Newspaper Page Text
10D
WALL STREET FLODDED WITR
CASH: RICH MEN HOLOING
By BROADAN WALL. <
YORK, May 24.—A1l the cap
ital in the country seems 1o have
been torn up from its roois in
* permanent investment places and to be
muhun{ in search of new enterprises.
result is that the stock market in
with cash, Never in the history
of Wall Street was there o 0 much
money avallable nor did there ever
seem to be before so many individuals
secking to get rich quick,
But with all this excitement, Wag
Street louns are kept well in hand an
the technicai condition of the market,
is reasonably strong. Perhaps never
before have so mamy securities been
owned outright. The reason for this is
that a larger percentage than usual jof
the persons who are speculating do not
understand speculation on margin and
by paying for the stocks they are fool
ing themselves with the idea that they
Are investors,
Rich Men's Profits.
The theory orlmnanz proposed in this
column several months ago that rich
men would hold the market up by re
fusing to sell their stock is now gen
erally accepted as a correct one The
great volume of stocks are held by men
who have such large profits that if they
cash Jm they will have to give about
half of it to the Government in the way
of taxes. They prefer to hold the stocks
n.nd risk a loss of profits through reac
tion.
High tuxes must be continued for a
generation and little is to be gained by
refusing to sell. Some large blocks of
stock held for permanent investment
may never be liquidated, but it is safe
to guess that this wl‘thholdini of stock
will soon come to an‘end. There is no
evidence vet of a weakness on the part
of these rich men and for that reason
the market may be expected to con
tinue for several months in its present
abnormal condition.
Everv great war brings a new crop
of millionaires will eounteract to some
Da Ponts that are attracting most at
tention As a rule the greal groups
of millionaires have their wealth invest
ed in real estate, mines or in some
thing that can not be readily converted
into cash. Phe Du Ponts have theirs
in spot cash. There never in Wall
Street was a group of large fortunes
composed so largely of spot cash The
stock market significance of this is
very great. It is making itself felt in
the motors, in the oil and the chemi
cal industries especially,
New Form of Labor.
The operations of the Du Pont group
of millionaires will counterect to some
exient the return of labor)to Europe.
The paople are putting their money into
wulmmtih-.s and farm tractors, trucks
nd me hanical appliances doing la
énmus work. It iz quite probable that
& fust ae the laboring men return to
Hhurene. miechanical means, will be found
for (do'vre the work that they formerly
eaknxed in. 'The net result will be the
eountry will be transformed from a
human Jabor basis to a mechanjcal
.
¥
1
1" |
"
-
The president of one .of the cotton mills
of North Carolina, who hn ugt returned
-
from business trip = Europe report
1Y xecellent outleok sou extile goods 1
test ti United Htat Februur he
wald when business w Tul 1 wa 1
Francoe : t riand Holland and Nean
dinay after orders d got " Cor
tinent Europe will ke all the cotton
goods w ar 1 wnufacture
Manunf res of cotton goads hulk larg
er in ‘foreign trade than, formerly i
official report o | inry hows n that
month export \ od t 3 10,000 on
pared with $10.939.000 a year ag Fix
ports of manufactures of otton for eight
months ended with February compar A
followg
919 sepwenniny $160,627 662
1918 113,265,811
1917 24 RO 204,867
1916 . 68,229,103
1915 . .o 42,674,231
1914 4,770,425
The nerease {8 about 344 per cent Eince
February 1914 Comparatively littie of
It was due to European buying Cuba,
South America, Canada and Australia be
ug the principal buvers in the past eight
montt But the cotton manufacturers
referred to sayv Rurope now wants our
anufactured goods
Films Developed
Mall us your slims fer expert
developing. Our business bullt
on promptness and quality. Mall
orders malled out day recelved.
{‘ull Line Films and Packs.
Branson Sisters Studio
105 N. Pryor St.
Atlanta, Ga.
/ \'v” )
=/ N\
WY \
or R \ \
/ A L
Comtorklratie
I \ sl A . 1 4
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3 E LS
L W) BiR
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NS\, B
‘e 2 A \\s/‘)‘/:{ {
o O T [ R~ S e S R S
e ei‘/&‘m'.. DSt e T’
ONE minute a sultry, stifling room —the -
next, swept by cooling breezes, refreshed
by the magic of a G-E fan.
;\nd thlq ('1"11{."!'7 COStS |0 htt]n‘ tl];n .\‘(\]l
need not deny it to vourself for a single day
Mis the current consumption amounts to but a
small fraction of a cent an hour.
We can supply any style or size fan you
may require.
CARTER ELECTRIC CO. ;1.5
basis, without the slightest loss. 1
This change from human labor (o me
chanical labor is particularly beneficlal |
to the South and Southwest, where Lhe
hot weather has made human labor in
tolerable, |
Oil Industry Sound. |
An important development of the past
weeks has been an investigation of the
oil industry. Reports have been cur
rent of @& surplus In 011. A detalled
investigation has been made, with the
result of quieting the mind of traders
on the q,\‘xullon. There ls a slight ex
cess of heavy fuel oil, but the supply
of light oils is still unders normal
Stocks of light oils were drawn upon
heavily during the war and have not
yot been fully replenished, The uses
of oill are so various that there is not
the slightest danger in this respect. It
may be that some of the new compa
nies that have gone ahead putting down
wells without providing for the sale of
thelr oil may be embarrassed when the
rc-flnir’}f companies refuse to take the
oil off their hands. Stockholders in
those companies that have made pro
vision for selling their oil need have no
worry
uvln? the Rails,
The ruilrgad situation 18 clearing up
rapidly C'd-operation of the Govern
ment and rallroad managers in forming
a car trust to handle all equipment
purchased during the war is a lonr step
toward a square deal, With all that
equipment properly financed, the roads
will be in shape to save themselves.
