANK.
Stockholders of the Chicago Na
tional Bank, the old John R. Walsh
institution, decided to place it in *1-
quidation. It is said available assets
will pay between 15 per cent and 20
per cent, distribution of which will be
made in about a month.
COTTON SEED OIL.
Cotton seed oil quotations: _
| Opening. I
8.24(58.30
September .
< October . . .
November . • ^
December . • •
January . . .
February . . .
March ....
April .
Closed steady;
7.75(8'
6.90*16.92 !
0.80*i 6.85 !
6.80*i 6.85 !
6.83*16.88 :
6.90(8-6.93
6.90(8 6.98 1
sales, 2,800
Closing.
8.25 « 8 50“
7.90(8)7.80
6.95(8 6.88
6 83*i 6.85
6 8SQ 6.90
6.94
6.93(8 6.99
6.85*? 6.86
barrels.
FOREIGN TRADE OF FRANCE.
Imports of France during first
months of 1913. compared with 1912,
were $832,800,983; 1912, $803,341,656,
an increase of $29,459,227; exports,
1913, $653,604,150; 1912, $622,262,880,
an increase of $31,341,270,
NEW YORK PRODUCE MARKET.
NEW YORK, Aug. 30.—Petroleum
firm; crude Pennsylvania 2 50.
Turpentine quiet; 41%*/42%.
Rosin quiet; common 4.15(§)4.20.
Wool steady; domestic fleece, 23(5)27;
pulled, scoured basis, 33(&52; Texas,
scoured basis, 46*j.53.
By M. A. ROSE.
New crop cotton bills of lading for
export made their first appearance
in Atlanta during the week.
Their advent this year has been
awaited with much interest and some
anxiety. The remarkable proposal of
the steamship companies to deface
them with notations of bad condition
of the cotton made it something of an
enigma what course the banks would
take. Such bills they declared not ne
gotiable.
There has been no solution of the
problem.
The banks have taken the export
bills only on condition of guarantee
that there shall be no such notations.
In other words, that they shall be
clean. Apparently nothing but per
fect bales can be exported under such
conditions. What will be done with
imperfect bales remains to be seen.
Probably the best that can be done is
to find a market wuth domestic mills.
Money in Keen Demand.
Demand for money is. nearing its
climax. Atlanta every year borrows
between $5,500,000 and $6,000,000 to
move the drops, and with deposits at
rather low’ ebb, this year’s borrowings
will be nearer the $6,000,000 mark.
Seven-eighths of this is reloaned io
country banks. Atlanta Is paying 5 1-2
per cent for the funds in New York.
How much the $800,000 Secretary
McAdoo proposes to deposit here will
help, can be estimated from these
figures.
At best, the Secretary's motives in
offering this accommodation to the
South and West were mixed. Doubt
less he was glad to aid in moving the
crop, and he did inspire helpful sen
timent by the use of comparatively a
small amount of money. On the other
hand, when Government 2s went to
bogganing on announcement of n
currency bill which threatened to rob
them of much of their value, some
thing had to be done. By requiring
10 per cent collateral in Govern me it
bonds against the proposed autumn
deposits the Secretarv hoped to make
a market for these securities and
bolster their price.
C. F. Childs’ Comment
C. F. Childs & Co., of Chicago, spe
cialists in Government bonds, make
no bones about it. They say:
“Bankers now feel that Congress
w’lll recognize its moral obligation to
provide some form of satisfactory pro
tection for the outstanding 2s in the
nature of ultimate retirement in cash.
This, of course, is entirely dependent
upon the possibility of the present pro
posed currency bill being enacted.
Should a prolonged debate or a pro
nounced opposition or a radical change
in the bill result, we may expect a
revival of the uncertainty respecting
the future course of the market.
