New-York tribune. [volume], June 02, 1919, Page 14, Image 14

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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?
n
Province of Ontario
Gold 5% Bonds
Due May 28, 1922
A direct and primary obliga?
tion of the most important
province in Canada. Popula?
tion 2,5_'3._,74; assets $595,
SS 1,000.
Legal investment for savings
banks in Connecticut, New
Hampshire and Vermont.
Price to yield about 5.60%
(Delivery and payment in U. S )
Circular on request for AK-22S
TheNationalGty
Company
Main Office- National CitT Bank Buiidm ?
Uptown Otner: Filth At?. & 43rd St.
jnii<-?r Offices in 5o Cities
J Mam
y
Our Neiu Analysis
Calls Attention to
California
Packing
Common Stock
This company at its in?
corporation acquired the
business and assets of five
Pacific coast food packing
and canning companies
of established reputation,
conducting a business in
essential products having
a world demand.
Earnings for the year
ended February 28, 19!V.
were equivalent to $9.20
per share upon the out?
standing common stock
and, for the past three
years, $5 5 per share.
Write for Analysis R-110
A. A. Housman & Co.
r N ???? York stock Exchange
I New York Cot ton E.xchangt
! N, V. Coffee & Sugar Exch.
Members ?< New York Produce Exch.
1 i 'hi -ago Board of Trade.
I a- late Members of
^ !.. . ? rpoi I Cotton Ass'n
20 Broad Street. New York
Branch Office?23 West 33d St.
Int'l Motor Truck
Com., 1st Pfd., 2nd Pfd.
Kirby Lumber
Com. & Pfd.
Lone Star Gas
Stock & Rights
Midland Securities
Tex. Pac. Coal & Oil
Stock & Rights
Wright-Martin
Preferred
.K.Rice,Jr.&Co.
:.es 4-100 to 4010 .lohn. 36 Wail St., N. Y.
AMERICAN CAR
& FOUNDRY
Circular on Request
Post Brothers & Co.,
Members New York Stock Exchange
52 Broadway Now York
Phone ?M4 Broad.
Liberty bonds
.' '1 denominan i bi ipl I for cash
i ?? t? c . the cloning w< , ? i to-day
i.'O.Or. for a ?.-.r._:;i ?-, Mond, .17 Coupon*
847.03 for a SSO?M I' Moud. 1 Coupon
117.!):t for ?i S'il?:?l 1','- Mond, 2 Coupon?
?47.47 for u S..0?Mlil',' Bond, ?Coupons
(49.85 for a $M?3: )i I v Vlctorj Loan
PURDY & CO.,
Tel. .John 8174-5-6-7. :t? Mine >^t.. N, Y.
STANDARD
HKKKI.? f*5 W1L1 BE
SIMMAKg ^T MAILED
ON I TO
STANDAR!? OIL " INVESTORS
ISSUES | ON RKOLKST
<-:i4RLH.PFOR2HEIME??&Ca
Ilion? 4860-1-2-3-4 Broad. 25 Broad St..N.Y.
Bonds for Investment
Harris, Forbes & Co.
fuie Street, Corner William
NEW YORK
AMER. SUMATRA TOB.
Special letter 7-1 on >", ? I
CflkBlERCjBLHiJM
.?. M Goldberg Milton Hein
?.??/r.t,<-.'i! Conn, Stock Exch. of .*.'. Y.
74 BHOADWAY IMS BBOAOWAY
T?(. ?t<.t'yf 410? Tel. Columbui 227
Lahor to Have Costly Temple
SEATTLE, May .'il. Plann for a new
labor temple, to co?t between 51,000,000
and $J,?00,000, have been prevented to
the Central Labor Council by the coun?
cil'* building committee, which tun had
the matter under consideration for;
torn? time. J
The Markets
Stocks
On Thursday closed the sixteenth
week of uninterrupted stock market
advance. In that time prices of in?
dustrial stocks, as indicated by The
Tribune's average, have risen from 79
I to above 10G, a gain of 27 points; rail?
road shares have advanced from 69 to
78, a gain of 9 points. There is no
market in recent years that can com?
pare with the present one. Not since
190-1 has an advance been so long sus?
tained. In that year the rise con?
tinued for seven months without re
: action, against the present four
? months. Industrial shares in their
average price moved from 47 to 73.
