10
OREGON : DAILY JOURNAL, POR TLAND, MONDAY; OCTOBER 27, VSV9.
NEWS OF THE. FINANCE,,- INDUSTRY vAND ENTERPRISE WORLD JSSfl-
THREAT OF COAL
STRIKE
BELIEVED
TO BE '
HE IIP
Wall Street Thinks Radical Labor
1 " Has Joined Unscrupulous Mine
Owners to Bleed Public More.
NEITHER SIDE COULD PROFIT
.Indigent Would Suffer for Want
! ;of Coal' and Operators Would
Be Forced to Use Fuel Oils.
amortization payment due by borrow
era to the bank amounted to $12,,
813.11. L Of this amount all but 1172,
466.73, or 1 4-10 per cent, had been
paid, and of thla sum' $86,816.60 repre
sents Instalments which, had only be
come due during the month
By Broadan Wall
New Tork, Oct. 27. That there
,wi)l be no coal strike Is the belief
of persons best Informed In flnan-
ciai ana laoor cirvics. iuco
very strong Impression, that the
threat of- strike la what the police
call a "frame-up", between certain
' coal operators and radical labor
leaders in-order that the price of
coal may oe aavanceu. iu
' ory Is strengthened by the fact that
most of the respectable labor people
do not want a strike.
? They say that a coal strike would not
'injure the man on Fifth avenue, nor
any member of the so-called "capitalist
vlass". but would immediately sert
' ously Injure the wage earners in every
tit industry. There are mil
lions of tollers who lack either the fore-
sight, the money or the storage place
to lay up a winter's supply of coaL
They would begin sutlering immeai
: ately as a result. They would also be
the 'first to suffer as one Industry after
another shut down for lack of fuel.
Thar wnnM ha n. reaction in the ranks
of union labo? fatal to the ambitions of
the radical leaders.
TBAMECP" SUSrECTID
Thls Is the labor point of view. The
capitalists of the coal industry do not
wuiii m. bu inc. ucvauna icj miv-
oil would replace coal in thousands tf
factories, and where once installed it
never can be dislodged. This idea that
talk of a coal strike is only a bluff to
cover up an advance in prices is not
comDlimentanr to either capital or
labor, but unfortunately it is the lead
In? opinion In this case.
With , danger of a coal strike out of
the way, there is pretty clear sailing
for the stock market.
Even if there is a strike it would be
short lived.
, Next In importance to the labor situa
tion, which from a stock market point
of view may be accepted as a vanish
ing factor, is the Question of taxation
" The cost of the war is a fapt that must
be faced and It is is also a fact that
future -., generations have been saved.
from a bad situation. It Is only fair
; tha a Urge part of the cost be passed
on In the shape of bonds.
' TAXES MAT BE TOO HEAVY
If the attempt is persisted in to pay
the whole cost of the war in the present
' generation most of the fruits of the war
will be lost, not only to this generation,
but to the' future. It is all right to
make Germany pay through tlie nose.
- but the civilised nations should not be
" bound down with heavy taxes. . These
taxes are the direct cause of the high
-prices that seem to Justify the charges
. of profiteering. For U must be remem
bered that the manufacturer must givo
anything from a quarter, to two thirds
of his profits to the 'government In the
shape of taxes. In the hope of keep
ing hlmselfwhat he thinks is a fair
profit he loads his selling price with
enough to pive him his profit after
handing most of the profit to the gov
' ernmenfc The thing Is interminable.
Everybody is doing it from the hum
1 West laboring man to the highest capi
. All are guilty and an are innocent.
.It is waste of energy to be denouncing
profiteers. By revising the tax rates and
.? a lnMAfi tiArtlnn nf thA Wftl
debU prices can be reduced materially
and Immediately. This is to be done.
5 HEED PLENTIFUL M05ET
' Money ' is the next consideration in
Wall street. The peak of the crop mov
ing period is over. There are many
natural reasons why money should be
more plentiful .
" After ' many months of hopelessness
the railroad stocks seem at last to be
emerging into speculative daylight.