Sentiment in favor of the organization
of a few transcontinental systems to
use the small roads as feeders is crys
talizing. 'There is little doubt in the
minds of Wall Street bankers that the
roads will soon be turned back to pri
vale ownership, under such guarantees
and control by the Government as will
make possible a square deal both for
the stockholders and for the general
public. Present relations between the
rauilroads and the public are intolera
ble. Transportation is expensive*and
unsatisfactory.
An open market for steel promises
soon to settle the disputed q‘ueauon of
prices, They are just as liable to ad
vance as to decline. Copper is already
showing an advancing tendency. Sil
ver has touched a high record price
in the last few days afler its release
from Government control and has re
acted slightly from that price, The
outlook for all silver stocks is bright.
Electrical companies have much to
look forward to because of the prac
tical destruction of German trade. Ger
many was the great competitor in the
electrical trade. It will be out of the
market for several years at least.
Warnings without end have been is
sued to the public but they hs\\w gone
unheeded thus far. Those who are is
suing the warnings are old-time con
servative bankers who have seen many
happy bull markets go to smash, This
one will go on the rocks without ques
tion sometime, but the rocks now seem
to be far away. It is a time to be care
ful, but experience proves that in Wali
Street the public will not be careful.
Less than $220,000,000 of the $914,000,000
gtandard return due the railway compa
nies from the Government on December 31,
191%, had bßeen pald up to March 31,
1919 Such is the computation of the Bu
reau of Railways News and Statistics from
returns received from 46 companies rep
resenting 107,341 miles of line operated
and 43.4 per cent of the standard return
due for the year 1918
Owing to the fact that the compensation
gontracts under the act of March I, 1918,
have been executed for only 61 of the 161
Class | roads under Federal control, much
difficulty has attended the gathering of
even these partial returns
8o far as received they cover the fol
lowing facts for the yecar to December 31,
1918
Railway companies reporting 46
Miles of line operated 107,371
Standard return, certified $397.069 883
Net Federal rallway income 82,316,896
Federal deficit on operation $114,762 987
Paid on standard return to
March 31 158,061,086
War taxes paid by Government 4,296,016
Total ‘ $142,367,102
Balance due on guarantee 264,766,010
Current assets taken over by
the Government D 1, 1917 491,695,089
Current liabilitic when Gov
ernment took control 4 260,151,669
Balance assets over lisnhilities, §231,643,420
Amount expended by Govern
ment for addition ind bet
termoents 153,225,895
Total balance due 46 com
panies ..$333,083,6356
If these figures refleet proportionately
the condition of the accounts for the re
mainder of the roads taken over, the Gov
ernment still owes approximately $684,-
000,000 of the standard return due on De
cember 31, 1918
GREAT LAKES 8, S, SURPLUS §288,737.
The Great Lakes Steamship Company re
ports A surplus for 1918 after deducting
£1.802,141 for estimated . taxes, disaster
and general expenses of S2BB 737 Barn
ngs from operation were $4,641,027 ""l—
penses $2.624,034, profit $2,016,893 other
income $73.88G and tetal income $2,090,-
878
HEARST'S SUNDAY AMERICAN — A Newsgamr for Peonle Who Think — SUNDAY, MAY 25, 1919,
e Y ..__._-»7_._‘___,.—-———_——————77 —————————————————————— A ————————
? . .
{
Big Increase in
‘Bond Purchases |
§By Californians
LY ST
By BOERSAINER,
LOS ANGELES, May 24.--Ask a cap
italist anywhere In the United Slates
to name the best bond buying com
munity in the country in proportien to
population, the chances are many he |
will mention some suburb of New York
or Boston. To inquire of him what city
has increased (ts ‘mnd investment pow
er above HOO r«r cent within a decade,
it Is certain he will answer, “there is
no such city.” In both replies he is
mistaken,
' The correct replies would doubtless
' surprise everyvbody save well posted
investment experts. Pasadena, an in
,:logc«ndn-m corporation, but virtually a
suburb of lLos Avngefau, buys more
bonds In ratio to inhabitants than any
habitation between the oceans. As
coupon clippers Los Angles have more
than quintupled in ten f'earn. These
'ul,unla‘hmx facts offer also a gllmp.«-‘
of the complexity of the economic as
pects of Los Angeles, which is at onvo‘
one of the youngest and oldest cities in
the country, the youngest in corpora
tional life, among the oldest in that it
has as citizens peason investors from
the wealthy communities of the Hast. |
Not that the demand for high grade
coupon values is confirmed to the re
tircd millionaires from the Kast. Con
servative midwesterners, content with
legs than $1,000,000, fond of congenial
climate and diametrically with an aver |
glon to all that is adventitious money
wise, make up numerically for their
lack of strength as individuals in com
petition with bond buying millionaires.
