Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-28
TRINITY Of TROUBLES
IN SOUTHERN STATES
Cotton in Far South, Apples and Cat
tie in the Nearby
States.
Federal Reserve Bank Matters of In.
terest-Steel Dividend Cut.
Financial Notes.

terest-Steel Dividend Cut.
Financial Notes.
BY I. A. FLEMING.
Southern bankers have more than
their share of troubles these days. en-
tirely too much. but for the activities
of the government their northern CO.
in the field of finance. who,
though finding calls on their own re-
have still the courage and the
ability to extend the helping hand.
Not only cotton. but apples and cat
tie have exhausted the available funds
in the south, and have drawn heavily
on resources Of correspondents OF
Of southern bankers in assistance.
The buy a-barrel-of-apples" move
ment has not met with the response
that the bale -of-cotton" did; no ma
tional assistance was offered the apple
raisers, and they have had to take
their losses and help themselves as
best they could.
Usually when the frost is on the
pumpkin or just before, the whole
sale apple buyer is found ready and
waiting at the orchard to make a bid
for the crop of each grower. as 1t
ply, sells as the market demands
throughout the fall, winter and early
spring, making use of cold-storage ia
cllltles to preserve the fruit.
This year the apple buyer was con-
spicuous ny his absence. He could not
make his financial arrangements as
during previous years. The condition
OF the money market, the conservatism
or the banker, forced cessation of
his activities, and the apple growers.
bereft of their usual market, were in
a real Quandary, some helpless.
They were forced to pick their own
crop, to sell it barrel by barrel or
consign to commission men and accept
the best price obtainable. Where pos
sible great apple ranch owners made
arrangements with their banks to carry
them and they used cold storage facilf-
ties themselves, and to such an extent
that they have made use of a large
percentage of banks funds in the
states of West Virginia. Maryland, Vir-
ginia and other southern sections.
Where storage facilities could not be
commanded apples have been sold as
best they could-they are edible, and
very cheap, differing muchly in this re-
spect to cotton, but the latter, like
apples. is salable at a price.
Southern Cattle Problem.
There is also a cattle problem with
the farmers and feeders of Virginia
and West Virginia and some other mid
dle-southern states. Usually feeders
are purchased from the same interests
that acquire fat cattle. This year, of
all years, and last year, the sellers of
feeding cattle made their contracts to
purchase fat cattle December 1, nearly
sixty days later than usual. The cattle
may be fatter because of the heightened
feeding, but the southern banker has
to carry them, in addition to apples
and cotton.
Verify he is in trouble, and his north
ern friend and associate must hold up
his hands. else will he fall.
Washington's Cotton Assessment.
Washington bankers will probably
contribute their quota of 100000 to
the cotton pool of $135.000.000, but
there is a feeling among some of the
institutions that have been helpn
especially in the nearby southern
states, that the allotment Is bit too
large for this city. Furthermore. the
outlook for profit on the transaction is
not promising. and within a compare
lively few days the stock subscription
to the federal reserve bank will be
payable, and there will be a draft on
balances, such as they are, to the cred
may shift their proportionate pay
ments of reserves to the federal bank.
Cut Steel Common Dividend.
Action taken by the directors of tie
United States Steel Corporation yes
terday afternoon was a keen disap-
pointment to the common stockholders.
They had anticipated full dividend
declaration, at least one more, though
conservatives admitted that it would
be the last for some time, but the
declaration was one-half of 1 per cent,
instead of three-fourths of per cent,
the usual declaration. And 1t Will be
one of the most serious in loss to
shareholders that have yet been an
nounced.
Net earnings for the third quarter
were given at S22,s76.O02, said to De
very satisfactory considering condi-
lions, comparing with s2o.457,596 for
the June quarter and $3s. 45O.000 for
the third quarter of 1913.
After paying the full dividend twice
this year there were deficits of $685.
rate there was surplus of $S4,479.
The cut was probably the realization
of the directors that hard times were
ahead, that duty to preferred share
holders and the preservation OF the
immense cash reserve was more neces-
sary than the payment to the common
stockhoIders. The regular dividend
would have left a deficit Tor the quar-
ter of s2,6O0.0o0.
Moreover. during the third quarter
&c OF 900 was set aside for deprecia-
ton nearly 100000 more than for the
second quarter. ,,o,.,,
The untitled orders totaled 3.7S7,677
tons September 30.
Report Chances Of Early Decision.
II is stated that there is good author
;+v for believing that the interstate
commerce commission will lay aside all
other business and act on the rate ques-
ton promptly. Estimates report the
of a decision within ten days.
Arguments begin tomorrow ana should
he finished within week.
Meeting of the Clearing House.
There will be meeting of the local
clearing house association Friday of this
week. when the question OF the cotton
nool contribution will be taken up. as
made and the matter fully
discussed.
Federal Reserve Banks.
New York Federal Reserve Bank
plans to be ready for opening the 18th
~ November, as per order Of Secre-
tary McAdoo. With the salaries to be
,aid the officials Of these institutions
and of the federal reserve board itself,
he twelve district banks will have to
"a real money makers. In New York
H. De, 10 min Strong. jr,, governor.