The evening world. Newspaper, August 2, 1915, Page 4

) Whot Everylinvestor t= Should Minors Alou Earnings Prospect. Of Dividends. IS [Valuable Series Os Finencial Analyses By R‘R: BATSON. AMERICAN CAN COMPANY--NO. 1. (Written Especially for The Evening World.) fal On Feb. 24 last American Can Company common stock sold at $25 per Pars. On July 24 last, five months later, the stock sold at $59.50 per share, Feptesenting an appreciation in price of more than 130 per cent. On nine of the last twenty days it has touched a new high mark. At 60% on Friday Mast it was selling at the highest price in its history. During the five Months’ period approximately 2,300,000 shares of Can common have been traded in, or five and one-half times as much stock as there is in the eands of the putilc. This big speculation in the stock h tries of Europe with war materials. The value of these contracts was pop- Ularly supposed to have amounted to $90,000,000, on which, it was popu- farly estimated, the company would derive a profit of at least 30 per cent., ef $27,000,000. Speculators’ pencils were busy figuring that this profit ‘would equa! more than $65 per share of common stock outstanding, and Waying of the shares has gone on apace. Yet, up to the clone of lant week, /a large war order; but the specula- |. there was no authority for the ai tion in the shares has, happily, found | font thet the company had received | final justification, for during the clon WATERS PIANOS Nowhere is the question of quality so vital as in the purchase of a piano. We are specialists in piano con- strv-tion ; that is our exclusive work, and back of our product is seventy years of experience. You will be safe to buy a Waters Piano or Waters- Autola player piano. Prices reasonable and time pay- ments without interest. Send for Catalogue. Horace Waters & Co. 134 Fifth Ave., nr. 18th St. || 254 W.125thSt., nr. 8th Ave. 127 W. 42d =~ nr. Biway || 371 E. 149th St., nr. 3d Ave. a a not be made there No reason under the sun. 4 * |}. Porto Rico and Cuba. is a typical product of Porto Rican cigar-making Rican tobacco-growing. all the skill in the workmanship which belongs to sod art of the Spanish natives who make it. Indies in which satisfaction is not sacrificed to the ICIGARS| aint been based on recurrent reports | that the company had received contracts to furnish the belligerent coun-| Look at Porto Rico on the Map and say if Fine Cigars should : It’s the same sun, is shining over the same Tropics, that smilingly kisses Tobacco in its perfection is as native to the soil of one island as to the other. Porto Rican tobacco is known to have every good quality of Cuban leaf, but as now cultivated ‘‘in the field,’ of her upland plantations it has a delicate mildness which distin- guishes it from the Cuban leaf in this one noteworthy respect. ‘The RICORO Cigar (Cabinet Size) 3-for-25c. or by the box of 50, * Imported FREE OF DUTY and priced accordingly. All the virtue of the wonderful tobacco in the cigar and The RICORO Cigar is a representative product of the West mildness that the RICORO will always be found to possess, THE EVENING WORLD, MONDAY, AUGUST 2, 1915. war materials, mostly shrapnel and high explosive shells, to the allied Governments, Just what margin of profit the com. pany will make on thin order it Is Impossible to state, Officlain of the company themselves do not know, for the business is entirely new to them. Then, it may be found expedient to “farm out" a portion of the contract. It is, at least, entirely probable that other companies will have to handle | the filling of the shelis with explo- jsives, and the Can Company may leonfine itself simply to the manufac- ture of the shells, The American Can Company has \ fifty factories located throughout the country, but the manufacture of war munitions will be confined principally to the Chicago and Philadelphia plants, These two plants are of the largest the company operates ond are bent equipped to handle the kind of war munitions the company has con- tracted to manufacture Now that the company has definite- ly received a large war order, stock- holders have, for the first time since their company was incorporated in New Jersey in 1901, reason to hope that they will receive a return on their investment. Even now It ap- pears that a common dividend will not be paid for many months, possi- | bly not before eighteen months or two | years. Before the common stock can re- jeelve a dividend, $41,233,300 preferred stock must receive 7 per cent. an- nually, and any accrued unpaid divi- dends thereon must be paid. Up to the early part of 1918 profits of the company had not been sufficient to pay 7 per cent. on the preferred stock, and accumulated unpaid dividends at the beginning of that year amounted |to 82.9 per cent. In order to pay a substantial part of these accumulated unpaid