Full text of Commercial West : July 1, 1905, Vol. VII, No. 26
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W E S T E R N IN V E S T M E N T S , M A N U F A C T U R IN G , M IL L IN G A N D G R A IN .
THE SO U TH W EST.
T H E C E N T R A L -P A C IF IC W E S T .
VOL. VII
THE N O R TH W EST.
SATURDAY, JULY 1, 1905
No. 26
4
O F F IC E R S :
à
The
*
CAPITAL, ONE MILLION DOLLARS, SURPLUS, ONE MILLION DOLLARS
A . C. B a r t l e t t ,
C. L. H u tc h in so n ,
J. H a r l e y B r a d l e y ,
M a r v in H u gh itt ,
W il l ia m A. F u l l e r ,
M a r t in A. R ye r son ,
A l b e r t A. S pra gu e ,
S olomon A. S m ith ,
B yro n L. S m ith .
Rookery
BANKING,
SAVINGS,
FOREIGN,
F i s k & R obinson
AND
N
ew
York
Stock
Exchange
edar
S
treet
28 S tate S treet
NEW YORK
C H I C A G O
BOSTON
$ 150,000
Minneapolis Gas Light Go.
FIRST GENERAL MORTGAGE
GOLD BONDS
5’S
Dated Sept. 1, 1903, Due Feh. 1, 1930. Op
tional any interest day after 1914 at 105 and
interest.
The Minneapolis Gas Light Company is one
of the most successful public utility corpora
tions in the Northwest and the property is in
perfect physical condition; is successfully
managed and is worth an amount largely in
excess o f the total bonded indebtedness.
Price 102 and interest, yielding 4 % %
OFFICERS
JAMES B. FORGAN. President
DAVID R. FORGAN, Vice-President
E. K. BOISOT, Vice-Pres. and Mgr.
LOUIS BOISOT, Trust Officer
D. V. WEBSTER, Secretary
R. D. FORGAN. Treasurer
Bartlett, Frazier & Carrington
embers
o f
all
P
Pringle, Fitch & Rankin
r in c ip a l
Exchanges
Charles Hathaway & Co.
Dealers in
COMMERCIAL PAPER
C h a s . W . Fo l d s , - R e s id e n t P a r t n e r
2 0 5 La S alle S t r e e t , - - - C h ic a g o
N E W Y O R K O F F IC E
B O S T O N OFFIC E
“ Co
N
-
-
-
45 W ALL STREET
27 STATE STR EET
n t in e n t a l
a t io n a l
B
a n k
OF CHICAGO.
EVERSZ & COMPANY
BANKERS
THE M INNESOTA
LOAN & TRUST CO.
G R A I N , P R O V IS IO N S ,
STOCKS, BONDS
M
Interest allowed on Savings
accounts at the rate of three
per cent per annum.
Acts as Trustee, Guardian,
Registrar, Etc. Etc.
Estates Administered,
Special attention given to
investments.
OFFERED SUBJECT TO SALE
>•
MINNEAPOLIS
New York and Chicago Correspondence
FIRST NATIONAL BANK BUILDING
35 C
412 to 415 Chamber of Commerce
Private Wires Telephone M. 1568
SAVINGS
BANK
Investment Securities
embers
Chas. E. Lewis & Co.
AND
and other
C H IC A G O .
DEPARTMENTS.
TRUST
Government Bonds
M
TRUST
FIRST
Bankers
T
DIRECTORS:
B y r o n L. S m ith , - - President
F. L. H a n k e y , - Vice-President
S olom on A. S m ith , 2nd Vice-Pres.
T h om a s C. K in g , - - - Cashier
R o b e r t M c L eo d , - Asst. Cashier
G. J. M il l e r , - - Asst. Cashier
A r th u r H e u r t l e y , - Secretary
H. O. E d m u n ds , Asst. Secretary
H. H. R o c k w e l l , Asst. Secretary
E d w a r d C. J a r v is , - - Auditor
R ailro ad
Bonds
and other
New List on Application
Minneapolis, Minnesota
Solicits Accounts, Assuring Liberal Accommo
dations and Courteous Treatment.
A G e n e r a l F oreign B an kin g B usiness
T r a n sa c t e d .
Travelers’ Circular Letters of Credit issued
available in all parts of the World.
Safe Investments
220
Capital
$3,000,000
Surplus and Undivided Profits 1,400,000
Deposits
.
.
.
55,000,000
LA S A L L E S T R E E T
CHICAGO
John C. Black, President.
George M. Reynolds, Vice-Pres.
N. E. Barker, Vice-Pres.
Ira P. Bowen, Asst. Cash.
Benj. S. Mayer, Asst. Cash.
Wm. G. Schroder, Asst. Cash.
Herman Waldeck, Asst. Cash.
John McCarthy, Asst. Cash
The N atio n al P a rk B an k. of N ew Y o rk
ORGANIZED
C a p ita l $ 3 ,0 0 0 ,0 0 0 .0 0
S u r p lu s an d
1 B 56
P r o fits $ 7 ,3 2 4 ,6 7 7 .3 3
D e p o s its
O F F I C E R S
Richard Delafield, President
Stuyvesant Fish, Vice-President
Gilbert G. Thorne, Vice-Prest.
John C. McKeon, Vice-Prest.
John C. Van Cleaf, Vice-Prest.
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Federal Reserve Bank of St. Louis
Edward J. Baldwin, Cashier
W . O. Jones, Asst. Cashier
Fred’k O. Foxcroft, Asst. Cashier
W. A. Main, Asst. Cashier
Maurice H. Ewer, Asst. Cashier.
M ay 2 9 , 1905, $ 8 3 ,7 9 5 ,0 6 6 .9 6
D I R E C T O R S
Joseph T. Moore
Stuyvesant Fish
George S. Hart
Charles Scribner
Edward C. Hoyt
W. Rockhill Potts
August Belmont
Richard Delafield
Francis R. Appleton
John Jacob Astor
George F. Vietor
Cornelius Vanderbilt
Isaac Guggenheim
John E. Borne
Lewis Cass Ledyard
Gilbert G. Thorne
John C. McKeon
THE
2
COMMERCIAL
WEST
Saturday, Ju ly
i, 1905
The F IR S T N A TIO N A L B A N K ST„
1 000,000.00
Capital $ ,
Surplus and Profits $871,000.00
OFFICERS: H e n r y P. U p h a m , Pres. E. H. B a il e y , Vice-Pres. W m , A. M i l l e r , Cash. F, A. N ih n h a u se r , Asst. Cash. O. M. N e l s o n , Asst. Cash
DIRECTORS: H. P. Upham, James J. Hill, Howard Elliott, D. C. Shepard, H. E. Thompson, E. N. Saunders, Louis W . Hill, F. P. Shepard,
E. H. Cutler, Chas. W. Ames, E. H. Bailey, Theo. A. Schulze, Chas. W. Gordon, T. L. Schurmeier, W. A. Miller.
CO rents a Private Safe
for One Year, where
Storage Va ults for Silverware and
YOU A R E M A S T E R OF TH E SITU ATIO N
your Bonds, Securities and all Valuables are Absolutely Safe.
other Valuables.
GUA RAN TY SAFE D E P O S I T V A U L T S
U.
S.
IN T E R N A L
TRADE.
Statistics of
important internal
trade movements as received by the
Department of Commerce and Labor,
through its bureau of statistics, indi
cate that the grain receipts at leading
primary markets were not so heavy
during the month of M ay as they
were for a like month in the preced
ing year, nor was the total inbound
movement of all cereals at these m ar
kets for the first five months of the
current year so heavy as that of a
corresponding period in 1904, notwith
standing the present ye ar’s heavy in
crease in the movement of corn. On
the other hand, live stock receipts,
both for the month and for the year,
to and including M ay 31, show an ap
preciable increase over similar a r
rivals in 1904.
The total grain receipts at twelve
important interior primary markets
during M ay amounted to 27,016,565
bushels and present a decided de
crease, if compared with the preced
ing month’s movement or with that
of a similar month in 1904. Fo r the
first five months of the current year
grain arrivals at these markets a g
gregated
222,063,827
bushels,
an
amount
approximately
6,500,000
bushels less than that representing a
corresponding movement in 1904. Of
the different cereals received, wheat
amounted to 55,004,352 bushels; corn,
87,022,899 bushels; oats, 55,942,368
bushels; barley, 21,520,747 bushels,
and rye, 2,573,461 bushels.
Corre
sponding inbound movements during
a similar period in 1904 were 63,098,533 bushels of wheat, 78,019,351
bushels of corn, 60,742,604 bushels of
oats, 22,923,458 bushels of barley, and
3,733,644 bushels of rye. A s compared
with the 1904 grain arrivals, losses
were sustained at the markets of Cin
cinnati, Detroit, Duluth, Kansas City,
Louisville, Milwaukee, Minneapolis,
Peoria and St. Louis, while gains were
made at Chicago, Omaha and Toledo.
During the month of M ay the num
ber of live animals received at Chi
cago, Kansas City, Omaha, St. Louis
and St. Joseph amounted to 2,935,910
head, an amount approximately 400,000 head larger than corresponding
movements in either of the two pre
ceding years. Of the current month’s
receipts at these markets 584,898 head
were cattle, 69,380 head calves, 1,472,214 head hogs, 780,000 head sheep and
29,418 head horses and mules. Gains
were made in each one of the classes
specified by comparison with like
movements in 1903 and 1904.
The
number of cars required to handle the
inbound movement of live stock at
these five markets during the year to
taled 52,338, as against 46,974 cars in
1904 and 48,291 cars in T903. Fo r a
five-month period receipts of live
stock aggregated 14,365,565 head in
1905, as against 13,950,227 head in 1904
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Federal Reserve Bank of St. Louis
and 12,578,270 head in 1903. The cat
tle arriving during this period num
bered 2,841,695 head— calves, 216,493
head; hogs, 7,410,162 head; sheep, 3,714,889 head, and horses and mules,
182,326 head.
J A P A N ’S T R A D E IN W A R T I M E .
Evidence of the vitality of Japanese
trade during 1904, in spite of the
strain entailed on the nation by the
vigorous prosecution of the war, is
furnished by the report of the B rit
ish consul on the commerce of the
district of Kobe. Besides Kobe, the
district includes Osaka and six other
ports, and in them more than 50 per
cent of the import business of the
empire is handled. The outstanding
feature of the year, as the consul
points out, is that during a time of
belligerency Japan not only retained
sufficient command of the home seas
to preserve its foreign trade, but also
to allow it to expand, and attain the
highest level it has reached since the
opening of the country.
This record was achieved, too, de
spite the critical period of June and
July, when, owing to the uncertainty
about contraband law, shipping busi
ness seemed to threaten to come to a
complete standstill.
The total im
ports of Kobe and Osaka last year
amounted to £31,702,000, as against
£28,759,000 in 1903. The trade of the
other six ports is comparatively small,
but still amounts to £656,000. The
British Empire is by far the largest
individual participant in all this trade,
E ngland’s proportion being over 30
per cent. The United States ranks
next, but its share is relatively small,
and does not quite reach 1 1 per cent.
Germany figures for a very insignificane proportion, and France for even
less.
Siam’s First Foreign Loan.
The first Siamese loan ($5,000,000),
which was recently placed on the
London Stock Exchange, has aroused
wide interest among the financial and
exporting circles of Great Britain and
the continental countries. The Ger
man press calls attention to the im
portance of Siam as a market for
goods “ made in Germany,” and says
that “ although three-fifths of all the
foreign trade of Siam is carried by
German vessels, and although German
engineers have built some of the rail
roads in that country and are manag
ing the railway and postal depart
ments there, Siam ’s foreign trade is
chiefly with Great Britain and her
colonies (Hongkong, Singapore and
the East' Indies).”
A leading German financial journal
says:
Siam is a rich country and has an
intelligent population.
While it is
true that economically and commer
cially it has hitherto been principally
controlled by British and French in
fluence, it is equally true that the Ger
BASE
M E N T G U A R A N T Y B U IL D IN G
M IN N EA PO LIS
man element is well represented in
Siam and has for a long time contrib
uted to its culture.
Siam is a rising state. The great
success which attended the issue of
its first foreign loan will induce it to
place additional loans for the purpose
of developing its resources, the con
struction of additional railroads, and
other internal improvements.
In view of this the question comes
up whether the German banks should
lend their aid to this rising state,
whose finances are in the best pos
sible condition.
DUTCH
F O R E IG N
M ENTS.
IN V E S T
The people of the Netherlands are
thrifty and economical, excellent mer
chants, and in proportion to popula
tion, their nation is one of the richest
in the world. T h e y are cosmopolitan
and large-minded in the investment
of their capital. T h e y were the first
and most extensive foreign buyers of
United States bonds of 1861-65, but
did not touch the Confederate issues.
According to estimates of official sta
tistical and financial sources, Dutch
capital to the amount of $544,500,000
is invested in American bonds and
shares, and $400,000,000 in Russian
bonds and shares. V e ry large sums of
Dutch capital are invested in M exi
can government bonds and in bonds
arid shares of Mexican railroad and
industrial companies; also in the g o v
ernment and railroad bonds of A u s
tria-Hungary, Portugal and numerous
other countries, and a large amount is
working profitably in the Dutch In
dian colonies in sugar, tobacco and
rubber plantations, the mining of tin
and other metals, petroleum wells,
etc. A financial book of reference
places the capital of all Dutch joint
stock companies at $744,164,000, but
this does not embrace the numerous
Dutch companies which have their
headquarters in the colonies and in
foreign countries. The Netherlands,
possessing neither coal nor iron, is not
a manufacturing country of note, and
in this respect is even surpassed by
little Switzerland, also having neither
coal nor iron. The Dutch are full of
the commercial spirit and have a
large merchant marine. The rural inhaibtants are given to dairying, cattle
raising and horticulture, in which
branches they excel.
The Commonwealth Electric Com
pany, Chicago, has sold to a banking
syndicate $1,000,000 of the company’s
first mortgage 5 per cent bonds. The
price has not been made public, but
is understood to have been well above
par. The last sale of Commonwealth
bonds on the Chicago Stock Exchange
was at 107.
The receipts of the railways in Ger
many in April reached $38,715,000, or
$2,250,000 more than a year ago.
Saturday, Ju ly
r, 1905
THE
COMMERCIAL
WEST
3
The Commercial National Bank
O R
CAPITAL,
C H IC A G O .
E S T A B L IS H E D 1 8 6 4 .
Statem e n t a t close o f busin ess J a n u a ry 1 1 , 1 9 0 5
$2,000,000
Surplus and Profits,
$1,700,000
L IA B IL IT IE S .
RESOU RCES.
L oa n s an d d is co u n ts ...................................................$21,499,012.29
O v erdrafts ....................................................................
„£’ 999'22
R eal e s t a t e ...................................................................
U. S. bon ds a t p a r ......................................................
500,000.00
O ther bon ds and s t o c k s ............................................ 1,918,048.00
D u e fr o m U. S. tre a su re r........................................
75,000.00
Cash an d due fr o m oth er b a n k s .......................... 13,161,420.28
C apital stock paid in ................................................ $2,000,000.00
Surplus fu nd ............................................................... 1’ 299’ 929‘ 99
U nd ivided profits ......................................................
r9n’ 9«9‘ n9
N ational bank n otes o u tsta n d in g .......................
5S9’922 „9
D ep osits ......................................................................... 33,000,925.23
T o t a l ..........................................................................$37,232,945.92
T ota l ......................................................................... $37,232,945.92
O F F IC E R S
Harvey C. Vernon, Asst. Cashier
James H. Eckels, President
David Vernon, Third Vice-President
H. E. Smith, Asst. Cashier and Auditor
Joseph T. Talbert, Vice-President
Nathaniel R. Losch, Cashier
Wm.
T. Bruckner, Asst. Cashier
Ralph Van Vechten, Second Vice-President
George B. Smith, Asst. Cashier
F O R E IG N D E P A R T M E N T . L. Schuetz, Assistant Manager
D IR E C T O R S
James H. Eckels
FranklinJMacVeagh
Robert T. Lincoln
Paul Morton
Charles F. Spalding
Joseph T. Talbert
William J. Chalmers
E. H. Gary
Darius Miller
W IL L
THE CANADIAN BANK
OF COMMERCE
Head Office, TORONTO, C A N A D A .
Over 100 branches in Canada and the United
States, including:
New York, San Francisco and Portland.
Seattle Branch, : : G. V. H olt , Manager.
A. Chilborg, President
A. H. Soelberg, Vice-Pre*i
J. F. Lane, Cashier
Geo. R. Fisher, Asst. Cashier
The Scandinavian American Bank
C a p ita l P a id Up
- $ 300,000
S u rp lu s a nd P ro fits - i7 o ,o o o
D e p o sits 3 ,2 5 o ,o o o
W A S H IN G T O N
SEATTLE
WC
HAVE
AN
O FFIC E
AT
BALLARD
R ogers Lum ber
Company
Retail Lumber Yards in
Minnesota, No. Dakota
and Nebraska.
GENERAL OFFICE
717-721 ANDRUS
BUILDING
MINNEAPOLIS
t
G . H. R O G E R S
Sec. & Treas.
A. R. R O G E R S
President
W IL L IA M S O N & M ERCHANT
ATTORNEYS AT LAW
Patent and Trade Mark Causes. Solicitors of
United States and Foreign Patents
?
Main Office: 929-935 Guaranty Building
MINNEAPOLIS, MINN.
Branch Office: Room 52 McGill Bldg., Washington, D. C.
Crookston
Lum ber C o .
BEMIDJI, MINN.
M IL L S A T
B E M ID JI, ST. H IL A IR E ,
CROO KSTON
Shipments on
Northern Pacific and
Great Northern Railways
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Federal Reserve Bank of St. Louis
JAPAN
W IT H D R A W
M ONEY?
Japan has nearly $80,000,000 stand
ing to her credit on the books of New
Y o r k banks and trust companies to
day. When the proceeds 6f the $ 75,000,000 4^2 per cent loan were col
lected Ja pa n ’s agents announced that
a large portion of the $65,000,000 de
rived from the sale would be used
here for war expenditures. This sum,
with a balance left over from the two
previous loans,
was _ accordingly
placed to Ja p a n ’s credit in twenty
banks and trust companies,
and
loaned by them to Wall street bor
rowers.
The problem is, therefore, how will
Japan use the fund if she lias no war
expenditures to make? She might re
mit it to England, for the purpose of
strengthening her London balances,
or she might call it home in the form
of gold shipped from San Francisco,
as was done last December, when $4,134,319 was exported direct. A bank
er connected with J a p a n ’s syndicates,
who is familiar with the disposition
made of the large sums paid in by
American subscribers to the three
loans, admitted this week that Japan
could he deoended upon to protect
this market from such disturbance as
would result from the sudden with
drawal of any large sum. This view
was shared by others in the syndi
cate, who nointed out that if Japan re
ceived a large indemnity she might
not withdraw her funds here for
months to come, and that in any event
the government would readjust its
foreign balances with the least incon
venience to the markets that had fur
nished the capital necessary to prose
cute the war. It was also suggested
that in its efforts to strengthen _ its
credit Japan might find it expedient
to purchase its own bonds, if it could
secure the first and second 6s, which
are redeemable in 1907, below par.—
N ew Y o r k Evening Post.
1. LA M B Pres., Clinton, la.
C. R. LA MB, V.-P re s., Minne ap olis, Mi nn.
G. E. L A M B , Sec y.. C linton, la.
P. DAVIS, T r e s . & Mgr., L e a v e n w o rt h , W h .
Lamb-Davis
Lumber
Co.
MANUFACTURERS OF
WESTERN
W HITE PINE
LUMBER
National W ealth of Japan.
The Austrian Monthlv Magazine
for the Orient has published a state
ment of the national wealth of Japan,
based upon reports of Austrian busi
ness men of Tokyo, in which the total
amount of money invested in 1904 by
corporations engaged in commerce,
industrv, agriculture, banking, mininf, navigation and railroads, is placed
at about $420,000,000. The banks had
about $343,000,000 in deposits, and
their total capital in 1002 amounted to
about $557,000,000. The public debt
in 1902 was about $272,000,000.
The Twin City Rapid Transit Com
pany has applied to the N ew Y o r k
Stock E xchange to list $1,000,000 ad
ditional common stock.
DEALERS IN ALL KINDS OF
BUILDING MATERIAL
Leavenworth - Wash.
THE
4
COMMERCIAL
WEST
Saturday, Ju l y
F IR S T N A T IO N A L B A N K
United States
MILWAUKEE, WIS.
i,
1905
Depositary
Capita1, $I’500’000
OFFICERS: Fred. Vogel, Jr., Pres.: J. Van Dyke, Jr., First Viee-Pres.; Wm. Bigelow, Vice-Pres.; Frank J. Kipp, Cashier; Thos. E. Camp, Ass’tCashier
DIRECTORS: E. Mariner, C. F. Pfister, Geo. P. Miller, Fred T. Goll, Wm. Bigelow, F. Vogel, Jr., J. H. VanDyke, Jr., John I. Beggs.
GEORGE GIRLING & CO.
Before Buying'or Selling
TELEPHONE or ELECTRIC LIGHT
STOCKS OR BONDS
ConsultJUs.
City, 3778
440 Temple Court
Phones j Twin
N. W., Main 2875 L 1
Minneapolis
TELEPHONE
C O N S T R U C T IO N .
Edgemont, S. D.— The Edgemont
telephone company has been organ
ized.
Shell Lake, Wis.—The Wisconsin
Telephone Company’s lines here will
be rebuilt.
Roseau, Minn.— R. J. McMahan will
extend his line from here to Interna
tional Falls.
Comstock, Minn.—A new line is be
ing built by the Neighbor State Com
pany east, of this place.
Staples, Minn.— The Cass County
Mutual Telephone Company will ex
tend a line to this place.
Hunter, N. D.—The Hunter Tele
phone Company’s stock has been in
creased from $5,000 to $15,000.
Valley City, N. D.—A line is to be
run from Valley City to Kathryn,
connecting with a line from Nome to
Litchville.
Hunter, N. D.— The telephone com
pany’s stock has been increased from
$5,000 to $15,000 and new officers have
been elected.
Lounsbery, Mont.—Articles of in
corporation have been filed by the
Lounsberry-Bradley Telephone Com
pany, capital $2,600; incorporators,
E. T. Megna, F. J. Faehn, L a rs Senson and others.
Ray, N. D.—The Great Northern
Telephone Company have begun the
construction of a line to run via
Springbrook and Wheelock.
The
same company are extending their
line from Mondak to Culbertson.
Excelsior, Minn.—The farmers on
the upper lake have formed a new
telephone company to be known as
the Lakeside Rural Telephone Com
pany, and a line will be built which
will complete direct communication
with the Twin City.
International Falls, Minn.—Articles
of incorporation have been filed by
the International Telephone Com
pany, capital $50,000; incorporators,
E. W. Backus, W. F. Brooks, R. L.
Herr, C. J. Rockwood, Minneapolis,
and H. V. Winchell, Butte, Mont.
Minneiska, Minn.—Articles of in
corporation have been filed by the
Valley Telephone Company, capital
$5,000; incorporators, John Murray,
Fred Zimmerman, Mt. Vernon twp;
John Peshon, M. A. Callahan, Frank
Plartman, Minneiska; Peter Nepper,
township of Minneiska; Nick Severn,
Weaver.
E L E C T R IC R A I L W A Y S .
Oskaloosa, la.— One hundred and
thirty thousand dollars has been rais
ed to build a car line here.
Billings, Mont.— Y egen Brothers
have taken it upon themselves to pro
vide this place with an electric line.
Minneapolis, Minn.— Gen. Robert
Shaw Oliver has inspected the pro
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Federal Reserve Bank of St. Louis
posed route of the Minnehaha-Snelling car route.
Brookings, S. D.—A plan is on
foot to build a trolley line from this
place to Sioux Falls. Articles of in
corporation are to be filed.
Hamilton, Mont.—A franchise has
been granted for the building of an
electric line between here and Mis
soula. It will probably be in opera
tion next year.
Wausau, Wis.—- A franchise has
been granted to the Wisconsin River
Power & Traction Company and an
electric line will be built if sufficient
capital can be interested.
L a Crosse, Wis.—The business men
are investigating the Twin City interurban lines to see if one to be
constructed by them would pay and
they have come to the conclusion
that it would.
Great Falls, Mont.—The people of
Eastman Coulee, south of here, have
raised $10,000 which they will give as
a bonus to any company who will
construct a line from the city to that
neighborhood.
FACTS
ABOUT
the cry “ get a horse” m ay be of earlier
date than is supposed.
In 1898 Germ any had 30,000 miles
of railroad;
Great Britain, 21,000;
France, 25,000; Russia, 26,000, and
Austria-Hungary, 21,000. No other
country had a mileage in five figures
— except the United States, with the
modest figure of 186,000, nearly 20,000 more than all of Europe.—New
Y o r k Sun.
Northern Securities Stubs In Europe.
It is estimated by leading foreign
houses that Europe has acquired 90
per cent of the outstanding 39,000
Northern Securities stubs.
Europe
started in to buy at the time of their
issuance at $312, and this foreign buy
ing was responsible for the unwar
ranted advance to $900. These stubs
are now quoted at about $250, and it
is good banking opinion that they
have an intrinsic value in liquidation
at the present time of about $225. An
erroneous impression has been spread
broadcast that the valuable iron ore
properties of the Great Northern are
invested in these stubs, which is not
a fact.
R A IL R O A D S .
The first steam railroad in opera
tion in this country was used by the
Delaware & Hudson Canal Company
in 1829, to carry coal from its mines
to the canal for shipment to New
York. The track was sixteen miles
long. The rails, of rolled iron R>x2j4
inches, were spiked, broad side down,
to hemlock joists laid on cross ties ten
feet apart. The engine in its trial trip
made ten miles an hour.
The Baltimore & Ohio was the first
American road to organize on an ex
tensive system. Begun in 1828, it had
in 1835 a track mileage of 115.
The first trains between New Y o rk
and Philadelphia ran on the Camden
& Amboy, which road was begun in
1832 and completed in 1837, and is
now part of the Pennsylvania railroad
system.
The Pennsylvania was chartered in
1846. Construction was begun in the
following year, and the road was
opened in 1854. Trains to Chicago
were first run over this road in 1858,
a fact which lends added interest to
the present triumph over distance and
time in the eighteen-hour schedule be
tween New Y o r k and Chicago.
The first Western state to possess
a railroad was Michigan, in 1836. Il
linois, Mississippi and Indiana fol
lowed in 1839, 1841 and 1842. Rail
roading in California began in 1856,
and in the ’6o’s seven of our Western
states followed. Arizona had no rail
roads prior to 1879, and Oklahoma
gave no pasturage to the i#on horse
until 1886.
In the pioneer days of railroading it
was sometimes necessary for the con
ductor to run forward over the roofs
of the cars to shout orders to the en
gineer. Travelin g at night was gen
erally avoided, though one road
adopted the expedient of running
ahead of the locomotive a flat car
loaded with sand, on which a bonfire
was kept burning as a headlight. On
some early lines horses were used to
help the trains on up grades, so that
W IN N I P E G , M A N IT O B A
CANADA
S
B
a n k of
E S T A B LIS H E D
Ottaw
a
1874
Capital Authorized - - $3,000,000
Capital (Paid Up) - - - 2,500,000
Undivided Profits - - 2,573,332
A General Banking Business
Transacted
In te re s t Allowed on Deposits
FOREIGN EXCHANGE BOUGHT & SOLD
8 T . PAUL A G E N TS :
M E R C H A N T S N A T IO N A L B A N K
[ 7J. ^W.
Wheeler, Pres. Wm. Anglim, V-Pres. /
C. F. Mix, Cashier
)
FIRST NATIONAL BAN K
CROOKSTON, MINN.
I
C a p i t a l ..................................... $ 7 5 ,0 0 0
S u rp lu s
5 0 ,0 0 0
We negotiate Farm Mortgages
Harrison & Sm ith Co.
Printers, Lithographer«, Blank
Book Manufacturers, Elevater
Blanks and Bank Supplies t*
order. Estimates Cheerfully
furnished.
• 2 4 -4 2 6 -6 2 8
_
South
4th
M IN N E A P O L IS .
Strooft,
Saturday, Ju ly
THE
X, 1905
COMMERCIAL
WEST
5
AS
S I D N E Y C. L O V E & C O
members:
Stock and Crain
BROKERS
Ne w Y o r k Stock E x c h a n g e
C h ica g o Stock E x c h a n g e
C hicag o Board ot Trade
M inne apo lis C ha m b e r ef C omm erce
BANK
C L E A R IN G S .
B an k clearin g fo r the w eek ending
June ' 22, 1905, and the p ercen tag e o f in
crea se or d ecrease fo r the w eek o f le a d
in g cen ters and all w estern points, as
com p ared w ith the co rresp on d in g w eek
last year, as reported b y B ra d stre e t’s:
June 22.
Inc. D ec.
N ew Y o rk .......... {$1.407,148,913 34.5
189,299,136 23.0
C h ica g o ................{
B oston .................{
132.30S,276 16.8
131,611,157 23.9
P h ilad elp h ia . . . . i
St. L o u i s ..............{
54,200,729
9.3
47,929,198 16.8
P ittsbu rg h ...........
33,480,200 28.8
San F ra n cisco . . {
C incinn ati ............
25,473,000
5.2
B a ltim ore ............t
21,786,325
i .2
K a n sa s C ity . . . . {
21.477,675 15.0
N ew Orleans . . . . {
19,776,514 33.9
M inneapolis ........{
12,851,583
7.8
C leveland ............{
14,009,428 15.4
.4
10,790,804
L ou isville ........... {
11,574,693 11.3
D e tro it ..................
M ilw aukee ......... {
7,766,121 10.8
O m aha ..................
8,654,971 25.4
P rov id en ce ..........{
6,722,500
6.7
L os A n g eles .. . . {
8,855,362 37.3
.7
B u f fa lo '..................{
6,031,997
Indian apolis ........
1.4
6,294,328
St. P aul .............. {
Ü .2
5,871,213
M em phis ..............
4,233,808
7.9
4,424,619
5.2
St. Josep h .......... {
R i c h m o n d .............
5,040,400 40.1
D en ver ..................
6,353,164 38.7
Colum bus, O h io ..
3,965,300
6. i
S eattle ..................
5,824,232 33.7
W a sh in g to n ........
5,115,873 34.9
P ortlan d, O r e . . . . {
3,945,945 23.7
F o rt W o rth ..........
4,019,494 77.6
T o le d o .................. {
4,031,271 18.5
Salt L ak e C i t y ...
4,266,602 51.8
P e o ria ....................
2,602,593 47.7
Spokane .............. ,{
2,910,020 32.7
D es M o i n e s ..........
2,741,577 20.3
T a com a ..................
3,133,287 63.0
S ioux C i t y ............
1,716,820 44.2
W ic h ita ................
1,125,709
3.2
D a v en p ort ............
663,486
7.1
L ittle R o c k ..........
834,149 i 6.7
T op ek a ..................
649,217
2i . 5
Spring-field, 111....
787,580
7.2
H elen a ..................
794,246 65.0
F arg o, N. D ..........
566,629 14.5
583,499 18.5
R o ck ford , 111.........
B loom in gton , 111..
353,637
1.1
Q u in cy ..................
308,297
7.7
D ecatu r, 111............
336,027 17.8
S iou x Falls, S. D ..
251,981
6.3
J a ck son ville, 111..
236,792
9.7
F rem on t, N e b . . . .
240,202 75.1
C ed ar R ap ids . . . .
454,450 33.1
H ou ston .............. t
12,631,178 23.9
G alveston ............f
9,135,000 38.4
T otal, IT. S ........ $2,308,967,015 27.6
T ot., ou tsid e N. Y.
901,818,102 18.3
DO M IN IO N O F C A N A D A .
M ontreal ..............
$23,644,502 20.0
T o ro n to ..................
17,967,216 14.3
W in n i p e g ..............
6,046,552 17.9
V a n cou v er, B. C ..
1,877,308
8.8
V ictoria , B. C . . . .
594,14-4 11.2
-LU . \J
....
$59,063,636 15.0
fN o t included in totals becau se c o n ta in
in g oth er item s than clearings. {B a la n ce s
paid in cash.
July Dividend Disbursements.
Th e Commercial estimates that div
idends and interest from railroads,
industrials and banks and trust com
panies for July, will aggregate about
$145,000,000, by far the largest part of
which will be disbursed in N ew Y o rk
City. The total compares with ap
proximately $143,000,000 for the cor
responding month of last year, and
with $139,000,000 for July, 1902.
Inim nesota Title Insurance
& Trust Co.
M IN N E A P O L IS M I N N .
C a p it a l $ 2 5 0 ,0 0 0
G
uaranty
Fu
n d
$ 1 0 0,0 00
The oldest Title and Trust Company
west of Philadelphia
Banking, Safe Deposit, Loans, Trusts,
Abstracts, Title Insurance
I
J. U. Barne*, Prest.
Wallace Campbell, Vice-Prest.
https://fraser.stlouisfed.org
I C. J. Tryon, Trust Officer H. A. Barnes, 2nd Yice-Prest.
W. S. Jenkins.
Secy.of St. W.
A. Hotchkiss, Treas.
FederalI Reserve
Bank
Louis
W ESTERN
NEW YORK
CHICAGO
ST. LOUIS
MINNEAPOLIS
BO ND S.
Fairchild, Wis.— The proposition to
bond the village for a gas plant was
voted down.
Randolph, Neb.— On Ju ly 11 a spe
cial election will be held to decide
the question of issuing $9,000 lighting
system bonds.
Billings, Mont.—The city of B il
lings has sold its $15,000 issue of
bonds to a Chicago house, premium
•$207 and interest' at 4^/2 percent.
Livingston, Mont.—The trustees
of the Cokedale school district have
sold the $2,000 school bonds to the
Union Bank & Trust Company of
Helena at par.
Mandan, N. D.—The board of
county commissioners has sold the
$31,000 refunding bonds to F. E. McGraw of St. Paul at a premium of
$455. Interest rate 4^/2 percent.
Stephen, Minn.— Ind. school dis
trict No. 1 sold its $20,000 bonds on
the 8th inst. to U. M. Stoddard &
Co., of Minneapolis, for $20,100, 4 x/2
percent, due $500 each year after two
years and $13,500 due in 15 years.
Bozeman, Mont.-—School district
No. 7, Gallatin county, Mont., will sell
on Ju ly 18 bonds to the amount of
$21,000. Bonds payable in twenty and
redeemable in ten years and to bear
interest not exceeding six percent.
Our Second Best Staple Export.
The fiscal year, which closes with
the present month, will be marked by
one striking change in the ranking of
our staple exports. Until this period,
with the exception of the fiscal year
1880, the order of value, in our agri
cultural export trade, has been: Cot
ton, first; wheat (including flour), sec
ond; corn, third. In the year 1880,
E uro pe’s famine demand for wheat,
and the resultant high prices, lifted
the total export value to $225,879,000;
whereas cotton exports, though the
fifth largest ever made, reached only
$21 U535.ooo. In the fiscal years 1892
and 1898, when similar wheat trade
conditions prevailed, cotton exports
nevertheless kept up their leadership.
But corn has invariably held third
place. Even in the short-wheat-crop
year 1888-89, when wheat and flour
exports brought only $86,900,000, corn
shipments footed up but $32,900,000.
The fiscal year 1904, in which wheat
and flour made up but $104,700,000 ex
port, showing for corn was only $31,763,000.
Y e t the eleven completed
months of the present fiscal year give
a total of only $41,079,000 wheat and
flour sent abroad, while corn exports
foot up $45,702,000. Thus, for the first
time in our history, corn passes wheat
in the export trade.
A natural question is, whether this
is the accident of a single year, to be
presently forgotten, like the rise of
wheat to first place in 1880, or wheth
er a more permanent tendency is
marked.— New Y o r k Evening Post.
The Review of the River Plate of
M ay 19 forecasts, from a special in
quiry into the subject, that there may
be an increase of 1 2 ^ per cent in the
area sown with wheat this year, and
a similar increase in flaxseed.
TO
LARGE
BANK
D END S.
D IV I
The declaration last week of a 120
per cent extra dividend by the Fifth
Avenue bank, in addition to the regu
lar quarterly dividend of 25 per cent,
recalls the fact that this bank was the
first in New Y o rk to pay in a surplus
at the time that its capital was sub
scribed for. When this was done in
1875, it was considered a novel de
parture in metropolitan banking, and
the step was much commented upon.
F o r sixteen years after organization
the bank never paid a dividend, doing
what it could to accumulate a sur
plus.
The largest dividend ever paid by
a national bank was one for 195 per
cent given to stockholders of the
First National in July, 1902, when that
institution’s capital
was
increased
from $500,000 to $10,000,000. On the
basis of the old capitalization the bank
declared 100 per cent regularly, but
since the change 20 per cent dividends
have been paid. Other financial insti
tutions that declare large dividends
are the Chemical National bank, 150
per cent; the New Y o r k County N a
tional, 75 per cent; the N ew A m ster
dam National, 24 per cent; the Central
Trust, 60 per cent; the Farm ers’ Loan
and Trust, 40 per cent; the Union
Trust, 50 per cent, and the United
States Trust, 50 per cent. Eight other
banks of New Y o r k distribute 20 per
cent annually, and many more 10 per
cent and over.
C H IN A B U Y S L U M B E R .
Foreign and domestic cargo ship
ments from the Pacific Northwest for
the first three months of the current
year, according to the Pacific Lumber
Trade Journal, aggregate 259,276,222
feet of lumber, 7^481,781 feet of lath,
554>6i5 feet of pickets and 18,775,325
shingles. These figures are presented
in a circular compiled by the cargo
branch of the Pacific Coast Manufac
turers’ Association.
China outranks all other countries
in receipts of lumber manufactured
here and exported during that period.
Japan is apparently taking ve ry little
of the coast output, but from official
and semi-official inquiries there it is
declared that the little island kingdom
will soon be in the market for much
lumber.
The demand from Australia is
claimed to be increasing and shippers
anticipate that the smallest of the con
tinents will have taken more lumber
than China when the ye ar’s statistics
are compiled. So far this year A us
tralia has been the heaviest foreign
buyer o í lath and pickets from the
coast mills.
Modern Financial Banking.
The newer plan of using deposited
funds not so much for the discounting
of the regular commercial paper of
customers as for the promotion of
more or less speculative enterprises
has come into use in answer to a nat
ural demand and is doubtless capable
of being employed to the great ad
vantage of general business as well as
that of individuals. But the greater
profits possible in this kind of banking
business necessarily involve greater
risks and these should not be incurred
without the provision ©f extreme pre
cautions. These precautions are to
be sought primarily in the integrity
and exceptional ability of those who
engage in financial banking, and sec
ondarily in a proper system of go v
ernmental examination and control.—
Providence Journal.
THE
6
COMMERCIAL
WEST
Saturday, Ju l y
I,
1905
#ft
K
The Northwestern National Bank
M IN N E A P O L IS MINN.
•4.
S ta te m e n t A t C lo s e o f B u s in e s s , M a y 2 9 , 1 9 0 5 .
LIABILITIES.
R E SO U R CE S.
L oa n s and D isco u n ts ............................................ $ 7,380,130.60
U. S. and oth er b o n d s . . . . ......................................
838,125.84
B an kin g hou se fu rn itu re and fix tu r e s............
250,000.00
Cash, and due from, b a n k s .................................... 2,892,539.18
1, 000, 000.00
712,649.75
250.000.00
15.000.00
9,383,145.87
C apital .......................................................
Surplus an d p rofits ...............................
C ircu lation ...............................................