They cannot be considered as invest
ment issues, but with the promise of
passage by congress of the Cummins
bill railroad stock may properly be
considered from a speculative point of
view. - They are not as safe even as
speculations as the Industrials, but a
KVVU an i , fc-.-
tivlty in the railroad list, and will
probably get It soon. ,
In the manufacturing industries the
Important developments of the last
' week have been a radical advance In the
price of cigarettes, an increase in the
, demand for candy and the further get
; ting together ot the -textile manufac
tures. . -. .
' In Lohg-Time Loans
I or I ami - r tubuses
' turing the ..' niontb' or September
v 119, an aggregate ot 18.400,360 was lent
' to 1841 farmers of the United State by
' the Federal Land banks on long time
'.first mortages. according to the month-
ly statements made to the farm loan
board. The Federal Land bank of Spo
kane leads C In the' amount of loans
closed, the same being ll.0S6.7S0. with
v the' Federal Land bank of St. Paul run-
? . ning next, in . amount. 81.044. ZOO. - The
outer mdiib viuaew imn in oefxemoer
as follows: Houston. $922,235; Wichita,
' $763,800; Louisville, $718,700; St. Louis,
$705v875 ; Omaha, $669,400 : Baltimore,
$577.900 f Springfield.4 $542,200 ; Berkeley,
$489,300;: New Orleans. $462.22 and Co
lumbia. $447,775. . :i , v V " . , r
On September- $0, 1919 there . were
operating - in . the United - States 3830
farm Joan associations. .The total mort
gage loans made by the Federal Land
banks through these associations. 8ep
tember 80, 1919 to 100.413 farmer-bor-frowers,
amounted to $261.175,4. tour
ing September f, 485 applications were
received asking for $25,491,081. , During
the same period 6174 loans - were-- ap
proved, amounting to $15,811,179. Alto
sethef 219.205 farmers have applied for
- loans under this system. ; In the. Aggre
gate amount of $605,575,801. N -
Up to September 30 1919, totercst and
Liimbermens Trust
Sells All Holdings
In v Several Blocks
Since the publication of Us general
offering circular early this month the
Lumbermens Trust company has sold
all of its holdings In 15 blocks of mu
nicipal bonds,, nine blocks of corpora
tion securities, and five blocks of for
eign government and municipal bonds.
Substantial sales are also reported cov
ering the other securities on the current
offering fist and in several cases new
issues purchased since the first of the
moeth have been entirely , disposed , of
to investors.
An allotment of Ford Motor company
notes, a new issue of Sunny side, Wash.,
improvement bonds and a block of
$58,000 city of Yakima, Wash., bonds,
were sold within a day or two follow
ing their purchase.
LABOR TROUBLES
IN JAPAN WORSE
THAN THOSE HERE
New Association Called "Kyocho
, Kwai" Formed to Settle Capi
tal and Labor Disputes.
In abetter received by E. G. Craw
ford, first vice president of the
United States National bank, from
a member of one of Japan's leading
banking institutions,' under date of
Sept. 15, the labor situation of that
country is one of grave concern; A
description of the conditions reads
as follows:
"Overshadowing alt questions in the
empire ; during the month Just cipeed
has been that of the tabor situation.
The strike among workers at the gov
ernment arsenals has been "settled for
the time being, but there Is still dissat
isfaction among the workmen,
COMPAHT HELPS POOR Vl:V
"The Kanagafucht Spinning, company
has done much for the Improvement of
the condition of labor In Japan. It has
set aside large amounts for the relief of
Its workmen Jn times of distress, and.
not satisfied with benefiting those at
present in its employ, has recently of
fered to lend reasonable assistance to
anyone who has ever been in the em
ploy of the company andrbo may now
be in need of help because 6 lack of
employment, sickness or inability to
meet living obligations on account of
rapidly advancing prices. ' The welfare
work of this company includes med
ical attendance for sick employes, a hos
pital, theatre, lectures, 1 amusement halls
and- educational features, and their
workmen are generally looked upon as
receiving the best treatment of any
workmen in Japan.