“The recovery in prices in a large
measure also has been helped by the
ruling of the Secretary of the Treas
ury respecting his distribution of
about $50,000,000 Government deposits
w’hereby he requires 10 per cent of the
deposit must be secured by Govern
ment bonds. Although hanks in gen
eral have evidenced a preference to
borrow the necessary bonds for this
purpose at the customary rental of 2
per cent per annum, few r have suc
ceeded. It is, therefore, likely that
any increased demand to purchase
bonds will contribute temporarily to
still higher quotations during the nex:
30 days, although too much depends
upon Congressional action with ref
erence to the currency bill to permit
of even a hazardous prophecy for a
longer period. '
Southern Railroads
Moving Much Grain
Wheat Exports Through Galveston
Large, but Corn Figures Are #
Smaller Than In 1912.
NEW ORLEANS. Aug. 30.—Rail
roads leading to Galveston and New
Orleans have had x most active pe
riod of grain trade in which wheat hay
figured largely. For the year ending
July 31, John H. T’psehulte, chief
grain inspector of Galveston, Texas,
report** 13,019,884 bushels of wheat
handled there, of which 1,776.800
bushels were received during July.
The corn inspection for the year was
only 197,223 bushels, and Kaffir corn
439.446 bushels. Last year’s Septem
ber and October trade ran little under
2,000,000 bushels a month and there
were six months out of the twelve in
which Galveston handled between 1,-
00C.00O and 2,000,000 bushels of wheat.
A factor iif moving grain fn'L’h' ■
to the seaboard is the backwardness
of European harvests. Rains have
delayed field w’ork in Scotland, on the
continent and in large parts of Rus
sia.
The result Is a light movement to
ports, a delay in threshing and an
urgent demand for dry wheat fit for
milling purposes such as the dry Jul;
in America as well as the dry Augus f
furnished to our growers of winter
wheat.
July exports of wheat and flour as
wheat were nearly five times as larg-.
as in July. 1912, at 12 607,000 bushels,
compared with 2.778,000 bushels in
July, 1912.
ELEVEN-CENT COTTON
FOR OCTOBER DELIVERY
NEW YORK. Aug. 30.—Spinners
w’ho made contracts for delivery of
yarns to hosiery and underwear mills
at the 11-cent basis are said to be
eonflning themselves for delivery thL
side of November 1. There is not much
disposition to hazard terms beyond
that date. The maturing crop is still
uncertain, and they may easily lose
before that.
It does not appear that the yarn
contracts have a tariff schedule con
tingency. but that the mills as buy
ers or sellers of yarns are preferring
to leave months after November 1
free. And there is in that very fact
a good deal of speculative risk in
volved. The knitting industry may bo
facing a boom when some mills are
now running day and nighL
By JOSEPH F. PRITCHARD.
CHICAGO, Aug. 30.—It Is said by the
larger cash handlers of corn at Chicago
that every bushel of that grain pur- |
chased to come to this market already j
has been sold to go out. Eastern man
ufaeturers have absorbed these offer
ings and they have willingly paid hand
some prices for it. Under these condi
tions, and with no deliveries of corn on
September contracts, the bull longs will
experience little or no trouble In main
taining possession of the market and
in forcing it upward and downward at
will.
There Is a larger option in the Sep
tember corn than the average specula
tor reckons. The holdings are scat
tered and the shorts are scattered, too.
Jt would be a difficult matter to Lell
with any degree of accuracy the farm
ers’ holdings of corn, but it is generally
believed to be large.
Charles B. Pierce, one of the most
conservative cash grain handlers in the
Chicago market, volunteers the opinion
that wheat is good property at the pres
ent elvel. Primary receipts this week
were 6.853,000 bushels, compared wjth
8.673,000 bushels for a like period last
years.
There was heavy liquidation by longs
in September oats, while elevators and
changers bought that month and sold
the December.
The provision market presented a
more active front to-day, with the prln
clpal trade in January and Mav. It was
believed that outsiders were buyers
Cash trade in meats and lard is' im
proving
CHICAGO GRAIN MARKET.
