Newspaper Page Text
T\ 15
BUSINESS UNDISTURBED;
ANERICAN FINANCE SOLVENT
/1 By BOERSIANER.
CIIEAGO, Feb. 21.—None otissr thun an Englishman—on Englishman
of Duglshmen—is convinced the treaty of Versailles has earted the hay
of old gitioned boundaries and protlems and produced a luxuriant crop of
fresl. ores* has destroyed some autocracies and given such stimulus to
so-callel democracy as to threaten the world with fresh tyrannies of the
part oyr the whole; has disrupted Russia, “probably forever”; wasted the
wealth/and youth of Europe; exaggerated the conception of nationalisia,
and or the whole, lowered that of individual liberty.
Ay economist wold infer from Mr. Galsworthy's view of the work of
Messry. Clemenceau, George and Wilson that the latent cause of deranged
foreign exchange is the Versailles treaty, an inference strengthened by the
perusal of “The Feonomic Conscquences of the Peace,” the work of yet
anothe/ Englishman, Mr. Maynard Keynes. Sterling, franes, lire and the
rest nay rally on diminished imports and augmented exports, but exchange
must abidingly favor the United States unless the Versailles pact is rad
ically revised. Such is the economic deduction, fortified by sporadic ad
missims—started by Lloyd George himself—that the Versailles arrange
wewd is revisable, 1
The ifnsighted corollary is indirect-.
ty confirmed by the American eco
nomiec position. Sterling at 3.18 re
cently and a deluge of exports can
cellations—even of reshipments from
Europe—-failed to provoke a tremor—
here. Business continued as usual.
Evidently European countries will be
heavily handicapped if the treaty
stands unrewvised, and as evidently the
United States will have a tremendous
advantage,
There are other reasons and there
¢ more evidence than those suggested
by the opinions of Mr. Galsworthy
and Mr, Keynes,
NO FAILURE.
Rarely parallel in eoconomic his
tory has been the firm solvency of
American financial institutions
throughout an unparalleled money
erisis and a stampeded liquidation
of securities. The severer test was
in that the crisis was deliberately
contrived and the liquidation openly
andl boldly forced. More; the same
repressive and depressive methods
were and are applied to certain com
mercial branches—with the results
the same as in the brokerage and
banking spheres. No failures, no dis
turbances, no confusion.
At what former period—here or
elsewhere—could a ruthless contrac
tion of accommodation (a 9 per cent
long loan rate) and a brutal dislodge
ment of securitics and commodities
have been borne with such equanim
ity? With this. experience no one,
even with the acute anger of a dis
appointed pessimistic theory, has been
able to find a serigpus lesion in the
eountry’s economic constitution.
NO UNDERTAKING TOO LARGE.
It ghould soon be generally recog
nized that an indomitable energy of
enterprise is the life of America, come
what may, from abroad or from do
mestic sources. A buoyant tempera
ment drives the American into ac
tion. An excellent judgment Kkeeps
him cool in grave danger. His solid
courage is inappreciative of fanciful
risk. H's outlook is not international
—mnot yet international. He is in some
respects amazingly colonial. Not a
few of his prejudices are intensely
provincial — eor chauvinistic. But
within® his own sphere—-the very
large sphere of the United States—
Initial Public' Offering of
40,000 Shares
Rex Seal Products Company
Brown’s Mills-in-the-Pines, N. J. '
Iricorporated under the laws of the State of Delamare.
Authorized Capital 100,000 shares
NO PAR VALUE
Fully Paid and Non-Assessable
No Bonds or Preferred Stock
{HE REX SEAL PRODUCTS COMPANY ,
was incorporated for the purpose of manufacturing on a large scale a high quality of GIN
GER ALE, ROOT BEER, SARSAPARILLA, TABLE WATERS and other non-intoxicating
drinks, however, the magnimity of the charter granted to this company by the State of
Delaware, gives it the right to manufacture all foodstuffs, such as canning of vegetables,
fruit, catsup and all other food products.
Since the National Prohibition Law went into effect July, 1919, the increasing demand for
these beverages has been remarkable. The large profits from the business even before pro- |
hibition can readily be realized from the success achieved by the Coca-Cola Company, which |
was founded twenty years ago on small capital and is said to have returned to the original |
investors more than $100,000,000. |
Numerous other soft beverage companies have made fortunes for their investors, and all
during a time when intoxicating liquors were on sale throughout the country.
