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THE SUN. WEDNESDAY, JULY 26, 1911.
9 - S 10,000,000 Illinois Steel Company AH PER CENT. DEBENTURE GOLD BONDS OF 1940 Dated April 1, 1010 Due April 1, 1940 Interest payable April 1 and Octobor 1, In New York Redeem ble, tt option of Company, on any interest date, beginning April 1, 1915. at 105 and interest TRUaTUi THI NIW YORK TRUST COMPANY Coupon Boniis In denomination of $1,000 and Registered Bonds In denominations of 11,000, 15,000, 110,000, $50,000, $100,000, or $1,000,000; Coupon and Registered Bonds are interchangeable. Application will be made to list these Bonds on the New York Stock Exchange Outstanding ; $10,614,000 Reserved to retire all other funded debt of Company 13,674,000 Reserved for 7.5 of actual cost of additions and 'betterments subsequent to January 1, 1910. . 5,712,000 Total Authorized $30,000,000 From a letter of J. A. Farrell, President of the United States Steel Corporation, wc summartec the following: Payment of principal and Interest unconditionally guaranteed by endorsement on each bond by UNITED STATES STEEL CORPORATION. Average annual net Income of United States Steel Corporation and Its sub sidiaries for four years ending December 31, 1010, In excess of all fixed charges, was 878,910,387. Illinois Steel Co. has no mortgage debt. No mortgage can be placed upon Its property without equally securing these bonds. Illinois Steel Co. has no floating debt. Its current assets arc largely In excess of all Its current liabilities. All Its plants are of modern type of construction and In excellent physical condition. ' Output of plants operated by Illinois Steel Co. during year 1010 Included 2,476,000 tons finished steel products, or about 23 per cent, of finished steel output In 1910 of all companies controlled by United States Steel Corporation. Subject to Prior Sale and Change In Price, We Offer the Unsold Balance of the Above Bonds at 954 and Accrued Interest. Temporary negotiable receipts will be issued pending the delivery of dejinitive'bonds. All legal matters relating to this issue have been passed upon by Messrs. Stetson; Jennings & Russell and Messrs. Strong Sr Cadwalader, of New York. J. P. MORGAN dt CO. LEE. HICCINSON & CO. KISSEL, KINNICUTT fc CO. I GOSSIP OF WALL STHEKT. 1 Yedtsrday mornings stock market at-1 tivitv wan not nearly no pronounced a it Ua heen on similar -inoriiln-. after within the last year when deci'loii". of much Kreater importance have l.een hamled .lovsn on a Msht before. Northern l'aclllc opened at : off 1'.' Irotn Monday, dose and ln.m- V.ely -.old don to 131. Atchhvnn like v "I ,Ued an opening ''ut t 1 Milt ft imiMi iw - nton Pacific opened late with n Ml- of inn .harm at a l.- off. point, 'r i. of 2 .V'O ohan-a at a decline of 1 point. , , re.i of the usually active lint .yinpn- bUt to a limited degree. Half an hour after the openln the market a- wierall J ",,! l'h good Bi7e.l recover rwl-,-r-d in favorof most of the .took. . Mrh I ,a opened weak. At the end of the first I our the ma.ket was KCttinR strong rapidly, s. the clo it a seen that the day s losses La not been heavy. Atchison had- lost oi.lv '.. St Paul. ';. "real Northern, 1 . Northern raelflr. I".: Southern I'aclflr rnion IMrifio, .. and other railroad hhares I ad declined not more than small fractions : . . v.oH mnrte a better .hnwln than any session since Wednesday a week aso. the total of 420.o shares be-inir about double the amounts of total 'ra"a'' tlons on the closln days of last week and Monday of this week. Krom Chlraco ram the only statement by any Important railroad trafflo innn on Interstate Commerce Commission s He fusion Mnoe nobody hre could surss rhat difference it would make in the Income counts of the railroads affected that ( riraso despatch was read with great curi Mitv The statement was from 1 rattle 1'irertoi Stubhs of the Vnlon and Houthem raolflc Mr Stubbs is the most conspicu ous trafflo man In this country. And this ! all he could summon up on the decision; I don't know what tho Intermountaln Vei-ions are, not having received them yet. 1 upwi them to-morrow, and I,erhnps 'ten can reach some conclusion. All 1 kc i- the newspaper account, wnlcn iown't ho