Grain quotations:
Previous
m High. Low. Close Close.
WHEAT—
Sept:.... 86 85V6 85% 85%
Dec 89% 89% 89% 891*
M CORN— ^ 93741
Sept 73 72% 72?; 72%
Dec 69% 68% 69% 68%
May...;. 70% 70 70% 69%
OATS—
Sept <1% 40% 41 40%
Dec 44 43% 43% 43%
M poiVk— 46% 4614 4,17,1 46Ml
Sept.... 21.40 21.26 21.40 21 26
Jan 19.60 19.57% 19.60 19 60
May.... 19.57% 19.52% 19.57%
LARD—
Sept.... 11.25 11.20 11.20 11 25
Oct.... 11.35 11.30 11.30 11,35
Jan 10.95 10.92% 10.95 10.92%
RIBS
Sept .... 1142%
Oct.... 11.27% 11.70 11.20 11.25
Jan.... 10.32% 10.32% 10.32% 11.35
CHICAdO CASH QUOTATIONS
CHICAGO, Aug. 30.-Wheat No 2
red, 88%@89%; No. 3 red, 88*1 *»; No. 2
hard winter, 79^88%; No. 3 hard win
ter, 86%@87%; No. 1 Northern spring.
91%@92; No. 2 Northern spring. 90(6t)
91; No. 3 spring. 86% ft 88.
Enemies of High Prices Count on
Heavy Early Movement, Which
Fails to Develop.
74%
Oats, No. 2, 41; No. 2 white, 42(0)42%;
No. 3 white, 41%(041%; No. 4 white,
40%@41; standard, 4134(042.
PRIMARY MOVEMENT.
WHEAT—
1M3.
1912.
Receipts ....
Shipments . . ,
1.101,000 ! 1,820.000
602,000 j l,063,0o0
UOHN— | j
Receipts ....
676,000
646.000
Shipments , , ,
273,000 |
655,000
CHICAGO CAR LOTS.
Following are receipts for Saturday
and estimated receipts f<>r Tuesday:
iSaturday. |Tuesday.
Wheat
174
124
< >ats
266
242
Corn
285
282
Hogs
15.000
38.000
LIVERPOOL GRAIN MARKET.
LIVERPOOL, Aug. 30.—Wheat closed
%d to V*d low’er.
Corn closed %d to %d higher.
LIVE STOCK MARKET.
CHICAGO, Aug. 30.—Hogs—Receipts
NEW' ORLEANS. Aug. 30.—Quite
unexpected by the majority of traders
in this market, a squeeze of consid
erable proportions has developed in
the August, position, w’hich sold Wed
nesday as hign as 13 75, although
middling spot cotton was officially
quoted at only 12 3-16. The short
interest in August does not appear lo
be very large, but speculators who
had the temerity to remain short of
that month until the actual cotton
was demanded have been punished
severely.
These August shorts probably
counted on a heavy early movement
depressing the price of August con
tracts, but the development of drouth
conditions in Texas and Oklahoma
caused srjch an active demand for new
receipts in that section of the belt
that practically no new cotton has
come to this market for delivery on
contract.
Warten Misses Chance.
The sensational advance in August
after the fiasco in the July deal, which
was abandoned by Henry Warten, the
Alabama operator has caused con
siderable comment here. Friends of
the Athens man expressed their re
gret that he had not attempted to bull
the August position, which would
have yielded him greater returns in
the way of profits than did hi» op< ra
tions in the July option. Any strong,
aggressive interest in August could
ha\e forced that month to 15 cents, as
the amount of certified cotton in the
local stock is very small, and It is
now too late to bring cotton here
from the Interior for delivery on con
tract, even if the class of cotton need
ed for tender purposes were available
in the country.