\ As that was a gain of only 26 points
the present market has now surpassed
it. But the percentage of advance in in?
dustrial share prices in that year was
55, whereas prices in tho present move?
ment have advanced only 35 per cent.
Prices at the end of last week pre?
sented two features of importance.
One was that the spread of industrial
shares over railroad shares was 28
. points, the greatest in the history of
: the exchange. The other is that at a
? closing average ligure of 106.-10 indus
: trial shares passed the level of 105.30
, of November 25, 1916, and reached
their highest figure in stock market
record. There have been forty-six
million-share days this year, forty of
them cons'-cutivc.
The Bond Market
Signi icant during the week was the
I further increase in the general list of
I bond prices. The most important bit .
of news bearing on the investment :
market was the announcement of the |
oversubscription of the Victory Loan j
and the announcement of allotment. |
The oversubscription was less than
early estimates had placed it. But j
even as it stood there were $700,000,000 !
of subscriptions rejected. The impor
tant thing to remember about these re- j
jected subscriptions is that they were
practically all real investment sub
scriptions. Subscriptions made for
patriotic motives purely or largely arc
confined usually to the smaller totals '
below 910,000. The persons subscrib?
ing more than thai sum are in general
the heavy i neon e tax payers, who have
a great deal to gain by the 3% per i
cent tax-exempt issues. It is for this i
reason that one can count on this !
$700,000,000 _ seeking investment in
other channels. Most of it will doubt
less go into the purchase of the 394s '
and the interconvertible issue, the !
-1:,4S, in the open market, and should,
act as a steady sustaining factor in j
their price.
Call Money
The call money market was an in?
teresting spectacle last week. The
previous Saturday bank statement had
shown a reduction in loans of $133,000,
000. the greatest reduction for any
week of the year. This was the out?
come of the maturity of an issue of
certificates of indebtedness on the
Tuesday preceding. The effect at the
end of that week had been a decline
in the call money rate to 3V?? per cent
on Friday afternoon, the lowest rate,
with one exception, reached on any
day for more than a year. The renew?
al rate last Monday was 41-? per cent,
but during the week rates became firm?
er, leading to a ruling rate of 5 per
cent on Thursday and a closing figure
Brokers' Loans
The high rate for call money has
been largely made possible by the stock
market. The total Stock Exchange loans
are estimated to have risen from $600,
000,000 in January, when the money
committee suspended its restrictive
functions, to $1,000,000,000 now. This
is not supposed to be a dangerous fig?
ure in itself. Brokers' loans at times
have been estimated at $1,500,000,000,
and that when there was not the great
currency expansion that there is now,
and when that sum meant about twice
as much as it now does.
Relation to Prices
Assuming present estimates as cor- :
rect? and it is only the percentage in?
crease in loans which is not so diffi?
cult to estimate, and not the totals
themselves, which concerns us? there
can be drawn some interesting deduc?
tions in regard to internal conditions .
in the stock market. In the first place.
it should be clear that mere activity, i
in itself, docs not increase the volume
of Stock Exchange loans. The volume \
of such loans depends on the amount
of stocks used as collateral by brokers
in their loan envelopes at the end of
the day. To increase the speetl with
which they are swapped about dur: .g
the day does not increase their total
at the end of the day. One way in
which Stock Exchange loans can be
increased is by an increase in the price
of stocks. The percentage increase
if loar,:; would then be somewhat great?
er than the percentage increase in the :
prices of stocks, for the simple reason i
that the total of loans is usually less
than four-fifths of the total stock val?
ue. Since February 8, The Tribune's j
average of thirty industrial stocks has :
risen from 79 to 106, an increase in
price of 36 per cent. The estimated
increase in loans during the same pe
riod from $600.000,000 to $1,000,000,000
is an advance of about 66 per cent, or |
only slightly more than necessary to i
correspond with higher prices.
