Evening Star Newspaper, November 29, 1926, Page 11

FINANCIAL, SHP SALE IR TOAD CONPETTON Grain and Shipping Experts Interested in White Star Transaction. BY J. C. ROYLE. teh to The Star NEW YORK. November 23.—It costs on the average 37.1c on the bushel to move grain from the Mid- west to Burope, rding to figures compiled 1od ain and shipping experts. | W of that fact of the vessels of the White St to the Royal Mail Steam Packet Co. is arousing widespre discussion among agriculturists over the country. The sale does not operating under the White Spectal Di dd to the v <h registry. der the British flag when the Interna- tional Mery e, hut there is a feeling that the sale hax meant : infusion of new hiood into a com- petitor already strong Experts point out that when freight I8 paid on & shipped to ( Britain, Ame hest foreign custo- mer, it acts to all intents and pur- chases as a relate on the price of the grain, although thix rebate is not made direct to the grain consumer The demand for tonnage fi coal carrying, which caused the re cent abrupt rise in ocean freigh P d vessels are heing rel for other services: but the de shipments commoditi piled up suffi keep the general a while at least ment of gra to keep world &pring. These conditions, affecting the en tire country as well as the shipping Industry, have drawn renewed atten tion to the possible action of the Shipping Roard on the hid recently submitted for the United States Lines and the Am n Merchant Lines. Shipping circles are discussing whether @ not the board will turn down all hM& on the grounds of the mall contracts involved and continue to operate the Leviathan and other vessels of the United States Line itself, Some of the bids provide programs of buflding and operation, which many shippers feel would be of the greatest valus, restraining the upward move- ment of freights such as has taken placa in Jate months. The bid of Winchester & Co. and Gibbs Bros., Inc., for example, pro- poses to buy the American merchant ships outright at an expenditure of $1,000,000, charter the Leviathan group, guarantee a fund of $5,000,000 in cash for their operation, and in ad- dition build two vesels of the Levia- than type at a cost of $30,000,000, of which the hidders would put up $10,- 000,000 and the hoard $20.000,000, under the provisions of the mercantile marine act. The profits would be divided with the Government 50-50. Other bidders have submitted hids of & somewhat similar character, but in leas detail. Heretofore propositions to buy Shipping Board vessels have heen based on little more than their junk value, with the offer to operate them until worn out. Replacement tending to build up an American merchant marine has not been a factor in nego. tiations. Big Lake Boats Save. The effect of freights on farmers may be clearly seen when it is realized that the rates from Argentina to Eng. land are only a little more than half those from United States« Atlantic ports. From Odessa they are less than onethird the American rate, while from South Africa they are three.quarters of the American rate. The eight big 600.foot freighters now building on the Great Lakes in- dicate how the inland waterways transportation system is heing built up. A great saving is effected by the operation of these large, modern-type vessels as compared with smaller boats. A 600-footer can be operated with a crew of 32 or 33 men, while 25 to 27 are required on a small craft. The saving in wages and food is con- siderable, while the additional fuel costs are said to be nominal, and extra cargo capacity insures an increase in earnings in expected i fleets busy until early (Coprright. 1926.) Diversification nce | | waiting for a MEN AND MONEY By M.'S. Rukeyser. (Copyrizht. 1926.) " A report 'on speculation in Wall Street during November must he essentially negative in character, The public has been singularly free from strange impulses and delusions, which in other periods have caused frenzied and hysterical operations. As a matter of fact, the recent crop of suckers has been subnormal. stead of assuming that the trees of prosperity would continue to grow right up to the sky, on the one hand, or. of jumping to the diametrically op- posite ~ conclusion that nothing les ahead except an endless succession of pestilence and panic, outsiders have been apathetic. If they have been thinking in speculative terms, their mental gymnastics have not resulted in any substantial volume of broker- age orders. It looks to me as though the public | is a little hored with what speculation has to offer, and has turned its atten- tion for the present to bridge, mah- jongg, the theater and “The Story of Philosopl o eak of the odd lot of sma speculators who have heen focusing their attention on the tics of Queen Marie. the Hall-Mills case and the local reactions ta the Ten Commandments, Doubts Large Profits. Puglic interest in speculation has always been episndic instead of con- tinuous. Current apathy springs from A widespread belief that large profits are no longer to be amassed by ac- cumulating stocks in general and On the other hand, by the third week in October, aftel