Evening star., 1918-05-26
EVANGELICAL AND OTHERWISE.

outlook. the United States Investor
has this to say:
Efficiency Of management and con-
sistency in earnings cause the
shares at present price to be consid-
cred a most excellent Investment.
The company has maintained itself in
. strong financial condition. and its
dividends have been large and reg
ular. BY efficient methods of manu-
facture. and a very complete system
Of allowing for depreciation and fu-
ture contingencies. this company IL
well able. apparently, to withstand
whatever adverse conditions may
come to 1t because of the present
war. That Is, even should the war
force reduction in dividends, which
SO far Is only mentioned as a possi-
bility, the condition of it's business
and propects are such that one need
have no hesitancy in saying that its
trade ought to revive Immediately.
upon the return of normal conditions.
The company has had big business in
Cuba, South America and in Mexico.
and although there may be some in
terruption because of transportation
conditions. the business is there and
will be completed when conditions
permit.
Originally It's machines were not
sold outright, but leased to printing
companies, which were obliged to
carry a heavy insurance upon them
At present machines are sold out
right. and while there Is rivalry %
the part of the Intertype Corpora
ton, which makes a machine of SIM
liar character, perhaps the rivalry Is
healthy factor. stimulating COM
petition that Is good for both.
Mergenthaler Is selling now at
some 40 points below the lowest
previous mark in twelve years. 1t has
been good Garner, and since the
year 1896. a year after its incorpora-
cent up to 1914. In the latter year 1t
paid 14k per cent. in 1915. 10 per
cent. and last year. 12h per cent.
For years the net earnings ran above
s2.700.000. or over 20 per cent on its
12s. 900 shares. In the year ending
September 80. 1915, it's earnings. to
be sure, dropped to s1,467.0O0. but in
1916 they came up to s1.sss. 900. and
were about the same-that is. Is per
cent-in 1917. 1t is believed by many
conservative men that an investor
would make no mistake In consider
Ing Mergenthaler stock a decided bar
gain at the present price.
Local Securities.
During the week very few stocks
have changed hands on the local
StOCh cSCHdH8e duO
few bonds. 1t is within the possi-
bilities that something definite may
develop in connection with the at
tempt to reach a merger basis be-
tween the two local street car
companies.
ing the week. the whole list appar-
emily being near a rock bottom aver
age. although any considerable pres
sure would split a rock or two.
A study Of the prices of the year
shows that the recoveries have been
stances, practically the bulk of
listed securities showing steady down
turn.
Financing the War.
Speaking to this subject. A. Barton
Hepburn. president of the Chase Ma
tional Bank of New York, makes
some pertinent remarks of interest
to all:
THE government with its taxing
power. must stop short OF impairing
business. either by discouraging new
enterprise or by the imposition Of ex-
cessive burdens: and this is why the
proximate determination of the in
crement of the nation is so important.
To impose taxes greater than can he
paid from current earnings would be
to compel the reduction of capital
in order to pay the tax. . 1t would
be in effect a capital tax. 1t would
force borrowing from banks under
circumstances which could have no
other effect than to impair credit.
The borrowing needs of any business
enterprise are greatest when the
volume Of It's business is greatest.
With growth in volume Of business
the capital Of the enterprise becomes
fully employed and must be supple
mented by appeals to the banks.
There ia a limit to what Congress
can do with safety and propriety. and
1t seems to me that the best service
we can render is to help find that
overstep the same and thereby invite
disaster-the disaster of currency in
hation and q paper basis