me what the comml-slon H, tt "s at My Idea of the rate principle iMjinn'r s-t forth regarding water compa nion und long and short haul generally , tin' it i purely academic. Literal en tr.en,eut ,,f ong and short haul provl nnti of new law would raise mischief for h me ime With Stubbs unaBle to tell 'r.m hst It was all about poor traders ii iit as a far Western matter about urnrntihical comj?xlt I'a no Inhabl w of New street could possibly know ityhmg ' Trjdera with longer memories recalled '1.1' there ai really nothing new In the de f.sion it vwc a loiifrmatlon of all that '!. .or i.i-.inn had Mild on .luno SO. 1910; n1 on ' ne ;tu. Iftlf, there had been a great T-ak i, market. On that day twenty u -f.h i -t... ks broke thejr low records for " m- i i,i..n Pacific declined I8!( iHInt, Ntr,eri l'u itlc and Soutliern I'arlflo alld " in- ,i ... n points, while Mich stocks - Iff! a st I'liul, Canadian I'aclflr, 'if v .1'ii. rn. Hock Island, Chcsapeako 'I' ."I Mi.sourl. Kansas and Too ' ' ' ir, to li points Nothing like noil In ei.terdayV market be- ' i I all happened a ear ago. Ko i e -tinlloiH tradots. That action i i a what hail stimulated the '' . ir.,i, if of that date toexelalnr ' . -i: i, i- week of the Interstate 'i' ( i.inmWslon in reducing rate ' .Mil tiiilf of the I nlted HUtea Is 1 . i.iilrnads a stone when' they . for bieiirl " In that week there 1 'tei news from the spring wheat i 'he aililltitin of the misfortune ' iitcde' iilnn had lilt the mir- -' iii'oUiunit obeners lielil yes ' ' mo iit'iinou was ilf more I ni ' '" ' I " tow npenile of tho dlfTcient ' ' "s ' nie of the I'ai'iflc const than ' 1 " iiillriuids "i.rvliig tliein. The ' ciii Iwnl In cu preclplliilod not 1 Im. i,.'i- (.ii thmiKht to Is) too i'Ui liui befiiiim thn chain- ' f .. fri cort a In tow ii -t thought t i ,r(.ri. .mil loliliiM's would lie 1 ' ' hen i i' ie to iiliu s with more 'M nil i.iii.. omtwaid Wliereus 1 "on a ioiI'iIm Infill unfairness - c -.iirkano hii'her rates thn "ii-to would likewi'n bo the 'ip in gl ing imkune n ad if ci 'ea'tle Kpok.ine hHd lieen to imiij of t)10 railroads, to uie a pop ular olitlcal phrase, while from now on It must lie Seattle which will suffer. Salt Lake City can now do ruiiie of the things which it could not do when San KrancUco had more advantageous freight rutes.atid Han Krauclsco will hate to Ml:e Salt Ijke City more fully Into coinnierf iul account. Vlvwed In that fashion the decision must impros one as a readjustment of com mercial i nnditlons lietween certain sections rather than as : sweeplng"reform" In Itself The I eeli rivalry lietween those cities and and liy their poor clerks. - hi) worst part j of the work will full on them. Hut who is gome jo in trie new stock certitlcates in cue everrtWrie has to be reorganized'' It take- n vice-picldtit ut least. Now the vlce-prcsli..nt? In (hose companies are uiostlv oM mep. orn of them iiro ovr Til. rancy those old fellows sluning atcfl; certlllciiie. for foriv nights and fort days' So, wo shall li:ie to have a whole ntw Imtch of vice-president", all of tht-lii with meat cndiiranrv powers, llm. h- insurance, you uiilcrtaiid. We sections will I'll on lust as .iilhiihlastically 1 w-av of us before Only the tables have been more ' """"'i -ure that wo are polng to he remade, or less coiiuilelely turned .Inst wliat ef- hut Its tnlghtv nrohahle No. sir. you II not catch .ne slgn'ng anv of thoe carload ' ioisoi new slock (erfil ciites ' The OovernmonCs weekly wenllier rerw.ri was tho hest ever. In the corn bell hene. feet this will have on the collective trade of Hie regions affectod nobodv can foresee 1 he chief difference will lie that complaints to the Interstate Commerce Commission on the gross injustice of freight rates will Iw.irilirierent postmark. Other chambers tleial rains accomplished for tho irrou-incr of commerce will protest with an clouuence crop about all that was needed. In the similar to that heard In the past In time spring wheat districts weather was even we may have still more readjustments. So more beneficial to cgetation, In all sec-' students of the situation thought yesterday "ons where severe drought had threatened j that with the total loss to the railroads so crops of all kinds there was a proper ahull-1 comparatively small the worry of the whole dance of rain and sunshine and a proper i thing had bettor be left to towns near the absence of hall and high winds. In everv Pacific whose Jobbing trade might be some- particular the (overnment's report tor what stuuted by the decision. robornted the good news of weekend I weather which had impressed tradets In l iw. lienurimem of .'us. Ire. which Is Monday's market. Only in Iowa surf Ml.. uist .w.w tiin i.n.ie.i orirsnlrntlon iii or out sourl Is more relief needed for corn ttut of the (.ovcrnment. spared a little time cooler weather In those States has done ! vesterday to investigate nn eeentn hour "men inane up ior absence or mnlstnte I storv in n mornlm: newspaper to the effect In the cotton belt conditions were Ideal that the latelv formed National City Com-1 with, the single exception of nllght dryness pany had beer, wrongly tllagnoseu as a ... m m .-..n in v arouna. un me Pacific holding company for bank stocks and that 'oast weather affected crops of all sorts In !t was intended as a company to inke over he best possible fashion. The moderation not only all of the things owned by the of 'he weel; temperatures was emphasized National City Hank but also the standard; by the Covernmenfa reviewers quite as Oil Company and the American Tobacco ; much as was the plentiful supply of rain Company. 'I he:e corporations are, It la for crops and for the reservoirs which store alleged, to be hidden awav rafely In tlieup Irrigation water In the arid sections of bosom of the National City Company. , the West. One of tho Investigators assigned to that particular case for his day's work yester- esterday'a despatches from Iowa nuoted day said with awful slgnllcance that if that State's bureau as baring put out a the Supreme Court over got Its mighty report which gave In detail an account of hands on such a contemptuous ciew as 't'e benefits which tho local corn crop has that outfit was said to l-e It would hold received since the time as of which the h.. i,i ii. t,.rinl ronieniot of court Jail Oovernment Issued its report on condition forever and forever or until the ry Oov- there. Tho crop was said to be doing as j ernment were overthrown or until the recall well aa could be expected and It was taken I ot some other blessed measure got those fr granted that the yield would be liberal , Judues oft the bench. uuiess some rnraimy 01 uau weatner swept . j over the section. Said a man who Is a director In several "7 T, . , more or less prominent industrial corpora-1 Coincident with the disturbances in Par tions nono of which lias been dissolved . Hament nnd with the later developments as yet "'Ihere appear to bn it curious 1,1 ,"c "s miiiun nntisn consols demand for vice-presidents with strong, Rol(l down 78 lot cn"t'. new low point right arms In the companies In which iJ 'or that Issue as a ah per cent, security.' have an Interest. I have attended recently ! The previous low for cash was 7 3.1a. on board meetings at tho oltlces of most of J"l' " As long ago as December, 1010, tho Industrial companies which I know ' consols eold down to 7 .and when they were . anything about. Now we don't e.actly ; paying 3 per cent, they went to 7S.'f in tho 1 expect t" be Indicted ourselves, nordo we P'R whlh occurred In Kngland In Octo- epect to see the Oovernment put the com-1 t,pr of lS7,and In l:il were quoted at 74,'. panics out of business. Wo haven't been ' The security Is by no means o badly off In ' doing anything so ftr as we know. Km . public estimation nowadaya aa It was when otietieerknow-i. We may all be up against - " was u .1 per mn. miair. nowever. tor the ; the linvcrnment before we know It. In present quotation la equal to a price of 1 1 tluil ca w may he forced to dissolve nnd '' "i ir un . imjing 1110 ntgner rate , rorganlo all' of those companies, ihat 01 nueresi. pij.slnllliy m'IST, tie cuiisiinm mini" 111 mind nowoonvs. ine groin iuumiii v 01 dividing up the ssscN of the parent tom- patiles among subsidiaries will lie nppre in 11 pes n in.cLA ha tioss. Cnmpinv anil Ttrm. Slock, Ami Payable. nulle t'n.lltlnn. nn.rterlv Mn s:nt i clited by heads of clerical departments ' Inland steel. quarterly. . sept! t Chartered lBia The Farmers' Loan & Trust Company No. 16, 18, 20 A 22 William Street New York Branch Office, 478 Fifth Aveaac LONDON 1 2 oil Broaat at. E. V. TARUt 41 ITBoleTard Bamiiauuu Statement ol Jane SO, ltll nnsot'Rt'eis 1 lmiiimtik Ponds and Mort(Ss $ 4,t.t,MS.tn ,rsnlil Stork l.om.Onom riihlle Krciirltfes, Market Value. I0.:.os tm litiiih tried Proflla 6,44,424.U other securities. Market Value., 2:.7lS,AOS.2vll)tpoaltt 137,1U,M4.1J testis 70,M.0Agro unnal.l Ulvldcndi, llewrved for Ural Mttate .1.28,tsnos I'aies 114.471. M Cnm In Hank lu,6U,nlo.M Accrued Interest C24.ZS0.81 ('ash on Hand IJ.MS.eis.V) Accrued Inlcrett M4.S4J.42! Ki.ajB.780.C7 ei4S,31B,T90.7 omcr.Mx FDWIN S. UAnsro.V, President. RAMItKl.SIXlAN. Vlre.rrealdent. COHNBLUIS R. suSe", llce-Prea't. AHOUSTl'H V. IIFKI.V. Vlre Pretldent Sec'y. IIOHACK K. HOWLAND. Aal't Seo'y WILI.IAU D.CAIIDUZO. Vlce-rrealdrnt. ftOIIRRT C. BOYD, Aai't Seo'jr. WILLIAM A. DUNCAN. Aia'l Sen'r. Computiiig; Tabulating Recording Company CAPITALIZATION 6 Thirty. Year Sinking Fund Gold Bonds $7,000,000 Dated July 15, 1911 Due July lit, 1941 Interact January and July Capital Stock (All One Class) - $10,500,000 Thit Company it a recent consolidation of the following Companies : INTERNATIONAL TIME RECORDING COMPANY, of Endlcott, N.Y. TABULATING MACHINE COMPANY, of Washington, D. C. COMPUTING SCALE COMPANY OF AMERICA, of Dayton, Ohio BUNDY MANUFACTURING COMPANY, of Endlcott, N. Y. The International Time Recording Company was incorporated in 1901, and acquired the Time-Recording businesaof the Bundy Manufacturing Company of Binghamton, N. Y. (the pioneer manufacturers of Time Recorder!, which began telling them in 1690), Willard & Frick Manufacturing Company of Rochester, N. V., the Chicago Time Register Company, and later the Dey Time Reg ister Company of Syracuse, and the Syracuse Time Recording Company. It manufactures Time Recorders, Time Stamps, Elapsed Time Machines, Dey Dial Recorders, Syracuse Dial Recorders, Bundy Key Recorders, and special applications of these machines, including an improvement of the Elapsed Time Machine for automatically recording the duration of long distance telephone connections, also a Coast ing Machine (vended through the Railway Improvement Co.), adopted by the Interborough System, the Hudson & Manhattan System, the London Underground System, and by other important electric railways. The Coasting Machine effects a large saving of electric power. Thia Company manufactures all styles of Time Recorders for practically every purpose, and over 90 percent, of all Time Recording Ma chines in use are of this Company's manufacture. The International Time Recording Company has offices in New York. Chicago', Philadelphia, San Francisco, Pittsburg and other large cities of the United States and Canada. It has also created a large business abroad, with distributing depots in London and Berlin, and with offices in nearly all of the principal cities of Europe. The Company's buildings arc of reinforced concrete, up-to-date construction and tire-proof. The Tabulating Machine Company owns and controls the Hollerith Tabulating system. Under this system, statistic and data of all kinds are classified, analyzed and tabulated, accurately, rapidly and with comparatively small expense by means of auto rriatic electrical machinery. In manufacturing, the machines are used for recording daily production, both as to volume and cost, enabling those in charge to ascertain exact costs, check excess costs, stimulate production and to utilize the facts at once. In railroad and commercial management, they are used to tabulate promptly comprehensive statistics and secure accuracy and accountability in general administration. For example, in railroad work they are used for compiling the complicated statistics required by the Interstate Commerce Commission and also in the general auditing of freight agents' accounts and for the classification of disburse ments or voucher distribution, and extensively in connection with shop costs. In insurance they are used for detailed records of every important feature of the business and the policies, and are- in use by the Equitable, Mutual, New