The herald., 1897-09-28
OFFICE OF THE HERALD,
LOS ANGELES, Sept. 27, 1897.

OFFICE OF THE HERALD,
LOS ANGELES, Sept. 27, 1897.
suit was recently begun by the State
Loan and Trust company against its own
president. and certain other parties who
happened to be bondsmen Of a former Sec
retary of the institution, to recover the
sum of twenty-five thousand dollars. al
legged to be the amount of losses incurred
by the bank through the negligence and
bad loans made by the deceased secretary.
On the other side 1t was contended that
the apparent losses had largely been made
up through later and more careful admins
tration, and that, in any event, the bonds
men were not liable for errors of judg-
ment in the making of loans which had
been sanctioned by the board. The de-
murrer to the complaint has now been sus-
tanned which confirms the view of their
own liability taken by the bondsmen, and
will no doubt exonerate them from any
further annoyance The unwisdom of
ibinging such suit at all was commented
upon in this column at the time the pro-
ceedings were threatened and the parties
interested were recommended to settle their
differences without an amount of pub
liicity that might prove detrimental to the
interests of the bank. The advice was not
taken, but events have proved that 1t was
well grounded.
The report of the Bureau Of Statistics
just out gives preliminary figures of the
foreign trade Of the United States for Au
gust and for the eight months ending
Herewith. 1t shows an increase in the
value Of exports and a decrease in the
value Of imports for the month, but in
creases on both sides of the account for
the eight months. The exports for the
month were valued at $50. 1893. which
represents an increase of over S2,2 900 as
compared with August of last year and
marks the largest total for any correspond
ing month on record. The imports for the
month were valued at $S9, SIG, $40. which rep
resents a decrease of nearly $9.600.000 as
compared with the corresponding month in
1895. OF the imports those free of duty
were valued at $21, ,231, ,592, an increase of
over $5S6,0o0 as compared with the corre-
spending month Of 1896 The dutiable i'm
ports were valued at s1S,645,O4S, decrease
Of nearly SO 100000 as compared with Au-
gust OL lASt year, Dull AlOutAS SAOWcu
an excess of exports. but that for August
last amounted to $4o,s5s.75s as compared
with $19.1s2, SIG in August 1896.
For the eight months ending with Au-
gust the exports were valued at $641, ,702, ,673,
an increase Of over $780, zoe, 900 as compared
with the corresponding period of last year.
The imports were valued at $546 47S,4 ,46O an
increase Of over SIS, 900 over the like
period of 1896. OF the total imports, those
free Of duty werc valued at $3.50, ,01S an
increase Of over $66, 900 as compared
with the corresponding months Of last
year; while those paying duty were valued
at $266, ,0s1, Az, an increase Of only little
over 100000 as compared with the like
period of 1896. The exports showed an ex-
cess over the imports for the period
amounting to $95,229.213, which was. how
ever, less by over $14, 400, 900 than the excess
of exports for the corresponding period of
last year. In the first eight months Of
1896 the dutiable exceeded the non-dutia-
BILE imports in value by over $42, 1000, but
in the corresponding period Of 1897 the nom
dutiable goods exceeded in value those
paying duty by a little over s14,4oO.oO0.
Foreign investors are shy, says the News
Letter. The London Shareholder derives
some consolation from the belief that
should there be general boom" in the
United States, there is no doubt but that
British investments will benefit If all of
these are like their California ventures, it
will take most extraordinary imitation
to bring the investors out even. People
who will persist in paying million dol
lars for q property worth perhaps $4,000
on the outside, cannot expect to make much
II they lived to take their capital and a
fair interest thereon out Of fair grade ore
body with reserves good for q mill run
of hundred years. Take the best invest
ment Of the kind now offering from this
quarter in the London market. and full
sixty per cent Of the capital can be set
down as profit over and above a 1egiti-
mate price at which the property could be
obtained at first hands. The promoters
make the money at the start. They take
no chances on the mines, as they know bet
! ter. 1t would seem that they are beginning
to recognize this fact abroad, judging from
the experience Of some of the promoters
! recently. One company we know of which
, blossomed out with 9100000 capital sue
ceeded in disposing of just shares. enough
! to make up the sum of little over $500.
In other cases small syndicates among the
commission brokers are packing schemes
along by putting up little money waiting
for a more favorable feeling among the
public.
! The foregoing is not only true as to min
ing schemes, but will apply with equal
force to some Of the land and water in
vestments into which British investors
have been roped in Southern California
\ + =
Judging from the tone of President Hem
dricks' address to the ninth annual con-
vention of the National association Of Life
Underwriters at Milwaukee, many among
the insurance men, says Bradstreet's, are
chatting under the system of state regula-
tion, and would, If they could, exchange
1t for system of national supervision.
Mr.. Hendricks said the problem involved
was one growing in Importance and de-
manding solution at no distant date. When,
he said, the ineffectiveness Of state super
vision and the abuse to which it is liable