"About 30 of the well known capital
ists of Yokohama and Tokio met Sep
tember 13 at the official residence of
the prime minister and formed -an asso
ciation called the 'Kyocho Kwai,'-which.
translated. . means 'An association tor
the conciliation of labor and capital. .
The prime minister - set forth the
needs of tha worklngmen nd Ahe neces
sity of bettering their condition, and
asked the capitalists present to con
tribute toward a fund for. this purpose.
SubcrlpUons to the amount of $,500,0u0
yen were taken at the meeting, and as
sv' number of capitalist from Kyoto,
Osaka and other cities, who had been
invited to attend the meeting, were un
able to be present. It is thought that the
prune minister will hare no difficulty
in raising the remainder of the fund
8,000,000 yen-rmaklng a total of $10,
000.000 yen. t
STRIKING 0rP08ED '
"Baron Shibasawa Is the leading spirit
m this movement nd, while he favors
the inauguration of labor unions, be
condemns strikes as a method ot accom
plishing desired ends. Baron Shibasawa
believes that the association above re
ferred to the 'Kyocho Kwai' should
be an effective organisation for the con
ciliation of misunderstandings and dif
ferences between labor and capital, but
the criticism has been raised that the
organisation U too largely composed of
men of capitalistic sympathies, and some
of the representatives of workmen who
have been invited to Join the association
have refused on this ground. - Hopes are
$250,000,000
United Kingdom of Great Britain and Ireland
Ten-Year 5 Convertible Gold Bonds, Due August 1, 1929
and
Three-year 5 Convertible Gold Notes, Dtie November 1, 1922
Dated Nov. 1, 1919. . ' Interest payable Feb. 1 and Aug. 1.
Direct Obligations of the Government.
We are advised that the Bonds and Notes are legal investments
fpr savings banks in California, Connecticut and Vermont.
& Co.
Principal and Interest payable in United States Gold Coin at the Office of J. P. Morgan
without deduction for any British taxes, Present or Future.
COUPON BONDS IN DENOMINATIONS OF $100, $500 AND $1000, RECISTERABLE AS TO PRINCIPAL
COUPON NOTES IN DENOMINATIONS OF $100, $500 AND $1000.
The rfelative amounts pf ten-year Bonds and three-year Notes the aggregate note exceeding $250,000,000
in Principal Amount are to be determined by J. P. Morgan and Co. at the time of the closing of the Subscription
Books.
k These securities are to be convertible, at the option f the holder, at 100 and interest, into National War 5
Bonds, Fourth Series, at 100 and interest, Sterling exchange being computed for the purpose of conversion at
the fixed rate of $4.30 to the pound. Such National War Bonds are payable in Sterling at maturity, Feb. 1, 1929,
at 105 and are" more, fully described below. Conversion of the 10-year Bonds may be made at any time prior
to February 1, 1929. Conversion of three-year Notes may be made at any time prior to November 1, 1922. Notice
to be given prior to September X, 1922, of conversions to Le made on or after that date.
Upon such conversion the converting Bondholder or Noteholder will be entitled to receive 232 12s 8d. :
Principal amount of such National War Bonds for each $1000 Principal amount of ten-year Bonds or three
year Notes surrendered. Details of conversion arangemenls and provision for handling, fractions will be an
nounced by J. P. Morgan & Co. in behalf of the British Treasury within the next few days, and will be kept
on file at their office. - .
The National War5 Bonds (Fourth Series) are payable in Sterling at 105 on February 1, 1929, at the
office of the Bank of England, London. They are now -actively traded in, on the London Stock Exchange, and
are quoted approximately at 98 Bid, Offered at 98, at which price they .yield, if held to maturity, about
5.70. The following table shows the amounts which a holder of bonds or notes of this issue would realize in dol
lars, assuming that such National War 5 Bonds were sold in the London Market at 100, or were paid at matur
ity at 105, and the proceeds converted into dollars at varying rates of exchange, amounts realized iot each -$100
of Bonds or Notes.