With prohibition in force, the demand for Beverages of this kind is increasing daily, and
investors who take advantage of this opportunity will share in the initial and subsequent
profits, as did the original stockholders of the Coca-Cola Company.
PLANT AND EQUIPMENT.
The REX SEAL PRODUOTS COMPANY'S plant is of modern concrete and brick con
struction, thoroughly fireproof and sanitary. It has a total length of 160 feet by 26 feet
width, with an additional wing, 100 feet by 28 feet, providing over 12,000 square feet of
manufacturing floor space. The plant is located on a beautiful level tract of 328 acres of
:zg at Brown's Mills-in-the-Pines, N, J., on the Amboy Division of the Pennsylvania Rail-
PRODUCTION ¥
This Company has contracted for the installation of modern automatic machinery which,
when installed, will permit a daily output of from 6,000 to 10,000 cases.
AVERAGE PROFIT
On the basis of 5,000 cases daily an average net profit of SI.OO (most conservatively fig
ured) will NET the REX SEAL PRODUCTS COMPANY large returns. Profits should
greatly increase with the economy of larger production. This figures approximately
$1,600,000 annually, or an earning power of $156 a share on the entire authorized capitali
gation. Such earnings, within a short time, should warrant dividends of a very liberal
character.
Prospectus and additional information on request.
Subscription Price $lO
he right (s reserved to reject any and all applications and also
n any event to award a smaller amount than applied for.
Yhe abese sintoverts, while not guarantes d, have been obtidned frew what we consid or te be relinkie and suihoritntive seared
K SECURITIES cn.
723-26-28 Widener Building, Philadelphia
FELEPHONES—WaInut 47634.5 Race 3381.2
3 Broadway, New York Direct Private Wires Connecting Offices
THE AMERICAN'S PAGE FINANCIAL NEWS
fno undertaking is too large for the
| American.
The probity which, after every de
duction, is really, as compared with
most active nations, a conspicuous
feature of the American character,
has enabled the American to promoute
home enterprises by a vast and elabo
rate system of credit, based on de
fined trust and tested by verified an
ticipation. Both of the tWwo elements
of credit exist among Americans to
a greater extent than anywhere else
in the world.
A deferred payment for large pur
chases is more general than else
where; manufacturers and whole
salers as a rule give and take very
|la.rge credit. The borrowing and
bankng systems utilize in a high per
centagy the savings and accumula
tions which are not wanted at once
and place them through the interven
tion of bankers and commercial pa
per houses at the command of the
mercantile and active community.
Hence, though the probation of the
last three months has been pre-emi
nently satisfactory—has shown the
peerless economic structure of the
United States. Tt were not well to
put the extraordinary constitution te
further strain.
PRESSURE ON RAILWAY SHARES
" Railway shares—and some bhonds—
have been halved quotation-wise in
the last seven years. Acute pressurs
has been brought on them along with
other stocks since last November. Of
late certain businesses have been pre
meditatively deprived of credit, pur
suant to the egregiously mistaken pol
icy of heavy-handed restriction in a
time demanding a free but steady
rein for all businesses.
A salutary doubt crossed the minds
of the restrictive powers last week.
Bearish markets, they at length per
ceived, engender bearish views on!
commerce. Call money was sudden
ly eased. The President was im
plored to prevent a strike of railroad
emplovees. Work on the railways
bill was accelerated. In more graphic,
though less elegant words, authorities
in money and in politics got cold feet
—an attack which was immediately
beneficial to finance and commerce.
Let it be reiterated, credit is the
lbreath of business. The more and
AIEARST'S SUNDAY AMERICAN— A Newspaper for People Who Think —SUNDAY, FEBRUARY 22, 1920
T R
l :
] |
' |
|
{ ‘ .
| |
| |
| Annual reports of various corpora-l
| tions for the year 1919 are conclusivel
evidence of the great evil of the pres
ent system of taxation and its burden{
on the general public instead of on
the rich and prosperous concerns.
Migures published by concerns in dif
ferent lines of industry show a tre
mendous gain in the average net
aarnings, with only a few excep
tions, as compared with 1914,
Annual reports submitted to date
are only a forerunner of those to
come, but they give some idea of the
wonderful prosperity enjoyed by com
mercial industries during 1919, as all
earfiings reported so far have shown
a substantial increase in the percent
ln.ge of net earnings applicable to the
Junior issues of the respective corpo
rations reporting.