One advance has followed another
In the market this week, and shorts
have been severely pounded in the |
new’ crop months, as w’ell as in Au
gust. Reports of severe deterioration |
in the condition of the crop in Texas j
and Oklahoma have been corning in
from reliable sources, foreshadowing
a very bullish Government report
September 2. Deterioration also is j
reported in Alabama, Mississippi and
Louisiana. In Alabama the crop has
deteriorated on account of drouth,
while in Louisiana and Mississippi
the principal damage has been caused
by the boll weevil.
The market, having advanced above
the level of 12 cents, has paused to
see how the trade will accept the
higher scale of values. The demand
locally for actual cotton, except for
immediate delivery on contract, is not
very keen, but it is thought that the
bureau report will have the effect of
stimulating the spinners Into buying
more freely.
Triple Holiday.
This market, as well as New York,
was closed Saturday and will be Mon
day, on account of Labor Day. With
three days of holiday on a stretch,
with a bureau report following, the
market shows a disposition to even
up commitments and atvait further
developments in the situation.
Sentiment now' is as bullish as r.
formerly was bearish, and any furthe:
setback to the crop, either in the
Eastern or Central belt, probably
would start a bull campaign of con
siderable magnitude, unless legisla
tion should prevent.
At the stockholders’ meeting of
the New Haven Railroad A. Max-
ey Hiller, a stockholder, had the
very bad taste to ask J. P. Mor
gan, one of the directors of tho
road, how much he charged the
company for organizing the syndi
cate to guarantee the new issue of
$67,000,000 bonds at par. Such a
question was unprecedented in New
Haven meetinas. It shows that in
tK is new era of puoncity any
stockholder is likely at any time
to ask impertinent and rude ques
tions about matters hitherto consid
ered purely private and personal
matters by high finance, into which
no stockholder has any right to
intrude.
Mr. Morgan replied promptly and
politely. He explained that “the
conditions of the security market
were very bad.” Bonds were hard
to sell. When the issue was pro
posed a few weeks ago he under
took to organize a syndicate to
guarantee that any of the bonds not
taken by the stockholders at par
would be taken by a Wall street
syndicate at 98. For his services
he charged 1-2 per cent on the en
tire issue; that is to say, $335,000.
The underwriting syndicate get3
$1,340,000 more for its services. In
the meantime the 6 per cent bonds
are recognized as a prime invest
ment and are eagerly bought by the
public at 106 to 107, although the
bonds are not vet issued.
Mr. Morgan will not have to take
any of the bonds; the syndicate
will not take any. The risk taken
In this case was negligible. If the
bonds had been offered to the pub
lic they would have been eagerly
taken at a premium. The New Ha
ven road would have received $5,-
000,000 or $6,000,000 more than it
will now receive. The large profit
of the issue now goes to Mr. Mor
gan and the syndicate. Mr. Mor
gan is a director and, therefore, a
trustee for the other stockholders,
but he fixes his own terms for the
bond issue, has no competition, and
“does what he thinks right’’ for
himself and the company. There is
no one to say “nay,” no public au
thority whose sanction and approv
al is necessary, no stockholder
strong enough or independent
enough to object in behalf of the
other stockholders.
15,0()0. Market 5c to 10c lower. Mixed
arul butchers, $7 40(08.95; good heavy,
$8.30*/ 8.75; rough heavy, $7.30(q8.10;
light, $8.10(5 8.95; pigs, $5.40*/8.00; bulk.
$7.90(5 8.65.
Cattle—Receipts 500 Market steady.
Beeves, $7.35(5 9.25; cows arid heifers,
$3.25*/8.30; Stockers and feeders, $5.75*4
7 85; Texans, $6.50(5-8.00; calves, $10.00
(U 12.25.
Sheep—Receipts 5.000 Market steady.
Native and Western, $3.25(54.80; lambs,
$5.25(5-8.25.
ST. LOUIS, Aug. 30.—Cattle: Re
ceipts 800, including 75 Southerns; mar
ket steady; native beef steers. 5.50(g)9.00;
cows and heifers, 4.75(58.75; Stockers
and feeders, 5.25(57.50; calves, 8.00*/
11.00; Texas sieers, 6.75(57.7.'); cows and
heifers, 4.25(06.50; calves, 5.00(06.00.