substantial decline, the trading public decided that the. early Autumn set- back following the Summer rally had run its course. market has recovered more than three- fourths of its earlier losses, Prompt Action. First Mortgage Lowest Rates of Interest and Commission Thomas J. Fi Company, Tne. "~ "' 738 15th Street. TONNAGE LIFTER Mechanical Movements No. 1512486 part_or outright on_me at Metro. Nov. 30, and #ee A working You are invited nolitan Hotel. Tuesday Wednesday, Dec. 1. and madel 1 operation for demonstration, ind you can see the wonderful plishment e lifting through 'the fevice when suitable power operate the movements. Besides being a very efficient to nift: ing device it is muitable for sther purposes either for use by hand or pow. er. The ‘workipg modél has to be seen 1o’ tully’ appreciate the value of this in vention. W. E. WHITE, Patentee and Owner. cpm- OFFICERS: William D. Hoover, President. Woodburs Blair, 1t V. Pres. Frank W. Stone, 2d V. Pres. Frank Stetson, Trust Officer, Chza. C. Lamborn, Treasurer. E. Percival Wilson. Secretary, Frank R. Ullmer, Asst. Treas. Bruce Baird, Asst. Tr. Officer. David Rornet, Asst. Tr. Officer, John W. Calvert, Asst. Treas. W. Hiles Pardoe, Asst. Treas. Alexander J. Fant, Asst. Secy. John M. Boteler, Anst. Secy. Audiey A. P. Savage, Auditor. DIRECTORS: Jamen J. Becker Woodbury Blair Wm. A. H, Church Walier C. Clephane H. Rozier Dulany. Jr. Wm at ton ey William D. Hoover Walter Briice Howe Reginaid S Huidekoper Victor Kauffmann In- | in jts pursuit; that milllons of people Since October 20 the | And the | - 4 | Loans | THE EVENING STAR, WASHINGTON,” D. C. MONDAY. NOVEMBER 29, 1926. of 50 representative railroad and in-|have turned to investment bonds is|bership remains limited to 1,100, of market has become for the time being selective, without a universal trend. Picking stocks depends on an analysis of special factors irivolved, that is too tedious a procedure for the ama- teur, who acts in response to emotions, tips, hearsay and surmises that spec- tacular things are imminent. No fallacy has wider acceptance in Wall Street than the doctrine that in the market evervbody 'is wiser than anybody. That is nonsense. The profits in speculation have always gone to the exceptional individual,. who was ready to buck the tides of mass su- perstition. Bernard M. Baruch, who has demonstrated speculative intel- ligence of the highest order, .in dis- cussing this subject, once called my attention to a musty volume, long out of print, called, *‘Memoirs of Extraor- dinary: Popular Delusjons,” published in London in 1852, which Mr. Baruch said was of more practical value to him in his Wall Street operations than any other book. Charles Mackay, LL. D.. the author, troduction, said, with singular “In_reading the hiatory of nations, we find that, like individuals, they have their whims and their pecularities; their seasons of excite- ment and recklessness, when -they care not what they. do. We find that whole communities suddenly fix their minds upon on> subject, and go mad become simultaneously impressed -with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first.” This is the closed season for de- lusions in Wall Street. Stocks Are Up. Applying the relativity technique of Prof. Einstein to. Wall Street, we may rnnel‘;de that price levels at present are high or low, depending upon what yardstick you use. The average price G. M.-P. MURPHY| & Co. " Members New York Stock Ezchange Buccessora to . JOHN L. EDWARDS & COMPANY 1416 H Street Northwest 52 Broadway, New York Richmond, Va. Newport News, Va. Open Until 5:30 P.M. Tomorrow, Wednes- day and Thursday It's Hard to Tell Where Your Money Goes —when there’s no tem observed in payi it out. And saving anything is doubly hard. 1 Why not bank your pay this thirtieth—start "pay- ing bills by check—and having check stub records that'll show you where to cut down, and thereby save? | This old bank serves an army of over 47,000 of Pay day depositors—and will be glad to have you lengthen the list. | | Swartzell dustrial shares, which is again near the September peak, is approximately 28 peints above the trough attained during the panicky ides of March)l Stocks on the average are not only still far-above the level prevailing dur- ing the dark davs of the post-war de- pressfon in 1921, but are, despite the autumnal recession, 36 points higher than they were during the war boom in 1916 and 38 points higher than they were at the summit of the post-armis- tice inflation of 1919. In the latter phase of the bull cycle, railroad stocks have . received more favorable attention that indus- trials. In view of the fact that rail- road earnings will be unprecedent- edly large this vear and since rail- road stocks have not been bid to the inflated levels of miany industrials, this preference is not -irrational, Moreover, the present phenomenon of falling commodity prices, which is a challenge to industrial profits, works at least primarily to the advantage of the railroads. g That those who have momentarily lost interest " in speculative stocks - Famous Poels John Kemts 17957827 ERE lies one whose name was