Newspaper Page Text
16 D
ITKARST’S SUNDAY AMERICAN, ATLANTA. OA . SUNDAY. SEPTEMBER 14, 1!>1S
1
News and Views by Experts of Finance, Industry, Crops and Commerce
Premium on Qualities Above Mid
dling Narrowed — Exchange
Reacts on Political News.
NEW ORLEANS, Bept IS.—The
action of the Senate Finance Commit
tee In postponing the time In which
the Clarke amendment Is to go into
effect until September. 1914. has been
reflected in the cotton market by a
sensational recovery in values
Sharp ee was the break last Fri
day. when the news came that the
Democratic caucus haul approved the
Clarke amendment in its original
form, the rebound has been even
more violent. January contracts in
this market Tuesday selling as high
as 11.82, or nearly 100 points above
the low level touched on the decline
that took place Friday of last week.
Spot markets, too. have shared In
the advance, gains of 1-4 to 1-Jc per
pound having been recorded at in
terior points, while the local spot
market, which had held steady while
the declining tendency was shown at
the close of last week, has advanced
1-4c, middling And the grades below
not having been affected by the
monthly revision of differences Wed-,
nesday. although the premium on bet
ter grades, which are becoming more
f dentiful. was reduced 1-8 of a cent
n fact, middling and the grades be
low were advanced l-16c at the same
time that the higher grades were re
duced 1-8. thus narrowing the dif
fer* ncea.
First Plcklnfls Good.
At the present time the supply of
good grades is dally Increasing. First
P ickings, as a rule, always *ravle
Igh. If the rains which have been
general over the belt for several days
past continue much longer, the effect
will be to lower the grade of the
crop, and later on In the season the
difference In price between the lower
and the better grade* again may
widen.
The advance about 18 1-4 cents on
Tuesday brought out considerable
hedge selling, as well as profit taking
on the part of leading long Interests,
which had been forecast to come to
the support of the market as a mat-
ter*of self protection when the big
break took place Friday of last
week.
Almost a panic was on at the time,
and thousands of hales of cotton
which were being pitched overboard
by weak longs had to be taken care
of by stronger hands. Those big in
terests did not falter, and succeeded
in rallying the market sharply even
before the cheering news from Wash
ington came, which enabled them to
resume bullish operations on a large
scale The whole South responded
to the more favorable turn of affairs
at Washington, and the market Mon
day and Tuesday reminded old-timers
of the swings upward which were of
almost dally occurrence during the
Sully year, until the climax came in
February of that year.
Remember Sully Yeir.
Not a few traders here are asking
themselves the question whether the
ootton market Is In for another Sully
year Some strong arguments are be
ing adduced In favor of the affirma
tive side of the proposition, the prin
cipal one being the admitted short-
tage of the crop in the western belt,
and the fact that the consumption
now Is anywhere from three to four
fnllllon bales larger than It was at
the time the Sully campaign whs in
augurated.
Bears are counting on the heavy
movement that usually takes place in
the fall to depress prices, but they
appear to be Ignoring the disposition
of many planters and farmers to
hold their cotton for 15 cents. Should
the holding movement become gen
eral. 15-cent cotton may become a
reality sooner than some of the trad#
figure on.
Millions of Beef Cattle Can Be Grown
On Waste Lands of Southern Farms
Meat Can Be Produced at 2 Cents Per Pound That Will Sell This
Year for 9 Cents—Pasturing Will Enrich Worn Acres.
By CHARLES A. WHITTLE. —
Georgia State College of Agriculture.
New England Mill
Stocks Show Slump
Tariff Discussion Costs 24 Leading
Issues an Ave r *ne of 16 Points
From 1912 High.
BOSTON. Sept. 10—The tariff dis
cussions have proved costly to the
holders of stocks in the New Eng
land textile mills, although the de
clines in those Issues hive In some
cases been no greater than the losses
suffered by other industrial stocks In
the recent depressed market. The
lower prices have been largely the
result of sentiment, only two of 24
representative mill stocks having had
to reduce their dividends so far. On
the other hand, five mills have In
creased their payments slightly.
The following table shows the num
ber of po’nts which leading mill
stocks have lost from the high prices
of 1912 and from ihe lowest point
touched that year:
Off from
Off fro
Mills.
1812 high.
1912 1 o \
Acushnet
16
10
Am Woolen pfd .
20
4
Arlington . . ..
35
24
Arkwright . . .
8
*7
Butler
IS
17
Chace
12
9
Dartmouth . . .
20
13
I>a\1s
12
10
Everett ....
26
24
GrlnneJl ....
25
12
Granite
8
4
Kilburn
17
11
Lincoln
1
1
Manomet . . .
9
6
Massachusetts .
. ... 16
12
Merchants . . .
3
8
Merrimac, pf. .
. . .. 15
11
Nashawena . .
28
15
Nonquit ....