Some Inferences
The significant fact is that this ex?
cess was not greater. It could be ac?
counted for in two ways. The first
is narrower margins. Margins now are |
known to be unusually sound. The j
slight increase in loans would indicate '
that they could not have become very
thin. The second is by the sale of in?
vestment holdings to the Street the ?
flow of stocks from strong boxes to
loan envelopes. This may have taken
place to some extent. But what the I
small loan excess indicates is that the
extent was quite negligible. There
have been practically no new issues of
Stock Exchange securities or new list- I
?ngs on the exchange during this pe- ;
riod sufficiently large to enter into
calculations.
Rediscount Rate
Notwithstanding that the volume of
Stock Exchange loans has not become
excessive, there are some folk who re?
parti the present bunking position with
misgiving. The criticism is that the
banks have been tempted hv the high
rates, ranging from fi to #V ""f cent,
obtainable for Stock Ex?-' loans,
and that they have no ; ? forj
cutting down their heavy indebtedness
at the Federal Reserve banks. On their
borrowing from the Reserve banks they
are paying an average rate of only
about 4'i? per cent. In order to per?
suade them to cut down this indebted?
ness, some folk talk of a restriction on
the total volume of Stock Exchange
loans by the money committee, which,
even when it abandoned supervision
late in January intimated that it would
resume if it found it necessary. Others
advocate a mero increase in the Fed?
eral Reserve Bank's rediscount rate.
Explains Transmission of
Money to Central Europe
In an effort to eliminate misconcep?
tions which have arisen as to the na?
ture and operation of the exchange
system, recently inaugurated between
the United States and the liberated
I nations of Central Europe through the
! American Relief Administration, Ed
| gar Rickard, joint director of the
American Relief Administration, yes
; terday issued a statement giving the
' fundamental reasons why the adminis?
tration extended its relief work to in
' elude the transmission of money.
Mr. Rickard said that, in many
quarters, the impression had grown
up in this country that it was neces?
sary for forei?jn-born Americans to
buy food here in order to transmit ;
money to their relatives and friends
in European countries. Mr. Rickard '
emphasized the fact that this impres- ;
sion was an erroneous one and that i
the American Relief Administration
simply receives money orders through ?
American banks, which are payable in '?
the currency of the countries to which '?.
they are sent upon arrival on the
other side.
Foreigners deposit their American ;
dollars in the banks here and the
banks turn it over to the American
Relief Administration, which sees that
the orders are paid in currency to the !
persons to whom they are sent. There
is no compulsory purchase of food re?
quired, either of the payer or payee.
The American Relief Administration
ships food in bulk und does no: re?
ceive packages of food for shipment.'
Market Baromete
rs
Stock Exchange Transactions '
Stocks ! ,
Rail Other All
stocks. stocks, stocks. L
Last w'k. 943,600 5,866,600 6,810,200
Week bef.1.125,900 1,642,800 7,768,700 !
Year a?ro. 618,400 2,836,700 3,455,100
January 1 to date: ,
1919_13,9C2,SC0 90,000,500 103.903,300 s
1918- 7,902,600 53,087,000 60,989,600 t
1917.... 9,425.700 71,983.500 81.409.2C0 i
Bonds ?
Week Year c
Last week. before. In-fore. s
?. S. g.$33,661,000 $45.754,000 $23,271,000 i
RTds.. 7,621,000 7,813,000 2,926,000 f
Oth'rs. 13,821,000 14,312.000 4,831,000 (
Allkds 45,103,000 67,879,000 31,028,000 :
January 1 to date: '
1919. 1918. t
IT. S. gov'ment.$963,58S,000 $342,671,000 t
Railroads .... 94,271.000 96.127,000 <
Others . 302,673.000 142,067,000 c
All bonds.1,360,053,0:0 580,865.000 t
Stock and Bond Averages
Stocks ;
Last week. Week before. \
High. Low. High. Low. c
20 Railroads. 78.30 77.90 77.45 76.60 i
30 Industr'ls.106.40 104.87 103.03 100.57 (
50 Stocks.... 95.16 94.20 92.80 91.20 ,
Bonds I
10 Railroads. 81.56 81.46 81.17 80.87
10 Industr'ls. 95.55 95.25 95.25 94.90
.-. Utilities. . 85.36 85.26 85.22 85.02
25 Bonds.... 87.91 87.74 87.51 87.40 '
Same week last year: t
Stocks I
High. Low. ?
