Omaha daily bee., 1905-08-06
DRUIDING's FINANCIAL REVIEW

For the information Of parties who may
be interested in speculative securities We
nave made ARRANGEMENTS with MT. h. q.
Druiding Of Chicago, an expert writer on
financial topics snd delneator Of stock OK
change probabilities, TO furnish weekly
review OF the salient features of current
financial topics CLEANED from the various
exchanges.
We desire however. on the part OF The
accuratenees OF any forecast Mr. Druiding
may make concerning future prospects OF
any investment or enterprise.
All special Inquiries about the present or
prospective value Of any particular security
should be addressed direct to MI. +, c.
Druiding, No 54 First National Bank
CHICAGO, Aug. 5.-FtnanciaI writer's who
have seen nj to deCry present conditions
existing in the stock and money markets
are not entirely justified i'm the positions
which they have taken. Statistics Of fail
uros last month, and so far this year, may
stable and sound Industrial condition. As
matter Of absolute fact, not only are the
number Of failures in July the smallest
of any month since August. 1903. bat they
are also the smallest Of any In July during
twelve years July failures really number
tN, as against III Of last year.
1t must be stated, however, that the
showing on liabilities has not been so
good-a total OF $l0,503O0O, as against 1885,,
600 year ago For the seven months Of
the present year the failures have mum
bered S,9i2, as against S6llS of last year
Liabilities for the same period have bcCn
m,lSS!OCO, as against S9l,4ioOO0 in the same
Generally speaking. the reported earnings
of transportation industries indicate un-
usual prosperity The most proUGn2ut was
that Of the PENNSYLVANIA railroad which
for June showed for the system q net de-
crease of $4,000 Against this net for the
was an Increase Of 81 ,5S6 600. Atchison re-
ported June net increase of Sl2SUI0, while
for the fiscal year gross increased 500 go
and net decreased S3,09lO0O. Illinois Central
for June made net decrease OF $4,000,
while for the fiscal year gross increased
S2677OOO and net increased 81, col. 600. At
crease Of $4,000 while for the fiscal Year
gross increased $167S.OOO and net increased
Steel is in a peculiar position. It is ger
orally known that those who were orig
| lnally Identified with the formation of the
sold most Of their common stock above "a
and again took it in at 10, are nov holding
large lines of the issue.
What they expect to do with II is a
difficult thing to understand Recently
there has been considerable talk about
restoring the stock to dividend basis.
Some prominent operators hold that the
common stock will not yield another divi-
dend until the company has accumulated
are OF the opinion that an over-plus Of
! over 800 900 600 will he sufficient to induce
! J. p. Morgan to put the stock back on a
a point OF view Of actual surplus profits
! the neglect of adequate outlay for depre-
citation during last years lien earnings
| appropriation of the sort in the last quar-
| ter.
| The upshot of this prudent policy is
! that the surplus over all charges and APP
| preparations during the quarter ending
| with June was but slightly larger than In
| the same period year ago, although the
! earnings grew enormously When com
pared with the second quarter Of 1903, the
| present surplus balance Is reduced S12 900
! 900, even though two years ago the divl-
dends on steel were being paid. In n
! great many ways the steel corporation is
| stronger than II was two years ago, but
| the surplus fund has fallen almost $23,-
| 100000 since that time, and Is recovering
| very slowly. The talk which comes from
| Pittsburg with relation to the formation
| Of a competitive company to be headed by
| Schwab is of a nature that will not per