The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-22
STANDARD OIL DIVIDEND s24,OOO,OOO
so FAR THIS YEAR.
United states steel Corporation Will
Have sI2.OOO.0oO i'm Expenses This
Year-GeneraI Outlook.

81, 0o0. 900. In the vast aggregate little
matter of two. three or four million more
or less in the course of year Is insignifi-
cant.
Standard Oil stands to-day the most sue
cessful industrial combination ever organ
lied. In it's present form it has been in
existence something like twelve years, al
though it had it's birth about thirtyfive
years ago. Mr.. John ID. Rockefeller COM
menced his fortune building late in the eos.
and is to-day. in all probability, the richest
man in the world. He is supposed TO own
more than 10 per cent. of the capital stock
of the gigantic oil trust, and his invest
ments in other properties believed to
approximate in value more than $4,000
eco
The richest of his associates are William
Rockefeller and II. II. Rogers. Estimates
of their wealth range from s3o0.OoO,Ooo TO
S50oOo0,000 each. John Archibold is next
in line with a fortune in excess OF
100000. In seeking investments for their
surplus money, they have been obliged to
go into railroads and many industrials be-
seies Standard Oil. They do not own a
majority of the stock of the Steel Trust,
but their holdings are sufficiently large TO
practically dominate that corporation.
Mr.. II. G. Prick is understood to repre-
sent the Standard Oil policy IN the man
agement of United States Steel, although
j. Pierpont Morgan remains nominally in
control. The Morgan interests, however.
have been greatly diminished in the last
year or eighteen months, and they are now
In small minority. Important changes in
the personnel of the management are ex-
pected, and these changes Will further en-
phasize the dictatorship of the Rockefeller
party.
practically abdicated Although willing to
surrender actual control of the mammoth
steel combine, Mr.. Morgan is still far from
being dead one. In popular theory he
Is out of the running but in the knowledge
~ lin it," The Morgan firm has lately
Heated some of the most important rail-
road and national loans besides swinging
the Panama canal transfer. which involved
the payment Of 100000. The Morgan
name does not command the popular re-
but his money still talks, and he has more
OF 1t than ever before in his life.
Mystery still enshrouds the details of the
100000 Panama canal payment. Appar-
emily the larger part of the money has
gone abroad. There is good reason for be-
lieving, however, that at least one-half
has found its way into the pockets of the
American partners of the French schemers
who worked the proposition off on the
United States government. The deal has
be known beyond the limited circles of
those who have profited by the transaction.
Mr.. Henry Waterson was close on the trail
OF the American participants in the deal.
but he WAS deficient In the matter of proof,
and stands to-day discredited by reason of
his announcements in regard to the affair
Some day the inside history may be written,
but for the present the public is likely to be
kept in the dark.
1t is expected of United States Steel that
not less than 100000 will be saved in
expense of operation this year. as compared
with last The reorganization of the COM
pany has been proceeding for more than six
months under the personal direction of Mr..
Prick. The last stages of the reorganiza-
ton are at hand and many important
changes are expected. This enforced econo-
my may save the dividend on the preferred
| stock, but that Is not certain. Already
there is decided talk that the next dividend
Will be cut and that thereafter II will be on
per cent basis. Preferred Steel share
/ dividends are cumulative at the rate of
/ per cent per annum. and any reduction
below that figure must be made up out OF
| subsequent earnings If these earnings are
| large enough. Should returns be INSULT
/ cient. however, there Will he an accumula-
ton of Indebtedness to stockholders as was
the case with Leather, which stopped pay
| ments entirely for several years on its
| preference stock until total arearage of sc
per cent piled up. In the opinion of Wal
OH Steel common and its voting value will
be its only virtue. This, however. is only
! an opinion and against 1T is the view held
by many that eventually common Steel viii
experience great revival
Estimates are going round that more thar
$500. 900 net new wealth is created in the
| United States every year. This is believed
to be under rather than above. the truth
1 ST LAT ind uvax
into investments. Any interruption results
In a piling up of a surplus and a cloggine
of the channel. Such an interruption began
about year and half ago, due TO tn,
| liquidation of inflated securities and los:
of confidence. Latterly the damned vi
capital has been finding its way into bonds
The Wall Street Journal. financial author
ity of excellent standing, figures that since
the first of January last there has been al
absorption of bonds and corporate notes Il
the amount of $500 600. 900. OF this $4,000
600 is in the form of notes running from on,
year to three years. Eventually this in
debtedness will be funded in long-tim
bonds The absorptive ability of the mar
ket borders on the marvellous Yet ii merel,
represents the accretions to our nationa
wealth
Market conditions are steadily improving
although from surface viewpoint the con
trary might appear to be the ease AS
steady swallowing up of corporate bonds o
every description. and the process is goin;
on at a rate which will. ere long, exhaus
the present supply. big as IL is. After tina
idle money is likely To go into stocks an,
| far-sighted bankers and financial expert
are looking forward TO another period o
speculative activity.
This period may be delayed by reason
of the presidential campaign but at thi
writing apprehensions in that regard ar
not acute. The apparent failure of tn
radical element in the Democratic party
which has chrystallized around the Hears
movement. TO gain the ascendancy is re
garded by conservative people in the finan
cial district as being an exceedingly hopeful
| sign 1t il believed that the st. Louis con
vention will nominate safe man upon
sane platform, and that the subsequen
campaign will be thereby robbed of dis
turbing and sensational features. AS be
tween continuance of the party in powe
and the election of a Democrat who wi
not threaten the prosperity of the countr,
there will be small choice. The Wal-stree
rancour against Mr.. Roosevelt. which wa
strikingly manifested down to a recen
period. seems 10 have been modified. Ii
now known that the present White Hous
incumbent has the Endorsement OF powerfl
banking Interests, and he Is much strongo
In the financial centers than ever befor,
The presidential campaign, as a disturbin
factor, is not likely TO cut as much of
figure as usual
The heavy export movement of gold ha