G
(" T 7 -f
1 AL, iOrTLA:D, .
PORTLAIJD MAKES Business, the Country Over
PLACE FOR ITSELF Again oiiSolidFoundation,
I welvemonthourvey Dhows
IN FINANCE REALM
Securities Market' Here Gives
Impetus to Development of
Investment Banking Business
Portland 'has become : one of the
greatest financial center of ths coun
try and fortunately for the Well being
of the community the temperament of
Its Investing: public lean strongly
toward conservatism. x Securities which
By J. C; Kokle
BpwUI Comapcmdcat of Th Journal ,
(Goprrisfat. J22. by Tb Journal)
Tfew York. Dee. SO. The year of 122
ha seen the unscrambling of virtually A
every, great Industry in the united
States. . .Business, . wnicn iur - umo
rested on the scaffolding: and false
work of abnormal and sub-normal con
ditions; again is on a sound, solid and
permanent foundation. ; .
Ho boom far In- prospect. There are
no Indications of frenzied price move
ments. Competition will be keen ana
profit martins will not be great. But
there is every utoicauon zrom. present
conditions that business activity will
find a ready sale in this territory are
for the most part of a good class and I continue to Increase and the level of ln
Drodnetive of thrift and conservation 1 due trial and commercial prosperity will
of . savings. The blue aky law has continue to rise at least for the next six
been effective, in keeping out Of Ore-1 months. -
atm a vast Quantity or . wortniess
stocks i which otherwise would , be of
fered on the -local market, and another
Important factor In preserving: the In
tegrity of the local securities market
has been the .educational work .carried
on by the investment bankers.
- No startling or unusual situation de
veloped tn the bond business during
jszz. entl" ' T nS depression and deflation, extending- to
bond price began ,ln February the belnnlnr of thU rear represent
New standard of comparison have
been adopted. Merchants, manufactur
ers, farmers and business men in every
line have realized at last that neither
the pre-war days of , 1914, the flurried
production of the war period, the hectic
activity and tremendous profits- of the
years immediately after the armistice
nor the dark outlook of the years of
'continued throughout the spring and
mnmer, reaching its high, point about
the middle of ' September. A general
slump in prices set In about September
15 and continued wunout any general
the beginning of this-- year represent
any longer the .normal level of buai-
This country, right now is sxperlenc-
slgn of recovery until the middle of I lng a greater prosperity than its citl-
Xovemberi " Since November - 15 ' the I sens generally realise. The pendulum
general tone of the market nas i of business is hovering at or near- that
strengthened. Prices have not. at-J new normal tnark which this year's
tained the nigh point reached 1 in oep- I progress has established. -.That pendu
t ember, bnt the recovery has been I lmn la never still. Careful examination
marked and indications- are . that the I of conditions in .every section 'Of the
sharp recession of the early tan was i country indicates thar ; the upward
merely a temporary , decline. In. the I swing of prices and production has not
general upward trend of . bond prices I been completed. Its momentum' bids
and the lowering of Interest rates on j far to carry it on for. another eix
long time financing.
BE1DT SLA-RKET
" rurin he first months of the year
approximately $4,000,000 of Oregon
county bonds were sold to Portland
dealers and distributed for the most
nert to Investors in tne worm west.
Tbe fact that, with lower interest
rates, a large proportion of Oregon
months at least, ' and perhaps longer,
Any swing back probably will be at the
same steady pace, as the advance and
will be confined within tlie, same well
regulated limits- .
FACTORS 15 IMPEOTEMEWT
Three great factors have marked the
difference between, the depression of
1921 and the prosperity of 1922. They
county bonds, school district bonds. I are volume cf production and sales,
and the securities or smaiier muniM- increase ij, the buying power of the na-
pauues wrougnQui wc and management. When the year
to una a marKM m .uis uiwooh
in niurulne feature of the year's
activity. The situation compares- fa
vorably with that of a few years ago,
whn most ol tnese securities were
purchased "for easte'rn accounts.