These substantial increases were
recorded despite the high rate of in
come, State and excess profits taxes,
and would appear to belie the repeat
ed statements that the increasedl
wages were largely responsible for
the present high nrices of all com
modities. Increased wages no doubt
have some little effect, but when
compared with the effect brought
about by the present taxation pro
gram it can be considered negligible.
A study of the annual financial
statements issued for the year 1919
reveals that practically all corpora
tions that have issued their reports
to date have allowed for all tax pay
ments in the ultimate price of their
commodities to the consumer. This
practise has passed right down the
line to the retail merchant, and the
final purchaser is obliged to pay the
taxes of all. This results in no one
being hurt to any large extent ex
cept the laboring man, and he, be
coming discontented, demands in
creased wages, which even when
granted do not help him in the long
run, as prices are again advanced,
and he finds his increase goes no|
further than his previous income, I
broader the credit the larger and
stronger the nation—and vice versa,
for if you trust no one you need nev
er be in a fright as to those you
trust, ' .
The deferred payment for extensive
purchases is the primitive element of
financial and commercial credit. It
is this which creates bills of ex
change, promissory notes, drawings,
indorsements: where that element
does not exist there is no occasion
for credit and confidence, everything
is setiled at the time. And when
credit is cut or doubted, money is
withdrawn and locked up.
| Credit and Currency Inflation |
(The following article 18 a suggestive study and analysis of credit and
currency inflation in Great Britain by one of her financial writers, The
remedy for the depreciation in the paper pound, says the writer, is to stop
the manufacture of credit and currency, evcept against the production of
goods, and to regulute the ißsue of currency. In the French Revolution, he
points out, the extraordinary depreciation in the value of the assignts iwas
eventually canceled by the issuance of new notes for old in the ratio of one
new note for 2,600 old notes. Some such measure, he believes, will have (o
be reesgorted to in the case of Russia and Austria, but will not be necessary
or degirable in the case of Great Britain) :
Creation of credit—within limits clearly
‘set by the state of the exchanges—is a
very useful and necessary device of bank
inf. But there is a world of difféerence
between credit created against goods,
which is li%\:ldatud within a very short
time and which is limited by the state
of cxchanges, and credit created for an
indefinite period against nothing more
substantial than government securities—i.
¢., promises to pay.
“In order to distinguish between the
two forms of credit, ohe might describe
the former by the more moderate term
of eredit expansion, and the latter by that
of ecredit inflation, singe credit created
against governmet paper represents
nothing in production, but merely an ad-
STATE BANK NOTE CIRCULATION.
(Basis $5 to £l.)
End of 1"8' End of 1919 Increase.
Bank of France ...........+5+..51,336,936,000 $7,487,849,200 $6,150,914,200
gank of GErMAaNY ...csesvnvesss 1,801,478,000 7,770,000,000 6,508,525,000
reat Britain ........c.scoooooo 1,373,085,000 2.&23.656.8.5 749,470,895
*United Stated ......scoenceeve 11,060, 000 2,805,000,000 2,792,9650.000
Bank of Sweden .......eOOOOOO 79,725, 000 207,660,000 127,935,000
Netheriands Bank ............ 187,130,000 774,000,000 240,420,830
Bank of S}gmln Lssssngasanensvy GRROLE TR 774,000 000 380,985,000
Bank of NOPWAY ..ccocscscerss 36,950,000 118,085,000 81,115,000
Bwiss National ' .....coeovoouee 91,180,000 19’,3‘",360 108,709,360
OB . i iseininiineneravis. . TEERRELEND 2,890, 20.000 2,171,360,000
Bank of Denmark ......eceess §7,395, 000 121,020,000 62,625,000
Bank of JApAN .....-ecsvees.-. 192,795,000 548,260,000 365,465,000
$5,749,375, 000 $25,481,850,285 $19,732,476,000
*Federal Reserve Banks. ‘
(The note circulation figures given by |
the Federal Reserve Bulletin are: De- |
cember 31, 1914, $16,000,000; December 1,
1919, $2,881,000,000.) ‘
““This enormous increase in the supply |
of paper currency is a measure ¥ the
eredit requirements of the belligerent coun- |
tries. It represents the apex of the in- |
verted pyramid of the credit structure We |
have not the necessary materinl avail- !