. .
IMustrating the fiscal growth of lLos
Angeles in another way, there were lnl‘
1909 three loosely termed bond firms. |
Two did not adhere closely to their ti
tle, they dealt in mortgages and stocks
as well. Today the houses that con
fine themselves strictly to bond emis
gions number twenty-—and are busy.
They are establishments of prime stand
l"fi' some branches of Eastern houses,
others purel;l native, each recognized
throughout the coumrr as in the front
rank of the bond business.
The beginning for bond men was not
easy, Promoters of every description
had the ear and consequently the purse
of the Southiand public. A return of|
8 per cent, inclusive, of estate mort
gages was the rule, This almost xrre-‘
sistibly tempting inmterest coincided,
moreover, with offerings by the strug
glers of Kastern municipals bmring‘
from 3% to 4 per cent, and corporation
bonds yinldinfi about b per cent, Purlh-‘
ermore, at the time the KEastern pio
neers opened their booths, a real estate
flurry was on, a boom of stiff interest
rates, of quick turnovers, of incredible
profits, Not one of 25 monied men here
would . consider bonds, especially not
the 2% and 4 per cent, :
But in time the patience of the few
galesmen was rewarded. If you held
the morigage of a friend who was in
a position to meet neither the inter
est nor the principal, having so many
irons in the fire at that time, you
naturally would forego your rights for
another vear or two.
,With bonds it was seen to be other
wige, Coupons could be convenient
ly eclipped and presented to the bank
for rayment. Bonds usually had a
broad market, could be converted into
cash at once, without sacrifice of prin
cipal, and enough persons in Los
Angeles found bonds—however low
the rate—to be sheet anchors in pe
riods of storm and stress to encour
some natural, others inadvertent-—
age the few dealers, Conditions—
changed rLuita quickly for the bet
ter. As the real estate situation be
came stabilized, as oils and mineral
industries generally on the southeast
ern coast improved from an aleatory to
{a stable state, the interest rate de
‘(',]inf‘d‘ at the same time the [ast bid
| ever higher for money. Municipalities
{paid up to 4% to b per cent for funds.
{ Rallways—when they were accommo
| dated at all-—had to compete with the
rate offered by industrial corporations
i Finally the war, with the consequent
| slump in the price of all high-grade
| astern securities. For two years the
| Fmst practically outhid Southern Cali
| fornia in the money market here. Had
it not been for Los Angeles bankers,
; whose fixed policy is to develop coast
!vntrrprlse, the bond houses in Los
,Anm-los had had matters pretty much
their own way. A# it is, the results
are highly satisfactory.
There is little or nosnstitutional buy
{ing of bonds—for the reason cited—but
’tho absorptive quality and «quantity
amazed the head officers in New York
| and Chiecago, and the amazement is al
'ln_\'ml with little drops of envy and
chagrin. Half of our investors are mov
‘lng or are preparing to move to Cali
fornia,” one letter reads. “‘Soon we'll
have to make our headquarters in Los
Angeles.”
. As elsewhere, the Government bond
flotations have been widely educational
here, At leats every other man and
lwonum now knows by possession what
an investment means. The campaign
‘mmle haves of have-nots, made fairly
intelligent investors of savers, fortified
the investment world as a whole and
made good Americans of all.
| \
.
!Book Values Swift
' .
1 niernational $34.26 Share
A mager financial statement of the Clom
panin Swift Internacional, otherwise Swift
International, was cabled from Buenos
Aires after the annual meeting yoslvr«lu,\'.
The statement, the first the company has
ever made, reveals that the stock has a
book value as of December 31 last, of
$34.26 _per share. This compares with a
parity of sls and a market price of S6O.
The statement as of December 31, 1918,
follows:
Assets,
Argentine Argentine
gold. paper,
I Stoeck “investment
| (book value De
| cember 31, 1018) .$61,386,477 ..........
| Sundry debtors .... 13,930,605 . :
Cash in bank .....v ... 20,288
Conversion ... ..a 8,027 . .
Totals . i RN 228,010 3 20,288
[ Linbilities, ‘
{Capital, 1,500,000
‘ shares, sls gold
f BAON ... BB 808000 " i
{ Sundry creditors 21,837,780 e
Surplus 53 annse 90,988,220 oo iaaeny
Conversion A 5 20,288 ‘
L 2 ]
Totals .. ..$65,326,010 § 20,288
1t is impossible from the limited infor
mationy furnished to arrive at any esti
mate u\ earnings. Of the $20,988,229 sur
; plus shown, a large percentage may or
‘muy not be accounted for by the surplus
! accounts of the several companies incor
| porated into the Internacional l‘orpormmn‘
Jast August At the time of the amalga
: mation it was understood the t’omp:am:n‘
Swift de la Plata alone had a surplus of
approximately $8,000,000, :
l In the statement, the Hems “cash ||\‘
bank' on the assets side of the ledger and |
l “conversion’” on the liability side are bal
| anced and merely show the amount of Ar
| gentine paper; the company has in the
| bank This umount, converted into Ar
| gentine gold, is shown opposite the item
“conversion'” under assets ‘
The directors declared dividends totaling
{l6 per cent out of the 1818 earnings, s
per cent payable June 20 to stock of record
May 2, and 8 per cent payahle December
.‘_‘o to stock of record November 8. This
rate is the same as established by the in
!llm! declaration six months ago
jlngersoll-Rdnd Net
1 Fell Off Last Year
! 'The Ingersoll-Rand Company earned
S3O 689 on the common stock iast year, ac
cording to the company’s annual report, is
sued vesterday. Surplus after charges and
Federal taxes amounted to $3.657,172 in
the preceding year the company reported
a surplus of $5,189,785 or §46.22 a share
OEFERS TO BUY MALTING PLANTS,
At the liquidating trustees’ meeting of
the American Malting Company, an offer
wans considered from the American Malt
wnd Grain Company, a Delaware corpo
ration, to purchase the real estate, plants
and appurtenances for $985.000 cash This
offer was accepted by the trustees subject
to the approval of the New Jersey Court
of Chancery to which the entire martter
will be submitted-on May 26 All the
. stockholders of ®he American Malting
Compary have bheen notified of the receipt
and acceptance of this offer, subject to the
anproval of the New Jersey Chancery
{ ourt.
