Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-05
"....:'.-:


gin six or eight years ago. The year
mas not been without its danger signals.
but these apparently have been ignored
Should anything occur in the near fu-
ture TO shake the foundations of busi-
ness credit. the injury to the country
would be in inverse ratio to the over
confidence displayed at the present
time.
The trusts have put out a large
amount of capital during the year.
This development has its favorable as
pect. II means that the corporations
are appealing to their stockholders for
FUNDS for Legitimate expansion of OPP
erations and are not depending upon
the precarious supply of Wall street,
with its high rates and it's wide fiuc-
tuations. The experience of the Vir-
ginia-Carollna Chemical company a
few years ago in this direction has APP
parently not been without its lesson.
one of the most recent Incidents
along lines of capital increase Is that
OF the American Wooden company,
which added Sl00OO,000 to its preferred
stock In order to obtain a more ade-
quate working capital. This company
found that promises made TO holders
of common stock at the time of organ
i2ation could not be kept If the COM
pany was 10 maintain its position in
the industry. The enormous growth of
the business has made necessary the
extension of old mills, the building of
new mills and large additions to work
ing capital from time to time, so that
the common shareholders have been
obliged to do without their return in
order that every dollar not needed for
the cumulative preferred dividend
might be diverted TO the growing bust
ness needs of the company.
CAPITAL OBLIGATIONS IN
Others OF the big corporations
have also taken steps TO in
crease capital obligations The
General Electric company raised
its stock from SG0.000,0 900 to $50, O00,-
600. The Westinghouse company sold
SIS, 900 OF convertible bonds 90
provide for extensions and working
capital The Tennessee Coal and Iron
company Issued $3,S00.O00 of new
stock in connection with improve
ments and extensions. The United
States Smelling and Refining company
added to It's capital The Railway
Steel Springs company issued some
$4,000, 600 OF bonds in connection with
It's purchase OF the Latrobe Steel COM
pany. The Bell Telephone company
invited it, stockholders to subscribe
to s9.0O0.000 OF new shares The
American Graphophone company vot-
ed TO issue about $4,000. 900 of new
stock Swift y CO.. Increased their
stock from $4,000, 900 to $4,000. 900.
The Union Switch and Signal company
increased IFS capital by one-eighth
The Unitc1 Gas Improvement COM
pRny issued So, 900, 900 of new shares
The Bethlehem Steel company Issued
S. 600 900 I'm bonds. The Colorado
Fuel and Iron company Issued So
000.0 IN stock and $1,000. 900 in
bonds for improvements, and 30 on
through the list,
one of the most noteworthy addl-
lions was the issue OF $4,000 600 Of
stock TO shareholders of the Pullman
company In order TO aid in wlplng
out the big surplus OF that monopoly
Meanwhile. rs Indicated above. the
incorporation Of new companies goes
steadily forward. many OF them in.
tending 90 manufacture the kind III
products I'm which the trusts are In
terested Il has been calculated that
tho total authorized capitalization ~
81 900, 900 Incorporation chartered In
the eastern states during the year Will
aggregate more than $4,000, 900. 900,
with s1,694,tS7,2If during
the previous year, Many OF these are
mining concerns. Some of them rem
resent mergers of previously existing
ana In this direction the |
trust movement has not been entirely !
dormant The North American Ce- |
ment company was formed NTH a |
capital OF $4,000, 600 20 build Gee
nent plants IN various parts " tho |
country. MS stock being owned by SIX |
which now control about |
6T per cent ~ the Portland cement |
production III the country. A merger |
of wireless telegraph companies was |
the object or the incorporation OF tho