Hogs: Receipts. 4.000; market 15 to
20c lower; mixed, 8.6>*/8.90; good. 8.50*/
8.75; rough, 7.85(08.15; light, 8.850 9.05;
pigs, 5.5008.85; bulk, 8.5508.90.
Slmep: Receipts, 350; market steady;
muttons, 3.25*14 30; yearlings, 5.00(56.00;
lambs, 5.50(58.10.
FOR THIRTY YEARS WM, SIMS
HAS MARKETED FIRST BALE
HOGANSVILLE, Aug. 30—As has
been his custom for the past 30 years
or more, William Sims, whose planta
tion is situated near this place, brought
in the season's first bale of new cotton.
Mr. Sims operates one of the largest and
most productive plantations in this sec
tion. fie not only grows cotton very
extensively, but also raises quantities
of grain and other farm products.
NEW YORK BANK STATEMENT.
NEW YORK. Aug 30.—The weekly
statement of the Clearing House shows:
Average statement: Excess cash re
serve, $13,997,300; decrease, $9,898,400.
I cans, Increase. $20,798,000,
Specie, decrease. $6,706,000.
Legal tenders, decrease, $26,000.
Net deposits, increase. $15,518,000.
Circulation, decrease, $589,000.
Actual statement:
Loans. Increase. $30,008,000.
Specie, decrease, $14,282,000
Legal tenders, Increase, $519,000
Net deposits, increase, $20,403,000.
Reserve, decrease. $17,084,050.
LONDON STOCKS.
LONDON, Aug 30—Trading on the
stock exchange to-day was idle and
without feature. Consols were a shade
firmer as were Kaffirs. Home rails
were slightly easier. The money market
hardened slightly dip? to the weakness
on the continental exchanges and the
expectation of Egyptian gold with
drawals. Paris exchange on London \
cent lower at 25 for 23c. Berlin rate %
pfg lower at 20044 pfg.
Iron Stocks Lower
Because of Sales
Whenever the New Haven Hail-
mad nr the New York Central nr
the Southern Railway or the Gen
eral Electric Company issue new
securities Mr. Morgan fires the,
ptice absolutely and charges the
companies up to 2% per cent of
the entire issue for doing so.
Other great companies, like the
Union Pacific, the Southern Pacific,
the Baltimore and Ohio and some
times the Pennsylvania Railroad,
go to Kuhn, Loeb & Co. Mr. Mor
gan never interferes with the Kuhn
Loeb companies, and Mr. Schiff and
Mr. Kuhn, of Kuhn, Lo©b & Co.,
are much too polite ever to bid for
any issue of any company of which
Mr. Morgan has the monopoly in
Wall Street. The National City
Bank has its own list of clients and
also always co-operates, but never
competes with the two private
banking firms.
• • *
ALL THIS IS PERFECTLY
REGULAR AND LEGAL. It has
been the rule since railroad financ
ing began as a purely private, in
dividual enterprise. It used to be
nobody’s business what private
terms bankers made with railroad
promoters for the issue of new se
curities. BUT TIMES HAVE
CHANGEO.
Chicago and Cincinnati Take Good
Orders and Home Business
Picks Up.
BIRMINGHAM. ALA., Aug. 30.—
Further sales of pig iron were mad-*
during the week, though the aggregate
was not large. There is further re
duction of accumulations, and if the
movement keeps up, which appears to
be a certainty, there will be but little
iron on the yards of the furnace and
warrant companies by the end of th *
year. There is a large amount being
shipped to Cincinnati, Chicago and
other Western centers. The home con
sumption is picking up a little ami
there is promise of a strong melt in
the very near future.
The quotations are firm at $11 per
ton. No. 2 Foundry, as the minimum.