INQUIRY FOR BONDS oHOW:
UECIDED IMPROVEMENT
OR the first time since the latter
F part of November last year im
portant investment bankers ex
press confidence in the development of
a strong and active bond market in the
near future, This expectation is based
on the fact that the sale of the Vietory
loan marks the departure from the
bond market as the chief borrower of
investment capital. Since the United
States entered the war the Govern
ment has practically monopolized the
bond market.
A belief that the bond market will
do better is already findng reflection in
appreciations in quoted market prices
for industrial and railroad issues, par
ticularly those issues which, in addition
to being high class investments, are
sellipg at suoh large discounts to pos
sess the rrobabmy of enhancement in
quoted price,
Railroad convertibles are finding
many admirers owing to the advances
in the prices of .the stocks into which
they are convertible, As one investment
banker points out, an investor must
have supreme faith in the ultimate so
lution of tpe railroad problem to pur
chase railroad shares or convertible
railroad bonds which are simply stocks
on which thj interest is a fixed charge,
Just why railroad convertibles should
appear attractive at this time is a
source of mystery to the average bank
er who declares that the railroad situa
tion i 8 no nearer a solution than it
was months ago, when railroad bonds
were going begging for purchasers at
lower prices.
New Issues Expected.
New issues of bonds are expected to
come in fair volume in the immediate
future, Most of the new offerings are
expected to consist of railroad securi
tieL, the belief being that the indus
trial companies are so strong financially
and their credit so good that they will
be able to dispose of new and pre
ferred stocks. The strength of some of
the industrials may be illustrated by the
fact that the American Bosch #m-to
Company, which several mo 8 ago
sold $1,800,000 of notes to investors, has
nignm‘# fts intention of redemption of
one-third of the issue in the immediate
fature,
One strong spot in the bond market
is the existence of an unusually good
Southern Railway Bonds
Reflect Its Improvement
(From Wall Street Journal) :
The splendid financial progress
made by Southern Railway Company
during recent years has placed its
bonds among the high-grade invest
ment class and has been recently re
flected by an advance in their market
price. This railroad company lis
among eight important roads which
earned more than the amount of Fed
eral compensation for the year ended
March 41, 1919, Southern Railway
Company's Government surplus for
that vear was $5.961,036. >
The most popular tradinz . bond
among Southern Railway issues is the
general mortgage 4 per cent, due on
Aprit 1, 1956, now selling around
68 1-4, to yield about 6.20 per cent.
These bonds are secured by mortgage
on all the property, securities, etc.,
covered by the first consolidated 5 per
cent bonds of the company, but sub
ject to the lien of those bonds. In
addition it is secured by a second lien
on 181 miles of road, a third lien on
259 miles, and a collateral lien on
511 miles of road. They are further
secured by a deposit of securities ag
gregating $24,615,000, |
Tlere are $61,333,000 general mort
goge 4s outstanding. The flmmcia.ll
position of the *neral 4s has not
0008
Southern Rallway.
1900, 00, 8. % . iiiieivsnaseavinesnsra
Dev. and gen, 48, ‘BB ....cocvsenviernss
Mob. & O. col. 48, 88 .....scvvessvssars
Memp. Div. bB, '36 ... ..ccovcevassneness
St. Louls Div. 48, 51 ...cc.vivvvsansness
AL Gt WO B 8 88 il e aaias
Atl, & Qa. 4048, "§& ...iisvmmeninnees
18t Bar. B O "84 . liciiaidivadivinisns
Atl, & Danv. AB, 88 ... iiiiisevedns
BT V. & Oh-D 80 ciiianiiieris
QORS 88, B 8 . i e v v
. Tonn. In. 08 ‘OB . .voiscvverninngsniny
OE. MlGland 38, ‘- . caiasininerasenine
(0. TRO T O "88 . icicoia@eviootieenes
YR ML o 0 B 0 88 ... iiceiaieiaiien
: .
Great Commercial
] . . .
| Field in Philippines
| NEW YORK, May 24.—“The Philippine
Islands offer a vast field for the exten
slon of American industry and commerce
in the Far Bast. We welcome American
capital. We believe in it. Our Government
‘m awake to the great need of the times.”