U. S. bond a cco u n t ................................
D ep osits .....................................................
$11,360,795.62
$11,360,795.62
V
An Average of over 8 per cent Annual Dividends Paid to Stockholders Since Organization in 1872.
Dividends Paid Since Organization, $2,310,000.
O F F IC E R S
M . B. K O O N , Vice-Pres.
F R A N K E. H O L T O N , A sst. Cash.
W M H D U N W O O D Y , President
J O S E P H C H A P M A N , J R ., Cashier
ONEIDA BLOCK
M IN N E A P O L IS , M I N N .
W ALTER L. B A D G E R
TOANS
ma^e on First-class Improved Security to net lender 4% to 6 per cent. Special
^ attention given to care of property with economical management guaranteed.
Best of references.
THE AMERICAN TRUST AND SAVINGS BANK
CHICAGO.
Capital Stock
-
-
■
Surplus Fund -
E D W A R D W . D E C K E R , Vice-Pres
C H A S . W . F A R W E L L , A sst. Cash.
First National Bank of D U L U T H , MINN.
Bought and Sold on Commission
or Joint Account'
REAL ESTATE
<
Capital,
Surplus and Profits,
$500,000
$839,820.33
U. S. GOVERNMENT DEPOSITARY
A. L. Ordean, Pres.; J. H. Dight, Cash.; W. S.
Bishop, Asst. Cash.; W. J. Johnson, 2nd Asst Cash.
L,
f
A
$3,000,000
1,500,000
O F F IC E R S :
EDWIN A. POTTER, President.
T. P. PHILLIPS, Vice-President.
JAMES R. CHAPMAN, Vice-President.
JOHN JA Y ABBOTT, Vice-President.
CHARLES S. CASTLE, Cashier.
F. J. SCHEIDENHELM, Assistant Cashier.
OLIVER C. DECKER, Assistant Cashier.
EDWIN L. WAGNER, Assistant Cashier.
FRANK H. JONES, Secretary.
WILLIAM P. KOPF, Assistant Secretary.
IRVING J. SHU ART, Assistant Secretary.
GEORGE B. CALDWELL, Mgr. Bond Dept.
WILSON W. LAMPERT. Auditor.
LOANED
IN
<*7 FARM MORTGAGE S.\v¿
00 Investment(g )securities
'S
•K
NO LOSSES OF
THE EQUITABLE TRUST COMPANY
PRINCIPAL OR INTEREST/
EXPERTS
152 Monroe Street, C H IC AG O
Capital Paid Up, $500,000
Surplus, $450,000
OUS
Acts as Trustee for Corporations, Firms and lnviduals, and as agent for the
registrations and transfer of bonds and stocks of Corporations and the pay
ment of coupons, interest and dividends.
IN T E R E S T P A I D ON D E P O S IT S
DIRECTORS:
F R E D . G. M cN A L L Y
F. M. BLOUNT
L. A. W ALTON
W ILLIA M BEST
JOHN M. SMYTH
KNAUTH, NACHOD & KÜHNE
M AURICE ROSE N FE LD
J. R. WALSH
OFFICERS :
J. R. W ALSH . President
L. A. W ALTO N , Vice-President C. D. ORGAN, Sec. and Treas.
C. HUNTOON, Ass’ t Sec’ y and Ass’ t Treas.
Minneapolis Property Boug£ sN0“-^êie“ “ aged
Rents collected; buildings improved and reconstructed to produce In
creased results. Satisfactory reference to local and eastern parties
MOORE BROS. & SAWYER
A. J. W H IPPLE & CO:
M E M B E R S C H IC A G O S T O C K E X C H A N G E
STOCK BROKERS
Private Wires to all
p u i P
a
GO
Principal Exchages
U u lU A u U
Main Floor New York Life Building
Long Distance Tel. Central 1031. Orders
by wire in grain and stock promptly filled
M IN N E A P O L IS
MINNEAPOLIS
N. O. Werner, President. F. A. Smith, Cashier
C. S. Hulbert, Vice-Pres. E. L. Mattson, Asst. Cash.
Vice-Pres., J . A. Latta.
C a p i t a l .......................................$250,000
S u r plu s a n d U n d iv id e d P r o f it s - 158,000
D eposits
2,992,754.01
and
BOND & GOODW IN
NOTE BROKERS
bo sto n
C om m ercial Paper
larporation L o in s .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C h ic a g o
Investm ent Securities
Lo*ns Secured by Investment Securities.
i s Audit Company
of Illinois
*
i
S u ite 6 3 5 - 4 3 M a r q u e t t e l t l d g .
P u b lic A c c o u n ta n ts an d A u d itors
OFFICERS: L. A. Walton, President; F. W. Little, VicePresident; C. D. Organ, Secy, and Treas.; C. W.
Knisely, Manager.
DIRECTORS: A. G. Becker, A. G. Becker & Co., Chicago;
F. W. Little, Vice-President Peoria Gas and Electric Co.,
Peoria; G. A. Ryther, Cashier National Live Stock Bank,
Chicago; J. R. Waish, President Chicago National Bank,
Chicago; L. A. Walton, Vice-President Equitable Trust
Company, Chicago.
So l d .
ROBERT F. PERKINS
EDWARD N. FENNO, JR.
STEPHEN N. BOND
THOMAS F. BAXTER
N E W YORK
Members of the New York Stock Exchange
Letters of Credit and International
Travelers’ Checks
Foreign Exchange
Cable Transfers
j C H IC A G O
The Swedish=Amencan Nat’l Bank
F oreig n E x c h a n g e B ought
B A N K E R S
. D . D, ,
Manager Chicago Office CHARLES F. MEYER, First National Bank Bldg
D E A N B R O S . & CO.
Com m ercial Paper
M IN N E A P O L IS ,
M IN N .
*w
Saturday, Ju ly
I,
THE
1905
COMMERCIAL
’ Ds
«
—
m
1
WEST
7
obvious. Once the public is well appraised of these
advantages, the deferred dividend policy will become
a comparatively small factor in life insurance busi
ness and the opportunity for reckless extravagance will
correspondingly decrease.
A W EEKLY JOURNAL
R E P R E S E N T IN G W E S T E R N
B U S IN E S S
P u b lis h e d b y the C o m m e r c ia l W e s t C o ., M in n e a p o lis ,
H. V. JO N E S ,
P r e sid e n t
M in n .
L E O N A R D BRONSON,
and
M gr .
V ice -P r e sid e n t .
Minneapolis Oïîice, Rooms 625=631 Guaranty Bldg.
T e l e p h o n e M a in 307.
SUBSCRIPTION IN ADVANCE.
One Year, $3.00.
POSTAGE FREE.
S ix Months, $1.50.
Europe, £1.
The C o m m e r c ia l W est will not knowingly publish the advertisement
of a financially unsound individual or company.
EN TERED
A S S E C O N D -C L A S S M A IL M A T T E R A T T H E PO ST O F F IC E ,
M I N N E A P O L IS , M IN N .
SATURDAY, JULY 1, 1905.
Editorial Comment.
June continues to improve the government treas
ury statement. Up to June 27 receipts exceeded ex
penditures by $8,833,969 for the month, thereby cut
ting down the deficit for the fiscal year to $27,815,710,
as compared with a_$44,859,04i deficit for the same
period last year. The improvement is due to an
economy of nearly $40,000,000' in the item of civil
and miscellaneous expenditures, including internal im
provements. The war and navy hills are over $20,000,000 heavier than for the same time last year. In
dians, pensions and interest are about the same, and
revenue receipts show only $2,500,000 gain. In order
to make a show for retrenchment and stop the big
deficit gap, therefore, the government appears to find
it necessary in times of peace to curtail internal im
provements. The chances are that, outside of a few
contractors on the Atlantic coast and the professional
clique in the army and navy departments at Wash
ington, the people of the United States would prefer
to see the extra $20,000,000 go into good roads,
rivers and harbors, and irrigation to develop the coun
try’s resources, than into war preparations.
That portion of the Frick investigation committee’s
report on the Equitable Life, relating to the deferred
dividend policy, is likely to work widespread revolution
in life insurance methods in this country. “ Old line"
life insurance in so far as it makes definite stipulated
contracts with the insured has for years been made by
the laws of most of our states one of the surest and
safest of popular investments. It is that indefinite
margin over and above the stipulated sum named as
the benefit, that has been the cause of most of the loose
ness, the recklessly hot competition for business, and
the “ moral obliqueness” that is not only shown in the
case of the Equitable, but suspected in many of com
peting company’s. The “ three giants” of New York
with their large surplus funds have made all other com
panies work hard and pay high for their business.
This high pay has been drawn from the deferred divi
dend fund of the policy holder. There is no denying
the charge that the getting and holding of life insur
ance business has cost too much, and that the insured
is the man who has paid the cost. The committee’s
suggestion that the annual dividend be substituted as a
corrective of this abuse recommends itself to the pub
lic. This method has been adopted, and is _ largely
practiced by several high class companies. With their
policy holders it is growing in popularity. Its advan
tages, that of frequent accounting to the policy hold
er and of return to him of his annual earnings—are
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Federal Reserve Bank of St. Louis
If there were no other benefit arising from member
ship in the American Bankers’ association than its pro
tection of funds from sneak thieves, forgers and bur
glars, this feature alone would abundantly repay the
cost of membership. It has come to be a demonstrated
fact that thieves of these classes respect the sign of
the association and rarely attempt their operations upon
banks of association members. The report of the pro
tective committee for the nine months ending June 1
show that eighty-two attacks were made upon banks
by burglars, who obtained a total of $88,779. Of
these banks fifteen were members of the association,
and from them the burglars obtained but $9,117. The
protective committee which works through the Pinker
ton detective agency, reports having arrested fiftyseven burglars, of which twenty-four were convicted
and twenty-one are awaiting trial. Of forgers and
swindlers sixty-three were arrested, of which thirty
were convicted and twenty-four await trial. No' asso
ciation bank has sufifered loss through sneak thieves,
though attempts have been made. Every important
forgerv committed by professionals upon association
banks during the year has been cleaned up. The rec
ord is in every respect satisfactory and recommends
the American association to the bankers of the coun
try as the most practical and complete protection pos
sible against the various forms of professional theft
practiced upon banks.
North Dakota Banking.
The North Dakota bankers, who meet in conven
tion at .Grand Forks, July 7 and 8, in a state which
was not admitted to the Union until November, 1889,
represent upwards of 325 institutions with a banking
capital of something like $6,000,000 and deposits of
$35,000,000.
At the first annual meeting of the North Dakota
Bankers’ association, two years ago, the association
numbered sixty-five banks, and last year 201. It is
probable that the secretary next week will report a
membership of close upon 300 for the association’s
third year of its history.
North Dakota population progress, as told by the
census enumerator, reads thus—2,405 in 1870, 36,909
in 1880, 182,719 in 1890, and 319,146 in 1900. But
during the past five years since the last national census
a tide of immigration has swept into the newer coun
ties of the state passing that of any previous period,
and it is probable that 500,000 is not, far from the correst population of the state at the present time.
The agricultural development of North Dakota
in the past few years is readily seen in the phenomenal
acreage increase. Even since 1900 wheat acreage in
North Dakota has increased 65 percent, while the
corn and flax and general crop acreage has practically
doubled. In the northern half of the state farm set
tlement in the past five years has doubled and quad
rupled, and the banks and elevators to pay for and
market the crop have multiplied accordingly.
Even prior to the recent industrial revolution be
ginning in 1898, North Dakota was doing pretty well.
The farm acreage increased from 7,600,000 acres in
1890 to 15,500,000 in 1900, and the value of the farms
from $75,000,000 in 1890 to $198,000,000' in 1900.
During this census decade North Dakota farm ma
chinery and implements on the farms increased from
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$6,600,000 to $14,000,000, and farm livestock from
$18,700,000 in 1890 to $42,400,000 in 1900 ; while the
total farm property rose from a value of $100,000,000
in 1890 to $255,000,000 in 1900— a growth of 155
percent.
The manufacturing growth of the state was parallel
to the agricultural. The mills and factories trebled in
the ten years in number, and practically doubled in
capital, wages, hands employed, and volume of prod
uct. The banks increased at a rate far in excess of
that of- the farms and mills, just as the trade, the
production, and the values, agricultural and munici
pal, increased at a rate far ahead of population in
crease.
The transformation from 1870 to 1905 may he
imagined from the growth in railway mileage. In the
entire Dakota territory, including the present states
of North and South Dakota, there were in 1870 just
sixtv-five miles of iron rail, as compared with 2 ,116
in North Dakota alone in 1890 and close upon 4,000
today, which is nearly double the rail mileage of Mas
sachusetts.
It is upon such a foundation that the 300 bankers
who meet next week have built so solidly and with
such success. On Nov. 10, 1904, the report of the
comptroller of the currency showed North Dakota
national banks numbered eighty-seven, with $3,100,000 capital, $482,987 surplus, and $548,282 of un
divided' profits, a total banking capital of $4,400,000,
as a basis for $16,000,000 of deposits and $13,500,000
of loans.
At last year’s convention there were, in addition
to seventy-nine nationals with $2,700,000 capital, 212
state banks with a capital of $2,400,000. It is probable
that next week’s report of the secretary of the asso
ciation will show close upon 240 state banks of $3,000,000 capital, and perhaps $4,000,000 of capital,
surplus and profits, making a total banking capital of
over $8,000,000, including surplus and profits, for
the 320-odd banking institutions of the state on the
day of the third anniversary of the association.
Progress of the National Banks.
In ten years, according to late returns from the
comptroller of the currency, the deposits of the na
tional banks of the United States have increased near
ly 120 percent and the loans close upon 100 percent;
the volume of increase representing $1,800,000,000 in
loans and $2,000,000,000 in deposits.
Such a record has no parallel elsewhere on the
globe. During the past year the increase has amount
ed to $470,000,000 in deposits and $300,000,000 in
loans.
The following table gives the figures for 1894 to
1905 inclusive for the corresponding dates for the
several years:
1905
1904
1903
1902
1901
1900
1899
1898
1897
1896
1895
1894
Loans.
................$3,899,170,328
............... 3,595.013,467
............... 3,415,045,751
............... 3,221,859,631
............... 2,956,906,375
............... 2,623,512,201
............... 2,492,230,584
............... 2,151,757,656
............... 1,966,891,501
. ............. 1,970,098,833
............... 2,004,475,559
............... 1,933,589,353
Cash.
$649,265,049
658,393,318
552,209,207
569,618,260
540,800,167
502,964,237
491,749,981
470,977,098
413,518,622
349,380,098
382,942,366
438,93L 970
Individual
deposits.
$3,783,658,494
3,312,439,841
3,200,993,509
3,098,875,772
2,941,837,429
2,458,092,758
2,522,157,509
2,023,357,160
1.770,480,563
1,687,629,515
1,736,022,007
1,677,801,201
It is plain that the period when the United States
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Federal Reserve Bank of St. Louis
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Saturday, Ju ly
I,
1905
represented virgin resources and labor alone without
capital has well passed, when nearly $4,000,000,000
of saved earnings are deposited in national banks alone.
The wonderful strides of the country in railroad, in
dustrial, and municipal investment in recent years is
explained by the bank figures.
Minnnsota Bankers’ Association.
Secretary Joseph Chapman, Jr., of the Minnesota
Bankers’ association, states that in 1900, out of 538
banks, the association had a membership of 262, while
in 1905 the membership is 635 out of a total of 832
banks. This shows two interesting facts: First, that
in five years Minnesota banks have increased from
538 to 832, a net growth of 294, or 56 percent; sec
ond, that bank organization in Minnesota, as shown
by an increase from 262 to 635 in the bank association
membership, has strengthened over 100 percent. The
value of this organization to the public is this, that
the stronger esprit du corps among the banks pro
duces higher professional standards, raises the gen
eral banking standard of the state, and thereby creates
and maintains a stronger bulwark of protection for
the public deposits.
Eleven Months’ Foreign Trade.
In spite of the marked reduction in the volume of
exports of breadstuffs by reason of crop failure, United
States exports for the fiscal year ending June 30, 1905,
will break all records and approximate $1,500,000,000.
The imports will break records with a total of about
$1,100,000,000, making a total foreign commerce of
over $2,500,000,000.
Agricultural exports, on account of shortage in
breadstuffs, show a decline of over $50,000,000 for
1905 compared with 1904, and $75,000,000 compared
with 1903. Notwithstanding the agricultural export
decline, the aggregate shows a healthy growth, as
witness:
Exports for 11 months ending May 3 1—
1905.
1904.
Agriculture ......... $763,624,832 $816,395,248
Manufactures . . .
493,396,788
410,536,478
45,556,030
40,996,118
Mining .................
F o r e s t ...................
56,680,161
62,348,879
Fisheries .............
6,990,917
8,455,900
Miscellaneous ..
6,655,199
5,520,676
1903.
$825,265,739.
373,907,325
34,711,742
51,857,212
7,543,738
6,114,951
Total domestic.$1,372,903,927 $1,344,253,299 $1,299,400,707
Exports of manufactured goods show the heavy
gain—over $80,000,000 over 1904 and $120,000,000
over 1903.
The interesting point in regard to the large in
crease in imports is this, that the chief gain is in the
importation of manufacturers’ materials. Materials
in crude condition for manufacture account -for $50,000,000 of the increase, while goods ready for con
sumption show a shrinkage, as below:
Imports— 11 months:
Articles.
1905.
1904.
1903'.
Food and ani
mals ..............$ 257,558,737 $ 213,664,614 $ 199,915,105
In crude condi
tion ....................
353,037,882 296,164,495
301,672,028
W holly or partly
manufactured.
130,114,791
124,808,312
149,431,674
Ready for con
sumption ------I50,753,3t5 153,303,070
156,464,047
Luxuries .................
135,903,784 121,782,508
136,236,606
Total ...............$1,027,368,509
$909,722,999
$943,719,460
The statistics of our foreign trade for the past
Saturday, Ju ly
I, 1905
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eleven months are a demonstration, therefore, of the
recent wonderful increase in our manufacturing re
sources and of the ability of our manufacturers to
command the markets of the world.
Position of Portland.
Regardless of the benefits derived from the Lewis
and Clark exposition, Portland is achieving prosperity
because of the merits of its industrial and commercial
position. As regards location, Portland combines an
unusual number of exceptional advantages. As an
ocean seaport it is favored by a deep fresh-water har
bor. It is not only a seaport and seat of customs, but
it is the jobbing and financial center of a prosperous
and rapidly developing territory reaching from the
Pacific to the Rockies. Besides being a seaport, and
a jobbing and financial center, it is great in manu
factures, particularly in the lumber and wood-work
ing industries and in flour and kindred cereal indus
tries, and it is likewise the metropolis of one of the
richest agricultural, lumber and mining districts in
the Union.
Portland’s bank clearings in 1903 reached $175,000,000, whicfi placed the city on the Willamette
ahead of Toledo. Last year Portland’s clearings in
creased to $189,000,000, or not very far short of those
of Denver, Columbus, and Washington, D. C. This
year Portland’s bank clearings are running at $5,000,000 and $6,000,000 per week, which means $250,000,000 to $300,000,000 for the year. This will place
Portland in volume of bank clearings in the class with
St. Paul, Indianapolis, and Galveston.
Portland’s foreign and coastwise trade last year
totaled $72,000,000, and the jobbing aggregate, in
cluding inland and shipping, reached $180,000,000,
which compares favorably with that of the average
city of 175,000 population. In grain, flour, cereal
products generally, fruit and vegetables, dairy and
meat products, fish and sundry staple groceries, the
produce of her commercial territory, Portland through
its five wholesale groceries and fifteen commission
houses does a business estimated at close upon $100,000,000. As a wheat shipping port Portland last year
ranked next after New York, and as a milling point
Portland is the greatest producer of soft wheat flour
in the country.
Portland’s present population of about 150,000,
which was 90,425 in 1900 and 46,385 in 1890, will
he well beyond the 200,000 point by the census of
1910. The assessed valuation of $50,897,931 is on
a 35 percent basis. The six banks carry upwards of
$30,000,000 of deposits, and pay stockholders from 6
percent to 30 percent dividends. The First National,
which made its recent dividend distribution on the
basis of 28 percent, represents alone $1,500,000 of
capital and surplus and over $9,000,000 of deposits.
The city’s pure water supply represents an investment
of over $4,000,000. The real estate transfers have
reached $io,ooo,ooO' per annum.
As a manufacturing point, Portland is one of the
exceedingly few lumber centers in the world, whose
sawmills record a cut of 400,000,000 feet of lumber in
a year. The flour milling, cereal, bakery and con
fectionery industries represent close upon $15,000,000 of capital and employ 900 hands in turning out a
product valued at close upon $9,000,000 a year. The
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Federal Reserve Bank of St. Louis
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9
canning industry handles about $500,000 worth of sea
products per annum.
Oregon is a young state with an area one-half
greater than that of New England. In addition to
26.000. 000 acres of government land which have been
taken up and 14,800,000 acres more which are re
served for forestry and national park purposes, Oregon
still offers the intending settler 20,000,000 acres of
unreserved and unappropriated public lands, of which
15.000. 000 are surveyed. Portland, as the metropolis
of the state, has behind it, therefore, a vast reserve
of undeveloped virgin territory which in itself insures
for the city a future of rapid and solid development.
The Law’s Delay.
The slow progress of legal processes has been a
proverb from the time when the memory of man run
neth not tO' the contrary. So accustomed are we by
tradition and by experience to expect the civil law to
proceed by slow and tedious steps that we may not
be aware of the fact that it is possible by means of
present time-saving appliances and active attorneys
to bring a case to a quick, successful finish in the
time formerly taken for the preliminary steps.
A good example of the speed that can now be made
in a civil suit by the help of steam and electric rail
ways, telephones and typewriters, is seen in a suit re
cently instituted by a wholesale house in this city for
the collection of an account. This house, which had
sold on time a bill of goods to a small concern at
Faribault, Minn., became suspicious of the honesty of
its creditor and placed the matter in the hands of its
attorney early Monday morning, June 5. The attor
ney immediately took the train for Faribault, where
he found that the concern had sold all its property
to a third person, including something more than
$1,000 worth of goods belonging to' the wholesale
house. During the day the attorney interviewed the
vendor, the purchaser and other citizens, finding
ample evidence of fraud.
Returning to the city he prepared on Tuesday
pleadings and attachment papers and executed the
necessary bond. Wednesday morning at 8 a. m. he
interviewed the district judge at Owatonna, who ap
proved the bond in attachment and ordered issuance
of a writ of attachment. At 1 0 :30 a. m. the attor
ney was in Faribault and had filed with the clerk of
the district court at that place the pleadings and
attachment papers, had the writ of attachment issued
and in the hands of the sheriff. At 1 1 a. m. the
sheriff had levied on all the attachable property of
the insolvent concern, including outstanding accounts,
and had closed the business.
This stage of proceedings, bringing the plaintiff
concern to a safe pause, was reached just fifty-one
hours from the time the case was taken in hand, the
work having been done at the long range of fifty
miles. During the next two days the business was
so well carried forward that on Saturday the fraud
ulent vendor and the purchaser were in the city de
siring to effect a compromise in the case. The whole
sale house was then in a position where it could de
mand every cent of money due it, had firm hold on
property enough to indemnify it, and had a good case
to take to- court.
Before the days of modern methods the work of
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COMMERCIAL
this week might easily have occupied a month, and
processes may have been so slow as to- allow the in
solvent concern to scatter the property beyond re
covery. The report of this case suggests to the
initiated only the mass of clerical detail necessary for
the successful tying up of the property and the prepa
ration of the case for trial. While this is a good ex
ample of modern speed in civil suits it is not an un
common case. It shows how by means of our modern
machinery it is safe for a large business house to do
business at long range with small less because of mis
placed credit.
T H E B U L L ’S E Y E .
Y ears ago, when the Hon. Bob Ingersoll was in the
meridian of his glory, a good old orthodox lady who
wanted to beat him at his own game said: “ Mr. In ger
soll, if you were making the world yourself, what could you
do any better than God has done? ’ “ Madam, replied the
Honorable Bob, “ I ’d make good health contagious.” Then
the irreligious world stood up on the bleachers and yelled
itself hoarse for Bob. This retort is probably the bright
est thing to be found in the whole dreary grist of Mr.
Ingersoll’s blasphemous bluff.
*
*
*
H ow bright is this idea? Suppose good health to be
contagious. Such a plan would provide that any old rake
could go off and blow himself to rags on a six day’s de
bauch, and on the seventh come rubbing around the per
son of any clean, high minded, healthy citizen, catch a case
of good health and go and blow it all in again
the next week and the next and so on ad in
finitum.
Such a law of the universe would take
the brakes off of every down-hill proposition
on
earth. The world would straightway go enmasse to the
dogs—healthy dogs to be sure, but dogs just the same.
But healthy dogs providing only that, seeing the immunity
from disease and its easy cure, the whole world did not
get down together in one diseased mass and no one sound
specimen be left to infect the rest with good health. H ow
much of a brake on bad behavior do you think the fear
of disease to be? Enough so that it keeps this old world
from spoiling. W e all know that.
*
*
Mr. Ingersoll’s reply implied a mean untruth. Good
health is contagious in the best sense of the word. It is
likewise infectious and in this good land of ours it is like
ly to become epidemic before your grandchildren are old
enough to vote. E v e r since the first great medical scien
tists discovered the cause of various diseases, all our sci
entific schools and our brightest doctors have been chas
ing each other to find more causes and their cures. Good
health research has become contagious. So has its appli
cation, for we have good health injected into our munici
pal and state governments; into our domestic economy
and into our personal behavior. Good health is on tap
for everybody who will tap it. If you are unfortunate
enough to be predisposed to consumption you may have
to tap it a little harder, but it is there for you just the
same. Would you prefer to have it chase you and catch
you while you are running away from it? Would you
rather that it come to you lying in a hammock? The
kind of good health the good L ord has served out to me
regularly these pleasant years is worth getting up morn
ings and going up hill after. A little of it did come that
way.
*
*
W e think of sin and error as being the only contagious
principles in our moral world. That thought is an error.
Good behavior is one of the most surely contagious prin
ciples on earth. I know a man on our car line who made
his back yard royally tidy seven years ago. His example
spread along the line north and south till traces of it can
be seen half w ay down town and as far out as Fortyseventh street. Who knows how many passengers seeing
it, carried it out on side lines, and how many of these
became themselves centers of a tidy influence? Y ou do
your best to be decent and see how decent the world
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Federal Reserve Bank of St. Louis
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Saturday, Ju ly I, 1905
grows around you.
Good conduct is catching.
Good
cheer is contagious. The best of everything good is to
be bad for the price, and we have the price.
— The Sharpshooter.
V
C H IC A G O F I N A N C I A L N O T E S .
(S p ecia l C orresp on den ce to T he C om m ercia l W e st.)
Chicago, June 28.— The American Trust and Savings
Safe Deposit Company has been incorporated at Springfield. Its capital stock is $2,000,000. This is the company r-f
that will own the building to be constructed for the
American Trust and Savings Bank at the northeast corner
A
of Monroe and Clark streets.
The incorporators are
Frank LI. Jones, secretary, and William P. K o p f and Ir v V
ing J. Shuart, assistant secretaries of the bank.
«
Brokers who have handled American Trust stock have
had the impression that the stockholders of the bank
would have “ rights” on the stock of the building company
or would have priority over the general public in the plans
for financing the building proposition. Edwin A. Potter,
president of the bank, says it is too early to talk about
that feature of the matter. The plans for the building
have been completed and the work of construction will be
begun as soon as the old building can be cleared off the
site.
Nothwithstanding the heavy expenditures necessitated
by the fire in its New Orleans docks and warehouses and
the building of new warehouses at Memphis, the net earn
ings of the Illinois Central in the fiscal year which ends
with this month will show an increase of about $400,000
over the net in the preceding year. Vice-President Harahan expects that the work on the Panama Canal and the
growing prosperity of the southern states will make a fur
ther large increase in the traffic and revenue of the road
in the coming year.
Announcement is made by the Automatic Electric Com
pany of Chicago of the closing of a contract for 15,000 au ~-4
tomatic telephones, of the type now in use in Chicago, for
the Havana Telephone and Telegraph Company of H a
vana, Cuba. Of these 5,000 are to be delivered immedi
ately. The automatic instruments are to be installed in 4n
Havana and later on throughout the island of Cuba.
Chicago commission houses are generally on the bull
side of the stock market for at least a short pull. _ A d
vices from New Y o r k are bullish and there are certain in
dications that some of the big interests are working for
higher prices. The talk of increased dividends on several
stocks, the possibility of starting payments on others and
the fact that brokers’ lines of securities are very low are
helpful influences in the upward movement. Another im
portant influence is the approach of the period for Ju ly
interest and dividend disbursements.
Not all the local houses are bullish, however, A.O. Slaugh
ter remaining a stanch believer in the other side of the
market. “ Th ey are trying to work the market up, I sup
pose,” says Mr. Slaughter, “ in the hope of getting some A
of those Ju ly dividends. 1 do not believe, though, that
the movement will go very far or that the public can be
much interested. The fact that the brokerage houses
are carrying small lines of stocks is usually a good argu
ment in favor of higher prices. It indicates that securi
ties are in hands that are able to hold them and protect
them. But I have seen that sign fail and I see no present
evidence of any investment buying. The public, as I know
it, is not interested in the market and is not even interested
in the quotations.”
Some uncertainty regarding a floating debt of the
Corn Products Company has brought forth an official
statement that the current liabilities shown in the recent
report of the company should not be regarded as a float
ing debt and that the only floating debt of the company
is $350,000 borrowed for the payment of the Glucose
stock, which was deposited as collateral for the loan.
■<
President Duntley of the Chicago Pneumatic Tube
Company says that, the company will open a new plant
at St. Petersburg, Russia, on Ju ly 1 and that the Russian
government has already placed some large orders for the
product of this plant. The plants in Berlin, Scotland and
London are all in full operation. The four factories in this
country arc overwhelmed with business and running
nights.
Jam es B. Forgan, president of the First National Bank,
has resigned as director of the Equitable Life Assurance
Company.
Insiders report that the Elgin, Aurora and Southern
and the Aurora, Elgin and Chicago traction companies
are rapidly getting into excellent shape. It is also stated
that a re-financing plan, to consolidate these two com-
Saturday, Ju ly
I, 1905
THE
COMMERCIAL
panies, will be worked out within a year. It is not believed
that dividends will be resumed until the new plan goes
into effect.
William H. Davies, assistant manager of the Chicago
branch of the Bank of Nova Scotia, has been appointed
manager of the Boston branch. He has been in the Chi
cago office thirteen years.
ii
WEST
The New York National
Exchange Bank
West Broadway and Chambers Street,
N E /W Y O R K .
The report at the recent directors’ meeting of the
American Can Company showed that the company’s busi
ness for the quarter was 20 percent larger than that of the
corresponding period in 1904.
The Commonwealth Electric Company has sold to a
syndicate including Russell, Brewster & Co., the M er
chants’ Loan and Trust Company and N. W. Harris & Co.,
$1,000,000 of its first-mortgage 5 percent bonds. The
purchasers share an equal division of the bonds. The
price is not given. Recent sales on the local stock ex
change have been made at 107. The proceeds of the bond
sale will be used by the company for adding more turbine
engines to the Fisk street plant.
A dividend of $3 per share in liquidation of the profit
and loss account of the National Bank of North America
has been declared by the liquidating committee, payable to
stockholders on and after June 23. This is the sixth dis
bursement in the liquidation of the bank, and when paid
the stockholders will have received $136 per share. The
stock of the bank was subscribed for at $125. There will
be further dividends.
The first half of the People’s Gas Company’s fiscal
year is drawing to a close, and the showing both in matter
of gross and net returns'is said to be far in excess of any
pievious six months’ period in its history. Nothing^ is
known as to what position the company will take in resist
ing enforcement of the 75-cent gas ordinance.
The governing committee of the Chicago Stock E x
change has appointed committees as follows:
Finance.— Charles C. Adsit, chairman; Grange Farwell,
R. H. Donnelley, Sidney C. Love, William H. Colvin.
Arrangements.— J. J. Townsend, chairman; A. J. Whip
ple, H enry D. Sturtevant.
Admissions.—William H. Colvin, chairman; C. B. E g
gleston, Finlay Barrell, A. L. Dewar, J. J. Townsend.
Arbitration.—W alter S. Brewster, chairman; Alfred L.
Baker, Robert Pringle, Charles C. Adsit, Finlay Barrell.
Stock List.— Sidney Mitchell, chairman; E dward S. A d
ams, Walter S. Brewster.
_
L a w .— R. H. Donnelley, chairman; Sidney C. Love, A l
fred L . Baker.
_
Printing.— A. J. Whipple, chairman; J. J. Townsend,
H enry D. Sturtevant.
_
Commissions.— A. L. Dewar, chairman; Edward S. A d
ams, J. W. Horton.
.
Clearing House.— C. B. Eggleston, chairman; J. W.
Horton, Robert Pringle.
The governing committee has agreed to suspend busi
ness from Saturday. Ju ly 1, to Wednesday morning, Ju ly 5,
provided the New Y o r k Exchange decides to close Ju ly 3.
The latter will vote on the matter next week, as will the
Chicago Board of Trade and other exchanges.
A serious decline in the stock of the Illinois Brick
Company occurred during the week, the stock selling down
to 55, which is twenty or more points lower than it sold
for early in the year. The failure of Knight, Donnelley &
Co., which had made a “ pet” of this stock, the Grand Ju ry
investigation of this company in connection with labor
graft, and finally the failure of the directors to raise the
dividend rate as expected, account for the demoralization
that prevailed. The explanation of the directors reads:
“ In the regular meeting of the board of directors of
the Illinois Brick Company, held this day, a dividend of
\y 2 percent on the 40,000 shares of its stock was de
clared payable on Ju l y 15, to the stockholders of record
on Ju ly 4, 1905, thereby continuing the policy heretofore
established of paying 6 percent per annum. The business
of the company is very satisfactory, but it is not expected
that the policy of its board regarding dividends, i. e., i j 4
percent quarterly, will be changed until a satisfactory sur
plus has been accumulated.”
Milwaukee M oney Market.
RESOURCES 11 MILLIONS
Unexcelled equipment ior handling Bank accounts and bill
of lading or other documentary drafts.
We Do Not Depend Upon Consignees to Report Arrivals.
FOREIGN EXCHANGE BOUGHT AND SOLD.
T A X L A W S F O R W IS C O N S IN .
(S p ecia l C orresp on den ce to T he C om m ercia l W e s t.)
Milwaukee, June 27.—Taxatio n was one of the big sub
jects successfully handled by the legislature of I 9° 5>
though there was less noise about it this year than in some
of the preceding legislatures. T o establish the ad valorem
system of taxation for all properties coming under the
head of public service corporations was the work of other
legislatures; the general application of the principle fell
to the senate and assembly of i9°5- The legislature which
has just adjourned extended the principle to street and
electric railways and to telegraph companies; its extension
to telephone companies must be taken up by future legis
latures.
. . .
Important bills passed during the last session ot the
legislature follow:
Making the state tax commission a permanent body,
and reorganizing it so that it is to consist of three mem
bers with equal powers and authority, instead of a tax
commissioner and two assistants with all authority vested
in the head commissioner.
T a x in g street railways and electric lines on the ad
valorem basis, the plan to go into effect in 1908; and in
creasing the license for the years 1905, 1906, 1907 from 3
to 4 percent on all roads earning over $400,000, and from
2 L to 3 percent for all roads earning less than $400,000.
T a x in g telegraph companies on the ad valorem basis.
Increasing the license fee on telephone companies
earning over $100,000 from 3 to 4 percent, and on all com
panies earning less than $100,000 from 2j4 to 2j^ percent.
Increasing the gross earnings tax of trust companies
from 2 to 3 percent.
Amending the law creating the office of county super
visor of assessments, and making it obligatory upon the
counties to employ such an officer at a sum not less than
$3 a day.
Amending the law providing for an ad valorem tax
upon railroads so that the license fee tax shall apply for
two years while the ad valorem suits are pending, and in
creasing the delinquency penalty on all roads from 10 to 15
percent.
C H IC A G O M O N E Y M A R K E T .
(S p ecia l C orrespon den ce to T lie C om m ercial W e s t.)
The local money market is practically unchanged from
the weak conditions prevailing last week. The prevailing
demand is poor, and some of the heaviest ordinary cus
tomers are not giving to the banks the usual volume of
business. This has one redeeming feature, in that the
class of loans which might get a 3¿4 or even a 3 ^ percent
rate is relatively less now than the classes which pay 4 to
5 percent. The usual rate among commercial banks is 4L2
percent, while even the counter business is 4 L to 5 per
cent. The lowest loans are not placed for over three
months. The ease of money in N ew Y o r k together with
the ill effects the teamsters’ strike has had on local trade,
make it a struggle for the local banker to keep up rates.
Deposits are at high water mark.
(S p e cia l C orresp on den ce to T h e C om m ercia l W e st.)
Milwaukee, June 27.— With the advance of summer,
business continues to show material improvement and
all lines report an increased trade. Collections have also
gained and there is a decidedly better feeling in business
circles. The money market is easy at 5 and 6 percent per
annum for time paper and 4J4 and 5 percent for call loans,
with offerings in excess of the demand. Clearings for the
week were ‘$7,486,628 and balances $991,511, against $6,445,953 and $827,220 the same week last year and $ 7,79L"
735 and $1,007,435 in 1903.
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Federal Reserve Bank of St. Louis
WELLS & DICKEY CO.
FIRST MORTGAGE FARM LOANS.
These loans made only a fter a personal examination
o f the property in each instance.
An assortment of HIGH G R A D E BON DS on hand.
Established 1878.
Bank Floor, Guaranty Building, M INN EAPOLIS.
THE
12
COMMERCIAL
WEST
Saturday, Ju l y
i, 1905
■V
WATSON & COMPANY,
BROKERS
Chamber of Commerce, M inneapolis
S to ck s,
B o n d s,
M
NEW YORK STOCK EXCHANGE.
CHICAGO STOCK EXCHANGE.
WINNIPEG GRAIN EXCHANGE.
— 24
Broad Street, N ew Y o rk
O r a ix i,
ec
3M 3E5
•¿1
P r o v is io n s ,
æ aa »
CPIICAGO BOARD OF TRADE.
NEW YORK PRODUCE EXCHANGE.
DULUTH BOARD OF TRADE.
Private Wires to Chicago, New York and Other Cities.
MINNEAPOLIS CHAMBER OF COMMERCE.
ST. LOUIS GRAIN EXCHANGE.
NEW YORK COFFEE EXCHANGE.
TELEPHONE C A L L S
M ain 9 0 6 and M a in 5 1 7 .
THE INVESTOR AS A BULL FORCE.
By Henry D. Baker, of Chicago.
“ After us the deluge” —is possibly the idea that certain
persons in prominent connection with recent sensational
financial scandals had in mind during the period of their
having administered soft grafty balms to their itchy
palms. The deluge they produced came quicker than
doubtless they ever dreamed of; it overtook Wall Street
at a time when the sky looked remarkably clear; it car
ried away not only men’s reputations but also the margins
of those who were committed to an extent more than was
prudent, to the bull side; it washed away numerous
boomlets through the stock list and quenched a number of
incipient, speculative, roaring conflagrations; it impressed
the general public which had been preparing to enjoy a
pleasant summer season amid the aerial and equatic at
tractions of Wall Street, with the idea that it was on the
shore of something not unlike the B ay of Fundy, where
the tide sometimes rises faster than men can run away.
