The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1900-03-03
BIG GAINS IN BUSINESS.
Enormous Net Profits Made In One Year
by Large Business Establish
rnents Etc.
Philadelphia Lsdgsr's Mss0 York Letter.

Philadelphia Led0sr's Neso York Letter.
The fact that the Carnegie Company earned
last year $21 600 900 on capital of $25 600, and
that the estimated profits for this year are $4O.-
100000 has naturally been the cause Of surprised
comment in all parts Of the country. The s25,-
100000 capitalization, however, does not repre-
sent the real valuation of the plant and busi-
ness, and on a fair valuation the rate of profit
would be much less, although still very great.
But enormous profits were not confined to the
iron trade in the year 1899.
Every line of business enjoyed extraordinary
prosperity. This has been made known in gen.
eral way, by the great bank clearings. the re-
markable railroad earnings and other statistics
of business, as well as by the dividends declared
by such manufacturing concerns as are organ
lied in the form of corporations
But little is known. in a detailed way, outside
of banks and other institutions which lend
money on mercantile paper, of the actual profits
of mercantile business. There has been an idea
that while business was unprecedentedly large
in 1899, the rate of profit was small in other
words, that the immense transactions went hand
in hand with low prices that carried only slen-
der profit considering the magnitude and risks
of business.
BIG MERCANTILE PROFITS
But the contrary is the truth. am able to
present statement just prepared by a leading
banker or this city, and based on actual returns
made to him by some OF the largest mercantile
houses in the country. / can, of course. give
OILY Only Ine tot tai me names are witnneld' put
everywhere as standing among the best in the
land. Still they were not selected with view
of the largest results, but taken at random, in
order to obtain a fair average exhibit.
The statement shows the business of 90 lead
ing houses in 10 trades and IA different states in
the territory extending from New York to Colo
RADIO, and from Georgia to Minnesota. The
trades represented are wholesale and retail dry
goods, wholesale groceries, tobacco, cigars, silks,
hardware, furniture, packing, gloves, clothing.
leather, cloaks. collars and cuffs and boots and
shoes: These firms have an aggregate capital of
$l2, 432.OOO an average of 81 OO0fOr each firm
A RATE OF ALMOST 30 PER CENT.
The net profits In 1899 amounted to the enOr-
nous sum OF $35 225 000 average of $6l7 600 for
There can be no question of the accuracy of this
exhibit, and 1t Is, to say the least amazing. 1t
reveals the prosperity of the country in shape
that everyone will understand and appreciate.
There isn't stock and bond sold on the New
York Stock Exchange which pays an annual
dividend or interest equal to this.
WHOLE COUNTRY PROSPEROUS.
With the exception of the Carnegie Company,
the Standard Oil Company, three or four trust
companies and few mining companies. there
are no corporations doing business in the United
States which yield a return, on the money in
OF earning over % per cent. year. when money
can be borrowed on call in Wall street at 2a2x
per cent. and when Government bonds are sell
ing on the basis of * per cent. year.
Even the per cent. bonds to be issued under
the terms of the new currency bill now pending
in Congress are selling in advance. when is
sued," at l03 and even higher, and if they are
placed on the market at the same basis on which
the and per cents. are selling they will be
worth 100. The banker from whom obtained
of mercantile houses believes that it is not too
much to say that the business of the country
last year was done at an average profit of Is per
cent.