; This was the reply of Rafael Palma, vice
)prushlt-m of the Philippine Mission, when
asked for a statement relative to c:[)pm'-
tunities for the investment of Ameérican
ecapital in the Philippines. The statement
i® important, because it comes from one
of the three foremost leaders of the party
in power in the Philippines, these three
including Speaker Sergio Osmena, Senate
President Manual 1. Quezon and Mr. Pal
ma, who is Secretary of the Interior of the
Philippines and a member of the Philip
| pine Senate.
| Mr. Palma was born in Manila in 1874,
and has been an important figure in the
political life of the islands since early
manhood. In 1908 he was appointed a
member of the Philippine Commission by
President Roosevelt, which was an evi
j dence of the confidence placed in him by
{ the American Govermment, as the commis
sion was at that time a very important
factor in the governing power of the
islands
Mr. Palma is also an ex-newspaper man,
having been editor of General Luna's La
|lml'»yn-lhh-m»vau which Me. Palma admits
was anything but a quiet occupation in the
stirring days of 1898,
Mr. Palma is a sincere advocate of closer
economic relations hetween the United
States and the Philippines, and contends
this can best he brought about by a final
solution of the Philippine independence is
sue
“The agricultural and commercial pos
sibilities of the Philippines are almost
limitless," saift Mr. Palma, referring to the
openings for both large and small Ameri
can capitalists in the islands “Of the
total area of 120,000 souare miles of rich
tropical tand only 14,000 square miles have
been touched by the plow The 100 000
square miles remain in its primeval state,
just waiting the industry of man to give
up its minersl wealth or to produce boun
tiful erops of sugar, hemp, cocoanuts, ruh
ber, lumber and“all sorts of tropical raw
materials. The Philippines can sustain
from 64,000,000 to 70000000 people.”
Plans Completed for
\ y ’
- Merger of Cigar Co.’s
Arrangements for the consolidation of
;.i‘( cigar manufacturing companies, hav
{ing twenty-foir brands. into a new c‘(vrn~|
{ pany, to be known as the Consolidatcd
|<‘lzur Company, have been completed. The
capitalization of the new concern will con
sist of $4.000,000 of T per cent cumula
{ tive preferred stock and $9.000,000 of com
mon stock. Tucker. Anthony & Co., and
Saloman PBros. & Hutzler have purchased
the securities of the new concern.
The companies ineluded in the consol
idation factories in Tampa, Key West,
New Orleans. New York, Philadelphia,
| Delaware, Cincinnati, Detroit, Poughkeen
i sie, Allentown, Conlay Harrishurg and
(nr‘nrl_v all parts of the United States. The
{ principals of the new concern have heen |
in business about 30 vears, and manufac
ture some of the hest known brands in
the country The consolidation will have
«An annual output of about 400,000, 000 cl-‘
gars,
demand for the Victory Loan notes,
which are being dealt in over the coun
ter in bond houses, but which have not
as yet been admitted to deulln{u on
the floor of the New York Stock Ex
change. Trading in these securities is
not exgectad tg be up#rovpd by the
Stock Exchange until the Government
has announced the allotments on sub
scriptions,
Heretofore there has been a prepon
derance of sellers of Government bonds
followlnhlhg conclusion of each cam
paign, salers, however, say there are
more purchasers than of\lorl and that
they have orders for the gurchue of
blocks of the bonds which they are un
able to fill owing to the absence of
sellers,
There is also a better demand for
Liberty Banhds with less selling. This
con!rzxtn sharwy with the terrific sell
ing which occurred during the last week
of the Victory Loan campaign, when
many persons disposed of their bonds
in order to make good on subscrip
tions for the fifth loan.
West Is Heavy Seller.
Selling has been heavy by the Central
West. While the authorities in the
Kast have stamped out pretty much
the exchange of worthlegs oil and min
ing stocks for Liberty Bonds, the au
thorities in the Central West are said
to have winked at such transactfons,
and thus permitted people to be swin
dled out of their Liberty Bonds,
The matter of taking care of the ma
turity of the Imperial Russian Govern
ment 6% per cent loan of $26000,000,
which matures about the middle of June,
has been taken up actively by local
bankers. Just what disposition of the
maturity will be made can not be said
at this time. Bankers refuse to say
anything except that the matter' is be
ing discussed, While Russia at omne
time had substantial deposits in at least
one importgat local bank, the amount
of funds now deposited here is said to
be negligiblgs
Settlement of the maturity of the
Russian Government bonds maturing in
June is considered to be important
inasmuch as during the current year
many foreign governments are expect
ed to dispose of their securities in this
market. In fact, practically every na
tion in the world is knocking on the
dolnr of the United States asking for
a loan,
only been strengthened by increased
earnings put back in the company.
but also by the gradual retirement of
dvisional bond issues -which were
prior in lien to this issue.
Southern Railway Company system
operates a main line of 639 miles be
tween Washington, D. C., and At
lanta, Ga., of which 521 miles is dou
ble Work on the remaining 128
miles is progressing, In addition it‘
owns many divisions and subsidiary
lines through which it taps nearly all‘
the Southern States. In all it owns
4,342 miles of track, controls 1,330
miles by ownership of securities, and‘
operates a total of 6,982 miles. On
June 30, 1917, company owned se
curities of proprietary, affiliated and
controlled companies having an ag
gregated book value of $69.368,177,
from which it received income in div
idends and interest amounting to
$2,171,272, representing an average
vield of 3.73 per cent on its preferred
stock.