But now that Wall Street has had this deluge, the
question arises— after this, what? Will the market show
verdant, wholesome signs of public interest, with the air
clear and pure as after a storm, or will there be a miasma
overhanging the situation, that will mean sickness for all
who breathe the atmosphere of Wall Street?
There is much in the developments of the last few days
to favor belief in the optimistic view. It looks very much
at present as if the market was now to go on wifh the
progress that was cut short four months ago by a series
of untimely incidents, the memory of which it is now more
pleasing to drop than to vividly recall.
T h e B u rd e n o f P r o o f on th e
B e a r.
The stock market, barring accidents and unpleasant
incidents, is nearly always more naturally and logically a
bull than a bear affair. This is primarily for the reason
that it is human nature to be hopeful and optimistic.
Public opinion will as a rule require the pessimist rather
than the optimist to furnish the burden of proof as to
beliefs expressed. Then again this nation in normal, pros
perous times increases enormously in wealth, and wealth
always carries with it the idea of power to invest. A l
though it is true that many forms of wealth represent not
free capital with investment power, but instead property
which absorbs free capital to take care of it, nevertheless
as a rule increasing wealth means increasing returns from
wealth, and increased need of finding favorable channels
for investment, which in turn tends to elevate the values
for property offering attractive inducements to investors.,
An investor’s market may be a wholesome prelude to a
less wholesome speculator’s market. L ast summer and fall
there was a wholesome investors’ market, and afterwards
F IR S T N A T I O N A L P IC K S A R C H I T E C T .
The First National bank of Minneapolis has selected
Robert W. Gibson of New York, architect of the New
Y o r k Clearing House, United States Trust Company
building, the Greenwich Savings bank and the buildings
of a number of other prominent eastern financial institu
tions, to design the building which it will erect at the
corner of First avenue south and Fifth street. Mr. Gibson
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Federal Reserve Bank of St. Louis
many speculators who had decried and ridiculed the up
ward movement got in on it, on the theory of “ better late
than never." The same thing is liable to happen this year
— provided no more accidents nor perturbing incidents oc
cur.
In c re a s e d G o ld S u p p ly a n d In c re a s e d P ric e s .
Financial authorities in discussing the enormous in
crease in the world’s supply of gold have laid considerable
stress on the argument that this constitutes an important
argument for higher prices. Some authorities point out
however the danger of credits outstripping increasing gold
reserves. This whole subject was very intelligently dis
cussed recently by Frank A. Vanderlip, who said in part:
Last y e a r ’s total p rod u ction o f gold reached the enorm ous
figure o f $340,000,000. There w as a d irect gain in the gold
reserves of the E uropean cen ters of $205,000,000 and a gain in
the U nited S tates of $91,000,000, m ak in g the effectiv e gain in
the reserve in the w orld ’ s com m ercia l cen ters alm ost $300,000,000. N o one can d oubt that this ex tra ord in a ry increase in
the p rod u ction o f gold is having, and will continue to have,
an influence uopn prices.
T he d irector o f the m int has calcu lated that an allow ance
o f ab ou t $76,000,000 should be m ade an nu ally fo r the am oun t
o f gold g oin g into industrial uses. W ith the total p rod u ction
o f $340,000,000 then it w ou ld seem that there is w ell ov er $250,000,000 o f fresh gold from the m ines lik ely to arrive at the
m on etary reserve cen ters each year. W h en it is rem em bered
that the total am ou n t o f gold in the a ssocia ted banks of
N ew Y ork, is $200,000,000, it will be seen that this sum o f new
gold bears an im porta n t relation to reserve stock s o f the
world, and
it can not be d oubted that this in crease in gold
reserves is h a v in g a d istin ct influence on the cou rse o f prices.
T he ou tlook certain ly fa v ors a con tin u a n ce of the p resent
large scale of gold production. T he g reat reserve reservoirs,
the w orld ’ s financial centers, from w h ich enterprise in large
m easure derives life and energy, seem likely to be fed b y these
flow in g stream s o f new gold fo r som e years. T h ose people w ho
are fa m iliar w ith the con d ition s in the R an d a n ticip a te that
that d istrict alone will soon p rod u ce $150,000,000 annually.
T h ey feel that they know w ith a c c u r a c y w h at the ground c o n
tains, and they express b elief that the R and will prod uce in
the n eigh borh ood o f $150,000,000 an nu ally until it yields a
total of b etw een $4,000,000,000 and $5,000,000.£)00.
N o m a tter h ow rapidly g old reserves increase, h ow ever, the
dem ands for credit m ay easily run ahead and build a stru ctu re
too larg sa fety to stand on the gold fou nd ation. A t the p re s
ent m om en t gold reserves, large as th ey are in the U nited
States, are not relativ ely large w hen com pared w ith the am oun t
w h ich banks ow e in the form o f deposits.
I have no d oubt that the present price level has been in a
measure^ the result o f the increase in g old stock s, and that
fu rth er increase in gold reserves w ill h a v e a ten d en cy fu rth er
to ad v an ce prices. T h at tendency, h ow ever, it m ust not be
forg otten , m ay be interfered w ith and m ay be en tirely c ou n ter
acted. or m ore than cou n teracted b y oth er influences, so that
it bv no m eans follow s that p rices are to continue to rise m e re
ly becau se a golden flood seem s likely to continue to com e
from the m ines.
However, the fact that our nation is steadily and enor
mously gaining in real wealth, that which gold only
measures, is a far more important bull argument than the
mere fact that the gold yardstick of measuring values has
increased.
So long as times continue good—and this depends
chiefly on the crops and absence of great labor troubles,
etc., the wealth of the country will increase, and barring
temporary effects from episodes of a distressful character,
the values of securities will increase.
has a wi de reputation as an architect of bank buildings,
specializing in work of this character, and the new home
of the First National will undoubtedly prove a worthy
addition to the number of beautiful bank structures which
Minneapolis now boasts.
On present scale National Biscuit earnings for 1905 will
be the best in the company’s history.
n
•w
*
Saturday, Ju l y
i,
1905
THE
COMMERCIAL
WEST
13
F. A . C H A M B E R L A IN , Prest.
P E R R Y H A R R I S O N , V ice-P rest.
E. F. M E A R K L E , V ice-P rest.
J. S . P O M E R O Y , Cashier.
F R E D . S P A F F O R D , A sst. C a sh .
G E O R G E L A W T H E R , A sst. C ash .
T H E S E C U R IT Y B A N K OF M IN N ESO TA
M IN N E A P O L IS , M IN N E S O T A
S T A T E M E N T OF C O N D I T I O N A T C L O S E OF B U S I N E S S M A Y 2 9 t h , 1 9 0 5 .
RESOURCES:
L oa n s and D isco u n ts............................................... $8,132,602.24
O v e rd ra fts.......................................................................
7,890.60
U. S. and other bonds, sto ck s and se cu ritie s ..
142,677.39
R eal E state ..................................................................
59,692.51
C ash on hand, an d due fro m b a n k s ,..............
2,688.845.48
T ota l
........................................................................ $11,031,708.22
L IA B IL IT IE S :
C apital paid in, .......................................................... 1,000,000.00
Surplus and un divided p rofits..............................
632,991.78
D e p osits........................................................................... $9,398,716.44
T ota l
......................................................................$11,031,708.22
F O R E IG N E X C H A N G E B O U G H T A N D S O L D
Travelers’ Letters of Credit and Travelers’ Checks good the world over issued
FAILURE OF KNIGHT, DONNELLEY & CO.
(S p e cia l C orresp on den ce to T he C om m ercia l W e st.)
Chicago, June 27.-—The failure of the well known firm
of Knight, Donnelley & Co. of this city, is a cause of pro
found regret amongst the numerous friends of this firm.
There are probably no two members of the Chicago
Stock E xchange who stand higher in the estimation of
other members and of L a Salle street than Newell C.
Knight and Reuben H. Donnelley.
The three creditors named in the bankrutcy petition
and the amount of their claims are:
Jam es P. Soper, president of the Soper Lumber Com
pany, 723 Laflin street, $5,000.
Marvin A. Farr, real estate dealer, 204 Dearborn street,
$7,000.
Thomas Day, superintendent of the R. R. Donnelley &
Sons Company, $4,000.
The petition reads in part as follows:
“ That Knight, Donnelley & Co. is a firm dealing in
stocks and bonds. A large number of stock and grain
transactions in which it is interested are of such a charac
ter on the different boards of trade and stock exchanges of
this country that if a receiver is not appointed to take
charge thereof and to attempt to realize thereon at once,
under the rules of the boards and exchanges, the transac
tions will be closed out at a great sacrifice, and that the
said estate will suffer a great and irreparable loss. The
NEW
R U LE FOR B AN K
D IR E C T O R S .
W. B. Ridgely, comptroller of the currency, has adopt
ed a little plan which, report says, is causing some com
motion in certain national banks throughout the country.
Responses to letters written by the comptroller concerning
laxities or errors in national banks must now be signed
by all the directors.
Mr. Ridgely for years has been urging that the cure
for bank failures is to compel bank directors to direct. Fie
has pointed out that in many cases where banks have
failed it has been shown upon investigation that the di
rectors of the institution were not in touch with its w o rk
ings. The new rule is for the purpose of making each
director cognizant of any criticisms by the comptroller.
W isconsin Taxes Increased.
(S p ecia l C orresp on den ce to T h e C om m ercia l W e st.)
Milwaukee, June 27.— The board of assessors, by a vote
of 14 to 10, raised the assessment yesterday of the Mil
waukee Gas Light Company from $3,250,000 to $6,000,000.
This is an increase of $2,750,000 compared with last year.
The property is assessed in the Seventh ward as the main
office of the company is located there. The matter will
come up for ratification before the board of review, which
meets on Monday. Speaking of the increase in assess
ment last night, T a x Commissioner Bruce said: “ We
practically doubled the assessment of the gas company
two years ago. The assessment was then raised from $1,700,000 to $3,250,000. It was not, however, until this year
that I have been able to dig much beyond the value of the
physical property and penetrate into the history, capital
ization and earnings of the company. This was absolutely
necessary in order to get at any valuation the corporation
might possess, over and above the actual physical property,
or in other words arrive at the value of the franchise.”
The Tim es of Argentina of M ay 15 states that the R e
public raises 6,000,000 tons of cereals per annum, while the
• storage or warehouse accommodation does not exceed
200,000 tons.
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Federal Reserve Bank of St. Louis
aggregate of the said transactions is in excess of $200,000.”
The petition further declares that there is outstanding
$250,000 in various kinds of stock, bond and b-iard of trade
transactions all over the United States.
M. H. Whitney, attorney for the firm, says:
“ The proceeding is a friendly one in a way. The mem
bers of the firm realized the crisis was near at hand and
they believed, the market now being •strong, the filing of
the petition at this time would be most beneficial to the
creditors. If the filing of the petition had been delayed
the market might have been in a poorer condition and a
great sacrifice suffered by some of the creditors.
“ I don’t exactly know what brought on the failure
except that the firm was gradually losing money in its
transactions, and something had to be done by the credi
tors. I now have six men at work on the books and ex
pect to learn within a short time exactly what the condi
tions are.
“ The banks are not going to force things, for they are
amply protected. The First National and the Continental
National, with several other banks, are holding collateral
sufficient to cover margins of over $100,000, I understand,
and if the banks should elect to close up everything to
morrow they would realize over and above the amount
called for.”
Edward C. Potter was appointed receiver.
W E S T E R N B A N K E R S ’ C O N V E N T IO N S .
Ju ly 7 and 8— North Dakota— Grand Forks.
Ju ly 12 and 13— Wisconsin—Ashland.
Ju ly 20, 21 and 22—Washington— Portland.
October 12 and 13 — Montana.
BANK
CLERKS’
C O N V E N T IO N .
American Institute of B ank Clerks, Minneapolis, Ju ly
21, 22, 23.
American Bankers’ Convention.
The American B ankers’ Association anticipates that
the Capitol of the United States' will be a big drawing
card for the annual convention of the organization which
will be held in Washington, October 24 to 27 inclusive.
Addresses will be made by many of the most prominent
bankers and financiers of the country. The membership
of the American Bankers’ Association now numbers about
7,500. It represents a larger aggregate of capital than any
other organization in the world.
Iowa Banks Gain.
The compilation of the last reports of the state banks
of Io wa show that the deposits have increased over $15,000
in the last four months and about $30,000,000 in the last
year. This is the largest gain in deposits in a similar time
in the history of Iowa.
The early sown winter wheat is heading out and gives
every promise of making a record crop. E ven the latest
sown looks well, but has not stooled out to the same ex
tent as the early sowing. There has been a difference of
opinion, heretofore as to whether early or late sown fall
wheat succeeded the best. The opinion is now universally
in favor of early sowing. W. R. Dobbie’s 1,200 acres of
fall wheat present an imposing spectacle. Mr. Dobbie ex
pects to harvest 30,000 or 40,000 bushels.
Pig iron production for first half of 1905 will break all
records,
t
u
t
?
MARWI CK,
r n u A / n ? D
r T
at
T ,,m
w t t q t
MITCHELL &
t
r^ n e
CO.
CHARTERED ACCOUNTANTS.
79 Wall Street, N E W YORK.
CHICAGO
TOLEDO
D IV ID E N D S .
The E a st River National Bank lias declared a dividend
of 3 percent, payable Ju ly i.
N ew Y ork.— The Hamilton Bank has declared the reg
ular semi-annual dividend of 3 percent.
New Y ork.—The Garfield National Bank has declared a
quarterly dividend of 3 percent, payable June 30.
The Merchants’ Exchange National Bank has declared
a semi-annual dividend of 3 percent, payable Ju ly I.
Boston.— The Granite Railway Company has declared a
dividend of 2 percent payable Ju ly 1 to stock of record
June 26.
New Y ork.—The National Bank of North America has
declared a dividend of 4 percent on the capital stock, pay
able Ju ly 1.
New Y ork.— The Standard Trust Company has de
clared the usual semi-annual dividend of 5 percent, pay
able June 30.
Boston.— The Androscoggin Mills Company has de
clared a dividend of 4 percent payable Ju ly 1 to stock of
record June 22.
Boston.—The Naumkeag Steam Cotton Company has de
clared a dividend of 2 percent, payable Ju ly 1 to stock of
record June 19.
Boston.— The Arlington Mills Company has declared a
regular semi-annual dividend of 4 percent, payable Ju ly 1
to stockholders of record June 22.
Philadelphia.— A dividend of 2j^ percent has been de
clared on the stock of the Little Schuylkill Railroad, pay
able Ju ly 14 as registered June 21.
Boston.— The directors of the Revere Rubber Company
have declared the regular quarterly dividend of 2 percent,
payable Ju ly 1 to stockholders of record June 21.
The Dupont International Powder Company has de
clared a quarterly dividend of 1 percent on the preferred
stock, payable Ju ly 1 to stock of record June 20.
Spokane, Wash.— The Washington Water Power Com
pany has declared the regular quarterly dividend of 1 ^
percent, payable Ju ly 1 to holders of record June 20.
New York.—The Mexican Telegraph Company has de
clared the regular quarterly dividend of 23/2 percent, pay
able Ju ly 14. Books closed June 30 and reopen Ju ly 15.
N ew Y ork.— The Southern Pacific has declared the
regular semi-annual dividend of 3^2 percent on its pre
ferred stock, payable Ju ly 17 to holders of record June 26.
Philadelphia.— The Bell Telephone Company of Phila
delphia has declared the regular quarterly dividend of
i ]/2 percent, payable Ju ly 15 to holders of record Ju ly 5.
Boston.— The directors of the Edwards Manufactur
ing Company have declared a semi-annual dividend of 2
percent, payable Ju ly 1 to stockholders of record June 22.
Cincinnati, O.—The Proctor & Gamble Company has
declared the regular quarterly dividend of' 2 percent on its
LONDON
130 Temple Court, M I N N E A P O L I S
preferred stock, payable Ju ly 15 to holders of record June
20.
New Y ork.—The Old Dominion Steamship Company
has declared the regular semi-annual dividend of 3 percent
payable Ju ly 1. Books closed June 20 and will reopen
Ju ly 1.
. . . .
This is reduction of 1 percent from the previous divi
dend, payable in January and a reduction of 2 percent
from the amount declared at the corresponding period
last year.
Chicago.—The Knickerbocker Ice Company declared
the usual semi-annual dividend of 3 percent on its pre
ferred stock, payable Ju ly 3. Books closed June 22 and re
open Ju ly 5.
N ew Y ork.—The Hall Signal Company has declared
the regular quarterly dividend of V/2 percent on its com
mon stock, payable Ju ly 1. Books closed June 26 and
reopen Ju ly 5.
Boston.—The R. S. Brine Transportation Company has
declared the regular semi-annual dividend of 3% percent
on the preferred stock, payable Ju ly 1, 1905, to stock of
record Ju ly 1.
N ew Y ork.—The Central & South American Telegraph
Company has declared the regular quarterly dividend of
1^2 percent, payable Ju ly 7. Books closed June 30 and
reopen Ju ly 8.
New Y ork.— The Tennessee Coal & Iron Company has
declared a regular quarterly dividend of 1 percent on the
common stock, payable Aug. 1. Books close Ju ly 10 and
reopen Aug. 2.
N ew Y ork.—Wells, Fargo & Co. have declared regular
semi-annual dividend of 3 percent and an extra dividend
of 1 percent, payable Ju ly 15. Books closed June 30 and
reopen Ju ly 17.
New Y ork.— The Tefft-Weller Company has declared
the regular quarterly dividend of
percent on its pre
ferred stock, payable Ju ly 1. Books closed June 24 and
reopen Ju ly 20.
TELEPHONES
MAIN 2 0
MAIN 4 6 8 7
AUTOM ATIC 2 7 0 7
Fritz Von Frantzius
Ben Marcuse
PRIVATE W IR E S
VON FRANTZIUS
&
BA NK BURGLARY IN SU R A N C E
IN MARYLAND CASUALTY C O ., Assets $3,062,471
0 0 .
SURETY BONDS FOR BANKS
IN BANKERS SURETY CO., Assets $694,228
FRED S . BRYANT C O ., 403 Pioneer Press Building, S T . PAUL, M INN.
Northwestern Managers for Minnesota, North and South Dakota
0investm ent in P in e T im b e r.
FOR S A L E : —The holder of an interest in a local syndicate owning
a large tract ofiof standing pine timber is in need of funds to protect
other interests and will sell any part of $5,000 of the stock represent
ing his original investment at a figure much below its actual value.
The timber was bought some years ago, has increased greatly in
value, and this stock is really worth three times its par value today. An
unusual opportunity to get into one of the best things in the country.
Address “ PINE TIMBER,” care of Commercial West.
n ? .
A
.
J A
M
I E
X
S O
Bankers and Brokers
Chicago
MEMBERS
Chicago Stock Exchange, Chicago Board of Trade
I V
STOCKS, BONDS, GRAIN
and COTTON
C H O IC E F I R S T M O R T G A G E L O A N S
R E A L E S T A T E A N D IN S U R A N C E
M A N A G IN G E S T A T E S A S P E C I A L T Y
Correspondence Solicited
Telephones, Tw in City 2465
Northwestern Main 2010
£ 05 Andrus Building
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Federal Reserve Bank of St. Louis
MINNEAPOLIS, MINN,
Stock Exchange Building
112 La Salle Street
CHICAGO
ASK
FOR
OUR
STA T IST IC A L
CARDS
Saturday, Ju ly
A
THE
î, îpûS
COMMERCIAL
WEST
15
The F irst National Bank of Minneapolis
UNITED
STATES
DEPOSITORY
S T A T E M E N T O F C O N D IT IO N M A Y 2 9 , 1905 .
L IA B IL IT IE S :
RESOURCES:
L oa n s an d D iscou n ts, ........................................
R ailroad and O ther B o n d s ................................
U nited S tates B onds, a t p a r ,. . . .1,050,000.00
C ash on H and an d D ue from
B an ks, ......................................... 3,866,587.45
$10,079,170.96
418,715.00
4,916,587.45
$15,414,473.41
T otal,
$ 2 , 000, 000.00
C apital S to ck ................................
S urplus.............................................
U ndivided P rofits.......................
C ircu la tion ......................................
D ep osits...........................................
U nited S tates B ond A ccou n t,
1.400.00. 00
127,781.19
S47,995.00
10,838,697.22
2 0 0 . 0 0 0 . 00
$15,414,473.41
T ota l,
r
OFFICERS *
F. M . PRINCE, President
C. T .J A F F R A Y , Vice-President
GEO. F. ORDE, Cashier
D. M A C K E R C H A R , Asst. Cashier
E R N E ST C. B R O W N . Asst. Cashier
THE OMAHA BANK MERGER.
(S p e cia l C orresp on den ce to T he C om m ercia l W e s t.)
Omaha, June 26.—The consolidation of the United
States National, the Commercial National and the Union
National banks, the plan of which was consummated and
announced last week, is still the subject of paramount in
terest in local financial circles. The prevailing opinion
seems to be that the merger will have a very slight effect
on the general banking situation in Omaha. There will,
in all probability, be some little scattering of accounts by
which the other banks will profit, but the new institution
will retain the bulk of the business of its component banks.
In the matter of bank clearings, Omaha will suffer for the
exchanges between five national banks cannot possibly be
as great as the exchanges between seven national banks,
even though one of them has absorbed all the business of
the two that are extinguished.
M e rg e r W i l l P ro v e E c o n o m ic a l.
>*
In point of economy the proposed merger should ac
complish much. It will do away with the maintenance of
two banking houses and cut off several big salaries, to say
nothing of a reduction of the clerical force. The experi
ence in other cities has been that the consolidated bank
has managed to hold anywhere from 75 to 90 per cent, and
in a few cases 95 per cent, of the business of the consti
tuent parts.
The consolidation of the three banks was facilitated
and rendered easier by the fact that neither the Union
National or United States National owned banking houses,
which left them free to relocate without having a build
ing on their hands to dispose of. The other Omaha banks
all have their own buildings, which would prove an ob
stacle in the way of consolidation.
H is t o r y
>s
>■
o f th e
B anks.
W hat is now the United States National bank was or
ganized in 1856 as the banking firm of Barrows, Millard &
Company. This firm underwent several changes and in
1883 the United States bank was organized out of it, with
a capital of $100,000. Milton T. Barlow is the only one of
the organizers now alive. He was made cashier at the
organization and served in that capacity until 1897, when
he became president. The capital has been increased from
time to time until it is now $400,000.
The officers of the United States National bank are:
M. T. Barlow, president; V. B. Caldwell, cashier; W. E.
Rhoades, assistant cashier; L. M. Talmage, assistant cash
ier. Thç directors are: N. A. Duff, Euclid Martin, B. F.
bmith, S. S. Caldwell, M. T. B arlow and V. B. Caldwell.
The Commercial National bank was organized by Ezra
Millard April 7, 1884, with a capital of $250,000. T w o
months and a half after its organization the capital stock
was increased to $300,000. In 1889 the capital stock was
increased to $400,000. The present officers are: C. W.
Lyman, president; William G. Maul, vice-president; A.
Millard, cashier. The board of directors consists of E.
M. Andreesen, Guy C. Barton, E. M. Morsman, W. W.
Morsman, Charles Turner, C. E. Yost, William G. Maul,
A. Millard and C. W. Lyman.
T he Union National bank was organized in Ju ly of 1886.
The capital was $100,000. In November of 1889 consoli
dation was effected with the Douglas County bank. In
Merchants-Laclede National to Increase Capital.
Directors of the Merchants-Laclede National, St Louis,
have decided to increase the capital stock of the bank by
the issuance of 3,000 additional shares. The issue is to pro
cure purchase money for the Laclede building and defray
expenses of remodeling the banking room and other parts
of the building. The value of the issue is placed at $900,000, $300 a share and increases the capital to $1,700,000,
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Federal Reserve Bank of St. Louis
1892 G. W. Wattles came in as vice president and the cap
ital was increased from $100,000 to $250,000. In December
of 1895 the institution absorbed the American National
bank.
Officers of the Union National bank are: G. W. W a t
tles, president; W. A. Smith, vice president; J. W. Thomas,
cashier; H. E. Rainey, assistant cashier. The members of
the board of directors are: G. W. Wattles, W. A. Smith,
Sumner Wallace, J. W. Thomas, Frank Marsh, A. L.
Reed, W. S. Balduff.
The
F in a n c ia l S ta te m e n t.
The reports of the three banks M ay 29 to the comp
troller of the currency are as follows:
U n ite d
S ta te s
N a t io n a l.
R esou rces—
$2,938,492. 63
T im e loan s ..........................................
100..00
R eal estate ..........................................
100..00
Stocks, securities, e t c .......................
100..00
P rem iu m s .............................................
100..00
F u rn itu re an d fixtures ..................
98,000..00
United. S tates bon ds (circu la tion )
C ash .................................................................. $ 562,507.81
Call loans ........................................................
281,569.01
52,000.00
U nited S ta tes bon ds .................................
Eixchange ........................................................ 1,192,525.30 2,088,602. 12
$5,125,494. 75
L ia b ilities—
C apital sto ck . . .
S urplus ........
U n d ivided profits
C ircu lation ........
D ep osits ...............
.$
400,000. 00
100,000. 00
120,331. 32
98,000. 00
. 4,407,163. 43
.
$5,125,494. 75
C o m m e r c ia l
N a t io n a l.
R esou rces—
L oa n s an d d iscou n ts ......................................... ,
O verdrafts ...............................................................
U nited S tates bon ds ........................................
O ther b on d s ..........................................................
W a rra n ts ............................... ............................... .
B a n k in g hou se .....................................................
O ther real estate ................................................
P rem iu m s ...............................................................
C ash and sigh t e x c h a n g e ................................. .
D u e from, United: S tates tre a su r e r ................
.$1,298,169. 29
10.017. 11
300,000. 00
103,760. 00
11,817. 73
.
175,000. 00
20,927. 47
12,000. 00
.
798,027. 41
21,900. 00
.
.
$2,751,619.,01
L ia b ilities—
C apital ................ .
Surplus ................
U ndivided profits
C ircu lation ..........
D ep osits ...............
.$ 400,000.,00
80,000..00
25,095,.19
.
300,000..00
. 1,946,523,.82
$2,751,619 .01
U n io n
N a t io n a l.
R esou rces—
L oan s and d iscou n ts ........................................................
O v erd rafts ........................................................................ .*.
U nited S tates and oth er b o n d s ......................................
U nited S tates trea su rer ..................................................
R eal estate ............................................................................
F u rn itu re and fixtures .......................................... .
Cash and sight e x c h a n g e ........................... ....................
.$1,142,830 .34
27 .87
293,162 .50
2,500 .00
1 .00
1 .00
.
600,643 .18
.
$2,039,165 .89
L ia b ilities—
C apital ................
Surplus ..................
U n d iv ided profits
C ircu lation ..........
D ep osits ...............
.$ 250,000 .00
60,000 .00
10,220 .40
50,000 .00
.. 1,668,945 .49
$2,039,165 .89
which with a $1,600,000 surplus makes a total of $3,300,000.
All stock not subscribed by other stockholders the direc
tors have agreed to take.
Illinois has on deposit in its 344 national banks $273,650,856, with more than half of it in Chicago institutions.
The total resources of the Illinois banks is given as $559,243,251.
THE
i6
A. H. WIGGIN, Vice-President
Saturday, Ju ly
O F T H E C IT Y O F N E W Y O R K
E. J. STALKER, Cashier
U NITED
S. H. MILLER, Asst. Cashier
H. K. TWITCHELL, Asst. Cashier
WEST
T I jb C lja s c G a t t o n a i B a n k
A. B. HEPBURN, President
C. C. SLADE, Asst. Cashier
COMMERCIAL
STATES
DEPOSITA R Y
(M A Y 29, 1905)
C A P I T A L ............................................................................$ 1 , 0 0 0 , 0 0 0
S U R P L U S A N D P R O F IT S (E A R N E D ) - 4 ,3 9 9 ,4 8 7
D E P O S I T S ............................................... - 6 2 ,5 7 6 ,6 6 7
I,
1905
DIRE CTO RS
H. W. CANNON, Chairman
OLIVER H. PAYNE
GRANT B. SCHLEY
GEORGE F. BAKER
JAMES J. HILL, St; Paul, Minn.
A. B. HEPBURN
JOHN I. WATERBURY
A, H. WIGGIN
TWIN CITY BANK SURPLUS AND CAPITAL.
The following tables, based on the bank statements of
M ay 29, show the relation which the surplus and undivided
profits bear to the capital of the various leading Twin
City financial institutions. In this particular the First N a
tional leads among the Minneapolis banks, its surplus and
profits being approximately 75 percent of the capital stock,,
while the Northwestern National, the German American,
St Anthony Falls and Security and South Side State are
not far behind, the percentage of surplus to capital in each
case being over 600.
The First National of St. Paul stands first among the
banks of that city with 89 percent, the German American
ranking second with a percentage of 75.
M in n e a p o lis .
Capital.
F irst N ational ................ $2,000,000
S ecu rity ............................. 1,000,000
v
Surplus
and
P rofits.
$1,527,000
633,000
P e rcen t o f
Surplus and
P rofits
B ook
to
V alue. C apital.
176
75
163
63
N orth w estern N ation al.
N at. B k. o f C o m m e r ce ..
S w ed ish -A m erica n N at.
St. A n th on y F a lls ..........
G erm a n -A m erica n ........
M innesota N a tio n a l........
S outh Side S ta te ..............
P eoples ...............................
G erm ania ..........................
1,000,000
1,000,000
250,000
125,000
100,000
200,000
50,000
60,000
50,000
S t.
712,000
341,000
146,000
83,000
67,000
9,000
31,000
13,000
24,000
171
134
158
1-66
167
105
161
121
148
71
34
58
66
67
5
62
21
48
P a u l.
C apital.
M erch ants N a tio n a l........ $1,000,000
F irst N ational ................
1,000,000
N a tion al Ger. A m ............ 1,000,000
St. P aul N ational ..........
600,000
S econ d N ational ............
400,000
A m erican N ational . . . .
200,000
S cand inavian A m erican
100,000
C apital B an k ..................
100,000
Surplus
and
P rofits.
$367,000
892,000
371,000
82,000
77,000
29,000
75,000
55,000
P ercen t of
Surplus and
P rofits
B ook
to
V alue. C apital.
37
137
189
89
37
137
14
114
19
119
14
114
175
75
155
55
CHANGES IN SWEDISH AMERICAN NATIONAL.
The resignation of F. A. Smith from the cashiership and
the directorate of the Swedish American National bank
of Minneapolis has necessitated important changes in the
official list and the board of directors of that institution.
The vacancy among the directors has already been filled
by the election of C. S. Pillsbury, with the PillsburyWashburn Flour Mills Company, and son of the late C. A.
Pillsbury as Mr. Smith’s successor.
T o succeed Mr. Smith as cashier, the directors have
selected E d g a r L. Mattson, who has held the position of
THE
N A T IO N A L
BANK
R ETU RN S.
The Comptroller of the Currency last week published
his compilation showing the condition of national banks in
the United States on M ay 29. Figures of the report were
published in these columns on Tuesday, and are here re
peated for reference. Important changes from the state
ment of March 14 were as follows:
Inc.
D ec.
L oa n s an d d isco u n ts ....................................... $47,311,855
..............
C ash and reserves ......................................... 8,110,416
..............
D u e to oth er ba n k s
......................................................
$21,957,083
D ue tru st com p an ies and savin gs b a n k ». 7,281,040
..............
Individu al d eposits ......................................... 6,184,408
..............
C om p ared w ith a y e a r a g o (June 9) th e sam e item s sh ow
up as fo llo w s:
Inc.
D ec.
$304,156,861
..........
L oan s an d d iscou n ts
$9,128,269
C ash reserves .................................................. ......................
D u e to oth er banks .......................................... 88,175,102
..............
D u e tru st com p an ies and sav in gs b a n k s. 1,107,547
..............
Ind ividu al d eposits ....................................... 471,218,659
..............
The figures of the report are as follows, compared with
the corresponding items of March, and of a year ago:
M ay 29, 1905. M arch 14, 1905. June 9, 1904.
L oa n s an d d is c o u n t s ..$3,899,170,328 $3,851,858,473 $3,595,013,467
D u e oth er nation al
702,246,470
790,421,572
812,376,655
b a n k s ........................
D ue sta te banks and
283,670,678
325,349,412
318,788,439
bankers ....................
D u e tru st co m p a n ie s
392,717,485
386,543,992
an d sav in gs b a n k s . 393,825,032
33,515,194
37,572,634
37,916,423
D u e reserve a g e n t s ...
3,312,439,841
3,777,474,006
Individu al d eposits . . . 3,783,658,494
103,014,690
84,705,236
65,570,520
U n ited S tates d eposits
D ep osits o f U. S. d is
7,328,802
8,517,158
9,727,823
b u rsin g officers . . . .
488,664,145
483,249,060
479,635,070
S pecie .............................
169,729,173
157,904,573
169,629,979
L eg al tenders ..............
658,393,318
649,265,049
641,153,633
T ota l cash ....................
MINNESOTA
FARM MORTGAGES AT
6 PER C E N T
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Federal Reserve Bank of St. Louis
assistant cashier with the German American for nine years.
Mr. Mattson’s appointment becomes effective today, Ju ly 1.
The position of assistant cashier, left vacant by Mr. Matt
son’s promotion will be filled by Alexander V. Ostrom,
who has been paying teller for two years. Both men
started as messengers and have advanced, thru merit, to
their present positions.
Mr. Mattson has been connected with the bank since its
organization in 1888. Mr. Mattson is a son of the late
Hans Mattson, former secretary of the state.
Mr. Ostrom has been connected with the bank seven
years and has advanced rapidly.
Important items in the report compare as follows for
the corresponding date during a series of years:
1905
1904
1903
1902
1901
1900
1899
1898
1897
1896
1895
1894
......................................
L oans.
Cash. Indiv. deposits.
$3,809,170,328$649,265,049$3,783,658,494
3,505,013,467658,393,3183,312,439,841
3,415,045,751552,209,2073,200,993,509
3,221,859,631569,618,2003,098,875,772
2,956,906,375540,800,1672,941,837,429
2,623,512,201502,964,2372,458,092,758
2,492,230,584491,749,9812,522,157,509
2,151,757,656
470,977,098 2,023,357,160
1,966,891,501413,518,6221,770,480,563
1,970,098,833349,380,0981,687,629,515
2,004,475,559382,942,3661,736,022,007
1,933,589,353438,931,9701,677,SOI,201
B A N K IN G N O T E S .
Raymond, Minn.-—The State Bank building was dam
aged by fire.
Marshalltown, la.— Marshalltown State Bank will erect
a $12,000 bank building.
Holmesville, Neb.—A. C. Hollingsworth of Beatrice,
was awarded the contract for erecting the new bank buildmg.
Munich, N. D.—J o s . Bell DeRem er has prepared plans
for a brick bank building for the First National Bank of
Munich.
Edinburg, N. D.—The contract for the new bank build
ing at Edinburg has been awarded to E. C. Richmond, of
Melrose, Minn.
Wimbledon, N. F>.—The First National bank at W im
bledon has let the contract for its new bank building to
Clausen & Roth.
Loans vary in size from $ 5 0 0 to
$ 5 ,0 0 0 and run for five years.
Write for our offerings. 25 years’
experience in the loaning field.
References furnished upon appli
cation.
T h e A. G. W H IT N E Y
LAND
& LOAN CO.
Whitney Block, ST. CLOUD, MINN.
Saturday, Ju ly
THE
1905
I,
68 B R A N C H E S
Ontario,
Manitoba,
Northwest Terr.
British Columbia.
CO M M ER CIAL
17
W E ST
B A N K OF H AM ILTO N
W IN N IP E G B R A N C H .
Capital
Reserve Fund
Total Assets
.
-
-
-
•
-
-
-
U. S. Collections on
Western points in Canada lo o k e d a f t e r
promptly.
H. H. O ’Reilly,
A g t., Winnipeg.
$2,235,000
2,235,000
27,500,000
GOLD INCREASE AND ITS EFFECT.
amount of gold going into industrial uses. With the total
production of $340,000,000 then it would seem that there is
well over $250,000,000 of fresh gold from the mines likely
to arrive at the monetary reserve centers each year. When
it is remembered that the total amount of gold in the as
sociated banks of N ew Y o rk is $200,000,000, it will be seen
that this sum of new gold bears an important relation to
reserve stocks of the world, and it can not be doubted that
this increase in gold reserves is having a distinct influence
on the course of prices.
The question of the probable effect of the greatly in
creased gold production on business, credits, stock markets
* and general prices is one which is receiving the attention
of banking and commercial interests throughout the coun
try at the present time. The subject has been discussed
at various bankers’ conventions, particularly in the East,
and the matter is one of great moment to financiers and
the business of the world as a whole.
Recent statistics show that the output of the past year
was $350,000,000, a gain from $119,000,000 since 1900, which
compares with an average production during the first fifty
years of the nineteenth century of less than $16,000,000.
This large increase, and the predictions^ of further in
creases, is held by many to mean higher prices for all com
modities.
.
In an interview Frank A. Vanderlip, formerly of Chi
cago, former assistant secretary of the treasury and now
vice-president of the National City bank of New \o r k ,
said of this problem:
To answer in a word the question of whether or not
we are in the midst of a gold inflation and whether or not
as a result of such inflation we are in a period of generally
advancing prices, one must say yes. That answer, of
course, is to be modified by some consideration of the
amount of inflation that is resulting from the present ex
traordinary gold production and some further considera
tion of how much effect on prices a given amount of gold
inflation may have.
P ric e s
and
M oney
O u tlo o k
C ir c u la t io n .
F o r m y own part I am only a partial believer in the
quantitative theory of money. That is to say, I do not be
lieve prices bear a direct relation to the amount of money
in circulation, although I have no doubt that prices are
influenced by a decrease or increase in the money supply.
L a st year’s total production of gold reached the enor
mous figure of $340,000,000. There was a direct gain in the
gold reserves of the European centers of $205,000,000 and a
gain in the United States of $91,000,000, making the ef
fective gain in the reserve in the world’s commercial cen
ters almost $300,000,000. No one can doubt that this ex
traordinary increase in the production of gold is having,
and will continue to have, an influence upon prices.
The director of the mint has calculated that an allow
ance of about $76,000,000 should 1m made annually for the
SO U TH
D A K O T A PRO SPEROU S.
Reports of the comptroller of the currency on the con
dition of national banks in South Dakota on M ay 29 show
that since the date of the last report the number of banks
has increased from 69 to 71. Loans and discounts in
creased from $11,210,737 to $11,757,851.
Cash reserve
decreased from $1,019,182 to $1,009,332, and total resources
increased from $19,663,679 to $19,983,673. There was an
increase in individual deposits from $13,022,373 to $13,209,956, and the average reserve held fell from 17.03 to
16.84 percent.
North Dakota Third Group M eets.
The bankers of the Third Judicial district, group three,
of the North Dakota Bankers’ Association, gathered in
convention at Casselton June 16 and the meeting proved
a very successful one and was well attended.
The morning and afternoon sessions were devoted to
business. M ayor Bartlett made the address of welcome
and the response was made by R. P. Sherman, president
of the First National bank of T o w er City. W. C. Macfadden, president of the Commercial Dank of Fa rg o and
secretary of the state association, addressed the bankers
on the aims and objects of the state association, and S. G.
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Federal Reserve Bank of St. Louis
F a v o rs
H eavy
G o ld
P r o d u c tio n .
