Image provided by: University of Oregon Libraries; Eugene, OR
About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Aug. 7, 1919)
THE- OREGON DAILY JOURNAL. PORTLAND, THURSDAY, AUGUST 7, 1919. ;NEWS OF THE FINANCE, INDUSTRY AND ENTERPRISE WORLD Kdired by Joe II. Jordan National bank, has ' taken months leave of absence.' two 10-YEAR : LIBERTIES SELLING TO YIELD GREATEST RETURN At 95 They Give 4.95 Per' Cent , If Held to Maturity,' Victory Issue Selling to Yierd 4.79. DEMAND FOR THEM HEAVY Certain Tax Exemption Features Make Them Desirable in Cases Where Application Is Possible. 'New York, Aug. 7. Among Lib rty bonds outstanding the 10 year third 4,is. due September 15. 1928, are selling at prices to yield the largest return if tfeld to maturity, n round 95. At that they yield about 4.95 per cent, compared with the present yield" of 4.79 per cent of Vic tory loan 4 , currently selling around 99.94. As Liberty loan third 4Vi mature much earlier than other itssues bearing Interest of 44 per cent, it is quite likely they will advance to par as soon as, possibly sooner than, other Liberty bonds of the same rate. They would seem to offer the best investment to investors who are not concerned about taxes- There are $4,055,887,000 of this issue outstanding, which are unredeemable before maturity except by purchase for account of sinking fund. The sinking fund provides during the first year form date of issue and in each year thereafter, until one year after the end of the war. 5 per cent of bonds outstanding at the beginning of each year, be applied to their purchase at an average cost not exceeding par and. Interest. HEAVY Tit A I) E IN LIBERTY During the last 10 days there has been an unusually large volume of trading in New York Stock exchange in Liberty loan and Victory bonds, the largest sales being in fourth 41s, which have the wid est distribution among investors of small means. Banks and investing corpora tions have stood ready to take all bonds offered at present low prices, so that prices have been very steady. Liberty loan third 4'is. 'principal and Interest, are exempt from all taxation now or hereafter Imposed by the United Ktates, any state or any possessions of the United States or by any local taxing authority except (a) estate and in heritance taxes, (b) surtaxes, fxcess profits and war taxes, lmsed by the United States, upon the Income or prof its of individuals, partnerships, associ ations or corporations. Interest on $5000 principal amount of these bonds or $0000 aggregate principal amount of any 4 or 4'4 per cent Liberty bonds lssued since September 1. 1917. is exempt from taxes provided for in clause (r.) above. In addition to the foregoing exemption until expiration of two years after ter mination of the war, interest received after January 1. 1918, on an amount of bonds of the first Liberty loan, sjconvert ed: and second Liberty loan. -converted and unconverted ; and third Liberty loan, the principal of which does not exceed $45,000, is exempt from such taxes. No owner of such bonds is entitled to such exemption in respect to interest on an aggregate amount of principal of the same exceeding 1 times the principal amount of bonds of the fourth Liberty loan originally subscribed for and still owned by him on the date of his tax return. Undistributed net incomes of corpora tions Invested In United States bonds issued after September 1, 1917, are not subject to the 10 per cent tax imposed by the income tax law of September S, 1918. - Amounts invested in these bonds by a corporation or partnership, from capital, surplus or undivided profits will be in cluded In ."invested capital" for comput ing deduction and rate of taxation under the excess profits tax law. Undivided profits earned during the taxable year cannot be included in 'Invested capital" for that. year. War Stamp Buyers Are Warned Not To Deal With Scalpers Investors in War Savings Stamps are cautioned by fcl McLaln Watters, di rector of the war savings division, against loss at the hands of "scalpers." The August value of each 