CHANGE IN GO LD RESERVES.
T e
End of 1914,
Bank of France ........ $847.000,000
Bank of Germany ...... l!x.000,000
Great Britain .......... 490,000,000
*United States ......... 238,500,000
Bank of Sweden ........ 30,000,000
Netherlands Bank ...... §0,500,000
Bank of Spain .....ceeoo 114,500,000
Bank of Norway ...... 11,600,000
Swiss National -........ 47,500,000
SIBEE . isinseaiisnarnnes 348,000,000
Bank of Denmark ...... 26,500,000
Bank of Japan ........ 109,000,000
$2,876,000,000
~ *Federal Reserve Banks.
(The figures on gold reserves, as re
ported in the bulletin issued by the Federal
Reserve Board, are: December 31 ‘B“'
$241000,000; December 5, 1919, $2,087,000,-
L 3
“Thus whereas in 1913 the aggregate
note circulation of these dozen countries
was covered in gold to the extent of 53
per cent, at the present time the
proposition is down to 20 per cent.
During the six years the production
of gold was about $2,600,000,000, but the
increase in the banks’ reserves, it will
be seen, has been greater than this,
owing to the withdrawal of gold from
circulation. In England our note cir
culation is covered by gold to the extent
of 27 per cent.
“It may be asked, why has the note
circulation in non-belligerent countries in
creased since these countries have not
found it necessary to create credit for
war expenditure? The answer is that
credit creation is international in its
effects, i
“The great manufacture of buying power
INCREASE IN FOOD PRICES,
(Meuthly Avernze Index Numbers.)
July, 1914, 1916, Now
United WinEAoOmM ...covecvovenrsssianes 100 161 222 (284)
Franc® ...ccccoevesvvsscsccscssssses 100 132 270 (330)
RCARY sisiuiinavsesvssslißecesnitnsssit 160 137 285 (365)
United States ....ccocevcescoasssonse 100 109 185 (206)
CRREAR civivosvrvinasbroossrssgrvobe 100 114 193
AuStralia ... ccvvvevssncanssnssornnse 100 130 148
New 7Zealand ...c.occecccecoccssssnns 160 119 148
INAIA .....cosevooososoocscesssccanns 100 , 110 1654
NOTWAY ..vsvecstscnsssssassscsssnnse 100 160 278
SWeden . ..ccciierrsrerssnnsstssassease 100 : 142 109 (339)
DenMATK sesesscessssssssssnssnssnne 100 146 212
HOUANA ..cocvvecsosssssssrscsscnasee 100 ‘3l 5 208
BWItROrIADA ccoccocssssbssncsosnsnssse 100 141 260
“The figures in brackets in the last
column represent the increase im wholesale
prices in 1913, .
“Fhe remedy for the depreciation of
the paper pound is obviously to stop the
manufacture of credit and currency except
sgainst the production of goods, and to
regulate the issue of currency. In the
French Reveolution the extraordinary ‘ge
preciation in the value of the assignets was
cventually cancelled by issuing new notes
for old in the proportion of one new 'note
for 2,600 old notes. Some such measure
will have to be resorted to in Russia
eventually, and possibly also in Austria. It
was done in Mexico in 1916,
“In England no such heroic measure 18
necessary or desirable, The funding of
the fioating debt would greatly reduce the
smount of credit inflation, and cause cur
rency notes to be returned and cancellsd,
That would automatically cause a rise in
the value of the remaining supplies of
¥ -
Stock Exchange Lists
Additional Securities
The Atlantic Refining Company has liste
ed for trading on the New York Stock Ex
change $18,445,000 7 per cent cumulative
non-voting preferred stock of SIOO par
value and $2,028,200 common atock of §IOO
par value, all of which have been issued
and are outstanding in the hands of the
public. The preferred stock is part of
an authorized issue of $20,000,000, and the
common of an authorized issue of SBO,-
000,000,
Other listings include $25,000,000 tem
porary b-year 7 per cent convertible gold
coupon bonds, for $5600 each., of the Con
solidated Gas Company of New York; $15,-
000,000 25-year 634 per cent redeemable
sinking fund gold bonds of the City of Co
?enhaxeu. due Jul{ 1, 1944, and $2,000,000
per cent cumulative preferred stock, par
value $256, of the Hackensack Water Com.
pany.