15
10
Pocasaet
8
1
Potornska ....
16
10
Sagamore . .
10
6
Warnsutta .
15
5
Whitman . . .
31
25
A\erage . . .
16
10
- acvance.
1 h. i\ ‘-rage of these mill stocks
ieclined about 16 per cent as
lompared with the beat quotations
1 a.
Beef rattle will bring 9 cent* per
pound this winter By living up to
Its opportunities the South can pro
duce beef at from 8 to 4 cents per
pound, live weight No other see
tlon of the country can do so well.
The South has great areas of was'*
| land, such as cut-over pine lands,
worn-out farm lands, rough hill
lands, swampy *lowland*, on which
cattle cad graze for nine months of
the year A little cottonseed meal
i cake put In the field accessible at will
will complete the ration of beef cat
tie for the greater part of the year
In the South.
Bermuda grass as a permanent pas
ture, with * Japanese clover, both .of
which will grow on the poorest of
land, constitute Ideal grazing food
These grasses, together with cotton
seed meal, will put on flesh at from
1 1 "1 cents to 2 cents per pound when
pasturage Is charged up at $1.50 per
| month per head
When It Is considered that waste
| land, such as has been mentioned,
would not yield that much revenue
when used In any other way, In fact,
would usually be looked to for no
revenue at all, then will the value
1 of turning waste places into protlt
I by graxing beef cattle be apprecl
ated.
Making Fine Pasturage.
The writer saw only recently a
piece of land that had been abandon
j ed for years, which had been gullied
until only a few scrub pines found
1 footing, now furnishing excellent pas
ture of Bermuda grass. The pines
and blackberry briers had been clear
ed off and thrown In the gullies, some
Bermuda grass was sown on the land
and harrowed In, and the Japanese
clover seemed only to be waiting
the opportunity thus afforded to be
gin to thrive. The land was still
poor, very poor For cropping pur
poses it would he considered worse
than useless But the land Is fur
nlshlng pasture for some flne-bred,
high-producing dairy cows. Of course,
there In big profit In dairying when
milk-producing food is obtained upon
such lands and with so little in
vestment.
Another Bermuda-Japanese clover
pasture has been seen by the writer
created on another gullied, worn and
useless tract of land The gullies are
not yet filled, except by brush taken
from the land. On this tract was a
large herd of white-face Herefords,
the mothers and their calves. They
were turned Into the pasture as soon
as any pasture had appeared In the
spring. They had been fed nothing
else since, except occasionally some
salt. They were living under range
conditions. The cows wore not milk
ed except as the calves, which rang
ed with them from time of birth, at
tended to It. These cattle are round
ed up at the stock barns and fed
silage during the winter months.
Every Advantage in South.
Each year this herd will product
a carload or more of feeders for the
market. Where can calves be raised
and brought to marketing age with
so little coet ? Where can grazing
land be obtained more cheaply? In
w'hut so-called beof-growing section
of the country will bermuda grass or
any other grass of such fine nutri
ent properties grow as successfully
as in the South? In what country
can cotton seed meal be obtained so
cheaplji?
But the advantages are not alone
In pasturage on land that can be ob
tained for a song, but the South has
a distinct advantage in producing
barn feed. In the first place, the
South has a shorter barn-feeding pe
riod. and over a great part of the
South there le some pasturage the
year round. In the second place, the
South can grow silage crops In great
abundance at the lowest possible cos:
Take corn and sorghum, for Instance.
No better silo fillers can be found
Both corn and sorghum have found
their finest development and largest
yields In the South.
Of course, the silo Is the economical
feed supply. Winter feeding with
anything else would be unwise. In
fact, to buy feed with which to "fat
ten cattle, even with the South’s long
grazing season, would mean loss. Th:»
food must be grown on the farm, and
It can not be grown In any form so
cheaply and so good for the cattle as
silage. •
Thoroughbred* Not Necessary,
To obtain the foundation stock. It
Is not necessary to go In for both
pure bred males and females. The
pure bred male crossed on the home
scrub cow Is sufloient. provided that j
the grade bulls arc killed. Wonder*
have been wrought with crossing of
Hereford pure bred bulls or Short
Horn bulls on piny woods cows
Somebody, of course, should have
pure bred females, so that pure bred
sires can be produced and dlssemi- 1
nated for developing beef animals
from the scrubs
For the next few years those who
Introduce the most pure bred sires
Into the South will be the South’s
greatest benefactors of animal hus
bandry.
Of course, it is poor business try
ing to grow beef cattle without hav
ing an animal that will produce flesh
In the largest measure for what he
eats Ordinary, scrub, tick-infest3<i
cattle of the »outh will not fatten
profitably!
Again, It is not worth while to at
tempt beef production with tiokv cat
tle. In the first place, a pure-bred
sire from an uninfested territory will
die of the tick fever when he gets
into tick territory thus preventing at
the outset the foundation for a beef
Industry. In the second place, cattle
of whatever breed are stunted from
their youth up when raised in tick-
infested territory.
