New-York tribune., 1908-06-14
The Financial World.

tion to politics. On many days during IA. -
week Stock Exchange trading was practtc,1s- =
a standstill.
We have some current Developments a,
sequence. Union Pacifc's bond issue IN a,,...u.
by elements Of mystery. As matter ~ -.
there is scepticisrn as to announcements tha, ~.
offering has been much over subscribed
Erie affairs assume new conspic,,on,,..
Though only whispered suggestions are b..,s
there undoubtedly develops feeling tha. -.
property has a drastic reorganization ab.as
Among the companys recent records ar. :.
least two series Of dismal failures Physscai.
the property is better than ordinarily auoraIsaJ
But mortgage obligations are over ourdeusoos
Bond holders may be asked 70 mako conc
sions.
Far and away the most important heptul ss
ments in sight emanate from the cron s,.,.-
tion-prospects phenoInenaIy brighton. .u,.
rent estimate having il that this years farm n-c
ucts will probably run away up to the stspAn.
dous total of an eight billion dollar vaIue-tb,.
forecast indeed. being the official calculation a.
the statisticians of our national Department. A.
Agriculture.
Apropos OF this inspiriting agricultural ,,r..
cast-providing figures OF national profit u.v.,
before approached-there Is more than ordirar,
interest attaching 70 the decision OF the Nav
York Stock Exchange to place the securities os
the International Harvester Company popu-
larly hailed as the Harvester Tr1sD upon ,hs
regular quotation lists-this official Stock Ex-
change action attended by a report Of the cor.
poration to it's stockholders. wherein appear *.
hibits that mount into the realm OF what "a
mildly TO be described as marvellous.
While in varied other ways exceptional here
is a great property whose fnanciers have hither.,
refused absolutely to let its securities come into
Wall Street-directors and owners Of the calib,s
of George F Baker. Norman B Ream. Ebert q.
Gary. Charles Deering. Cyrus H. Mccormick and
George w Perkins content TO hold their invest
uents undivided throughout years Of uphInd-
ing This is so much in contrast with what
ordinarily is the program Of corporation organ
izers as to constitute policy sufficient OF Itself
to challenge the attention, the respect and con-
hdence of the investment world Such proceed
I1re NAV without fippancy be described ce--
tainI1r as a novelty. Instead OF urgent soiicita-
tion TO come into investment here Is property
wherein the investor has actually been officially
held back, pending IHe "OIhIIS out VI 51sd1l1'
development plans
Here are figures that are stupendous-con-
mandiny added value in view OF the fact that
thev represent the earnings and expansion OF
that NAV be fairly regarded the greatest
and most typical of all enterprises that ngurs
comparatively in the unprecedented strldes tnat
4
cent wears been making The FARMER prosperous
is naturally the alert buyer Of agricultural ma
chinery-and among manufacturers OF asTicult-
uraI machinery the international Harvester
COMPANY is. of course far and away the leader.
Last wear the company earned over eleven and
a quarter millions OF dollars II paid out
81 100000 G per cent? IN dlVldends upon Ns
preferred stock, and carried forward ALMOST an
other 81 100000 as undivided profits for add
tion to a surplus that now mounts beyond
S12 900 0O0-wfliCh approxlmates 5O per cent OF
,~y4~ 4-T-o1 1rV-7O 7Orr =~NN
Of the company is selling IN tne open market.
Net profits in 1898 were S3,6i0Oo. reaching
somewhat higher in 1904. jumped another mill
ion and a half in 1905 and passed IN 1906
e. NEUTRALITY-SUSPICIOUS. net profits which last year
rose beyond SS.O00.0Ob. In comprehension or
these exhibits five years undivided accumuIaied
profits surprising S12Oo0OpD there IS sup
Elemental showing even more tremendous SUI
more effective in appeal 70 conservative invest
rnent sentiment-the disclosure OF Hnancal
policy broader than elsewhere at any time mas
Notwithstanding the arbitrary Appropriation
of percentages that run into millions upon mill
ions of dollars for reserves covering plant depre-
ciation maintenance. and long LIST OF proVi-
sfonal and contingent elements A million collars
a wear is set aside TO cover depreciation OF plant
property, and last year virtually SZVVcU Wds
so charged against operating expenses wins
over S300.O0o additional was charged on Lol
minor improvement and equipment auultIoHs'
And still further supplementing such conselV.
atism the corporations managers at tne END & o.
last year, having charged of all douotIui olls
insurance. a special reserve fund aggreedLne
81. 100000 as a contingency against even r.
motely possible losses in collections Inc COL-
sequence of policy like this IS reddIy dPpA9
cfated when Il is understood that the InteFld-
tionaI Harvester Company has the fnconpala9,e
trade advantage of being able during us sen
ing season TO extend credits running lhto V@-'
of millions Of dollars.
In the current appraisal of the net value ol
the real estate and plant property OF the inter
national Harvester Company, over So-S -
attested-after over 500 s0000o is charged on
in reduction Of property cost-an aro"raiy
transfer to opera ting and surplus accounts. Anu
some scant idea OF the volume OF property own
ership can be had from list OF operatins p'Ai'1.
nomfnany appraised at over $1S.otoeVV ioea''-
in dozen states here. supplementing nlil-s So =
Canada, Sweden and elsewhere abroad Ii I'''
% 500 EMPLOYEES were on the company's pay
rolls and last year the list rose 70 -c.iV -
1908 the wages account fell a little short o.
SIT 100000 and last year it closely approN.na'
SD OD00O0 In 1905 sales were S5o,VWe'" a"
last year SIS O00 GOO-while Administrative az
general expenses (the cost Of seilng) increase
from 1903 until 1907 less than $1,000 IN 1,s sT,s
particular iteuiZatIOn is what may De IdlliS @ ssa
sidered of exceptional SignifCanCe-alteslIS.t;
success and the consequence OF the ~ $50
policy which George w Perkins ana .-1-iss LS
ciates have incorporated into TINS I.,ivs
lust as they made II important ana p5 lSor
i'm their conduct of the United states Stee1 yth
mer1torlous ehiT TylIOSI,s-rhs
profit participation opportunities. ResuItS-t a.
official records-testify 10 the business sense
spring this policy
One inspiriting feature of the eNHi''' -,,c.
annual repOrt-and OF 's+;on--
larger than refers to this one Co- ,atss
appears in the expansion that is shown - .,asn S
- fora;,,r, Countries Something over nine'eeA
million sales abroad in 1870 eoD'S
thirty-two million sold last year .,ibit
In every sense from every angle. thls @ ,,-
through stock Exchange figures. induces - a.,