Loew's Incorporated haas listed additional
temporary certificates for 42,857 shares of
its capital stock without nominal or par
value with authority te substitute perma
‘nent engraved certificates. , This stock was
fssued for the acqulslllon of the Metro Pic
tures Corporation,
she U. 8, ‘Rubber Company has listed
$9,000.000 additional common stock, which
was issued for the payment of its stock
‘dividend of 121, per cent declared January
8. This brings the total listed up to gll,-
000,000 of an authorized iasue of $200,-
000,000,
»
Allis Chalmers
.
Earings Smaller
The Allls Chalmers Manufacturing Come
pany, Inc., reports sales hilled umuurlln(
to $6,329,472, compared with $7,567,083 In
the corresponding preceding three months,
| Not profite after deducting nll expenses,
including reserve for fodernl taxes, Wwere
$760,4356, contrasted with $916,700 In the
preceding three months, $926,945 in the
second quarter of last year, §996,025 In the
three months ended Mareh 351, last, and
$766,458 in the quarter ended Dec. 31, 1918,
Unfilled orders as of Dec, 31, last, are
roported as ngpronmuely $16,000,000,
gainst 314,642,704 on September 50, last;
March 31, last, and $23,154,000 oti Dee
| cember 31, 1918,
| e ————
BTOCK EXCHANGE SEATS DECLINE
Feats on the New York Stock Exchange
fluctuate in price with the stock moves
ments. At the height of the bull moves
Mnt last year the memberkhi price
reached the high recerd of th.g”. but
have now sold off te 302,000, which wns
puld by Rertwal C, Reld for the seat of
Charles Morgam Prior to this salg the
woat of C. Edmund Van Vieck Jr. was
trangferred to C. Prentiss Andrews for #
conslderation of SIOI,OOO, and that of Har.
eourtt N Trimble to Hussel O, Cooney for
205,000, Other membershipy have sold at
SIOI,OOO and $103.600 since the high rec
|(,rd was reached last year
dition to buying power with nothing more
to buy.
‘AB the banks must he able to in
crease their supply of currency readily in
order that they may be able to create
the vast credits a government requires in
order to finance an expenditure ruch in
excess of its revenue, there must be an
unrestricted supply of currency, and the
only form in which there can be an un
restricted supply of currency is that of
paper--hence the flood of paper money
throughout all the belligerent countries
during the war period.
“All the principal countries of the
world inflated their currencies, as will be
‘seeh from the increase in the note circu
lation of the twelve countries enumeruted
below:
able to complete the dimensions of thias
pyramid, but we know that our floating
debt, a great part of which is credit
manufactured b{ the banks, is $75.000,-
1000,000; that of France to a similar
figure, and that of G""""’K to 120,000,-
000,000 marks ($30,000,000,000), Mean
while the gold reserves of the various
' banks of these different countries have
'been increased as follows during the
'period covéred in the following table:
End of 1919, Net Change,
$719,500,000 $127,600,000 (Decrease)
273,000,000 250,000.000 (Decrease)
682,000,000 92,000,000 (Increase)
2,128,000,000 1,889,600,000 (Increase)
83,000,000 53,000,000 (Increase)
265,600,000 196,000,000 (Increase)
483,500,000 369,000,000 (Increase)
41,000,000 29,600,000 (Increase)
107,000,000 59,600,000 (Increase)
418,000,000 70,000,000 :Inorvnse)
52,000,000 25,500,000 (Increase)
377,600,000 268,500,000 (Increase)
$5,530,000,000 $2,654,000,000 (Increase)
in belligerent countries by the use of the
printing press was reflected in an in
creased demand for foreign goods. Pny
ment for foreign goods had to be effected
in foreign currencies, and these foreign
currencies had to be expanded in order
to enable the requisite payments to be
made in these forelgn countries.
“The vast increase in buying power has
been accompanied by an increase in prices
of commodities, largely because during
the same period millions of young pro
ducers have been engaged not.in produc
tion but in destruction.
*“To have avoided an increase in prices
of commodities, production of these would
have had to be increased in progornun
to the increase in the volume of buying
power assuming that the velocity of the
currency had remained unaltered.