Following is a list of those bonds of
the Southern Railway system, listed
on the New York Stock Exchange, in
which sales have been made. this year,
opening or first prices reached in 1917,|
low prices touched in 1918, and clos
ing or last prices on May 12, 1919,‘
with income return on last price:
1914, 1917. 1918. 1919,
Nov. 28. High. Low. Mayl2. Yield
9834 192%‘ 86 7-8 94 5.33
63 7 59 6814 5.33
75 1815 65 66 7.35
100 1011 87 9114 5.49
8014 84 64 1-8 72 6.01
98 9814 87 7-8 93 5.53
e 9614 821-2 8814 5.36
N 10349 91 94 5.44
8514 84 70 74 5.88
1023 105 96 97 5.36
10314 108 911-4 96 5.25
99 10114 |6 951 5.40
/0 65 51 52 6.95
106 107 100 100145 5.82
1041 108 93 96 5.37 i
Stock Exchange Seat
Of Russell Sage Sold
NEW YORK, May 24.—The wave of
speculation in securities that is sweeping
over the country found reflection in the
sale of four New York Stock Exchange
memberships at new high record prices.
Two of the seats, one being that which
has been held by the late Russell Sage,
brought $79.000 each, while the other two
were sold at SBO,OOO each. The Ilatter
price represents a gain of $4,000 over the
price paid at the last previous sale.
Sale of the late Russell Sage's mem
bership at $79,000 to Robert W. Morgan
represents a handsome profit, inasmuch
as the membership was purchased in 1874
,when the highest price at which any seat
changed hands during that year was $5,000
and the lowest figure $4,250,
. The other seat sold for $79,000 was
that of Louls Wolf, and was purchased by
Charles B. Wiggin.
Phe membership of the late Spencer M.
Maben was sold to Theodore L. Bronson
for SBO,OOO. The seat of Frederick H.
Hovey was sold to Ernest C. Rollins, the
consideration also being SBO,OOO.
Three new members were elected by the
New York Stock Exchange. They are
Henry A. Shatskin, Arthur R. Seligman
and W. Eldridge Tobiaus.
The heavy speculation now going on in
securitfes is causing an unusually large
demand for memberships on the New
York Stock Exchange. Inasmuch as the
number of seats is limited to 1,100, the
t\nquiry is causing a steady advance in
| price. The demand and the continued rise
in price is expected to cause many inactive
members to dispose of their member
ships. listates of deceased members are
also expected to be induced by the bigher
prices to part with memberships which
have been held for many years.
Expansion in the number of securities
listed on the stock exchange require much
( more work by the floor members of com
mission houses. Owing to the wide diver
l sification of orders, the commission houses
are finding that it will be necessary to
increase the number of partners they have
executing orders on the floor of the ex
ochange, and the demand from this source
is expected to exert its influence on the
price of memberships.
—— e
Warns of Dangers
To Leather Trade
NEW YORK, May 17.--Warning to the
leather trade to keep the raw material
{ market well in hand against speculative
}“fiavar" and consequent increases in shoe
prices, which would hurt the trade, has
been sounded hy Fred A. Vogel, president
of the Tanners' Council of the United
States.
““There is not the slightest doubt in the
minds of many of our members that we
have at least eighteen months of splendid
business ahead-of us if the situation is
ndled correctly.”
haMrveVogel said: “Ts, on the other hand,
we allow the situation to get out of hand
and see raw material advancing beyond
all reason, there will come a sudden check
te our business which will be detrimentat
and the effects of which will be felt for
a year to come
“Shoes already are at _unprecedented
prices, and if these advances continue they
will no doubt be marked up several dollars
Ipor pair for th® fall business.”
BY M. 8. McCAULEY,
NEW YORK, May 24.--A concerted
movement on the pmrt of British firms
doing business in both South America
and Scandinavia to obtain Immediate
business by quoting prices felitiously
low, and whicnh it is believed can not
be maintained, is reported by Americans
in those countries.
That the Britishers are making these
low quotations especially when in
competition with Americans seems to
have become a prevalent notion, and
warnings have been sent back to the
United States that quotations to for
eign customers should be made with
these facts in mind.
It is declared that even in cases
where orders have already been given
to Americans, or where by reason of
traffic or other conditions the Brit
ish were not in position to get the
business, British representatives have
told the foreign buyers the American
prices were too high, and that their
own terms would have been more
reasonable,
Move Not Official.
So far no intimation has been made
that the movement to underbid
Americans has any official sanction
from the British Government.
It has been noticed on such a scale,
however, and in such widely scattered
territories as to give rise to the suspi
cion that it js more than a spontaneous
price-cutting spree on the part of 'n
dividual dealers.
Reports from Norway, Sweden and
Denmark are that American firms with
British representatives that sell in the
Scandinavian countries are being sub
jected to a form of enforced competi
tion hg their own agents.
In the case of an American phono
graph company it is reported that its
British representatives are refusing to
appoint agents in any of the three
Scandinavian countries unless the pros
pective dealers agree to handle two
makes of British talking machines
which the representatives also carry.
Should Have Own AFenu.
American firms contemplating busi
ness in Scandinavia are being advised
by persons familiar with that fleld to
appoint their own agents there, instead
of ' intrusting representation to other
Europears.
