Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-01

It has been the general opinion that
the federal reserve act was based very
largely on the Aldrich money bill. with
the substitution of the twelve regional
banks for the central bank system. and
with various other changes and amend
ments, the result of the combined ef-
forts of members of the banking COM
mttee of both the House and the Sem
tae; that Chairman Glass of the House
committee and Senator Owens of the
Senate committee were personal sfac-
tors of great Importance in the weld
ing process Senator Shaffroth has
been given credit as the most able eX-
ponent of the measure and one of it's
strongest supporters.
1t seems, however, on the statement
made by Representative Glass himself
that the greatest amount of credit for
the new monetary system, which will
be inaugurated two weeks hence, is due
to Woodrow Wilson, President or the
United States.
That the President was vitality inter-
ested in the measure was generally
known in that he gave 1t his unquali-
fled approval and was insistent on Its
action.
In his speech before the American
Bankers Association. made at Rich
mond during the late convention MT;
Glass said: But. gentlemen. In all
seriousness, / want to say to you TINS
evening that the man who deserves su-
preme credit for the federal reserve act
is the President of the United States,
Woodrow Wilson"
1t is just possible that Mr.. Glass
wished to convey the impression that
the enactment of the measure in Con-
gress would have been impossible but
for the insistence and determination
on the part of the President that it
should be passed before the adjourn
ment of Congress.
What It Means.
The cut in the dividend of the steel
corporation. common stock. from "a
per cent, the usual rate, to half of l
per cent, means that the holders of
5O0,S0O shares of the stock will receive
checks for s250.400 instead of s625.sOO,
a net loss for the quarter alone OF
$375,400. If, as is generally expected.
the dividend is entirely passed with
the next quarter, it will be serious
situation for these shareholders.
Are Simply Partners.
And vet shareholders are simply
partners in corporate business enter
prise. They may justly expect to share
in the burdens as they may also expect
to participate in the profits.
The relationship of the bondholders
is different. They are the creditors OF
corporation, in no way responsible
for the management, having no voice
in it. no vote in the choice of ITS ON.
Gals. They stand as owners of the OBJ
legations of the corporation, and. after
other creditors, they have all prefer
ence.
Preferred shareholders usually have
right to better treatment than com
mon.
In most cases the preferred stock rep
resents the actual money contributed
by shareholders, and the rights of the
preferred are to a fixed dividend, after
which common stock may take what's
left, at the option of the directors.
So that, today, many shareholders IN
corporate enterprises are suffering, by
reason of reduced and passed dividends,
because the business is not satisfactory
and they must bear their share of the
burden.
The Bigness of the Steel Corporation.
The United States Steel Corporation
is probably the greatest business organi-
cation in the United States. Standard
Oil may be a close competitor. All other
steel and iron companies, however inn
portant in the aggregate, are small COM
paratively.
From 1902 to the third quarter Of 1914
its quarterly net earnings have ranged
from $13,4i5,232 to S45.503, 103, the max
imum With six exceptions no quarterly
net earnings have fallen below S20.0Oo,Oo0,
and in twenty-SiX quarters they nave
topped s40,000,000.
The quarterly net earnings for the cor
poration are given herewith in millions
of dollars, hundreds being omitted.
The total net earnings. by quarters.
from 1902 to September 80. 1914. follow: