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THE SUNDAY AMERICAN'S FINANCIAL AND COMMERCIAL PAGES
PRESSURE OF FAGTOINFALL
N IS, EXPORTS NEEDED
Such Might Foree Congress to Pass Few Imper
ative Bills, Says Boersianer—Oversea Trade
Certainly Will Not Wait,
By BOERSIANER. -
HICAGO, Aug. 31.—The pressure
‘ of faets which might become
depressives may force Congress
to pass an Imperative bill or two. A
decrease of $350,000,000 in July ex
ports—compared to the foreign sales
in June—is a warning which the fig
ures for August will doubly empha
size.
Overseas trade is something that
will not wait on the pleasure of any
body, at least of all on the shilly
shallylng of politiclans, In normal
times a nation’s ourward bound busi
noss is important enough to give cap
tains of industry concern. Now, to
day, it is of supreme Importance, be
cuuse the percentage of difference be
t\. ecn prosperity and the reverse is
incomparable higher than in a pre
bellum period. Ordinarily, in this
country, a decrease or increase of 10
por cent in commerce spells a boom
or a subnermal condition —represented
mostly by exports. At present the dif
fererce is quite 40 per cent.
Unfortunately, too much thought is
given to personal fences in Washing
ton as the gencral elections approach.
idcbated measures are considered and
voted on not so much per se as how
electors may regard the subject and
tie vote.
Customarfly national legislaters do
not bring a redundancy of wisdom to
& purely economic question. In pre
nomination sessions the limited wis
dom is alloyed by expediency.
These mean remarks allude especially
to discussions of what should be done in
the way of financing Europe that
America's foreign trade may not collapse.
With succeeding days schemes multiply—
row that economists a 8 well as business
moen are disturbed.
+ Of the many proposals heard in and
out of Washington two have arrested the
pltgntion of the informed element. One In
H P. Davisen’s. His s a strong ‘plnn.
vianimously approved by the knowing-—
¥ hich does net necessarily include those
v ho rejected it on prejudicial grounds
fihe other is the KEdge bill, which could
b greatly strengthened by fheorporating
inte it a few of Me Davison's telling
fdeas,
The Fdge mensure proposes many $2.-
000,000 corporations to finance Kurope in
#toad of Mr. Davison's $1,000,000,000; the
former provides for federal supervision
#ans federal participation and guarantee
v liile the latter asks a 26 per cent par
ticipation with a guarantee that is the
more fortified in that the gowernment's
wersonal claim is subordinated. Mr
‘ldn'- bill challenges further debate be
cnuse it empowers the federal reserve
Lourd to nvogn as well as to refuse char
tora.
elu view of some of the recent moves
of the federal reserve board--4mplicit and
explicit-—investors would much prefer to
hiive the government's supervision in the
persons of the federal resorve board
piembers. The government's supervisory
bility—or disability-——may be good or
‘:4; it is a mflmw:ha gov
erament’s guarantee & ble, and
om—
Consumptien of crode ofl by re
finerfes In the United States in 1918,
inoluding crude plus materials re
run, amounted to approximately 377,
000,000 barrels, Of the products
turned out during the year, gasorme
yas the most important, amounting
10 33.47 per cent of the total, or 86, -
000,000 barrels, with an estimated
value of $684,200,000,
The bulk and value of the domestic
g-mduouon of petraleum produsts m
§lB, compiled from data of the bu
ronu of engineering, ofl division, fuel
admimistration, was as follows (000
omitted in “production” and “value’
columus) @
Peor
Prodooct Produeiton, Cent.. *Walne
Gasoline (DbAs. ). ... 85000 3347 $684,300
Xerosene (bbis)... 43,400 12.00 136,400
Gos and fuel (bhia )174,300 4816 385,900
Jobricants (bbls).. 20,000 6.54 158800
Wax (bhis) ...... 1,900 51 44,200
Coke (bbls) ..... 3600 o 8 2,500
Asphalt (bbia) ... 3,500 % 14,200
Others (bbls.) .... 30600 R 65, 8500
Total (bbis) ... 362,300 100.00 $1,486,000
" *Values are estimated realizamtions and
differ stightly for market values
Of the 377,000,000 barrels of erude
o!l used, about 14,700,000 barrels rep
rented loss.
The value of the gasoline output
amounted to 46 per cent of the whole,
'he value of gas and fuel was second
to that of gasoline, representing 26
per cent.
DRUGS AND CHEMICALS
Corrected by Genernl Distributing Ce.,
jants, U, 5. Foed Administratien Licouse
Ne. G-ORIDE
Acid Bepsole, . 8. P. Ib§ 90 @3 100
Carbolie, U. B P, ih, g 1 A%
Phosphoric, U. & P. Ib, JB%
Stearic, D. P. Ib .... 284 20
Tenmie, U. 8 P, Ib L 3 1.4
Tartarie, Cryst, Ib, .. A%
Tartaric, Powd, Ib. .. ATy
Aloehol, denatured. gal A 0 43
U. B P, 100 proof, gal. 476 @ 480
Wood, 96 per cent, gal. 130 @ 138
Allapice, whele, In bags,
DOUE siscsrovsannes A 2 saas
tlum, P, B e B 8 Sl
alsam, Cop. U & P, Ib 96
Coputhia Para, b ..., 30
Porw, 1D ciconnsecese 300
TR D cicigissense 4TS
Burk, Bayberry, Ib ... A 4 A 8
Cottenroot, Ib. ~vus 20 )
Prickly Ash, I» vens 088 a 8 ‘
Beans, Vanilla, Mex., se
lected, b . 435 6.00
Vaniiin, Mex., Cuts, Ib, 300 ’ 3.60
Yanilla, Bourbon, b 2.76 3.2
Vanilia, Tahatti, Ib. .. 186 sase
Berries, Juniper, b &e A 3 A 8
Saw Palmetto, gd, b, .10 18
Cemphor, American, b 3.78 380
Cuassin Bark, 1b sue A A
Chioreform, U. 8 P, Ib 30 2
Cloves, bales, Ib seeee " A 6
Coriander BReod, b o 5000
Coumarin, C. P, 1b ... 475
thhm Tartar, U. 8 P, Ib s 56
Epsom Salts, U 8 P, b 024 Oy
Giyeerine, C. P, drumas,
pound . A @
Gum Tragacanth, No. 1
white, pouund . W @ 408
Leaves, Buchu Short,
ground, Enuml venses 838 8 2.20
Henna, Ib, Senanensn ® AT
B B Liiavaervann 0B 20
enna Tion . A 3 .20
sl Nute, bage, Id, ..., 40 "
megs, 106<1108, Ib. .. 27 28
Vomica, powd, Ib. A 2 AN
being so s a standing Indemnifcation of
whatever mistakes of omission or com
mission the federal reserve board would
make, .
- In its purport, however, the Bdge bill,
with its allowance of numberless cor
porations, Is feasible. With some changes
it can be made to do what the Davison
plan could have done, unquestionably,
with one comyroh:nn:vs.eorporsuon.
Mr. Carranza has made an admission
that should interest British, American,
Freneh, Duteh and Belgian investors. He
admits “we should be glad to . .come to
some agrecment with our creditors whero
by we should be allowed to resume the
payment of interest on an equitable
basis. We do not wish to promise blindly
terins that we can not fulfill, and hope
to convinee our creditors that any agree
ment must be based on Mexico's actual
possibilities.”
“On an equitable basis” and ‘“any
agreement must be based on Mexico's
actuml poesibilities” are Bpanish-American
euphemisms for partial repudiations. In
one breath Mr, Carranza invites investors
and commerce bodles to come teo Mexice,
assuring them of rich rewards in a coun
try of boundless resources—and demands
n compromise on what Mexico already
owen,
This consistency is Indeed a sparkling
Jewel, altogether worthy of the pre-emi
nent statesman who wrote Article 27 of
the Mexican Constitution which provides
“in the nation is vested direct ownership
of all solid mineral fuels; petroleum and
ul) hydro-carbous-—solid, liguid or
gaseous.”
Under the authority of that article the
statesman who earnestly wsolicited the
Mississippl Valley Commerce Association
and the Chicago Association of Commerce
to put money into Mexico, I 8 making
petroleumn companies pay him “‘rentals and
royalties”” for the privilege of taking obl
from lands that have been in the pos
session of private owners for nearly four
years; were acquired for a price admit
ted to be full value paid by the foreinersg
as the first step creating an enterprise
whieh benefitted the people of Mexico in
& hundred ways until the advent of Mr.
Carranza.
. ..
What would the farmers of Pennsylva
nia, West Vlrmnl-h()kmhmn;. Texas and
California, \Ton whose lands 01l has been
developed, think If the people of their
States should adopt constitutions providing
that the 01l was public property and in
sist upon collecting the royalty which
the private owners of the land have here
tofore collected?
No people that 18 not se congenitally
nominal as to be incapable of apprecint
ing the moral character of an act would
undenrtake to perpetrate such a wrong upon
the owners of private property as the
owners of 01l lands; or of lands that yleld
anything from grain te gold; upon the
owners of any property, from.,a bank to a
rallway.
Carranza le well aware that the hold
ers of Mexican governmet honds will not
enter ilnto a wholly unnecessary compro
mise. Mexico In propertion to population
~not to speak of area-—~has the mnollest
national debt of any of the world's com
momwealths, With a fairly able and
stable govermment Mexico were one firm
econoanic basis within a twelve-month,
But the adventurers who are hasten
ing on the chaos in what was once the
southern republic designedly propose im
g:mlo things that their misrule of
nighted selfishness may continue.
West Virginia now ranks higher
than Pennsylvania in both quantity
and wvalue of 01l produced. In 1918
the State produced 7,868,000 burels,‘
valued at $31,660,000, or $4.02 a bar
rel; Pennsylvania produced $7,408,000
barrels, valued at $29,606,000, or $4 a
barrel. West Virginia did not begin
to WUO{\OU until 1876, while oil was
not found ‘Tn important quantities
until 1801, Pennsylvania began pro
ducing oil in important quantities as
eariy as 1861,
The West Virginia fields have de
colined greatly since 1900. In that
year production geached its high
point, amounting to 16,200,000 barrels,
Efforts are being made to find addi
tional eoil producing territory and
some wells have been put down 7,500
feot, but with no success up to the
present time. The theory is that the
rich Clinton sand of Ohlo can wve
reached in the State at a depth of
between 7,000 and 8,000 feet.
West Virginia has produced 204,
475,000 barrels of oil since 1876, The
State's production by years is shown
in the following table, |
1918, ... 7,867,000 1895.... 8,120,000
1917.... 8,379,000 1894.... 8,678,000
1916. ... 8,731,000 1893.... 8,445,000
1916.... 9,265,000 18902.... 3,810,000
1914.... 9,680,000 1891.... 2,406,000
1913....11,667,000 1890.... 493,000
1913....12,129,000 1889.... 544,000
1911.... 9,795,000 1888.... 120,000
1910, ...11,7568,000 1887.... 145,000
1909, .. .10,745,000 1888.... 102,000
1908.... 9,5623000 SRS - 91,000
1907, ... 9,095,000 188¢4.... #O,OOO
1906, ...10,120,000 1888.... 426,000
1905....11,678.000 1883.... 128,000
1908, +..12,809,000 1880. ... 179,000
1902....138,618,000 1879.... 180,000
1901....14,177,000 1898.... 180,000
1900, ...16,196,000 1877.... 172,000
1809, ...13,911,000 1876.... 120,000
1888, .. .13,615,000 e e
1807....18,000,000 Total. .294,475,000
1904, ...123,644,000 1881.... 151,000
1866, ...10,020,000 , |
The West Virginia field produces
ofl which is especially good for luhrl-‘
cating purposes. This oil is worth‘
more than $4 a barrel at the present
time.