1919 War Savings Stamp is $4.19, according to Director Waters, and no one should part with his stamps for a less amount per stamp. Of course, the way to reap full profit is for the investor to hold his stamps until maturity, when they will be redeemed for $5 each. If the ftamps must be cashed in they should be taken to the postoffice. where full value. $$.19. which includes interest above the original cost, will be refunded. Scalpers are continually try ing: to indnce people to bring" stamps for redemption, but the investor who deals with them loses heavily, says Watters. Investors should beware of scalpers and deal only with postoffices. LOCAL SECURITIES PuMIe Utility Corporation Bid. NorUrn Klectric. pfd. toc ..... $84 OO Common $18.75 19.00 Bond. 1st Mtg. 6b, du 1930 7.00 Ore. Kiev-trie Ry bond. 1st Mt. 08 due 1933 70.00 7o.00 Ara. P. A U. pfd. itock.. 74.00 78. OO oinmon tock 73.00 70.00 Oirtionn "o common rtork . . . 8.00 1 l.OO Psc. P. & U. 7 pfd. stock... 9600 100.00 Bonda. 1st anil rcf. On. duo 1930 86.00 90.00 Port. U. Co. bunds ufy 0. duo 1951 99.00 10O.O0 Tort. G. A C, TX pld. stock.. 96.00 100.00 Bouda, 1st and rcf. . duo . J940 85.00 90.00 Pac. TeL St Tel., pfd. stock... 88.75 90.00 Common itock 28.00 Boude. 1st and ref 6s. 1930. 91.50 92.00 P. K., L. & P. common stock . . 6.00 8.00 Bonds, lot and ref. Oa. duo 1942 65. 25 70.00 Bonds, P. Kjr.. 1st and ref., 1930 70.00 75.00 Bonds. V. V. So. 1st 6s. duo 1930 88.00 Bonds. Urn. Elec.. 1st 0s. duo 1935 82.00 Psc. G. A CI. (S. F. ) . 1st pfd. stock 89.50 89.75 Bonds, sea. ret. 5s. due 1942 86.00 Common stock 64.67 64.76 Bonds. Cat. G. & El. uf jr. 0s. 1937 92.37 92.75 Bank Shares Bank of California $189.00 Citizens bank 130.0O 130.00 Canadian Bank of Commerce.. 205. OO ilibeniia Ravines 170.00 rirt National 190.00 200.00 lidd A Tilton . 30O.OO Northwestern National 135.00 State Bank of Portland .... 170.00 tinted States National 300.00 ...... Miscellaneous Securities Arlington club bonds, Os, due 1934 80.00 89.00 11 A. A. C. bonds. 6s, due 1930 91.00 93.00 University club bonds, 6s, due 1930 00. 00 60.00 Waveriey C. C. bonds, 6s. due 1032 07 00 100.00 BOSTON COPPEK MARKET Famished by OTerbeck &. Cooke Co., Board of Trade building r Closing Bid. A: k. Adrenture 1 S 2Vi Ahni.vk 75 100 Alaska Gold . . . . 2 ? 3 All .ulz : 4 5 4i Kutte Bui 60 5 Butt & Superior . . . . 254 27 Calumet & Ariz 75 7l Calumtt & Hecla 435 445 Centennial IB 18 Copiicr Hangs 53 "4 54 U IHly Wrst 2 3 Kast Butte 1 1 S 1 ai Kpanklin 5 5H Granby 60 70 Green Can 4 3 43 Hancock 7 Vt 8 Indiana I 1 H Inspiration 0!) 60 l ie Kflvale 3 5 V, 36 Kerr Lake 4 0 Kfwcfiiaw . 1 4 1 I-aka . 5 5 Ijl Salle 4 M 5 Mass. ton. 7 V N Mayflower 9tt 10 Michigan 7?s 8 " M.iliank . . 73 74 Nipiine 10 1 o i North Butto 14 1 0 Old Dom 44 45 H ("cola 60 04 Pond Creek 19 .... Quinry 75 77 Shattuck 15i 17 South Lake " ' .Superior 7 H 8 Sup. it Boston ' Trinity 3 :; V V. S. Smelting Ptali Cona 1014 11 14 Victoria . Winona ' ' 2 ' - :t WolTerine 2 2 7 CURB LIST Davis Daly l ' . 1 4 Gray digger squirrels, protected by law, are blamed for heavy loss of cher ries in the Hood River valley and apples in the Willow Flat district. HEALTHY ACTIVITY IN MERCHANDISING SHOWN BY REPORT Saljes Heavy -and Payments Good Despite High Prices Prevail ing; Staples in Big Demand. HESITATION ON SPECIALTIES Pacific Coast Purchasers Show New High Record; Buyers in Before Prices Were Advanced. Splendid condition of merchandis ing throughout the country with pur chases at a new high record and in debtedness low and payments very high is shown by a monthly report on business conditions issued" by the Credit Clearing House of New York. This report, it was pointied out. is based on more than 200,000 actual transactione. representing about $30,- 000,000. The report denotes that payments to day are better than ever before noted with the exception of June. 1919. and July, 1918. It says also In spite of the very high price of merchandise, sales were heavy for the month. During the last 10 days there developed a slight hesitancy on the part of the buyers to lay In specialty stocks in any great quantities, indicating that they prefer to reorder if demand calls for it. STAPLES GOIXG -STROJfG Staples, however, are still being or dered with usual freedom. Summarizing the activities of the country by states, the tabulations show 40 states increased their purchases over las month. 