Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-04-15

Nothing Is constant but change, ana
every class of business and industry
undergoes constant evolution. The
farmer of fifty years ago would be
amazed by the wonderful agricultural
implements of to-day. If the old-time
spinner of cotton, whose mill wheels
were turned by New England river
beside his mill, could see the immense
cotton manufactures of to-day in Caro-
lima, remote from a stream, and yet
know that their power is transported
by wire from some waterfall In the far-
away mountains, he would be mysti-
fled And a great change has come
over the investment markets, too. In
Wall Street less is heard of a dull and
dropping ; market for s@pecnhiatiye @ han STOCKS nrs
ferred shares that attract the outright
buyer only. The statistically inclined
observer who notes the small daily
business on the exchange and wonders
how 1t can be translated into enough
commissions to support the financial
community reckons without what Is
now. the greatest part of the security
market
Plainly enough, people generally are
amount of savings that goes into Sc
curities is greater than ever before.
The hustling broker. who only few
years ago typified the financial center
has been to a great extent replaced by
the mberchant in securities. During the
first quarter of 1914 some s43O, 100000
of new security issues exclusive OF
imunicipals-bonds. stocks. and short
| term notes-were offered for sale This
is an an annual average of $1,70O,00O
vast total, though smaller than that
| of either 1913 or 1912. These are the
| output of larger corporations only. for
no record is obtainable of the millions
1sued by companies of purely local IN
terest that are constantly Hoated in
% ri nf tINa a
vast sum means new investme ent, for
much of 1T represents retinancing or
maturing bonds or notes. This item is
estimated at about a quarter of the
year 1t is through investment in these
new securities that the railroads, the
| lighting and power systems, and the
industrial plants Of the country m are IRE
| of all business activity.
I The merchant in securities or the in
vestment banker, as he is most fire.
quently known, is the medium through
whom new issues of bonds and stocks
reach the ultimate buyer the investor,
who corresponds to the consumer of
merchandise Sometimes these houses
maintain the engineering and account
ing organizations through which ex-
aminations of properties are made, and
sometimes they depend on independent
sources. One of their most important
functions, however, is expert analysis
of a company's condition and prospects
\
ties. for the merchant buys them first
wholesale, for his own account, and
subsequently, resells them among his
customers, The investor has the pro,
lection of knowing that the investment
banker has been satisfied with the
soundness of security before placing
1t on sale, and has backed his views
with his own capital before inviting
his customers to purchase. This is the
class of business that has been good ir
Wall Street-that is fairly good now
land justihes the belief that the coun.
try is entering a new constructive era
Some merchants in securities are
more dependable than others. just as il
and ink have been expended in trying
to guide the investor Alright in his Sc
lection, and a false impression of &
great industry is too often created by
emphasis of the bad to the exclusion
of the good. | nor any one else canno
give rule that will always be safe
but conservatism of statement is prob
ably the best general indication of con
sistent conscientious effort in the Sc
lection OF securities offered.
Another set of statistics for the frs
quarter of the year relates to new ol
initial dividend payments, increases
and reductions in rates. Eight public
: utility stocks received their first divi
, dend and twelve received an increased
rate. The total amount of capital thu
made more productive for the investo
5 was over $110,OO0,O00. Meanwhile tiv,
: railroads either reduced dividends o
, suspended payment The period ha
been one of distinctly unsatisfactor,
railroad and very mixed industria
conditions, and the steady progress o
public utility companies illustrates VIII,
= their securities are favorltes with in
, vestors.
Public utility companies, in the cur
rent acceptation of the term, are thos
} operating electric light and power gas
3 telephone, telegraph, water works, an,
S traction properties In most of thes
I industries, but especially lighting an
5 power, the volume OF business does no
nuctuate with varying trade conditions
but, instead, tends steadily toward in
? crease as consumers become more nu
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