ATLANTA LIVE STOCK MARKET,
(Corrected by W, Il White, Jr, President
White Prevision Co.)
flood.(o cholce steers, 850 te 1,000, §.50
@10.00; good steers, T6O-850, 900960,
medium to good steers, 660.760, 50060
9.00; medium to cholee beef cows, 760
860, T HO@S.OO; medium to good cows,
650780, 7,00?’7 §0; good to cholve heifers,
SSO-6050, 7.0087.50, '
The above represents ruling prices for
good quality fed cattle. Inferior grades,
dairy types and rauge ocattle, quoted be
l‘":(odlum to good steers, 700.%00, 7T.50®
£00; medium to good cows, 600-700, 650
@7.00; mixed common cows, 5.26@p6.25;
ood fat oxen, 70085 00; good butchor
gu"!. 7000800, cholee venl calves, 6.50
GBOO, yearlings, 6004650, l
Prime hogs, 1656-225, 18 25§ 10.00; lient
hogs, 130.166, 17-26@18.00; heavy pluy,
100-130, 16.00@16.60; Hght pigs, KO-100,
14.50@ 15 50, ]
~ The above applies to good quality
mized fed hogs .
HEARST'S SUNDAY AMERICAN — A Newspaper for People Who Think — SUNDAY, AUGUST 31, 19.
BondHousesAre
Making Smaller
Commission
NEW YORK, Aug. 30-—lncreased
operating expenses are beginning to
‘l'l,t into the profits of investment
banking firms that devote their en
tire ;activities to the sale of bonds
and short term notes. For this rea
son one Investment ,Eunker declares
there has been a substantial reduc
tion in the profits from bond or short
time note offerings.
Kixpansion in the cost of dis
tributing bonds has resulted from the
necessity of hiring more salesmen
and maintaining a larger number of
’clv.rka. The investment houses are
compelled to have more employees
owing to the fact that issues are now
being placed with a greater number
of IPventou and in smaller amounts
per individual, The head of one prom
inent firm is authority for the state
ment that whereas offerings were
placed in average amounts of $20,000
about two years ago, recent issues
‘have averaged between s§2ooo and
$3,000 per person. A greater amount
of territory has to be covered in dis
tributing the securities, hence the
larger sales forces. The increased
number of individual sales also calls
for more clerical work.
RAILROAD SECURITIES.
While it is true that the bond
‘houses have been handling a sub
stantial amount of new offerings the
profits on railroad securities have
been smaller than for years, owing to
the bargaining by the railroad admin
istration, which has entirely difrer
‘ent ideas than financiers as to what
commissions bankers should receive
for their efforts in disposing of the
obligations of transporttaion com
panies,
In some instances the commissions
offered by the federal authorities
have been so smail as to cause cer
tain New York investment houses to
refrain from bidding for the Issues
through fear that the expense of
marketing them would more than off
set the reimbursement they would re
ceive from the railroad company.
Commissions received from indus
trial compunies have been fewer ne
cause of the fact that those concerns
are by reason of their increased pros
perity able to sell ppeferred stocks
which are more desirable liabintres
than bonds, which are a fixed charge.
Some concerns which have hereto
fore shunned stock offerings are now
undertaking the sale of that type of
investment. Some of them are doing
it openly, while others content them
selves with participating in the syn
dicates, but keep in the background,
because it is known publicly that tney
do not offer stocks for investment.
This was particularly true of a recent
stock offering by aa industrial com
pany.
BOND MARKET DULL.
With stagnation ruling in the gen
eral bond market, the offices of bond
houses are anything . but optimistic
with regard to the immediate out
look. There are more wealthy people
now enjoying vacations, according to
'thn bond dealers, than ever before, so
that no improvement is expected un
til about the middle of September.
Realizing this, most of the firms
have sent the greater part of their
salesmen and clerks away for peri
ods of recreation.
The foreign countries which are
trying to negotiate loans in this coun
try are balking at the interest rates
asked by American bankers, so that
the investment houses expect nothing
but lean pickings the next month.
News From the
Girain Belt
;
| “From all the news on corn at hand
there appears to be no reason to look for
much encouragement on the bull side
other than a temporary rally,” said
Arthur Leask.
o
President Wilson told representatives of
the Nutional Federation of State Farm
| Bureaus there was no disposition on the
part of the government to reduce federal
guaranteed price on wheat.
-5 "
The Raymond News Bureau says: “Re
roru this week tell of droughty conditions
n Illinois, Kansas, Missouri and Okla
homa. Slnce the issuance of these reports
Missourli and Oklahoma have had light
raing, but more Mmoisture is needed there,
Kansas had a fair rainfall the last sow
'dnr-, which should nhave benefited the
vrc:‘p. Ilinols has had a good sprinkling
an the fmot that the crop has been
benefited is reflected in the increased of
ferings of old corn from the farms. The
lowa weekly report was very satisfactory
and that State appears to have buen
favored this year and holding out a most
promising outiook. The government's
woekiy summary emphasizes the need of
rains in many sections to maintain the
present promies in corn. Climatio condi
tions were generally favorahble for the
cutting and threshing of oats and whoat
and this work pmgro-md rapidly. Yielda,
however, continued to show disappoint
ing returna
2 5 &
A Liverpone! cable says: “Prospects of
future improvement in the corn supply sit
uation can be considered quite favorable,
Argentine clearances show a very encour
aging increase over the previous year, and
it is likely & continued good outward
movement will be maintained from this
quarter.”
