The herald., 1897-11-12
OFFICE OF THE HERALD.

OFFICE OF THE HERALD.
LOS ANGELES. Nov. H. 1897.
President H. J. Woollacott of the State
Loan and Trust company, who has re-
Gently returned from an eastern trip. found
one thing that more than anything else i'm
pressed him from a business point Of
view, in visiting the cities Of New York
and Chicago, and this was the ruinous ef-
feet upon the trade of the average retail
dealer Of the competition carried on by the
great department stores These stores sell
everything from a needle to an anchor.
and supply every imaginable domestic
need. They are content with an apparently
tnfiIntesimal profit. An article costing six
ty-six cents they will sell for sixty-nine
cents. when the ordinary retail price is q
dollar. Under the effects of such competi-
tion the ordinary retail dealer must be
curshed out of existence. The department
stores also run at the minimum Of expense
Tor help. thus pushing wages down to a
point where 1t becomes impossible to live
without outside assistance. Mr.. Woolla-
colt states as matter Of his own observa-
tion that in one of these big department
stores in Chicago employing 5000 people.
there are only 400 men, while Of the re-
mainder, namely 2sOO women, sixty per cen
are girls Of 10 years and under. who each
work for about a dollar and half week.
Comment il superfluous.
Our lively contemporary. American In
vestments, published in the progressive
city of Buffalo. N Y. says some very
pertinent things upon the valuation of gas
stocks in the market today. as follows:
When the electric light poked Its nose
into existence, many heads were wagging
and tongues prophesied the coming doom
Of manufacturing gas for both household
and commercial purposes. For a while
there was something more than stagna-
tion in prices of stocks; there was a posi-
tive decline. To large degree this decline
was sentimental one. being based on a
future stage of electrical development
which II was expected would be reached
in the very near future. After the alarm
had subsidized the general average price Of
stocks was fully restored. and in a very
large measure has continued to the pres
ent time. There are many most excellent
reasons why there has been no general
0CuIOlttAVu VI StOCh pEiccS. 4NO oOuUt tHcic Z
has been q great decline In the price Of gas
within thirty years 1t has been cut square,
~ in two in Buffalo, N. Y.-but there has
been a corresponding decrease in the cost
Of making 1t, and this, too, without any
sacrifice of Its candle power. The reduc-
tion In cost has been indeed very material,
helped by consultations. which have cut
down expenses to almost the lowest possi-
bic minimum. But the most surprising
thing of all Is that today there is more
gas consumed than when the electric
lamps put In an appearance This can be
accounted for not only by reason Of the
natural growth that comes to our cities,
but by the Introduction of gas into the
larger towns and villages, the construction
of plants adapted to smaller places having
been brought about without any material
difficulty. We have, therefore, the loss In
selling price almost fully made up by
other factors.
The desire Of our people to have their
houses heated by some clean system has
: brought about the use Of manufactured gas
to considerable extent. The price now
prevailing. of course. prevents its univer-
sal acceptance. but 1t Is not too much to
hope that further reductions are possible.
which will increase consumption and main
tain basis for fair dividends. Coming
along with the general improved tone of
all reputable securities. gas stocks will
not only be able to hold their own, but may
reasonably be expected to increase in
price. Certain 1t Is that there is no i'm
mediate necessity Of slaughtering them in
he q rlrot 70 at,vr vxyorf "
Of mention is that electricity has not met
all that was prophesied for 1t. and we may
even say that in the rapidity Of its devel-
opment there has been some disappoint-
ment. The good old days. before electric
ity was thought Of as being practical for
lighting purposes. when dividends on gas
stocks were extravagantly large, may new
er come again. Indeed. in view of the slow
but sure decline in interest rates, 1t could
not be expected that they could continue,
but there Is still enough left.in the busi-
ness not to occasion any alarm. We may,
therefore. confidently expect that gas
stocks will hold an important place In the
list of reputable securities of our country
for many years to come.
A Chicago dispatch states that James H.
Eckels. comptroller of the currency, has
been elected president of the Commercial
National bank Of Chicago. and he will as
sumo the duties on January l. His resig-
nation of his present position will be sent
to President Mckinley as soon as Mr..
Eckels' annual report Is sent in to congress
next month.
\ 4 ~
The New York clearing house committee
has sent the following notice to banks not
members Of the association. but who clear
through members. with respect to their
weekly statements. which are hereafter to
be published:
In order to secure uniformity in the re-
ports made to he.hd,aring house by nom
member banks. 70, are requested by the
clearing house committee to observe the
following: The average amount of loans
and discounts and investments should con-
sist Of loans and discounts, bills receivable
and securities owned by the bank-no real
estate Investments. The average amount
of specie should consist Of gold and silver
coin, United States gold and silver certifi-
Gates. The average amount of legal ten
ders and bank notes should consist Of le-
gal tender notes and certificates, treasury
-