Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-10-16
ON DOWNWARD TRAIL
hountiful Crops May serve 60 Cue
Cost Of LivinE-Reasons Ad-
vRnCed for Belief.

BY PRESTON c. ADAMS
NEW YORK, oct l5-lSpecial to The
heel-ls nature working N cure for tbs
nish price syilg Indications are not lacking
Mhleh would warrant an affirmative an-
sNer to that question Many OF the stapies.
P"lucularly breadstuffs, have by reason of
bounutul harvests struck the downVard
trail and Il is altugether likely ofhsrs MI
.SloW. For example, we are harvesting
tsn ne sreatest corn crop on record and prices
nave struck a level which makes the
| tecding often TO live stock the most nrosltl
So.e way TO market it. In time this must
Sye US erect on the price Of meat
. NO. red wheat Is over s cents lower than
IL was month ago; raw sugar is nea ri,. ~
C Cent lower and crude rubber Is of "a
Other declines Include s,r,,s ,a,.,,,
Ltour, which Is cents lower than the end
~ tasl month; winter straight flour. which
20 TO- /" Vents lover mess pork, 81 lower: but
tcr cent lower refined sugar % points
.oMer' Pig iron p cents lower, and Me tin
Nnlch IL over / cent lower 80 80"
nrinPSO Isnt exceptions 20 the recession Of
prices Is In cotton and coffee and I'm botb
sse,,,s s,aples the reason Is obvious. II
SEEMS certain that there Is To be another
cHJton Nop OF cotton In the high price In
crops "''' 10 u"e 20 short
., Un !, me whole, however It seems there is
Of U,S5rpi, 'ona oiiltE that wages and the cost
~ n'lhs soon viii be close together
Papers filed In the eastern states f,r No..
oys,N ' tsi, WIN a capital OF $4,000 or
SssTt, including Increases in capital during
al ,S(tt'noer' represented a total OF oniv
Fo''INNpO This is the smallest ar,o,,,,t 80
CIV previous month since March "a van
1sssor WReh II was $50 $4,000. In August this
IN september, 1909 the charters fiioS y ' i
c corNeu 5o'sZ5,ON The grand total Of ait
a manitny ,la.IGorPorsted last month, with
states than those Of the east. reacbsd SStu If
S9SsS 7Oc az against $s452O,5OO in August and
III ii 'yVoov IN september last year
hat
r I,"ie uuilnE the last month is due I'm n
nwirS. ~, 20 the fact that the increased in
confined TO the issues of ala h p1nus was
a adr5 ponds or stocks and has not vet eS-
lions Ia IN uVIuuS or stocks OF new corpora
ulaly going slow in the matter of brinTinl
as t hheW Jui Poi ate securities until such tins
OF he y s,ial pc aoIe to enlist the attention
a., - rom The bluest to the cheerIest sDot in
has DVUuiht'y Us the transition wall Street
hos hlaue in quick order In early Senfen1.
per everything was going wrong. todav
s ave ~ ming Is turning out splendidly Crops
aIH 70 net the farmers 50 900 COO OCO ana he
~ II V S1 an unprecedented amount OF traf-
NJ money Is to throw no obstacles in tba
%%S1S. % speculation. PoliuCs-weu politic2
t tl mater much anyway; they have been
Iououng finance more or less from, inns
inlihenorlal, hence a philosophlc attitude
~ now taken The supreme court Syiii a.
eide the sherman Antitrust cases win ne.
udl sound sense. Trade has undertro,,s
torv ~ a ioa mJriIhS slowing down prepare
81.
VIC American Viguc A month ago ths
oond market was dead; today IL rs Fun ~
IRE. The railroads threatened ali sorts ~
ulS.asteIs il permission to raise rates were
not granted, but now 1t is explained that
very moderate concessions will meet cir
CSiI us I9nces. The public after two years
OF indifference, are showing Interest IN se-
curlues, beginning with bonds, as is emil
nenuy proper. Why therefore should not
wan Street buy. sell and be merry
New security issues by corporations In
9,srters os S Seaa during the first three
against $1,215, sos $50 last year, the incTe1ss'
therefore, having been $27 ,OS1 $50 or the
grand total the railroads contributed s76S
1909, or $l04, 4O6, $50 more than in the first
nine months of 1909 whereas the indns
trial "a and miscellaneous corporations Issued
.S2aB00 less than last years total OF
Sales Of bonds during the last month are
estimated to have reached SiO0 OO0 O6O anS
the demand, instead of being satjsf ed
gives every promise of broadening. Ths
movement to date has been mainly from
i me large international banking firms to
investment houses, and from the latter 10
institutions, where latterly more inouirv
from individuals, the highest grades being
Inof favored. II the Improvement be
maintained, new flotations will be at
tempted on behalf of the railroads several
OF which are in need Of funds
a KIND OF discussion has arisen az To the
size OF the bankers profits. The assertion
has been made that their profits are
actually much smaller than the profits ex-
pected by manufacturers or rnerchants.
that they are only 2 or per cent on q
BOND undertaking, whereas the merchant
OF MANUFACTURER expects to make or 10
on a 100000 underwriting seems ve,v S
moderate, but that is the profit on the
gross amount OF capital involved; the
prout on the net capital empIoVed nv tbe
underwriting banker may look very dif-
terent TO finance $10OO0OO0 at the current
LadIe OF interest am turnsh only 81, 100000
nlHiseH' Ills profit y. that case is TO be
reckoned differently. on $40 900 600 n nroSit
or per cent is 100000 but a profit ~
$4,000 on net capital Of 81 900 600 directlv
employed by the banker is 20 por cent
However the banker has paid the prevaii
ing rate of interest on S. 900 600 which is
borrowed. That might be per cent for
net profit on the net amount OF capital he
hlmseit provides is $4,000 or IL per cent
ana II this transaction be completed in
ne space OF three months the BANKERS
own capital is earning at a rate OF al ner
cent a year. II does not average 10 earn
1hythlng IKE so much as A per cent; be-
cause there are mistakes and losses ana
delerments with the banker as with every
one else, but II the banker's profits y,ora
ohiy per cent, he would cease TO conduct
z banking business he would better az
and retire COT
The question has been asked. "vyb,
should Great Northern Pacific be entitled
according to the decree OF Judge Ofio "a
earn z per cent on the valuation OF its
pany was declared entitled TO only ner
cent AT first glance there would appear
20 De peculiar discrepancy. The explana-
ton, however, is extremely simple THE
legal rate Of interest in Minnesota where
the railroad ruling was given Is per cent
whereas IN New York state IT is per cent.
Thus the two rulings do not conflict Ia the
slightest. As high as 8 per cent Is fixed
on certain states, including Alabama Colo
RADIO, Florida, Montana, Utah wyoming.
while the legal rate is Z per cent in cali
forna, Georgia, Idaho, Nebraska Ma
yada, North Dakota South Carolina ana
South Dakota.
TuFpentine MareLt
SAVANNAH, Ca, Oct 15-OILS-Tur-
pentine, firm at 74h674ikc Rosin, firm:
type F, SG.l5Q6.2O G, So 2Od&25.
WoOI Martat