® 9 9
‘““Thrashing returns !rog\ the winter
wheat belt continue to .show a further
falling off in the crop ralsed,” says the
Modern Miller crop outlook. “Spring wheat
seeded in the winter wheat belt has been
& particularly unfaverable venture, and
advices reccived from some sections say
that the seeding of this grain will not
be attempted again. There I 8 compera
tively little shriveled wheat now coming
from the Bouthwest--in fact, the quality
is better than & few wocks ago, The
Michigan crop is satisfactory in quality
| and_quantity but the cfop of Indians 18 &
short one. Continued unfavorable reports
a 8 to the spring wheat crop are received,
but the total will be u%lo the most recent
estimates for the two Dakotas and Minne
sota. There is further falling off in Mon
tans. Heavy losses have been sustaived
in western Canada.”
s & ®
Summary of reports made by agricultu.
ral representatives to the Ontario depart
ment of agriculture: “Fall wheat In
thrashing out a !ood average ruh!. but
the grain is hurdly as heavy in weight
a 8 usual., The harvesting of spring grains
have been active during the weok, and
in some localities the crops of hoth barley
and oats are already in the barn, As a
rule +all spring grains are light in ‘lold.
with short straw as the results arly
sown flelds have done the best; those
put in later have been more affected by
rust more especially in the eastern part of
the province”
‘ 5 8
Spring wheat thrashing returns are
coming in slowly, accerding to a Minnea
polis grain man. Few complaints of labor
shotage, but expense of thrashing and
handling the crop is very high, Some
thrasing outfits are recelving as high
as S3O a hour in places where wheat yield
is running four or five bushels to the acre
New wheat on market shows wide range
of quality. Very small percentage will
grade No. 1 or No. 1. Largy amounts of
it will welgh under fivty-one pounds, and
being unfit for milling will be thrown into
# feed wheat quality, 8o far little barley
ond onts have heen sent to market and
there & wide range in guality. Corn crop
maintains its previous good condition. |
Automobile Prices Are on |
Another Upward Journey
4 »
While the war was in progress and.
autemobile prices were steadily mounting
higher it was a popular belief that cessa
tion of hostilities would witness reductions
almost as rapid as the advances had been.
It seemed that this belef was justified
when not long after the armistice several
manufacturers announced substantial price
cuts. Since, however, the true coudition
of this country’s automobile industry has
been more clearly recognized. Costs of
labor and material have not declined as
it was expected they would. Many manu
facturers have not been able to speed up
production to the point they had hoped
to reach and the enormity of the shortage
of motor cars, not only here but abroad,
is daily becoming more apparent,
A number of makers have already raised
their prices since the firet of the year
and it seems probable that many more
will follow. In the following table are
listed ten cars, the prices of which have
advanced since January, last, showing
price at the time the armistice was signed,
price on January 1, 1919, present price and
advance since the first of the year:
Price Price Adv,
Nov. 11, Jaun. 1, Present Since
Make. 1918 1919 Price Jan. 1
Cadillac ““8" t0ur..53,620 $3,220 $3,490 $270
Cole “8'" t0ur..... 2,896 2,696 2,795 200
Hudson Buper Six
SONE. . iiioos 000 2300 5,000 ¢
Packard *“3-25"
tOUP. .. ...... ;000 4,800 5,300 400
Paige big six tour. 2,200 2,300 2,400 100
Pecrless ““8” tour. 2,660 2,760 2,900 140
Stearns Knight
Wealth in England
Confined to FFew
An official return just issued by tpo
British Inland revenue devartment dis
closes the number of persons assessed for
British income tax under the different
groups of incomes.
It will be seen from the tabulated
statement appended that in the olasses
of persoms receiving income ranging from
$633 to $1,460, and assessable, no less
than 1,940,000 are entirely relieved from
the tax beécause of abatement and allow
ances, while 2,905,000 persons out of 3,-
346,900 assessed and chargeable for the
ordinary tax, possess incomes not exceed
ing $2,433. Of these, 2,163,000 receive
$1,216 or under., The number of Incomes
:anxing from $2,434 to $12,166 aggregates
41,900.
in the groups assessed and chargeable
with supertax, the total number of per
sons reaches 59,100, of whoin 40,609 are
in receipt of incomes ranging from §12,-
167 to $48,665. Those with $486,650, or
over, total 148,
Taking she total number of all income
tax payers, namely, 3,406,000, and allow
ing for 1,940,000 assessed Dut mnet
chargeable, the number coming under re
view aggregates 5,340,000, If half the
population be deducted as comprising chil
dren and women in receipt of no income,
ghere remain 15,000,000 persons whose
enrnings apparently do not reach $633 per
annum.
Omne interesting fact 18 illustrated in the
official return, namely, that the possession
of incomes of $3.774 and upward is re
stricted to 224,600 persons
The following siatement gives details of
the number of taxable incomes, amounts,
etc.:
Ordinary Taxpayers.
