Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-20
FINANCIAL
COMMENT

e. H; Harriman's vast legacy was
TouIldea up with little block of worth
less mining stock. 1t is proverbial that
no tinancier Is so shrewd but that he will
at some time in his life be the victim of
a mining promoter
Attorney General McReynolds says he
mas not even considered reopening the
tobacco cases and has had no time to
LOOK INTO the matter Until he does or
docs not ne can not tell what his future
course IN the matter viii be.
=, Even the Connecticut Yankee believed
New Haven was as good as a government
oohd. \ reduction in the dividend will be
a test Of faith
There is scarcely a country of any i'm
portance for which the London house of
hOIhschldS has not in its time raised
loan or carried out some conversion or
othef large financial operation. Up to
1904 1t was computed that the firm had
either contracted for or participated in
loans TO the huge total of 1906, 0OO, 900,
ana ms Inquire has since been consider
ably added TO.
Two items in the American Sugar Re
fnery Company's annual report are of pc
cullar interest One of these is in the in
come account Under the caption "ad-
lustments'' ii showed $lS16, 600 to have
been credited to the years income, as
representing an amount of former apprO-
prlauons for improvement of plants which
were offset in the amounts set against
depreciation on plant and equipment dur
ing the year. In neither 1911 nor 1910
was there such a credit possible The
other item Of interest occurred in the
balance sheet. 1t showed that the COM
pany on December 81 had among its as
sets SZS. 4OH,OOO cash, as compared with
S2l,t62UOO a year before and $l9,319, 900
two years before.
The underwriting syndicate formed to
buy from Union Pacific 126,65O,0O Of
southern Pacific stock having expired by
limitation, Kuhn, Loeb & Co. the syndi-
cate managers, mailed checks to the mem
bers for sums equivalent to Is of / per
cent OF the par value of the stock sub
scribed for. This represented their pro-
portion OF the guaranty forfeited by Union
Pacific because of the failure of the dis
solution plan to receive the approval of
the California railroad commission.
1t is expected in wen-informed circles
that the new scheme to be worked out
by, the directors of the Hartman lines
Will not provide for the sale of Central
Pacific to the Union, but that it will be
retained by the Southern Pacific. It is
stated that the plan will also provide for
an arrangement which will not come with
in the jurisdiction of the California state
railroad commission.
The present estimates for capital de
mands this wear by the RaIkan states are
$3.50, 900 900 Austria wants Sl5O0 OO, OO5
France 100000 600 and Russia 500 600,
600. Germany has already made a loan
Of $125, 900 600 and is asking twice as
much more for armament. South Afri-
can countries would like to finance about
$l00,0O0,000 Of new loans. Mexico needs
at once from 500 900, 600 to S125 OO0. 600
Here is a total Of approximately $1,000,
100000 in direct government loans in sight
to say nothing Of colonial loans loans to
private enterprises and corporations
abroad.
Since last autumn there has been dis
PEELED one fallacy in which Wall Street
strangely persisted, namely, that railroad
companies could wait until a given date
to be sure of a big freight movement, and
then go into the equipment market and
buy for immediate delivery whatever
amount of cars and locomotives they de
sired. Previous to the autumns large
buying by the railroads the idea was en-
tertained that the placing of an equip
ment order was followed at once by ap-
pearance of a supply of fresh engines and
cars on the tracks of the purchasing
railroad. II is now pretty thoroughly
understood that equipment manufacturers
do not carry cars and locomotives on
shelves, like toys in department store,
ready to be lifted down by the salesman
and handed over to a purchaser whenever
a purchaser appears,