There seems to be a gradual realiza
Hon on the nart of local investors
that our own municipals are a splen
did Investment, even at a comparative
ly low interest return. The majority
of the city of . Portland issues, with
ta nntntion of imDrovement bonds,
tin -Mka a. market in the 'East and
Middle West and this also is true of
rtMo-nn stata hizhwav bonds. '
"saie of soldiers' bonus bonds, BASIC, CTBHSTMES
imMtnl lK; t Sia.O-JO.UVU. WM "e I , . . J v
largest financing operation undertaken year great bjU!ic indu8trie8 or u,.
opened scarcely an industry in the
country was operating on a normal ca
pacity basis. Many plants were closed
entirely. Many concerns had written off
or absorbed high priced inventories but
others still had goods which they could
not move, clogging their advance.
Demand, however, began to Improve
materially in the second quarter of the
year. Merchants either wrote off their
losses or averaged out their high priced
inventories with the movement Of goods
obtained at cheaper prices. Buying;
was conservative but it was steady
ana. demand Increased proportionately.
kir tvi .ctatA rlurine the vast year. A
relatively small part of the issue was
SOIB IU UlCgUU imvcow.-,,
iiAcnritles eoine east for distribution.
Local investment bankers were instru
mental in organising syndicates con
sisting of their own firms and eastern
and California associates, so that the
state received good prices for the two
Issues of bonus Donas.
country are operating close to capacity
and the greater numberbava orders on
their books which will keep them busy
at an undiminished rate for months to
come.
The 'steel industry, one of the surest
indicators of Industrial activity - just
as wheat Is the agricultural Index, has
advanced -production from the extreme
ly low point at the opening of the year
to well above 80 per cent of capacity
for the .whole Industry. Individual
units have attained even higher rates
of output . and for some months - have
been turning out products at or above
100 per cent of. normal, .j. : j, v-i..,.-
TTHEMPLOTMEWT DECREASES
Unemployment was a- pressing prob
lem when 192Z opened. .States, muni
cipalities and social -and charitable or
ganisations - were asked to cooperate
with the federal government in meet
ing It. Today, unemployment . prac
tically has disappeared.- .There -is a
Job' for every man who wants one and
a score of employers to beg him to take
It. So great has been the demand for
labor; both, skilled and unskilled, that
Industries are still raiding each other
for men, and scores of enterprises are
hampered . In their progress by inabil
ity to obtain the workers they need.
. Wage: advances were an .Inevitable
consequence of these conditions. . The
United States Steel company set the
pace for the industrial, world by an ad
vance averaging 20 per cent. This ex
ample was followed In "hundreds of
other Industries. In the bunding trades,
skilled artisans have been able al
most to name "their own terms. Pay
rolls Jumped forward to steps of mil
lions monthly and buying: power was
thus Increased far beyond any expecta
tion thta existed at the opening of
the year. .. v.; v -' ' -; j
Burrsra powek iucreasku
This increase In the volume of money
available for Individual purchases "was
not confined to wasre earners. In
comes of investment holders were In
creased not only by the general bet-
rmMtt in business conditions, but also
by the -return to a dividend basis of
companies , which had reduced or sus-
TwndMi dividend distributions, ana oy
increased . payments by others, which
had been swept forward on the crest
of the "business tide. .
A3T-AGGBESSIVE WEAPOK:
Advertising, espeisU newspaper
advertising, has been an aggressive
iuLi in the hands of the merchants.
Estimates compiled today indicate that
th volume of advertising this year
that of anv Drevious year in
history and surpassed the volume of
1S20, the previous record-breaking pe
rinA kv between 12 and 20 per cent.
Moreover, advertising this year has
been free from the tain that it was
used ss a biding place for business
nrofits rather than asa developer of
sales volume. t
BUILDING EHOBJBOtJS
It becomes Increasingly evident t
the close of the year that building con
t ruction was the nillar- which upheld
th atracture of business while 'the
new girders of other Industries were
Mnr forsred and swung into place.