23 over July. 1918 ; 25 over July. 1917. and 30 over July. 1916. Indebtedness shows a decrease from last month in 32 states, a decrease from July. 1D18, in 34 states; from July, 1!17. in 44 states, and from July, 1916, in 41 states. Payments are better than last month in 23 states. 3:s states show better than July, 1918; 38 states better than July, 1917. and 41 states better than July, 1916. BEl'ORT BY SECTIONS A detailed report on conditions in the various sections of ths country fol lows : Purchases in the Pacific coast section show a new high record during the last month and are 5 per cent greater than June of this year, 5 per cent greater than July, 1918 ; 2 per cent greater than Juiy. 1917 ; and 1 per cent greater than July. 1916. Indebtedness continues to decline and Is lower than any month of record except February of this year. Tabulation shows that it is"Z per cent less than June of this year, 3 per cent Ipss than July. 1918. and 9 per cent less than July, 1917 and 1916. Payments in this section show an increa.se of 3 per cent over June of this year, are equal to July, 1918 ; 8 per cent better than July, 1917, and 6 per cent better than July. 3916. BITEKS IX KAELT a The figures show the section in splen did shape, with high purchases, low in debtedness and splendid payment ac tivity throughout. Buyers from this sec tion have been in the market early and have taken advantage of early quota tion, which were considerably lower than present priees. Advance orders have been well bought, according to authorities. The outlook for fall mer chandising is excellent. FINANCIAL BREVITIES National City bank has Issued a cir cular on economic and financial condi tion, in which it points out that this country's exports in June reached $918. 000.000, exceeding by over $200,000,000 the highest previews month's record. Im ports were only $293,000,00. leaving; a trade balance of $625,000,000. Exports for the year ending June 30 aggregated $7,225,000,000, as against imports of $3,096,000,000, leaving a trade balance of $4,129,000,000. Such a trade balance is a serious matter, the bank points out. the discount rates on foreign exchange of several of the European countries has decreased sharply during Uie past month and indicates that the purchasing power of these nations in our market will soon be exhausted if we do not come to stheir aid with substantial credits which will enable them to reestablish their indus tries, and export merchandise, thus creating a greater degree of equality In trade. Theodore N. Vail, chairman of the American Telephone & Telegraph com pany, in a communicat'on to sharehold ers, in outlining the affairs of the com pany after a year of federal control, advised those stockholders who are be ing approached by brokers and others interested in putting out new securities of momentarily popular issues, offering or recommending exchange for American Telephone & Telegraph securities, .iot to be influenced by such circulars or by any mistaken or misleading articles de preciating these securities. SPOKANE FARM LOAN BANK'S APPLICATIONS TOTAL $81,000,000 Total Loaned to Date Over $33, 000,000; 445 Farm Loan As sociations Formed. The effect of the gold embargo main tained by the United States during the wan the federal reserve board has an nounced, may have resulted in holding the net gold reserve of this country vir tually intact, says the Public Ledger bureau. Since the removal of the em bargo the board has issued approxi mately 1142 licenses for the shipment of $152,326,979 In gold. about 1500 licenses covering $502,756,003 in silver and about 1817 licenses covering $208, 170.700 in currency other than United States gold and silver certificates. Some 755 applications of