Evening star., 1914-11-11
MERGENTHALER ABLE
TO MAINTAIN DIVIDEND
Local Stockholders Point to So.
000,0 Surplus as Strong Argu-
ment Against Cutting.
Railroad Earnings and Undlled Or
ders Of Steel Corporation Decrease.
Exports Exceed Imports.
BY I. A. FLEMING.

BY I. A. FLEMING.
Washington investors are large hold
ers of the stock Of the Mergenthaler
Linotype Company. estimates running
from 10000 to 10000 shares. Naturally
! these shareholders are very much In
terested in the rumor that the COM
pany is likely to cut Off the usual one
half Of 1 per cent dividend, known as
| extra" usually attending each divi-
dend distribution.
The Mergenthaler company has about
SO, 100000 cash surplus. In addition 1t
has about $2,OOO.OOO of manufactured
material on hand. based on the figures
in the last annual report, making a
practical surplus of $10.000.000.
The American business of the COM
pany was never better. the urgent de-
mand for news. incident to the great
est war in the worlds history. causing
increased use of linotype machines and
adding greatly to the profits of the cor
pcration.
Abroad business has been hurt by
the war. but with ten millions IN sur.
plus account in hand conditions cannot
possibly warrant any curtailment OF
the income of shareholders through
clipping from the usual Mergenthaler
distribution.
Last year the company earned 20 per
cent net and carried per cent to sur
plus.
The organization is without the ex-
cellent advice and services of the late
Ogden Mills, and it may be that the
dividend will be cut, but that there is
no reason therefor is self-evident, the
company being too. strong financially
to necessitate economies or cash con-
servation.
It is within the probabilities that the
hoI Of he CT in
unite in a round robin" of protests. in
advance of the consideration OF the
dividend question.
It's too big and too strong a corpora
tion, with but one kind of stock. TO
cut it's distribution, and if 1t is done
stockholders should make an investi-
cation of why and at the same time
Of the reported surplus.
Abolish the Sixty-Day Clause.
Savings banks in New York city
have given notice that they will not
enforce the sixty-day clause on saw
ings accounts. The time has more than
expired on all notices filed at the out
break OF the war. and these bankers
find that its enforcement at this time
is a barrier against fresh deposits and
an inducement to boarding.
Washington bankers did not take ad-
vantage of the clause at the advent OF
tue war, business mere SOlHB OIl DIS
usual, and, while there has been some
boarding among depositors. it has not
been an important movement.
Banks have ample means, moreover
they pick their borrowers. with the ex-
ception of the pools recently formed,
cotton and gold. eschew anything in
the nature of new enterprises. restrict
anything s0voring OF speculation and
have, therefore, ample resources at
their command. Sixty-day notices are
not necessary.
Cotton Exchange to Open.
The New York Cotton Exchange will
be the first trading body to reopen in
full degree following the closure after
July 80. The cotton exchange opens
by grace of f1fteen-hundred-
dollar pool formed in New York city
for the care of long cotton contracts
for December delivery. Then, again.
Europe hasn't billions of cotton to sell,
the cotton pool has tied up $100.0O0,000
cotton, and there Is no danger of
any one dumping when the exchange
opens. Liverpool opens tomorrow with
limited trading in futures. No stock
exchange opening is in sight. just oe-
cause of the fear of dumping" both
from abroad and at home. by holders of
securities who have to sell something
and but await the opportunity.
Exports Exceed Imports.
A gratifying feature Of the last few
DAYS has been the steady gain in ex-
ports over imports. Exports have been
gaining for some time. but imports
were also we'll maintained. largely In
preparations for the holiday trade and
in filling of orders against the possi-
bility of being able to enlarge stocks
later on. Monday of this week the ex-
norts from New York exceeded the i'm
norts nv s1.500,000, Saturday last by
"a o0O 600. Friday by 100000. the nrst
tbrae davs of last week saw Imports
in excess of exports. Imports eSceeo
exports for the fiscal year 10 oa.e
This is one reason tol nd od tho conse-
in revenues from laiiil ""
ouent war tax.
Decreased Earnings.
To date. twenty-six railroads (oper-
.+,ne in the United States only) have
reported weekly gross earnings 10 tne
wall Street Journal. for the 1ourtn
,,,eak of October, as follows:
Total. 26 roads: 1914. $15, i,SSs; oa isio'
s14s75.223; net decrease, $l,s2o'szo' oe-
crease, 1925 per cent ,xr-.-
eating S1O7,1O1, while twenty-five re-
6orted decreases aggregatins @i''oA'
O26. 1.
orders on the books of the United
states steel Corporation. untitled, oc-
toher 81, totaled 3,461,o97 tons. When
tho condition of the steel business Is
oonsidered the loss of 326,57O tons in
orders on top of 425,664 tons decrease
in in September. should not cause much OF
But there has been some improve.
IL n,onth while a revival of consider
able proportions would follow fav.
orable decision in the rate case. What
will follow an unfavorable decision re-
mains to be seen.