The Washington times., 1922-09-06
DSSsssgsr B u SINESS AND FINANCE
Market Comment

Copyright. is22. by Cosmopolitan News
Service.)
NEW YORK, Sept. 6.-Those who
have made a study of forestry state
that the strongest and most sturdy
oaks are to be found in the spots
most violently swept by the fierce
winds and sleets of the fall and win
ter. Human muscles that are sub
jected to the heaviest strain develop
much more strength and agility than
those which are rendered practically
useless through idleness. The funda-
mental principal that function makes
structure IL as applicable to business
as 1t Is to forestry or physiology.
During the past few months Ameri-
can business and industry has been
subjected to severe test. from which
1t has emerged triumphant. The
enormous bandicaps imposed by the
coal and railroad strikes have been
sufficient to dampen the ardor OF
the most enthusiastic booster for the
country; while the failure of national
and State legislators to appreciate the
situation sufficiently to induce them
to pass laws that will help. instead
Of those which hinder, has been one
of the most discouraging aspects of
putes have helped to demonstrate the
fundamental soundness of the bust.
ness structure, and to unite the real
leaders OF Industrial America in such
a manner as to furnish the basis
for the ultimate settlement of their
disputes.
A total Of 913 new business. enter
a of -.
605,000, were launched under the
laws Of the principal States in Au.
gust, according to the regular month
ly compilation Of the Journal of Com.
merce. In July the total was 1884,.
200, and In the corresponding
month last year 1856 firms, with ag.
gregate capital Of S5s0.141, 100, were
incorporated. Since the beginning
Of the current year a total Of 6,504
new firms have been organized, the
combined capital involved amounting
to $6,475, ,911 400. Delaware main
tains its position for the greatest
number of new charters, the total
capital OF new companies organized
In that State during August reach.
ing $368, 100000. Pennsylvania was
second, with S20,000,0 900, and New
York third, with SIS ,000, 900.
As CLEANED from a perusaI of the
regular weekly circulars Of the stock
market commission houses. profes
sional opinion in the financial district
at this time IL decidedly mixed. A
large number Of market prognostica
tors hold the view that as the strikes
have been fairly settled and the good
news is, therefore, out" 1t is time
for those who have been supporting
the market for a long period to rear
their rewards. While temporary set
backs are always in order, and the
prevailing opinion is that one is Ions
overdue, most Of the forecasters say
that the upward movement has moi
been completed. A prime reason foi
this contention Is that a large mum
Der Of investors have been purchas
ing high-grade dividend stocks and
removing them from the market t
their lock boxes.
Traders are at a loss to under
stand why the new Crucible right,
are In such demand at 81 each
when the old stock is selling about
four points under par. and in fac
has only recently attained that posi-
ton. The rights are given to tn,
stockholders to subscribe for 5000.
shares Of new stock at par. 1t II
rather significant that on the frs
announcement Of the Forthcoming
issue the old stock declined rather
sharply. The caustic comment Il
that only the insiders can appreciat,
why one dollar is bid for rights tha
are manifestly worth less than moth
ing at the present quotations fol
the old stock.
1t now appears that the Pan-Amer
lean Oil Companies are not the onl,
ones that have suffered. and will
suffer from the unstable condition,
Of the Mexican Oil fields. In an au
thoritative article on this subject
the Standard Oil Company Of New
Jersey, states that, while q huge In
vestment of half a billion American
dollars has been made In the Mex
can oil industry, the results nav,
been quite disappointing. and 1t Il
now realized that the whole Of thi
investment will never be returned L
them. II Is further asserted that ex
listing oil fields are becoming rapid!
exhausted. and that the future o
the Mexican oil industry will depen'
almost entirely upon the attitude o
the Mexican government towar'
foreign producing companies.
| In the last twenty years the tota
oil production from Mexican well
has been approximately 700,0O0,00
barrels, over 500, 100000 Of whicl
were produced in the last five years
In this period, the Mexican govern
ment received approximately SIS
600, 900 in direct taxes. The Stand
ard OIL characterizes the present ST
uation in Mexico as critical an,
states that the oil industry in Mex
co will have no future unless al
intensive effort to find new field