all classes have been declined. A commission representing the Ameri can textile industry, according to '.r formation from Denmark, will visit Copenhagen in the near future. The Amer'can commission will discuss the new commercial relations between Den mark and America with the Danish manufacturers to merchants and will invite Denmark to participate in the world tTotton conference to be held in New Orleans in October. Spokane. Wash.. Aug. 7. Applications for loans from the federal land bank of Spokane from farmers of Idaho, Oregon. Montana and Washington, at the close of business July 31, amounted to $81, 000.000. ; President O'Shea says that 28,937 farmers have made application for loans through the bank since its organization. Not all of these have been granted. In that time approximately 12,000 applica tions were withdrawn or rejected, with a total of $30,000,000. 10A.S OVER $33,000,000 .Loans have been made and closed and the money paid over to 13,197 borrowers, amounting to $33,020,160. In July 351 loans were closed for a total of $1,030. 820. The bank's capitalization, through the subscriptions of borrowers, repre senting 5 per cent of their loans, has in creased from $750,000 to $2,013,000. The bank has issued its full quota of bonds, and President O'Shea reports that not only are they all sold, but future issues for some time ahead are con tracted for. The demand for bonds ex ceeds the supply. 44i ASSOCIATIONS FORMED In the four states in the bank's terri tory there are today 445 "national farm loan associations. Each is a chartered corporation with its own officers and directors, through which the farmer borrower secures his loan fromthe land bank in Spokane. The number of these national farm loan associations is stead ily increasing, and they are today found in nearly every community in the four states. Business is especially good west of the Cascades and in the well developed irrigated localities. George F Cagon, vice president of the EL W. Stand rod tt Co. bank - of Blackfoot. Idaho, reports that the" grain in his district is not burnt out as bad as some other districts. Coopera tion In the distribution of the water is said to be the reason. Mr. Gagoh mad his firsf trip over the Columbia highway and expressed great pleasure witn the ride. Joseph Hirschberg. president of ' the Independendence National bank, visited Portland Wednesday and has gone to Foley Springs to spend a few- days. rf. B. Evans, cashier of the First National bank of Canby, was a -Portland visitor Wednesday. A. B. Nordling, former assistant audi tor of the United States National, and later chief clerk of the Spokane branch of the Federal Reserve bank, has been given a position In the Federal Re serve bank in San Francisco. Nord ling was president of the Portland chapter of the A. I. B. in 1917, suc ceeding Eddie Sammons. Dwight L. Seely. cashier of the Farm ers State Wank at Wilsonvllle, con ferred with the officials of the State bank Wednesday and reported excel lent crop results in his community. Clifton K. Wells, representative of the foreign department of the Guaran ty Trust company of New Tork. visited Portland the early part of this week. Wells is investigating conditions on the coast relative to foreign, trade possibilities. $175,000 MUNICIPAL 6 TAX EXEMPT m Mm LIBERTY BOND SALES liberty bond 'Wd in Urn New Tork market at followloc prices: Thursday. . , Friday. . . . Saturday . . Monday. . ror-nlay. . . Wednesday. 8H 00 56 0!. HO OH 50 00. HO 09.78 lit 4a 04.16 04. 3a 94.1.8 04.1 0 04.10 94.03 2d 4a 03. JO 03.52 93 38 03.82 03. 1 8 03 18 lt4a 2d 4 Ha 3d 4 Ha 4th 4 K 04.'0 93.18 94. 0 03. 