20 Railroads . 70.20 69.25 ; 1
30 Industrials . 80.13 79.13 :
50 Stocks .'. 75.76 75.32 ' (
Bonds | <
10 Railroads . 80.12 79.87 ?
10 Industrials . 91.82 91.61 <
5 Utilities . 85.14 85.00 ; '
25 Bonds . 85.72 85.65
January 1 to date:
Stocks
Jan. 1,1919 Full year , ,
to date 191S I ?
High. Low. High. Low. i
20 Railroads. 78.30 68.70 79.15 66.12 |
:iii Industr'ls.106.40 79.20 88.83 73.37 ,
50 Stocks... 95.16 75.32 84.08 70.30 ! (
Bonds | :
10 Railroads..82.80 79.48 86.57 76.62 i
10 Industr'ls. .95.55 93.72 94.08 67.40 ; 1
5 Utilities.. .87.75 83.62 89.02 82.60 ; 1
25 Bonds ....87.91 86.53 89.46 83.62 i ,
City Bank
Would Check
Speculation
-
Appeals to Bankers to Pre?
vent Further Expansion
in their Loan Accounts
Credit Position Abnormal
Disaster Invited by Contin?
uation of Credits Based on
National War Securities
The National City Bank, in its
monthly circular, out to-day, appeals
to bankers to keep speculation in
check and to prevent a further ex?
pansion of loans. It urges further
that at least a start be made toward
deflation, "for none but the most !
superficial observers can think that
this wholesale depreciation of money
,-alues signifies real progress."
"The bankers of the country should
recognize the present stato of credit
expansion is abnormal and not to be
iccepted as permanent," the statement
;ays. "The circulating credit which
s afloat against government war se?
curities in the banks is pure inflation,
t belongs to the war financing, and ,
t ought to be eliminated from the
leaeo situation as soon as possible.
1'he longer it remains a factor in the i
lituntion the more difficult it will be ?
o eliminate it, and to go on from this !
evel to a still higher degree of in
lation will weaken the position of
he country and invite a disastrous re- :
tction.
Calls for Debt Reduction
"Because the nations of Europe are
lelpless to avoid it is all the more
?eason why we should keep our own
oundations sure. With this great
rop to be sohl at high prices, and
vith the abundant tratle which is in
?rospect for the coming fall season,
here should be surplus earnings and '
irotits enough to accomplish a sub
tantial amount of debt reduction
without i m pos i n|.v serious restrictions
ipon enterprise, and the bankers,
hould make it their policy (o achieve
his result. If the recovery of com
nodity prices and general slate of
irosperity this year is made the basis
.f more indebtedness, through land
peculation and stock speculation, it
lay prove in the end to have been tm
ortunate that we did not have more !
rastic liquidation this year.
"The prospective demands upon the
?oney market are large. The Seere
ary of the Treasury ha? stated that
here will not be another general loan ,
ampaign. but as the Treasury must i
ontinuc to borrow largely this means .
hat he will be looking to the banks.
business is now reviving and prices
ave recovered from the decline which
ollowed upon the armistice. An un
irecedented amount of bank credit
.ill be required to handle that year's
rops, and finally, if this country is to
espond to the duty to which it is
ailed in world affairs it must supply
. large amount of credit for that pur
iose.
Cheap Money Improbable
"In the presence of these impend
ng demands cheap money is not to be
xpected, and any relaxation must be
emporary. The country seems to
;ave passed over the danger of gen
ral business prostration, and certain- ?
y this is true if we make the sales
ibroad which for every reason we
'Ught to make. Under present coa?
litions cheap money would be an
nomaly anywhere, signifying that the
ountry where that situation existed
vas not related to world affairs.
