january 19, 1889, vol. 48, no. 1230 - st. louis fed .8percentandthatfor18?6over11percentlessthanthat

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  • xtmmHUNT'S MERCHANTS' MAGAZINE,

    RffiPRESBNriN'G THE INDUSTRIAL AND COMMERCIAL INTERESTS OP THE UNITED STATES,

    VOL. 43. SATURDAY, JANUARY 19, 18S9. NO. 1,230.

    Terms of SnbseriptionPayable In Advance

    :

    For One Year (Inoludlnif postage) $10 20.For Six MontliR do. 6 10Kuropean 8ul>8oriptlon (inolnningpostase), 11 28Earopoaii Subscription SLt Months (Including postage)... 6 64Annual subsiiriptlon in London (includinz postage) 2 78.Six Mo8. do do do *1 88.

    These prices include the Investors' Sdpplbment, of 150 pagesissued once in two months, and furuisUed without extra charge tosubsorihera of the Chronicle.Bnbscnptlons will be continued until deflnitely ordered stopped. The

    pabllshers cannot be responsible for reiuittaucea unless made by draftsor Post Oitice monej orders.A file cover is furnished at 50 cents; postage on the same Is 18

    OentR. Volumes bound for subscribers at $1 00.Terms of Advertising.

    Advertisements ordered for less than one montli, In the Commercial&Fn) 400,27^

    -l-OO

    -H4-3

    The returns of exchanges for the five days, as received bytelegraph this evening, are in the aggregate 24 8 per centgreater than for the corresponding period of last year. Oarestimate for the full week ended January 19 indicates anincrease over a year ago of about 21 1 per cent. Messrs. R. O.Dun & Co. report the number of failures for the week endedto-night as 830 (284 in the United States and 46 in Canada),against 381 last week and 314 for the same lime a year ago.

    Stttmu by TtUfrapK

    New York..SaUtof Stock (alurM).,Boston

    Philadelpliia

    BaltimoreCtHcago

    St. Loals...'. ,

    NewOrleani

    Total. 5dajaKstlmated 1 day

    W4ek BndUtt Janwirv 19.

    1889.

    603.356.388

    (1,191.239)

    83,064,610

    60,0 10.338

    10.906,227

    53,450,000

    16,33(l,a3a

    11.178,683

    839,280,96:^

    156,216,101

    095,497.060

    181,417,328

    Total full week..,.Balanoe CoudU ir*_. ...

    Total week, all

    * For the full week, bated on last T'^k'a returns.

    1,1111.914 294

    18SS.

    470.776,489

    (697,993)

    68.738,678

    63.078,293

    10,304.146

    43.217.000

    13,716.230

    11,668.838

    678,497, 18a

    144.451,506

    P.OminMl*olUu>aoiu

    TotalBxponiH and tMC.

    Mat MkrnUKS. . ..AtaMNNM-

    8oek

    BondadOabtIntaraat tea.Intaiatt asemad ....Otliar iDdabtadnaaa

    Total dabt

    Ooat of road A tqalm.

    rtar *nil4 Sqit. SO. ' Tmr $ntbi>lt StoimUt l.1888.

    OI0.408

    s,oa,;8a

    aa,o;8

    4,Tia

    a^7tt

    9,4oi,aat

    .loaooo

    10,006,000

    Ino,

    f8B8,lSB

    lUaajM

    .8.080

    IWr. I 188S.

    *007.681

    ,9.804

    n,sio80,670

    S,088,Se

    8,877,888

    788,404

    ,ns,ooo

    1B,008.000

    I 81JHTt 107.108

    18ll,07

    10.488,088

    8000,818

    11,108,850

    B^440SB,OU1,S18

    8,888,880

    8,010,100

    808,710

    ,705,000

    15,008,000

    18,100

    881.580

    6,I0U

    Uk,807,74)

    88,041,080' 87.810.884

    1885.

    00,058

    1)4.801

    08,811

    8,088,488

    I.M0.134

    188,855

    8,758,000

    18,008,000

    11,711

    81,875

    *785J15

    io.oaB,aoi

    a7.tiO!i,aeo

    1884.

    400.SK5

    S,IO>.780

    87.4S0

    7V,:HH1

    11.Alt

    8.04 1.,W7

    .ftOJ.KVi

    478.488

    * Amount due UlMourl Kiuioa* A TeXM.) Metamount after aUowtng tor oortaln asaets.

    The Galveston Houston & Henderson has done aboutas well as it usually doesin fact a little better, thedeficiency to meet expenses being less than in either ofthe two years preceding, and amounting to only 10,302.The improvement has been brought about by a slightincrease in earnings luid a snuill decrease iu exjienses.We notice that the reduction in expenses is entirelyunder the head of maintenance of way, the transporta-tion cost and other departments showing an increase.The interest charge on this road is 5 jxir cent on2,000,000. In addition to the onlinary earnings thecompany has a largo income from track rentals.

    oALTaaroa roustok a iwkdkiuon.

    Barakift aMl BnmwM.Fmt AhK AnX. 80. Imr JSniiitt Btatm^tr 31.

    188B. 1887. iset. 188&. 1884.

