The Washington times., 1901-10-14

llneu Tor assuring lasting harmony among
the roads west of the Missouri River. the
complication was by no means unraveled.
The problem which blocked the road to
further progress lay in the final disposal
of the $155 10000 of Northern Pacific
shares which had been bought. much of II
at fancy prices, from Individual specu-
latorS and investors, and for the time
being lifted from the market. Not only
has the tying up of this enormous amount
of capital seriously reduced the resources
available for other enterprises, but the
syndicates which had competed for the
control of the Northern Pacific have seen
that the securities which were bought in
the crisis Of last May could not be turned
back to the public IN their present form
except at heavy sacrifice.
The only way out of the difficulty is by
some such plan as has been suggested
new proprietary company should be form
ed to take over the Northern Pacific
stocks, the shares of the Great Northern
and presumably the hypothecated Certi-
ficates Of the Burlington and Quincy. This
rev concern might issue securities of its
own. it might simply serve as hold
ing company. but in either event the prac-
teal result would be to materially
strengthen the credit of the Northern Pa
ciiic securities by pledSing to them the
credit of the other roads. In this way it
might reasonably be hoped that the
Northern Pacific shares, or their equiv
alent in new securities. would be ap-
praised high enough by the investm.nt
community to allow the promoters of the
undertaking to tighten their burden with
out loss So far as the probable success
of the proposed consolidation is concern
ed, the significant poin- is that the cap
italist who is able to vc'e majority OF
the Great Northern stock is also the Co
partner of the banking interest which is
most prominently identified with the
Northern Pacific company. There Is more
uncertainty to the attitude of the Un-
ion Pacific party, which supposedly still
owns the bulk of the Northern Pacific
preferred shares toward the scheme. one
story has it that Mr.. Morgan has n very
large block of st. Paul, and that he has
agreed to sell this to the Union Pacific
people in return for ihe sale to him OF
Northern Pacific stock.
The October report of the Agricultural
Department last week hardly reveals
ANYTHING new in the situation of the corn
crop. Some slight improvement took
place during September and this is fav-
orable in that it is contrary to precedent.
But the indicated yield is raised only
Slightly. and as it stands now the sea-
sons shortage. as compared with the pro-
duction of a normal year. will be no less
that 650,000,000 bushels. Unfortunately
there is no reliable computation of the
supplies of old corn held on the farms.
The highest private estimates. however,
DO not place these reserves above 800 0e0,
OJJ bushels. and most estimates fix the
amount decidedly lower. So on the face
OF things il will be seen that when the
require ements for fodder and seeding are
deducted and provision made for some
sort of reserve for the ensuing year. the
balance available for sending to market
VIII be comparatively small. Already this
deficiency has been shown in the corn
which were less last month at
Chicago than in September, 1900. and
again in the exports. which were 10 0O0 600
bushels in the month last year and only
z: $4,000 bushels this year Inasmuch as
the price of corn has long since discount
cd The shortage Of yield. tn farmers
have had no motive for delaying ship
ments. and hence no increase can be ex-
p' ctcd from the present movement which
at the best is far below what 1t was in
previous years.
But when it comes to calculating the eff
feet of the corn damage upon the move
ment of the product there is one counter
balancing factor which is of the highest
Importance TO observe. The last official
figures of wheat. subject only to the re-
vised estimate which is not given out un-
til January, indicate a crop of GA, 900 600
bushels. or l22 100000 bushels more than
were harvested last autumn. At an aver
age price of 40 cents bushel this viii re-
turn the farmers $S5. 900 600 more than the
crop of a year ago. These increased prof
its, moreover. are distributed principally
throughout the sections which have suf-
fered most severely from the damage to
corn. 1t is obvious that they Will go far
enough toward offsetting the financial
losses from the corn crop to prevent any
power of the Western community. Bank
clearings, which show a uniform enlarge
ment of the local trade volume over last
year. are very strong testimony on this
point. And. in further confirmation, come
the reports that the car capacity of the
Western roads is overtaXed in the efforts
TO handle the present movement of mer-
chandise from the distributing centres.
In connection with the earnings of the
United States Steel Company and the re-
cent report put out. the following bul,
letin, later learned to have semi-officlal
authority. was on Saturday published by
one of Wall Street news agencies:
There has been uncertainty in the |
street as TO how the six months state |
ment of the United States Steel Corpora
ton was made up. Some have supposed
that II was a cash statement, and that |
payment for goods sold early In the year |
came in during the strike period and help |
ed make the good statement for the last |
quarter. Others have thought that the |
National Tube extra dividend exerted an |
Of something like $S,Oo0,O0o on |
the statement. making it better to that |
extent than 1t would otherwise have been. |
We are able to say that the statement |
Of the Steel Company was not cash |
but an earnings statement. |
The method employed in reaching the re- |
suit was this: Each of the constituent |
acting through the respective I
mills made up a statement showing on
one side all items of cost and onsthe other
Income due from the goods delivered dur
ing specified time. The difference be-
tween the two was in each case the profit
made by that mill or that company, and
the total OF these profits was the net
earnings of the Steel Corporation for the
time given. This accords exactly with the !
language of the official statement, which |
was net earnings from operations for six |
months ended September 30. 1901
THE net earnings of the Steel Company |
as given from time TO time can be re-
garded as the profits of the controlled !
for the time specified the |
goods manufactured and sold. They are !
calculated neither upon orders that may |
come in, nor upon the money that may |
come in but are the profits on the goods !
as manufactured and billed to the buyer. |
This removes any doubt which may |
have existed as to the integrity of the net 1
earnings of S54.9J4,SIl. The dividends re- |
ceiyed by the constituent companies had |
ply the total of the profits Of the various |
controlled companies for the six months |
ended September 30 1901.
The monetary situation shows improv- |
rnent in many respects Crop demands |
have reached the maximum, and within /
three or four weeks the return movement |
of currency should begin. Money rates |
seem ample for present requirements |
three months of liquidation in the stock |
market having contributed materially to- /
ward averting stringency during the crop |
moving period. II Is well to bear in mind. !
however, that little relief can be obtained |
from gold imports in event Of rates work |
ing upward here. The financial crisis In |
Germany is by no means over, and the |
strain In monetary circles over there Is |
still intense Germany. Is just now pass |
ing through "A period OF retribution for the |
reckless speculation in industrials and the |
instances of rotten financing |
which have brought a lot of German pro- |
moters under the ban OF the law and cast |
\ NItn int Nvtll