divi- dends, directors in February, 1913, re- sorted to a piece of financing tha Was severely criticised at the time They sold $14,000,000, 1b-year sinking fund, debenture 6 per cent. bonds, and with the proceeds paid 24 per cent back dividends on the preferr In other words, they created a new debt on which they had to pay $700,000 in- terest annually in order to settle an old debt which did not carry Interest charges and which could have been continued until its payment was war- ranted by earnings However, there remains 8.9 per cent. back dividends to be paid on the pre- ‘ferred stock, calling for the disburse- ment of $3,990,000. These must be paid before common dividends can be paid Also, it is well understood that the $13,448,000 debentures ($652,000 boen retired), which, as stated ued in order to pay back di idends a dividend. Theso a ny interest date on sixty days’ no- tice. Approximately $13,760,000, whic fed to $3, | $4.15 and Porto the inher- unequalled UNITED ‘CIGAR STORES | ing days of last week a contract was signed under which the company will | furnish approximately $40,000,000 of have were the preferred, must be taken care of before the common stock receives ntures are redeemable at 102% and interest on Their retirement would povoive ad 990,000 back dividends now unpaid on the preferred stock, makes ‘a total of approximately $17,100,000 that must be paid to bondholders and preferred stockholders before com. mon stockholders can share in the profits of the company. In order to make this sum, the Can Company must realize a profit of about 42 per cent. on its $40,000,000 or- der. That it will do this is entirely improbable. Officials undoubtedly will be thoroughly satisfied if they are able to realize a 20 per cent. profit on the order, particularly in view of |the fact that they probably will have jto turn the work of filling the high explosive shells over to other com- panies. But common stockholders need not be without hope of receiving a re- turn on thelr investment. It may be seated on good, though not on offictal, authority, that the company ta nego- tlating for anotl $40,000,000 war order; at least this is what peoplé very close to the management are given to understand. It seems to be a popular impression that the Can Company's earnings will immediately begin to reflect the receipt of this war business. This is not so. The com- pany will require several months to rearrange its plants, and profits from war business probably will not show until the annual report for 1917 is issued, The next annual report of the Can Company will make an excellent showing, however, for ordinary busi- ness of the company has been un- usually big The company now manu- factures nearly 44,000 different kinds of tin containers, In addition to mak- Ing cans for food products, such as soup, fish, meats, e@te., the company manufactures ofl tanks, auto tanks, paint strainers, peanut roasters, add- ‘ng machines, banks, sheet metal stoves, ash and garbage cans, and thousands of other kinds of articles, and It is constantly putting new ones on the market. Tho sales force Is well organized. The management during the past two or three years has been putting plants in improved physical condi- tion, and is constantly aiming for renter efficiency. Earnings on the common atock this year are expected to amount to about $7 per share after allowing for depreciation charges and 7 per cent. preferred dividend In 1914 the company per share of common sto $2.68 per share; in 1912, ‘$8.88 per share; in 1911 and 1910. practically nothing was earned on the common These share earnings were arrived ut after deducting all expenses, de- prectation and other charges against neome, The balance sheet of the company is of December 31 last, which is the ‘atest available, showed liquid assets $6,783,277 In excess of current Hinbil- ties, Including inventories and sup- plies, working capital amounted to 418,744,000, Previous to the recent upward movement in the common stock, the highest it ever sold at was 46%, in 1913 It was at that time that provision was made for paying off a part of the back dividends on the preferred, and reports were circulnted that the common would immediately go on @ Aividend basis. In July of last year, hefore the Stock Exchange closed, the stock sold at 19 On Saturday the stock sold at 58, Thus In a year the 412,888 common shares outstanding have appreciated $17,575,690 in mar- ket value, —_ > STRONG GUARD FOR MORGAN. Time of His Reappear OMce In Kept Seer J. P. Morgan, who, according to re- port, was expected at his office to- day, did not appear. It was an- nounced that he would not be at desk until the last week of this month, Because of doubled precau- tionary measures it was said that the exact time of Mr. Morgan's re- appearance would not be given out in advance, One of those who expected to see