"On the other hand, it should be
'ossiblc to meet these demands with
itit a further expansion n1- credit, and
ve believe thai the banking authori
ies of the country hou il direct their >
lolicy to that end ^ 1
"Furthermore, if there is anj natural <
?elaxation in the credit situation the
lack should be devoted to a reduction
f the rediscount - of the Federal Re
lerve banks. These banks, although
n a strong position as compared with
he central banks of Europe, are ex- I
ended much beyond what should be
considered their normal position, and
that after mobilizing quite effectively]
the country's stock of gold.
"We have repeatedly given warning i
that the danger of financial reaction .
was not to be apprehended during the !
war, or as a result of the credit ex?
pansion for the war operations, but I
from speculative industrial expansion
after the war.
"Any further expansion of credit be-!
yond the great volume created to drive j
the country's industries at war press
ure is unnecessary and undesirable.
Would Raise Rates
"The logical course for reducing this
credit expansion and lowering the pres?
ent price level is by raising interest
rates. This would set in motion forces
which would reverse the process by '.
which prices were raised. Men would
pay their debts and contract then
operations, and effective purchasing
power would be reduced. The Federal
Reserve authorities evidently hesitate ;
to adopt this policy, and we are not pre- :
pared to say that the time for doing!
so has come. For one thing, the re- j
serve banks have encouraged borrow- ?
ing for the purpose of buying the Lib-,
erty and Victory bonds, and may well
fe?l that the public is entitled to have
time to work off these Joans at the
present interest rate. Furthermore, it
would be undesirable to have a reduc?
tion of loans which meant a forced cur- !
tailment of business. The country!
certainly can make good the losses of
war more rapidly with its industries j
running than with them shut down; i
it. is fundamental that production must i
be kept going. But after saying this it;
may be well added that the credit situ- !
ation should be kept in hand. If there i
is any slack in the credit situation it ;
ought to be. taken up and conserved for !
the real needs of the country and not
absorbed wastefully or in mere
speculation."
Market Opinion
Who's Selling?
It is true that a larger proportion
than usual of the purchases are for
.-ash. It is true that margins as a ??
rule are substantial. Still in the mind
of any conservative person the ques?
tion must inevitably arise, where are
ill the stocks coming from? The pub?
ic is buying steadily and on a larger
scale than has been seen in years.
Who is supplying the goods 1-Odd Lot
Review.
No Precedents
In fact, precident has gone by the
joard and it is idle to base any con?
clusions as to the future course of
security prices on the action of the
narket in past years. The country is
now richer than it ever was and in
lustrial corporations are in better
tinancial condition than they ever were
icfore. Splendid equities have been
built up behind the stocks that once
represented nothing but water?McDon?
nell & Co.
Business Outlook
If market commitments are made on
.he basis of reasonable prospects as
Co the country's business outlook, the
?pward movement in security values
has by no means run its course.?Posncr
? Co.
Reaction and Opportunity
With the prospect of a reduction in
he burden of taxation we expect to
?sec earnings increase and prices rising
in response. Reactions should afford
icw opportunities instead of occasion
for discouragement.? W. J. Wollman
? Co.
Union Oil |
Although in general we believe that I
3?I stocks are high enough and that the I
prices of crude petroleum are more apt ,|
.o go down than up, there arc specu- I
ative attractions in the stock of the 1
Union Oil Company of California. The I
?ompany is a producer, refiner, dis- 6
cributer and exporter, and handles B
treat amounts of fuel oil. Yet, the oil I
>roduced is of a higher grade than I
hat of Mexico and has held right up I
o the top price, whereas Mexican crude | o
letroleum has suffered a bad slump. I
['he strength of the Union Oil Com- i
?any lies in the rapid increase in its I
production from less than ."?,000,000 g
?arrels in 1913 to nearly 8,300.000 in
1918, and in the consistent rounding
uit and improving of the company's
liants, pipe lines, refineries, fleet and '
listributing stations. The net work
ng capital is nearly $20,000,000, or
inly a little less than 50 per cent o?
he outstanding stock; the bonded debt '
s not increasing, the property valua- ,
ions are cotiser-ative and the stock'
ipparently has an earning power of ? to '
il per cent even in peace times. i
Vrenn Jiros, & Co. '.