Entirely
relieved w
from tax
by aubate- Charge
ments and able with
Class of income— allowances. tax
$633 to $779........... 1,600,000 900,000
S7BO to $973.........04 390,000 0§30,000
$974 to $1,216.....00000 50,000 443,000
$1,217 to $1,460....... 10,000 303,000
$1,461 to $1,046.......0 s 279,000
$1,947 to $2,433..... a 0 ees 160,000
x 2,434 to $2,919........ ees 92,000
2,920 to $3,406........ 58,000
$3,407 to $38903....... vee 49,300
$3,894 to ‘4.371....... 41,700
$4,380 to $4,866........ .es 35,400
:4,867 to 37.300....... ves 91,800
7,301 to $9,733........ ees 44.800
$9,734 to $12,166...... 28,900
Total ..... m .P.liuo.ooo 3,346,900
Suy ors.
$12,177 to $24,332...... 36,535
$24,333 to $48,665...... ses 13,974
$48,666 to $72,997.....0 vos 4,023
$72,998 to $97,330...... e 1,749
;9?,331 to %1!1,flfl1.... oo 906
121,666 to $145,995.... vos 550
;115.996 to $194,660.... .o 257
194,661 to $243,325.... s 270
$243,326 to $486,650.... . 122
$456,661 and 0ver..... 148
Total ...cococovocnes 59,100
‘Grand totad .......... 1,940,000 3,406,000
| i
| .
Gross Earnings o fCities
.
~ Service Company Gains
‘ Gross earnings of Cities Servece
‘Cumpany for the twelve months end
ed July 31, 1919, were $21,361,105,
‘while the net earnings availabre for
payment of dividends for the twelve
months were $19,301,730. ;
Dividends on preferred stock for
the twelve months were $4,099,874,
‘oompmd with $3,987,296 for the pre
ceding twleve months, leaving a bal
‘am‘e available for reserves, dividends
on the common stock and surplus for
the twelve months ending July 31,
1919, of $13,402,608. .
Gross earnings for July, 1019, were
$1,583,722, with a balance available for
reserves dividends on the common
‘ltO(‘k and surplus of 3‘27.4!9.
‘ For the twelve months ‘ended July
21, 1919, requirements for payment of
preferred dividends were earned 4.70
!tlmu and after providing for all in
terest charges and preferred stock
dividends there was tarned for the
twelve months $50.10 a share on the
common stock.
. Total surplus and reserves of Cities
Service Company on August 1, 1919,
were $41,418,251, while up to August 1,
1919, there had been reinvested In
properties of the company on surplus
income $51,176,381,
' Securities of Citles Service Com
pany outstanding in the hands of the
public August 1, 1919, consisted of
$70,865,446 par value preferred stock;
$34,301,486 par value common stock;
$10,496,000 principal amount series
“I" debentures, and $17,446500 prin
cipal amount series “C" debentures,
The directors have declared the reg
ular monthly dividend of one-half of
1 per cent on the preferred stock, pay
able November 1 to stockholders of
record October 16, and the regular
monthly dividend of one-half of 1
per cent in cash and 1 per cent in
common stock par value on the com
mon stock, payable November 1 to
stockholders of record October 15.
Directors have authorized an addi
tional privilege of conversion of 10 per
ecent of the principal amount of Cities
Service Company Series B 7 per cent
convertible gold debentures held on
August 1 on and after September 1,
This is the eighth such privilege of
partial conversion extended to held
ers of these debentures,
General rains at Great Bend, Kana,
wost to Colorade line; local rains in other
sections of Kansas ‘n\urm!ny’hnllht; two
inches reported in Kaw Valley west of
Topeka and between Kansas Clty and St
Joseph.
a 5 5
“Judging from the action of the market
nlone one would be disposed to believe
prices are go'ng mueh lower.” sald Bugene
Hoyne, '""This is in spite of any real con
dition that exists, Purchasing of any
commodity in the face of the government
fight againet the high cost of valu is not
popular, and with the market started on
the down grade again selling s apt to
continue.” § J
3 tour. ........ 3,600 2,600 2,750 250
Studebaker bix six
tour. ........ 1,986 1,988 3,136 180
Stutz tour. ...... 2,860 2,860 3,100 250
Velie “Biltwell”
tour, ........ 1,690 1,590 1,650 60
*Last April Hudson was roducfi fr
$2,200 to $1,976 but in June t Dl'?';
raised to $2,100.
Curtailed production during the war has
resulted in an estimated shortage of more
than 1,000,000 passenger automobiles in the
United States. Foreign demand is cor
respondingly great. When the war ended
¥rance and England, in order to protect
their manufacturers, placed an absolute
ban on automobile limports. Its own
factories finding it impossible to meet im
mediate requirements, France has com
pletely lifted the ban and Great Britain
announees that for the time being 5,000
motors cars may be imported. It is proba
ble that most of the 5,000 machines that
go into England will be American made
and many more will no doubt find their
way into France. In Japan a few years
ago there were only about a dozen auto
mobiles while today there are more than
3,000 passenger cars and about 1,000
trucks in use. The Far East hoigds possi
bilities which American automobile build
ers are not overlooking.
In the opinion of the trade, every auto
mobile manufacturer in the United States
can deveote himself to capacity production
for the next year or two without having
to worry about finding a market for his
product. In view of these conditions it is
improbable that' prices will go lower for
some time to come. |
Gov't War Surplus
Sale Is Dragging
Sales of army food supplies direet to
the public again draws attention to the
fact that not only in food but in raw
and semi-finished products of many va
rietles 18 there room to give consumers
a chance to participate In bargains.
The process of disposing of the gov
ernment supply of iron and steel products,
according to the Iron Age, is going along
very slowly, Some of the surpluses are
enormous.
Only about 26 per cent of the surplus
on hand January 1 has been disposed of.