York Life, Penn Mutual and Home Life Insurance Companies, the Hartford, Royal and Queen Fire Insurance Companies. The Systems of the Tabulating Machine and International Time "Recording Companies are used and indorsed by the most pro ?essive Railroad, Industrial and Insurance Organizations in the United States, including the Pennsylvania Railroad System, the New ork Central Lines, the Southern, Union Pacific, 'Atchison, Chicago & Rock Island, Chicago. Milwaukee and St. Paul, Chicago and North western Railroad Companies, American Iron and Steel, Carnegie Steel and Pennsylvania Steel Companies, New York Edison Company, Consolidated Gas (of Baltimore), General Electric, Westinghouse and National Tube Companies, Marshall Field & Co.. Studebaker and Swift & Co., all of whom use one or both of said Systems. These companies are rapidly developing new uses for these machines, and others, seeing the economic advantages which have accrued to the users, are ordering machines, so that although the Tabulating Machine Company has greatly increased its manufacturing capacity, and although since the first introduction of its machines it has made no effort to solicit business, it is largely behind in the execution of its orders. The highest evolution of scientific business management of the great Rail ways and Industrial Corporations, the Insurance Companies, the various departments of the larger municipalities and of the national and state governments, is not now possible without utilizing these devices. The manufacture and sale of cards to users of machines is an important part of the business of the Tabulating and the Time Record ing Companies, amounting to approximately one million cards per day, and under centralization the manufacture and tale of cards should be a permanently increasing source of revenue. The Computing Scale Company of America was incorporated in 1901. taking over us subsidiary companies The Com puting Scale Company, Datyon. Ohio: The Moneyweight Scale Company, Chicago. Illinois; The W. F. Stimpson Company of Detroit, Michigan: The Stimpson Computing Scale Company of Elkhart, Indiana, and in 1902, in connection with Mr. L A. Davidson of Toronto, Canada, it organized the Computing Scale Company of Canada, Ltd., ,with headquarters at Toronto, of which Company the Computing Scale Company of America owns 80 per cent, of the stock. The Computing Scale, a new art in weighing, automatic in its computation of the value of articles purchased or sold, as soon as it was understood, became a necessity to a great percentage of the merchants of the United States, and is in use practically throughout the world. The Company now reports over 275.000 scales out. Its organization covers North and South America, Great Britain, mdst of the continent of Europe, South Africa and Australia. The Company has recently completed a model factory at Dayton, Ohio, with nearly three and one-half acres jof floor space, new throughout in 1910, and operates factories at Detroit and Toronto, and states that it now has 1 100 employes. The Bundy Manufacturing Company has developed and owns the Bundy Adding Machine, and has completed a plant ready for active operation. ' In the management of the New Company will be included men who have been successful in the organization and administration of the business so to be acquired. The following have consented to act as directors : Hon. George W. Fnirchild, President of the International Time Recording Company. Edward Canby. President oj the Cornputing Scale Company of America and pioneer in the computing Kale industry. Albert L. Salt, Vice-President of the Tabulating Machine Company. i if S. M. Hastings, Treasurer of the Computing Scale Company. Harlow E. Bundy. Treasurer and General Manager of the International Time Recording Company. Samuel G. Metcalf. Secretary of the Tabulating Machine Company. Dr. Herman Hollerith, Inventor of the Tabulating Machine. Oscar L. Cubclman of Knauth, Nachod & Kuhne. Bankers, New York and Leipzig. Valentine P. Snyder. Director and formerly President National Bankof Commerce. New York. H. B. Thayer. Vice-President Tabulating Company and Vice-President American Telegraph & Telephone Company. The