The outlook certainly favors a continuance of the pres
ent large scale of gold production. The great reserve
reservoirs, the world’s financial centers, from which en
terprise in large measure derives life and energy, seem
likely to be fed by these flowing streams of new gold for
some years. Those people who are familiar with the con
ditions in the Rand anticipate that that district alone will
soon produce $150,000,000 annually. T h e y feel that they
know with accuracy what the ground contains, and they
express belief that the Rand will produce in the neighbor
hood of $150,000,000 annually until it yields a total of be
tween $4,000,000,000 and $5,000,000,000.
No matter how rapidly gold reserves increase, however,
the demands for credit may easily run ahead and build a
structure too large safely to stand on the gold foundation.
A t the present moment gold reserves, large as they are in
the United States, are not relatively large when compared
with the amount which banks owe in the form of deposits.
I have no doubt that the present price level has been in
a measure the result of the increase in gold stocks, and
that further increase in gold reserves will have a tendency
further to advance prices. That tendency, however, it
must not be forgotten, may be interfered with and may be
entirely counteracted, or more than counteracted by other
influences, so that it by no means follows that prices are
to continue to rise merely because a golden flood seems
likely to continue to come from the mines.
The elements that form the basis of prices are far more
complex than any simple application of the quantitative
theory of money might indicate, and in the fluctuation
which results from these contending and conflicting forces
the constant upward tendency which might be credited to
fresh gold reserves may be lost sight of entirely.
More, president of the First National bank of Buffalo, on
“ The B ank ’s Attorney.” Then there was a general discus
sion on the question of the permanent organization of
group three. In the afternoon T. H. Poole, deputy state
bank examiner, spoke on the relations of the examiners’
de-partment to the bankers and the public. F. E. Holton of
the Northwestern National bank, Minneapolis, gave an ad
dress which was replete with information regarding the
protective department of the Minnesota association. After
an hour with the “ question box” the election of officers was
proceeded with and it resulted as follows:
President— H. W. Gearey, Merchants’
State bank,
Fargo.
Vice President— J. S. Brown, First National bank of
Hope.
Treasurer— S. J. Sherman, cashier First National ban.of To w er City.
Secretary— R. C. Kittel, First National bank of Cassel
ton.
Executive Committee— C. A. Wheelock, W. J. Morrish,
First National bank of Page; W. H. Simmon, First N a
tional bank of Hunter; O. C. Sarles, First National bank
of Hillsboro, and C. S. Edwards of Goose Riv er bank at
- Mayville.
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Churches and Public Buildings. Send
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EAU CLAIRE,
-
WISCONSIN
i8
THE
THE
COMMERCIAL
WEST
Saturday, July r, 1905
MERCHANTS NATIONAL
SAINT
PAUL,
C a p ita l $ 1 ,0 0 0 ,0 0 0
BANK
M IN N E S O T A
S u rp lu s $ 3 2 5 ,0 0 0
U N IT E D S T A T E S D E P O S IT A R Y
O FFICERS:
Ken neth Clark, Prest ,
C. H. Big e low , V ic e - P r e s .
Geo. H. Princ e , V ic e - P r e s .
H. W. Parker, C a s h i e r
H. Van Vieck, As st. Cash
NEW BANKS AND CHANGES.
M in n e s o ta .
Tintah—Jam es Colehour, Jr., is now cashier of the new
bank here.
Winona— The Merchants’ Bank will increase its capital
to $100,000.
Fairmont—The Martin County National Bank will in
crease its capital to $75,000.
A voca— At the annual meeting of the Avoca State bank
all of the officers were re-elected.
Willmar— H. Gunderson has resigned his position as
assistant cashier of the Bank of Willmar.
Halsted— A t a meeting of the directors of the First N a
tional bank of Halsted, Joh n O. L yngstad was elected
cashier.
Glens Falls— The First National bank of Minneapolis
has been approved as reserve agent for the National bank
of Glens Falls.
Fosston— Bank of Fosston and the First National
Bank have merged as the First National. Capital will be
increased to $50,000.
Sauk Center—W. P. Chase has resigned from the First
National bank to accept a position as cashier of the First
State bank of Felton, Minn.
Floodwood—The First State Bank has been liquidated
and will be succeeded by the Bank of Floodwood, which
will open as a private bank by J. B. Mayor, present cashier
of the First Bank.
Luverne— The Corn Exchange National bank of Chi
cago and the Hanover National bank of N ew Y o r k have
been approved as reserve agents for the Farm ers’ N a
tional bank of Luverne.
M ayer—The State Bank of M ayer has been authorized
by the superintendent of banks. Th e institution is capital
ized at $10,000, and the officials are: President, George
E. Hanscom; cashier, W. H. Shrader.
Chatfield— The First State Bank of Chatfield, Filmore
county, form erly a private bank, has been authorized to
begin business by Public Examin er P. M. Kerst. G. H.
Haven is president and S. E. Gibbons cashier. The capital
is $25,000.
Jackson—The Brow n National Bank of Jackson has
been authorized with capital of $40,000. Joh n K. Brown is
president; J. W. Cowing, vice-president; H. L. Strom,
cashier; Jos. J. Pribyl, assistant cashier. Succeeds Bank
of Jackson.
Brooten— A new state bank has been organized with a
capital of $100,000. It will be known as the Scandinavian
State Bank of Brooten. The officers are as follows: P re s
ident, H. J. Haskamp, St. Cloud; vice-president, W. H.
Bohmer, Melrose; cashier, J. J. Kraker, Melrose.
Fergus Falls—The directors of the Fergus Falls N a
tional bank at a special meeting elected Joseph Ulland
vice-president of the institution, to the presidency to suc
ceed E. J. Webber. P. M. Joice, of Lake Mills, Iowa,
was elected vice-president to succeed Mr. Ulland, and F.
E. Hodgson was elected a member of the board of direc
tors.
N o r t h D a k o ta .
Clifford.—The capital of the State Bank of Clifford has
been increased from $7,000 to $10,000.
New Rockford— Olive L. Sanders has accepted a posi
tion as assistant cashier in the First National bank.
Lamont—The Merchants’ State Bank of Lamont has
been organized with a capital of $10,000. E. B. Robert
son will be the cashier.
Martin— The First State bank of Martin has been in
corporated with capital of $10,000. Incorporators, L. L.
Beiseker, C. A. Beiseker, E. F. Volkmand, Fessenden,
N. D.
Russell—The Russell State bank will open for business
on August i. Capital is $15,000. F. H. Wellcome is presi
dent; A. C. Russell, vice-president, and W. S. Davidson,
cashier.
Sarles—The First State bank of Sarles has been in
corporated with $10,000 capital. Incorporators, J. D.
Milne, E. S. Donovan, Langdon, N. D.; C. B. McMillan,
Hannah, N. D.
Russell.—The Citizens’ State bank will open about July
I. The capital is $10,000 and officers as follows: Geo. Sumberg, president; John E. Diamond, vice president; H. M.
Cornell, cashier.
Grano—The Ward County bank has been organized
with $10,000 capital and will open on August 1. F, H.
Wellcome is president, G. J. Abbott, vice-president, and
Guy L. Abbott cashier.
Fairdale—The Farm e rs’ State bank has been organized
with $10,000 capital. F. H. Wellcome is president; Robert
Arnot, vice-president; N. B. Felton, second vice-president,
and cashier not yet chosen.
E a sb y —The First State bank of E a sb y has been in
corporated. Capital $10,000. Incorporators, J. D. Milne,
E. S. Donovan, Langdort, N. D.; C. B. McMillan, Jas. B a l
four, W. E. Adams, Hannah, N. D.
Sarles— The Security State bank of Sarles has been
organized with capital of $16,000. F, H. Wellcome is
president. Robert Arnot, vice-president; N. B. Felton,
second vice-president, and J. E. Arnot cashier.
Bantry— The State bank of B antry has been incorpor
ated with $10,000 capital. Incorporators, D. N. Tallman,
S. B. Owale, Willmar, Minn.; G. S. Ogren, Souris, N. D.;
M. L. Helgerman, Bottineau, N. D.; R. A. Fox, J. Chris
tianson, Towner, N. D.
Calvin—The State bank of Calvin has been incorpor
ated with $10,000 capital. Incorporators: D. N. Tallman,
S. B. Owale, Willmar, Minn.; G. S. Ogren, Souris, N. D.;
J. O. Helgerson, Westhope, N. D.; M. L. Helgerson, R.
A. McBrayne, Bottineau, N. D.
Bottineau— The following officers of the Farm ers’ &
Merchants’ bank have been elected: E. G. Onfer, presi
dent; John Dammann, Sr., vice-president; J. L. Onfer,
cashier; A. M. Fruh, assistant cashier. Directors: E. G.
Onfer, J. L, Onfer and Joh n Dammann, Sr.
Grand Fo rk s—The State Bank of Alsen, Cavalier coun
ty, and the State Bank of Selden, Rolette county, have
been incorporated by David H. Beecher, of Grand Forks,
F. H. Welton, Minneapolis, and N. B. Felton, Grand
Forks. The towns named are along the Soo line, and are
surrounded by fine country.
Pingree—The Pingree State Bank has opened for busi
ness. The officers and directors of the Jam es River N a
tional bank of Jamestown are incorporators and the offi
cers of the bank are E. P. Wells, Minneapolis, president;
George Lutz, Jamestown, vice-president, and H. M. Dahf,
Pingree, cashier. The capital stock is $10,000, all paid in.
S o u th D a k o ta .
Carlock—Articles of incorporation have been filed for
the Bank of Carlock, G regory county, with a capital of
$5,000. The incorporators are H. F. Slaughter, C. W.
Humphrey and Leo C. Ligert.
Highmore-—About Ju ly 1 the First State Bank will be
merged into the First National bank of Highmore. The
new bank will be established by leading business men and
farmers of this vicinity, and will have a paid up capital of
$25,000. The officers will be: President, F. B. Greene;
cashier, C. P. Swanson; vice-president, W. D. McDonald.
The new institution will be one of the strongest of its kind
in this part of the state. The First National bank of Min
neapolis and the Continental National of Chicago have
been appointed reserve agents for the new bank.
N e b ra s k a .
Leigh— H. W. Graves, cashier of the Maple Valley
State Bank, sold his stock in the bank to Ed. Wurdeman
KETTLE RIVER QUARRIES COMPANY
B U IL D IN G S T O N E ,
Curbing,
Crosswalks, Stone
General Offices , Oneida B lock ,
Paving, Creosoted Wood Blocks for Pavements.
SEND PLANS FOR ESTIMATE.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Quarries at Sandstone. Minn.
M IN N E A P O L IS , M IN N .
Saturday, Ju ly
THE
I, 1905
COMMERCIAL
WEST
19
THE NATIONAL BANK
O
FT
H
E
R EP U B LIC
W . T . F E N T O N , VICE-PRESIDENT
R. L . C R A M PT O N ASST. CASHIER
T H 0 8 . J A N S E N , ASST. CASHIER
CHICAGO
JO H N A. L Y N C H , PRESIDENT
R. M. M C K IN N E Y, CASHIER
O . H . 8W A N , ASST. CASHIER
and resigned as cashier. V. W. Graves will be cashier
and Ed. Wurdeman, assistant cashier.
Stanton— The conversion of the Citizens’ bank of Stan
ton in the Stanton National bank has been approved. Cap
ital is $50,000.
W is c o n s in .
Ladysm ith—Plans are on foot to re-establish the First
National bank of this city or to start an entirely new in
stitution. Capitalists are in conference with the receiver
and officers of the bank.
Richland Center—Authority has been granted at W a sh
ington for the organization of the hirst National bank of
Richland Center; capital, $25,000; C. R. Thompson, E. A.
Dove, J. L. M cKee, Robert R. Benton and W. J. Clark are
named as incorporators.
NORTH DAKOTA BANKERS’ CONVENTION.
Program of the Meeting of the North Dakota Bankers’
F ir s t
D a y — J u ly S e v e n th .
Frid ay Morning, 10 o’clock.
Convention called to order by the president, Hon. M. F.
Murphy, State bank of Reynolds.
Invocation by the Rev. A. H. Hays.
Address of welcome in behalf of the city of Grand horks,
Hon. George H. Duis, mayor.
Address of welcome in behalf of Grand horks bankers, Mr.
Sidney Clark, Union National bank.
Response by the Hon. L. B. Hanna, vice president North
Dakota B ankers’ Association.
Annual address, by the president.
Report of the treasurer, ivir. J. G. Gunderson, Aneta State
bank.
„
Report of the secretary, Mr. W. C. Macfadden, Commer
cial bank of Fargo.
Report of executive council.
Call of congressional districts.
Five-minute responses by vice presidents.
Report of legislation committee.
Appointment of committees by the president.
F r id a y
A ft e r n o o n .
2 o’clock.
Report of committees.
. ,
Report of delegate to American Bankers Association con
vention, Mr. N. M. Young, Cass County National bank,
Ccisselton.
Address: “ The Torrens Title System,” Hon. M. F.
Murphy, State bank of Reynolds.
Address: “ Trust Companies and Their Relation to Com
mercial Banks,” Hon. E. A. Merrill, president of the
Minnesota Loan & Trust Company.
Election of delegates to American Banker-j Association
convention.
Association to be H eld at Grand Forks on July
7 and 8.
General discussion of following subjects: (a) Bank De
posit Insurance; (b) Taxatio n; (c) Burglary Insurance;
(d) Care of Time Lock s; (e) Would it be a Good Idea
to Abolish Par Points for Collections; (f) Should not
Bankers Encourage the Use of Bank Money Orders
Rather than Postoffice or E xpress Orders? (g) Should
the Bankruptcy L a w be Repealed? (h) Should the A s
sociation Offer a Standing Reward for the Apprehen
sion or Conviction of Criminals Where Members are
Interested?
(i)
Bank Advertising; (j)
Collection
Charges.
F r id a y
E v e n in g .
8 o’clock.
Informal banquet and smoker, toastmaster, Prof. Vernon
P. Squires, University of North Dakota.
D a y , J u ly 8 th .
Second
Saturday Morning, 10 o’clock.
Address: “ Canadian Banking,” Mr. H. B. Shaw, superin
tendent of western branches of the Union bank of
Canada.
Report of committee on nomination of officers.
Election of officers and members of executive council.
Discussion of resolutions.
Announcements.
S a tu r d a y
A ft e r n o o n .
Seeing Grand Forks by daylight.
Reception to delegates and visitors at the Town and
Country club.
Saturday evening at 8:30 the first annual excursion of the
North Dakota Bankers’ Association will leave the Great
Northern depot in special sleepers for Duluth. Sunday
morning at 10 o’clock excursionists will take the steam
er “ Am erica” for a cruise along the north shore of Lake
Superior and around Isle Royale.
SEND YOUR WISCONSIN BUSINESS TO
Central Trust Company
THE GERMANIA NATIONAL BANK
O F ILLIN OIS
LIBERAL TERMS AND SATISFACTORY SERVICE
MILWAUKEE, WIS.
Capital and Surplus, $ 340,000.00
Deposits, = = » = $1,800,000.00
D E A R B O R N A N D M O N R O E ST R EE T S
C H IC A G O
Capital, $2,000,000
Surplus, $500,000
OFFICERS
C h a r l e s G. D a w e s , President W i l l i a m R. D a w e s , Cashier
W . I r v in g O s b o r n e , Vice-Pres. L. D. S k i n n e r , Asst. Cash.
A. U h r l a u b , Vice-Pres.
M a l c o l m M c D o w e l l , Asst. Sec.
DIRECTORS
A. J. Earling, President Chicago, Milwaukee & St. Paul Railway Co.
P. A. V a l e n t i n e , ................................Vice-Prest. Armour & Co.
Graeme S tew art,....................................................... W- M; Hoyt £ 0•
Thomas R. L y o n , ............................................... Lyon, Gary & Co.
Frank O. L o w d e n . ....................................................... Attorney
Arthur Dixon,
Prest. Arthur Dixon Transfer Co.
Charles T. B o y n t o n ,................................Pickands, Brown & Co.
Harry Rubens,
Rubens, Dupuy & Fischer, Attorney?
Alexander H. Revell,
* President Alexander H Revell & Co.
W . Irving O s b o r n e , ............................................... Vice-President
Charles G. Dawes,
Ex-Comptroller of the Currency
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i k IT R O
Is
G L Y C E R IN E j
cheap, Thats why
burglar can get it
BANK
the
BURGLARY
Insurance is cheaper if you buy the
best, and we sell it
The Ocean Accident & Guarantee Corp.
(L IM IT E D )
H O O D & PENNEY, Gen. Agts.
P H O E N IX B U IL D IN G
M IN N E A P O L I S , M I N N .
20
THE
COMMERCIAL
WEST
Saturday, Ju l y
I,
1905
B u s in e s s E s ta b lis h e d 1873.
Western Trust $c Savings Bank, Chicago.
Capital
.
.
.
$1,000,000
TRANSACTS A GENERAL DOMESTIC AND FOREIGN BANKING, SAVINGS, TRUST COMPANY AND BOND BUSINESS.
OFFICERS:
JO S E P H E. OTIS, President.
W IL L I A M C. COOK . Cashier.
W A L T E R H. W I L S O N ’ V ioe-Preside nt .
H. W O L L E N B E R G E R , Asst, to the President.
L A W R E N C E N E LS O N , V ice -Pr eside nt
W. G. W A L L I N G , Secretary.
GOLD PRODUCTION AND PRICES.
A Discussion of the Influence of the Increasing Gold Sup ply on Prices and the Rate of Interest by Dean Joseph
French Johnson of the N ew Y ork University School of Commerce, Accounts and Finance
Before the Convention of the Pennsylvania Bankers’ A ssociation .
B efo re this a u dien ce it is u n n ecessa ry to d evelop an y fu n
d am ental prin cip les w ith regard to the natu re or v a lu e o f
m oney.
W e have b e fo re us a co n cre te qu estion :
W h a t is
lik ely to be the e ffe ct o f the in crea sin g supply o f gold upon
p rices and the rate o f interest.
T he fa cts w h ich have su g
g ested this to p ic are doubtless fa m iliar to all o f you. D u rin g
the la st ten y e a rs the output o f the w o rld ’ s g old m ines h a s
been in crea sin g a t an u n preced en ted rate. In 1890 it am oun ted
to $119,000,000; in 1895, to $200,000,000; by 1899 it had in
crea sed to $307,000,000 p er annum , and in 1904, a cco rd in g to- the
estim a te o f our d ire cto r o f the m int, it am oun ted to over
$350,000,000.
W h e n w e con sid er th a t d u rin g the first fifty
y ea rs o f the n in eteen th cen tu ry th e total output o f both gold
and silver w as le ss than tw o billion dollars, w h ile th e output
o f g old alon e in that p eriod w as on ly $800,000,000, or ab ou t $16,000,000 p er annum , w h erea s in th e last fou rteen y e a rs the o u t
put o f gold has am ou n ted to n ea rly three and o n e -h a lf billion
dollars, it is n ot su rp risin g th at v e ry grav e qu estion s arise in
th e m inds o f th ou g h tfu l m en w ith reg ard to the p robable fu tu re
o f the value o f g old an d w ith regard to th e e ffe ct upon hum an
w elfare, w h ich ch an ges in the am ou n t o f gold w ill exert. Can
the w orld ab sorb $350,000,000 o f n ew gold, or m ust its value
fall in order th at a p lace m ay be m ade fo r it in the m a rk ets?
I f its value does fall, w e k n o w th a t p rices m ust rise.
I prop ose to con sid er the su b je ct from three differen t
p oin ts o f v iew . F'irst, h o w does an in crea sin g supply o f gold
tend to a ffe ct p rice s? S econd, does it have any relation to the
rate o f in terest an d the m o n e y m a rk e t? Third, w h at are the
con d ition s w h ich g ov ern th e p rod u ction o f gold, and, do these
con d ition s n ow w arran t an e x p e cta tio n o f a con tin u ed large
increase o f the su pp ly?
In order to av oid con fu sion , it is n ecessa ry to have clear
ideas as to the m ean in g o f the w ord s w e use. U nfortu n ately,
th e w ord m on ey is often em ployed in d ifferen t senses. In m y
opinion, in its scie n tific and p rop er u se it m eans the sta n d
ard o f prices, that valu a ble th in g w h ich m en use as a m edium
o f ex ch an ge or m eans o f paym en t, everyon e bein g w illin g to
a cce p t it. In its popu lar use, h ow ever, this idea is con fu sed
w ith v ariou s fo rm s o f credit. M ost p eople think o f the g reen
back, silver dollar, a n d bank n o te as bein g m oney. T h ese
th in gs are n ot m on ey in an y prop er sen se o f the w ord. T h ey
w ere all p rom ises to p ay m oney. A gain , you bankers use the
w ord in a p ecu liar sense. W h e n y o u speak o f m o n e y as bein g
s ca rce o r “ tig h t” you do n o t m ean that there is less gold or
cu rren cy than b e fo re ; you m ean m erely that y o u r lend ing
p o w e r is exh a u sted; that the ratio betw een y ou r reserves and
y ou r liabilities is n ea r the d an g er point. M on ey w h en used
in this sen se in the financial w orld is really equ iva len t to
loan able fu n d s or capital. In w h at I have to sa y I shall en
d ea v or to use the w o rd m on ey in w h at I have defined as the
scien tific sense. T o co v e r the p opu lar u sage o f the term I
shall u se the w o rd cu rren cy, w h ich m a y p rop erly enou gh in
clude all g en erally acce p ta b le m edia o f exchan ge, such as gold,
green ba ck s, silv er dollars, bank notes, and w hen I h a v e in
m ind w h at is som etim es called ba n k ers’ m on ey I shall speak
o f loan able funds.
C r e d it ’s P a r t
in
M a k in g
P ric e s .
m ore gold, or reserve, than th ey deem ad equ ate to m eet their
dem and liabilities.
B ut a p rop ortion o f reserves to liability
w h ich is consid ered ad equ ate at one tim e is not adequ ate at
another. _ The basis o f cred it is confidence, and w hen c o n
fidence is lacking, or is threatened, the ba n k er everyw h ere
in crea ses the hoard of h is reserve, thus p rev en tin g gold from
h a v in g an y effect w h a tev er upon prices. B ut w hen th e situ a
tion changes, an d hope tak es the place o f distrust, then the
ba n k ers’ reserve, through the a g en cy o f credit, becom es a
qu ick and p ow erfu l stim u lu s to prices. W e need n ot expect,
therefore, a stea d y and gradu al a d v an ce o f p rices to result
from the p resent outp our o f gold. W e m ay e x p ect sp asm od ic
upheavals o f the p rice level, and then p eriod s o f depression.
So lon g as w e use so sen sitiv e instru m en t as cred it in trade
no m a tter h ow g rea tly the w orld ’ s supply o f g old is ’ a u g m en t
ed, w e need not look fo r a stea d y or orderly upw ard m ovem en t
in the p rices o f goods.
L et us con sid er a con crete case.
L et us suppose that the supply o f m on ey in the U nited
S tates has been g rea tly increased d u rin g a certain m on th by
an influx o f gold from the m ines o f A laska, C aliforn ia and
C olorado.
M ost o f the m iners w ill m ake the n atu ral and
reason able d isposition o f th eir m on ey ; each w ill spend m ore
or less fo r the sa tisfa ction o f his present w a n ts; w ill keep a
certain sum fo r th e sa tisfa ction o f fu tu re w ants, an d will
either lend the ba lan ce or d ep osit it in bank. T h a t portion
w h ich is spent will con stitu te a n ew dem and fo r certain
classes o f goods, and w ill tend to raise their prices. T h at
p ortion w h ich is loan ed w ill be expen ded b y the borrow ers
m the purch ase o f g oo d s and p ay m en t o f w ages, an d w ill tend
to ad v an ce both p rices and w ages.
L et us suppose that the ba n k in g reserves o f the cou n try
are in creased $50,000,000 b y the d eposits o f these m iners, w ill
this m on ey lie id le a n d so have no effect on p ric e s? C er
tain ly not. It w ill be the m ost p oten t p art of the new supply
B an kers are th e last people^ in the w orld to look w ith c o m p lacen ce upon a, hoard o f idle m oney. T h eir dividends depend upon th eir p o w e r to m ake a dollar do t w o -fo ld or fo u r
fold w ork.
T he banks that receiv e this $50,000,000 o f new
m on ey will not rest till th ey have fou n d borrow ers, even though
they are obliged to low er th eir rate o f discou nt. T his $50,000 000 m ay be m ade the basis fo r an expa n sion o f bank c red it to
the a m ou n t o f $200,000,000 or even $300,000,000, an d the b o r
row ers o f this cred it w ill bu y g ood s an d labor. T hus this n ew
goid m th e form o f cu rren cy or credit, w ill gradu ally increase
the d em a n d fo r v ariou s goods, and so cau se their p rices to
rise.
S ince th ere is no reason w h y the dem and fo r g oods
should have fallen off, the general p rice level w ill have been
raised, indicating* a declin e in the value o f m oney
In the fo r e g o in g illustration, I have ta citly assum ed that
Pon e o f the n ew gold is taken b y jew elers and others fo r use
m the arts, and this assum ption is ju stified, fo r there is no
reason fo r su pp osin g that the dem and fo r m an u factu rers for
gold will in crease until g old has a ctu a lly fa llen in valu e— that
1S^
**
Pr*ces
g ood s have risen. O f the n ew gold
added
the w orld ’ s sto ck each year, it is estim a ted that
ab ou t 20 p ercen t is absorbed b y the arts dem and, but there
is little ev iden ce that the con su m p tion o f g old in the arts
increases m uch as the value o f gold falls.
In d iscu ssin g the p robable e ffe cts o f the new g old upon
p rices w e m ust first co n sid e r the part w h ich cred it plays in
the m ak in g o f prices. S om e w riters have p u t fo rth the v iew
th at cred it in th e m odern w orld is o f such g reat consequence
that m ere chan ges in the v olu m e o f gold ca n n ot p rod u ce an y
g r e a t ch an ges in th e p rices o f goods. In m y opinion, this
v ie w o f the s u b je ct is a m istaken one. C redit is m erely an
au x ilia ry o f gold. It in creases the efficien cy o f gold ju s t as
rapid fire gun s increase th e efficien cy o f the battleship. The
m ore e x ten d ed our cred it system , the g rea ter the nu m ber of
exch an ges that can be m ediated b y an oun ce o f gold. A d ollar
in a ba n k will d o fiv e tim es as m uch b u y in g as a dollar in
the street. M odern credit, instead o f lessen in g the im porta n ce
o f each oun ce o f g o ld in th e w orld, has g re a tly in creased it,
fo r ev ery o u n ce o f g old can n ow be m ade the basis fo r cred it
tra n sa ction s m u ch e x ce e d in g in v o lu m e the value o f the gold.
I do n o t m ean to im ply that the present general use of
cred it as a m edium o f e x ch an ge can be ignored, o r that it
d oes n ot co m p lica te m atters. It has giv en rise to an im porta n t
n ew dem and fo r gold, nam ely, to serve a s a b a sis fo r credit,
or as a ba n k in g reserve.
B an ks d o not, v olu n ta rily carry
? rjceL a e v e r ch a n g e un iform ly. In a cou n try like the
United States, w here business is done larg ely b y the aid of
banks, th e cred it sy stem bein g h igh ly developed, an in crease
o f the volu m e o f m on ey affects, first, the prices of stock s and
bonds, fo r th ese are th e a rticles that are bou gh t b y the m an
in to w h ose hands the m on ey first natu rally com es. T he prices
ot such sp ecu lative com m od ities as w heat, cotton corn steel
etc., are a ffected a lm ost as q u ick ly ; n ot the p rices o f all at
the sam e tim e, but first one, then another. If th ere is a g reat
sp eculative interest in w heat, and little in oth er produce, new
m on ey and the cred it it su pports m ay all go fo r a tim e into the
p u rch ase o f w heat. On the other hand, it m ay all go into the
stock m arket. A fte r a tim e, how ever, it w ill g et in to general
circu la tion and a ffe c t the p rices o f m ost com m od ities, tou ch in g
first w h olesale prices, then retail, an d finally real estate, w ages
and salaries.
&
T h is p rocess o f read ju stm en t is a slow and gradu al one.
A stu d y oi the course o f p rices during the last fe w years
TUNSTEAD HEATING CO
OSLER, HAMMOND & NANTON,
[Established 1876]
Established 1884.
H igh Class H eating A pparatus
In Steam, Hot Water, or Combination
223 Sixth Street South
JOHN
Minneapolis , Minn .
’
BURNHAM
BUR N HA M
BANK
&
1 5 9 LA S A L L E S T R E E T
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A’.
ALBERT
E. B U T L E R
BUTLER & CO.
STOCKS , BONDS,
U N L IS T E D
H o w P r ic e s C h a n g e .
tt
GRAIN
STOCKS
■
CH I CAGO
W IN N IP E G , M A N IT O B A .
COMPANIES REPRESENTED:
Calgary & Edmonton Land Co. North of Scotland Canadian Mortgage Co.
Ontario & Qu’Appelle Land Co. Law Union & Crown Insurance Co., Investment
Qu’Appelle, Long Lake & Saskatchewan Land Co.
[Department
Winn .peg Western Land Corporation.
Western Assurance Co.
Alberta Railway & Coal Co.
Law Union & Crown Insurance Co.
J. L. S mith
I. N. Smith
SMITH BROTHERS,
Choice F arm and C ity M O R T G A G E S
County B O N D S .
225 Railw ay Bldg.,
M IN N E A P O L IS , M IN N .
Saturday, Ju ly
THE
i, 1905
COMMERCIAL
CA PITA L
JOHN S. TUCKER, President.
21
WEST
$ 1 0 0 ,0 0 0
JULIUS ROSHOLT, Sec’y and Treas.
Northwestern Farm M ortgage Co.
6 PER CENT FARM LOANS IN M IN N ESOTA AN D N O R T H D A K O T A .
O v e r 20 Y e a r s E x p e r i e n c e W i t h o u t L o s s to C l i e n t s .
5 0 2 , 5 0 3 A n d r u s B ld g ., M I N N E A P O L I S .
(1897-1904), w hen the g en eral level has been lifte d som e 25
p er cen t b y the g re a t increase in the w o rld ’ s supply o f gold,
wilJ sh ow th at som e a rticles h a v e doubled in p rice ; that
oth ers h a v e m ade on ly a slig h t ad van ce, and that still others
h a v e n o t ch a n g ed at all; that w ag es in som e occu p a tion s
h a ve a d van ced , and th at in others the old rates are still paid.
In c r e a s in g
G o ld
S u p p ly
and
In te r e s t.
T h e e ffe ct o f in cre a sin g g old supply upon the rate o f in
terest is an in d ire ct one.
It g row s out o f the ch an ge m
prices. T he ra te o f in terest in th e last an alysis has n o rela
tion w h a te v e r to the qu a n tity o f g old in the coun try. It is
th e p ro d u ct o f th e dem and fo r and su pply o f capital. This
w ord cap ital is used b y the eco n o m ists to m ean all those
fo rm s o f w ealth w h ich are used in the p rod u ction o f m ore
w ea lth ; such, fo r exam ple, as m ach in ery and raw m aterials.
It in clu d es all th ose g ood s w h ich are n o t consu m ed directly,
hut w h ich are used to p rod u ce things w h ich p eople desire.
A m o n g bu siness m en and ba n k ers the w o rd has a different
m eaning. It d en otes a loan able fu n d fo r use in business, and
con sists o f m o n e y an d cre d it in v a riou s form s. It is im
p orta n t fo r u s to see that the bu sin ess m en and the e con om ists
both h a v e in m ind the sam e thing w h en th ey use the w ord
capital. T he loa n a b le fu n d s in the p ossession o f banks are
all d eriv ed fro m th e loan able cap ital in the coun try. T h en the
am ou n t o f loan able cap ital increases, th e am ou n t o f loanable
fu n d in creases in a resp on d in g d egree; and there can be no
real in crease o f loan able fu n d s brou g h t ab ou t in an y _other
w ay.
B an k s crea te nothin g.
A ll th eir len d in g p o w e r is the
p rod u ct o f industry.
Elvery d eposit o f m on ey o r cred it in a
b a n k rep resen ts actual w ealth or cap ital that has been saved
in a com m u n ity. T h e loan able cap ital and the loan able funds
o f a c o u n try are p ra ctica lly the sam e th in g;
the one a
h eterog en eou s m ass o f value in the fo rm o f v ariou s g o o d s; the
oth er th e sam e m ass o f value m ade hom og en eou s b y the u n i
v ersal solvent, m oney.
N evertheless, business m en usually
think o f the ra te o f in terest as determ in ed b y the m on ey
situ ation . T h e y assu m e th at a high rate in d icates a need of
m ore m o n e y an d that a low rate is due to a p leth ora o f m oney.
W e h a v e h ere a con fu sion o f m on ey w ith cap ital w h ich has
led! to m isch ie v o u s leg islation in the p ast and is tod a y the
ba sis o f w orth less rem edies p rop osed fo r the re lie f o f the
m on ey m arket.
A lth o u g h th e rate o f interefet, strictly speaking, depends
upon the d em and fo r and su pply o f capital, y e t chan ges in the
su pply o f m o n e y g reat enou gh to p rod u ce ch an ges in the p rices
o f g oo d s' are alw a ys accom p a n ied b y v a ria tio n s in the rate of
interest.: F o r exam ple, it is clear enou gh th at a large increase
o f th e g old su pp ly su ch as that im agin ed a fe w m inutes ago,
m ust ca u se a te m p o ra ry decline in the bank rate o f d iscou nt.
A p paren tly, it in creases the len d in g p o w e r o f banks.^ I say
ap p arently, fo r, m ind you, it d oes n ot in an y w ay in crease
the real cap ital o f the cou n try. T he final result w ill be a rise
o f prices, an d a fa ll in the real p u rch asin g p o w e r o f the dollars
w h ich are loan ed b y bankers. T h e first effe ct o f an in creasin g
gold su pply— nam ely, a declin e in the rate o f interest— will be
on ly te m p o ra ry if th e su pp ly o f gold con tin u es to increase so
th a t p rices p reserv e an upw ard ten d en cy ; fo r fo r c e s soon g et
to w o rk w h ich tend to lift the ra te o f in terest a b ove the
norm al. T he un even u p lift o f p rice has a rem arkable p h y sch olog ica l effect. F e w m en su spect that th eir ab ility to sell g oods
at h ig h p rice s is in an y w a y due to an in crease in the gold
supply. M en d o n ot stop to con sid er th e fa c t that the value
o f m o n e y has chan ges.
T o the business m an a dollar is a
d ollar; he m easu res his p ro sp e rity in dollars; if the num ber
o f d ollars in to w h ich h e can c o n v e rt his p ro p e rty is increasin g,
h e tak es it fo r g ran ted th at his w ealth is in cre a sin g a t the
sam e pace. A s a result, therefore, o f a stea d y up w ard te n
d en cy o f p rices an d o f the con seq u en t in cre a se o f w h at m a y be
called the “ m o n e y w e a lth ” and “ m on ey p rofits” o f bu siness
an d industry, m en in bu siness are eag er to extendi th eir op e ra
tions. N e w co m e rs rush into in d u stry and bu sin ess from the
p rofession a l an d oth er fields. L a w y e rs turn p rom oters fo r the
d evelop m en t o f oil fields o r fo r the co n stru ctio n o f street
railw ays. T ea ch ers an d p h y sician s ab an d on th eir callings and
stud y the A B C o f W a ll street. P re a ch e rs dabble in real
esta te to take up the sch em es o f w a g er and con fid en t inven tors.
A ll this rush in to th e industrial field m ust evid en tly be
a ccom p an ied b y an in creased dem and fo r capital, and bankers,
w h o are also a ffe cte d b y the co n ta g io n o f the tim e, And that
th ey can exten d th eir cre d it to the u tm ost lirpit a t an un usu al
ly high rate o f interest. In other w ords, the in crease in m on ey
p rofits brou g h t ab ou t b y the m a la d ju stm en t o f prices, arouses
an artificial dem and fo r cap ital and so lifts the rate o f in ter
est a b o v e its norm al level, o r that w h ich it w ou ld have held
if p rices ha d n o t been disturbed.
H o w lo n g the industrial b o d y can sta n d the e ffe ct o f this
m oney, in tox ica n t, gradu ally adm in istered, ex p e rie n ce alone
can decide, and e x p erien ce seem s to teach the lesson that
final disaster, h o w e v e r lo n g deferred , is inevitable. It is c e r
tain that n o m ore chan ge in the relation betw een the dem and
fo r a n d supply o f m on ey can p rod u ce ch an g es in the w an ts of
m en sufficient to ju s t ify rem arkable chan ges in th e p rod u ction
o f w ealth. A ll this expa n sion o f cred it and abnorm al dem and
fo r cap ital are usually atten d ed b y a con fid en t popu lar belief
th at a t last a p eriod o f g ood tim es has arrived w h ich can
h a ve n o end. W ild sp ecu lation ensues in this or that c o m
m od ity — in real estate, in railroad stock s, in w heat, in cotton
— an d num erous en terp rises are un dertaken fa r in ex cess o f
the im m ed iate dem and. S om e m orn in g a w ell k n ow n firm or
corp ora tion w h ose v en tu res h a v e entailed unusual risks is
notified b y its ba n k that som e o f its ou tstan d in g p aper m ust
be taken up. U nable to realize on its assets w ith ou t g rea t
sacrifice, it calls upon som e of its ow n d ebtors fo r paym en t,
bu t they, too, are unprepared fo r im m ed iate liqu idation. T he
n ex t m orn in g the n ew spapers a n n ou n ce .the su spension o f that
firm, a n d ru m or runs through the streets cry in g that m an y
oth er im p orta n t h ou ses are affected . T he m ore tim id cred itors
brin g p ressure to bea r upon th eir d eb tors fo r paym en t. A n
oth er b ig corp ora tion fa ils an d d ra gs a ba n k d ow n w ith it.
T h en there begin s a general scram ble on the part of all fo r
the p aym en t o f debts due them . N o m an dare tru st his fellow .
C redit alm ost d isappears from the business w orld a n d p rices
fall w ith a v e lo city that brin g s ruin to ev ery w ea k ba n k and
bu siness concern, and to m an y others w h ose solven cy, if no
p an ic had com e, w ou ld h a ve been stron g ly bu ttressed.
D u rin g this collap se an d p a n ic the rate o f in terest rises to
ab n orm a l heights. T here is n ow a scram b le fo r loans, not fo r
use in the p rod u ction o f w ealth, but fo r use in the p aym en t of
debts. A fte r the p an ic is ov er and the w reck has been cleared
aw ay, th ere fo llo w s a p eriod o f d ullness and the rate of
in terest w ill b e as m u ch below the norm al a s it w as ab ove
it b e fo re the panic.
If the m on ey su pply con tin u es stead ily to increase the
tim e w ill soon co m e again w h en m en. tem p ted b y the low
rate of in terest an d b y restored confid ence in the c ou n try ’s
resources, w ill on ce m ore m ake the roun d o f b o rrow in g and
p rod u cin g. In the m eantim e, a n ew gen eration com es upon the
field, la ck in g the ex perien ce o f its elders, again new en ter
p rises are floated, an d the cy cle o f un w ise prod uction, sp ecu la
tion and p a n ic is repeated.
S ince 1897 the U nited S tates has passed through one o f
these period s o f risin g prices, risin g rate o f in terest and in
crea sin g ba n k deposits. T he first ch eck cam e in 1901 and a
g re a te r ch e ck in 1903. A fte r a year o f rest and r e co v e r y the
cou n try appears n o w to be sw in gin g up on a n oth er w a v e of
p rosperity.
B oth reason and ex perien ce unite in lead in g us
to ex p ect th at the end o f the Japanese R u ssian w a r will be
follow ed b y a release o f credit, a n oth er upw ard sh oot o f
p rices an d a dem a n d fo r cap ital that w ill brin g large d iv i
dends to bankers all ov er the g o ld -u sin g w orld.