Week's Transactions on the New York Stock
Exchange
The following table gives the cssentinl details of last week's transaction? in stocks listed on the New
York Stock Exchange and comparison of the price ranges in 1918 and 1919. High and low prices of the year:
are based only on transactions of 100 shares or more. All quotations are in dollars per share. Th?
dend rate, also in dollars per share, is based on the last regular declaration.
,-Weekly Range
-Range, 1919-Dividend
tal di
42
11
25%
49
1%
1 5$
n%
72*4
78
31?,$
48
34%
89',
68 ?4
106
25
77 ?/$
12
r>o
11 !..
38%
51?/$
27
?9VA
535$
95
73
10,'i
85
High.
64
34%
70%
95
46%
95%
113%
4?
85 ! a
104
61
104
104%
117
59 > ?
M'i
103
37%
12K
60%
78 ?
96%
?<;%
98%
8?',
107%
5 ! ?
??1%
84
10?
130
39
Date.
May 23
Apt
Apr
Apr
.Ian
May
May
May
May
May
May
May
May
May
May
Apr
May
Mar
May
May
May
May
May
May
May
Apr
May
May
May
May
May
May
May
May
Low.
29%
21
565$
66
3's
1 %
30
81%
99%
33
62
84 \<?
42" h
987^
84 V?
113
39%
10%
82 ' ...
13 %
711,
38
54%
52%
44 %
85
58
100
1
51
62 ?A
10.",
105
33%
Date.
Apr 26
Rate.
Name of stock.
Jan
Jan
Jan
Apr
Jan
Jan
Jan
Jan
Jan
Jan
May
leb
Jan
Feh
Jan
Jan
Jan
Apr
Jan
Jan
Jan
Jan
Feb
Mat
Mar
Jan
Jan
Jan
Apr
Feb
Feb
Jan
May
8
1
I
21
14
17
6
20
11
II)
Adams Express .
Advance Rumely . . .
do preferred .
Ajax Rubber .
Alaska Gold Mines . .
Alaska Juneau ....
Allis Chalmers ....
do preferred......
Am. Agricul. Chem..
American Hank Note
American Beet Sugar
Am. Bosch Magneto.
American Can .
do preferred.
Am. Car & Fdy. Co.
do preferred.
American Cotton Oil
.80 Am. OriiR Syndicate.
American Express..
Am. Hide & Leather.
do preferred .
American Ice.
do preferred .
Am. Intern. Corp.. .
American Linseed . .
do preferred .
American Locomoti
do preferred.
American Malting. .
do 1st prefd. stpd
American Smelting.
do preferred.
American SnufT. . .
Am. Steel Foundry
ve
Sales.
1500
71500
2800
75(H)
7400
11200
?0900
1900
7800
:;00
18700
1S800
9S700
1 100
22500
?60
25700
8100
300
50900
9600
1 1500
6200
82100
IS,'to 0
2100
52700
500
3900
400
69100
600
200
82700
Open. High.
61%
33%
70
92%
3%
2%
46?/$
95 %
110%
46
83%
103%
61
104
104%
116%
59%
IV t
103
37%
124%
60%
73 %
94%
66%
96" ,
8611
107%
4
57
84
107'?
120',
39
59 ! ?>
32%
69%
90%
43
94
110 -
42
81%
97
57
102%
103
116%
56",
1356
103
34
123
56%
70
92%
63%
95
83%
106%
4
55%
81
106%
120'.,
37 ?i
Low.
50
32
69%
90
3%
254
42%
94
108%
42
81
97
565$
102%
102%
116%
55%
12%
101
33%
121%
55'.j
70
91%
62%
95
83
106%
3'i
55%
80%
106%
120'.,
37 !4
Net
Close, change.
51
32
70
90
.'!'"
? 3
r>i
44%
95%
109
46
83
100
59
103%
104
116%
58%
13
101
37'h
123 %
60%
73 ' $
92",
66%
96
85%
1075$
3 '..
57
+82
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A New Foreign
Banking Service
TO MEET THE NEEDS OF THE RAPIDLY INCREASING
world commerce, particularly between the countries of the
far East and the United States, the Park-Union Foreign Bank?
ing Corporation has been organized.