writ in 66 water.” Such was the modesty of John Keats that he asked to have only words engraved upon his tombstone, Keats did not ap- preciate the merit of his own works. His “En- dymion” and transcend- ent fragment “Hyper- " have written his name in the sands of time, in Washington, C., there is an or- ganization which is making its modest work in those vast sands. Swartzell, Rheem and Hensey Company - pre- sents for the serutiny of thinking investors a record of fifty-seven vears without loss to an ‘investor. The First Mortgage Investments offered by this com- pany represent the highest degree of safety and now yield the hand- some return of 6%%%. Here . C o Let us tell you about « ‘their merits. indicated by the strength of the bond market. - With the expectation of easier money after the holidays, the outlook is for a further upward move- ment of high-grade bonds, and if that takes place, it will foreshadow a similar trend on the part of im- pregnable stocks whose dividends would be secure even during a period of commercial depression. That there will be recurrent periods of frenzied speculation in the future there can be no doubt. A newcomer has just paid $170,000, the highest | price_on record, for membership in the New York Stock Exchange. Seats on the Stock Exchange, which in reality consist of standing room oniy, have ‘a’ scarcity value. Despite the growth of New York as a domestic | and world @inancial center, the mem- which only 700 members are active on the floer. Last year an attempt to increase the membership by 40. was rejected. In 1863 a seat sold as low as $3,000. In 1914 as low as $34,000. HOME OWNERS 3 - frave’to sous pronerty.” Fv. 881, Real Estate Small Loan Co. 202 District National Bank Blde. Equitable VCo-'Operative Building Ass’n JOHN JOY EDSON, President Organized 1879 Assets ... $5,136,317.22 Surplus ....... WALTER 8. PRATT, Jr., Secretary 4ith YEAR COMPLETED Ceeees..$1,406,495.76 Subscriptions for the 92nd Issue of Stock Being Received We Strongly Urge Systematic Saving * Because hy saving systematically you ac quire a consistent saving habit, helping you to build up Equitable's a substantial fortune. Join the systematic saving plan and. de- posit part of your Christmas savings. Then iake regular deposits. You will be amazed at the rapid growth of your money. 915 F Street reer has any client in either principal Proven Safety Is Essential in Investment For that reason we suggest our First Mortgage Securities. the twenty years of our business ca- Never in ever lost a penny or interest., They pay an annual return of 6'2%. FINANCIAL. Money to Loan r'l of trust on Becu) by f; PRy Provident Mutual Insurance Company Funds to Loan In Small or Large Amounts at 5%3 Per cent. ‘WM. H. SAl'{!iDERS C0., Inc. 1433 K St. NW. Main Ik 0] HOME FURNITURE From $50 to $118.00 if your h onth. " Two i Teoaid " amail monthly Furniture Loan Procurement Co. w Ave Roslm, Va. real estate. ‘rast Life 1016-7 E The New York Life Insurance Company First Mortgage Loans On Improved Real Estate in the District of Columbia and Nearby Suburbs in Montgomery County, Maryland 3Y Hemes Apagtments RANDALL -H. 1321 Connecticut Avenue 5%2% ears, 5 Years, 10 Years Office Buildings Business Properties HAGNER'®& COMPANY Incorporated LoaAN GORRESPONDENT Telephone Main 9700 I A Third of a Century Without Loss Main 2100 THERE IS NO RST MORTGAGES THE PROPORTION OF PROTECTION As specialists, the realty appraisers of this company exercise the great- est care in determining the value and safety of the improved local real estate which secures our 6%2% FIRST MORTGAGES The worth of that property is approxi- conservatively appraised mately twice the amount of our Mortgage on it. About two dollars in value protects each dollar you in- vest. With interest regularity as- sured. SAUL CO. 925 15th St. N.W. SUBSTITUTE FOR = SAFE As subscriptions have been received in excess of the emount of Debentures offcred, this advertisement appears only as & matter of record. Dated December $120,000,000 Stand Incorporated in New Jersey TWENTY-YEAR 5% GOLD DEBENTURES Due December 15, 196 15, 1926 ard Oil Company Interest payable February 1 and August 1 in New Yeork City. " Rheem & HenseyCo., e Bankers T127-15% §t.NW. WashingtonDC. 57 Years Without Loss To an Investor Redeemable in whole or in part at the option of the Company on August 1, 1927, or on any interest date thereafter prior to maturity, upon sixty days’ published notice, at the following prices and accrued interest: From August 1, 1927 to .luguat 1, 1981, inclusive, at 108%,; from February 1, 1932 to August 1, 1986, inclusive, at 102%,; from February 1, 1987 to August 1, 19/1, inclusive, at 101%; from February 1, 192 to August 1, 1946, inclusive, at 100'4%. Same Rate ;:f' Interest Paid on Large and Small Accounts Insures Safety Frank W_ Ston William H. Walker William B. Willard National Savings&TfustCo. 