There is still special brand and spe
cial analysis iron sold at premiums oi
$1 to $1.50 per ton, while small lot*
of iron, immediate delivery, sell at
$11.25 to $11.50 per ton.
Steel operations are active in the
Birmingham district and there are in
dications that the industry is going
to be active right along, not only j
through the year but into next spring
All shapes of steel appear to be in de
mand.
Charcoal iron is quoted between $23
and $24.50 per ton.
The Pennsylvania, the New York
Central and the New Haven Rail
roads are now public institutions.
The Pennsylvania is owned by 85,-
000 stockholders. The issue of new
securities affects the public inter
ests, involves questions of rates,
taxes and practices SUBJECT TO
THE CONTROL OR SUPERVI
SION OF THE GOVERNMENT,
through the Interstate Comemrce
Commission.
The evolution from the old era of
addition, division and silence—of
private privilege in corporate
finance and banking—to the new
era of publicity and public regula
tion is shocking to many high finan
ciers, but Mr. Morgan, by his frank
and polite response to the imperti
nent, radical stockholder. Mr. Hiller,
in the New Haven meeting showed
that he is of the new and younger
generation and that, as the world
moves, he moves with it.
It is a hopeful sign.
NOTES OVERSUBSCRIBED.
A London special says: Canadian
Northern offering of notes was over
subscribed. The issue was 1,500.009
pounds in five-year 5 per cent notes,
and was offered at 98. There is evi
dently a good public appetite for 5 1-2
per cent yielding securities.
TDF 70
Oklahoma and Texas Will Yield
Five Million Bales or Less,
Is Trade’s Opinion.
MEMPHIS, Aug. 30.—Reduced ideas
of the size of the cotton crop are in
vogue since so much confirmation of
losses has developed, although esti
mates as to the number of bales still
are vague. One feature of the past
week in the market has been the sev
eral private condition reports, the av
erage reduction shown compared with
a month ago being 9 to 10 points. At
first there was a disposition to re
gard such estimate*? as extreme, but
the trade at last has come to the
opinion that all of them hardly can
be so far amiss. Usually the Gov
ernment report comes very close .o
the average of the private figures,
which should mean a report next
Tuesday around 70. This would com
pare with 79.6 a month ago, 74.5 a
year ago and a ten-year average of
74.7.
The condition of the crop August
25, 1911, was given by the official
guessers as 73.2, yet the crop turned
out over 16,000,000 bales, which leads
the traders who are favorably dis
posed to the bear side to contend that
there is time yet for the crop to turn
out better than to warrant the recent
high prices. However, conditions :n
1911 were abnormally good during tho
latter part of August and through tho
entire month of September, and thero
has been a suspicion since that time
that the Government made a “miscue”
In putting its September report so
low.
Losses Unimpeded.
There has been no cessation during
the week to the deterioration in Tex
as and Oklahoma, and the chief
source of concern to the spinning
world has come from that. Plenty of
people now think that the crop in
those States will not go to 5,000,000
bales, and some set their expectations
even lower. There have been no
rains of consequence and tempera
tures have been high, the maximum
average for Oklahoma Tuesday hav
ing been 106 degrees. It is believed
that rains right away would do some
good, though for such rains to help
much, ther£ also must be late frost
and good maturing weather.
There has been some further Je-
terioration in sections of the central
belt during the week, though it has
not been important, most of the loss
in condition having taken place ear
lier in- the month. It still looks as if
this district will have the largest crop
in the belt.
The feeling eontinues that the east
ern belt is going to come up with a
large yield, provided there is some
more rain and the frost is not too
early.
Picking soon will be in full sway
over the greater part of the belt, an 1
new bales no longer are a novelty.
There is nothing to hinder rapid prog
ress, and labor is reported ample in
every direction.
Spot Situation Indefinite.