It has also been found best to appoint
Swedish agents for Sweden, Norwegians
for Norway and Danes for Denmark,
because of the national feeling that
exists among a large part of the popula
tion of all three countries,
Acting on this principle, the Youra
veta Home & Foreign Trading Com
pany has but recently established indi
vidual offices in each of the three, in
stead of maintaining but one branch
for the whele of Scandinavia,
.
oil Men Forced to
. -
Do Financing Here
‘NEW YORK, May 24.—Development of
oil lands in Texas has grown to such
large dimension that the owners of the
oil companies are being forced daily to
come to New York to secure funds to fi
nance their properties,
This was emphasized when it was an
nounced that a New York banking syn
dicate, headed by Merrill, Lynch and
Company, and Hemphill, Noyes and Cem
pany had purchased $1,250,000 of irst lien
convertible bonds of the Crown Oil and
Refining Company, of Houston, Texas.
These securities will shortly be offered
to investors at an attractive price.
*Proceeds from the sale of the securities
will be used in part to complete the re
finery of the Crown Oil and Refining
Company, now in the course of construc
tion at Houston Ship Channel, or eight
miles below the city of Houston. This re
finery will cost SBOO,OOO, and it will have
a daily capacity of 5,000 Dbarrels. The
company is also extending the municipal
railway a mile and one-half to its plant.
Benus fer Shareholders
In connection with the announcement of
the new financing, it was learned that
ghareholders of the company will shortly
receive as a bonus $2,000,000 of additional
stock. This stock is now selling in the
Houston market at from S2OO to $2lO a
share. The par value of the shares will
also be reduced from SIOO to $25. The
convertible bonds will be convertible at par
into the stock at 28%. Trading in the
new stock is scheduled to be started on
the Broad Street curb market today. The
Crown Oil and Refining Company had
outstanding in 1918 an average of $1,600,-
000 of stock on which dividends of 10
per cent were paid in that year.
R. L. Young, general manager of the
company, who has been in the oil busi
ness for about seventeen yvears, and who
looks after the interests of the Atlantic
Refining Company, a former Standard-Qil
subsidiary, in the Goose Creek district, is
in the city completing the financing of the
company. In discussing the Crown oOil and
Refining Company’s affairs, he said:
Financed by Texans
“Since the incorporation of the husiness
in September of 1917, the Crown Oil and
Refining Company has been financed en
tirely by Texas capital. Due to increase
in the company’s production from slight
ly more than 1,000 bharrels per day in 1918,
to its present production of 5,000 barrels
per day, the directors have decided it
was best for the concern to come to New
York for its future capital requirements.
The business of the company has grown
beyond the capacity of the Texas banks
and Investors to .finance it on the big
scale mecessitated by its valuable hold
ings.
The company has producing wells in the
Goose Creek, West Columbia and Humble
districts, with valuable leases in Hull and
Dayton districts.
Mr. Young, in commenting on the de
velopment of the oil business in Texas,
said:
“The development of the oil business
saved the West hecause it came just at
ahout the end of a two-year drouth. The
sale of leases brought a great deal of
money, and now the prospects of crops
this year are very good. Both cattle and
IRON ENAMEL . COMPLETE
| BATH
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See it and you’ll agree that Belcher offers -
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Main 22
F Machi Exports in
March Show Big Increase
March, 1919, exports of agricultural implements amounted to $4,500,9459
against $2,798,696 in 1918 and $4,726,790 in March, 1914, In nin'n montis
ended with March exports totaled $25,638,042 in 1919, 824.992,03!{ in 1918,
$16,717.450 in 1917 and $25,658,295 in 1914,
Exports for March and nine months under chief classes follow:
March— 1919, 1918, ; 1914,
Hay rakes and SBABGTS. .\ . s itisrans . SRAOO. ) .Zf.i,()R.: $ 61563
Mowers and Teapers.......oemeseestastns 1,301,003 463,436 3,651,045
Plows and Cultivators........eoeevisvssees 1,068,095 NS..osۤ 187,205
AN OLERAPE o 0 srvrshasrsirarnsansssdnans 2,090,721 1,415,137 626 057
‘ IR L ivhi il ee R ,$4,500,969 $2,798,606 $4,726,700
Nine Months— 1919. 1918. 1914,
Hay rakes and tedder5..............: .$ 243000 $ 518,000 § 277,000
Mowers and Teapers.........eescvsses 2,365,000 6,536,000 14,876,000
Plows and cultivators .......oeevvvves 7,306,000 6,619,000 4,284,000
AL OEBOPR s iciivs chsssrervinssviansairs 14,724,000 11,319,000 6,121,000
Makely ou vl o ore L s e SRR RN $24,992,000 $26,558,000
The table below has been prepared by the Northern Trust Company
to provide a convenient means of comparing the netincome derived froin
taxable bonds as compared with exempt bonds. It shows the actual net
return from a taxable bond after the normal income tax and surtax have
been deducted. The table covers bonds yielding from 21 to 7 per eent.
