The Washington herald., 1912-02-04
A.G. PLANT s. CO.,
BANKERS AND rx1s O.
BROKERS, 1919 u OI.
The Situaon-Stee Earnings Concerns Feel the Pres
sue-Courage Returning-The Resuscitation of American
Tobacco Money Trusts Everywhere and Stocks.

profit. the little fellows are falling out
Of the procession in great numbers under
the strain OF continued Improbable busi-
ness.
Courage ReturniBE.
The one thing which changes our whole
business situation is the fact that con-
fidenee Is growing. A year ago we were
under dread OF dissolution for all large
corporations. and six months ago we
were sure Of it. And II was all brought
about not by the Sherman law itself.
but by the way the Sherman law was
worked, and waved as a red flag by
third-rate politicians.
The fear has been allayed and business
Will go on now and take care OF itself
The experience OF the sundered Tobacco
trust. which has passed through the
fire, has further furnished evidence OF
how the wheels will keep turning after
the law has been complied with
The Reconciliation of American To-
baeco.
The interest taken in the securities OF
the subdivided companies OF the Ameri-
can Tobacco Company is evidenced by
the large transactions daily on the stock
exchange, both in the bonds and in the
preferred and common. stocks. 1t Is fig
Ered that the American Tobacco. as di-
yided, sells far higher than American
Tobacco. as a trust, ever sold The high
price OF the subdivided companies aggre-
gated reaches 6J0-1OO points higher than
the record price for old American Tobac-
CO Company common. The fact IS that
this is the ore corporation which has
Passed through the fight against the
Sherman law for its existence and that
its securities are now selling "ex-Su-
preme Court decisions and are dis
counting a long way ahead the prosper
ity Of the country. when this drastic
law shall have found its place and will
no longer disturb current operations
This is the reason that astute investors
are picking up the bonds Of the Liggett
& Myers and p. Lorillard companies,
which are still selling at prices showing
attractive income. For bonds so well
secured 5l-2 per cent is an attractive
income.
This company has an issue OF s10sOo,O06
per cent bonds and S10.6lO.OOO 5 per cent
bonds. The mortgage provisions are the
same as the Liggett & Myers Company
The issue OF about S2l.5OO0OO is secured
by the assets and property OF O00.O0o
and further by the trademarks, &c, a
little over s19.Oo0.eOO.
Money Trusts Everywhere.
The investigation Of the money trust
- dBAIdAuE poAAllNdA CAAGlcs- II - uOADAlbA
II 1t agitates any other circles 10 any ex-
tent The investigators should extend the
inquiry all over the country.
IL must be borne in mind that there Is
a money power in every considerable city
or town; and nearly every country ham
let has its Deacon Josiah Peak. who holds
nearly all the mortgages in town. and in
proportion is as much of tyrant as the
dig bogey Of Wall street
Stocks and Bonds.
The bond market this week has been
disappointing. activity taking place al
most altogether in the tobacco. traction.
and speculative and short term issues
In these latter a large business Is sti1
being done. showing the hesitation OF
large capital to engage in anything but
temporary investment.
The movement of averages in twenty
representative rails and twelve represent
ative industrials shows an advance from
the low of last September to the high
point since OF 9iz points. In the decline
up to February the rails had lost 4
points and industrials only 2 These losses
are a part OF the February decline
Whether the decline Is completed or not
is pure speculation. As the rails have
had the most movement downward. il
would seem as though these were the
better purchase
\. G. PLANT & CO.,
1H5 G street, Washington. d. c.