“As sghowing that the production of
ronds did not keep pace with the pro-
Auction of money, we subjoin the fol
lowing table comparing index numbera of
the retail prices of food in various coun
tries (the board of trade white paper
shows that production was approximately
the same): »
I money (i. e, a fall in commodity prices)
im response to the working of the inevitable
law of supply ad demand. And the issue
of fresh currency would have to be regu
lated according to the supply of gold
and not according to the necessity of
creating sufficient credit for government
expenditure
‘““The best finanelal opinion is strongly
in favor of something being done, dnd
done quickly. And the return to a free
gold market, which would raise the value
of gold of the £1 currency note to 208
automatically |s probably not so far dis
tant as some people may fear.”
(The writer throughout the article
expressed his calculations in British
pounds, but, for convenience, the to
tals have been changed to dollars om
the basis of $5 to one pound.)
.
Czecho-Slovakia Gets
.
American Cotton
PRAGUE, Feb. 15.-—The leading com
mercial daily of Prague, Tribuna, states
that the group of Czecho-Slovak textile
manufacturers has puschased 60,000 bales
of cotton in the United States, It is a
credit transwtion, financed by a number
of American banks under a joint guarantee
of the leading Czecho-Slovak banks and
the government. By the terms of the sale
the purchase price is to be llquidated
through the sale of 650 per cent of the fin
ished goods, which are to be exported and
sold in the United States,
UNDERWOOD TYPEWRITER,
The Underwood Typewriter Company for
the year ended December 31, 1019, repogts
n surplus after charges and federnl toxes
of $2,609,952, equal to $25.56 a shore on the
common stock after preferred dividends,
against a surplus of $2,403,346, or $23.67
a share for the previous rvnr, Net earn=
ings totaled !0.13&914. an increanse of $101,«
478 over 1918, Tofal income was $4,602,535,
an increase of $271,582, Common dividend
disbursements increased 35646,600, As of
December 31, 1918, the comnpany reperts a
surplus of $706,962, an increase of $450,504,
ONLY genuine, new Delco,
Klaxon and Remy parts are
carriedata Branch or Authorized
Also Distributor of United Motors
a Rim Service Inc. The stock is com-
Service plete-—the service official. |
Charlotte Authorized Distributor i
Garrett Philadeiphia Service Co,
227 E. Trade St
Atlanta Branch
1214 W. Harris 8t
UNITED Morops SERVICE
Tet 31 Q’ , ,
srpiace .or DEelCo* KILAXON =< REMY
: <
NEW YORK, Feb. 21.-~The Baldwin Lo«
comotive Works Is in the best position of
any of the equipment companies to take
advantage of the great prosperity that is
soon to come to this industry. While other
companies are awaiting some action on the
railroads, Baldwin is keeping practically
all its plants busy by accepting forelgy
business on a credit basis to make up for
any lack of domecestic demand.
Kuropean contracts have been placed on
a long-term basis, and the financial posi
tion of the company is so strong that it
does mnot have to sell the bonds recelved
on these contracts. In Tact, the company
will not part with them until it can do 89
at a substantial profit, for it can well
afford to hold them until maturity, as they
pay good interest.
For the year ended December 31 earnings
of the company have been very good and
the annual report should show a wide
margin over interest and dividend require
ments, It {8 rumored in many quarters
that should foreign business amount to any
large volume, it would not be surprising it
some of the notes accepted from European
customers were distributed as a special
dividend to stockholders. ‘
The Buldwin Locomotive Works during
the five years ended December 31, 1919,
has earned welli over $l6O a share on the
common stock, Of this amount, only $3.50
hus been paid to stockholders, on January
1 of thls year. This payment, was called
a dividend, and it has not been officially
announced what the company's annual
dividend peolicy will be.
The directors of the company have al
ways been ultra conservative, but it lis
believed that owing to the large earnings
made during the war period a very satis
factory return will be made to stockholders
over the next few years,out of accrued
profits. When the railrdhds are turned
back to their owners and financlal affairs
straightened out, enabling them to con
tract for their requirements, the company
will have sufficient domestic business to
keep all their plants busy and should be
able to maintain a substantial dividend
payment to the common stockholders, Di
rectors meet the latter part of this month
and some very important announcement is
anticipated.
