The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-09-14
SHELTER TRUST
AND OIL TRUST
Believed Oil Crowd Bought and
Sold Stock, but That
Was About All.
GUGGENHEIMS IN CONTROL
FIGURES ON STOCK FLUCTUA.
TIONS AND EARNINGS.

Again the rumormonger and press agent
of Wall street have gone wrong in their
predictions, for we learn officially that
at the recent annual meeting Of the Amer
lean Smelling e. Refining company no
change was made I'm the Guggenhelm man
agement says the Mining World of Sat-
urday. Wall street people. however. are
commenting on the announcement that the
list of stockholders contains no record OF
Standard Oil buying. The GuEgenheims
are understood to be registered in their
own names as holders of only $40 shares
OF common stock. Mr.. Daniel Guggen-
helm. the president Is not mentioned on
the list of shareholders. except as the
holders of one share of preferred and as
"A trustee for several hundred shares. The
largest individual holder is Theodore Free
MAJ. with 20900 shares. which il Is gem
orally believed represents the inside hold
ings-
That the speculative public should be
surprised at the 'modesty" of the Stand
.ard OIL coterie. which was reported to
have sought control of the "smelter trust
and to have purchased thousands of its
shares ut low prices months ago, is anus
ing to say the least Readers OF the
Mining World may remember the editor
ial In its columns in February last in
which reasonable doubt was expressed as
- the Wall street story that Morgan and
Rockefeller were grating the Guggen-
helm family tree with a view OF ouSting
the seven sons and debating the policy OF
the SO-calied |Smelter trust
Standard Oil In the Shade.
Standard Oil interests we believe today
ns we did months ago. are not over-anX-
lous TO figure prominently on the board
Of directors of any combination other than
their own so long as the federal govern
ment is active in trying to enforce the
Interstate commerce law. Another reason
one which the better informed readers
will agree upon-is that the Standard Oil
coterie were tempted to buy SHELTERS
stock when IL tumbled in price during the
financial stringency last fall The bellet
then prevailing being that with the return
OF normal business relations the stock
market would rally sufficiently TO reim-
burse spectators who had previously suf-
fered heavy losses.
At what price acquaintances of Stand
ard oil unloaded SHELTERS stock is hard
TO say. An idea of their profit may be
had. however, when II Is learned that me me
common shares. which broke from Sl74
in 1906 10 $3.50 in November. 1907. were
quoted n S99 on Sept. l. 1908; while the
preferred. which slumped from $50 10 SSS
rose to $l0925. The difference in the mar
ket value OF the common shares on Sept.
! as compared with November. 1917.
amounts to $3.50 per share or $40, 100 600
on the total issue of 10000: while the diff
ference in preferred is S2625 per share or
SIS. l25,0G0 on the total issue. In other
words. since last November the Shelters
total capital stock has appreciated $S2,-
$4,000. The preferred stock yields Z per
cent per 500 share per annum. and the
common is now paying per cent per 500
share. The total dividends from organiza-
ton in 1899 to October, 1908. amount 10
si4, 5Sl. 553. in addition to which substan-
tial sum has been distributed among the
employees as their share of the profits.
Smelter Trust Earnings.
In the last fiscal year 0or April 30.
1899, the ''smelter trusts" gross earnings
fell TO s9.403. 2s2, which is $SS46.l76 or about
% per cent less than the previous twelve
o No. TO-
pairs and betterments, taxes and general
expenses. there remains net earnings for
the fiscal year 1908 of S,623.2S1, which
compare with $l1,509. $50 in 1907 and are the
smallest earnings reported since 1903 New
ertheless 81 900 was paid out in divi-
dends and $500 096 added to the employees
profit sharing fund during the past year
The surprisingly low surplus OF Su.l91 FOR
the year compares with s2.91i.253 for the
previous twelve months and IS the small
est since the ''smelter trust was born
The probability is that had the company
made the usual appropriations for new
construction and improvements In 1913
there would have been no surplus for the
year.
the smaller earnings and surplus for the
past year TO the decline in the value OF
Iced. silver and copper. together with no
proportionate decrease in expenses. Some
weeks ago the Mining World commented
editorially on the reduction In office and
other expenses that were arranged for By
President Guggenneln HOW ihucn mon
ey will be saved by not re-engaging nigh
priced engineering talent IS not known
but we have reason 10 believe 1t will be
large.
rnfavorable as have been the past
,ear's earnings. II is noteworthy to men
ton that the "smelter trust had total
surplus of Sl3, 40S. 2l9 on April 80. This sum
is equivalent TO over IL per cent on the
total share capital.
Though the pecuniary position OF the
American Smelling & Refining company
has not been very satisfactory during the
mast fiscal year. II is nevertheless certain
mat the continued Improvement in the
metal market will result in larger earn
ings in future. What the managerial pol
lev OF the ''smelter trust will be year
~ two hence will depend largely on the
Initiative of the Guggenheims. Wall street
stories TO the contrary Notwithstanding
Draughtsmen and Blue Printers. Os-
lesby & Oglesby. Atlas block. Bell 1880.