Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-05-14
one-quarter of One Per Cent.

One-quarter or One Fer Cent.
The two corporations directly affected
represent, all told, probably one-quarter
Of 1 per cent of the valuation and the
property interests of the United States.
Standard Oil is capitalized at $1O0, O0O
600. its tangible assets may be $4,000.
about $6JO.O0O,0O0. The difference be-
tween the asset valuation and the SELL
ing price of the stock, namely, S4O0, 600, =
900, is OBSERVATION-DISCLOSURES is, the ma
chinery which has been built up through
a period of forty years for the handling
of the oil production of the United
States and a part of Europe. 1t is proba-
bly, the most perfect reorganization" in
the world, and every other important
industrial is modelled as nearly like it
as possible.
The tobacco trust has a stock and
bond capitalization of approximately
500, 600. counting I'm the stocks and
bonds of auxiliary concerns. It's tangible
assets may run as high as $15,OGO,0O0
Its securities have a market value Of
about $5OO.OOO,0OO. The difference be-
tween $150,OOO,OGO and $500, 100000 repre-
seEts good will. brands, labels and, above
all, Organization 1t has selling and
distributing machinery as complete and
monopolistic as Standard Oil, and in
some respects its methods for killing
competition are even more efficacious than
those of the big oil monopoly. Both of
these colossal industrials make more
money than they know what to do with.
Standard Oil has a stupendous cash
reserve fund. as large or larger than the
steel trust, but its methods of distribut-
ing profits are direct. The tobacco trust
makes as much money as Standard Oil,
but it gets the surplus revenues to it's
The bond issue of $125OOO, 900 is one of
the ways OF distribution. Those bonds
represent, In fact, little more than
script dividend on which 4 per cent is
paid annually. Every little while $10,-
100000 Of these bonds are redeemed,
but such redemptions seem not to re-
duce the visible supply of bonds.
Common at Big Premium.
One of the features of the tobacco
trust capitalization is the issue of $780,
OO0,0 per cent preferred stock. which
is selling at around 81. The $4,000. 600
in common stock sells around 45O. The
preferred stock has a preference over the
common as to division of the assets in
the event of a dissolution of the COM
pany. Should the Supreme Court COM
pei a reorganization it might occur that
the owners Of the preferred stock would
come In for a sensational melon cutting
A minority of both classes of stock is
quite widely distributed, but control of
each is held by a knitted few, comprising
the original founders and developers of
the business-the Duke family, the heirs
Of the late William C.. Whitney, Oliver
Payne, Thomas Fortune Ryan and his
sons, and possibly dozen others, most
of whom are entirely unknown to the
world at large. but each possessing many,
many millions. The tobacco trust group
has as much ready cash as any combina-
ton of millionaires in Wall street. The
business of the country has been hung
up for months over the issue of whether
two groups of multi-millionaires shall be
obliged to change their methods OF SELL
ing petroleum Oil and tobacco.
Wall street is resigned to this remark
able state Of affairs because 1t believes
great banking combinations are commit
ted to waiting policy. Indeed, 1t has
been made clear on many occasions that
it is the desire of the interests in control
of the money situation that the stock
market should hold off until 1t could be
definitely known what organized capital
would have to do in the way Of reorgan-
ization. Such being the case, people of
moderate means, and even of large
means. felt they would be taking an I'M
wise risk by going contrary to the Or
dained program. or late that part of the
investment and trading public residing
outside of Wall street has been recon-
ciied to the waiting play by reason of
the fact that Congress Is tinkering with
the tariff Throughout the country man
ufacturers and merchants are sailing
close to the shore on the tariff account,
producing and handling in quantities suf-
ficient only to supply day-by-day de-
mands. The outside public is also mind
full Of the importance of the Mexican
revolution, which is willfully ignored as
much as possible In Wall street
Market Does Talk Crops.
The one thing which finds place in
stock market discussion liz the crops. Re.
ports from the agricultural sections
north, south and west leave little to b.
desired. Upon the crop prospects are
| based the hopes Of substantial thinking
people. The present outlook as reported
L Hhro.,oks of1cfal and nrfvafa aourcos 4,