In addition to branch offices in Seattle and San Francisco, this
institution has established branches in Yokohama, Japan, and
Shanghai, China, as well as direct connections in the Dutch East
Indies and correspondents in Latin America and other impor?
tant trad? centers. Every banking facility for the transaction
and the extension of foreign business throughout the world is
thus afforded. Shipments financed, acceptances given, letters of
credit and bills of exchange issued.
Our officers will be glad to advise with American business men
regarding their foreign trade activities.
DIRECTORS
Richard Delafield Sir Wm. Prie?
Stuyvesant Fish H. B. Shaw
Gilbert G. Thorne R. O. McCulIoch
Cornelius Vanderhilt Stephen Haas
R. H. Williams W. J. Dawson
E. C. Hoyt F. L. Appleby
Charles A. Holder
OFFICERS
Charles A. Holder, President
T. Fred Aspden, Vice-President
F. T. Short, Secretary & Treasurer
Park-Union
FOREIGN BANKING CORPOPATION
56 Wall Street, New York
Capital and Surplus, $2,250,000
$1,500,000
The Cutler-Hammer Mfg. Co.
7% Cumulative Preferred Stock
Redeemable as a whole, or in part by lot, at 1?0 and accrued dividend, on three months'
notice. Dividends payable quarterly, March, June, September and December 1.
Par value $100. Total authorized $1,500,000.
The following information is contained in a letter to us from Mr. Frank R. Baron,
President of the Company:
The Cutler-Hammer Mfg. Co.. which was organized in 1893 to manufacture
electrical controllers and other electrical apparatus, has had a uniformly prosper?
ous history, its manufacturing' plants arc located in Milwaukee and Xcw York
City, with branch offices in New York, Pittsburgh, Boston, Philadelphia, Cleve?
land and Chicago.
Net Quick Assets $240 Per Share.?Based upon the company's condition as at
December 31, 1918, and after giving effect to the proceeds of this issue, net
current assets amount to $240 per share of Preferred Stock.
Total Net Assets Over $400 Per Share.? Upon this basis, total net assets, after
deducting all liabilities, are eqtial to $400 per share.
Earnings Three Times Dividend.?Net earnings tor the past sixteen rears have
averaged over three times the amount of the annual dividends upon the
present issue of 1'referred Stock.
No Mortgage Debt.?The Cutler-Hammer Mfg. Co., with properties appraised at
in.?re than $2,500,000, has no funded debt except $100,000 Notes due Decem?
ber 1, I'd1', for the retirement of which a like amount of cash is reserved.
No issue of funded debt or stock ranking ahead of. or equally with, the
present issue can be created without the consent of the holders of'7F>ri of this
Preferred Stock.
Price 1021/2 and accrued dividend
. A. Read & Co.
Nassau and Cedar Streets
New York
Chicago Philadelphia Boston London
Resale Wheat Pri?e Topic
At Conference on June 10
Plans and policies necessary to make
the 1919 crop guarantee effective to the
producer and properly reflect to the
consumer, through wheat products, any '<
reduction in the resale price of wheat ?
upon the part of the government will be I
discussed at a conference of the grain j
handling and flour trades to be held at
the Chamber of Commerce hero on '
Tuesday. June 10. In calling tho eon- j
icrence Julius H. Barnes, United States
Wheat Director and president qf the
Food Administration Grain Corpora?
tion, submitted to the trades interested
tentative drafts of agreements between
the Food Administration Gran Corpo?
ration and bakers, dealers, flour job?
bers and millers These agreements
will form the basis of t he discussions
at the conference.
The Morris Plan in Brooklyn
The Morris Plan Company, of New I
\ork, operating th? Morris l'Un of]
industrial loans and investments, Vm
leased commodious banking quarters"!
the Garfield Building, 26 Court StrC- I
near Remsen Street, Brooklyn, and W
begin business to-day with a stsff c* 1
ten or twelve employes under the w
reetion of B. F. Boos, heretofore m?f
ager of the Union Square branch.
?-'?
Canada Leads in Paper Indu??*? \
Canada's pulp and paper exports l**t j
all manufacturing industries, ?"*''!
that of explosive?.