The bar to hope Is up against suc
cessful beef raising In the South
where the tick remains Fortunately
the farmers have awakened to the
seriousness of their situation in this
resect and more tick-infested terrl-
tory is being cleared now than at any
tim- since the work was inaugurated
several years ago
It Is easy enough to get rid of th I
ticks permanently, so easy that the
tick can hardly be said to be a serious
obstacle In the way.
Bought Jersev Bulls.
Along with the campaign of tick
eradication the farmers are taking an
interest in introducing pure-bred !
sue*. Where the dairy inclination U
| strong, of course the Jersey and Hol-
' stein bulls are being purchased.
A Georgia community began to get
Interested In dairying only a few
years ago, after getting rid of the
ticks, by Investing in Jersey bulls of
high breeds
The farmers went In for butter fat.
They separated their butter fat and
sold It to the milk and butter com
panies of the larger Southern cities.
They have prospered beyond their ex
pectations A gentleman driving
through the territory said that he
could Invariably pick out the dairy
farmer, solely by the appearance of
the farm land*. There wa* evidence
of prosperity. Increased soil fertility
largely brought about by barnyard
manures from cattle.
These farmers were utilizing th*
skimmed mijk for building up a hop
industry. Thus one step of progress
opens up opportunities for others. All
of the prosperity of the dairying
farmers in that region hangs upon
tick eradication and th# pure-bred
sire.
Aside from th© food value and the
foundation for a live stock Industry
which permanent pastures of Bermu
da and native legumes afford, there Is
the important consideration of the
grazing cattle bringing up the fertll
Ity of the land by reason of their
droppings Can any one think of h
better way to rebuild the abandoned
and gullied lands of the South? The
poor land is actually restoring lt*elf
by furnishing food for cattle that re
turned valuable fertility to it, while
at the same time yielding & profit of
milk and butter through the cattle.
Grass Check* Erosion.
Again an Important consideration
favoring getting Bermuda grass on
the waste lands, especially on the
gullied slopes, 1h that It will serve to
check erosion, hold the fertility which
ha* been created in the land free from
the power of th© rain* to wash or
leach. In doing so the Bermuda is
not only saving the land on which
it grows, but 1* saving the soil of
the rich bottom lands from being cov
ered with washed sand, and saving
the streams from being choked with
accumulation that creates overflow or
swamp land* of fertile acre*.
While Bermuda gras* Is unques
tionably the solution of the perma
nent pasture problem outside of the
bluegrass region, there is widespread
prejudice against it on the part of
farmers The belief obtains among
them that the Bermuda grass Is a
pest which, once In a field, can not
be eradicated, or that, If it Is sown
in one field, it will spread to another
and. after a while, take the farm
Much of this prejudice is without
foundation. Its spreading habit 1#
mo«tly by root and not by seed. Cor
rect cultivation of any land will kill
out Bermuda—that Is, If a crop 1*
cultivated a* It should be in order t
make a good crop of It, the grass will
be killed. Where a Bermuda pasture
Is desired for cultlva’Ion, plowing ir
the fall, a repetition in March, fol
lowed by a harrowing to pull out thj
roots, will serve the purpose. Hog*
turned on the field after the sod has
beeii turned will eat the roots with
relish and thus make away with
them.
It has been found profitable to sow
Burr clover with Bermuda, the Burr
clover furnishing an early pasture
and the Bermuda gras* following to
carry the grazing through for the re
mainder of the season. While cattle
do not readily take to Burr clover,
they acquire a taste for It In the ab-
| sence of other pasture, -and learn to
I thrive on it. Burr clover has an ad-
; vantage as a soil builder over Ber
muda. but none over the Japanese
clover or lespedeza. They are le-
i gumes. therefore nitrogen gatherers.
SI SUIT PUCE
Great Accumulation Indicated by
Production and Influx From
Borrowing Nations.
Rains May Improve
[ Crops in Dry Belt
j Crop Guessers Incline to Small Figures Despite
Recent Helpful Showers.
Putting in of Winter
Crop Essential in South
Putting in a winter cover crop i*
the most important thing for the
Southern farmer to be looking after
d tiring the fall. The great staple
winter cover crop has come to be
oat*. Nothing Is better.
Oats can be sown In the fall be
tween the cotton row-8, three or four
roVs of oats between two rows of
cotton Next spring or In late winter
the oats will furnish light grazing
without harrt^ and in summer pro
duce a good crop of oat*
Of course, the great purpose of a
winter cover crop Is to check the
wash and the leaching away of the
soil fertility during the winter, Enor
mous loss has been going on each
year by reason of bare land* In win
ter. It Is the bane of cotton grow
ing that It leave* the land exposed to
erosion and leaching during a great
part of the year.
