Newark evening star and Newark advertiser., 1915-08-02
FINANCIAL NOTES


The statement of the Pennsylvania
railroad system for the month of
June is the best exhibit made by this
big transportation company for
months. 1t denotes that earnings of
the Pennsylvania railroad have now
definitely turned the corner" and
reflects the increasing trend of pros
perity which is slowly but surely
extending throughout the country.
Gross earnings of the system in
June expanded more than $630,000, or
2,OS per cent, to s31 sos, 1886, the largest
volume Of revenues for any month of
the current year. With the excep-
tlon of May, which returned the small
gain of only $4,000, June was the
ilrst month IN nearly two years to
snow definite increase in gross over
corresponding months of the pre-
Vious year. The expansion in gross
was carried down to net earnings,
which, at $S,456, ,563, also the largest
total for any month this year,
showed an increase of $1,041 sd, or
i4.0o per cent. over the same month
last year,
for the half year ended June 80
gross earnings of the system show
a loss of $685., ,000 or 36 per cent.
compared with last year, but a larger
sum. 1884 900, or 62 per cent, was
saved in operating expenses, so that
Tor the six months, the net earnings
or S2S, I49, 315 are an increase of 81, ,102,-
oos, or rs per cent. over last year.
The French loan in this country.
which was negotiated two months
ago with the Rothschilds of Paris by
a syndicate headed by j. P. Morgan
d Co. has amounted to $48 900, 900. The
loan was different from others placed
mere by the allied nations, in that it
was based on French-held American
railroad securities as collateral, and
,, was not definitely limited in size 1t
was understood in the financial dis
trict for several weeks after its terms
were closed that deposits of the rail-
road bonds in Paris, chiefly of the
pennsylvania and st. Paul systems,
We're increasing but slowly, and that
the loan might fall rather fiat. The
largest sum expected then in some
banking quarters was 500. 600, 900. 1t
was learned at the time the papers
were signed that the French bankers
hoped to raise as much as $50, 900 900.
The announced total of $4,000. 900 in
was much more successful than had
been expected, and it Is believed that
these satisfactory results will infiu-
ence the British government to en-
ploy similar means for floating a
gigantic loan in the United States be-
fore long.
The National City Bank devotes
most of it's August letter to a review
of the first year of the war, with
especial attention to financial de-
velopments. There are no signs, says
the bank, that either side is running
out of men or money, or that the
people of any warning country are
weakening in resolution or confidence.
The letter continues: Excluding
Italy the war loans have aggregated
approximately $500, 600, 900, and this
about represents the governmental
expenditures for the year. The total
Indebtedness of these countries at the
outbreak of the war, including the
debts of the several States of the
German Empire, was approximately
$23 900 900, 900. The cash expenditures
of Great Britain are larger than those
of any other country, as service in
! the army and navy is voluntary and
! the pay and allowances are much
higher than in the continental coun-
tries. In March the extraordinary ex-
penditures of Great Britain were
stated to be about $10,0000 900 per day,
but the chancellor of the exchequer
recently stated that they had reached
$15, 000, 900 and were still rising"
According to J Jerome Nordman,
secretary of the Foreign Trade Com
mission of Pittsburgh, foreign con-
tracts aggregating $100,000000 are
being filled by Pittsburgh manufac-
turers. Mr.. Nordman said he had
record of contracts totaling more
than $91 100000, and there were a
number which were not listed as they
were sub-contracts, which had come
from other sources than through the
commission. Not all of the export
business is for war material, either
Goods valued at s6,0O00O0 are being
made for ordinary consumption. The
Russian government has four metal
lurgists and chemists inspecting the
%, 900 freight cars being built by the
Pressed Steel Car Company. They
say Russia will require a vast amount
of steel products outside of war ma
terial, and that most of these will
have to be ordered in this country.
The Atlas Powder company Will re-
deem today at 102 per cent. of their
face value, plus accrued interest to-
August 1, all of its per cent. ten-
year income bonds outstanding at this
time. The Guaranty Trust Company
as trustee, will take up the securities
The original issue of these securities.
which was created in the powder
trust dissolution, amounted to $3,000,-
900, but under the recent offer of new
per cent. preferred stock, nearly all
the bonds were turned in as part pay
r,ent. in accordance with the pro-
visions of the offer made to stock
holders.
J. A. McCrea, general manager of
the Long Island railroad, issued
statement yesterday calling attention
to the fact that sixty days of the
heaviest summer automobile traffic on
Long Island have passed without a
serious embarrassing accident. He
attributed this to the company's CAM
paign to cut down this kind of dis
aster. Only one broken arm Is the
score so far.
International Mercantile
BOndhOlders Suggest
Plan of Reorganization
NEW YORK, Aug. 2-Bondhold-
erS committees of the International