The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-14
General Financial News.

1t will be at least a month and a half or two
months before all the losses at Baltimore can
be adjusted by the insurance companies. After
the adjustment the companies are allowed sixty
days in which 10 make payments, but they may
pay cash. less 1 per cent. upon the demand of
the assured. at the option OF the companies
1t is probable that by taking advantage of the
sixty-day delay a considerable part of the losses
could be paid out of current receipts on premi-
ums. Expert insurance authorities express the
opinion that mary securities will be sold
by domestic fire insurance companies to pay the
Baltimore losses, but that, If their cash on hand
is insufficient to meet their obligations. the COM
panies will raise the money in part by hypothe-
eating securities temporarily with banks and
trust companies So far foreign companies
are concerned IL is said by the same authorities
that they would sell any of their American
securities because they required by law TO
keep hand a fixed amount of them, but would
offices This proves that the Baltimore losses
will affect the money and foreign exchange
markets more than they will the market for Sc
curitie. And il is the opinion Of experts in the
insurance business that the effect upon the
be much less than has been anticipated, because
they will be made so gradually. 1t is also their
made the early estimates of the amount of the
losses will be shown 10 have been greatly ex-
aggerated.
In the death of James b. Colgate. senior mem
Der of the New York Stock Exchange firm Of
]. B. Colgate & Co., the exchange loses its Sec
ond oldest member Mr.. Colgate became men,
Der in 1853. and at the time of his death had
been for fifty-One years. He was also for
years president of the Gold Exchange and a
strong advocate of the reconciliation of silver.
the Bank of the State Of New York, and al
! though eighty-hve years old. in close touch
/ he spent much time in church and educational
| work. and was president of the board of trustees
of Colgate University at the time of his death.
It is the present intention Of the secretary of
the treasury to make one-half of the disburse-
ments required by the Panama treaty out of the
| United States deposits in banks and the other
half out of the funds in the treasury. The inte-
banks not TO be called upon to remit
TO New York depository banks their pro rata
| Of United States deposits to be withdrawn until
after the ratification of the treaty by the Sen
ate. The payments will be made in the usual
manner by warrants drawn by the treasurer OF
the United States upon the assistant treasurer
at New York TO the order of the Panama Canal
Compeny and OF the Republic Panama These
| warrants, 1T is understood. will be for amounts
| deposits to be recalled that may then be on
| deposit with each of the depository banks in
ratification of the treaty. The fiscal agent of tho
Panama Canal Company and of the Republic
| Of Panama will deposit the warrants i'm the
banks referred to in such way that each bank
receives d MardanI fOr me exact amount of the
|
Each OF these banks will then comply with tbe
| order to return the specified amount of ITniteC
| States deposits by rendering the warrant 10 tbs
paid and the obligation of the banks will then bt
| discharged, without the transfer of any money
/ Payment Of the warrants for the rest of the
obligations under the treaty will be made in IN,
usual manner by the subtreasury. either over The
Much credit must be given to Secretary Shaw
for accepting. if not for devising this plan Tn.
least of its merits is that it enables the Panans
] bs
money market at present:
opportunity afforded by the Panama treaty TO be
gin preparations now for the crop movement Of
next fail by withdrawing a part of the Unite,
States deposits. while the banks are surfeiteC
with cash. in order that he may be able to in
they Will do the most good, just he did las
year
! = +
Wall-street Journal-A leading capitalist saws
The heavy borrowing by railroad corporation,
should cause no uneasiness in the security mar
kets; as a matter of fact the ability Of TN
2 railroads at this time to borrow to meet thei
urgent needs is TO me a reassuring factor.
have realized for some months that many y
our best railroads. whose credit is of the high
est, have needs of immense amounts Of none,
and 1 must confess the size and urgency Of tbei
| needs has somewhat appalled, me. Money condf
| tions now permit of our railroads raising neeSa
funds and the -ond has not been reached ,viti
and New Haven having raised si2o COO oOo Win
the last few weeks. The reassuring fact is mo
| all this money is needed by the strongest :
/ railroad corporations and is needed in most "a e
! to reimburse the companies for expenditures al
| ready made These needs demonstrate crown
| am afraid that until these corporation no.
are cared for there will be not much nonev n
| speculative purposes. This heavy borrov-ins- IA
| the railroads Is viewed with cCmplacencv nv ~
United States Steel people. for IL unouestfonaf al
| means a in the steel situation in So "a
that the railroads are again in a position 10 I'm
dertake and n'sh much needed Improvement
The turn in the steel situation might create a
improved feeling in the Industrial and dnancia
markets.
Under the provisions Of the second rnortrap
indenture whereby the redemption and cancel
alton OF the entire authorized issue OF $3.50 o,
per cent. bonds provided for, the Unite
States Steel Corporation must on April l IA
s1C10C00 to the sinking fund trustees II !
understood that the first payment has practical
beeu arranged and that the sinking fund .r,s
tees following instructions from the CORPORA ioT
have secured second mortgage per cent Sc.
bonds for the fund 70 nearly II not quite IN
: fuu extent Of the first payment.
There is talk of So. coo coo additional ST Pa,
stock 20 be issued the coming spring. ST Par
navs per cent and its earnings are begfnnir
/ 10 fall off. While December and January bav
I been generally bad months for Northern system,
! | II is beginning to suggest itself that pres
ent dividends Will not be continued on some Z
) the roads. st. Paul Pennsylvania and Atch
5 son are possible candidates for reduced div
dends.