By using oats, rye, barley, wheat,
crimson clover, vetch or some other
good cover crop., the Southern farm
er gets two crops off of his land a
year Instead of one. Two crops ob
tained while saving the loas of the
fertility of the soil Is certainly at
tractive economy.
Cotton Mills Hire
All Available Hands
Shortage of Operatives Likely to
Prove Real Handicap If Season
Develops Boom.
‘PROVIDENCE, Sept. 13.—The cot
ton goods market is more active and
the mill men are taking advantage of
w-hat Pome of the more pessimistic
declare Is only a flurry. Every mill
in this vicinity Is running on full
time, and every bit of machinery for
which operatives could be procured
has been put In motion.
The shortage of competent cotton
machinery hands is being felt more
than ever and now it Is certain that
should the coining season develop a
boom the manufacturers would find
themselves «*eriouslv handicapped be
cause of the Inability to get a suffi
cient number of skilled workers.
Increased business this week does
not come as a surprise, because mill
men predicted several weeks ago that
there would be a resumption of trad
ing on a large st ale soon after Labor
Day.
Pacific Syndicate
Closes Successfully
Underwriters Are Required to Take
but 8 1-4 Per Cent of Their
Full Allotments.
NEW YORK. Sept. 10.—With the
completion of subscriptions for the
SS8.357.000 of Southern Pacific stock
trust certificates issued by the Cen
tral Trust Company against a like
amount of Southern Pacific stock held
for the Union Pacific Railroad, Kuhn,
Ix>eb & Co., as managers of the un
derwriting syndicate, have called
upon the members to take up their
share of the remaining stock and to
pay their proportion of the subscrip
tions. Owing to the unexpectedly
large response to the offering, the
syndicate members will have to take
but 8 1-4 per cent of the amounts al
lotted them. This will total about
$7,290,000 of stock, which will be di
vided among more than 600 members.
As the syndicate members receive
2 1-2 per cent commission on the en
tire $88,357,000 of par value, amount
ing to $2,200,000, and pay 92 for the
certificates, the actual cash w-hich
they will be < illed upon to pay will
be but $4,500,000.
The second crop following oats In
the summer Is cow peas as a rule and
nothing better can be grown in the
South. It Is a soil building crop and
will make a larger crop of that which
follows it than would have otherwise
been obtained.
A point about selecting oats. Rust
proof oats alone should be sown. If
the farmer has oats which did not
show ruqt during the past year he
should sow them rather than pur
chase Feed oats the rust proof quali
ties of which he can not absolutely
know as he does those which he has
grown himself.
Another Important point w-hich
does not have to be emphasized after
the experiences of this year’s oats
corn is that the oats be sown not
later than November, preferably in
October. Wherever oats were sown,
early in Georgia there were good
crops this year. Where they were
sown late, that Is, in winter or early
spring, the crop was a failure. The
spring drouth prevented the late
grown crops from getting a good
start, and it w-as the late sown or
spring sown oats that suffered most
from rust.
United States Buys
Corn in Argentina
Price Paid Is Close to Parity With
Chicago When 15-Cent Duty
l6 Considered.
The Corn Products Refining Com
pany h%s purchased about 750,000
bushels of Argentina com at 69 1-2
cents, which on the day of the trans
action was almost up to parity with
the Chicago market, after taking into
consldtsration the 15-cent import duty.
This fact calls attention to the
posltlorf of Argentina as a corn
grower at a time when the domestic
crop has suffered so severely through
drouth and hot weather.
Although the Argentine has figured
ns a w-heat producer for a decade or
more, not until the past three or four
years has it become a consequential
exporter of corn. In fact, from a
position far down the line of pro
ducers in 1910, it last year held sec
ond rank, being exceeded only by the
United States.
.Argentina’s production and exports
of corn for three years show (bush
els): Production, 1912 240.000,000,
1911 260,000,000, 1910 250,760,000; ex
ports. 1912 210,885,000, 1911 438,000,
1910 87,000,000.
Since the first of April there has
been exported from Argentina 93.-
700.000 bushels. Last week’s exports
exceeded 7.000.000 bushels.
The high protective duty on corn
imports and the fact that the United
States ranks above all other* countries
as a producer of corn have naturally
combined against the Argentine find
ing a market for this grain on this
side of the Atlantic, with the result
that a large part of its corn exports
have been consigned to Antwerp.
‘Outside Industrial'
Does Huge Business
Procter & Gamble Gross Sales In
1912 Are $55,OOO.JOO, and Will
Be Greater for 1913.
It is sometimes surprising to learn
the business transacted by what may
be called the "outside industrials.”
enterprises for the most part not in
the popular eye. The gross business
of the Procter & Gamble Company In
1912 w-as over $55,000,000 and for 1913
will probably come very close to $60,-
000,000.