The total value of new- construction in
1922 has been well over ,utu.uw,yvu.
The scope of operations was 40 per cent
greater than In 1921, and o per cent
above the totals lorMJM, wnicn naa
been the record year up; to tnis time.
good market-also was found hers for
bonds of the . $25,000,000 Swift Co.
Mnnnrmn of nreon irrigation issue and the $16.000,000 . Cudahay
d'strlct bonds have been sold during Packing, company issue.
the year, most of them being distrib
uted to Pacific coast investors. -General
recognition among Pacific coast ;
iotnn of the nrotectlve features i
h rtmn irrieatlon district law
k h.cn i itroiu factor in estab-
An increasing! market for mortgage
bonds, secured either- by high class city
property or try Improved and producing
farm lands, has been developed by local
dealers during the year. Sale of $300,-
000. of J. K. . Gill company 7 per. cent
liShinK already market for bonds off bonds was accomplished : in. less than
Mahararter - ' - two days and an excellent secondary
. 1 market established for the bonds. A
juaiu rwa number of good first mortgage farm
; A-great deal of effective work nas Joang have; been distributed to lo-
been accompusnea oy me sw " . I cal investors..
ittiitiM nf this territory in tneir jumori n-v, Tno.man. s.vw miHaii
financing and' the preferred tocks of 3ie8ervmg of credit for its successful
these companies have been distributed ef fort ln maintaining a high standard
annir thousands of Oregon investors. . ,n ni..iitv .aonri.
It Is highly desirable that the people j tlea hAaaa to-the ; Portland market
who are served by tnese rou.u anJ m jucatin- pubUo along lines
Should have financial interest in mem i o coervative investment. The Port-
and the readiness wnn wmi lal' land association is cooperating with
mounts of these issues have been an- tne PacLfic Northwest group of invest
aorbed by local investors lends a whole- meIJt bankers in an effort to secure bet
some tone to the investment market. ter state legislation governing issues
Diversity of investment is an import- of jocai gecunues and In maintaining
sjit factor m uve eeiaoHBiiiucni. vi
well balanced and stable securities mar.
v rviirinar the nast year Portland in
vestment bankers have been included in
a. number of important national syn
dicates. One of the most Important
kin nt nation-wide financing was the
100,000,000 loan of the Dominion of
Canada and practically every invest
ment banking house in Portland partic
ipated in the distribution of this issue.
Financing long time credits of nations
to whom we propose to sell our surplus
products is highly Important,: In the
establishment of permanent markets.
Oregon has taken her place in the
world's commerce, and local investors
are not overlooking the opportunities
afforded by well selected foreign loans
to provide a hroaaer marnet ior agri
cultural and Industrial products. King
dom of Denmark 6s, Chile 7s, Depart-.,
ment of the Seine 7s, Paris-t,yone-M edi-
terraneas 7s and two new loans to Bra-
sil are among the foreign issues which
found favor with Portland Investors
' durinjr the year. -
A wide-variety of nigh" grade securi-
ties command a market in Portland and
during the year local dealers have dis
tributed txmda of the Cleveland union
Termlnacompany 7s, Los Angeles Gas
A Electric 5 a. Kansas City -Pqfver &
IJght 6a. Pacific Telephone & Telegraph
company 5s, Canadian Pacific deben
ture 4s, Sinclair Oil company 7s. A
high; ethical standards among security
dealers. r'- t -
During the past year The "Journal
has enjoyed the opporttinity which the
broadened -bond market has afforded
f providing lta readers with, an im
proved financial, news service. KVery
dav it nubUshes the bond transactions
in the New Tork market and business
news from all parte of the country. Its
service in this line, which is far supe
rior to that provided by any other
newsnaner in this field, has been
accorded V cordial recognition by its
readers. - ' " ' , V
IJIjrCWB TBOH 3BETIJB :
The coast forests of ' Douglas fir
and hemlock are nearly immune from
the attacks of bark beetles which are
so active In the pins' forests of Kast
em Oregon and Eastern "Washington.