Mr. Morgan was Robert Bacon, for- mer United States Ambassador to France, who arrived yesterday from Paris, He was an early caller at the Morgan offices. Among other callers were two Russians, recent ar- rivala from abroad. Both inside and outside of the Mor- gan Building private guar evidence. The force of doubled from 9 until 10.30 morning, the period when the firm reach the office. ing the doubled. —_———_— Minister Sent to B A man who described himself Stephen Budden, forty-six years old, of No, 115 East One Hundred and Twenty-eighth Street, was committed to Bellevue Hospital for ten days for observation by Magistrate Cobb to-day in ex Market Court. He was ar- rested Friday, He carried which bore the tnstription, Chapel, Richmond Hill. For ‘the relief of the poor and destitu ———__—. NEW YORK COTTON EXCHANGE. Cotton prices on first call were off 10 points on receipt of pri- needed rains had fal- id other cotton sec- nent cotton report at condition on July 26 75.3, ago 76.4 and ten-year After the re- port was announced prices recovered 10 to 12 points. Open. Again dur- luncheon hour the force is High. Low. September... 8.96 8.95 = 8.96 October 9.20 9.15 9.24 December. 9.45 9.54 qanuary. 9.65 9.65 9.81 9.89 10.05 points. CHICAGO MARK WHEAT, Open, High Saturday's CORN, one, HK Wheat opened active and strong on heavy rains over Sunday through win- ter wheat States and the Northwest Trading was light up to noon, with! offering small and movement greatly | behind last year, Closed 13-4 to 2 cents net advance, Corn advanced, influenced by rise in wheat. enna ITEMS FOR INVESTORS. Pennsylvania Railroad System—Groas carnings of Hnes East increased 84 in June. Lines West incre; Total, all lines, incr increased $1,041, 540, all lines, decreased § tax Increased §: ed $6: Six months gro: 62,504. Net at after Bethlehem Steel Company grants vo!- untary wage increase of 10 per cent. to 17,000 employees a Swift & Company's York ied for the week duly Bast, i ee WAR STOCKS BOOM |: AFTER EARLY DROP. able decision in the trust case. onnabouse Electric advanced points to 1126-8. Railway Steel foring wained more than three points, re being rumors that the company bad large war orders. Closing Quotations. Wit vet changes from previon High. L byes Ajlesda cout sine... BAR’ ga da FS Aiiechatmers rf + M tg + oh Am r % Copper, Oil and fer Rathod Issues | Am § m3 m bi + Take Sudden Rise Follow- a 3 i + F ' % + ing Sharp Decline. ag 3 ig thw t hw A rise, @ reaction and then a sudden ea cae it. aim + % activity in copper, off and railroad Canadian (Vacific:’: 1404 1h t B issues were the features of to-day's or uN pt? af Fatty t 1% stock market. Bethlehem Steel did OM a vee. is +8 one or two spectacular things. It 'Cal"nOr"X inn’) dog is t opened at Saturday's closing, 255, | mt (an Gt pny ma t ° went to 257, dropped to 260 in the re- | {ricibig Sigel... 30 2 if active period, went to 266 on three! bre jo fy By Ay tS trades and finally climbed to 269%. Gen. Hes. a BS GR 1 Raliroad stocks were dealt in to alien ts. ht: iy iflw th toy sufficient extent to send them all up| {itt Pet BS Tin UR T ot from 1% to 2 points. Roading went | iret Sor #3 ty Ba 338 up 2 to 149% and Union Pacific gained | Inter ¥ Be By ee thy 1% to 130, a im pet ae a tis ‘The total number of shares dealt Kale Valtes Ay $8 In was smail, the number up to 1| Mar Motor % o'clock being only 356,606, against 680,- | HY 07 Friday and 770,412 Thursday. A hesitation in trading in many stocks was evident in the first few ead minutes after the market openod, but! Aetiae Consolidated the reaction ye Prices went up until came at the close of the first hour. An increasing firmness in stocks was manifest in the early afternoon. The bear faction failed to make any head- way and the sustained rise in the cop- per and raiiroad issues induced more genera] buying for both accounts, Maxwell Motors lea the field in the early trading, advancing 3% polnta| ! to §7%, and then falling off to 85%.| ." Allis-Chalmers rose 2 points to 35% and doubled back to 34%. American Can made two points to Te 59 1-2, but with the coming of the re- action slid down to 68 3-4. Locomotive likewise gained two points to 801-4, but receded to 79. In the steel stocks, Bethlehem achieved a similar gain, touching 257, but broke sharply to 250, U. S, Steel ‘ from a point rise to 675-8 declined to | Wet 67 1-4, and Crucible, after going down 13-4 to 661-2, rallied to 683-4, finally gliding off again to 671-2, which was lower than Saturday's closing. Air Brake followed the lead of the rest of the list, advancing 2% to 112, and settling back to 109%. Virginia Chemical gained 1% soon after the opening, selling at 37%, but did not long hold this price, the reaction tak- ing it to 36%. Westinghouse Electric, from a gain of 1% at 111% lost slight- ly, declining to 111%. Activity in trading shifted shortly before noon from war order stocks to the copper ore issues. Utah Cop- per went up from 653-4 to 677- Tennessee Copper rose from 36 8-4 to 391-4; Anaconda gained two points, to 71; Great Northern Oil went from 40 to 421-2 and American Smelters Joined in tne rise by going from 78 1-4 to 807-8, Texas Oil showed a sharp advance, rising from 133 to 1381-4, and Mex!- ++: een took a leap from 72 1-4 ‘The market closed quiet and steady on a recovery which brought the en- tire list up from one to two points. o tor a tow of the industrials there was no selling pressure. International Harvester, opening at Baldwin | th 983-4, sold up to 1041-2, its strength being based on crop reports as well as the hope of an ultimately favor- PRR FETE FE ‘Western FRPLEEEE SE. ttteetetetet | [ttt tte ett ettetttttt ttt “+2 * & } ‘ *e rv Blech ii 4 Piliman Po “Car, a= % Ray din ay We y i} $ 3 yea + Ts iis + % aN + 1% Sih + % wet y yi wt mt t + i" z tern Electric CHICAGO, Aug. 2.—The Western Electric Company's plant resumed operations to-day after the lapse of a week since tl ater to the East- land, To-day's revision of the cas- ualty Hst shows 838 identified dead, two unidentified dead and 140 miss- ng. Are You Ready For Your Trip? Take HORLICK’S Malted Milk with you when TASB Ag) Cam Bee Motoring, Fishing or Golfing. A nutritious, satisfying Food-Drink ready in a moment. A good light lunch when tired or run down, Simply di solve in water, hot or cold. A fine night's if you take a cupful hot B. Altman & Cn. A Sale of Toilet Articles for to-morrow (Tuesday) will offer unusual values at these prices: Hair Brushes, Tooth Brushes, Nail Brushes, 65c. |Bath Sprays, 15c.|Bath Sponges, 18c.]|Whisk Brooms, 85c. 95c. 15c. The Toilet Goods Department is amply stocked with foreign and American-made Extracts, Toilet Waters, Sachet and Toilet Powders and every essential of the well - equipped modern dressing room, all reasonably priced. A Special Offering of Blankets and other Bed Furnishings for to-morrow and Wednesday, will present decidedly superior qualities at very low prices. WHITE BLANKETS per pair ° ° 1$5.50, 6.50 to 11.50 Comfortables, Muslin Sheets and Pillow Cases; Imported and American-made Bedspreads at equally tempting prices. Fifth Avene -Madison Aven, a Pa Beet, us| 34th and 25th Streets ne nce SSE ere EtI New York al STRIKE RIOT MOBS HALTED BY TROOPS MASSENA, N. Y., Aug. 2.—With three companies of militia on guard at the works of the Aluminum Company of America, the strike situation here raigned to-day and held for the action of the Grand Jury. One man was drowned and two others badly wound- 2.50" TLANTG CITY was much improved to-day. The troops are in command of Col. Charles Sundays—August 16, 2! H. Hitehcock. September 12 Wednesdays—August 4, 18 7 Atlentie City 7.00 P.M, ‘ood only on Special Train each direction. PENNSYLVANIA R.R. Contrary to expectations, there wa’ no disorder when the plant was opened this morning. Workmen were allowed to enter without molestation, and many of those who went on strike Saturday were said to have returned. Thirteen alleged rioters were ar- by. Extraordinary Price Cuts For Our Great Mid-Summer Sale At All250 James Butler Inc. Stores Very Best Creamery BUTTER Absolutely the highest grade of fresh, sweet, new made delicious Cc Creamery Butter. Our sales are increasing thousands of pounds a day. Nowhere else can you buy such butter at this price; lb...... 336 ts Sugar . 20° 5 » Sugar... 29° PureLard ‘on. l 1° Flour, “" 12 «49° L4 Rich Belle Brook Evap- Can Sardines Daisies “3 = Eac Force & Shredded Wheat, pice. 10° Borax, Package 20-Mule Team....... Borax Soap, Cake Butler’s.... Big Box o Matches.......... Big Roll Toilet Paper. Grahams & Royal Lunch, }»....10° New Jersey Onions .. 2 ibs. 5e For refreshing Iced Tea and Coffee, try these: Essie Coffee, Absolutely the very bests 1b, sealed 35° 30 49¢ Stamps with je Essie Coffee Coffee, *: Superior PS lend of South American Coffee; strong 1 full bodied; He Teas, ab" ae Stamos e Mix 35° Ceylon Golden Tips, House Furnishing Dep’ INVINCIBLE Wash Boiler sige with strong station- ary woodhandles...... Cloudy Ammonia, 15¢ At All 38 James Butler Inc. Meat Markets Chuck Steak, Lean and juicy, bh... 15¢ Boneless Pot Roast, solid meat,1b.18¢ Corned Spare Ribs, #::":".... 10¢ Chickens, For Soups or Fricassees, lb. 16 Essie Grape Juice, 10¢ At All 132 James Butler Inc. Licensed Stores Duffy’s Malt Whiskey, bttle.. '75¢ Princeton Dry Gin, 75. Gu.""" 69¢ Sauterne, Feslient bes ait wine of 33¢ 50 al Stamps with case of 24 bottles St Lager Beer, tippers ss iccht's Deposit of 25c ode for return of case and empty bottles, Double ZAC Stamps Wednesday---No Stamps with Butter or Sugar Orders Delivered Promptly FREE of Charge Best for cook- ro) os jong, India-Ceyion, Cleans like magic, large bottle......+esseseeces Clear and pure; full pint bottle...........