At the present rate It would require all
of 1920 to finish the task. The preseat
office of the director of sales was organ
ized January 17, 1919. A:! that time the
surplus on hand in the department was
estimated at $1,933,000,000. About one
fourth of this was sold up to August §,
1919, netting $391,329,119. The sales for
the week ended August 8 were $27,499,.-
514. The total disposition of property,
amounting to $123,345,239, sold prior to
January 1, by other War Department or
ganizations, brings the aggregate amount
received for property disposed of to date
to $614,674,368.
C. W. Hare, director of sales, is still in
Europe with Benedict Crowell, Assistant
Secretary of War. They are trying to
find a European market for supplies still
in Europe, as well as surplus property on
hand in the United States. 8o far they
have only reported progress without defi
nite reports as to actual sales,
The division of raw materials and scrap
surplus is gradually getting down the
totals of iron and steel on hand. The
inventory, dated August 11, shows a total
surplus in this country of 577,121 tons,
divided as shown in the table below,
The surplus of other metals listed in
the inventory includes: Aluminum, 86,000
tons; Babbitt metal, 26 tons; brass, 58,-
391 tons; bronze, 221 tons; copper, 91,333
tons; cupro nickel, 2,541 tons; lead, 9,030
tons; nickel ingots, 67 tons; solder, 13
tons; pig tin, 31 tons; tinfoil, 33 tons;
zine, 30,087 tons; liberty silver, § tons.
Following is an inventory showing some
of the huge surpluses on hand. The fig
ures are in tons:
INGOE .ccoovvvissnmmcnssssssdocsecs $6,870
Billots ...c500000000000000000000..110,388
Sheil forgi sessessssntsnssacscs 584,819
Mlscellauoo:r forging® ........... 56,857
Alloy stosl " ........ccovessccncess 1,762
Galvanized sheets .......,...cc..o 210
Bholl MO .c.cciccocsssvcsssseses $1,074
Gray ron ..ccccccsccvecsccccsaes 127
Armor plate .........Bpecoccssseas 871
Reinforced steel ....x........... 192
Total semi-finished steel, tons... 448,54
Machinery borings and turnings... 924
HoAvY WORINE (csrvnseinsverarace 5038
Heavy meiting nickel steel ....... 720
Nickel =teel borings and turnings.. 1,590
H. 8. toolberl?x“ 1
Misecellaneous m! fron and steel 35
Low phos. Steel ....ceccecvsccscnse 192
z‘l. 8. 101:d1‘...................... 114
8 stee ÜBS ..ovevassssecsases 8,380
(c: IPOR . cc..iveecvececccscnracas 514
Malleable irom .....cccecsesces.e 1,239
Shells In Procesd .....ccceccveceee 442
Miscellaneous SCrapP ...c.ceveveces. 9,350
Total BCFRP .....eccccvecreccess. 36,076
Bpeigeleisen .....ecccccveccvcscacs 769
Ferromanganese .........coeeeeses 37
Forrosllicon ...ccoccevcrcccencecse 246
Plg OB ...coveavecsscccscssscass B 187
ZlroonlUu OF® ccceccccrvesvesrnnns 740
Total raw material, t0n5........ 6020
Barg and rods ....cecsvccvcerscese $8,977
Bructufßl ... ccomeessecestntnss 697
Plates and sheets .......c........ 4,696
Tin and terne plate .....c........ 8,058
BEND cusirrsesasssnsosssosssssrrse 845
Pipe and tube .coceeccscvecrcranes 600
ANgle OB ..ovevccvérsccecsacened 155
Band Yo ..cceesecsssscsscssscone 11
Flat Iron ....cecvevvsvoesscccsccse 445
Adapter steel ......cccovceesseees 1,523
Annealed steel .......c.civenooooo 938
Beveled steel .....cccocovoecoscsece 11
Coll steel ......cccooocooooosooooe 72
Copper clad steal ......ccooooooooe 5
Decard. steel .....c.coceevvvnscnse 38
Flange steel ........coecoooosooooo. 2,008
Gun steel ........cccoovoooooooooo 6590
Machine steel .........ccooooooooo 226
Miscellaneous tool steel .......... 13361
Carbon tool steel .......ceoooosoo¢ 2,724
H. 8, tool steel ........oooooooee 206
Bpring MOl ...iccccesessesisrsnse 120
Bhafting ...ocovevcvessvsnsssvsnse 2
Bessemer Dar® .........ceocennane 86
Total finished steel, t0n5....... 95,502
.
Studebaker Net Running
- At Rate of 40 Per Cent
Net profits of the Studebaker Cor
poration, after deducting federal tax
es, are now running about $2,000000
quarterly, or at the quarterly rate of
10 per cent on the $30,000,000 of com
mon stock, according to a statement
issued by President A. R, Erskime
Although operations of the company
were not in full swing until April,
net earnings after taxes for the first
six months of 1919 exceeded 10 per
cent on the common,
Since July 1 production and sales
show substantial increases in both
automobile and horse-drawn vehicle
divisions,
Automobile Rapidly
Is Supplanting Horse
The department of agriculture reports
the farm price of horses per head on July
15 as $127. This figure, which is close to
the monthly average this year to date,
shows a fairly steady drop from the level
of prices in recent years, as shown by the
following averages (per head):
1030 cioos BRBEOD 7 2016 ... BIDGYND
B evson SOOEO " BBER (ionv. 2BDB
IPLY coveos JORBE o 1918 isiees 2OOM
1916 ...... 130.83 1911 .00 24103
I 8 .uiviv IOLTD 1910 ...... 146,058
*Seven months
The horse is the only important item of
farm output that has not materially ad.
vanced In price In recent years Hin
present farm price of $127 compares with
a high in 1910 of $164. His numbers have
varied little, Increasing since 1910 from
about 21000000 to 21,600,000, —after a
gnin of over 5000000 in the preceding
deeade, Yot during the Interval since 1910
there has occurred not only the marked
advance in price of feedatuffs but alsa the
wir buying of horses which caused export
of nearly 1,600000 horses n the three
yoars to June 30, 1917, a 8 agninst ~ farmer
vearly average of only about 25000,
No mare significant testimony could be
had of the expansion of the automaolile
and the tractor in the past sow years
‘Work and Save’
Is Old H.C. L’s
Deadliest Enemy
After all, there is but ome natural,
powerful and efficient way to lower
the cost.of living. That is by in
’cmlng the production of things
needed to a point where the supply
‘of them is greater than the demand.