The humid climate and the exceedingly
rapid growth, of the trees In the coast
forests may . be responsible for this
partial Immunity from bark beetle at
tacks, -v ; . -i.
1UI1S BACK-
FAITH BY LARGE
PORTLAND OUTLAY
Completion of Two' Units of
r Freight Terminal for, Joint
Usage," Marks New; Step.
' Railroads exhibited ' their faith In
Portland's future growth during 1923
when they completed the first units
of two freight terminal projects, im
proved and enlarged passenger ' ter
minal facilities, made preparations to
eliminate dangerous . grade crossings
through elevation of trackage on the
east aids And in-two cases announced
intentions to house . general -offices in
permanent quartera, -
-' The passing year has proved" the
permanency of the railroads entering
the city and U Oias brought about
period 1 of cooperation- unrivaled sines
the beginning of railroad construction
m tne.isortnwesi. - f'
joutt raEiGHT termisal
Most important of the construction
work undertaken by the railroads was
the completion; ol the first unit of the
Guild : lake freight terminal . for point
usage by ail the railroad line.- This
work was carried along in .connection.
with the agreement reached between.
the Southern Pacific. Union Pacific,
Northern Pacific, Great Northern "and
Si P. , Se S. systems for Joint" usage
of passenger and freight terminals on
the- west aide. . '
a Since the first days of railroad con
struction there always has been .a
maintenance of separate terminals by
the northern lines and by tne union
Pacific and Southern Pacific systems.
Insistent public demand caused ' the
railroads to confer on joint terminal
usage with - the- result- that announce
ment . of ' plans , for. .faint . freight . and
joint passenger radii ties were an
The freight, terminal, was. .proposed
for the Guild lake section and . the
first unit was completed thhv year at
a total cost .of approximately $1,200,
000. Of this amount $700,000 was paid
for the land upon which the terminal
located. -.- v
tained In r exchanireSfor several par
cels of, land on th"eaat aide. This
building will provide permanent head
quarters for the S,. P 8. system of
fices in the future. ;:S4.i
"Announcement also -was made dur
ing the past month that the Union
Pacific planned to have a building as
permanent1 quarters for Its offices,
The- most important plaaa : for rail
road develonment ln Portland' for .the
coming years were announced by " the
Southern ; Pacifio company , onaer , a
$8,000,000 mrolect for eliminating the
numerous street - crossings made by
the main line Of the company in enter
ing the city.
Officials .", of v the Southern Pacific
completed the purchase - of property
valued at approximately - $2,000,000 -to
enable ; them to carry out . the plan.
Arrangements will be made to elevate
double tracks on a one hair . or one
per cent grade from the Steel bridge
to Morrison street which tne com
pany plans to clear by IS feet, then
continuing on over Hawthorne avenue
at a clearance of 20 feet to I von street.
At Ivon street the right-of-wajr will
start at a point about 25 feet above
the present trackage of. the P. K. 1. &
P. New main line tracks ' will SKlrt
the bluff on the east side of the WU
lamette river for about three quarters
of a mils to a point between the foot
of Mitchell and Alice avenues. -At this
point a tunnel will be placed " under
Mllwaukie avenue, bringing the Uacks
out Just above the Brooklyn - shops.
Definite -time for startmg this, track
elevation "work has not been announced
by -the Southern Pacific but in view
of the 92,000,000 Investment mads in
land it is not believed that the com
pany "will .delay the project for Ions;.
Growing Importance of the "-South
ern Pacific lines tn Oretron likewise
caused the ' Southern. Pacific compSiy
to establish Its own commissary depart
ment in Portland to serve its dining
oars with -suppliea. A special purchas
ing' department was opened up.