Procter & Gamble was financed in
its beginning through a Imston bank
ing house and in large measure with
New England money. It has been
one of the most astonishing of indus
trial successes.
OHrCAGO, Sept. 19.—A great accu
mulation of gold Is expected in the
world’* financial centers next year,
the Influx from the borrowing coun
tries, added to the production of new
metal, promising to Increase hold
ings In this country, England. Ger
many and France.
Through being denied capital, ex
pansion In the younger countries has
been checked and the tendency of
gold to accumulate In International
markets is marked. In the United
States treasury there Is a stock of $1,-
300,000,000; Brazil has $100,000,000,
Russia, $810,000,000; Argentina $260,-
000.000. and India, $125,000,000.
Borrowing countries have ample
supplies with which to meet matur
ing obligations as well as an adverse
balance of trade at any time bor
rowing is made difficult by conges-
I tlon elsew-here. This year, too. the
world’s output will be about $50,000,-
| 000, which will enable the Reichsbank
of Germany, the Bank of France and
Austrian institutions to strengthen
; their reserves. The Bank of Eng-
1 'and has been fortified strongly and
now- holds about $216,000,000 gold, the
largest accumulation since 1896, al
though the total was closely approx
imated in 1911 and 1910.
The Bank of France, though its
gold reserve is $52,000,000 below the
high record reached in June, 1909,
holds $280,000,000 more than In the
week of 1896, when the Bank of Eng
land reached Its maximum. The Im
perial Bank of Germany never be
fore held as much gold in it* vaults
as It reported last w-eek.
Prevents Undue Stringency.
In reviewing the w-orld’s monetary
condition, the London Statist says
it should not be assumed that the
Influx of gold from so many coun
tries will bring about an extremely
easy money market this year, though
it may prevent undue stringency in
the United States and Europe. In
gauging the outlook of the money
markets, that authority «tiys we have
to take into account the possibility,
indeed probability, that the countries
which have absorbed so large a part
of the world’s gold supplies in re
cent years this year not only will
not absorb their usual quota, but
also may contribute to the supplies
out of their accumulated slocks. In
I the current year the w-orld’s gold
•output will be In the neighborhood
j of $500,060,000, and If. as seems prob-
1 able, the usual demand is lacking
and some of the old gold returns
to the monetary centers. It is obvious
the accumulation of the gold await
ing purchasers may reach a great
' figure It should, of course, be spe-
! cially noted that gold is needed by
! the continent, that the banks of Ger
many, of France and of Austria all
are anxious to obtain supplies of
the metal in order to strengthen their
reserves, and that all the gold coming
to hand from the mining and other
countries will be welcomed for some
time to /■ome.
Crops Need New Gold.
Moreover, we are at the time of
year when currency Is needed in most
countries to move the crops, and the
new- gold that will arrive in the In
ternational markets will be required
to make good the notes and coin
withdrawn for harvesting purposes
In Europe as well as In Egypt. But
It is now- fairly evident that t)fe in
flux of gold from the mines and from
South America and the diminished
demand for gold for I.ndia, coupled
with the release of something like
$50,000,000 of cash from the American
Treasury, will provide abundantly all
the currency neem>d. Where the shoe
will pinch, apparently, Will be In the
borrowing countries, w-hich are un
able to obtain the capital they need,
and are compelled to contract th^ir
qurrency in order to meet their obli
gations.
This is the situation that will oe
met by curtailing activity and by di
minishing consumption.
It should not be assumed that the
influx of gold from so many countries
will bring about an extremely easy
money market In the current year. It
merely may prevent undue stringency
in this country, on the Continent and
in the United States, about w-hich
apprehension recently w-as enter
tained. The curtailment of consumD-
tion, the diminution of trade activity
and the lessened demand for gold are
not likely to have any great effect
upon the w-orld’s money markets un
til 1914, when, if the existing indi
cations persist, we may have the
greatest accumulation of gold in
London. Paris. Berlin and New YorK
1 that bankers ever have had to deal
with. In the first place, there will b*
: the output of new gold at the rate of
$57,000,000 a year. and. for the time,
practically no demand for it. Second,
there may be a further influx of gold
from the borrowing countries, unless
confidence is restored and th?se
countries can obtain the additional
capital they need.
Commodities Prices Off.
Doubtless the great banks of the
world will seize the opportunity of
replenishing their gold reserves, about
which they have been so anxious n
th* last tw-elve months. In consider
ing the outlook, due account must he
had of the falling tendency of the
j prices of commodities One after
another commodities are falling in
j price, and the monetarv pressure i
I the agricultural countries In the cur-
; rent autumn is expected to bring
about an appreciable decline In the
i prices of those commodities whi n
have not yet fallen. If there is a
general fall In prices, much less cur
rency will be needed, and the a
• cumulation of mone*- In the hands of
hankers will be accentuated by the
return of cash from circulation.
