The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-11-05
Business and Finance

the American people have either In
cash payments or by commodity ex,
ports, liquidated nearly one billion
dollars worth of miscellaneous debts
held by European creditors. One of
the most marvellous features of the
present season is the ease with which
| sales of American securities by the
European investors are being absorb
| ed here. The liquidation will prob
ably continue, in measure at least,
during the entire war period; but it Is
causing no apprehension and there is
no reason to fear future disturbance
from it. A good portion of the secur>
tiles returned by Europe within the
last year, variously estimated at from
$500, 100000 to $,10O00O0,O00, has been
taken by the great life insurance COM
| panies and other investment institu-
tons. This buying has been of the
| best and indicates that the securities
will not come upon the market again
| for months, if not for years. 1t is
believed in expert banking circles that
as soon as the large war issues are out
of the way there will be new hnanc-
ing undertaken on a large scale for
| the railroad and industrial companies
Arrangements to that end seem to be
opportune, as during the whole OF
next year only $500,000,OOO in corpor-
ate securities will mature, as COM
pared with $500, 100000 in the current
year. Already a number OF import
ant industrial concerns, as we'll as
prominent municipalities, are making
| plans to that end.
Investment bankers from the i'm
| rortant financial centers report that
such has been the demand for high
grade securities that in many instan-
ces it has been found difficult to meet
this demand. This refers particularly
to railroad, municipal and public SER
vice and utility issues. The bond
houses have, accordingly, turned their
| attention to securing a good supply
of moderate-sized blocks of various
bonds to meet the demand, thus Civ
ing the market a stronger tone and a
| decidedly active appearance. Special
issues of bonds are attracting much
attention, both on the part OF private
| investors and of the banks and fnanc-
ial institutions generally.
... Steel.
The financial district in the early
part of the week awaited anxiously the
| third quarterly report of the United
States Steel Corporation, which was
made public on Tuesday afternoon.
Though disappointing to those who
have been predicting quarterly earn
ings of from forty-fve 10 fifty million
| dollars, the record of the giant steel
| company emphasizes the marvellous
prosperity that is now being enjoyed
by the iron and steel industry. The
| steel corporation earned nearly thir-
| ty-nine million dollars net in the quar-
terly period ending September &c. as
compared with twenty-eight millions
in the second quarter of 1914. After
allowing for fixed charges and the
dividend on preferred stock, there was
left a surplus of over eighteen million
dollars, an exceptionally favorable
showing in this respect.
A strong sidelight on the rising tide
of prosperity in the steel trade was
the net earnings for the month of
September, which amounted to $13,-
To3, 327; this is the largest monthly
total since May of 1913. In fact, the
recovery in activity and the increase
the past year have been extraordin>
ary Probably never in the history OF
the big corporation has there been
such remarkable transition in its
earning power from comparative pow
erty to prosperity as has been shown
since the first of the current year
Whereas year ago the income of
the steel corporation was on sharp
ly declining scale as a result of the
war, in recent months it has been
moved even faster in the other direc-
ton for the same reason. A veritable
flood of orders for the steel that is
going into ammunition making and
war orders, as we'll as the increased
railroad and other demands, has ac-
counted for the phenomenal improve
mint. In the October quarter of last
year net earnings dropped to $22,-
| 10000 and the directors reduced the
common stock dividend to per cent
basis, compared with previous an
rual rate of S per cent. At the same
time Judge Gary declared that the
step was necessary on account of
business conditions. In the December
quarter net earnings dropped to $l0,-
o35,635, the lowest in the history OF
| the corporation, whereupon the direc-
tors deemed it advisable to pass the
| common stock dividend. That was
done at the January meeting. Since
then the recovery in earnings has
been unprecedented. The steel cor
peration has gradually increased its
output, first to so per cent of capacity
| tfen to rs per cent, and lately to 90
per cent, of full capacity
Neither surprise nor disappoint-
n,ent were shown at the action of the
directors in passing, for the present,
the dividend on the common stock If
the present record can be continued,
it is unlikely that the dividend will be
ordered resumed at its next quarterly
meeting, which takes place on Janu-
airy 20, 1916.
Western Business Looking Up.
There is no doubt of the increased
1 4. II