The herald., 1898-03-09
THE INVESTOR
CONDUCTED BY 6to. A. DoBIxsoS
OFFICE OF THE HERALD,
LOS ANGELES, March S, 1898.

OFFICE OF THE HERALD,
LOS ANGELES. March s, 1898.
"IIe who thinks he can do without the
world deceives himself; but he who thinks
(he world cannot do without him Is till
more in error"
The American Banker of the I'd inst. says
khat the announcement that large con-
bignment of gold was on Its way to this
country had scarcely any significance In
the midst of the war alarms Of the week.
And yet not less than 81, 100000 gold was in
4 transit. a part of 1t consigned to the Ma
tional city bank. The decline in sterling
exchange which made 1t possible to import
Il the metal is said to be due to the advance
! In the rate for money In the New York
| market and the fall of prices at the stock
exchange, which induced considerable for-
Y eign buying.
It was estimated that about 81 900 900 per
/ day was shipped to interior banks during
the past week from New York institutions.
This, according to the same authority, has
helped to raise the money rate, but unless
the political situation becomes blacker the
movement Is not likely to involve much
greater amount than that already trans
ferred. The interior banks are well sup
piled with cash, and what they call for now
cannot be for any other than precaution-
ary purposes.
o o
Last year was seemingly profitable one
for the fire underwriters. The surplus of
the companies doing business in New York
state showed an increase, according TO
Bradstreet's, at the close of the year OF
over SIS, 800 900 as compared with the end or
the preceding year, as appears from the
figures presented in the annual report OF
Superintendent Payn, and the number OF
companies reporting to the department
showed an increase of over IL per cent.
It appears that no attempt has been made
to continue the organizing OF Lloyds IN
surance corporations by utilizing the char
ters of old organizations claiming exemp-
ton from departmental supervision. Inc
superintendent expects through decision
of THE courts to stop the operations OF sew
eral of these organizations now doing pusi-
ness Among the suggestions made by Su-
perintendent Payn, is one requiring tnat
the minimum number of directors OF all
insurance corporations shall be equal to
the number of incorporators required and
another recommending that the depart
ment be empowered to pass upon the cor
porate title of all insurance companies ad-
mitted to do business in the state so as to
prevent the use of the name of any exist
ing corporation or of a name closely resem-
bling the same. Mr.. Payn is now prepared
at this time to recommend an amendment
, to the law requiring stated examinations
of insurance companies, but he declares
himself to be firmly impressed with the
belief that all insurance corporations
should be examined by the department at
reasonable periods.
The Chicago Times Herald has an article
upon reports of bond dealers of Chicago to
the effect that a new class of municipal
bond buyers has appeared on the market.
1t states that the bond dealers are receiv-
ing calls from persons of moderate means
seeking safe investments. These people be-
tray by their actions or frankly admit that
they have never invested in bonds before.
1t is significant that so many have newly
acquired surplus capital that they can tie
up in long time investments 1t Is also an
indication of modifying conditions that
they should be seeking securities returning
less than per cent interest on the aver
age. Dealers regard this appearance of a
new class of buyers as in keeping with
se general situation. They find the public
hungry for bonds and the supply insffi-
cient. In other words, there is a great deal
OF money in the hands Of private parties
seeking investment, and its widespread
distribution is indicated by the new class
OF inquircrs.
An instance OF the unexpected coming
to pass is shown In the following case:
Regular depositors sent currency to the
bank by registered mall 1t arrived at 1880
y. m. one day, but the bank received no
notice of its arrival until p. m the next
day when the teller refused to receive the
letter, because it was against the rules of
the bank to receive money at that hour.
That night burglars stole the registered
package from the postofflce. The court
held that since it could not be inferred that
the bank promised to pay the depostors
for the money in the absence of negligence
on the banks part, the depositors could
not recover from, it, Simpson VS.. Pemige-
wassett National bank IN. H), SS At. 1O05.
O O O
A Canadian contemporary notes the most
lavish management In the De Beers Con-
solidated mines. The auditors fees for 1867
amounted to $1,000. while directors fees at
tained the still heavier total Of $7,25o. In
addition to this the life governors remu-
neration for the year came out at s6O1 S2o
Donations were presented to public lnstitu-
tions during the year to the amount OF
s107, sos, and altogether the general charges
of the year aggregated si64,690. In the
twelve months ended June 80, 1897, the dia-
monds made available for sale realized
$11, ign, ,297. The working expenses of the
year. including $917, ,075 debenture interest,
and $S77, $50 written off for machinery and
plant, were sS,4S7,690. leaving balance of
S1O162 S05 increased to $1i, ,313, 150 by the bal
ance brought forward from 1856, divi-
dends on investments, rents and miscel-
laneous items of revenue. Out of the final
balance of $11,313.150, dividends were dis
tributed to the amount of $7S97,91O leav-
fing So, 415, ,24O to be carried forward to the
credit of the ensuing year.
o o o
1t was held In Crompton VS.. Spencer Or.
~, 3S Atl. 1902 that in the absence of any
agreement affecting the liability of sue
cessive indorsers, their liability is deter
mined by the order in which their names
appear on the note.
National Bank Changes
The latest bulletin of the comptroller of
the currency, dated February 49, 1898, gives
the following, among other changes:
Application to organize National Banks