Net tangible assets of the company at
present amount to approximately $l4O a
share and working capital to about $24,-
000,000, The company has about §6,000,000
cash on hand and marketable securities of
about $5,000,000, as well a 8 large invem
tories which are carrlied at conservative
figures.
The Baldwin Locomotive Works was in
corporated in 1911 as successor to the firm
of Burnham, Willilams & Co. This business
was founded in 1832 by M. W. Baldwin,
and cousists of the manufacture of loco
motives, trucks and ralilway and industrial
equipment,
At the beginning of the war, when the
company commenced manufacturing muni
tions, it was desired to keep these opera
tions scparate from the company's regular
business and the Eddystone Munitions
Company was formed with a capital stock
of SIOO,OOO, nll of which is owned by the
Baldwin Company. The Eddystone Com
pany is clearing up its contracts with the
government, and is soon to be liquidated,
and It is reported that a substantial profit
will he credited to the parent company on
this transaction.
8. M. Vauclain, president of the com
pany, is a leading expert on rallway equip
ment matters, and has recently returned
from a study of European conditions.
Through the fair policy inaugurated by
Mr, Vauclain the company enjoys excep
tional freocdem from labor trouble, which
is n considerable aid to its increasing oper
atious.
MERCANTILE MARINE,
P. A. 8. Franklin, prosident of the Inter
national Mercantile Maring Company, on
his return to New York from Washington,
stated that although it § tru that the
freight arket has sagged off romewhiat
due to the foreign exchange situation, the
passenger movement Is very strong and
satisfactory Earnings for 1919 are about
one-third larger than in 1918, and the out
-1“;'!-'!\ for the current year i 8 not discourag-
T e
=) isthe storzpf CES
Peter Perkins '
and how he ac
cumulated |
| SIO,OOO in ten |
: ?'ears by invest
| ng $25 per month
| in high-grade listed ||}
| stocks and bonds,
on a novel plan.
“Getting Ahead” is
as interesting as
.nydnnf' you ever
‘ read. Thousands
have read it and are
i now*‘getting ahead"”’
'} financially on the |
l same plan.
! You will be fascin
§ ated with it., But }
better still, it will }
show you a new way
il to invest your sav
i ings monthly—how
]l to 'ge( interest, plus
iR a PROFIT, on your
1| money— without sacri.
! flcing safety. We send
LU e, wrrre poR iT UL
Fu=ad TODAY. Grwes
L
/KRIEBEL'& CO.
R STMENT BANKIRS
162 H comn La Salle S(.. Chicage
STEEL OUTPUT NEEDED AT
HOME, SAYS MANUFACTURER
“American iron and steel mills will not even be slowed down on a.ocoult“
of the foreign exchange situatign—at least not for any length of time, IM"
then only in event of developments which are hghly improbable—so long
as there are cars and locomotives to haul the raw materials and finhhl‘j
products,” says a leading independent manufacturer, 1
“It is the railroad situation and not foreign exchange that is the neck
of the bottle for the steel industry—that prevents its going forward as it
otherwise might. The railroad situation, owing to the constantly narrowing
supply of equipment and locomotive power, is serious at present, but likely
to be corrected to an extent in the near future, with the return of the prop
erties to private owners.”
“The public seems to forget that’
on an average only 10 per cent of
Amerlcan iron and steel products are
exported. The past year the propor
tion may have been a little larzer
owing to the fact that price regula
tion talk had a depressing effect on
domestiec buying for a cons.derable
period and foreign consumers took
advantage of that sltuation to supply
some of their pressing needs. The
fact, though, that foreign exports of
iron and steel were heavier than
usual in 1919 merely accentuates the
fact that to the extent they were,
home demands had to suffer, uas
there is the same unsatisfied steel
need in this country as in most of
the foreign ones which have been
buying more than ordinarily heavy
here.
“It would be useless to say that
were the foreign exchange situation
to remain in its present precarious
state Indefinitely thereby affecting
adversely our other foreign trade
that the steel industry could escape
even though only indirectly affected.