This can be accomplished only by
‘more work, and wore efficient work,
‘and by economy of all the people in
‘the use of things. |
~ In the meantime, wages should be
pald on a scale fully adjusting themn
to the level of increased cost of liv-
Ing. |
~ But the labor must be efficient md‘
should be rewarded in proportion as
it is efficient—extra reward based on
extra éfficiency. l
High costs today, to a great per-]
centage of such costs, are due to the
fact that labor, while receiving large
wages in many directions, is much‘
less efficient as compared with what
it accomplished before tpe war. In
some cases, where the "output ha.s‘
been checked up, it is shown that
labor is turning out only 60 per cent
of normal.
If we can ever get our labor up to
100 per cent we shall have such an
increased production of needed things
as will tip the scale of prices steadily
downward—such a production as the
nation brought about when it sprang
to meet the needs of war, and which,
when the armistice came rather sud
denly, showed that we were over
whelming the world with munltions,‘
guns, gas, airplanes, trucks and all
other implements of destruction.—J.
S. Bache & Co. of New York.
.
Swift & Comapny to
. - . .
Maintain 8 P. C. Dividend
BOSTON, Aug. 31.—The official
expectation that the National Leather
'Company will pay dividends at least
equal to the rate being paid by Swift
| & Co. means a minimum of 80 cents a
'share per annum on the stock of $lO
par value. On the present marxet
value of about 20, this minimum divi
dend will be equal to 4 per cent.
There is evegy reason to expect
that Swift can maintain its cash div
idend rate of $8 a year, even with the
loss of the tanning and leather busi
ness. Swift will receive $30,000,000,
representing proceeds of the sale of
3,000,000 shares of National Leather
at $lO a share, which sum can be
profitably* used as an addition to
working capital.
The new National Leather Com
pany will be predominantly a New
England organization. Its president
will be George H. Swift, who 1s 1n
charge of the vast Swift & Co. in
terests in this section of the country.
A. C. Lawrence of the A. C, lLaw
rence Leather Company, and H. J.
Nichols, financial representative of
Swift & Co. in Boston, are other New
England directors and officers.
A composite balance sheet shows
‘the companies forming the National
Leather Company to have had about
$37,000,000 of assets on June 28, with
net working capital of approximately
$22,000,000. This ranks the new com
pany as one of the principal compeu-\
tors of the Central Leather Company.
The big company, with working tap
ital at $76,000,000 on December 31 last,
transacted $95,000,000 worth of busi
ness in 1918. Assuming the same re
lation between working capital and
gross earnings, National Leather's
sales should be about $27,000,000. |
i |
Marine Company May
o
Pay Off Back Dividends
When P. A. S. Franklin, president
of the International Mercantile Ma
rine Company, returns from Europe
in about two weeks he is expectea to
icall a meeting of the board for the
imnuidera.t!on of a plan for paying off
part of the 57 per cent of back divi
dends on the preferred stock.
Rumors current last week stated
that present plans call for the issu
’anm of short-term securities equal
to 32 per cent of the preferred stock.
The company has hesitated about
paying the back dividends in cash
owing to the income tax, but it 1s ve
lieved that a distribution in securi
‘ties would at least temporarily over
come that obstacle. By the time the
notes mature it is expected the in
come tax will be lower than now. If
}pmstnt plans are carried out and the
ghort term issue is made the notes
are expected to be listed on the New
York Stock Exchange.
ROWNTREE BROS.
71 WALL STREET, NEW YORK CITY
Members American Cotton & Grain Exchange
Orders Solicited for Purchase and
Sale of Cotton for Future Delivery
We execute orders to buy or sell cotton
in quantities of ten bales or units thereof, per
mitting you to hedge in less than one hundred
bale lots.
’ Correspondence Solicited
WIRE US YOUR ORDERS
Why the Standard QOil
Revolutionized Its Policy
Jompetition of New Kind Encountered;—Will
Go Extensively Into Oil Produetion.
Financing in Prospect.
EW YORK, Aug. 31.—From 1870,
when John D. Rockefeller be
gan the foundation of the great
est ofl combine, down to within a few
weeks ago, the Standard Oil Compa
nies have pursued a quiet, aggressive,
secret, successful policy of operation.
It has been a policy of control of
an immense business by a few peo
ple and for a few people. “Few” is
used here in the sense of contrast to
the vast number of people having a
voice and sharing the profits of, for
instance, the United States Steel Cor
poration.
But a few weeks ago came the sur
prising news that there was to be a
change in Standard Oil policy.
‘ The Standard Oil Company of New
‘Jersey was to issue $100,000,000 new
preferred stock and list it on the New
’York Stock Exchange.
~ Shortly afterward Atlantic Refining
made a similar announcement.
~ What was the significance of this?