A great accumulation of money In
the hands of bankers and exceedingly
low rates of interest can not fail to
have a fresh stimulating effect upon
trade, and it is evident that trade
will not remain depressed for long,
especially as the borrowing coun
tries. hv their shipments of gold and
their ability to meet 'heir obligations,
rill g’ve evidence of their financial ,
sir eng til.
MEMPHIS, Sept. 13.—One of the
question* most discussed by the cot
ton trade during the week wad
whether the rains in the belt, where
the heat and lack of melsture were
Injuring prospects, would do very
much good or Justify enlargement of
crop ideas. The preponderant opin
ion is that they will help somewhat
and, given a late fall and continued
favorable growing conditions, the
yield will be bettered considerably.
There will be Improvement of quality
by the checking of premature opening.
Many bolls which would have been
half-sized now probably will develop
to normal size.
The rains, however, has not yet
been general, though enough have
fallen to check extremely bullish
Ideas and cause a more conservative
view of the situation.
It still is a difficult matter to get a
line on what the trade expects in th*
way of yield, though there Is range jf
Ideas from about 13.500,000 to 14,500,-
000, with more under the minimum
than are over the maximum figure.
At this center most guesses seem
to be around 14,000,000. Prospects
in this section are good, which may
have some effect on the views as io
total yield.
Price Ideas Variant.
How much a crop of 14,000,000 bales
is worth brings no end of argumen*.
All signs seem to Justify expecting the
world to consume as much the coming
year as it did last, provided, of course,
prices do not p-o much higher. It s
not thought prices now ruling are ex
treme, for the average price of mid
dling upland last year was about
12.25c. Quotation* in the belt for
that grade now range from about
12 1-2 to 13c.
The market has been so erratic
since the Government’s condition re
port came last week, the legislative
situation In Washington having been
a big factor, that weather conditions
Standard Oil interests are reported
to have experienced "a change
of heart" regarding the stock
market, and now expect improve
ment before 1914. This i* the
first time since the "dissolution"
of the Oil Trust that Wall street
has heard of No. 26 Broadway
being bullish.
• • •
A professional croupier, who in the
palmy days made the roulette
wheels whirr, observes that al
though the gaming device car
ries 36 numbers, a man can some
times guess correctly, whereas in
the stock market, with only two
ways to go, he can never call the
turn.
• • •
The late James R. Keene made vej*y
few confidants; in fact, he was
known to be confidential to on y
one person, his office boy. At
one time Keene had been ad
vised by his doctor that a baked
apple eaten daily would benefit
him greatly. He told the dr.ead-
ful secret to his office boy, who
was also playing the market.
The youngsters figured that the
time wasted In getting the apple
would mean his absence from the
ticker. So he went to a restau
rant and picked out the most un
palatable-looking apple in the
place. After Keene had eaten it
he conveniently forgot his phy
sician’s orders, and the boy
never had to purchase a second
apple.
• • •
"Of course, we have been guilty
of many wrongs," said the
express company official, "but
the public forgets the valuable
service done by us years ago.
It overlooks the fact that we are
still doing worthy service. We
still find a market for the pro
ducer whose product is not large
enough to warrant a railroad
taking the business. We are
continually finding a market in
one section of the country for
the products of another district.
We have even gone so far as to
send the plants to the producers
and tell them we could find a
ready market for their fruit if
they would raise it. This was
at one time particularly true of
the shipment of straw-berry
plants to Texas. Of course,
after we find the market the
shipments become so great that
a railroad will send cars for
them, then we lose the business
except early in the season when
the shippers can profit by send
ing their produce via express to
the market w-hen prices are very
high. As the season advances
for the product the supply in
creases until it would not pay to
send it by express. The rail
roads step in at that point."
STEEL PASSENGER COACHES
RAPIDLY REPLACE WOODEN
In view of the fact that Rytir bills
are pending In Congress requiring re
placement of wooden passenger equip
ment with steel equipment, the spe
cial committee on r'Hi ions of railway
operation to legislatl- 'made inquiries
as to progress of instruction of
steel and steel underframe equip
ment. Replies from 247 companies
operating 227,754 miles in the United
States and from roads operating 24,-
7US miles ‘n^Canada were received
Between huary 1, 1913, and July
1, 1913, orders were placed by
railways for 1,140 passenger equip
ment vehicles Of these 1,064, or 93.3
per cent, are of steel construction and
76, or 6.7 per cent, have steel under
frames.
INVENTS TOBACCO CURER.
According to a report from Philadel-
phia, a humidifier has been perfected
that wYl cure leaf tobacco in one-quar
ter of the time usually required under
metho<is now used by cigar manufactur
ers. This humidifier is also said to in
sure better cured tobacdo and to de
crease by one-half the operating ex
penses of sweating.
have taken a secondary place. The
weather still Is to be considered,
though the date of frost 1* some way
off. and It will require something ab
normal to be a potent Influence.