several Companies represent that they own two hundred and ten United States patents, forty-one applications and numerous foreign patents. The devices manufactured by the above named companies do not duplicate or compete with, but largely supplement one another. The method and character of manufacture being similar, the managers of the different companies are sanguine as to the great economies which can be secured through consolidated manufacture. They further believe that Uie co-ordination of the selling organizations will result in largely increased efficiency as well as very considerable economies, that the concentration of the management . of the separate companies will enable it to take immediate advantage of the rapid evolution of scientific business management now in progress. Owing to the fact that the demand for the Tabulating Machines has been beyond the manufacturing capacity of the Tabulating Machine Company, no salesmen have been employed by it. Dr. Hollerith, the mechanical engineers and experts who have invented and developed the devices of the different companies, should, with a common interest and concentrated facilities, largely extend and perfect the existing systems. The advantage of concentrated administration, accounting and experimenting is greater in such a highly specialized business than in most other consolidations. The net earnings of the different companies for the year from May I, 1910, to April 30, 191 1, as stated to us, aggregate in excess of $950,000, including interest paid; the indebtedness against which this interest was paid -will be covered by new cash or bonds of the New Company set aside for such purposes. The Audit Company of Ne.w York has audited the above statement of earnings, and ita certificate aa to the earnings of the properties named has been filed with the Guaranty Trust Company of New York. Such annual earnings of said concerns are in excess of twice the amount of the annual interest on the bonds to be issued by the Computing-Tabulating-Recording Company, and more than sufficient to equal annually 5 per cent, on the stock of the New Company, in excess of such interest charge. There has also been filed with the Guaranty Trust Company of New York, statement of certain of the above-named manufacturers, who have had experience and ability entitling them to form judgment as to the earning capacity of the New Company, and who will be concerned in its management, to the effect that, in their opinion, the net earnings of the, properties after the first full calendar year of the consolida tion will be not less than $1 ,900,000 per annum, an amount which would show net earnings on the stock issued in excess of FOURTEEN PER CENT. (14) PER ANNUM. As to the International Time Recording Company, those acquainted with the Company's affairs believe that the business of this Company is only in its infancy, and that this will be one of the greatest specialty companies in the world. They are constantly improving factory organization and reducing expense of production, and have a selling agency without a superior. They nave also expended a great deal of money in developing machines which are now just reaching commercial perfection, and which are expected to increase th.e earnings of the Company materially. We have been identified for a number of years with the market for International Time Recording Company securities and are making a particular specialty of dealing in the Stock and Bonds of the Computing-Tabulating-Recording Company. Should you be interested will be pleased to furnish you quotations at any time. We offer, subject to sale and change in Price, a limited amount of Computing-Tabulating-Recording Company Stock, and believe same should prove an exceptional investment with prospects of enhancement in value. Price on Application While ice do not guarantee Jhc statements contained herein, they are true to the best of our knowledge and belief, hating been obtained from sources official or otherwise J. K. Rice, Jr., & Co. Telephones : 7460, 7461, 7462, 7463, 7464, 7465, 7466, 6270, 6271, 6272, 6178, 6176, Hanover. Cable Address : " Ricenor." Codes : Litber's, Montgomery's, Hartfield's. 33 Wall Street, . New York