V_Vns it possible that the Standard Olil
Company of New Jersey, probably the
richest company in the world, could not
borrow that much cash to carry on its
business, and therefore was forced to sell
stock ? It was the first time any Standard
oil Company had ever offered any such
‘atock. and no Standard Oil issue has ever
‘been listed in New York.
~ An ex-Standard Oil man, J. B. Catlin,
was asked about the new issues of stock.
'He has shed some interesting light on
the ambitious plans of Standard Oil, and
why the method of issuing stock was
chosen instead of the usual private bor
rowing.
Mr. Catlin began his business career
with Standard Oil of New Jersey. At the
time of being caled into the military serv
jce two years ago he was in charge of
certain affairs in the export department,
where he had an opportunity to study the
'Standard Oil foreign business.
~ He has just been released from the
military service and has taken charge of
the newly organized Standard Oil depart
ment in the Stock Exchange firm of H.
T. Carey & Co., 66 Broadway.
TWO OUTSTANDING FACTS.
‘“Pwo big facts are evident,” said Mr.
Catlin. “The Standard Oil Companies
have revolutionized their methods in or
der to mect a new kind of competition—a
competition more ominous than they ever
encountered before. And part of this new
program wijl, I believe( take the Stand
ard Oil out of an obscure place as a pro=-
ducer, and make it one of the biggest
producers in the world.
“You know the last five years has seen
someé great changes in the oil business.
Tor one thlm;a other big companies have
grown up an accomplished tremendous
successes, not by fighting the people and
opposing the mass, but by taking the
people in with them and getting their
sympathy by way of Issulng stock to the
publie.
“WWhen a company has thousands of
stockholders and unfavorable situations
come up, it has a certain percentage of
the public with it
“Under the former competition, the
Standard Oils gould get along without a
great deal of public sympathy. There
were no other big companies then to bene
fit by their misfortune. 1t is different
now.
MORE FINANCING COMING.
“That is ene reason for the new stock.
And before the program is finished I
think you will see similar financing by
the New York, California and Vacuum
companies. It is only logiecal. All of
them are preparing to do a big export
business—bigger than ever. They are
planning to extend their producing busi
ness. They will from now on take more
risk than formerly, and will need more
public sympathy in meeting foreign com
petition.
“Before the whole program is finishod
I think you will see these companies with
new preferred stocks, and all of them, it
is probable, intend cutting the market,
value of their stocks to about one-tenth
the present price and making an active
market for them on the New York Stock
Exchange.
“This will serve to interest the public
in Standard Oil securities as it has never
been interested before. The stocks have
been so high in price that only rich men
could afford to buy them
“Under the old mernods this suited
‘exnctly. It kept control within easy
‘bounds, Tt prevented any widespread com
plaint agaiast the secrecy maintained in
financial matters. In fact, it barred out
the general public.
“As a producer of ofl, however, the
Ship Your Cotton to
THE COTTON WAREHOUSE CO.
COTTON FACTORS
No Embargo On Our Warehouses. For Rates, Write Us.
Office and Salesroom, 25 lvy Street, Atlanta, Ga,
Local Phone lvy 3277; Long Distance 92976,
8C
What Reduced
Our Exports?
HERE is one thing that
T Wall Street seems to have
entirely lost sight of, and that
is the shipping strike that oe
curred during July, Our exports
to foreign countries decreased
$350,000,000 for that month. Be
cause of the great amount of
agitation about the drop in
French francs, sterling and
Italian lire, the conclusion was
immediately drawn that exports
dropped on account of this big
discount on foreign money.
From authoritative sources, it
is learned the real cause of the
decline was the shipping strike,
and the August figures are ex
pected to show an increase, in
stead of a still further decline,
as has been generally talked
about. This puts an altogether
different aspect on the exchange
situation, If sterling, francs and
lire dropped in July on a smaller
volume of exports in July, with
tha ship strike settled, the Au
gust exports will no doubt im
prove and there will be further
selling of foreign bills here
against commodities. This is
bearish on exchange, but bull
ish on stocks in the same sense
that it was bullish on exchange
and bearish on stocks when it
was generally thought the drop
in exports was due to the drop
in exchange.
Standards will have to take risks just
as do other wildcatters or prospectors. The
Vacuum Company, whose field for re
fined oil ig Africa, Australia and New
Zealand, has contracted, it is understood,
with the Australian government to pros
pect that continent for oil on a royaliy
basis. That is going to take some money,
and seems to indicate that some financ
ing must be in prospect. The company
also sells lubricants all over the world:
NEW YORK AND CALIFORNIA.
“The New York Company operates in
the JFar East—China, Japan, India,
Straits Settlements, Batavia, Singapore. It
will very likely go into extensive pro
ducing business in these countries and 1n
parts of the old Asiatic Turkey. It seems
reasonable to believe it will acquire the
funds for such development by following
the financing methods of the New Jers
sey Company.
“The California Company is in a sim
tlar position. It does a large export busi
ness in addition to exchanging ofl with
the International Petroleurn Company,
whose properties are in Peru. The Cali
fornia Company will undoubtedly also is
sue new stock to extend its field of pro
duction.
“By preparing to extend credits, in ad
dition to carrying on extensive prospect
ing, the Standard Oils will strengthen
their position.
“They have waited a long time to take
this step—almost too long. But now that
they have opened the way, I believe all
the elements are in favor of them, and
they shall still be able to keep the upper
hand to prevent any competitor-—even
Royal Dutch—from monopolizing the new
markets or taking away any of the old
ones.”
ORNE DESK
& FIXTURE CO.
93 N. Pryor St. FPhone Ivy 1158
DESKS, CHAIRS,
FILING DEVICES.
Large Stock. Low Prices.