"Officials . olK the Southern Pacific
company' anndunced, their future in
tention to -use Cr ties and lumber-al
most entirely In their railroad opera
tions upon - tbe -completion or a ere-
HUGE 'TOX MADE
. A. huge fill 'was made at the ter
minal site, dredges -of the Port of
Portland being used to nil the terminal
site' with -W00.000 yards of dirt. On
this fill a total of 10 miles of trackage
was laid. This amount of trackage pro
vided for the storage of 600 . freight
cars. r
- But this was only -one unit, for the
railroads announced ' that ultimately
enough trackage would be provided for
the storage, of 3500 cars. - Tb com
pleted terminal construction ' cost - is
estimated at $4,500,000. The additional
development work at the terminal will
follow . as needed.
An eight-stall roundhouse was -com
pleted at the terminal for. locomotive
storage," the ultimate plans on the
roundhouse being for a circular build
tnm containing 40 stall a.
Early last fail when ; the freight
storage yards were placed In order the
terminal company abandoned Its stor
age program at the Union . station
yards. .. Old freight yard buildings, in
eluding - the former terminal .. round
house, .were razed and tracks were - re
layed so that twp new passenger tracks
were placed m- operation. ;
SHEDS ABE BUIXT - .'."
Umbrella sheds - were erected along
the new tracks and an extension of the
nign snea leaning . rrom tne -passenger
station was made. The passenger ter
minal improvement cost approximately
$76,000v ' . : "
All of the terminal yard tracks were
relayed with heavier , steel. Eighty.
pound rails were . laid-to replace the
lighter- tracks ' previously used. The
relaying of tracks -cost about $100,000.
While this work-was being done the
Union : Pacific arid Southern Pacific
cooperated in the- Improvement of
east - side terminal facilities. - A total
of $40,000 was spent in. filling id mors
land, relaying old tracks, placing -new
tracks and providing cement drive
ways between ' the ' freight storage
tracks: -
During the year the S. P. S. rail
way company moved into the Cham
ber of Commerce building, which it ob-
Pacific
University
' ; Fonnded 1849
: i Forest GroTe, Oregon
A STANDARD COLLEGE
Strong Conservatory - of Music
A fine Uymnaaium
SUJDIER SESSION
; SEASIDE- 1
: Ore."" . t
July 16-August 24, 1923
COURSES OFFERED
- - - in " j "..--
Science Marine . Laboratory
Sociology and Economics
Education: '
Mnsie Piano. "Voice and .Tiolia
Physical Training, Coaching: and
Playground Work.
Ter Fartker Partleslarm Address
President W. C WEIR
Pacific University
- Forest Grove, Ore. .
Another Milestone in
Bersmann Achievement
We Are Moving Into Our New .Factory r .
. at 28th and Thurman Streets 4 ' ; ;
fTlHOUSANDS of lhen in the Northwest, who wear
' r I Bergmanii Outdoor Shoes and Bergmans Busi-
ness Shoes, will welcome the news that we are
re moving into Hnr big new daylight factory. It means
' that we can now produce more shoes and, If possible,
. better , shoes, and will be-able to fill orders more
. promptly. This business was- founded twenty years
-ago by Mr. Theo. Bergmann, who is still the active
head of the company
IS 4
n
Shoe Mfg. Co.
Portland
Oregon'
Vr Msthod ; Sowts St
V TIme and Money '
Chir 5-Koom Special
$3000
I Til i r
1 s : wm - - ii
"J . t .1. , M
We have many plans to select
Je-TfS...: S1850
'. Call and ass them or bring la
-yoar plana.- W, know vt,oo
save you -money. - -
V' TOT7 CA1 SEIECr EVERT
THXNQ FOR YOUR HOMES
'AT otm DtsPLJLr room:,
cmTRacncr
6:
osoting- plant costing In the helghbor
luwui sae ado. . Th new vurchasinK
department will handle supplies which
will be piacea tnrouga uu .sew
lng 'plant, f?. --tv:-. -fr :,;.;:- 'i
,. Permits were ootalned during; De
cember by the Southern "Pacific com
pany for the erection or two new nuua-
ings in the iirooKiy n snap group u
house the wneei ana xiange anops.