4 Victory 3a 4H 04.60 04.10 94.70 94.10 94.40 93.88 93.43 94.10 93.36 U3.40 05.04 95.08 95.00 95.08 05.04 93.86 03.42 90.38 03.54 93.54 99.00 99 90 99.8 99.84 99 88 99.86 90.80 99.86 99.84 99.90 99.84 99.86 .1 i 1.1 I I . . II I 1 1 1 II. . , in , 1 Wm& il : Make Canada on Your Way East m t w Americans appreciate Canada's men. Her Alps, too, have won our admiration and thon sands wdl travel East this year through the Canadian Pacific Rockies to see tk Alpine Fairyland to stop at pictur esque Victoria and Vancouver, at the chalets and spacious betels at Sicamout, Glacier. Emerald LakOt Lake Louise end Banff to glimpse big game in Canada's National Parkato enjoy out door sports in matchless mountain playgrounds. Perfect service and direct connectieas. No extra (ares or sidetrips necessarr. Ideal in September Ask for Beaort Tonr Ifo. T! E. E. PEN Jf, Gen. AgU Pass. Dept. CANADIAN PACIFIC RAILWAY Si Third au, Portland, Or. -j;:--..,,, ... jv !tVF?? ; ' ' ' - -- - -' . . . ' i - ..." - PACIKIC COAST BAsr.. STATEMENT PORTLAND BANKS Clearings This Week. Tear Aim. Monday $ .1.400, 750.82 t 4.477.040.17 Tuesday 4.491 .23 1 .59 4.221.297.71 Wednesday... 4.532.255 68 3.389.884.68 Thurilay ... 4.641.472.75 3,587.299 56 Spokane Banki riearinei Thursday $ 1.529,4 70 00 Balances Thursday 347.031.00 Tacema Banka Clearinis Thursday $ 741. 337. HO Balsinre4 Thursday 313.180 00 Seattle Banks Clearings Thursday $ 6.063.808.00 Balances Thursday 800,318 00 Sao Francisco Banks Clearings Thursday $22,667,523.70 Los Angalca Banka Clearings Thursday $ 7.651.907.00 Two cars, one laden with picnickers, met in head-on collision at San Jose. Cal., and 40 or more persons were seri ously injured. ' Officials of the Bank of North Da- the Nonpartisan league legislature, have ' been advised ny 'ineoapre vvoia. gov ernor of the Federal Reserve bank of the ninth district, that the state bank is not eligible for membership in the fed eral reserve system. Officials of North ! admitted into the federal reserve sys tem, realizing inai memoersmp wouiu greatly strengthen the state banks' position. a k;it nrniHtinff national banks to ! i lend 25 per cent or tneir un. ipirea capital and surplus, insieaa oi iu pe. cent as fixed by existing law, was passed today by the house and sent to the senate. Chairman Piatt, of the banking and currency committee,, in charge of the bill, said that while the measure was drawn with the purpose of relieving a pressing situation in financing cotton, the majority of in quiries .regarding the bill had: come from cattle raisers. There will be a business recession in the United States if government aided foreign credits are not extended to foreign buyers, declares Charles H. Sabin, president of the Guaranty Trust company of New York. Europe's "crit ical" condition can be helped only by thia! country in supplying European nations with food, raw materials, coal andj machinery on time payments, he said, adding, that unless this is done both Europe and the ' United States i will suffer. Bank to Loan Only On Merit Hereafter New York. Aug. 7. Abandoning the mopey loan differential on securities, the Guaranty Trust company now makes no distinction in rates for both call and timj loans on mixed or all-industrial col lateral. AH securities will be judged on their merit, regardless of whether they are railroad or industrial securities. Tiis is the second institution to rrrake thisj departure, the First National bank having inaugurated the change in policy last week. I leaving Portland last Mondaay by auto. Fred Newell, transit manager at L.add & TUton. embarked on a vacation tour which will take him to Vancouver inland" and through some of the scenic spots of British Columbia. He will visit Rainier National park before returning to Portland. iW. C. Eraser of Ladd & Tilton has re turned from an eventful automobile ride through the Crater . lake country.. Ex tensive road work on the Pacific high way necessitated' many detours through perilous sections of wilderness, and any one attempting the ride to Crater lake at the present time is assured of thrills aplenty, according to Mr. Fraser, V. H. Wilhelm, savings department .manager of the First National bank of The Dalles, visited Portland this week and reports conditions very favorable In the upper Columbia, city. Edgar H. Sensenich, vice president of the Northwestern National bank, started out on an auto trip the ' first of the week to spend a two weeks' va cation. Merril Eastham, collection teller for the Northwestern