The frost will not be very impor
tant, except perhaps in some sections
of the central and over a large pa-t
of the eastern belt, where rains have
kept the crop green and growing. Of
course, a spell of wet weather now
would change the aspect to some ex
tent and increase the Importance of
frost, as a top crop might be a pros
pect.
The market has been dven thrills
by the news regarding the tax on fu
tures, the announcement that It is not
to go into effect until the beginning
of the season of 1914 proving quite
bullish. But it is fell that matters
are not yet settled, and In the mean
time there will be nervousness.
Spots Not Moving Freely.
The spot demand has not yet proven
that spinners are going to buy freely
at the higher levels, and with the
movement Increasing there ha* come
difficulty In sustaining values. With
the speculative support restricted oy
the legislative program, there has
been trouble in taking care of hedge
sales, the latter having increased
when spot demand failed to expand
enough to absorb offerings of the ac
tual.
It Is hoped demnnd soon will take
on larger volume, but that Is one of
the uncertainties. Some talk of pro
ducers holding has been heard, but
not given serious attention, as the
money conditions are against the
scheme, to say nothing of the dubious
wisdom of such & policy so early in
the year.
The fact that the Census Depart
ment’s first ginning report set a new
high record was regarded as indicat
ing early maturity rather than big
yield, though the gains over last sea
son were made outside of the drouth
sections of the belt.
IN 111 MENDS
Illinois Central, the “Hard Luck”
Road, Among the Big Sys
tems Cutting Rates.
In the last two years there have
been unexpected and radical reduc
tions in railroad dividends. The St.
Paul, Illinois Central, New Haven,
Boston and Maine and New York Cen
tral stocks were subjected to sweep
ing reductions. Illinois Central recent
ly joined the ranks of 5 per cent divi
dend stocks, leaving only Great
Northern, Northwestern, Northern
Pacific and the Omaha of the impor
tant lines in the category of 7 per
cent payers.
No one was surprised that the Illi
nois Central dividend was ' lowered,
although the movement of the stock
on the day of the announcement made
It apparent that a reduction of the
semi-annual payment to 3 per cent
Instead of 2 1-2 per cent was antici
pated in most quarters.
In only one year out of the past
seven did Illinois Central show a sur
plus after dividends as much as $1,-
000,000, and that was in 1911, when
the surplus was about $3,500,000. In
1910 there was a surplus of only $182,-
000, while last year there was a defi
cit of $4,250,000.
It was not until 1911 that the road’s
ordeals became so notable that the
property was given the title of the
“hard luck road." for In that year It
became known that the company had
been defrauded of nearly $1,500,000
by collusion between leading officials.
The strike of shopmen put the road
to an enormous expense, and the se
vere winter of 1911 and 1912 added to
the cost of operation, which was am
plified the following spring by flood
expenditures. This year the floods
again wrought havoc, adding to the
obstacles which necessitated the re
duction in the dividend rate.
Stockholders of the New Haven may
not be reconciled to the 6 per cent
dividend they are receiving, but at
least they are convinced that they
can not receive more htan that again
for a long time to come.
With the advent of a new adminis
tration and selection of a new presi
dent there is a certainty that the
property will be subjected to a man
agement radically different from that
of the Mellen regime. It is likely
President Howard Elliott will bring
about a complete change in the New
Haven’s policy to the publlc-be-
pleased plan, although it is recog
nized he will have serious obstacles to
overcome.
Concerning the St. Paul, there ap
pears to be much significance bearing
upon the outlook fo! tlje resumption
of the full dividends. The company
has the distinction of reporting for
the fiscal year just closed a larger in
crease in net earnings than any other
railroad system in this country. The
arrlbunt of net earnings was the great
est in the history of the company,
the total of $27,551,000 being a gain of
$8.339,fF'0 over the preceding year.
That might have been anticipated!
however, as prior to 1910 the Puget
Sound division was not available to
pay its earnings into the treasury of
the St. Paul.
Reports of earnings for the year
ended on June 30 reflected the influ
ence of varied managements. State
ments from the Pennsylvania, Atchi
son and New York Central all showed
smaller net earnings for the Anal
month than in the same time last
year. Pennsylvania’s decrease being
$1.2 2.000, Atchison’s $456,000. and the
Vanderbilt properties «ess than $500,-
000.
While the Pennsylvania’s gross in
crease of $14,900,000 indicated that
fully 10 per cent more traffic had been
handled than in 1912, none of this
traffic added to the profits of the sys
tem. an enlargement of $18,000,000 in
expenses showing how enormously the
road’s cost of carrying and mainte
nance had increased.
One Price, Unvarying Term*,
Sticking to Them, Best Policy,
Say Whitcomb-Burke Co.