These two new buildings will cost
$8000. - ' 1
Wnrlr nt fha rttv-trafrlo eommitiee
Anrinr the latter nart of the Year
bronsrfat forth the surrestloa that a re
routing off electric railroad car pera-
tlon could ba aecompusnsa. . ,
F. H. Lewis
- &Co. X
Financial Agents
Mortgage Loans
262 Stark St.
, Railway Exchange
Building
1 Broadway 0671
iiiiniiiiF"r"""Mimnnn;
Mountain
View : ,
Sanitarium
$ sasBsaHMI
Mental
and
Nervous
Diseases
ALCOHOLICS AND
. ADDICTS
East Sixty-eighth
and Division Sts.
C
What Santa Saw
- Old Santa's left usfor a year I
His day has come an' gone. '
He left us brightness, an' good cheer
"And play to feast upon. - "
y . And with his reindeers coursing fast - . - '
He noted as he whizzed apast ,
The "Kedimades" how fast they grrew
, And' he chuckled low for wellhe knew T
THat another year'will swell the crop . "
And fRedimades'' wfll-feonvert each lot .V v
To a worthwhile hom" not just a placed- ! -U
. Hence the smile that wrinkled his good old face.
REDIMADE BUILDING COe
Cast 11th and Market (2 Blocks South of Hawthorne) ;
- - - mst Phone-East $114 v-..4'' -
Overbeck Cooke Co.
BROKERS
Members Chicago Board
of Trade : '
; V
Board cf Trade Bid?.,.
Portland
Pendleton, Ore
Walla Walla Wash.
Stoclcs, Bonds.
Grain and Cotton
, DIRECT PRIVATE WIRES
Logan Bryan
' NEW .YORE AfD CHICAGO
"4:
V.
DoItHow
Use oar;
Partial V
. Payment
Plan
Y de worked
vt5
rory
for ybui
. 'A circular ex
plaining ; our j. pari
iial payment plan .
f toill -, be stnt - on.'
J request ' - ? x- -.,
Why You Should
Buy Your Garage
From Us
First, yon save -money. Second, you eet a better earaeei one
that" is scientifically constructed.. Out experience and study of
this type of building enables us to remedy many ox tne common
fauls---the doors and front construction.- ..:
YOUR TIME IS MONEY SAVE IT
To buy a garage, front us takes but "phone calL To have one
built takes from one-half to -two days of your time, ordering
material obtaining 'mechanic, getting permit etc ; " ' -
ELIMINATE CHANCE
You can see before you buy 'what you are '
getting. ' No unpleasant ' surprise :- of more
than you thought it would cost. -
- Three regular stock styles '
; 10x16 $55.00 to $100.00 '
GENERAL BLDG CO.
293 Weidler; 1 Blk. South of Bdwy.
Phone East '8866 ? ' t
FnSCMANs CT.1TTI1 0
b; CAMP CO. .
: Quick SiEs?eG Company - r
General Real Estate 'Brokers
: ' ; We Specialize in Trades
. Anywhere in the .United States - ,
' t or Western Canada - ?
401-402 Couch Bids. Auto; 511-09
- . ' PORTLAND. OREGON " .
Oregon City Bridge
-v, Jt ..X;
T " Steel Arches 'protected against the "elementby
the use of
G UNITE ,
Something more than concrete. Inspect our I
work' on this bridge. ,
Lanning & Hoggan
602 WorcesterBuuding, Portland - :
. Johnson . Anderson
TAILORS -'
Elks' Building . Broadway at Stark