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.
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Advertisements ordered for less than one montli, In the Commercial&Fn) 400,27^
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
St. Loals...'. ,
Total. 5dajaKstlmated 1 day
W4ek BndUtt Janwirv 19.
Total full week..,.Balanoe CoudU ir*_. ...
Total week, all
* For the full week, bated on last T'^k'a returns.
TotalBxponiH and tMC.
Mat MkrnUKS. . ..AtaMNNM-
BondadOabtIntaraat tea.Intaiatt asemad ....Otliar iDdabtadnaaa
Ooat of road A tqalm.
rtar *nil4 Sqit. SO. ' Tmr $ntbi>lt StoimUt l.1888.
IWr. I 188S.
I 81JHTt 107.108
* 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.
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.
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
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-
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
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