There is no probability, however, that
exchange will permanently remain so
low. It is simply another case of
the ‘darkest hour Jjust before the
dawning’
“Corrective measures can and will
be applied. Europe is slowly awak
ening to the fact that she will have
to go to work or give collateral for
what she gets from this country. The
natural wealth of even the war
stricken countries, such as their
farms, forests and mines, is still un
impaired. They only need the appli
cation of man power to renew the
golden stream that will mean pros
perity to them and in an added meas
ure to the whole world,
“Europe has been awaiting the
payment of indemnities, the help of
America before she has tried to help
herself or the solution of her prob
lems by wild theories. In a meas
ure the affected people are awaken
ing from some of their delusions and
may be expected to do so more in
the future, As thls occurs the begin
ning of the end of the trouble now
belng experienced here and abroad
will start.”
Steel manufacturers generally
point to the fact that there are no
surplus supplies of steel at the mills
—further than output has been tem
porarily damned back by inadequate
rail facilities—in the jobbers’ re
tailers’ or consumers’ hands. Deéfer
red requirements are vast, in thel
I 35% to 50% s
SAVING ¥
No Disguise—No Camouflage
Every tire on our floor a sure mileage getter. They’re
made of the same reliable fabric and rubber that the
biggest tire builders put in every tire.
Better a Good “Second”
Than a Poor First
THESE ARE Compare These Prices
8i Fabric Cord Tube
STANDARD TIRES | 503 “g'ggs ...... $1.98
Sbunoy ansr 1968 17i0 880
DIAMOND s’ HE TR
PENNSYLVANIA 32x4 1820 29,66 2.90
MILLER 33x4 10.10 3025 8.00
HORSESHOE 34x4 19.56 81.% i{g
; 34xdl, 2780 34.
UNITED STATES 3bx4l, 2845 3515 440
FIRESTONE 36x41, 28.60 36.60 4.80
REPUBLIC 85x5 3386 37.75 5.40
And We Have Them 37x5 35.85 38.76 05.60
THESE TIRES ARE
Not Remade, Not Rebuilt, Not Special Brand,
Not Our Own Make.
Come and get acquainted | Largest assortment in.the
with real tire values. South, all sizes, all types.
MAIL ORDERS FILLED
Prices subject to change—BUY NOW.
T'
Amalgamated Tire Stores Corp.
Warehouse No. 16,
295 Peachtree St. Ivy 6239. Atlanta, Ga.
5E
Kl
”——-——-—-————-———————————-—-———-—-
case of the raillroads months ago es
timated to aggregate 10,000,000 of
tons, and only measurably less heavy
in other large consumption quarters.
Interruption to output, if any
ghould come, would only make the
gituation so much the more acute,
stimulating the soaring prices that
the pressure of demand is occasion
ing, it is pointed out. A year ago
the railroad aaministration refused
to buy needea steel even ' though
manufacturers made price conces
slons. The resuit is that the country
is being treatea to the spectacle of.
a revival of war commandeering
powers to get a small fraction of the
steel tonnage needed for the rail
roads, owing to the oversold condi
tion of the industry. Anything that
further interrupts steel output will
merely emphasize the present famine
conditions and soaring prices except
insofar as they are arbitrarily held
in check. St
Millions of tons of steel must be
produced and censumed to bring the
country to a normal condition in this
respect, which is one in which home
consumption takes 90 per cent of
output and 10 per cent goes to ex
port. It is on acconnt of these facts
that stee! manufacturers are not
alarmed over an early, or at the
worst, protracted suspension of their
operations, always, of course, assum
ing that the return of the carriers to
the management of their owners will
witness improved transportation fa
cilitics, A
o
» . S
Paige Detroit Nets
$8.85 Share on Common
Net earnings of the Paige-Detroit m
Cnr Company for the 1919 fiscal year, BF
depreclation, were $1,300,000, nccordln‘ to
advices received by Babeock, Rulhtol.'.
Co. of Chicago. Thig is equivalent to $8.85
per share on the common, which hl‘i:_‘«
par value of $lO, Surplus earnings for 5
period are equal to $5.95 a share on the
commeon. %
NEWS OF OIL FIELDS, Qé
White Oil Corporation has made a cons
tract with the Texas Company 'fi‘(
the pipe lines of the latter company 1
run from the West Columbla field of
to Houston the 1,000,000 barrels of ofl
which the White Corporation has in stor
age in the West Columbia field, This
will be delivered at the White Com £
refinery at Pasadena, Texas. Twenty P
000-barrel steel storage tanks are ug&
erected for storing this oil, pending 3
refinery’s. ability to handle it. é