N ow and
w hen this n ex t p eriod o f p rosp erity w ill end depends v ery
m uch upon the p ow er o f bankers to rem ain con serv a tive and
keep th eir heads.
I am aw a re that w h at I h a ve said is in op position to the
com m on v ie w upon this su bject.
It is usually taken fo r
g ran ted that the p resen t ou tp ou r of gold is g o in g to result
in the declin e o f th e rate o f interest. T h is v ie w I am certain
is a m ista ken one.
It rests upon a superficial v iew o f the
fa cts. H ad w e th e tim e I should u n dertake to sh ow y ou that
a d ecrease in the gold supply, or in the m on ey supply, such
as this cou n try endured betw een 1810 and 1840, m u st tend to
keep the ra te o f in terest below the norm al. T his p art of the
su b ject, h ow ever, at the p resent tim e has on ly a ca d em ic
interest.
L est you think m e a ltog eth er th eoretical, let m e a sk you
to con sid er briefly the sta tistics o f the L on d on m on ey m arket
d u rin g the nin eteen th century.
L on d on ad op ted th e gold
standard in 1816, th e p rice level th ereafter bein g determ in ed
b y the valu e o f gold. T he w orld ’ s stock o f gold available fo r
use as m on ey w a s d ecreasin g betw een 1810 and 1850, and w e
should ex p ect du rin g th a t p eriod a d ecline in the L on d on rate
o f interest. T h e sta tistics do n ot disap poin t us. In 1824 the
m ark et rate in L on d on w a s 3.5 p ercent. T he p a n ic in 1826
m ad e th e a v era g e rate fo r that y ea r 4.5 p ercent. B y 1833
the rate had fa llen to 2.7 p ercent. T h ere w as a slight rise in
su cceed in g y ears due la rg ely to the expa n sion o f credit. T he
p a n ic o f 1839 raised1 the rate to 5 p ercent. T h erea fter there
w a s a lm ost a stead y d e clin e until the p an ic y e a r of 1847,
w h en the rate r ose 5.9 p ercent. In the n ex t five y ea rs the
rate alm ost stead ily declined, until in 1852 the av erag e rate
w as on ly 1.9 p ercent. A t this date n ew supplies o f g old from
A u stra lia and C aliforn ia w ere m ak in g their w a y in to E urope,
and the in terest rate took an upw ard turn in L ond on, bein g
3.7 p ercen t in 1853, 4.9 in 1854, 4.7 in 1855, 5.9 in 1856 and 7.1
in the p an ic y ea r 1857. T he in terest rate fell to 3.1 in 1858
an d 2.5 in 1859, rates w h ich w ere doubtless below the norm al.
In 1860 a rise began again, the rate bein g 5.5 in 1861 and 6.7
in*1866, the n ex t p an ic year. T h ereafter there w as an im m ediate
decline, the ra te fo r 1867 bein g 2.3 and fo r 1868 1.8. T hen fo l(Continued on Page 38.)
THE LARGEST ANNUAL DIVIDEND Life Insurance Policy in the WORLD
Is carried by the Union Central Life, of Cincinnati, O ., the company that for 25 years has earned the
highest rate of interest, and experienced lowest death rate.
V. H. V A N SLYKE, State Agent,
514 Guaranty Building,
THE NATIONAL BANK OF COMMERCE
Minneapolis, Minn.
Centrally Located
Excellently Equipped
Conservatively Managed
We Extend to our Patrons the Best Service
OF M IN N E A P O L IS , M IN N E S O T A
C a p ita l an d S u rp lu s $ 1 ,3 0 0 , 0 0 0 . 0 0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OFFICERS
S. A. H A R R I S , Pr e side nt
A. A. C R A N E , C a s h ie r
F.
E. K E N A S T 0 N . Vic e -Pre s.
W. S. H A R R I S , Asst. Cash.
G.
E, W I L L I A M S O N , Asst. C a sh ie r
Map o f the N e w “ SO O ” L in e
to
to
Now Being C onstructed from T h ie f R iv e r F alls to K e n m a re , N. D.
FIRST DIVISION
THE
COMMERCIAL
WEST
Saturday, Ju l y I, 190s
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THIEF RIVER FALLS TO SARLES
il
Saturday, July i, 1905
THIRD DIVISION
OVERLY TO KENMARE
TH E
C O M M E R C IA L
W EST
TWLNTY=ONE NEW TOWNS
V ik in g
R a d iu m
A lv a ra d o
Oslo (K?vder)
M edford
Lan kin
S a rle S (Division)
F a ird a le
IMekoma
Ire n e
Alsen
Calió
E geland
M ylo
Dnlotfp
Probable
It
O ld ie county
Seat
O v e rly (Division)
G ard e n a
K ra m e r ga
oreon
R u s s e ll
G rano
T o lle y
sl7 eon
This line runs through the richest and largest wheat producing belt on earth. The entire territory covered by this line is uniform, well-improved and populated. These towns will all be important com
mercial points and offer exceptional opportunities to those desiring business locations. No reservations will be made prior to day and hour of sale. Everyone will be given equal chance to secure desir
able locations. Prices will be the same to all. Send your name and address and we will mail you notice of the date o f opening sales of location in each of the new towns. It is expected that the opening
sales in all these towns will occur within the next 30 days. The entire line will be finished and operated by October, 1905. Notice o f opening sale of locations in all towns will be published in advance of
the day of sale. Lots will be for sale by local agents at each town after the opening sale.
Sale of
Townsites at
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
I
1
[
Alvarado, July 5
Lankin, July 6
Fairdale, July 7
Sarles, July 8
\
Mylo, July 11
All s a 1e s will be
Overly, July 12 j held on the grounds
Tolley, July 15 1 on d a t e s g i v e n ,
[ at 2 p. m.
C. A. CAMPBELL,
T o w n s i t e A g e n t “ S o o ” L in e ,
7 3 4 G u ara n ty B u ild iu g ,
M IN N E A P O L IS .
Oo
THE
24
COMMERCIAL
WEST
Saturday, Ju ly
I,
1905
M IN N EA PO LIS T R U S T CO M PAN Y
NO. 4 S O U T H FOURTH S TREE T
M IN N E S O T A
M IN N E A P O L IS
UNDIVIDED PROFITS, $ 1 5 0 ,0 0 0
CAPITAL, $ 2 5 0 ,0 0 0
Transacts a Trust and Agency business only. Does not do a banking business
Acts as Executor; Administrator, Guardian and Trustee.
Wm H. Dun woody, Vice-Pres.
Robert W. Webb, Sec’y & Treas.
OFFICERS
Elbridge C. Cooke, President
Wm. G. Northrup, Vice Pres.
Coupons Due and Payable at this Office, Ju ly 1st, 1905:
;ht :and Coke Company
Minneapolis Gas Light
Northwestern Consolidated Milling Company
Seattle Gas and Electric Light Company
Kasly and Slocan Railway Company
Minneapolis Western Railway Company
Port Arthur, Duluth and Western Railway Company
The Miller Publishing Company
Lafayette Club
The Koochiching Company
Minnesota Debenture Company
Minneapolis Club.
Sandstone Supply Company
22 Merchants’ Loan & Trust
Company
O L D E S T BANK
IN C H IC A G O
E S T A B L IS H E D
1857
ADAM S AND CLARK ST ., CHICAGO
Capital and Surplus, $6,000,000
Deposits, $49,000,000
HIGH GRADE BONDS
TRUSTS
FOREIGN EXCHANGE
SAVINGS
SAFE DEPOSIT VAULTS
o f f ic e r s :
O r so n S m it h , President
E- D. H u l b h r t , Vice-President
I. G. O r c h a r d , Cashier
F. N. W i l d e r , Assistant Cashier
F . G. N e l s o n , Assistant Cashier
P. C. P e t e r s o n , Assistant Cashier
L e o n L . L o e h r , Sec’ y Trust Dept.
J. E. B l u n t , Jr ., Mgr. Bond Dept.
D IR E C T O R S .
M a r s h a l l F ie l d
L am bert T r ee
M o se s J. W e n t w o r t h
Albert K eep
E . H. G a r y
E r s k i n e M. P h e l p s
C hauncy K e ep
E no s M. B a r t o n
E. D. H u l b e r t
T . J. L e fb n s
O r so n S m it h
C l a r e n c e A. B u r l e y
C y r u s H. M c C o r m ic k
Recent Decisions of Courts of Last Resort of In
terest to Bankers.
D iv id e n d s o u t o f C a p ita l S to c k
S to c k w it h B a n k M o n e y .
and
P u rc h a s e
of
In holding that a receiver of an insolvent bank ought
to recover dividends paid out of the capital stock, the su
preme court of Arkansas takes the ground (Corn vs. Skillern, 87 Southwestern Reporter, 142), that the stockholders
had no right to hold the dividends, and were in duty bound
to refund them. But it holds that where a stockholder
¿old his stock in such bank to the cashier, and it was
paid for in the usual course of trade, without the stock
holder having any reason to believe that money of the
bank was being used in making the purchase, the sale was
valid, and the money paid for the stock became the prop
erty of the seller thereof.
*
L ia b ilit y
In
P aym ent of
*
*
C h e c k w it h
B y P a ye e .
N am e
of
Bank
C hanged
A firm having on deposit in the First National Bank
of Beaumont drew two checks on which it was desired
to stop payment. T o more effectually do this, they trans
ferred their account to the Beaumont National Bank,
without notifying the latter of the checks referred to.
Subsequently, the payee, without the knowledge or con
sent of the firm or of either member thereof, ran a pencil
through the printed word “ First"’ in each of the checks
and wrote in pencil “ Bmt.,” so that the checks thereafter
appeared on their face to be addressed to the Beaumont
National Bank as payor, which paid them six days_ after
their date, which showed that they were drawn prior to
the time the firm had a deposit in the Beaumont National
Bank. On discovery of the facts, the firm demanded the
full balance of their deposit, without reference to the
checks, which they denounced as forgeries. The bank re
sisted suit on the ground that it was an innocent holder
of the checks without notice of the forgery, and pleaded
further that it was the local custom for banks to pay
checks where the printed name of the payor was erased
and another inserted in writing; that they had paid other
checks of the firm written the same way, which were
genuine. The trial court, after hearing the evidence, in
structed a verdict for the defendant bank.
The court of civil appeals of Te x as reverses (Morris
vs. Beaumont National Bank, 83 Southwestern Reporter
36) the judgment of the trial court, rendering one in
favor of the firm for the amount sued for, with interest
from the date of their demand upon the bank. The court
says that as between the depositor and bank, the latter
is held to a knowledge of the signature and handwriting
of its customer, and, in the absence of some fault on the
part of the customer affecting the question of liability, a
forged check, whether the forgery was accomplished by
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
[Established 1882.
H. J. B u r t o n , Pres.
H. L . T u c k e r , V -P res.
Capital, $300,000.
E. A. D r e w , Treas.
W. C. B u r t o n , Secy
JOBBERS AND RETAILERS OF
Furs,
Men’s Clothing,
Shoes,
Boys’ Clothing,
Trunks and Bags,
Hats and Caps,
Cloaks and Wraps,
Shirts,
Millinery.
Furnishings,
“ Plymouth Corner,” Sixth and Nicollet,
Minneapolis.
LEGAL DEPARTM ENT.
P aym ent o f
THE PLYMOUTH CLOTHING HOUSE
a material alteration or the forgery of the signature, is
honored by the depositee at its peril. There could be
no question as to the materiality of the alteration in this
case. The firm were not shown to have been guilty of
any negligence in respect to these checks, and it certainly
could not be contended within a show of reason that it
was their duty to foresee the payee’s fraudulent act and
notify the bank as against checks which had not been
drawn against it. No local custom can give vitality to a
forged check.
SPECIAL ADVERTISEMENTS.
T H E C O M M E R C I A L W E S T will publish want ad
vertisements in this department for O N E C E N T A
W O R D , minimum charge 25 cents. Cash or two-cent
stamps must accompany order. T o insure publication in
current number, copy should be received not later than
Wednesday.
WANTED.
purchase the underlying bonds of either the
Minneapolis Gas, Electric or Street Railway Companies. Minne
sota Loan & Trust Co., 313 Nicollet Ave.
W a n t e d —To
W a n te d ’— B y a y o u n g m an 24 y e a rs o f age. p osition as
cash ier or a ssista n t in g row in g tow n or city. H a s had five
y ea rs’ ex perien ce in S ta te and N ational banks and can fu rn ish
h ig h est referen ces. A d d ress “ R. C. D .,” ca re C om m ercia l W est.
W a n te d — W o rk in g in terest or $5.000 or $6,000 in first class
business con cern that can offer a fu tu re to in d u stry and ab il
ity, b y y o u n g m an o f tw elve (12) y e a r s’ bu siness experien ce.
N o “ g et rich q u ick ” schem es. “ O .,” C om m ercia l W est.
FO R S A L E .
W e M a k e a n d S e ll F i r s t M o r tg a g e F a r m L o a n s . —H ere is one:
N o. 1796. $250. 6 p ercen t, due D ec. 1, 1908. Secured b y 160
a cres o f good land six m iles fro m g ood tow n. T he entire
qu arter is under cultivation . Sm all h ou se an d barn on p rem
ises. L an d and im provem en ts valu ed b y b orrow er at $2,500.
If y ou h a ve m on ey to in v est in g ilt ed ge secu rities send fo r
ou r com p lete d escrip tiv e list, booklet, etc. W e exam ine every
p iece o f land b e fo re a loan is m ade. W e h a v e been engaged in
this line o f bu siness sin ce 1883. H ig h est referen ces furnished.
E. J. L an d er & Co., B o x 11, G rand F orks, N. D.
F o r S a le — S tock of general m erch a n d ise in th riv in g M in
n esota tow n o f 400.
M ust close a t on ce to settle estate;
S cand inavian or G erm an preferred . N o tra de considered. M. W .
H in geley , ad m in istrator, V esta, M inn.
F o r S a le . — A con trollin g in terest in a bank w ith $25,000
cap ital and $1,000 surplus.
G ood tow n, g ood cou n try, good
business, u p -t o -n o w bu ildin g and fixtures.
P u rch a ser m ust
tak e in $2,500 residen ce p rop erty. C ashiership an d p resid en cy
goes w ith the deal. Cash only. A d d ress N ., care C om m ercial
W est.
F IN A N C IA L .
Mortgage Loans—We can place $100,Oow in loans of $1,000
to $3,000 on Minneapolis homes to net the lender 6 per cent
and on a basis of less than 50 per cent of the cash market
value of the security. Interest collected free of charge on all
loans placed by us. Yale Realty Company, “ The Home Build
ers,” 206 South Fourth Street, Minneapolis, Minn. References;
Any mercantile rating company.
Saturday, Ju ly
THE
1905
I,
DIRECTORS
A. C. ANDERSON
CHAS. W. AMES
E. H. BAILEY, President
C. H. BIGELOW
KENNETH CLARK
HAYDN S. COLE, Y.-P. k Counsel
W, B. DEAN
ROBERT R. DUNN, Vice-President
FREDERIC A. FOGG
JULE M, HANNAFORD
COMMERCIAL
WEST
25
DIRECTORS
Northwestern Trust Company
S T .
P A U L ,
M K VN .
»
THOS. IRVINE
FRANK B. KELLOGG
JAMES W, LUSK
A. E. MacCARTNET
ALBERT L. ORDEAN
GEO. C. POWER
EDWARD N. SAUNDERS
R. E. SHEPHERD
J. H. SKINNER
THEO. L. SCHURMIER
THOMAS WILSON
*
Ads as Trustee, Registrar, Transfer Agent, Fiscal Agent,
Executor, Administrator, Receiver, Assignee, Guardian, Etc.
Assumes General Charge and Management of Real and Personal Estates.
T H I S C O M P A N Y D O E S N O T R E C E IV E D E P O S I T S O R D O A B A N K IN G B U S IN E S S
Bank Stock Quotations.
M in n e a p o lis S e c u ritie s .
Q u otation s fu rn ished b y E ugen e M. Stevens, C om m ercial
P ap er and In v estm en t Securities, N orth w estern N ation al B an k
B uilding.
June 28, 1905.
L a st
Bid.
Sale.
A sked .
G erm a n -A m e rica n B a n k .............................. 160
F irst N ational B a n k .......................................
198
2ÓÓ
G erm ania B a n k ................................................ 100
105
ÌÓ5
H en nep in C ou n ty S avin gs B a n k ...............
160
M inneapolis T ru st C om p a n y ........................
Ì5Ò
145
M in n esota L oa n & T ru st C o m p a n y .......... Ì25
130
125
N ational B an k o f C o m m e r ce ...................... 155
163
225
N orth w estern N a tion al B a n k ...................... 225
St. A n th o n y F alls B a n k ................................
150
Ì6Ò
150
208
S ecu rity B an k o f M in n e s o ta ........................ 205
210
S w ed ish -A m e rica n N a tion al B a n k ............ 160
•••
150
South Side S tate B a n k .................................. 200
M pls. G as L ig h t Co. 6’ s, 1910-30................
106
ÌÓ8
ÌÓ8
M pls. Gas L igh t Co. Gen. M tge. 5’ s, 1914102%
102
’ 30 .................................................................... 102
104
M pls. Gen. E le ctric Co. 5’ s, 1934................ 103
104
M inneapolis B re w in g Co., c o m m o n .......... 150
160
150
110
107
107
M inneapolis B re w in g Co., p r e fe rr e d ........
113
110
M inneapolis B re w in g Co., b o n d s ................ 110
102
100
M inneapolis S y n d i c a t e ..................................
200
M inneapolis T h resh in g M achine C o .......... 175
102
M inneapolis Steel & M ach in ery Co., pfd.
ÌÓÓ
108
M inneapolis Steel & M ach in ery Co., com . ÌÒ8
110
80
80
N orth A m e rica n T elegrap h C o ..................
T w in C ity T elep h on e Co., first m ortg a g e
97
95
98
5’s, 1913-16.....................................................
100
T w in C ity T eleph one Co., c o m m o n ..........
120
T w in C ity T eleph one Co., p re fe r r e d ........
S t. P a u l S e c u ritie s .
T h e fo llo w in g qu ota tion s on St. Paul secu rities are furnished
b y P e a b o d y & Co., brokers, 27 M erch an ts’ N ational B an k hu ildJune 28, 1905.
ing, St. P au l:
L a st
Sale.
Bid.
A sked.
103
101
A m erica n N ation al B a n k ........................................
125
130
C apital B an k .................................................... 125
255
F irst N ation al B a n k ...................................... 250
145
M erch an ts’ N ation al B a n k ............................ 143
Î47 %
146
151
N a tion al G erm a n -A m e rica n B an k .......... 148
110
115
St. P aul N ational B a n k .................................. 107
130
S ca n d in a v ia n -A m e rica n B an k .................. 140
S econ d N a tion al B a n k .................................... 140
100
S tate B an k ..................................................................
110
N orth w estern T ru st C o m p a n y .................... 110
M inn. T ra n sfe r R y. 1st 5s, 1916.................. 103
ÌÓ5
100
M in n esota T ra n sfe r R y. Co., first 4s, 1916 *95
100
100
S ecu rity T ru st C o m p a n y ........................................ ..
130
St. P aul U nion D ep ot Co. first 6s, 1930.. *125
ÌÓ9
115
U nion D e p o t C o., consol. 5s, 1944.............. *109
106
U nion D e p o t Co., consol. 4s, 1944.............. *100
132
128
In tersta te In v estm en t T ru st C o .........................
1021/2
106
A m erica n L ig h t & T ra ctio n Co., p f d . . . . 104
100
971/2
97
A m erica n L igh t & T ra ctio n Co., c o m ---*111
St. P aul Gas L ig h t Co., 1st 6s, 1915.......... *116
St. P aul G as L ig h t Co., 1st cons. 6s. 1918 112
100y2
St. P aul Gas L ig h t Co., g e n ’ l 5s o f 1944..
99
ÌÓÓ
*94
St. C roix P o w e r Co., 1st 5s, 1929................ *95
*100
P ion e e r P ress Co., com . (P a r $50)............
5
P ion e e r P ress Co., pfd. (P a r $50)..............
35
50
*37%
W e s t P ub. Co., c o m ........................................ 300
W e s t P u b. Co., p f d .......................................... 107
100
T ibbs, H u tch in g s & Co., c o m ...............................
T ibbs, H u tch in g s & Co., p f d .................................
102
S uperior W a te r, L ig h t & P o w e r C o ........
10
10
S up erior W]ater, L ig h t & P o w e r Co., 1st
60
4s, 1931............................................................
60
St. P au l U nion S to ck Y ards, 1st 5s, 1916.
*90
195
St. P au l F ire & M arine Ins. C o ..................
195
C h ic a g o B a n k S to c k Q u o ta tio n s .
R ep orted b y A . J. W h ip ple & Co., C hicago, June 28:
B o o k V. D iv. R . L. Sale.
Bid.
A m erica n T ru st .......... 169
270
8
267
8
203
202%
B a n k e rs’ N ation al . . . . 154
4
C entral T ru st ................ 134
172
180
C h icag o C ity ................ 171
10
210
C h icag o N ation al ........ 240
15
380
380
C h icag o S a v i n g s ..........
113
155
C om m ercia l N a t io n a l.. 189
Ì2
375
355
C olonial T ru st .............. 140
180
200
C ontinen tal N a tio n a l.. 144
323
8
320
C orn E x ch a n g e ............ 218
12
400
400
6
D rex el S t a t e .................. 108
120
125
D ro v e rs’ D ep o sit ........ 145
8
192
195
12
F irst N a tion al .............. 202
395
390
F irs t N ation al B an k o f
10
225
E n g le w o o d ................ 207
140
F o rt D earborn ............
6
170
H a m ilton N a tion al . . . 128
Ì33
133
615
Í6
600
Illir,>is T ru st ................ 255
J a ck son T. & S .............. 127
125
140
M erch a n ts’ L. & T ----- 219
395
385
Ì2
M etrop olitan T. & S ... 131
6
140
146%
165
M ilw aukee A v e . S ta te. 200
6
175
187
6
190
N at. B an k R e p u b lic ... 147
15
283
275
N a tion al L iv e S t o c k ... 229
N orth ern T ru st ............ 268
530
8
525
O akland N a tion a l ........ 199
6
225
P ra irie S tate ................ 126
8
178
S tate B an k C h ic a g o ... 159
8
250
. 250
W e ste rn T. & S ............ 120
6
175
180
So. C h icago S a v in g s ... 114
107
110
200
U nion T ru st .................. 165
'è
160
R o y a l T ru st .................. 185
S tock Y a rd s S a v in g s .. 134
185
165
D r o v e rs’ D e p o sit
122
’é
r ••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
A sked.
272
205
175
390
165
365
324%
406
135
205
395
Ì8Ò
136
601
145
390
148
200
190%
285
500
E qu itable T ru st . . . . . .
H ib ern ian B kg. A s s ’n.
H om e S avings ..............
M an u factu rers’ B a n k ..
P eop le’ s T. & S ..............
P ra irie N ational ..........
Pullm an T. & S ............
U nion
S tock
Y ards
S ta te B a n k ................
8
8
10
203
249
106
103
122
158
8
105
103
125
150
200
200
290
350
105
120
150
200
110
105
300
110
120
C h ic a g o C u rb S e c u r itie s .
T he fo llow in g qu ota tion s on C h icago un listed secu rities are
fu rn ish ed b y B urnham , B utler & Co., 159 L a Salle St., C h icag o:
June 28, 1905.
Bid.
A sked .
D ivid.
A m erican C hicle com m on ................................ 125
129
12
D o. p fd .................................................................. 96
100
6
A m er. School Fur. (c o m m o n )...........................
3
6
*A uditoriu m H otel ...............................................
11
14
A u tom a tic E le ctric .............................................. 95
102
8
155
8
B ord en ’ s Con. M ilk c o m ...................................... 149
Do. p fd .................................................................. 112
116
6
B utler B ros .............
235
...
10
6
8
7
C h icag o R y. E qu ipm en t (p a r $10)..................
C h icago & M ilw aukee E lec. R y ...................... 30
♦C hicago S ubw ay C o ............................................ 70
71
C ongress H otel c o m ............................................ 140
155
20
D o. p f d .................................................................. 85
95
5
C ream ery P a ck a g e ............................................... 101
108
8
E lgin N ational W a tc h C o ................................... 181
184
8
F ederal L ife Insurance . . .................................. 90
110
G reat W estern C ereal ................................................
40
♦Illinois B rick (n ew ) .......................................... 55
58
6
International H a rv ester .................................... 88
96
6
75
6
*K n ick erb ock er Ice p f d ...................................... 70
M ason ic T em ple A sso cia tio n .......................... 57
52
3
M an u factu rers Fuel C o .......................................
1
7
*N orth w estern Y e a st .......................................... 205
212
16
P ag e W o v e n W ire F en ce p f d ...................................
60
5
R a ilw a y E x ch a n g e ............................................... 150
..
8
S trow g er A u to m a tic T ele p h o n e ........................
9%
11
1
W estern E lectric ................................................ 260
280
8
Unlisted Bonds.
A m . S chool F urniture 6’ s ......................................
65
A m . S team ship 5’ s .................................................. 97
*A u d itoriu m 5’ s ......................................................
97
D o. Cons. 5’ s ........................................................
70
B oard of T ra de 4’ s ................................................ 101
♦Chicago A th. A ssn. 1st 6’ s .............................. 100
**
D o. 2nd 6’ s ...................................................
95
*C h icago & M ilw aukee E lec. R y. 5’ s ................ 99
D o. R. R . n ew 5’ s .............................................. 99
C icero Gas 5’ s ........................................................
96
C ongress H otel 1st 6’ s ........................................ 105
D o. 2nd 6’ s ................................................................
D o. 1st new bldg. 4 % ’ s ..........................................
D o. 2nd n ew bldg. 5’ s ............................................
G reat W estern Cereal 6’ s ............................................
H a rtford D ep osit 6’ s ............................................ 103
D o. n ew bldg. 5’ s ................................................ 95
*Illinois T unnel 5’ s ................................................
95
92
*K n ick erb ock er Ice 5’ s ..........................................
M ason ic T em p le 4’ s ................................................ 97
N ational S afe D ep osit 4’s ..................................... 98
N orth S hore Gas 5’ s ................................................ 95
N orth S hore E le ctric 5’ s .................................... 95
N. W . Gas L. & C. Co. 5’ s ................................. 98
*P age W o v e n W ire F en ce 5’ s ............................
69
U. S. B rew in g 5’ s ..................................................
87
♦W estern S ton e 5’ s ................................................
85
♦Listed on C h ica g o S tock E xch an ge.
75
102
101
95
104
105
102
99
112
100
100
94
109
99
97
95
102
101
99
100
103
74
94
S A L E OF C IT Y BO N D S.
The City of Sauk Centre will receive sealed
bids up to Ju ly 15, 1905, at 9 o’clock a. m., for
$10,000 refunding bonds, to run ten years at 4
per cent semi-annual interest. Address J. F.
Cooper, Sauk Centre, Minn.
J . J . Deright & Co.
SAFES
G E N E R A L A G E N TS
M A N G AN ES E
STEEL SAFE C O .
Largest
Stock
of
New
and
Second Hand Bank Safes
in the Northwest.
255
185
114
Í65
¿70
318 Second Avenue So.
M IN N E A P O L IS
A b s o lu t e ly B urg lar Proof
THE
26
U NIO N
COMMERCIAL
F . H . WELLCOME, President
F. E. KENASTON, Vice-Prest.
BERT WINTER, Sec. & Treas.
-
I F^ V E S T M E N T
1905
C o rre sp o n d e n c e and Perso na l
In te rvie w s with C o untry B a n k
ers and In ve sto rs Solic ited
S E C U R I T I E S
FARM M O R T G A G E S
BANK LOANS
$ 5 0 0 ,0 0 0
M IN NE A PO LIS
Bank of Commerce Building
i,
COMPANY
IN V ESTM EN T
Authorized Capital
Saturday, Ju ly
WEST
M U N IC IP A L B O N D S
C O M M E R C IA L PAPER
INCREASED DEMAND FOR SUBURBAN HOMES.
About twenty-five years ago our large western cities
in a spasm of municipal business ambition, suddenly
spread their borders, taking in nearly everything suburban
and much that was truly rural into the pale of the munici
pality. This was done in anticipation of no retrogression
in the then rapidly advancing value of outlying real estate.
In most instances a quarter of a century has hardly suf
ficed to bring the fact up to the popular theory of that day.
W e now see that the times were not ripe for a large
demand for such outlying property. The population was
not coming to the city in so large proportion as to w a r
rant the value asked. T here was still farm land of easy
acquisition and much of the increase in population was
country ward. Moreover the city inhabitant was îeasonably well pleased with his city home, near his business
and well “ down town.” He was on the overage a trans
plantation himself from the country, and the change from
raw country conditions to real urban surroundings was
recent enough to be a pleasing variation, Aid speaking
in general terms, he was well content to remain within
brick walls on a narrow city lot.
A g e n c y o f th e T r o lle y a n d
th e
T e le p h o n e .
Above all, the facilities for transportation to and from
far suburban points were slow or crude or both or did
not exist at all. Much of the suburban property platted
for sale, had no transportation facilities that would at
tract men who had money enough to buy at fair prices.
The result was that, aside from ,a few rasl1 homemakers
or real estate boomers who in their haste erected far flung
“ follies” of which they later repented at their leisure, no
body moved into these platted tracts. When the bottom
fell out of the market, a sprinkling of poor people who
took to the country by choice or from necessity, moved
to these outskirt lots, built small habitations or rented
the deserted houses of the rash. No one who wished to
be in close contact with his business or his social or re
ligious affiliations and could afford to pay down town rent,
cared to look countryward.
T o take care of this class of urban population the
tenement and the flat grew and thrived, thus solving the
problem of increasing home areas by vertical instead of
horizontal additions. To this day this method of housing
a population with purely urban tastes or needs, is popu
lar and more or less profitable for the landlord. It has
the ostensible advantage of lifting the care of a home
from the back of the householder. But it is proving also
without a redeeming exception, to be lifting also from the
householder the exterior jo y of the home and the greater
part of that environment that gives the home an identity
and the family a lively interest in its housing and its
neighborhood conditions.
G e tt in g
B a c k to
N a tu r e .
The trolley car and the telephone with gradually de
creasing cost and increasing efficiency of service are ap
pealing to this cooped up population in the congested
brick piles. The appeal has come in good time; for the
great mass of country people who rushed to the cities in
the decade from 1880 to 1890 when our city population was
growing twice as fast as our country population, are now
at an age when the memory of country life comes back
purified of its then dull coloring. Th ey see from their
third story flat windows that their own children are being
robbed of what unconsciously to them was the best part of
their early education—the country with its growing things
and its opportunities for joining hands with nature in her
ever changing operations.
The time is now at hand, and everyday facts are prov*
ing it, when a very large and desirable element of the city
population will be seeking small acres for homes along
rural trolley and steam car lines with good urban connec
tions. There is a splendid revival of interest in homes
that has been begun in suburbs, but now is much in evi
dence in our best western villages. The making of home
grounds attractive was of comparatively little interest with
the average householder twenty-five years ago. The pos
sibilities of exterior attractiveness in a country home
were not much realized in the west then. It was this ana
the isolation that was driving the population to the city
then. It is the beauty of the country home and the easy
communication between homes that is bringing people out
of congested centers to attractive outskirts— even to points
well beyond the city limits. Farther east these attractions
are building up villages fifty miles or more from the daily
city business of the householders.
While the deserters from the country of two decades
ago were learning that city life was not all that country
life lacked, the country at large learned it also,_ and the
farm lands they left increased in value so _rapidly that
four times the price they received for their dull acres
would hardly suffice to buy them back today. It is not a
too daring prophecy to say that, speaking broadly, this
farm land will in the next quarter century fully double its
present high value.
BLAST FURNACE FOR TACOMA.
(S p ecia l C orresp on den ce to T h e C om m ercia l W e st.)
Tacoma, June 24.— A project for a large blast furnace
at Tacoma, or some adjacent point on the north Pacific
coast, is drawing toward completion. This project rests
upon the iron ore mountain found some time ago in south
eastern California near the Nevada line, and not far from
the new Salt Lake, Los Angeles and San Pedio lailroad.
This mountain of ore is an isolated peak, and consists of
bessemer ore, covered by a very slight surface, so that it
can be easily mined by steam shovel, being a soft ore, and
its grade is excellent, averaging so far as explorations
have shown, about 58 to 60 percent iron and partly below
Hom eseekers’ Rates.
Via the Minneapolis & St. Louis R. R. On first and
third Tuesdays of each month, to Nebraska, Kansas, Mis
souri, Arkansas, Oklahoma, Indian Territory, Texas, New
and partly above the bessemer limit in phosphorus. It
can be cheaply mined.
The cost of pig iron on the western coast has been
the determining factor in this proposed development. The
projectors of the scheme have secured rail rates to San
Pedro harbor of $3.25 a ton, and an ocean rate to Tacoma
of 75 cents. To be added to this is a 50 cent dock charge,
making the transportation of ore from the mine to Tacoma
$3.50 a ton. It is proposed to utilize coast coal for coke
and to erect a furnace of about 350 tons capacity. Alfred
Merritt, the owner of the ore property, is associated with
some Tacom a men in this enterprise. Mr. Merritt is
now at Pasadena, Cal., but spends much of his time in
Duluth, Minn., where he has large interests.
Mexico, Colorado, and other states. Stop-overs allowed.
Fo r rates, time of trains, etc., call on agents, or address
A. B. Cutts,
G. P. & T. A., Minneapolis, Minn.
IS NOW THE PLACE TO
. . . . MAKE MONEY
KOOCH
F A L L S
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
For Information W rite to
T H E
E N G E R -ftiO R D
R E A L T Y
C O .
120 Temple Court
MINNEAPOLIS.
Saturday, Ju ly
Th e
i, 1905
c o m m e r c ia l
27
w est
NATIONAL BANK
M INNESO TA
O F F IC E R S :
A . D. C l a r k e ,
MINNEAPOLIS, MINN.
DESIRABLE
BUSINESS
President.
F. L. W illia m s,
Vice-President.
S. T. J o hn so n ,
Vice-Pres. & Gen’ l Mgr.
H. G. M e r r it t ,
Cashier.
SOLICITED
DIRECTORS:—A. D. Clarke, F. L. Williams, S. T. Johnson, H. G. Merritt, H. E. Fairchild, Joseph Molyneaux, A. J.
Powers, L. H. Johnson, M. G. Pflaum, John McCulloch,'S. H. Taylor, E. H. Moulton, J. A. Modisette.
ELECTRIC MINE POWER ON MESSABI RANGE.
(S p e cia l C orresp on den ce to T h e C om m ercial W e st.)
-4
-
Duluth, Minn., June 27.— A n effort is to be made to sup
plant steam by electricity at the mines of the Mesabi range.
The Great Northern Power Company, whose great plant
near this city is well underway, and which should have its
wheels in motion in less than a year, is now investigating
the matter and has its general manager now working out
the plans.
There is a great field for the use of electrical power on
the Mesabi. Between Hibbing and -Sparta, a distance of
about 36 miles measured along the line of the ore bearing
formation, there are 52 operating shafts and about the
same number of heavy steam shovels. Many of these
shafts are pumping heavily and steadily, several of them
up to 1,200 to 1,500 gallons a minute. None of these
operations are more than 55 miles from the company’s
power station at Duluth, measuring in a direct line. At
Buhl two ve ry heavy electric stripping installations are
going in, to be operating late this fall or early next year,
and if these are as successful as is expected by the own
ers and engineers they are sure to be followed by others
of a similar character and the field of stripping will be
materially extended to greater depth of overburden. East
of Sparta, on the same range, and fully as well located
for taking power from these works, are eight or nine shafts
now in commission, several of them heavy pumpers, and
west of Hibbing there are now five and a number more
planned for immediate development.
On this western
part of the range, too, will be a considerable power for
concentrators and surface pumping. A t Coudan and Ely,
Vermilion range, are ten deep shafts, some of them down
to 1,000 feet, and all big producers. These are further
from the source of power than any of the Mesabi proper
ties, but not too far for economical distribution. While
it is by no means impossible that electricity shall be sub
stituted for steam in the movable steam shovel, it is not
probable that the efforts in this direction will be as urgent
as to replace steam engines by motors at shafts and in
pumps.
There is just now, on all ranges, and in the copper
region of Lake Superior, a very considerable increase of
interest in electrical mine power, and at several points im
portant installations are in progress or are to be under
taken soon. A t one Menominee range point this will be at
a cost of about $250,000, while at many mines on all ranges
electrical equipment is under serious consideration.— D.
E. W.
RECORD ORE SHIPMENTS FROM TWO HARBORS.
(S p e cia l C orresp on den ce to T he C om m ercia l W e s t.)
Duluth, June 27.—Ore shipments at T w o
Harbors,
Minn., last week were 292,000 tons and for the month the
shipments will probably be about 1,100,000 tons. This is
the best the port has ever done. Receipts of coal there
are very large, amounting to about 7,500 tons weekly. This
will have to be maintained through the season to give
the total required at mines and the ore roads for the year.
The port is shipping a large amount of lumber, probably
50,000,000 feet this year, and not less than 10,000 cords of
spruce wood for paper making. Outside of these items
it has no marine trade. The project for enlarging this
port by the use of Burlington bay which lies to the east
of the point that is now the shelter of boats landing at the
docks there, is sure to come up before long, and must be
settled. There is no more room for ore docks at the
present harbor. The present increase in length of No. 3
>
B U I L D I N G A C T I V E IN W I N N I P E G .
(S p e cia l C orresp on den ce to T he C om m ercia l W e st.)
y
Jm
V
Winnipeg, June 26.— E. H. Rodgers, the city building
inspector, has made the announcement that the building
figures for Winnipeg since the opening of the year had
passed the six million dollar mark. In all, 1,435 permits
have been issued. These figures are in advance of those
for the corresponding period of last year, as at that time,
the six million mark had not been reached. The number
of permits is also largely in excess of the number which
had been issued at this time last year.
Mr. Rodgers declared that he had never seen such
building activity in Winnipeg as existed at the present
time. “ W h y ,” he said, “ the building permit business has
been much greater this year than ever before and still it
is keeping up and there seems to be no sign of decrease
in the daily amount of business that is transacted in this
office.”
According to Mr. Rodgers, the largest number of build
ings are being erected in the western and northern parts of
the city, but he also stated that in other portions of W in
nipeg there were many structures going up. He thinks
makes it hard for vessels to turn in winds and there is no
chance for any more. There is no question but that the
commerce of the port is bound to increase, and the Du
luth, Missabe & Northern throws on the Duluth & Iron
Range more and more of its eastern Mesabi business,
which it must do as time passes, there will be an ore ton
nage at T w o Harbors that will require more room. When
the project of improving Burlington portion of the “ two
harbors” came up before the war department, some five
years ago, it was rejected, but it is thought that now,
with the assurance of more business and with the new
arguments that can be brought forward by the present
owners of the road and port, an appropriation can be se
cured. An effort along this line may be looked for at the
next session of congress, or in the next river and harbor
bill. The improvement will require a very heavy and
quite a long crib breakwater at Burlington bay. There
is.no bottom in which piles can be driven and the work
will all have to be rock filled cribbing or a concrete
monolith, whichever may prove the cheaper and better.
that this ye ar’s building figures will break last ye ar’s rec
ord for the value of buildings erected.
FORT
F R A N C IS
TO
BE
R E B U IL T .