Courage, a united front and impar
tiality are the weapon* which the
merchant of to-day must use to fight
the unreasonable demand* of custo
mer*. Development of the courage to
stop growing abuses of credit and
trade courtesies will do more to bene
fit business than will the passage of
the tariff, in the opinion of W. M.
Burke, of H. H. Whitcomb. Burke A
Co., grocery brokers. No. 149 Madison
avenue.
‘Much complaint is heard in whole
sale circles of the unreasonable de
mand* of retail buyers,” *ays Mr.
Burke. "A great deal of this com
plaint is well founded, but an analysis
of it will show that it 1* due for the
mo«it part to lack of backbone on the
part of seller*.
"Indiscriminate canceling, inex
cusable returning of goods, demand*
for unjust discounts, demand* for ex
cessive samples, all these abuses can
be stopped by the use of * little grit
by the wholesaler, an»d be it said to
the credit of Atlanta that the whole
salers here have gone so far In their
campaign against trade abuses that
the unreasonable retailers are getting
fewer every year.
"One thing for a seller to bear in
mind in curbing vicious business
practices is that Brown, Jones and
Smith are having the same trouble.
They are Just as anxious as he Is to
have abuses curbed, and while at first
Brown and Jones may gloat over the
acquisition of accounts which had
been Smith’s until he refused these
unreasonable requests, the increased
annoyances and losses resulting from
these accounts will soon make them
doubt the wisdom of their position. In
the majority, of cases a troublesoms
account is a losing one.
"We have found this—the way to do
business is to make the conditions ol
I the sale clear and definite, and mak*
I it plain that no deviation from thee*
conditions will be conceded. Threat*
of Jost business must not be allowed
to influence the wholesaler. The mer
chant who is not losing money con
stantly through illegitimate leaks 1*
the merchant who, in the long run,
will be able to offer the best mer
chandise at the lowest price.
"Our policy, which has led to suc
cess. is to have one set of prices and
selling terms to all accounts, be they
large or small, and to have the cour
age to stick to them."
New Haven Wrecks
Cost Million in 1912
Report for Twelve Months Ended
June 30, 1913, Sure to Show
Even Greater Losses.
NEW YORK, Sept. 18.—The new
low record for New Haven shares fol
lowing the wreck of September 3 ha»
raised an interesting point as to how
railroads are affected financially by
such accidents. Where the loss of Ilf*
is heavy or where numerous passen.
gers have been Injured, many suits
are brought for damages. Then there
is the damage to roadbed and equip
ment, and finally the loss of prestige,
Pennsylvania has a good record,
despite its occasional wrecks. Last
year was an average year with $666,-
000 charged off for damage to freight
$19,031 for damage to baggage. $60,654
for loss of other property, and $178,506
for injuries to persons. For a 4,000-
mile system that is an enviable rec
ord. For the same period. New York
Central’s expenditures, Including law
costs, were $2,068,000.
New Haven, with only half ot
Pennsylvania's mileage, charged off
$1,129,000 for the fiscal year ended
June 30, 1912, including $346,000 for
damage to freight. $574,000 for in
juries to persons. The forthcoming
annual report for 1913 will doubtless
show a heavy increase in those items,
as the company has had eleven
wrecks during the past year, in which
45 persons were killed and 187 in
jured.
No evidence can be found In the
annual reports of the railroads to
show how much money is spent an
nually in repairing the damage done
to roadbed and equipment through
wrecks, those items being Included in
ordinary repairs. Loss of prestige is
the most intangible of any suffered by
a railroad as a result of accidents,
in cases where one wreck follow, an
other. the cause ran be traced to gen
eral demoralization. By the time tha
accidents occur the road has already
begun to suffer from loss of prestige.
Revival Apparent
In Market for Iron
Large Tonnage Sold for First Half
of September and Quotations
Show an Advance.
BIRMINGHAM. ALA., Rewt. 13^—For
the first half of the month a large ton
nage of pig Iron has been sold by South
ern iron manufacturers, in fact It is
announced two or three of the smaller
makers are out of the market entirely
for a white. There have been several
sales If Iron made for delivery during
the first quarter of the coming vear
The quotations for ole Iron have tak
en on an advance. IlLBO per ton for
No. 2 foundry, being the price now for
delivery during the first quarter of 1914.
The make in this section of the country
Is to be kept up right along. There are
heavy shipments of pig Iron from the
Southern territory, some of it going out
for export. The consumption in the
home territory, too, is good.
Cast iron pipe plants are melting a
large quantity of iron and it is reported
that every pit that can be operated is
to he started up and kept in full oper
ation for some time to come.
Steel is In strong demand and the
various plants are working on full time
and shipping out the product in quan-
tity. The quotations for steel a r e most
satisfactory. There is a demand for steel
wire, fabricated steel, rail and other
shapes.
Charcoal iron commands $23.56 to ir
per ton. Coke is In strong demand.
The jjriea* U*c wekA