    PawBM aaral^i....Italfht.

    80.8S8

    878,sin

    0.810

    18,0I7.4

    100.1.10

    t,00*.

    14,770

    11,7

    7.881

    70.108

    7,018

    iM418,448

    77,884

    U7,00ST.181

    8,.U,S80

    7S,TW

    ItoU10!.".; 78

    Bw-a,MlaeaUaMotti _

    7.1SI

    .?!

    Total 410,8M480,108

    407,087 401.081

    418,888 aoMK

    axpaaaaaaadtaaat....

    80.118

    Si.:v>4

    Jmtmtatt 4at.i,ao

    1.800,000

    8.000^000

    dat.a^.aM

    1,000,000

    a,i.(0

    >M06.000

    1M.408l^italdaM ,oso,on

    .08,047,S^ .UO.WS

    8.05,18S 8.000,1100

    Tttking the three roads together, there is a loss of overa million dollars in net, notwitiistaiidiug the reductionin expenses, and a loss of 1^ millions in gross earnings,the total not earnings of the three companies in thetwelve months ending September 30, 1888, beingf1,969,G4S, against ii!2,!)!t2,98G in the preceding twelvemonths, I3,l)lt!,808 in the calendar year 188(5, 13,411,-948 in 1885, and #3,211,702 in 1884, as the followingstatement will siiow.

    COMIllNKIl Ol-KRATIONS OF MISSOURI KANSAS A TEXAS, IMTRRNATIUMAL.t UKKAT .NOKTIIRRK . OAI.VKS'K>N HOUSTOM .t IIKNUER80N.

    I'nir finding Sffit. SO. rwr AidMf Dte4mbtr 81.1S88. 1887. 1880. 1886. 184.

    8.781.335

    7.881.087

    *11,808.848

    8,316,858

    10.TW.641

    .801,7SS

    8,815 887

    ,408^488

    f10.047.067

    7.48M8&Bzpanaa* and taxaa. . .

    .

    Nataarnlnita 1.8S8.048' S.80,8e8l 8,810,808 8,411,848 3.U 1,788

    Unfavorable though this result is, it does not differmaterially from what had been expected. All theSouthwestern roads have had a hard time of it. To theextent that the falling off was caused by lower rates andnot by larger milojige and a division of traffic ijmong anincreased number of competitors, some improvement isexpected now to occur with the new state of thingsinaugurated by the Presidents' agreement of the lirst ofJanuary. As bearing upon that point, we observe thatwith the exception of the International & Gt. Northern,,all the roads handled a greater tonnage in 1888 than in

    1887.

    THE COPPER SYNDICATE.The present position and future prospects of M.

    Secretan and his associates are somewhat uncertain. It

    is one of those problems where the unknown factors areTeiy large in number. But the matter has become of sowide importance it is worth while to set forth such facta

    as can be known with more or less accuracy.The company or socieU which has formed the basis of

    the syndicate has been in existence longer than most

    people suppose. It was originally established as a sort

    of combination of French copper manufacturers for

    purely manufacturing purposes, and was not unlike a

    trust in its objects, although organized in a different

    manner. As early as 1875, the copper manufacture ofPrauoe, at least so far as the large Government contracts

    .were concerned, seems to have been thoroughly consoli-

    dated under one organization. The credit of the ooucexnwas high, and at least two banks of Paris have been

    more or less actively connected with it. From the con-trol of copper manufacture to control of copjwr specula-

    j

    tion was but a step. In this process M. Secretan andhis associates acquired considerable interest in copper

    mines and large stocks of copper for trading, as distinct

    from manufacturing, purposes. One plan which waspursueil with great success was to make loug contractsfor copper, based on the London price of Chili bars;this being copper of a certain grade, not less, and of

    course usually not much more, than 96 per cent pure.Having secured these contracts the company went towork and artitioially depressed the price of copper in

    this form, which was cominu-atively easy to do, ae the

    amount of this product was relatively small. Some ofthe extremely low prices of recent years are traceable to

    these operations.

    About two years ago the metal reached its lowest

    point. New mines had been brought into operationwhich vastly increased the supply and were often able to

    put this supply on the market at very low rales. TheSpanish mines which had come largely into the control j|of the syndicate were not specially profitable under these

  • Januart 10, 18^9. THK CHRONICLR 83tormB. Only those concoriifl wliic^h Imd the very great-

    est nnttiriil advantages were still ablo to make a profit.

    But the low price of copper had had an important indirect

    effectit had increased the consumption in such amanner as to more tlian equal the increased production.

    M. Socretan ha

  • 84 THE CHRONICLE. [Voh. xLvin.TT ~ ,been done in many instances by sound and conservative

    banks), we see no reason why the syndicate should not

    maintain its position long enough to renew contracts to

    its own satisfaction. If, on the other hand, the loaning

    rate falls below 10c. , the position would become at once

    much more critical ; and should any break in the

    market occur to shake bankers' confidence in such loans

    altogether, it is hard to see how disaster could be avoided.

    It is true that the members of the copper syndicate are

    also large users of copper, but as the surplus production

    must continue to increase, and as they could not work

    up their present stocks except they were given time,

    the financial responsibilities involv