L. L. Enger, of the E nger-N ord Realty Company,
speaking to T h e C o m m e r c ia l W est regarding the situation
at Koochiching Falls, says: 1 “ There is splendid openings
for merchants at Fort Francis. The recent fire which
cleaned out the business district at a loss of $200,000, will
be a benefit. The town council will now put in force regu
lations providing for fireproof buildings in the business
district. The retiring of one large firm from active busi
ness opens an excellent field for some enterprising mer
chant.”
TO
C A L I F O R N I A F IR S T C L A S S .
Improved service over the Minneapolis & St. Louis
Railroad. Through palace sleepers connecting at Kansas
City Union Depot with the fast limited trains over the
Santa Fe and Rock Island Roads. The only line with
through sleepers. F o r tickets and reservations call at
Minneapolis & St. Louis Ticket Offices.
W E W I L L D IS C O U N T
L U M B E R M E N ’S P A P E R .
W .
C O M M E R C IA L P A P E R .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
B . M
c K E A N D
A N D
C O .
T H E R O O K E R Y , C H IC A G O .
THE
28
COMMERCIAL
Saturday, Ju ly
WEST
I, 1905
"A
HUNTER
COOPER
ó
CO.
<
H IG H C L A S S C A N A D IA N S E C U R I T I E S
N ew YorR.
W IN N IP E G .
London, England.
C A N A D IA N W E ST R A IL R O A D E X P E N D IT U R E S .
Followin g a recent statement that $250,000,000 will be
spent on railroad construction and extension in the Cana
dian W est during the next few years, the Wall Street
Journal has taken occasion to point out the manner in
which the expenditure of this vast sum will be distributed.
The Grand Trunk Pacific has not let western contracts.
The Lake Superior branch, 220 miles, is to be pushed im
mediately. It will cost about $6,600,000. , The eastern sec
tion, 1,800 miles of main line, has completed preliminary
surveys, and found a 4.10 percent grade. Contracts are ex
pected shortly. This division will cost about $50,000,000
cash.
The western section, 1,700 miles, is to be about 1,000
miles prairie road, costing about $20,000 per mile, or $20,000,000, and 700 miles of mountain road, to cost about $25,000,000.
This whole project, involving over 3,500 miles of main
line, is put in the estimate at $100,000,000. The figure is
low. When all projected branches are built the figure
will probably total half as much again.
C a n a d ia n
P a c ific
E x p e n d itu r e s .
The Canadian Pacific is set down for an expenditure of
$100,000,000. This looks high. Canadian Pacific has only
branch lines to build. At the moment the contracts for the
Toronto-Sudbury line are let, the cost to be $8,000,000.
The line parallels a Grand Trunk division. A similar line
to parallel the Midland division of the Grand Trunk 225
miles east from Midland is projected, to cost about $5,-
The Farm Land Movement.
The following are late farm land transfers, as taken
from official county records. T h e y indicate the value of
farm lands in the respective counties:
M in n e s o ta .
Renville County— John Severin to Biebl, ne% i 3-I I 2 -33,
$4,900; Nicholas H. Mahowald to Biebl, n /l 2 of s w 20113-33, $3,200.
Redwood County— M ary K. Meagher to Kremin, n y2
of sec. 20-112-39, $12,000; Nick Lau, Jr., to Moelter, nwRj
sec. 16 -111-37, $7,200; W. H. Bullard to Loomis, ne% sec.
20-111-39, $ 6,550.
St. Louis County—Elizabeth E. Peterson to Avery,
swj4 sec. 1-54*12, $2,700; H. V. Goetchins to Hendersen,
30 acres in 21-57-13, $1,050; Elizabeth Hornet to Realty Co.,
ej4 of sepj of 32-51-14, $1,000.
Wright County—A. Schultz to Pratschner, epj nwpj
sec. 32, Victor, $4,000; C. Strecker to Rankin, se% se% sec.
11, Southside, $2,500; L. R. Ritchie to Henneman, ne%
nepj sec. 23, Southside, $2,050.
Lac qui Parle County— A. J. Dyrland to Fleming, ne%
of 26 and nw%. sec. 25-116-46, $13,760; J. F. Rosenwald to
Wilding, ne% of sec. 22-119-46, $5,300; A. J. Peterson to
Soblom, se% of sec. 21-116-43, $ 5,3°°Stearns County—John B. Hiltner to Wiebolt, nwRt
nwH and other 20-125-32, $3,550; Jos. Moser to Moser, seA
swjd and other 12-122-31, $2,300; Cecilia Marshall to M ar
shall, sej4 nwRj and other 15-124-29, $1,000.
Dakota County—Willis A. Simpson to Nelson, 80 acres
in sec. 6, Waterford, $1,500; Alexander Cain to Laid, 80
acres in sec. 3, Empire, $4,800; Hannah A. Clark to McCallum, 400 acres in sec. 28, Empire, $7,000.
Jackson County— G. A. Albertus to Michelson, ne%
sec. 34, Heron Lake, $8,600; Andrew W. Mlazgar to
Schick, sjd nwj4 sec. 17, Minneota, $3,600; George Wesner
to Hojostek, w j 4 nw % of sec. 33, Hunter, $1,360.
Morrison County—Joseph Priener to Lockowitch, swpj
of nwpj and n w A of s w j j 16-41-30, $1,10 0; August Larson
to Mattson and Frank Skogberg, wpj of nwpj 27-130-30,
$1,600; A. C. Rothwell to Horch, se% 2-131-30, and ej/2 of
nej4 5-130-30, $5,ooo.
Swift County— H. W. Stone to Kavanaugh, nw A of sec.
33, Kildare, 160 acres, $3,200; R. J. Thunem to Strehlow,
n J/2 of nw A and n /l 2 of ne A of sec. 15, Torning, 160 acres,
$6,350; M ary E. Mattheisen to Olson, nwRj sec. 24, M a ry
land, 160 acres, $6,150.
Fillmore County—Lee T. Jester to Warner, s 60 acres
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
000,000. Another Ontario line is building from Guelph to
Goderich, 80 miles, to cost about $2,000,000.
Westward there are dozens of local branches either
building or about to> be built. These m ay be noted:
Pheasant Hill line, 210 miles; Wetaskiwin branch, 114
miles; Lacomb branch, 100 miles; Battleford extension,
225 miles; being a total of over 600 miles under construc
tion. In addition, over 300 miles of branches are actively
contemplated, making a total of nearly 1,000 miles in im
mediate prospect. On these there must be spent not less
than $20,000,000.
From Fo rt William to Winnipeg, 427 miles, double
track will be laid, making one cutoff of about 35 miles.
This project entails about $6,000,000 of cash. Other small
er branches, spurs, sidings, etc., bring the total of rail
road expenditure in sight up over $45,000,000.
C a n a d ia n
N o rth e rn
>
K
P r o je c ts .
The Canadian Northern has one ambitious project and
a dozen smaller ones. M cArthur of Winnipeg is work
ing on a 550-mile extension from Kam sack to Edmonton,
south of the Grand Trunk surveys. About 350 miles addi
tional are under contract. About $20,000,000 is involved in
all these contracts.
In addition, charters have been asked for a 200-mile
line into Assiniboia, and a regular system to cover the
counties northwest of Regina, N. W. T. These plans, and
about 125 miles in Quebec, will undoubtedly bring the
total up over the $250,000,000 estimated.
An independent but interesting project is the Klondike
Mines railway, to run seventy miles out of Dawson. Work
on this is under way.
k
K ,
of sepj sec. 5, Bloomfield, $3,600; Wm. Robertson to
Thompson, nl/ 2 se%
s eA , w A ' n e A , s e A nwpj> n e A
swRt sec. 14, Arendahl, $5,000; Nels H e g g to Hegg, w j 4
swj4 sec. 15, Harmony, $7,100.
Freeborn County— Hans Hanson to Hanson, wj/2 nej4 >
less one acre sold, sec. 13, Bancroft, $4,000; Andrew Jo h n
son to Bell, wj/2 s eA, sec. 16, Oakland, $5,000; Frank W.
Scott to Swenson, swRj swpj and 40 acres of south side of
lot 7, sec. 13, Pickerel Lake, $5,500.
Meeker County—Ole Anderson to Anderson, ny2 of
n e A sec. 17, Swede Grove, 80 acres, $2,000; Olof Nelson to
Pererson, n l/ 2. of n e A sec. 17, Swede Grove, 80 acres,
$2,400; E. Elliott to O ’Haire, e l/2 of nwA and s w j j of
n w A sec. 3L Union Grove, $4,480.
Mankato County— William G. Hoerr to Schulz, n e A
n e A sec. 22, Garde City, $1,200; George Hoehn to Rice,
ej/2 of nw%, sec. 10, Shelby, $4,000; Rudolph Wachtler to
Meyer, n e A n w A sec. 8, Shelby, and s 39 A acres of the
s w A of swp; of sec. 5, Shelby, $2,600.
Anoka County—-J. H. Batzle to Waldo, wpj e /2 n e A
and $y2 sekj sec. 25, and nwpj ne A sec. 26 and n e A n e A
sec. 36, Linwood, $4,400; Jas. Walton to Babler, e /
z2 ne%
w j 4 s e A sec. 18, nwRj n w A sec. 17, Burns, $4,000; Benj. T.
Pope to Hollins, nwpj sec. 4, Blaine, 80 acres, $1,600.
'-A
"A.
Put
Watonwan County— C. N. Sonnesyn to Marwick, s e A
of s w A , sec. 18, also e A
l of n e A and e /2 of w y2 of nepj
and the n w A of s e A , sec. 9, Butterfield, $10,000; Julia A.
Olson to Olson, n e A of swj4 > sec. 8, Madelia, $1,400; Ole
O. Iverson to Skjedser, wR> of sec. 1 and wpj of n w A of
sec. 12, L o n g Lake, $8,000.
*
N o r t h D a k o ta .
Cass County— Geo. O. Fenimore to Fenimore, s e A 27140-50, $5,000.
Bottineau County—J. A. Greig to Greig, s /l 2 nw%, sRj
ne% 5-161-80, $2,500; A xel Carlson to Sfivelkoul, swj4
29-159-83, $2,700.
Burleigh County—Land Co. to Gregor, swpj sec. 7t38-75, $ L 7°S ; Charles Graham to Patterson, undivided
y int in nej4 sec. 28-139-77, $1,500.
Foster County— T. F. McCue to Snyder, nepj 28-147-62,
$2,000; Land Co. to Hiserodt, seRj 21-146-65, $1,844; Geo.
A. L y n k to Llanson, wpj 13-147-65, $2,200.
Traill County— Iver Lee to Klabo, nepj n ^T
A and wj4
nejd, and e .y nwj4 sec- i - I46-53, $12,167; Frank Crane to
Skrivseth, s y2 seJd sec. 11-14 7-51, $2,400; O. B. Olson,
sheriff, to Marvin, n w A sec. 10-144-52, $1,153.
Steele County— J. D. Brown to Jones,, se% sec. 1, Hugo,
$4,800; Clara D. Brown to Jones, w j 4 sec. 1, Hugo, $9,690;
V
•c
Saturday, Ju ly
>
I,
THE
1905
C o r n e r A d a m s an d Cl ar K S t s . ,
I
'
Accounts of Country Bankers Solicited.
k-v
A
A
»
C H IC A G O .
Address F. W. THOMPSON, Mgr., Farm Loan Dept.
to points in Arkansas, Louisiana, Missouri, Kansas, N e
braska, Texas and other states.
Tickets good 21 days
and good for stop-overs. The Missouri Pacific Railway
and Iron Mountain Route reach important points in the
west and Southwest, without change.
For further information address,
Ellis Farnsworth, D. P. A .,
h i Adam s St.,
Chicago, 111.
S o u th D a k o ta .
YALE REALTY C O M P A N Y
Codington County—Joh n Walklin to Chroust, se% 7r 16-53, $4,000.
Ffughes County— F. A. Kendall to Ramsey,
sec.
23-111-75, $1,700.
Minnehaha County— William Flicks to Flicks, und %
of swki 32-103-47, $4,000.
Charles M ix County—-Emanuel Hahn, Jr., to Beck, swJ4
sec. 29-97-62, $5,000; Jacob Barnett to Cummings, sej^ sec.
9-100-71, $3,000; Joseph W. Linkhart to Fraisher, wpii sec.
2-96-63, $10,000.
Beadle County—Joh n Edvenson to Kelley, ne% 20-11264, $2,000; Michael Anderson to Thackaberry,
10-10995, $7,200; Christian Anderson to Thackaberry,
10 and
ne% 15-109-65, $10,800.
Yankton County— J. Waldner to Mennonite Society,
sec. 5 lots 8, 9, 10, 11, 12, 13, w /l 2 sw H se% swl4 5, lot 2
n]/2 n w ^ 8-95-57, $32,000; S. B. Reese to Johnson, nwp4
swj4, s w j j n w Y\, part ne% 10-95-54, $8,200.
V
-f
M IN N E A P O L IS
Real Estate Bought, Sold, and Exchanged
on Commission
■ ■—
W rite for our list of investm ents in amounts from $ 5,000
to
$ 10 0 ,000 ,
netting good rates of interest.
loaned on im proved
M oney
M inneapolis R eal Estate.
Prop
erty carefully m anaged for non-residents.
The American Mortgage & Investment Co.
251-2-3-4 Endicott B ldg.,
ST. P A U L , M IN N .
Offers
W oodbury County— E. F. B ag ley to Brownmeester, nRi
of s o f n w ° f sw H of sec. 18-89-47, sep* of ne% of seRi
of sec. 13-89-48, $3,500.
Chickasaw County—Joseph Marion, Jr., to Fishback,
60 acres, 11-95-14, $3,360; Willie Marion to Marion, 80
acres, 10-95-14, $4,800; Theresa N ovotny to Novotny, 120
acres, 11-96 -11, $2,600.
Dickinson County—FI. O. Koeneman to Scott, nwj4
sec. 13, Silver Lake, $6,720; Frank Patch to Ryan, n w j j
and wR> neJ4 sec. 31, Silver Lake, $13,000; Arthur Pitcher
to Kendall, n /l 2 of
and seRl of nef4 sec. 23, Rich
land, $6,300.
Floyd County— Lina Bissonnette to Slinger, s /l 2 s w j j
2-94-15, $4,600; C. W. Bowman to Ikenberry and Maggie
Ikenberry, sw j4 28 and ne%
29-94-17, $16,000; John O.
Bullen to Perry, c]/2 swRi
and s e jJ se% 4-94-15, except
1 acre for school, $3,540.
CHOICE FARM MORTGAGES
W is c o n s in .
p-
J . 8 . H O O P E R , S e c y - T r c a «.
Io w a .
Dunn County— Fred W. Turrittin to Conrath, 80 acres
New Haven, $1,800; M ary E. Wheeler to Crayton, 75 acres,
Tiffany, $2,450.
*
O l d e st B a n k in C h i c a g o .
A t t e n t i o n is c a l l e d to o u r F a r m L o a n D e p a r t m e n t .
F I R S T M O R T G A G E S ON I M P R O V E D F A R M S B O U G H T A N D S O L D .
Frank Lynch to Gilbertson, s /l 2 and nwJ4 sec. 21, Easton,
$ 11,375Stutsman County— Fannie B. Nickeus to Johnson, w j 4
15-144-65, $4,160; John G. Lund to Severn, nwRl 12-139-64,
$3,000; John Lenthold to Frankson, all 35_I38-65, $9,000.
Ram sey County— C. A. Swarthout to Schell, sw 14 I 5"
i 5 7 -6 i , $2,500; Albert Paulson to Russell, s j 4 1 and n /
12-156-63, $14,800; Michael J. Dunn to Flalverson, sl/ 2 of
se% 2 and wLi of ne% 11-158-60, $3,000.
Barnes County— Kolbein Hovde to Thompson, t]/2 nej4
and sw % 32-138-57, and fraction nJ4 se% 32-138-57, $6,375.25; S. F. Sherman to Weber, nwJ4 22-139-56, $4,000;
John Peterson to Spink, n /J 2 and se% 32-142-56, $8,960.
A
At
29
WEST
The Merchants Loan 6 Trust Company
CAPITAL AND SURPLUS" - - $6,000,000
D E P O S IT S .......................................... 52,000,000
r->
COMMERCIAL
ST. P A U L B R O K E R S M ER G E.
The firm of Jam es Doran & Co., of St. Paul, has taken
over the business of M. Doran & Co. including all ac
counts and open trades. The elder Doran is the pioneer
broker in the northwest. His business career dates back
to 1869 and for more than a quarter of a century he has
conducted a grain and stock brokerage business in St.
Paul. His record is remarkable in that he never had any
serious difficulty or lawsuit with a customer.
In his 78th year he retires from active business.
James Doran was associated with his father for many
years, but for past five years has conducted a successful
business under the name of Jam es Doran & Co. in German-American Bank Building.
L o w R ates to California and Return via Chicago Great
W estern R ailw ay.
T ick e ts on sale d u rin g the m on th s o f M ay, June, July, A u g u st
and S ep tem ber to San F ra n cisco, L o s A n g eles an d San D ieg o
and retu rn . T ick e ts g o o d 90 days. C h oice o f rou tes m a y he
had. F o r fu rth er in form ation apply to R. H . H eard, G eneral
A g en t, cor. N ico lle t A v e. and F ifth St., M inneapolis.
H om eseekers’ E xcu rsions.
The Missouri Pacific Railway and Iron Mountain
Route will sell round trip tickets on the first and third
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to conservative investors at attractive rates. Cor
respondence invited. All loans personally inspect
ed. Send for our list of loans.
HENRIK STROM,
G. B. EDGERTON,
Preeident.
Vice-President.
W. T. SUCKOW, Sec. and Treas.
CHUTE
REALTY
CO.
3 1 0 C E N T R A L A V E N U E , M IN N E A P O L IS
Specialty:
Manufacturing Sites, Trackage, Etc.
A
large number of large and sm all manufacturing build
ings with or without trackage.
J. F . CALHOUN
goo Oneida Building, MINNEAPOLIS
Agent for
ttie
Drexel
E^Mtate
Real Estate and Loam ,
Bond*, Land* and Mortgage*.
Reference«: Drexel Eatate, Philadelphia, or any Bank In Minneapolis
E lw o o d S. C o r s e r , Pre*.
W i l l i a m B. T u t t l e , Trea*.
L e s t e r B. E l w o o d , Vice-Pres
E d w a r d B. N ic h o l s , Secy.
Corser Investment
Co.
Manager New York Life Building
Established 1870
M O R T G A G E L O A N S , R E A L E S T A T E and IN S U R A N C E
Special attention given to Management of Estate* for Non-Residents
New York Life Building,
MINNEAPOLIS
L U T H E R S. C U SH IN G
REAL ESTATE
JO H N T O W N S E N D
C a re a n d M a n a g e m e n t o f
F IR E IN S U R A N C E
E n d ic o tt B u ild in g ,
•
.
D. P. ion**, Pres.
W . H. Dav is, V-P res.
ST. PAUL
W. C. M c W h l n n y , Sec. & Tr*a*
D A V I D(Established
P. 1868.
J OIncorporated
N E S1900.)& C O .
Mortgage Loans,
Real Estate and
Rentals
Special attention given to management of estates of non-residents.
Satisfactory reference to local aud eastern parties.
Main Floor Bank of Commerce Building,
M IN N E A P O L IS
THE
30
COMMERCIAL
P
SO UTH ST. PAUL
U N IO N S T O C K Y A R D S
I_S O U T H S T . P A U L , M I N N .
Live Stock Markets.
(S p ecia l C orresp on den ce to T he C om m ercia l W e s t.)
H ogs.
South St. Paul, June 27.— Receipts of hogs at six large
markets for the first three days this week total about
185,300, compared with 194,700 for the first three days last
week and 181,600 for the corresponding period last year.
South St. Paul received about 8,100 hogs during the first
three days this week, against 9,900 for the first three days
of the week previous, and 11,300 for the like three days
last year.
There were 387,900 hogs received at six large markets
last week, against 377,800 for the week previous, 331,600
for the like week last month, 288,200 for the same week
last year, and 311,400 for the corresponding week two
years ago. H og receipts here last week were 14,600, com
pared with 17,000 for the preceding week, 25,000 for the
same week last month, 17,900 for the corresponding week
last year, and 18,400 for the like week two years ago.
With moderate receipts and quality of hogs only fair,
the week has seen a 25c raise in prices. One fancy load
of Yorkshire prime bacon hogs topped the market today
at $5.55 which is 10c higher than anything else here
These are a very desirable class of hog and can always
be sold at a premium. A good share of the run lately has
been the rough packing kind which are as undesirable
as the better kind are wanted. On today’s market the fol
lowing prices are quotable:
Choice lights $5-4°@5-55 i
light mixed $5.30(0)5.45, choice heavies $5.40, rough heavies
and packing $ 5@ 5.io. The bulk today was $ 5-35. as
against $5.10 last Wednesday, $ 5@ 5-05 a year ago, $5.55
two years ago and $7.i5@7-2S three years ago today.
C a ttle .
Combined receipts of cattle at six prominent markets
during the first three days this week totaled about 69,100,
compared with 62,500 for the first three days of the week
previous and 74,800 for the like period last year. Local
cattle receipts for the first three days this week were
about 3,400, against 2,600 for the first three days last week,
and 3,000 for the corresponding three days last year.
Six important markets had an aggregate cattle supply
last week of 127,300, against 137,200 for the preceding
week, 142,700 for the same week last month, 144,000 for
the like week last year, and 151,900 for the corresponding
week two years ago. South St. Paul received 3,,100 cattle
last week compared with 4,000 for the week previous, 5,100
for the like week last month, and 3,900 for the same week
last year and 6,100 for the corresponding week two years
ago.
A fair average run of cattle was evident the past week.
Much of the run however consisted of stock and feeding
stuff and with the scarcity of beef and butcher cattle prices
in this division held steady, with the supply not equal to
the demand. A local packer received two loads of steers
at another market not being able to get enough of the
kind here. A bunch of good cornfed steers averaging 1,271 lbs. brought $4.75, some fair steer stuff sold from $4.15
to $4.40. Butcher cows sold steady at $3.50 for the top.
Cutters and canners were steady. Bulls continue slow.
Veal calves are strong with at top of $5.00. There has
been a big drop in the stocker and feeder end the past
week, and the market has been slow and inactive. There
are few buyers in the yards, but they seem to be indifferent
to secure much stuff and are lower bidders than the yard
traders. Anything real good in the dehorned feeder line
would sell steady with last week. Cows and heifers are
not in the demand they were a week ago and are lower.
Feeding bulls are selling 15c under a week ago.
Saturday, July
1905
I,
S th e b e s t e q u ip p e d a n d m o s t ad=
v a n ta g e o u s m a r K e t fo r liv e stocK
s h ip p e r s in the N o r t h w e s t. It is
c o n n e c te d w ith a ll th e r a ilr o a d s and
w a n t s 1 ,0 0 0 b e e v e s a n d 5 , 0 0 0 h o g s
d a ily .
Y o u r s h ip m e n t s a re in v ite d .
I
M . D. FLOWER, Pres. H. B. CARROLL, Ren,Sup.
being enough on hand to supply the demand. The quality
of stuff coming is mostly fair to good and it found ready
outlet, buyers being ready bidders. Values for the week
have ruled steady. The handy weight stock is having
the preference, packers not having the use for the heavy
stuff. A bunch of spring lambs today brought $6.25, but the
quality was exceptional, the top for this kind being mostly
$6.00 and these must be good. A small bunch of ewes
brought $5.50 and 152 western shorn wethers and ewes
$4-75- Quotations: Good to choice native lambs $5@
$5.85, fair to good, $4@5, yearlings $4.50(0)5.50, wethers
$4(0)4.65, good to choice ewes $3.75(0)4.40, common to fair
ewes, $3@3-7S, culls and stock ewes, $2@3, spring lambs,
$4.50(0)6.50.
R eceip ts at the S outh St. P aul yards thus fa r in 1905, w ith
com p arativ e figures:
1905.
1904.
Inc.
D ec.
76,414
37,844
Cattle ........................ 114,258
25,141
19,608
C alves .......................
5,533
510,596
25,981
H og s .......................... 484,615
251,539
40,840
Sheep ......................... 210,699
503
1,218
778
H orses ......................
Cars ...........................
11,375
10,399
976
R eceip ts o f live stock a t South St. P aul fo r the w eek ending
pHru=»c;rli4
. T n n p 28, IQOFk*
W edn
esda y , June
1905:
Cattle. H ogs. Sheep. H orses. Cars.
141
51
507
2,806
T hursday, June 2 2 ...
297
1,842
279
35
F riday, June 23 ........
128
1,814
386
29
S aturday, June 24 ..
747
2,117
117
30
51
M onday, June 26 . . .
554
86
3.297
T uesday, June 27 . . . . . . 1,552
63
668
2,949
584
W edn esda y, June 28.
T ota ls
.................... . . .
3,899
14,825
R eceip ts o f live stock at S outh
W edn esda y , June 29, 1904:
Cattle.
285
T hu rsday, June 23 ... .
416
F rid ay, June 24 ..........
98
S aturday, June 25 . . . .
M onday, June 27..........
807
.
.
1,579
T uesday, June 28..........,
713
W edn esda y, June 2 9 ...
T ota ls
..........................
3,898
Range
of
30
2,061
^
<
^
^
<
K
X V* ■
315
St. P aul fo r the w eek en d in g
H ogs.
1,784
2,587
1,674
4,742
2,851
3,834
Sheep.
158
248
134
1,216
1,459
388
17,472
3,603
H og
95
26
32
Cars.
33
52
30
98
88
79
153
380
H orses.
A.)
S a le s.
T h is W eek . P rev iou s W eek .
T h u rsd ay ................................................ $5.0 0@ 5.2 5
$5.20@ 5.30
F rid a y ...................................................... 5.1 0@ 5.3 0
5.1 5@ 5.3 2%
S aturday .................................................. 5.1 0 @ 5 .3 2 1/£
5.15@ 5.35
M ond ay ................................................... 5.20@ 5.35
5.1 0@ 5.3 2%
T u esd a y .................................................. 5.25@ 5.45
5.05@ 5.30
W ed n esd a y ............................................ 5.30@f>.55
5.00@ 5.25
B u lk
of
H og
S a le s.
T h is W eek .
T h u rsd ay ............................................. $5.10@ 5.15
F rid a y .....................................................
5.1 5@ 5.2 0
S atu rd ay ............................................ 5.15@6.2'5
M ond ay .................................................... 5.20@ 5.25
T u esd a y .................................................. 5.35@ 5.40
W ed n esd a y ......................................... 5.35
--------------
C o n d itio n
o f H og
T u esd ay ..................5c to 10c higher.
W ed n esd a y ............Strong.
P rev iou s W eek .
$5.20 @ 5.25
5.20 @ 5.25
5 .2 2 % @ 5 .2 7 %
5.15
5.15 @ 5.25
5.10
@ 5.25 ^4
<■
M a rk e t.
T h is W eek .
T h u rsd ay .............. Strong.
F rid a y .....................5c higher.
S aturday ................S tron g to 5c higher.
M onday .................. 5c higher.
P rev iou s W eek .
5c higher.
S trong.
S trong.
L igh ts steady, others
big 5c low er.
Steady.
10c low er than y e s terd a y ’s close.
j
■*.
*
C o m p a r a tiv e R e c e ip ts o f H o g s .
L a st W eek .
C hicago .................................. 152,100
K an sas C ity ........................
59,300
S outh O m aha .........................
66,800
S outh St. J o s e p h ...................
53,300
Blast St. L ou is .......................
41,800
S outh St. P a u l.........................
14,600
T ota ls..................................
S heep.
Supplies of sheep at six big markets during the first
three days this week total about 78,900, compared with
86.400 for the first three days of the week previous, and
74,300 for the like three days last year. South St. Paul
received about 900 sheep during the first three days this
week, against 4,300 for the first three days last week, and
3,000 for the like three days last year.
A ggregate sheep receipts at six prominent markets last
week were 127,700, against 143,400 for the week previous,
139.400 for the same week last month, 155,800 for the like
week last year, and 151,100 for the corresponding week
two years ago. Sheep receipts here last week were 700,
compared with 1,000 for the week previous, 700 for the
like week last month, 2,300 for the same week last year,
and 1,300 for the corresponding week two years ago.
Receipts of sheep have been only moderate, there not
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WEST
387,900
P rev iou s W eek .
139,400
65,300
63,300
48,400
44,400
17,000'
377,800
Y ea r ago.
115,300
41,700
53,100
27,000
33,200
17,900
288,200
<1
C o m p a r a tiv e R e c e ip ts o f C a ttle .
L ast W eek .
C h icago ..................................
49,000
K an sas C ity ........................
26,900
South Om aha ......................
19,200
S outh St. J o s e p h ....................
6,900
B a st St. L o u is .....................
22,200
South St. Paul ........................
3,100
T ota ls
..............................
127,300
P rev iou s W eek .
59,600
28,300
17,800
8,200
19,300
4,000
137,200
Y ear ago.
63,500
28,500
11,500
8,000
28,600
3,900
T ota ls ...............................
127,700
P rev iou s W eek .
75,700
19,000
8,300
9,600
20,800
10,000
133,400
V
144,000
»-
C o m p a r a tiv e R e c e ip ts o f S h e ep .
L a st W eek .
C h icag o ..................................
66,100
K an sas C ity ........................
24,200
S outh O m aha ......................
18,400
S outh St. J o s e p h ................
4,700
B a st St. L ou is ....................
13,600
S outh St. P aul ....................
700
.4
Y ea r ago.
84,400
21,000
12,400
8,000
27,700
2,300
155,800,
Saturday, Ju ly
I, 1905
THE
b^G R A IN
COMMERCIAL
WEST
31
&>■ M I L L I N
COMMERCIAL WEST CROP BULLETIN.
Com m ercial W est Office, Ju n e 29.—T h is is the period of crop-m aking and crop-m aking develops the period of
price-m aking. There is a difference of about 75,000,000 in the estimate of winter wheat production, and we take the
conservative side. Final estim ate of w inter wheat w ill be made in these columns next week.
The spring w heat w ill soon be under investigation. The present situation is not w holly favorable; there has
been too much rain and not enough sunshine. It scarcely seems that the plant can be healthy except as a warm,
dry Ju ly follow s. H ot weather w ill only add to the in ju ry; the plant is too soft to withstand high tem peratures. The
crop is late, from ten days to two weeks. The N orth w est would enjoy a full crop of wheat this season, as that re
sult would help restore m any conditions to a healthy basis. But it is by no means certain as yet that a full crop
w ill be realized; indeed the chances are against it. It is one of the first principles in wheat-raising that the weather
must be norm al; the N orthw est has had only abnorm al w eather since the spring opened.
H. V . J.
ARGENTINE’S WHEAT PROSPECTS.
Mr. Frank Henderson, general manager of the Buenos
Ayres Great Southern Railway, who was recently in L o n
don, has been interviewed (June 14) by the London F i
nancial Times, which says:
While very enthusiastic as regards the general outlook
for the Republic, Mr. Henderson was not slow to point
out the difficulties which had been brought into being by
the rapid progress which has been witnessed of late.
When he left Argentina a little over a month ago, Mr.
Henderson said, things could not have been better, and he
did not know of one part of the country that was not
doing well. Rain had fallen just at the right time for
plowing— a very important item where new ground was
being broken—and there were no labor disturbances. The
problem of the supply of labor, however, he considered
was one of the principal questions that would have to be
solved in the future. The matter had been forcibly dem
onstrated during the past wheat season. The wheat crop
had surprised everybody, even the farmers, by its enor
mous quantity and good quality, and had caused a gieat
demand for labor.
It was impossible, Mr. Henderson said, to get a full
supply of labor, although immigration had been on a larger
scale than ever before. W ages had, in consequence, risen,
and laborers were getting $2.50 a day where they used only
to get $1.20 or $1.30, while, during the actual harvest
farmers offered $5 to $6 a day, a price which no railway
could afford to pay. The Buenos Ayres Great Southern
Railw ay could very well do with S-000 t ° 6,000 men, but it
could only get a portion of that number. Other railways,
however, were in the same predicament. At one time the
railways had always been able to reckon upon what they
termed a “ slack” season, when they could square every
thing up; but now, owing to the development of the coun
try, there were no such times, the wheat crop, the maize
harvest, the sheep shearing and other seasons keeping up
the demand for labor in turn.
that there had been great delay in the carriage of goods
on the railway he considered were very much exag
gerated. Such delay as there had been, however, had not
been the fault of the railway but of the ports. The largest
proportion of the wheat crop in the district served by the
Buenos Ayres Great Southern Railway was sent to Bahia
Blanca. The accommodation at that port, however, ow
ing to the enormous crop, had proved inadequate. The
Great Southern Railway had certain accommodation at
the port, and the Bahia Blanca and North-Western Rail
way had a small mole, which the Great Southern used, but
the general facilities of the port for shipping were insuffi
cient. It would have been a w rong policy, Mr. Hender
son contended, to have sent grain forward when it could
not be cleared at the port.
‘ B . A . G. S .”
O b ta in s
D ock
P o s s e s s io n s .
Regarding the Buenos Ayres Great Southern Railway,
Mr. Henderson stated that up to the present there had
not been any great increase in the ratio of working ex
penses, the reason being that the railway was doing such
a big business. The statements made in Buenos Ayres
In order to meet the situation at Bahia Blanca next
year, Mr. Henderson said, the Buenos Ayres Great South
ern Railway Company was providing extra accommoda
tion in the shape of elevators and electric conveyors. He
was also able to state that the directors of the company
had just received notification from Argentina that the
company had been granted a concession to build some
docks at Bahia Blanca. Regarding extensions_ to the rail
way, Mr. Henderson said that the company did not want
more traffic until there were greater facilities at the ports,
but a lot of money was being spent to improve the ports.
The extensions, however, would open up new country and
benefit the company. On the question of the relations of
the railways with the Government, our informant stated
that the railways received very fair treatment at the
hands of the authorities. The Government had helped
the railways very much. The new Minister of Public
W orks was very energetic, and he was ably seconded by
the Director of Railways.
In summing up the general situation and outlook for
Argentina, Mr. Henderson said that he had never seen the
country in a more prosperous condition. The present sit
uation, moreover, was not like the previous Argentine
boom, and was not due to speculation, but was based on
solid grounds. He understood that there would be an
increase of 20 percent in the area under the cultivation of
wheat next year. Owing to the large crops the wealth of
the country had increased, and the inhabitants were en
jo ying luxuries which before they had not been able
to afford. The railways reaped some benefit from this,
in that the imports had risen and there was a greater quan
tity of goods to carry from the coast up country. He was
hopeful that the prosperity of the country would attract a
still larger number of immigrants and thus overcome the
labor difficulty, and he was also confident that the short
comings of the ports would be remedied before very long.
F L O U R A N D M IL L IN G .
W heat Advance Stim ulates In terest— F lo u r Demand
Show s Som e Im provem ent—General Situation
Unaltered—P rices Steady.
The upward trend of wheat prices, particularly the sharp
bulge on Thursday, which has had the_ effect of arousing
among flour buyers a renewed interest in the flour market
and a continued advance in wheat quotations, especially if
it be of a character such as to suggest a repetition of last
year’s experience, will probably be accompanied by a great
er or less revival in the demand for flour. Aside from this
development it is difficult Jo discover any essential partic
ular wherein the general situation in the local floui market
for the past week differs materially from that which
has existed during the weeks immediately preceding. In
many instances the mills report business better than a
week ago and the aggregate of trade was undoubtedlv
greater than at that time, being about sufficient to absorb
the present reduced output of the mills. The orders en
tered, however, were quite evidently of the “ absolutely
necessary” variety trimmed down by buyers to the lowest
possible limit and the increase in business, so far as its
significance concerning the future of the market, was of
minor importance.
The business, as a whole, retains its unsatisfactory and
unpromising characteristics.
Buyers continue to hold
aloof and refuse to become reconciled to the present levels
of prices or to put any faith in their permanence. Orders
have been entered only when reduced supplies have ren
dered farther delay impossible and the disinclination to
carry stocks of any size under present conditions has
been sufficiently pronounced for buyers to resell such por
tions of their purchases that are unnecessary for their own
B a h ia
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S h o rtc o m in g s .
THE
32
COMMERCIAL
WEST
Saturday, Ju ly
1905
I,
WHEAT ACREAGE ON THE INCREASE.
(S p ecia l C orresp on den ce to T he C om m ercia l W e st.)
Winnipeg, June 28.— The territorial government has
just issued a statement of the crop estimate for 1905, which
shows a very substantial increase in the acreage in wheat,
oats and barley. The report has been prepared with even
more than the usual care and the tabulating by districts
makes it doubly useful for purposes of reference. The
report in fu ll is as f o l l o w s :
D istrict—
Carnduff, A lalm ed a and South
M oose M ountain ..........................
R ouleau, Y e llo w G rass and W e y burn ..................................................
M oosom in , W h ite w o o d , W a p e lla
and B ro a d v ie w ............................
G renfell, W olseley, Indian H ea d
an d Q u’A p elle ..............................
R egina, L a st M ountain, M oose
J a w and P rin ce A lb e rt bran ch
to D undurn ..................................
Crane L ake, M aple C reek and
M edicine H a t ................................
-E stim atesA cres,
Oats.
A cres,
W heat.
254,732
63,362
A cres,
B arley.
4,500
Y ork ton and S altcoats ..................
P rin ce A lb ert ......................................
B a ttleford ............................................
W e st S aska tch ew an ........................
E d m on ton , S trath con a and W e task iw in ..........................................
R ed D eer, L a com b e and P on ok a .
Innisfall, Olds and D id d s b u r y .. . .
G algary ................................................
Southern A lb erta ..............................
56,251
91,988
2,240
600
62,589
54.7S5
4,933
2,500
3,795
7,100
300
100
32,378
900
500
1,247
14,711
118,963
22,698
19.205
31,562
16,771
44,178
6,233
10,189
4,880
2,730
E stim ated acreage, 1905 .......... 1.108,272
T ota l acreage, 1904 ....................
957,253
594,981
523,634
93,555
86,154
71,347
7,401
Fall w h ea t gain in 1905............
D istrict 13 ............................................
D istrict 14 *...........................................
D istrict 15 .............................................
D istrict 16 ............................................
150,979
58,270
37,998
2,200
143,145
44,930
4,000
230,754
54,530
1,300
219,856
57,530
1,300
700
2,500
50
Figures as to flax are not given in this report, but
Deputy Minister Honeyman states that the interest in
flax growin g shows a marked decrease.
immediate use. Of course each week brings stocks
throughout the country nearer to exhaustion and with a
practice of parceling out the supplies on hand in this
fashion the exhaustion when reached will be complete.
Despite the strength in wheat, flour quotations remain
unchanged for the reason that the wheat excitement has
been in September while the basing price of flour is Ju ly
or cash wheat. First patents are quotable at $ 6. i o @ 6 .2o ;
second patents at $5-90@ó; first clears at $4(0)4.10, and
second clears at $2.75(5)2.85.
September a half a cent and October first gaining an
eighth and then losing a quarter of a cent.
In none of the three markets was any particular activ
ity or interest displayed. Demand locally has been good
enough to readily absorb everything that has come in.
At Duluth the complete inactivity of the controling in
terest renders the market quiet of necessity.
Business in the products has proven less satisfactory
than a week ago. Demand for both oil and meal is less
pronounced and the business in cake is only fair.
E x p o rt
C lo s in g
S h ip m e n ts .
W e e k ending
June 24 ................................................................
June 17 ..............\ ..............................................
June 10 ..............................................................
June 3 ..................................................................
