The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-07
CHEMICAL BUSINESS
IN FINE SHAPE.
One Reason for Drop is Enor'
NOUS Amount of Other
Securities.
(Richmond News-Leader.)

Bankers, brokers and others IN Rich
mond more or less prominently identified
with the movement of stocks, express con-
fidencc in the speedy recovery of Virginia
Carolina Chemical
Officers OF the corporation declare that
being intimately acquainted with the in
ternal conditions, they know of absolutely
reason for the decline in prices, except
that their stock, classed as an indus
trial." has, perforce, been included III the
general slump of that class of securities.
I'VE are as much astonishcd at the de-
cline any one else can be" said First
president Whittle, of the Virginia
Carolina Chemical Company, to News
Leader reporter this morning. I'VE know
there is absolutely no reason Tor 1t, he
added, land that our prospects are bright
er than they have been.
President Morgan, Treasurer Travers
and Secretary Crenshaw, with other prom
inent men in the company, are out OF
the city. The disturbances IN the stock
market have not deprived many leading
business men of their usual summer va
cations and, therefore, interviews are not
easily secured.
but small part of the total ownership
of the stock here. Most OF this is held
outright, however, for investment pur-
poses and the owners are not troubled
by fluctuations in prices. The speculative
and collateral holdings, indicated, APP
pear to be inconsiderable.
II had no idea the price had fallen to
such an extent" said Mr.. White, until
a friend came in yesterday and tOld me
about it. l was amazed. We are abso-
lutely confident, but little hurt as to
our feelings. Our condition and prospects
were never better and statement issued
from this office i'll July accompanied by a
letter to the stockholders written by Sec
rotary Crenshaw, crowed loudly over the
fact that while every other industrial stock
had gone down in the general storm that
has swept the market. Virginia Carolina
stood firm rock. We believe our po-
sitiOn unassailable, and the present de-
preston seems to be due to the fact that
there are no buyers. If there were mil
lions or horses to sell and none to buy,
you can imagine what the price would
be-"
TURN OF THE TIDE.
On every side the conviction that the
stock will take an upward trend is firmly
rooted. 1t is RichmOnd's pet industrial,
and thousands of shares are held here,
though just how much could not be ascer-
tanned this morning, as the company's
stock books are in New York, and are
only brought to the Richmond office
when dividends are declared.
1t seems to be a fact, judging
from the general opinion of financiers-
that less of the stock is here now than at
any previous time in years. Some of the
largest institutions say that their holdings
OF 1T as collateral are comparatively in
significant and less than usual.
A number of bankers and brokers seen
this morning, all regard the situation as
far as this stock is concerned with the
utmost confidence. Their views coincide
with those expressed by a member of the
firm of Scott & Stringfellow The cause
of the decline, he says, is due to the mar
ket conditions at the present time and to
the, universal lack of confidence. 1t is not
justified by any of the facts known in
regard to the Virginia Carolina Chemical
Company.
COMPANY'S STATEMENT.
The statement issued in July showed
that there was $4,000 900 cash on hand
accounts receivable $4,000,00O, bills re-
ceivable $4.50O,000. In addition to this
so, 900 the company had merchandise
on hand amounting to $5,600,00 in prepa-
ration for next years business The corr
pany owed bills payable 81, 500. 900, and to
its subsidiary companies $4,000, 900, with
accounts payable about $500, 900, making a
total of about 50, O00
This shows excess of quick assets over
current liabilities of about $1,000. 600
The company's properties are valued.
according to their statement, at about
Sal, 900, 000 against which there are col
lateral trust bonds amounting to $1,000, 100.
secured by certain particular properties.
The business of the company for he
year just expired showed surplus profits.
after paying per cent. on S12, 100000 of
preferred stock and per cent on $23 0N0.-
900 of common stock of about ST 900
only. Last year the surplus profits OF the
company were about s1.eOOO0O. Last
year, however, it only required about
5000. 900 to pay the dividends on the COM
mon stock, since the full amount of coni-
mon stock was not then outstanding for
the whole year.
The falling off in the profits of the com
pany arc understood to be due to peculiar
conditions in the fertilizer trade generally.
Competition was said TO be very severe in
the states south of Virginia, which result
ed III lower prices for the product.
The profits in the cotton oil business,
which is a feature of this company's busi-
ness and for the purchase. of which SIG,
600 GOO of its common stock was issued,
were not as large as the year before, due,
it is understood. to very sharp competl-
ton in the purchase of cottonseed and to
other causes The company, however, IT.
creased the value of its business. both n
the fertilizer and cotton oil departments.
very largely. It's output of fertilizer was
over 200 900 tons greater than the year
before, and its output of cottonseed pro
ducts was enormously increased. The
company is believed to have established
firm hold, both on the fertilizer and cot
ton oil business, which it can MAINTAIN
against all competitors, and the policy