Rate of exchange based on sale of National War Bonds" at 100 Based upon maturity value of 105.
Rate of
Exchange.
4.30
4.40
4.50
4.60
4.70
4.80
4.8665 (Parity)
Amount Realized
Based on Sales. Based en Maturity.
100 , 105- A
102.34 107.46
104.67 109.90
106.99 112.43
109.32 114.79
111.64 117.22
113.19 118.85
We quote as follows from the published Prospectus descriptive of the National War 5 Bonds (Fourth
Series), payable February 1, 1929, at 105:
"Bonds of this issue, and the interest payable from time to time in respect thereof will be exempt from all
British taxation, Present or Future; so long as it is shown in the manner directed by the Treasury, that they
are in the beneficial ownership of a person who is neither domiciled nor ordinarily resident in the Ignited King
dom of Great Britain and Ireland.
This offering is made subject to the approval by our Counsel of Necessary Formalities.
WE OFFER THE ABOVE OBLIGATIONS FOR SUBSCRIPTION AS FOLLOWS:
Ten-year Bonds at 96 and Interest, yielding over 6.
Three-year Notes at 98 and interest, yielding about 6 4.
Subscription Books are now' open at the office of J. P. Morgan & Co., and will be closed in their dis
cretion. THE RIGHT IS RESERVED TO REJECT ANY AND ALL APPLICATIONS, AND ALSO, IN ANY
EVENT, TO AWARD A SMALLER AMOUNT THAN APPLIED FOR.
Amounts due on allotments will be payable at the office of J; P. Morgan & Co., in New York. Funds to
their order and the date of payment (on or about November 1, 1919) will be stated in the notices of alldtment.
Temporary obligations of the Government, or trust receipts of J. P. Morgan & Co., will be delivered pending
the engraving .of the definite obligations.v.r'.-
FIRST NATIONAL BANK, New York.
BANkERS TRUST COMPANY.
': 3. P. MORGAN & CO.
THE NATIONAL CITY COMPANY, New York.
GUARANTY TRUST CO. OF NEW YORK.
THE CHASE NATIONAL BANK.
NATIONAL BANK OF COMMERCE IN NEW YORK
THE LIBERTY NATIONAL BANK. THE EQUITABLE TRUST CO. OF NEW YORK.
CENTRAL UNION TRUST COMPANY OF NEW YORK. THE FARMERS LOAN AND TRUST COMPANY.
HARRIS TRUST AND SAVINGS BANK, Chicago.
WM. A. READ & CO. BROWN BROTHERS & CO. LAZARD FRERES.
KIDDER-PEABODY & CO. J. W. SELIGMAN & CO. ' LEE HIGCINSQN e CO.
' HALSEY, STUART & CO.
KISSEL KINN1CUT & CO. - - . . WHITE, WELLS & CO.
' CONTINENTAL AND COMMERCIAL TRUST AND SAVINGS BANK, Chicago. , ;
CENTRAL TRUST COMPANY OF ILLINOIS, Chicago. - FIRST TRUST AND SAVINGS BANK, Chicago.
ILLINOIS TRUST AND SAVINGS BANK, Chicago. . -THE
FIRST NATIONAL BANK OF BOSTON. V , THE NATIONAL SHAWMUT BANK OF BOSTON.
OLD COLONY TRUST COMPANY, Boston. . , ' ' . y
FIRST NATIONAL BANK IN ST. LOUIS. . UNION TRUST COMPANY OF PITTSBURG.
FIRST NATIONAL BANK, Cleveland. " FIRST NATIONAL BANK, Cincinnati.
FIRST AND OLD DETROIT NATIONAL BANK, Detroit. THE ANGLO AND LONDON-PARIS NATIONAL BANK,
- v ; , ;-'-''- " " l , San Francisco
' 1 WHITNEY-CENTRAL TRUST AND SAVINGS BANK, New Orleani. ; " c ; .