M ay 27 ..................................................................
M ay 20 ..................................................................
M ay 13 ..................................................................
M ay 6 ....................................................................
A p ril 29 ................................................................
A p ril 22 ................................................................
A p ril 15 ................................................................
A pril 8 ..................................................................
A pril 1 ..................................................................
M arch 18 ..............................................................
M arch 5 ...................................... .........................
F eb ru a ry 25 ............................................ ............
F eb ru a ry 18 ........................................................
F ebru ary 11 ...................................... .................
F ebru ary 4 ..........................................................
J a n u a ry 28 ..........................................................
Ja n u a ry 21 ..........................................................
Ja u u a ry 14 ..........................................................
Ja n u a ry 7 ............................................................
D ecem b e r 31 ......................................................
D ecem b er 24 ......................................................
D ecem b er 17 .......................................................
D ecem b e r 10 ......................................................
D ecem b er 3 .........................................................
N ov em b er 26 ......................................................
N ov em b er 19 .......................................................
N ov em b er 12 ......................................................
W e e k ending
June 24 ............
June 17 ..............
June 10 ............
June 3 .............. .
M ay 27 ..............
M hy 20 ................
M ay 13 ................
M ay 6 ................ .
A p ril 29 ............ .
A p ril 22 ............ .
A pril 15 ..............
A p ril 8 ..............
A p ril 1 ................
M arch 18 ............
M arch 4 ..............
F ebru ary 25
F eb ru a ry 18 ___
F ebru ary 11 ___
F ebru ary 4 ........
J a n u a ry 28 .......
Ja n u a ry 21 ___
J a n u a ry 14 .........
J a n u a ry 7 ..........
D ecem b er 31
D ecem b e r 24 ..
D ecem b er 17
D ecem b er 10 . . .
D ecem b e r 3
D ecem b e r 2 6 ....
N ov em b er 1 9 ....
N ov em b er 1 2 ....
Barrels.
12.075
17,635
17,925
21,285
4,695
28,330
31,245
23,950
13,306
32.075
22,300
26,850
21,480
28,270
23,550
38,770
51,995
47,655
75,505
61,425
52,645
54,735
53,629
37,085
53,170
41,885
19,640
33,100
57,205
47,643
29,345
Y ear ago.
28,640
16,985
27,105
29,505
42,125
44,300
23,560
23,465
26,345
18,525
21,685
26,165
27,185
28,305
53.415
39,050
34,850
39,485
17,827
57,710
35,355
92,820
47,490
22,100
35.745
65,040
57,135
99,445
115,625
90,270
77,970
M in n e a p o lis F lo u r O u tp u t.
............................................
............................................
............................................
............................................
............................................
...........................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
...........................................
............................................
............................................
............................................
............................................
.......................
.............................................
.............................................
.............................................
..............................................
B arrels.
175,830
209,125
190,825
225,500
215.170
178,250
361,840
169,410
154.475
182,200
196,050
256,650
275,570
270.995
255,165
292.670
244,780
281,365
285,070
285,060
278,640
308,705
291,725
188,150
261,740
264,250
279.370
270,945
333,150
313,228
270,316
Y ear ago.
287,050
245,110
236,690
190,655
240.615
246,680
217,775
103,530
180.630
127.115
99,810
187.885
260,565
313,935
336,705
313,995
325,590
347,375
165.630
319,295
325,830
305.285
328,635
165,255
177,185
341,460
388.015
410,130
454,150
364,025
417.615
FLAXSEED.
Market H olds Steady— Seed in Good Demand— Products
Slower— A ll Markets Quiet.
Flaxseed prices at Minneapolis show no variation for
the week, receipts continuing light and all grades of seed
being in good demand. The Chicago market also remained
stationary with quotations on the same levels as a week
ago and the price changes at Duluth were neither many
nor important, cash holding steady, Ju ly losing a, cent,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E stim a ted acreag e 1905 ............
T otal a crea g e 1904 ........................
M inneapolis cash . . .
Y ea r ago ..............
June .......................
T o a rrive .............
C hicago cash ............
S outhw est ............
D uluth cash .............
•i uly ........................
S eptem ber ............
O ctob er .................
F la x
P ric e s .
Fri. Sat.
June June
23.
24.
1.46% 1.46%
1.06% 1.07
1.46% 1 .46 %
1.44% 1.44%
1.43
1.43
1.25
1.25
1.48
1.4S
1.46
1.46
1.29% 1.29%
1.26% 1.26%
...
...
...
...
...
...
...
...
...
...
k.
M on.
June
26.
1.46%
1.06%
1.46%
1.44%
1.43
1.25
1.48
1.46
1.29%
1.26%
Tues.
June
27.
1.46%
1.07
1.46%
1.443%
1.43
1.25
1.48
1.45
1.29
1.26%
W ed.
June
28.
1.463%
1.07%
1.463%
1.443%
1.43
1.25
1.48
1.45
1.29
1.26%
Thur.
June
29.
1.463%
1.071%
1.463%
1.443%
1.43
1.25
1.4S
1.45
1.29
1.26%
W h e a t R e c e ip ts .
F ri., June
Sat., June
M on., June
T ues., June
W ed ., June
T hur., June
2 3 ...
2 4 ...
2 6 ...
2 7 ..
28..
29 ..
M inneapolis.
D uluth.
C hicago.
Cars. Y ea r ago. Cars. Y ear ago. Cars. Y ea r ago.
147
149
10
86
131
222
9
0
5
206
278
16
15
6
177
243
30
65
6
78
125
1
24
9
141
191
16
12
M in n e a p o lis
W e e k ly
R e c e ip ts
of
G r a in .
R eceip ts of grain at M inneapolis fo r the w eeks en d in g on the
d ates given, w ere:
W eek ending W e e k en d in g
June 24.
June 17.
Y ea r ago.
W h eat, bushels ..................
790,200
840,400
897,300
Corn, bushels ....................
32,400
56,120
23,250
Oats, bushels ....................
469,350
418,500
364,420
B arley, bushels ................
137,7i0
126,900
75,750
R ye, bushels ......................
6,720
4,500
13,490
F lax, bushels ....................
856,215
887,991
234,283
M in n e a p o lis
S tate
G fain
Inspection.
T he following- table sh ow s the daily grad in g of the receipts
ot w h eat at M inneapolis d uring the w eek en d in g W ed n esd a y :
No. No.
No.
1 N. 2 N. No. 3. No. 4. R ei. Grd. T ot.
T h u rsd ay .......... .................. 7
21
28
34
22
1
113
F rid a y ................ .................. 13
21
33
29
23
4
123
S aturday ............ .................. 11
2S
34
31
7
111
M ond ay ............. .................. 11
25
48
54
52
3
193
T u esd ay ............ .................. 12
21
25
33
11
102
W ed n esd a y . . . . .................. 9
10
15
12
10
2
58
T ota l
.............. .................. 63
•
126
183
193
125
10
700
S e p te m be r W h e a t.
Fri.
June
23.
M inneapolis . . . . ..................90%!
Y ea r ag o ..........................80%
C h icag o ............... ...................85%
Y ear ago .. . . ..................803%
Duluth ................. ..................90%
K an sas C ity .. . . ..................77
St. Louis ................................83
N ew Y ork .......... ..................89%
Sat.
June
24.
•89%
.82%
•84%
■813/s
.893%
.76%
.82
•89%
M on.
June
26.
.89%
.81%
.85%
•80%
.90
.76%
•S2%
•S9%
T ues.
June
27.
.913%
.81
.863/.
.80%
.91%
.77%
.83%
.90%
W ed. Thur.
June June
28.
29.
.923% .93%
.81%
.81%
.87% . 88%
.81% .813%
.92%
.93%
.78% •79%
.843% .85
.91% .923%
M
«
T h e A l b e r t D i c k i n s o n Co.
D EALER S
V
FLAX SEED
GRASS SEEDS,
GLOVERS,
BIRD SEED,
B U C K -W H E A T,E N S ILA G E C O R N ,PO P -C O R N
B E A N S , P E A S , G R A I N BAGS., E T C .
MINNEAPOLIS
OFFICE,
0 1 8 C H A M B E R OF CO M M E R C E
CHICAGO
Saturday, Ju ly
THE
i, 1905
COMMERCIAL
WEST
33
LONDON WHEAT REVEIW.
y~‘
*
A
A
4
r '
F. Lenders & Co. say concerning the wheat situation
under the date of June 15: An interesting feature of the
week has been the publication of the American Govern
ment Bureau Report giving the condition of winter wheat
on the 1st of June as 85.5 against 92.5 last May, and 77.7
in June of last year. Spring wheat is given as 93.7 against
93.4 last year. The decrease of 7 points in winter wheat is
about what was expected, and spring wheat seems to have
come out somewhat higher.
According to the statistician of the New Y o rk Produce
Exchange the entire crop is estimated on the Government
figures at over 700,000,000 bushels, although the commer
cial estimate is nearer 650,000,000. A s we have already
mentioned, one excellent authority still holds to its esti
mate of 600,000,000 bushels. Taking for the sake of argu
ment, the highest estimate, it should be remembered that
a crop of 700,000,000 bushels, although sounding very large,
is a yery different thing to a similar crop of ten or even
five years ago, when the enormous increase in population is
taken into account. There must be at least 10,000,000 more
mouths to feed than there were even five years ago. As
we have had occasion to mention in previous Reviews, all
estimates of supply and demand are being altered year by
year, and the bases of calculation which existed years ago
can no longer be relied upon.
The trade has been so long accustomed to look for
American guidance in the matter of fixing values, and has
followed so faithfully the lead set by that country, that it
is somewhat disconcerting now to find that the same
principles no longer hold good, and that different influ
ences are at work which upset the old theories entirely.
T o take one week’s shipments, showing for instance
100,000 quarters from North America, 350,000 quarters
from Argentina, and 700,000 quarters from Russia, will
show at a glance in what direction the preponderance of
influence in fixing prices in the international market now
lies.
The official report of the Indian crop indicates a de
ficiency of about 12,000,000 quarters compared with last
year, and this, coupled with the firmness of sellers, has
led to the improvement indicated above. Shipments have
been on a moderate scale, but are expected to gradually in
crease, although sellers show no inclination whatever to
increase sales at the expense of prices. The fleet of sailors
arrived off coast has been disposed of either by sale or
M in n e a p o lis
R e p re s e n ta tiv e
Sales .
D ulu th
T he fo llo w in g table sh ow s the highest, lo w e st and average
p rices paid fo r cash w h eat at M inneapolis during the w eek
ending T h u rsd ay :
No.
No.
No.
IN .
2 N. No. 3. No. 4. R ej. Grade.
F rid ay .............. .............. 3.13
1.09% 1.06
.97
.92
.70
1.11% 1.04% 1 .03
.95
.80
.70
1 . 1 1 % 1.08
1.02
.92
.62
.70
S aturday .......... .............. 1 . 1 2 % 1 . 1 0
1 .07
1.01
.92
.68
1.12
1.08% 1.03
.94
.78
.68
1.11% 1.05% 1 .03
.70
.68
.93
M ond ay .......... .............. 1.12% 1.09% 1.05%
.98
. 88
1 . 1 1 % 1.08% 1 .03
. S4
.93
1 . 1 1 % 1.08
1.00
.91
.72%
...
T u esd ay .......... .............. 1.12
1.09% 1.05
.98
.85
1 . 1 1 % 1.08% 1 .05
.75
.94
.91
1.11
1.06% 1 . 01
.66
W ed n e sd a y
.............. 1.12% 1,09
1.06% 1.00
.90
.80
.SO
1.11
1.08% 1.04
.95
1.11
1.08
1.03
.90
.70
.80
T h u rsd ay . . . . ............. 1 . 1 1 %I 1.09% 1 .05
.98
.90
.85
1.04
1.08
•95% .78
1 . 1 1 % 1.08
1.03
.93
.60
.67
C lo sin g
W h e a t F u tu re
J u ly W h e at.
C as h
W heat,
W heat
F'riday, June 23
Saturday, June 24 ....................................
M onday, June 26 ........................................
T u esd ay, June 27 ......................................
W edn esda y . June 28 ............................ , .
T hu rsd ay, June 29 ...................... .......... ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
C as h
.85
d u ru m ........................... 87
n o r th e r n ..............• 1 . 1 2 % 1 . 1 2
n o r th e r n ................ 1.04% 1.04
Kansas C ity
No. 2 hard ....................... 1.00
N ew No. 2 r e d .................... 98
M in n e a p o lis
W heat.
.85
.84
.84
.88
1 .1 1 % 1 .1 1 % 1 .1 1 % 1 . 1 1
1.03% 1.03% 1.03% 1.03
C as h W h e a t .
.97
.96
1.01
.94
.99
.93
.99
•93%
.99
•92%
T e r m i n a l S tocks.
W eek ending
June 24.
No. 1 hard ..........................................................
656
No. 1 northern ................................................. 4,021,139
No. 2 northern ..................................................................
No. 3 ......................................................................................
R ejected ................................................................................
Special bin ..........................................................................
N o g rade ...........................................................
Others ................................................................. 2,426,256
T otal .............................................................. 6,448,051
M inneapolis decrease ...................................
520,024
D uluth stock s ..................................................
867.388
D uluth d ecrease ..............................................
308,703
M IN N E A P O L IS
O fficia l
Close.
Y ear ago.
1,048
3,106,454
334,880
11,066
51,179
2,687,128
136,003
6,327,758
P rices.
July Close.
6s 1 Ô% cl
6s 10%d
6s 10%d
6s 10%d
6s 10%d
r <%
10%d
Sept. Close.
6s 8%d
6s 9 d
6s 9 d
6s 9 d
6s 9V2d
6s 10 %d
CO ARSE
G R A IN S .
Corn.
The market has been very firm with prices moving up
daily. Offerings have not been equal to the demand and
conditions have been in favor of the seller. Buyers have
not confined their attention to any particular grade, a
good demand existing for all grades. Prices gained about
I A cents during the week. No. 3 yellow corn selling up to
53 cents. Receipts were 48 cars and local stocks on June
24 were 32,472 bushels against 34,735 bushels on the pre
ceding Saturday.
C lo sing
Fri. Sat.
M on. Tues. W ed. Thur.
June June June June
June June
26.
28.
29.
23.
24.
27.
No. 1 hard ___ .............. 1.14
1.13% 1.13
1■13% 1.13% 1.12
No. 1 n orth ern . .............. 1 . 1 2
1 .1 1 % 1 . 1 1
1 . 1 1 % 1 .1 1 % 1. 10
N o. 2 n orth ern . .............. 1.09
1.08% 1.08% 1.08% 1.08% 1.07%
L ive rp o ol
No.
No.
No.
Prices.
Fri. Sat.
Mon. Tues. W ed . Thur.
June June June J u ne
June June
97
23.
24.
26.
28.
29.
M inneapolis . .. .............. 1.09
1.08% 1.08% 1.08% 1.08% 1.07%
Y ea r a g o .. . ....................93
,92%
.92% .93% .93%
.94%
.S93/4 ■90% .91% .92%
C h icag o ............ ....................91% .90
Y e a r ago . . . ....................85% .85%
.85%
■84% •85% . 85%
1 . 1 1 % 1 . 1 1 % 1 . 1 1 % 1 . 11
D uluth ............... .............. 1 . 1 2 % 1 . 1 2
K an sas C ity . . . ....................81% .79%
.79% •80% . 81 % . 82
St. L ou is .......... .................... 83% .823/s
•82% •82 % •84% .84%
N ew Y o rk ........ ....................958/4 -94%
•94% .95% .96% .97%
M in n e a p o lis
withdrawal, and the market has benefited through this
pressure being removed.
The market at the- moment has assumed a waiting at
titude. First hand offers from the principal exportingcountries are all very moderate, and from no direction can
the slightest pressure be detected. These remarks apply
equally to Russia and India, Australia and Argentina,
America for the moment not counting as a serious export
er. On the other hand, buyers are limiting their purchases
to little more than absolute requirements, and the conse
quence is that although prices remain quite steady, the
volume of business passing is limited. These remarks
of course apply more particularly to that portion of busi
ness which comes under the immediate purview of the ma
jo rity of grain traders, as it is a well-known fact that there
is a very extensive trade going on in other directions,
which is seldom made public, and only becomes known
when actual shipments are published, but which is no
doubt exercising a considerable influence on the markets.
We refer more particularly to the large consumption
which is now going on in the Mediterranean, as evidenced
by tne large shipments from Russia to Italy, Spain, and
in a lesser degree, Portugal.
Recent weather has been rather more favorable in the
Iberian Peninsula, but it is an undoubted fact that in
some of the southern districts the crop has been an entire
failure, and considerable imports will be absolutely neces
sary. This Mediterranean demand comes in timely fash
ion to help in absorbing the Russian surplus, which it is
safe to say, in its exceptional bulk, has astonished most
people and upset a good many calculations.
Buyers generally appear to have made up their minds
to wait and see how the leading crops turn out before
operating to any extent, and the policy no doubt is the
wisest under the circumstances. No matter whether crops
be abundant, moderate, or even small, there is generally
a rush of new wheat to market immediately it is fit for
delivery, and prices as a rule suffer accordingly. But this
year, what strikes even the most casual observer, is the
fact that reserves of old wheat have been reduced to un
usually small proportions, and that new wheat ought to be
able to come forward with a rush without prices suffering.
In America especially this is the case, as stocks have to
be replenished and mills restarted before much could be
spared for Europe.
We look for steady markets until the new wheat begins
to move, but for any material improvement in prices we
must look to serious damage to some of the leading grow
ers or to political excitement.
C orn
Prices.
D a ily closin g p rices o f No. 3 y ellow corn in M inneapolis^
Y ea r
ago.
F riday, June 23 .................................................
. 52%
46@7
S aturday, June 24 ........................................................• 52%
47
M onday, June 26 ........................................................... 51%
47
T uesday, June 27 .........................................................• 52%
47
W edn esda y, June 28 ..................................................... 52%
48
T hu rsday, June 29 ........................................
- 53%
48
O a ts .
The market has been active and firm with the price
trend steadily upward. , Receipts have averaged about the
same as a week ago, 292 cars coming in against 290 cars
for the previous week. Demand has held good for all.
THE
34
COMMERCIAL
grades and the offerings have been readily absorbed.
Prices gained fractionally during the week, No. 3 white
selling at present at 31 H @ 3 I H cents. No. 4 white at
3i J ^ @ 3i /4 cents and no grade and No. 3 at from 28J4 to
30A cents.
Local stocks increased during the week
ending June 24 about 36,000 bushels.
C lo sing
O a ts Prices.
D aily closin g p rices o f N o. 3 w h ite oa ts in M inneapolis:
Y ea r
ago.
40
F rid ay, June 23 .............................................................. 31%
40
S aturday, June 24 ..........................................................
31
39
M onday, June 26 ............................................................. 31%
39
T uesday, June 27 .............................................
31%
38%
W ed n esd a y , June 28 ...................................................... 31%
38%
T hu rsday, June 29 .......................................................... 31%
B a rle y.
The market has been devoid of particular feature. Quo
tations show little change, receipts are running about the
same as for some time past and conditions generally close
ly resemble those which prevailed a week ago. Demand
for all grades continues good and the offerings find ready
disposition among the buyers. The top price for malting
holds steady around 45 cents ranging to 40 cents for teed.
Receipts for the week were 147 cars against 140 cars a
week ago and local stocks on June 24 were 124,141 bushels
against 126, 674 bushels on the preceding Satuiday.
WEST
Saturday, Ju ly
I,
1905
spots on the lower leaves of many plants and these have
been mistaken for rust. Th ey are, in fact, the result of
what is known as “ shot-hole fungus.”
The growth of the plant everywhere is very strong
and the dead leaves at the bottom of the plant, which are
looked on with such suspicion, are really due in many
cases to an excess of moisture and in other instances are
only a physiological period in the growth of the plant, the
lower leaves having been deprived of sunlight and air.
Points in the Red River Valley are showing the effect
of too much rain, but on the high lands of Central Dakota
the fields look unusually well, and, taken as a whole, the
crop is in splendid growin g condition.
The agriculturists of the Minnesota station and also
Prof. B olley of the North Dakota station believe that the
cool, wet weather which we have had recently in such
abundance is the most favorable to the growth of rust, but
that if we should have warm, dry weather from now on we
are not likely to have rust damage.
A t the time of our last report there was very little
difference to be noted between the plants from light and
heavy seed. The plant from light seed has had remarkably
favorable weather and is still doing well. The only per
ceptible difference at this time is due to the fact that the
plant from heavy seed has stool'ed better.
All fields look thrifty, but the growth is estimated to
be ten days late.
R ye .
Receipts have been light and offerings limited. The
demand for heavy grain has been strong and for the lower
grades, although less active, quite sufficient to readily ab
sorb everything which has come on the market. Prices
have held steady around 76@7§ cents for No. 2 with the
No 3 ranging down to 7° cents. Receipts for the week
were 18 cars against seven cars a week ago. Stocks lo
cally decreased 2,000 bushels for the week ending June 24
being 17,900 bushels on that date against 26,600 bushela a
year ago.
C lo sin g
R ye Prices.
76% @ 77%
76% @ 77%
76% @ 77%
76% @ 77%
76% @ 76%
75% @ 76%
F rid ay, June 23 ----S aturday, June 24 ..
M onday, June 26
T uesday, June 27 ..
W edn esda y, June 28
T hu rsday, June 29 .
Coarse G r a in
in
M in n e a p o lis
W e e k ending
June 24.
..............
32,472
................ 1,430,813
..............
124,141
........
17,976
............
856,215
Corn
Oats
B arley
Rye .
F la x
IN C R E A S E D
W HEAT
Y ea r
ago.
61
62
60@61
60
60
60
E leva tors.
W e e k ending
June 17.
34,735
1,394,281
126,674
19,823
887,991
Y e a r ago.
51,132
440,741
498,217
26,622
234,283
ACREAGE.
Frank O. Fowler, secretary of the Grain Dealers as
sociation, has issued his regular report on the acreage
seeded to grains throughout Manitoba and the Territories
this spring. According to Mr. F o w le r’s figures the total
acreage sown to wheat is 4,019,000 acres, compared with
3,420,400 acres a year ago, an increase of 1 7p> percent.
Oats and barley also show large increases but the flax area
is no less than 25 percent less this year than last, a cir
cumstance which is explained as being due to the greater
difficulty in raising that grain, and the less return thereon
as compared with wheat and the other grains, i h e follow
ing table shows the total acres sown this spring compared
with last year, and the percentage of gain or loss:
W heat
Oats
B arley
F lax
.
1904.
3,42i0,400
1,206,000
392,600
1905.
4.019.000
1.423.000
433,800
46,500
34,900
Increase.
17% p.c.
18 p.c.
10% p.c.
D ecrease.
25 p.c.
“ The condition of the growing crop throughout both
Manitoba and the Territories is first-class and m some
localities never looked better, especially in the_ Northwest
Territories. Some slight damage was done in the Red
River valley by too much rain.”
W H E A T F IE L D S L O O K T H R IF T Y .
The Van Dusen-Harrington Company, Minneapolis,
say under date of June 22:
The widespread fear that rust would attack our wheat
fields this year and the general belief that the weather has
been unusually favorable to the spread of rust have en
couraged reports of rust from every part of Minnesota
and the two Dakotas and wheat plants showing dead and
discolored leaves are being submitted to us every day.
T o satisfy ourselves and our correspondents as to the
true condition, we have had an extended examination made
of the wheat fields through the district that suffered last
season. The investigation was made by an agriculturist
and scientist of note— a specialist in this particular branch,
and his report can be relied on as correct.
There is red rust (sometimes known as leaf rust) pres
ent in the fields of some districts and this red rust is plenti
fully found on the leaves of barberry and other bushes
which usually harbor it through the winter; but there is
no black rust, or stem rust, to be found. There are dark
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EXPORTERS
L IK E
SEPTEM BER
O P T IO N .
(S p ecia l C orresp on den ce to T he C om m ercia l W e s t.)
New York, June 27.— It would seem almost impossible
owing to the continued wet weather in the wheat growing
districts that America will raise wheat enough to depress
prices below the present basis of the distant futures, and
should unfavorable conditions continue we look for a
rapid advance in these options.
There is nothing doing for export at present, which is
not surprising, as with the Russian shipments this week
3,960,000, Argentine 2,760,000 and India 2,056,000 the arriv
als are fairly in excess of consumption, which results in a
moderate increase of stocks, and consequently the for
eigners are independent of the American markets for the
present; but they are anxiously watching the condition of
the growin g wheat in this country and Canada, and figure
they will in all probability require to look to these m ar
kets this coming year for much of their supplies. Most
of our New Y o r k exporters are very friendly to the Sep
tember and December options, and bought September lib-,
erally in this market today, as they feel that with the price
being paid for Ju ly wheat, there is not much danger in
owning the September.
A moderate business is being worked in corn for ex
port from N ew York, and five loads No. 2 white corn sold
to Portugal today, and one load No. 2 white corn to
Havre. A s N ew Y o r k has the reputation of maintaining
a high grade of inspection, the foreigners will generally
pay a premium for shipments from this port, which en
courages the receivers taking hold of corn at present ad
vanced prices, and 3c over Chicago new Ju ly was paid for
50,000 bushels Chicago No. 2 corn on the lakes today, be
sides the purchase of 40,000 bushels No. 3 yellow corn to
come here for export.
Flour.— There is an improved demand, but the market
is about cleaned up on Kansas flour, and any available lots
meet a ready sale at good prices. Some spring patents are
obtainable, but jobbers not willing to pay the price. B u y
ers are more inclined to trade in future shipments on K a n
sas straights at higher prices than recently, but the offers
from mills are limited.
—The Am es-Barnes Company.
The Deutsche Bank of Berlin is reported as establish
ing an industrial and exporting company in Sofia, Bulgaria,
for the promotion of trade between Bulgaria and Ger
many. The new company projects the building of two pe
troleum refineries.
Saturday, Ju ly
W illiam Common*
THE
i, 1905
Frank W . Common*
COMMERCIAL
WEST
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Howard W . Common*
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Minneapolis
and
Duluth.
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J. L. McCAULL, President
R. A. D1NSMORE, Vice-Pres.
Commission Merchants
GRAIN
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LIVE STOCK
Duluth
Sout h Sai nt Paul
COMPANY.
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A. M. DINSMORE, Treasurer
, The McCaull-Dinsmore Co.
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Company
GRAIN COMMISSION MERCHANTS
Chamber of Commerce
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M IN N E A P O L IS
OF
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M IN N E A P O L IS , M IN N .
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Minnesota, No. Dakota, So. Dakota and Iowa.
J. F . Whallon
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WHALLON, CASE & GO.
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OF C O M M E R C E
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C H IC A G O , M IL W A U K E E , D U L U T H
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Special Letter on Chicago Grain and
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THE
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C O M M ER C IA L
W EST
Saturday, Ju l y
I, 1905
COMMERCIAL WEST MARKET REVIEWS.
M ilm ine, B odm an & Co.. C hicago, June 28: T he w eath er
m ap con tin u es to be the d om in atin g influence in the w h eat
m arket and this m orn in g ’ s report w as o f the sam e n atu re as
fo r a w eek past, only p ossibly a little m ore so. R ain s continue
to be hea v y in certain section s o f the N orth w est, w hile later
p rivate d ispatches confirm the m orn in g ’s w ires, and add that
large section s o f w h eat lands in both N orth and S outh D a k ota
are under w ater, and the g rain flat. T his con d ition is likely
to
be
fo llow ed
by
fu rth er
sen sational
reports
to m o r
row . . T he
result
w as
a
stron g
w h eat
m arket, fo l
low in g up y e ste rd a y ’ s p rices, w ith a fu rth er ad v an ce today.
A rou n d the op en in g there w as a d isposition to realize, w ith
qu ite a b ig profit ta k in g b y the “ lo n g s,” bu t the m ark et held
up w ell and ad v an ced as qu ick as the sellin g stopped. July
sold dow n one tim e to 90%c, and Septem ber to 86c. It did not
last long, and the ad v an ce fou nd but little w h eat fo r sale.
T h ere w as a b ig trade m o st o f the m orning, and at tim es
a n erv ou s u n certain ty as regards prices. T his b u y in g on rains
is som etim es d isastrous, but it really looks as though the
situ ation in the N orth w est w ere b e co m in g quite critical. On
the oth er hand su ch ad v an ces as w e have had lately are
n ot a c c o rd in g to the usual course o f things in the m on th of
June. T he w o rst fea tu re o f the m ap ju st now is the w eath er
fo re ca st does not p rom ise an y relief fo r a t least 48 hours.
St. L ou is and K an sas City, w h o are su pposed to be influenced
m ore by w in ter w h eat p rosp ects than ourselves, w ere stron ger
than we, and reg istered a better ad vance.
T here w as v ery
little d oin g in red w h eat and prices are quite uncertain. No. 2
hard seem s to be w an ted aroun d $1.04. B ids do not bring in the
results that th ey should at these p rices if the fa rm ers w ere
confident o f a b ig yield o f w heat. W e a d vise cau tion at these
prices. A t the sam e tim e it does not look safe to sell w h eat
“ sh ort” v ery freely.
H.
P oeh ler C om pany, M inneapolis, June 28: N orth w estern
Crop con d ition s as fu lly and carefu lly reported in our letter
o f y esterd a y are not chan ged ex ce p t that p red iction s o f m ore
sh ow ers or rain adds to the great u n certa in ty as to the final
results o f the crop. T h ere w as a report o f black rust floating
toda y but this, as the one o f a w eek ago, w ill d ou btless p rove
prem ature.
Still a report in the near fu tu re w ou ld n ot be
su rp risin g to the people w ho have carefu lly observed w eath er
con d ition s sin ce the crop w as sow n.
C ondition s are serious
enou gh w ith ou t talk o f b la ck rust. T he tim e has already gone
b y w h en even fa ir results fro m the low lands can be e x
p ected even if w e a th e r should be p e rfe ct until h a rv est tim e. T he
ch an ces are that low land w h eat w ill be a p artial failure.
N orth w est crop situation is the d om in atin g fa cto r a t p res
ent, but an oth er fa cto r that is cau sin g stren gth is the fa ct that
there is a brisk m illin g dem and in the S outhw est fo r new w h eat
both on spot and to arrive, at p rices close to one dollar, a
price v ery fa r from the 80c p oint so freely p redicted' som e tim e
ago, an d around w h ich h ea v y sh ort lines w ere put on the m a r
ket, esp ecia lly in C hicago. T he situ ation at no tim e ju stified the
p u ttin g ou t o f h ea v y sh ort lines o f w h eat.
C on d ition s fo r
several w eek s have been g ro w in g bullish, but the sh orts g e n
erally instead o f c o v e rin g have rem ained stubborn and so fa r
v e r y fe w o f them have been fo rce d to cover. B y d iscred itin g
the N orth w estern reports, as w ell as the ones fro m the S ou th
w est, and ov e rlo o k in g several other im porta n t fea tu res they
have d ece iv e d them selves, and like the o strich th ey m ust pay
the penalty. T h a t they will y et have to run and c o v e r and
th ereby cause a b ig ad v an ce an y tim e in the fu tu re there is
no doubt.
T he ad v an ce today w a s quite sharp and should
w eath er p red iction s o f toda y fail to fu lly m aterialize, a fa ir
reaction m igh t follow . On an y such rea ction w e w ou ld stron gly
advise buying.
o f the w in ter w h eat belt, also p lay a secon d a ry part in crea tin g
bullish sentim ent, but the k ey to the situation w ill be the
w eath er and crop d evelop m en ts in the N orth w est d u rin g the
com in g m onth. T he first car of new crop w in ter w h eat arrived
here today, graded No. 3, on a ccou n t o f bein g dam p and tough,
and sold at $1.00 per bushel, f. o. b. A g ood run of n ew w h eat
is ex p ected here, w ea th er perm itting, from this state and
M issouri in the im m ed iate future, bu t the qu ality o f the w h eat
is so fine that w e ex p ect the dem and to be ab rea st o f the
supply, and that m illers will be n ot only w illin g but eager to
stock up w ith w h eat o f such fine quality.
John H. W ren n & Co., C hicago, June 28: W h e a t w a s stron g
fo r the greater p art o f the session. T here w a s a m oderate
setb a ck early in the day on liberal profit taking. T he decline
w a s taken ad v an tag e of, h ow ever, by stron g p eople to buy, and
un der stead y purchases, prin cip ally fo r the N orth w estern a c
count, the m arket ad v an ced sharply. A lth ou g h the w eath er
p rom ises to clear up in that section it is eviden t, that there
has been con sid erable dam age done. T he w eath er con d ition s in
the S outhw est w ere b etter fo r h a rv estin g and m ov in g the new
crop. .R eceipts in new w h eat are reported at K a n sa s C ity
and St. L ou is and Clricago g ot one car today. T h is m ovem en t
is m uch earlier than last y e a r ’s. T he w eath er is g o in g to be
the p aram ou n t fa cto r fo r the. present.
Should it turn off
fa vora b le and the m ovem en t increase it w ill be on ly rea son
ab le to ex p ect som e ch eck on the bullish enthusiasm , w h ich
is b ecom in g alm ost as general as it w as bearish until the
last fe w days. There has been a lot o f sh ort w h ea t cov ered
in this m arket, and m any local op era tors w h o w ere on the
bear side are n ow w ell loaded w ith w h eat. W e do n ot chan ge
our opinion, how ever, that w h eat is g oin g to sell higner, but
we do ex p ect g ood reaction s from all bulges. T o d a y ’ s prim ary
m ovem en t w as under last y e a r ’ s. C learances con tin u e light.
J. R osen b au m G rain C om pany, C hicago, June 28: T h e w h eat
m arket has been ex trem ely nervous all day, p rices w ere low er
early on sligh tly im proved w eath er con d ition s in the N o r th
w est, bu t sold up sh arply later in the session on claim s of
b la ck rust. M inneapolis parties claim ed to h a v e receiv ed sa m
ples of in fected w h ea t and this started a general scram ble
a m on g shorts.
N ew s from the w in ter w h eat c ou n try w as
m ainly bearish. L iberal qu an tities o f new w h eat w ere received
at St. L ou is and K an sas City. C h icago also had it ’s first ca r
o f new w h eat, w h ich graded 3 red and sold at one dollar. It
is ex p ected a liberal m ovem en t will start n ex t w eek fro m
M issouri, Illinois and Indiana. It is hard to giv e an opinion
of the m a tk et becau se of the u n certa in ty reg ardin g the w e a th
er. I f rains continue in the N orth w est, and rust developes to
a consid erable exten t, the m arket w ill un dou btedly sell higher.
On the oth er hand, should present fea rs p rove groundless, the
rush o f n ew w h eat w ill p rob ably cause a decline, esp ecially
fo r the July option.
E d w a rd G. H eem an , C hicago, June 24.— F rom a lm ost every
section w here threshin g has been done the yield o f w in ter w h eat
is p rov in g a disappoin tm ent. T he final result is likely to show
a crop n ot m u ch ov er 350,000,000 bushels in stead o f ov er 450,000,000 bushels, w h ich w as so freely p red icted som e m onths ago.
W ith the best o f con d ition s m aintained, there ca n n ot be g row n
m ore than 300,000,000 bushels of sp rin g w h eat. W ith a total
crop o f n ot ov er 650,000,000 bushels and n o reserves o f old w h eat
an d m u ch sm aller crop s in d icated abroad, the situation is again
fa v o ra b le fo r $1.00 w heat. T he p ossibilities are all on the bull
side and the d an ger on the short side. A n y a d verse happenin gs
to th e g row in g sp rin g w h eat— w h ich is ju st en terin g its m ost
critica l p eriod — w ill start an oth er sen sational advance.
I believe the a d v an ce in corn has culm inated and a fe w w eeks
o f w a rm w eath er will cau se a w on derfu l ch an g e in sen tim ent
and the d eclin e is likely to be as rapid as w as the ad vance,
though perhaps n ot as m uch. In the ev en t o f a m aterial d ecline
in corn it is quite likely oats will also sell som e low er.
E. W . W a g n er, C hicago, June 28: T he total available supply
o f w h ea t in the U nited S tates is 11,689,000 bu shels; this is less
than last year.
Y ou k n ow w h at it did last year w ith big g er reserves;, it
m arch ed stead ily u p w ard ; that w as cash w heat.
* * *
W h a t did July d o ? Started to overtak e the cash w h eat on
Irw in, Green & Co., C hicago, June 27: T h e w h ea t m arket
Ju ly 5th, and w en t up n ea rly 20 cen ts a bushel.
still is a “ m ixed p rop osition ” as regards the p rice, and that
T he w in ter w h eat crop is earlier this year and so is the
m ostly becau se o f radical d ifferen ces o f opinion as to the m a g
ad vance. T he recission s are only tem porary.
nitude o f the crop. T he latest g ov ern m en t figures w ere un d er
A w eek fro m now , w hen w e are in July, there w ill be no
stood to fa v o r the b elief that th e total yield will be at least
tim e fo r reaction s and setb a ck s in prices.
700,000,000 bushels, and a g ood m an y p eople hold to this view ,
B u y n ow w hile they o ccu r; they are o cca sion ed b y those
though the w eath er of this m onth thus fa r has been v e r y irreg u
w h o w ill n ot ca rry Ju ly co n tra cts to m atu rity.
lar, and a w ell k n ow n p riv ate statistician stou tly m aintains that
W h ile they are selling
July out and g o in g over
in to S epsuch figures are a g rea t ex ag g era tion o f the truth. T he latest issue
tem ber is y ou r last chan ce.
D o not m iss it, but buy.
o f “ T he C om m ercial W e s t” insists that its com p leted inspection
K eep the sh orts hu stlin g to fill July co n tra cts; their bu y in g is
of the S outhw est w arran ts the claim that the entire w in ter crop
ju s t as good n ow as that o f the m illers.
will n ot ex ceed 370,000,000 “ w ith a ch an ce that it m ay run
T h e S an ta F e railroad gav e you a ch an ce on their report of
as low as 340,000,000, d epen din g upon our findings in the Ohio
90,000,000 bushels fo r K an sas. D o n ’ t y o u believe it. B uy on it.
V alley states and in M ich igan the com in g w e e k .” T he sprin g
It w ill require an aw fu l b ig rebate to m ake those even w h o
w h eat area has been visited b y h ea v y rains, w h ich have m uch
take stock in that sto ry ; S anta F'e stopped p ay in g rebates.
redu ced the early prom ise, but it still is insisted on b y m any
K an sas and O klahom a to ge th e r w o n ’ t have it; it m eans
that there is little if an y m ore rust on the plants in that section
au tom obile w heat, and that d on ’ t go on con tra cts.
than the av erag e fo r this date in oth er years, and it is too
It is this real w h eat that is w an ted in Ju ly; bu y that k in d ;
early y et to tell definitely w h at the situ ation there is as a
there isn ’ t likely to be enou gh to go round.
whole.
T here n ever is enough o f a fo o d th in g ; th a t’s w h y it ’ s
Y es; w e are ab ove an ex p ort basis, and the fa ct sh ow s up
w a n ted ; th a t’ s w h y it w as w an ted last year, too.
clearly in the rep ort that last w eek the U nited S tates and
T he con d ition s are so m u ch like last year that I am g o in g
C anada only fu rn ish ed 584,000 bushels, w hile R u ssia contributed
to qu ote a fe w w ords fro m m y 1904 m a rk et circulars.
nearly 4,000,000, to the total of 10,712,000 of w orld shipm ents.