59th Year You Oan Now Invest Any Amount in 80 Corporations Tepresenting 19 Industries Which Are All Paying Dividends. CIRCULAR ON REQUEST. jfinuldv_«] - OMPAN IWISTMINT Securities WOODWARD BUILDING WASHINGTON.D.C Coupon Debentures in denomination of §1,000, registerabls as to principal. Fully registered Debentures in denominations Capital and Surplus, $3.000,000.00 of $1,000, $5,000 and $10,000. Coupon and Registered Debentures, and the several denominations, interchangeable. Oldest Savings Institution in the District of Columbia Cor. 15th and New York Ave. TIssued under Indenture dated December 15, 1926, The lqul}ublu Trust Company of New York, Trustee. Walter C. Teagle, Esq., President of the Company, has summarized as follows his letter to us regarding the business of the Company and this issue of Debentures: The proceeds of these Debentures will be used in providing part of the funds required to retire the Company’s 78, Preferred Stock, outstanding in the amount of $199,972,900. The balance of the funds will be provided from the ‘ompany’s treasury and by the sale of 3,449,317 shares of common stock. - These $120,000,000 Debentures will constitute the sole funded debt of the Company. The consolidated balance sheet of December 31, 1925, showed total net assets, after deducting all current indebtedness, in excess of $1,078,000,000 of which over $450,000,000 consisted of net current assets. The Company now has outstanding 20,695,902 shares of common stock, having & present market value, based on current quotations, of approximately $869,000,000. Upon the completion of this financing, the amount of commen stock outstanding will be 24,145,219 shares, which increased amount will represent a further investment by common stockholders of $86,232,925. Dividends on the-common stock as outstanding from time to time, have been paid in every year since the formation of the Company in 1882, or for the past 44 years. The Company’s consolidated net earnings (before deducting Federal incone and excess war profits taxes but after deducting all other expenses and charges including liberal amounts for depreciation and depletion), available for the ment of interest on these Debentures had they been outstanding, everaged, during the ten years 1916 thmu'm , $92,157,223 annually, or more than 15 times the annual interest nxutnmenll of $8,000,000 on this issue of Debentures. In 1925, net earnings as stated were more than 20 times such annual interest requirements. Thereports so far received indicate that the consolidated net earnings for 1926 will be in excess of the earnings in 1925. The Company is realizing in increasing measure the benefit of the substantial capital expenditures made since 1912. From 1912 through 1925, the Company’s net earnings amounted to approximately $954,000,000, of which approximately $358,000,000 was disbursed in’ dividends and $506,000,000 was reinvested in the business. An additional amount of nearly $200,000,000 was also invested in the business, this amount having been obtained by the sale of the Preferred Stock, which is to be retired in connection with the present. financing. The Indenture, under which these Debentures are to be issued, will contain & covenant that the Company will not mortgage or pledge any of its property without thereby securing these Debentures ratably with the obligations secured by such mortgage or pledge. ) QR National Metropolitan Bank Capital, Surplus and Undizided Profits, Over $2,000,000.00 15th St. Opposite U. S. Treasury—112 Years Old OLDEST NATIONAL BANK IN THE DISTRICT OF COLUMBIA 000000000 Well Entitled to Your Confidence and Deposits In the one hundred and- twelve years of The Met- ropolitan’s existence there have been cycles of depression, as well as of prosperity, in the Nation. { Through all such times this bank has steered a successful course, demonstrating its right to survive, its ability to serve, its strength and soundness to an ever-growing clientele. We Buy and Sell Liberty Bonds Treasury Notes Etc. Bond Department The Washington Loan and Trust Company 900 F Street 620 17th Street Mol I} EIRED N _— Open Until 5:30 P.M. Tomorrow and Wednesday ONE DOLLAR OR MORE WILL IDENTIFY YOU WITH OUR SAVINGS DEPARTMENT THE ABOVE DEBENTURES ARE OFFERED FOR SUBSCRIPTION, SUBJECT TO THE CONDITIONS BELOW STATED, AT 100%4% AND ACCRUED INTEREST. Subscription books will be opened at the office of J. P. Morgan & Co. at 10 o’clock 4. M., Monday, November 29, 1926, ' All subscriptions will be received subject to allotment, with especial consideration, as mentioned in the letter dated November 19, 1926, addressed by the undersigned to holders of record 0f 7% Preferred Stock of the Company, to subscriptions by holders of such stock made pursuant to such letter. All subscriptions will be received subject also to issue of the Debentures as pla{med and to approval by-counsel of corporate authorization and of legality. The right is (aunved to reject any and all subscriptions, and also, in any case, to allot a smaller amount than applied for. 1 Can your Pay-Day and other funds be in better hands? ' Stocks Bonds 0dd Lots Carriea on Margin Buck & Company —BROKERS— Established 1916 312 Evans Building 1420 N. Y. Ave. N.W. Tel. Franklin 7300 Direct Private Wires to New York J. P. MORGAN & CO. 3 % Pald on saVIng’s : T New York., &’t;;!ember 29, ;996. Trust Dept.—Safe Deposit Boxes—Travelers’ Checks 5