JNew ork, October 23, 1919.. . r , - ' V ' V
.N.
entertained, however, that the organisa- ( , Uorris Bros. Get Bond Issue
tlon may be so formed that It will coo- The Morris Brothers -were the suo
sUtute a real board for the conaidcra cessful bidders for the recent Issue of
Uoa and adjustment of differences be- I10QJ0O0 worth of Baker county road
tween these two factors of constructive bonds. Twelve firms presented' bids and
force capital and Jabor." . th Kt ,-.,!, , ff..rt ht nf th
LIBERTY BOND SALES
JiJert5r bMHb N,w York H at the follonrlnc prleca:
5w ii'" ' 10.70 S100.TS 9100.80
SIJrLiV . 85.80 ss.so es.ao
WAV 8- 3o
Vu, Ik! 9388
VICUM7 4t i ....... . . fift nniii
victor 88a8
83.S8
95.0
3.44
SS.24
9.i8
99.44
Clow
ioo.to :
93.20
98:40
93.20
es.4s
95.8
9S.4S
99.60
99.80
Cloac
, 910A.T2
9.l
9S.S9
98.S8
9S.T0
' 95.84
98.6A
99.80
99.60
buying firm of $788.15. Ralph P. Moore
represented Morris Bros. ' '
PACinC COAST BAVK STATEMENT
rVue and " ' - i : -'I
; ""- " yCUuian."' 1 K
'S-y : M This Wk. ... Twit Ato. '
Itosdty .U$ .08.149.TO 7,526.184.89
..',' Taeoma Btank hi' "
Clrin Mon0j 8 J.1S6.801.6T
Balaoeas Mondtj .......... . 399,644.02'
yi':'-.' -S.',.. fsekans Bank .
Clwriaas Mondsy 9 2.T9S.8R4.00
BalaiKc MmkUjt, .......... . S. 118.442. 00
" Statue tank , -
CWrinft Monday $ .830.348.90
BkUaeci Moodmjr -1,880.988.00
an Franclwe Banki
Clwrlns Monday 939.287.294:90
Let ftftttltt Bankt
CUtrins Mondy 610.B97.46T.OO
Gwireinnieinift
Right now international conditions en
able the investor to buy GOVERNMENT
BONDS at prices which will net much
higher rates of interest than in normal
times.
This is due to a number of existing condi
tions, but chiefly because an inflated pros
perity has compelled interest rates for
money to increase. In other words, if a
dollar has but a fifty-cent value when it
comes to its purchasing power, then the in
terest rate on that dollar goes up as its
value decreases. Consequently, Govern
ment Bonds now bring from 34 to 6i
interest, whereas in normal times they are
eagerly absorbed on a 2i to 3 basis.
Government Bonds have behind them all
the taxable resources of the respective
country issuing the bonds. Every farm,
mine, home, industry and business enter
prise; eyery piece of taxable property, all
the revenue derived from any and all
sources is behind Government Bonds is
pledged to pay both interest and principal
as they become due.
For over a quarter century we have devoted our
selves to the bond business, handling countless issues
of both Government and Municipal bonds. During
this entire period not a single one of these bonds has
ever defaulted in the payment of either interest or
principal. For this reason we know them to be the
world's safest investments.
Ttiere are two things a man can't dodge death
and taxes.
Government Bonds are paid by taxation. They
are as safe as the country itself which issues the
bonds. . -
The full faith and credit the whole economic
life of a nation is back of Government Bonds. The
indomitable spirit of a people, "united by patriotic
and sentimental devotiona devotion which meets
either life or death with the conviction that national
honor is personal honor majces Government Bonds ,
as secure as the spirit of national pride is undestroy
able. . ' '
Now is the time to invest your money in Govern
ment Bonds the outstanding and matchless invest
ment securities.
We are participants in the Morgan syndicates.
o
Inc.
MORRIS BROTHERS,
The Premier Municipal Bond House . t
, Million Dollars s k.' '."'
MORRIS BUILDING, 309-H SUrk Street, Betvreen Fifth and Sixth
Phone: Broadway 2151. ; PORTLAND, OREGON. - Phone Broadway 2151. t
r4