The spot situation Is not we!!
enough defined to allow many positive
statements, though the outlook is for
good demand from the start. Forward
commitments on the part of buyers
and middlemen are moderate, as the
spinners have been lulled into a feel
ing of security by the belief that tho
crop was going to be large. There
has been evidence, however, during
the past week of a changed view of
the situation, for much of the help
toward 12 cents and better for fu
tures has come from the consumers.
The local buyers report that they
have been getting numerous inquiries
from the domestic spinners, chiefly
those In New England, and that It will
be necessary for the Easterners io
buy very soon if they are going to
run their mills. There has been no
evidence In Texas, where receipts
have been fairly h avy, of cotton ro*
ing begging, and quotations have been
advanced until middling is quoted u.t
12 cents or better at all the chief cen
ters.
Money cond'tions are not expectedj
oVinArm'il anfl ihpro will
to be abnormal, and there will th>C
be any occasion for more urgent sell
ing than is usually the case. With
prices up to present levels, however,
the chances favor free marketing.
CAR SHORTAGE IMPENDING.
Twenty-two leading Southeastern
railroad companies issued a warning
to shippers that a serious car short
age is impending. Railroads did not
order the usual supply of rolling
stock this year and the shortage is
now becoming apparent at the begin
ning of the grain movement. In the
Northwest there is also a scarcity of
cars, but this has not been reflected
in earnings.
PENNSYLVANIA’S STRONG BANK
The Financier’s roll of honor if
national banks of the country is head
ed by the First National of Union-
town, Pa., which has a capital of
$100,000 and surplus and undivided
profits of $1,526,420. The National
Deposit Bank of Brownsville, Pa., is
second with a capital of $50,000 and
surplus,and undivided profits of $547,-
549. Of the first ten banks seven are
Pennsylvania institutions.
3%% vs. ?
When tempted to put the results of your sav
ings, which represent days, weeks or even years
of labor, into some questionable enterprise, remem
ber this:
NAVAL STORES
SAVANNAH. GA., Aug 30.—Turpen
tine firm at 39*/ 39'ie. Sale*'-. 675 bar
rels Receipts, 715 barrels. Rosin, firm;
receipts, 1.536 barrels. VVW, 6 25; WG,
6 00; N, 5.10; M. 4.40**4 55; K, 4 10. A.
4.25; I. 4.0004 05; H, 3.9504.00; G, 3.95*/
4.00; E, 4.00; I). 4.00; B. 4.00.
GOOD BUTTER SCARCE.
CHICAGO, Aug. 30.—The scarcity of
fine grades of butter is becoming more
i acute day after day. Extras jobbed
freely at 29 cents and occasional fancy
sold as high as 29% cents to-day. Un
der grades are plentiful and lower. Eggs
are moving slowly at unchanged fig
ures. Butter receipts. 5,610 tubs. Cream
ery extra. 29c; extra firsts, 28c; firsts.
25 >A*/27c; seconds, 24025c; ladles, 24c;
packing stock. 23c. Eggs—Receipts,
7,129 oases; ordinary firsts, 21*/22c;
firsts. 24c; extras. 27c; storage firsts,
22022%c; checks. 10*/. 11c; dirties, 15c.
It is better to get 3% per cent regularly,
with the principal always yours, than to get
perhaps 10 per cent this year and probably
no principal for the rest of the time.
3i/ 2 per cent and Safety is the Safe course to fol
low.
BAR SILVER
NEW YORK, Aug. 30 Rar silver in
London to-day was unchanged at 27%
pence per ounce. To-day's New York
price was % cent lower at 59% cents.
Mexican dollars were 46 0 50.
NEW ORLEANS RICE.
NEW ORLEANS. Aug 30—The rice
market rules active and steady on both
Honduras and Japan clean. Quota
tions on the leading grades follow:
Honduras. Japan.
Head 39405^4 2% 03%
Straights 3%05% 2*403
Screenings 2 02% 2 02%
AMERICAN NATIONAL BANK
ATLANTA, GEORGIA
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