Evening star., 1919-08-31
SENTIMENT FAVORS MERGER
OF TRACTION COMPANIES
:.
Interests of Dominant Corporation Would
Demand Recogntion-Not Possible on
Scent Fare-Labors Demands.

Oi tHi0 Oity 0Hu INC UR10HA4 DAu I
OF the country will be made carly next
week. and the chances are fair that
the showing az at the close Of busi-
ness August 30 will be asked.
The call should show z general fall
ins on In hank deposits. July and
August are not saving months. The
call Of the seaside and Of the noun
tains WAS rampant. vacation 10 = sea-
son Of spending and the return of
millions OF tax money will work
against increases.
On Tuesday morning there will
probably be . return to business
activities of q bunch Of bankers who
and the more or less fashionable rs.
sorts.
Charles C. Glover, e. l. Stsllwagsn,
Daniel Fraser and william d. Hoover
should return within . day or two
from Maine. while oeorge 9. Waleon
Milton =. Allies will probably spend
the week At Bolivar Heights unless
recalled by street railway affairs.
Charles J. Bell should be back from
his prolonged Canadian fishing trip,
which unqu sstionabiy has been the
out OF Washington.
The Value Of q Blun.
william c. Whitney and his ASSOC
eiatss once crossed swords with the
City Bank interests over Consolidated
Gas. They had started . Vas and elec.
trio light concord in the northern part
Of Manhattan Island and moro Of .
dght than they contemplated. The
City Bank called loans on ths Tobacco
wsrs pushed down from above 70.
When they reached 90 the Tobacco
treasury was put In to buy the bonds
every eighth down until they wsrs
well below IS.
Then whitney and his associates
treasury could only hold out down to
81. They then made up . syndicate
for 100000 to support the bonds at
around 81. Whitney insisted that he
should handle the market. Then he
ordered Moore q Sohley to buy . mil
they were 51K. This advancsd the
bonds above 50. He Immediately or
dofed another million bonds at the
market and they touched 50. An or
der for another million went in and
the bonds rose to 81. Then whitney
gave 3. We. o.. orders to buy the balance
they shot above IS. The bears did the
rest and closed the bonds above So,
At o'clock whitney said he must
go to Saratoga.
His associates said: NO. you stay
right here"
Cant you see." said whitney. that
II I 90 to Saratoga and appear all
right at the races our credit will be
restored? But. If I stay around here
they will know we are preparing to
defend ourselves from trouble and the
bears may hit US again. They must
know that I am at Saratoga and I'll
see that they know it." He went to
Saratoga and Tobacco bonds never
went back
1t was not 30 much the desire to
depart from its long maintained policy
OF secrecy regarding financial opera
tions that caused the management of
the Standard Oil Company of New
Jersey to have listed on the New York
Stock Exchange its new issue of pre-
ferred stock. The wishes of the un-
derwriters did the business. Listing
requirements will compel the Stand
ard Oil Company to make public much
data In addition to that which has
the capacity of its manufacturing
equipment. pipe line statistics and. in
fact. all details of the giant CORPORA.
tion's business.
(By the National City Bank.)-
The steel business was developed
out Of its profits-the profits which
have been SO often criticised. With
out them the required capital would
not have been available and steel
would be still unknown to it's multi
piled uses It IL the same with all
the industries The great cotton man
ufacturing industry has been devel-
opsd by means of the pfofits made in
1t and the public has gained more BY
the investment of these profits for
the cheapening Of production than II
would have gained in having cloth
SOLD to the public at cost. because in
the latter event there would have
been no progress In the industry.
ogden Armour testified before a
Senate committee that 81 per cent of
all the profits of the Armour business
since 1t was incorporated had been
left In the business for its develop
ment. The profits OF the business
n nave averaged less than per cent
OF the value of the annual turnover.
and only Is per cent Of this 2 per cent
has been Withdrawn from the busi.
ness-about two mills to the dollar
OF turnover. If the government had
owned the packing business 1t would
nave had to provide the capital for
its expansion either through profits
or taxation.
The Government Industry.
Andrew carnegie's career il very
suggestive Of comment upon the pro-
posal to have the government embark
IN industry. II Mr.. Carnegie had
neen hired By the government. after
tne Lenfn plan, to devote his life to
the development OF the steel industry
upon a salary amounting in the AZ
sr srreease 70 his living expenses. the
services would have been practically
the same. He could not have de-
voted himself to the task more COM
pletsly. and allowing that his zest
was undiminished he would have had
tion or free use Of resources.
imagine him before congressional
committees Changing every two
years) trying to persuade them to
adopt his policies and dissuade them
from distributing the steel industry
throughout the states on the basis OF
population and according to the prin-
ciples laid down for the public build
ing and river and harbor appropria- :
tions.
Or. imagine him trying to get per-
mission to scrap practically new
new idea; and imagine his position.
and the task he would have defend
ing himself against critics and rivals.
II some Of his ventures proved un-
successful!
The whole theory Of having the gov
eminent conduct industry is based
upon the idea that the profits of pri-
vate industry are lost to the public,
that private wealth is boarded for az
elusive use and consumption. People
think OF a rich mans wealth as with
drawn from the common supply. and
that other people have less in cohse
auence. but that 10 true only Of the
negnble portion which he and his de-
pendents actually consume. Addi-
ttons to capital all 60 to increa sine
the common aunnlv IA that >..H-..A~A -.