National, has left for California to accept a position with a company manufacturing a gasoline meter invention. Eastham will act in capacity of treasurer for the new com pany. A. L.. Fraley of the Northwestern National, Andy Matthews of the Bank of California, and Steve Austin of the First National will attend the annual convention of the American Institute of Banking to be held at New Orleans next month. Miss Hazel Bowman, manager of the transit department of the Northwestern Roseburg Booster Wins Prize Samuel J. Shoemaker, brother of Carl D. Shoemaker, state game warden, is a visitor in Portland this week from Roseburg. Shoemaker owns a book store and is in Portland attending Buyers' week sessions. Wednesday noon he was awarded second prize at the booster talk contest held in connection with the Ad club luncheon in The Auditorium. BONDS 1 Jin County (Municipal) District PASCO, WASHINGTON Location, Elevation,; Transportation, Soil, Water riiake these bonds safe and attractive. Secured by 11.000 . acres of high-producing lands, all subject to the payment wf principal and interest, .prior in lien to any present or future mortgage. Small producing ownerships. 5WL.bor strikes do not affect this. security. Bonds always worth one hundred cents on the dollar. PRICE, PAR AND INTEREST Call, phone or write Robertson & Ewing Government Corporation Municipal BONDS 207-8 Northwestern Bank Bldg., Portland, Or. WMmn 2 Three Oregon Municipals We heartily recommend to investors the following income-tax-empt bonds, which have been issues for the advancement of already thriving Oregon communities: $89,994.58 CITY OF KLAMATH FALLS 6 GOLD BONDS Priced to yield 5 to 5:125 These bonds constitute the general obligation of Klamath Falls which has a lumber payroll of $300,000 a month. $80,200 SQUAW CREEK IRRIGATION DIST. 6 GOLD BONDS Priced to yield 5.75 Direct tax obligation of 12,000 acres In Deschutes county, net earnings of which last year far exceeded the net debt of the district. $37,000 Out, a-fishin' 11 f. I Somehow the fish seem to bite better si ; wneP you're in a good frame o' mind 1 ; hand steady, nerives cool, not a-worrying f J hut just ardreaniin' along, and Wboppo! J:fLi. 1 There's a Uig fellow. yl And tfcat' ist th frame of mind 0A Tf k jJssJJ the Cheery, sQ&JkJk SS Beery drink I (.?tn i J lUXO the pure cereaf beveraee 1 I I 7 j i alont. Buy it from aay dealer ; 1 A quality baveraa r Uta HENRY WCINHARD PLANT -EtUblltlMd 1 S6S. , Portland, Oregon 3rmttng Our printing gives character to vour business. Maui i65 -Telephone us- A1165 F-WBALTES & COMPANY FIRST AND OAK DESCHUTES VALLEY WATER DIS. 6 GOLD BONDS Priced to yield 5 District organized to supply .domestic water to towns of Culver and Metolius and Cultivated farms in that vicinity. Tax obligation of 19,800 acre's of excellent faim land practically all under cultivation. . Detailed circulars may be had upon request f . " Lumbermens Trust Company Lumbermens Building Fifth and Stark Six Hundred Thousand Dollars in Capital and Surplus HEADQUARTER far LIBERTY BONDS We BUT and SELL any amount. New York quo tations by wire every Birnio(. Interest in cluded : a V4 sio.s 1st 4s.... 4.A Sd 4s 4.1I 1st 4V4s tad 4Vis 4J7 Srd 4y4s S.74 4th 4yt 4.8 Victory 494s 100.88 If necessary to sell your Bonds, bring them to us. We pay hlgbeat local prlcM. ROBERTSON & EWING . S07-S N. W. Rank ttlMtn. GOVERNMENT. CORPORATION ANO STOCKS BONDS GRAIN COTTON J. B. Steinbach & Co. 201-2-3 Railway Exchang Bldf. Tels- ilala tHi-SHi - , Direct Private Wires Clark, Kendall & Co., Inc. announces that it has succeeded the copartnership of Clark, Kendall & Co., retaining the offices, organiza tion and records of the former firm for the business of dealing in. Govern ' thent. Municipal and Cor , w poration Bonds. .. DIRECTORS RALPH W. WILBUR R. M. . DOOLY JR. CLAUDE D, STARR WALTER KENDALL , . EDGAR C. PIEBE, New York OFFICERS WALTER KENDALL - President EDGAR C. RIEBE Vice-President R. M. DOOLY J FL, Secretary-Treasurer ALAN GREEN - Assistant Secretary Fifth and Stark Streets Portland, Oregon 7