These figures are based on the tax for the year 1919, payable March 15,
1920:
| Income. PrCt. PrCt, PrCt PrCt, Pr Ct, PrCt. PrCt, PrCt, PrCt,
~ Net Taxable 314 14 4% 43, 5 5% 6 .k %
| SIOOOO ..............383 390 418 43 462 508 555 6.01 647
15000 ... iiiiilvii3l7 883 408 431 453 400 54¢ 5N B
20000 ..oornriiei.. 318 357 401 4% 446 400 535 580 6.4
A U 3 am 388 411 AR 488 BRI 5 S 8
30000 ...ii00.e.....308 346 380 411 43% 435 6510 563 605
385000 ... .. .....'2OB 340 385 404 425 468 511 5063 0696
GMS iluNes 288 37 308 41 401 3 B e
5000 [....iiizßß 830 331 392 418 A 3 408 OIS SN
80000 oonnnerrrii...Bßß 325 365 336 408 447 487 0528 569
RS [NiitccilsE 3aß 384 313 388 433 4% BN BB
10000 . ... l'i'i's6¢ 304 342 361 381 419 488 495 58
SOOOO [Tiiiiiamy 594 431 349 368 AW 4M: 4 0B
POOOO . ...oiiiaiiUi349 mB4 339 337 300 qOl 4%8 AGk AW N
DD il Ny T 3 S 8 BAs 343 31 411 &M A
150,000 ... rveiit... 208 236 265 280 295 324 3584 383 483
/
crops are doing fine.
“Everybody seems to be prosperous.
Fair-sized towns are springing up almost
everywhere. For instance, in West Co
lumbia, there was about a handful of peo
ple, but the development of this field has
resuited in the migration of between §,-
000 and 6,000 souls to that d#strict. Of
course, the greatest increase in population
has occurred in the Ranger field.”
Asked where all the money being made
in Texas was seeking investment, Mr,
Young said practically all of it was being
reinvested in the vast undeveloped re
sources of that State.
[y 34 Once vou own beautiful
et 1] ’y garments it is not difficult to
>3 | -
A keep them looking so.
4iy 7 1 . 4 .
& s They may be badly soiled
b .
1A or mussed, but Stoddardiz
i XA ing will quickly bring them
5 ( back to new again.
'Ac’..l"/i‘;
s
W :4 We pay return charges on out-of-town
i orders of $2 or more,
! B 126 Peachtree Street
STOD DARD Phones: lvy 43, Atlanta, 43
M
m‘_
Mileage I
By Using STRONG DOUBLE TREAD TIRES
- ___ Strong Double Tread Tires represent
‘.g;‘ BECAUSE quality, value, service, satisfaction.
(21
A\ Strong Double Tread Tires save 75 per cent of your tire cost.
sy Over 3,000 satisfied customers speak for the wearing qualities
“1“ and endurance powers of Strong Double Tread Tires.
fi- Strong Double Tread Tires are guaranteed for 3,500 miles
LI | (standard guarantee).
|m| We give personal attention. Every Strong Double Tread Tire
'. R is inspected before it leaves the stock room. You get what
IYI | vou ask for—there are no substitutes for our one and original
! e Strong Double Tread Tire.
th "i" Our motto is “Satisfaction” and we guarantee it. Satisfied
,',J_'t lr.'| customers are our best reference. .
'jf{bi | Our advertising is not bunk-—it's honest-to-goodness copy. We
LR l, q back it up with honest merchandise and tire value that can
J}-” . not be duplicated at our price.
o K
'".“ Never before have we offered such good values of reconstruct
dfl ed Double Tread Tires for so little money.
...J’EI,." RELINER FREE WITH EVERY TIRE.
i g 0 s THE TUBES ARE GUARANTEED FRESH STOCK
? _.“." STANDARD MAKES.
oo=l | size. Tire. Tubes | Size. Tire. Tubes Size. Tire. Tubes
il :
£ '-! 30x3 ..$ 5.50 $ 1.60 32x4 ..$ 8.26 '§ 2.40 35x4% $ll.OO § 3.15
v “-. 30x3% 6.50 1.76 33x4 .. 8.50 2.50 36x4% 11.50 3.25
[ ___" 31x3% 6.75 1.85 S4xt .. 3.5 2.60 37Tx4% 12.00 3.40
1 ".," 32x31% 7.00 2.00 | 35x4. .. 9.00 2.75 35x6 .. 12.50 3.50
vl MMx3Y% 8.00 2.15 | 36x4 .. 10.00 2.85 ‘ 36x5 .. 12.75 3.65
Sixd .. 800 2.25 ' 34x4% 10.00 3.00 SRB .T 8 3.75
) Send $2.00 deposit for each tire ordered, balance C. O. D
'; $ Tires shipped subject to your examination, State whether §
e "' S. or Cl, plain or N, 'S. is desired—all same price.
f - By sending entire amount of order you can save 5 per cent
s —our special cash order discount.
STRONG TIRE & RUBBER CO.
3019 MICHIGAN AVENUE, DEPT, I, CHICAGO, ILL,
! .
iSwlft Stockholders and
Workers Offered Stoc?
. Directors of Swift & Co. it is announced,
fhn\'o voted to offer stockholders of record
May 31 the right to subscribe to one
share of new stock at par for each five
' shares of old stock owned
‘ It was-also voted to give the employes
the privilege of subscribing to new stock at
\rmr. Allotments to employes will be pro
‘r;nvd according to salary. Employes will
\hv allowed to subscribe to from one to five
shares on this plan.