V ery fe w believed them th en ; v ery fe w believe them n ow ;
B ut this p roves n oth in g fo r the fu tu re. In form er y ea rs the
th a t’s the reason they are p rop h etic and correct.
foreig n ers have been glad to take from us large qu antities of
R ead : “ June 25, 1904. T he m an w ith w h eat, the farm er,
w h eat at con sid erably higher p rices than those n ew asked for
g ets a dollar a bushel fo r w h at he d isposes o f and the sp e cu la
d elivery in S eptem ber an d later m onths, and th ey m ay have to
tors have been try in g to m ake m on ey selling it aroun d 80 cents
and then fo r c e the fa rm e r to let go. T he sp ecu lators are about
w orn out a t this gam e and, if you are g o in g to g e t an y th in g
m ore out o f them , you m ust do it now . B u y som e from them
as q u ick ly as you can. T h e y can n ot hold out. T h ey are w o r k
in g on a ba sis that w ou ld break the B ank o f E n g lan d .’-’
A g a in : “ July 6, 1904. W h a t do you w an t o f ex p ort d em a n d ?
W h y stop a m om en t to con sid er the in d ifferen ce o f fo r e ig n e rs?
DULUTH, M IN N .
K eep lon g on w h e a t.”
A s a m atter o f fa ct w e have no m ore need o f ex p ort this
than la st y e a r; w e m ay again use our tariff fo r p ro te ctio n o f
farm ers.
I believe you w ill be in g reat luck a fte r July first next, if you
have Ju ly co n tra cts to m atu re on y ou r hands. B u y that kind.
A M H S-B R O O K S
C O .
TMM a M E S - B A R N E S C O .
*
*
*
H ulburd, W a rre n & Chandler, C hicago, June 28: T he w h eat
m arket is som ew h a t erra tic and irregular, but, on the w hole,
strong, and seem s to be m u ch m ore sen sitive to ad v a n ce s than
declines. From, a p urely sp eculative point o f v ie w the prin cipal
m otive is the con tin u ed u n fav orab le w eath er in the N o rth
w est, fo r the d evelop m en t o f the sp rin g w h eat cro p ,— too w et
an d too cool, and there w as a rev iv a l toda y o f reports o f b la ck
rust ap p earing in the w h eat plant. T h ose w ere fo llo w e d up
b y h ea v y bu y in g orders fro m M inneapolis, and p rice s shot
up qu ick ly ab ou t l % c from the low p oint tou ch ed on the
m orn in g reaction . T he ad van ce w a s nearly all m ain tain ed to
the close. R ep orts o f d isap poin tin g yields, from som e p ortion s
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THE Z E N I T H G R A I N C O .
W IN N IP E G , M A N .
S H IP P E R S
MERCHANTS.
AND
GENERAL
C O M M IS S IO N
Saturday, Ju ly
i,
THE
1905
C O M M ER C IA L
do so again.
R u ssian holders ap p ear to have m arketed w ell
d ow n tow ard s the p oin t o f ex haustion, their reserves from
p rev iou s crops, as w ell as that o f last year, and the prom ise
fo r the co m in g crop certa in ly is fa r fro m bein g equal to that
o f 1904.
F ren ch holders, too, are said to h a v e parted w ith
their reserves, and n o w there is talk o f th at co u n try bein g
ab ou t to im port som e 2 , 000,000 bushels per w eek fo r m onths to
com e. India, too, has a m uch sm aller crop, and it is estim ated
that the total o f w h eat in first an d secon d hands in E u rop e n ow
is at least 100,000,000 bushels less than it w as a year ago. So,
the w orld is g o in g to be depen den t upon the new crop o f w heat,
and on our n ew crop at that, to a con sid erably larg er ex ten t than
it w as on th e la te st one. H en ce, there is no need to be bearish
on the crop, as a w h ole, and esp ecia lly n ot if it should turn out
that w e d o not realize from the h a rvest o f this y ear v e r y m u ch
m ore than w e did fro m that o f 1904. T h at is a p o in t w hich,
up to date, is v e r y fa r fro m bein g a certain ty , and even if the
yield should p ro v e to be a good one the w orld will w an t the
w h ole o f our surplus at m u ch high er p rices than the av erag e for
recen t years.
*
*
*
W . P. A n d erson & Co., C hicago, June 24.— T he low p rices
w ere m ad e early in th e w eek, w hen there w a s g en erally clear
w eath er in the S ou th w est fo r h a rv e st and on the op eration s
o f b ig traders ju s t retu rn ed fro m a tour o f the w in te r w h eat
states, w ho estim a ted the yield at 100 ,000,000 bushels in ex cess
o f that o f last y e a r and soldi heavily, but the m ark et m et g ood
su pp ort on the decline. L a ter in the w eek h ea v y rains in the
S outhw est, w h ich delayed h a rv est op era tion s and caused d ea l
ers to w ith d ra w offerin gs o f n e w w h eat fo r sh ipm ent the first
h a lf o f July, crea ted an u n easy fe e lin g a m on g Ju ly sh orts, and
W E ST
37
continued rains in the N orth w est, w h ere the plant needs dry,
w arm w ea th er to ex ped ite grow th , w as an oth er bullish influence.
L iberal p ro fit-ta k in g sales an d a cessation o f the rain s in K a n
sas forced som e reaction .
T he im m ed iate fu tu re of the m ark et is d epen den t largely
on w eath er con d ition s. T here w as no sign o f rain this m orn in g
in the w in ter w h eat belt an d w ith a fe w d ays o f sunshine to
p erm it threshing, new w h eat m ay be- com in g to m ark et fa st
enough to a ffe ct sen tim ent. T here has been n o serious d am ag e
in th e N orth w est as yet. M arket appears sh apin g fo r som e
break, upon w h ich buy S eptem ber w heat.
*
*
*
S idney C. L ov e & Co., C hicago, June 23.— T he p eriod o f a d
ju stm en t betw een n ew an d old crop v alu es n o w in p rog ress is
n ot con d u civ e o f a clear u n derstan din g o f the u ltim a te ou tcom e
o f prices. T h e w id e d iv ersity o f opinion am-ong th e crop e x
perts, reg ardin g the g r ow in g crop, togeth er w ith the rather
c om p lica ted cash situation, a relic of the last c ro p ’s e c ce n tr ic i
ties, fo rm a com b in ation o f con sid erable u n certa in ty and ten d to
obscu re a log ica l op in ion a t this tim e.
T he necessities o f the m illers and their ab ility to ab sorb the
n ew w h eat m ovem ent, thus p rev en tin g accu m u lation o f supplies
a t p rim ary points, in addition to the v a g a ries o f th e w eather,
so im porta n t an influence at this tim e, are the p rim e fa cto r s
in the im m ed iate fu tu re. B oth are ev id en tly an u n know n qu an
tity.
T he w h eat tra der will find his p osition m ore secu re b y a ctin g
cautionsly, reg u latin g his natu ral in clin a tion to the present c o n
ditions, and ad op tin g a sca lp er’ s attitu d e until the situation
w arran ts a d ecid ed stand.
WESTERN KANSAS AFTER NEW CROP RECORDS.
The State of Kansas is going after another agricultural
record. Not content with at least three record crops, she
bids fair to eclipse past performances and send to market
in 1905 between 95,000,000 and 100,000,000 bushels of
wheat. This prospect, together with achievements in re
cent years, has caused thousands of eastern farmers to turn
with longing eyes toward the former domain of the grass
hopper. One of the most remarkable facts of the wonder
ful industrial story that is being woven about the country
beyond the turbid waters of the Missouri is the regenera
tion of western and more especially of southwestern K a n
sas. Less than a short decade ago this portion of this
great state seemed doomed to stagnation. Today there is
no part of the western country which is being sought
more eagerly than are the fertile uplands and the beautiful
valleys of this hitherto despised region.
The
W ork
of th e
R ailroads.
Th e great railroads which are threading Kansas with
over 9,000 miles of rails were the first to see that in west
ern Kansas there were possibilities for millions of people
where thousands now reside. Their land and immigration
agents, being the first to feel the insistent demand for
cheap lands, discovered this hitherto part and parcel of the
great American desert, and they saw that it could be made
to blossom as a fertile garden. Fo r a number of years,
however, it was uphill work.
Finally by the medium of cheap rates they succeeded
in inducing a few to stop off on their w ay to what they
deemed more promising territories and take a peep at
this promised land of the West. N ow their efforts have
been crowned with success and a constantly increasing
arm y from the E ast is invading the short grass country,
driving the ranchmen from vast sections and cutting the
fertile prairie soil into small and productive farms. P ro s
perity is written all over the face of a long-forsaken ter
ritory, and the newspapers are actually telling of its won
derful productiveness and of its great future.
The
F a cto rs
in t h e
Change.
There are several factors which have been at work
bringing about this remarkable change in western Kansas.
First and foremost, perhaps, is the gradually extending
knowledge that the “ certain season” territory is constant
ly moving further and further westward. Only a halfcentury ago people in the now effete E ast were afraid to
migrate to Illinois for fear of droughts and crop failures.
A few years ago the “ certain season” territory did not e x
tend west of Kansas City. Then it moved on to Wichita,
and now it is extending still onward toward the Pacific
slope, and it has almost if not quite embraced the western
end of Kansas. A second factor is the demand for cheap
lands which is becoming rapidly more difficult to satisfy.
When one stops to think that it is taking an average of
10,000,000 acres of land to supply the annual demand,
whereas it took but 8,000,000 a few years ago, he begins
to realize the industrial progress that is being made in the
great West.
A third factor may be stated to be the enterprise and
resourcefulness of the railroads whose lines have, in the
United States alone, preceded industrial progress by al
most a quarter of a century.
The last, and perhaps the most potent factor, is the ad
vance that has been made in scientific farming. Eugene
Davenport, director of the Illinois experimental station at
Urbana, has declared that “ the last half of the last cen
tury witnessed more real progress in agriculture than all
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Federal Reserve Bank of St. Louis
the generations that have passed since Adam tilled the
garden or since our primitive ancestor gnawed his bone in
the shelter of the cave. The findings of chemical, physical
and biological sciences have been applied to the business
of farming until it rests upon a firm basis of known fact.”
•
W hy
th e
Lands
are
Cheap.
It is the very acme of agricultural paradox that in a
state in the heart of the Missouri river district, available
to the markets of the entire country by unparalleled trans
portation facilities, it should be possible to secure as rich
lands as lie out of doors at a price which enables the farm
er to more than pay for it from the net proceeds of the
first crop. Such, in fact, is human nature that when the
lands of western Kansas rise to thrice their present value
they will find the more ready sale. Fo r then the distrustful
farmer, scarcely daring to believe what his eyes have seen,
will not ask, “ W h at’s the matter with them, that they are
so cheap?”
This question, however, is readily answered by the
railroad immigration agent. He will tell you that for
years the hot winds swept over western Kansas, destroy
ing what the grasshoppers might have left, and that
drought followed drought until hope had fled. Then the
inhabitants fled from Kansas as from a plague spot and left
the cattlemen in undisputed possession.
In the years that followed came the breaking up of
Oklahoma and even T e x as on the south, of Nebraska on
the north, of Colorado on the west and of eastern Kansas
on the east. Completely surrounding the western portion
of the state, the soil, which had hardened for centuries,
and had thus prevented the moisture from going in or
from coming out, became broken and amenable to the har
row, the roller and the disk.
A sk the scientist what this means to a semi-arid country, and he will reply that it means a change in seasons.
The rain began to descend upon western Kansas with more
regularity until for ten years they had an average rainfall
of about nineteen inches. Farm ers who had been starving
while trying to raise eastern crops and to farm it as they
had in the arable regions began to hear of beardless barley,
of durum wheat, of the Campbell system, which preserves
the moistures for the growing crop, of millet and of kaffir
corn and of turkey red wheat.
In the meantime, while all of this wonderful change
was going on, Kansas was steadily creeping up in the list
of agricultural producing states. A s early as 1892 Kansas
made a record by producing 74,538,906 bushels of wheat,
the greatest yield ever credited to any state. In 1901 an
other record was set by a production of over 90,000,000
bushels, an average yield per acre 82 per cent greater than
the average for the country during the preceding decade
and more than 15 per cent greater crop than any ever
produced by any state in the Union. The Kansas wheat
crop of 1900 was more than 2,500,000 bushels in excess of
the combined crop of the next two ranking states— Min
nesota and California. Again in 1903 Kansas beat her own
record and that of every other state by a wheat crop of
over 94,000,000, valued at over $52,000,000. With the repu
tation of not being a corn-producing state, Kansas pro
duced 1 1 per cent of the country’s corn yield in 1899 and
8 per cent of all the wheat. In 1900 she produced 8 per
cent of all the corn and 16 per cent of all the wheat, while
in 1901 her wheat was worth the sum of $50,500,000, and in
1904 over $51,000,000. A still more forceful comparison
can be made if we take the combined values of the wheat
and corn production of the leading states for the five-year
period ending with 1900. In doing this we find that the
Kansas valuation aggregates over $378,000,000, that of Illi
nois over $361,000,000, that of Io wa over $330,000,000, that
of Nebraska over $301,000,000 and Missouri over $275,000,000.— S. Glen Andrus, in the Chicago Record-Herald.
THE
38
G O L D P R O D U C T IO N
AN D
CO M M ER CIAL
PRICES.
(Continued from Page 21.)
low ed a slight a d v an ce o f the rate until 1873, w hen the a v e r
a g e rate w as 4.5 percent.
H ere set in a gradu al declin e of
p rices due to a re la tiv e decrease in the supply o f gold, the
su pp ly n ot in cre a sin g so rap idly as the dem and. It w as a c
com p an ied in L on d on b y a con sta n t ten d en cy o f the rate o f
in terest to fall, alth ou gh there w ere occa sion a l ad v an ces caused
b y the expansion o f credit. T he av erag e m arket rate in L on d on
in 1894 w as 1 percent, and in 1885 .8 o f 1 p ercen t p e r annum.. A f
ter 1895 the e ffe ct o f the n ew gold fro m S outh A fr ic a began to be
fe lt in E nglan d an d the in terest rate again began an upw ard
jou rn ey . P rice s o f co m m o d itie s in E n glan d betw een 1896 and
1902 rose som eth in g like 25 percent, and the rate o f interest
rose fro m e ig h t-te n th s o f 1 p ercen t in 1896 to 4 p ercen t in 1903.
B y co n je ctu re w ith regard to the fu tu re course o f p rices
an d the in terest rate m ust take into acco u n t the fa c t that
during the last seven y ears great com m ercia l na tion s have
been con tin u ou sly a t w ar, and that in con seq u en ce a norm al
expansion o f cred it has been im possible. S ince 1895 the gold
holdings
of
the g re a t
banks
of
the
w orld,
in clu d
in g the na tion al banks
of
the U nited States, have in
crea sed b y o v e r one billion dollars, but m uch o f this new gold,
instead o f bein g g iven em ploym en t in the w orld o f trade and
industry, has been hoarded in banks to p rov id e fo r the e x tr a
ordin ary con tin g en cies o f w ar, both actu al and possible. N ot
until the w o rld ’ s p eace is co m p a ra tiv e ly assured, w ill cred it
take w in g and b rin g all the new gold into p oten tial c o n ta c t w ith
g oods and securities. C on cern in g the p recise e ffe ct upon prices
and the rate o f interest, w e can only speculate, but that p rices
m ust tend up w ard an d the m o n e y m ark et be su b je ct to v iolen t
d istu rbances, w e can be reason ably certain.
C o n d itio n s
in
G o ld
P ro d u c tio n .
W e n ow co m e to the third part o f m y su bject. W ill the
gold supply o f the w orld con tin u e to increase at the p resent
u n preced en ted ra te ? Is the p rod u ction to be $400,000,000 this
year, $450,000,000 n ex t year, and o n e -h a lf a billion in 1907? If
su ch a deluge o f gold a w a its us it is im possible to escap e the
con clu sion that th e p u rch a sin g p o w e r o f gold m ust su ffer
a g re a t d eclin e and the civilized w orld p ass through an era
o f w ild speculation in the sto ck s o f corp ora tion s and in the
p rices o f com m od ities. F ortu n a tely there are som e g o od re a
sons fo r h op in g th at n o such fu tu re is in store fo r us. Gold
m in in g is an in d u stry in all essen tial resp ects like oth er in d u s
tries.
Its outp ut tends to increase w h en the v a lu e o f the
p rod u ct is rising, and to declin e w h en th e value o f the p rod u ct
is falling.
T h a t th e p rod u ction o f an y ordin ary co m m od ity
tends to d ecrease w hen its value is falling, is a tru th w ell
u n derstood b y all business m en, bu t its a p p licab ility in the
ca se o f gold is n ot clearly seen. A s w e h a v e seen th e value
o f g old seem s stable, so that it does n ot o ccu r to the a v e r
age m an th at the profits o f gold m in in g are a ffected in an y
w a y b y chan ges in the value o f gold. H e sees clearly enou gh
that the p rofits o f iron m in in g depend upon the p rices o f iron,
or of copp er m in in g upon tue p rice o f cop p er; bu t the profits
o f gold m in in g seem to him to d epen d upon the q u a n tity of
g old m ined an d to v a r y as that qu an tity varies. T h e ow n er
o f a cop p er m ine has his eye upon the p rice o f copper, the
fa rm ers o f Iow a, N e brask a and M in n esota are in terested in the
p rice o f w heat, it is upon these p rice s th at th eir p rofits depend,
bu t the gold m in er studies n o m arket report. H e w ill find
the price o f g old published in no paper. Is he not, th erefore,
en ga ged in a m ost unique industry, in one the profits o f w h ich
are ind ep end ent o f m arket flu ctu a tion s?
T he relation o f the gold m in er’ s p rofit to general p rices can
be m ade clear b y illustration. L e t us su ppose _ th at a m an
ow n s a gold m ine in C olorado fro m w h ich he is g e ttin g an
W EST
FO URTH OF JU L Y RATES.
F o r the Fourth of Ju ly the Minneapolis & St. Louis
R. R. will sell round trip excursion tickets to all points
on its line at an open rate of one fare plus 50 cents; tickets
on sale Ju l y 1, 2, 3 and 4, with return limit Ju ly 5, 1905.
Call on agents for particulars.
H ot Springs, Ark.
The best known health and pleasure resort on the
continent. Elegant through service and low excursion
rates via Iron Mountain Route, the shortest and quickest
line to above point. Four Daily Trains from St. Louis.
Descriptive and illustrated pamphlets on application to
Ellis Farnsworth, D. P. A.,
„
h i Adams St.,
Chicago, 111.
M inneapolis.
We Are
HEADQUARTERS
for
Then you want to get in touch with us—
for we can tell you all about the Best Mill
on the market—
The Northway Feed Mill.
Write us for full particulars.
Order your MILL AND ELEVATOR
SUPPLIES of US—our line is complete
and our prices are right.
Northwestern Agents for Invincible
Cleaners and Richmond Dust Collectors.
STRONG & NORTHWAY MFG.GO.
M IN N EA P O L IS, MINN.
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Federal Reserve Bank of St. Louis
J
I, 1905
ou n ce o f p ure g old a day. T h is gold, if w e m ake a slight d e
d u ction fo r the expen se o f shipm ent, purification , etc., m ay he
su pposed to yield him, $20. H o w is he con cern ed ab ou t the
p rices? L et us su ppose that w hen he opened his m in e the
p rices o f food , p ow der, tools, etc., w ere su ch that his expenses
w ere $10 a day.
H is daily profit, therefore, w a s $10. Sup
p ose that d u rin g the cou rse o f three y ears p rices rise fifty per
cent.
H is d aily ex pen ses are n ow $15 and his profits have
been redu ced on e-h a lf. I f p rices an on rising, his profits will
go on d ecreasin g until a tim e w ill com e w h en he w ill abandon
the gold m ine as no lon g er profitable, even though in a n y one
d ay he is a b le to g et as m uch gold fro m it a s before. A fall
o f general p rices w ou ld p rod u ce the op posite effect upon the
m in er’ s p rofits; h e w ou ld find his expen ses g row in g less and,
therefore, his p rofits increasin g. A rise o f p rices w ou ld lessen
the am ou n t o f g old w h ich he could la y b y and also lessen
its value to him , fo r its p u rch asin g p ow er w ou ld be redu ced ;
a fa ll of p rices w ou ld give him double sa tisfa ction , it w ould
enable him to increase the daily in crem en t to his store o f gold
and w ou ld also add to its p u rch asin g pow er.
Since all gold m iners m ust be a ffected the sam e w a y as
our sin gle m iner b y chan ges in the level o f prices, it is clear
that a rise o f p rices m u st lessen the p rofits o f g old m ining,
and that a fa ll of p rices m ust in crease his profit. T he industry
o f gold m ining, like all industries, is carried on un der diverse
con d ition s; som e m ines are v ery profitable, w h ile oth ers barely
p a y the c o st o f operation . A t all tim es m ines are bein g
w ork ed w h ich yield only the ord in a ry rate o f profit, an d these
are the ones first to be aband oned w hen p rices rise. T hese
m ines m ay be called the “ m argin al” m ines, an d the cost of
m in in g gold in these is the cost w ith w h ich the value o f gold
tends to con form . A s the value o f g old fa lls— that is, as
p rices rise— the expen ses of gold m in in g increase and m argin al
m ines are abandoned. T he w orld ’ s output of g old bein g thus
dim inished, the rate o f increase in the w o rld ’ s stock of gold
receiv es a ch eck , and the d ow n w a rd ten d en cy of its values
is also checked. On the oth er hand, w hen p rices are fa llin g
becau se the d em and fo r gold is outrun ning the supply, poorer
m ines a re b rou g h t w ith in the field of profitable op era tion and
a gradu al but stead y increase o f the annual output sets in.
F u rth erm ore, sin ce fa llin g p rices are often accom p a n ied by
d epression in m an y industries, the a tten tion o f m en is m ore
than ordin arily directed to the p rofits o f gold m ining, and
p rosp ectors g o out in unusual nu m bers in search of new
m ines. A s a result, a fall o f p rices is usually follow ed , not
on ly b y an increased output from old m ines, but b y the d is
co v e ry o f n ew fields o f gold, the yield from w h ich finally so
au g m en ts the su pply that the value o f g old begin s to fall and
the- p rices o f g ood s rise.
N KBEL'
SUPPLY
CO.
If You Are Looking For
A Good Feed Mill
Saturday, J u l y
Grain Elevator Machinery,
Friction Clutch Pulleys,
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Power Shovels,
Car Pullers,
Boot Tanks,
Boilers,
Atlas Steam Engines.
C omplete Equippers of Grain E levators
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LINK B EL T ING
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In fact everything for the Com
plete Equipment o f Country and
Terminal Elevators. Our Catalog
Sent Promptly on Request.
The
Midland Machinery Co.
M IN N E A P O L IS, MINN.
Saturday, Ju ly
THË
t, 1905
COMMERCIAL
WEST
39
V
y-
>
>
IÀ
Outlawed National Bank N otes.
V-*
V*
The financial world will be greatly
startled by a decision just rendered
in Minnesota by a justice of the peace
to the effect that a national bank bill
is outlawed and cannot be of any
value to any one, and therefore can
not constitute a good tender for a
debt after six years from its date.
The opinion of the learned justice
states that the law is to the effect
that a demand must be made within
six years in order to preserve a cause
of action on a demand note, that the
bank note is a demand note, and in
the absence of proof that payment
thereof had ever been demanded of
the bank the note is outlawed.
Strange that no one thought of it be
fore.— Case and Comment.
WRITE FOR. MY
“ Grain Trade Talks
Edward G. Heeman
G R A IN A N D P R O V IS IO N S ,
S T O C K S , B O N D S , C O T T O N A N D C O F FE E ,
1 5 9 L a S a lle S t ; Rotunda National Life Building,
Member Chicago Board of Trade.
C H IC A G O
C O M M IS S IO N M E R C H A N T O N L Y ,
D o i n g n o t r a d i n g w h a t e v e r o n m y o w n a c c o u n t , e n a b l e s m e to
ju d g e the m a r k e t f r o m a n u n b i a s e d s ta n d p o in t.
All business transacted through and confirmed by Chas.W. Gillett.
M y “ GRAIN TRADE TALKS ” are published in full in the Chicago Evening Post
and Chicago Journal. 4 ® “Will send either paper free to customers.
Dominion Iron and Steel has start
ed its new mills with some large or
ders on hand.
Frederick B . Well*
Charlea F . Deave*
George W . Peavey
Frank T . Heffelfinger
The Peavey
System of Grain Elevators
Electric Steel Elevator
Company
C a p a c ity
Embrace« the greateat number of Grain Elevators with the largest
aggregate storage capacity of any Elevator System in the world.
Total capacity in eight states, 3 5 , 8 0 0 ,000 bushels.
H E A D Q U A R TE R S
Chicago
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Federal Reserve Bank of St. Louis
M IN N E A P O L IS
Branch Offices:
Duluth
Kansas C ity
C. E . Thayer
Sec. & Trees.
Geo. M. Gillette
Vice-Pres
L . S . Gillette
President
2 ,2 0 0 , 0 0 0
B a s tx e is
GRAIN DEALERS AND
WAREHOUSEMEN
WHEAT, FLAX AND BARLEY
Omaha
OFFICE 75 CHAMBER
OF COMMERCE
M IN N EAPOLIS
THE
40
COMMERCIAL
WEST
Saturday, Ju ly
i, 1905
A R M O U R G R A I N C O . B A R T L E T T , F R A Z IE R
G R A IN D E A L E R S
a n d CARRINGTON
205 La Salle Street
CHICAGO
Milwaukee Elevator Co.
G R A IN
Western Union Building, CHICAGO.
MINNEAPOLIS
DEALERS
Specialty, Barley
S T O C K S and B O N D S
G R A IN and P R O V IS IO N S
M IL W A U K E E , W IS .
No. 7 New Street, N EW YORK.
MILWAUKEE
noard of Trade, New York Stock Exchange, New York
Produce Exchange, New York Coffee Exchange, Chicago Stock Exchange,
Liverpool Corn Trade Association, New York Cotton Exchange, Milwaukec Chamber of Commerce.
P R IV A T E , W I R E S T O A L L P O IN T S
C. E. W H E E L E R
& CO.
C a rg ill Commission
Company
GRAIN AND STOCK BROKERS
FARGO , N O . D A T.
B r a n c h O f f i c e s : H i l l s b o r o , N. D. C a s s e l t o n , N . D.
M embers
C h ic ag o B o a r d o f T rade
M in n e a p o lis C h a m b e r of C o m m e r c e
P r iv at e W ir e s
F . S. FROST
F . G.
BADGER
D U L U T H A N D M IN N E A PO LIS
■V
A i
F. S. F R O S T & CO.
GRAIN COMMISSION
Members
M ilwaukee Chamber o f Commerce
Chicago Board ofT rade
DULUTH
G r a in
M IL W A U K E E
C H IC A G O
V- I
Invites Correspondence Regarding; Unlisted Securities
M IN N EAPO LIS, M IN N .
CHICAGO, 5 and 7 Board ol Trade
NEW YORK, 401 Produce Exchange
Liberal Advances made on Consignments
BENJAMIN S. WILSON
THOMAS E. WELLS
T. E. WELLS & COMPANY
MINNEAPOLIS OFFICE:
COMMISSION MERCHANTS
GRAIN, PROVISIONS, STOCKS AND BONDS
J. C. VERHOEFF, Manager
L. D. KNEELAND
JOHN F. L. C UR TIS
AL LA N M. C LEMENT
FRANK R. McMULLIN
FRANK B. B R A D L E Y
Telephone Harrison 1256
1 0 1 1 -1 0 1 7 Royal Insurance Building,
C H IC AG O
Kneeland, Clement, Curtis & Co.
S . W O O D W O R T H & ~ C fc
COMMISSION.
Minneapolis, Duluth, Milwaukee and Chicago.
Rookery Building
ORDERS FOR FUTURES EXECUTED IN ALL MARKETS.
MEMBERS: New York Stock Exchange; New York Coffee Exchange:
Chicago Stock Exchange; Chicago Board of Trade.
P R IV A T E, W IR E S
G . P. H a r d i n g ,
Vice-Pres.
C l in t o n M o r r iso n , Pres.
L. C. M it c h e l l , V-Pres.
W . S. W o o d w o rth ,
Sec. and T ress.
y<W W |
E S T A B L IS H E D
Great W e ste rn
Elevator C om pany
1870
W. R. Mumford Co.
M IN N E S O T A
COMMISSION MERCHANTS
GRAIN, PROVISION^, STOCKS AND BONDS
L. T. SOW LE & SO N S
C H IC A G O , 4 2 8 - 4 3 0 R I A L T O B U I L D I N G
M IN N E A P O L IS , 7 9 C H A M B E R O F C O M M E R C E
S T . L O U IS , 3 0 6 C H A M B E R O F C O M M E R C E
K A N S A S C IT Y , 6 0 6 B O A R D O F T R A D E
NEW YORK, 2 0 0 P R O D U C E E X C H A N G E
ESTABLISHED 1884
GRAIN, PROVISIONS, STOCKS and BONDS
ACCOUNTS
113-11 4 New Chamber of Commerce, M IN N EAPO LIS
( Ground Floor )
Members Chicago Board of Trade, Minneapolis Chamber of Commerce
ROSENBAUM
OF SP EC U LATIVE
IN V E S T O R S
AND
HEDGERS
S O LIC IT E D
Lib e r a l A d v a n c e s o n C o n s i g n m e n t s of G r a i n , S e e d s , H a y , E t c .
MEMBERS
G R AIN
(IN C O R P O R A T E D )
GRAIN
MERCHANTS
O R D E R S FO R F U T U R E D E L IV E R Y S O L IC IT E D
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Y
D. L. R a ym o n d , Secy.
H. F . D o u g la s , Treas. and Gen. Man.
M IN N EA P O L IS,
V
W
2 1 9 L a S a lle S tre e t. CHICA G O .
E. S. W o odw orth ,
President.
■<
STOCKS, BONDS, GRAIN,
PROVISIONS, C O T T O N & COFFEE
SHIPPING AND
J.
<
GRAIN, PROVISIONS, STOCKS, BONDS. COTTON
Wholesale Coal, Grain-Commission Merchants
E
M e rch a n ts
MILMINE, BODMAN 6 C O .
E. A. BROWN & CO.
9 2 3 Chamber of Commerce,
a n d C o m m is s io n
M IL W A U K E E
OF ALL
EXCHANGES
COMPANY
CHICAGO
\
Saturday, Ju ly
THE
i, 1905
W . S. McLaughlin, Pres.
COMMERCIAL
A. B. Ellis, Sec’y
AMERICAN GRAIN CO.
GRAIN COMMISSION
M IN N EAPO LIS
M c L A U G H L IN
&
-
-
M IN N .
E L L IS,
Winnipeg
John H. Wrenn & Company
WEST
41
B. H. W O O D W O R TH ,
P re sid e n t.
E . S. W O O D W O R TH ,
V ice -P re s.
R. P. W O O D W O R TH ,
Sec. and Tre a s.
W o o d w o r t h Elevator
Company
M IN N E A P O L IS
-
M IN N E S O T A
FOR RESULTS
USE THE
T H E R O O K E R Y , 225 La Salle St.
“ W
C H IC A G O
^ S T OC KS ,
BONDS,
GRAIN, PROVISIONS
and “ F O R
COFFEE AND COTTON
d
McD o n a l d
.
a
e. w
. M cD o
G R A IN
nald
&
. su m n er
co.
C O M M ISSIO N
8 0 6 -8 0 7 Chamber of Commerce,
SALE”
COLUM N
y Private Wires to New York and Minneapolis
d. a.
A N T E D ”
Minneapolis, Minn.
Gregory, Jennison & Company
THE
OF
COMMERCIAL
WEST
W RIGHT-BOGERT & CO.
G R A IN — P R O V IS IO N S
106-107-108-119 Rialto Building, C H I C A G O
E. L. WELCH
C. A. MALMQUIST
M IN N E A P O L IS
E. L. WELCH & CO.
G R A IN ELEVATO RS
GRAIN COMMISSION
Storage Capacity: Terminal 1,300,000 Bu.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Country 500,000 Bu.
1011 Chamber of Commerce
/MINNEAPOLIS, MINN.
35,000 Barrels
o f it
w o u ld n o t b e m a d e
d a ily — u n less
PILLSBURV’S BEST
w a s re a lly
th e b e s t flo u r m a d e .
42
THE
COMMERCIAL
WEST
Saturday, Ju ly
i, 1905
*-4
y4
C H I N A ’S A G R I C U L T U R A L P R O B
LEM .
cause the fines are not to be enforced.
—San Francisco Bulletin.
38.000 in the Arkansas Valley,
7.000 in the Grand River valley.
The great agricultural problem in
China is how the farmers can best
protect their crops. Of all the vari
ous crops which are grown in China
there are not more than two which do
not give the owner anxiety for fear
they are stolen. The heads of_ sor
ghum and millet can easily be clipped
off; nothing is easier to despoil than
a field-of sweet potatoes; melons are
an easy prey to the thieves; all or
chards attract the marauders, and
even the cotton fields are not ex
empt from nightly visits. Where the
population is densest the extent to
which this thieving is carried passes
belief. From these villages when the
twilight falls a crowd of men, women
and children stream forth which re
sembles the exodus of workers in the
early morning.
In the face of this difficulty the
farmers have been obliged to band to
gether to protect themselves from the
ravages of the poor, and they have
formed societies for watching the
crops. The villages which have en
tered the association usually proclaim
the fact by painting upon the side of
some conspicuous temple four char
acters which signify that the fields are
looked after in common. Sometimes
a number is added which tells the
number of nersons who will watch the
property day and nighty When a
fixed number of persons is employed
the expense is shared by the village,
a tax being placed upon the land, and
each taxpayer gives the direct ratio
of the amount of land he owns. All
persons belonging to these leagues
are sworn to seize any one who may
be found stealing the property of any
member of the league. Failure to do
this makes it necessary for the mem
ber guilty of violation of this rule to
pay the fine as if he had committed
the theft himself. Certain head men
from the villages comprise a court
before whom offenders are taken,
tried and punished. No regular way
of punishing offenders is earned out,
but the most frequent one is a fine
graded according to the amount taken
and the financial standing of the cul
prit. The fine must be paid at once
or the prisoner makes it possible that
he may be confined in a cangue for
a month or two at harvest time.
Wnatever measures are taken for
the protection of crops, the rules of
the league are also ve ry rigid as to
the amount of gleanings which must
be left in the field for the poor. Even
the length of the stubble which shall
remaiiLafter the crop is harvested is
regulated by rule. In districts where
the sorghum is cultivated it is cus
tomary to strip off the lower leaves
that the grain m ay have a better
chance to ripen. These leaves are
much prized as food for animals. The
day on which the strippings of the
leaves takes place any one may enter
the field of any one else and strip the
leaves from the planfi provided _ he
does not go above a stipulated height
on each plant. The day is regulated
by the league, and no one, be he rich
or poor, is allowed to anticipate the
day. The dav before the stripping_ a
warning gong is sounded in the vil
lages, and the next day the main busi
ness of every one is leaf stripping.
More important than this is the regu
lation in regard to cotton picking.
This crop is perhaps the only one
raised in the empire which is abso
lutely necessary to every one of the
inhabitants. It is considered the pre
rogative of the poor to pick cotton
wherever they m ay find it after a cer
tain date— a date which is. of course,
regulated by the league. This day is
called “ relaxation of punishment,” be-
There are 125,000 acres of Colorado
land at present planted to sugar beets,
80,000 acres in the northern section,
Burlington has issued $23,859,000 I l
linois division 4s to refund consoli
dated mortgage 4s.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
and
LOW
EXCURSION
FARES
Via Baltimore and Ohio Railroad From
Chicago to
Asbury Park, N . J ., and
return
$21.35. Tickets good going June 29,
30, July 1 and 2, valid for return
until August 31 by extension.
Stop-over at N ew York, Philadel
phia, Baltimore and Washington.
Through sleeping cars to Asbury
Park.
Baltimore and return $18.00.
Tickets good going July 2, 3 and
4. Valid for return until August 31
by extension.
Stop-over at W ash
ington. The only line that operates
through trains.
Send for circulars
to R. C. Haase, N. W . T. P. A .,
St. Paul, Minn.
B. N . Austin, G.
P. A . , Chicago. Consult your near
est Ticket A gen t for details.
4
■
y
ERIE RAILROAD
The most delightful scenery between
Chicago, Buffalo and New York.
trains
every morning,
Limited
afternoon
and
evening for Buffalo, New York, Albany
and Boston.
Finest Pullman sleeping cars
•A
A
t
A
and
superb dining car service.
Stop-over without extra charge
at
Cambridge Springs and Niagara Falls.
A
Booklet., time-card«, (to ., furnishe d by H. B.
SMITH, Traveling Faaaenger Agent, St. Paul, or D. M.
BOWMAN, General Western P en . Agent, Ohloago.
—4.
The Busy Man’s Train
to Chicago
*«r
from the Twin Cities is the
Burlington’s “ Limited.” : ; :
Leaves Minneapolis at 7:50 p.
m. and St. Paul at 8:40 p. m.,
arriving at Chicago Union
Station 9: a. m.
: Electric
lighted from end to end.
Smoking and Buffet car with
club convenience. Dining car
for breakfast.
Leaves on
time, arrives on time. Try it
once — you’ll use it always.
F. M. RUGG, Northwestern Passenger Agt.
Germania Life Building, ST. PAUL.
-4
w
V
V
.--A
-A
Saturday, Ju ly
i, 1905
THE
COMMERCIAL
WEST
43
B EST KIND
NORTHERN PACIFIC RY
3 CROSS CONTI NE NT TRAINS 3
St. Paul-Mmneapolis-Helena-Butte-Spokane-Puget Sound.
Send four Cents for LEWIS A N D C L A R K B O O K L E T to
A. M. CLELAND, General Passenger Agent,
St. Paul, Minn.
S U P E R B N E W T R A IN
7 ? S T . L O U IS
C H IC A G O
T H E SH O R T LINE
TO OMAHA,DES MOINES
AND KANSAS CITY
J. G. R IC K E L , c . T . A.
424 Nicollet Avenue,
MINNEAPOLIS, - MINN.
Cfc
T H E C O M M E R C IA L W E S T is the leadin g com m er
cia l and financial paper o f the N orthw est, and every
B an k er, G rain M erchant and Business Man should be
a subscriber. I t ’s reliab le and up-to-date.
A Business Opportunity
along every foot of the
6 ,0 00
Miles o f Track
operated by the
( o m io r t g
a fe ty
on the
N orth=W este rn
L im ite d
M in neapolis, St. Paul
T o Chicago
The entire line Twin Cities to Chicago protected by
Lhe ^Lek signal system; the best device known for
the safe handling o f trains
A tr a in c o m p le t e in e v e r y d e ta il.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O F F IC E S :
Minneapolis, 600 Nicollet Avenue
St. Paul, 396 Robert Street (Ryan Hotel)
GREAT
NORTHERN
RAILWAY
“ T h e C omfortable W a y ”
$ 25.00
To the Pacific Coast
and correspondingly low rates to
other points in the Northwest.
Send two cents for booklet “ Busi
ness Openings Along the Great
Northern Railway” to
C. E. STONE,
Passenger Traffic Manager,
Dept. X
St. Paul, Minn.,
and for detailed information and rates address
as above or any representative of the Great
Northern Railway.
THE
44
COMMERCIAL
WEST
Saturday, Ju ly
I, 1905
A
H.
P O E H L E R
Jam es Doran & Com pany
CO.
W e give special attention to òut-of-town in
vestments and speculative accounts. Our
private wires and our connections with all
the principal exchanges enable us to give
prompt and accurate service. Correspon
dence invited.
-:•••
E S T A B L IS H E D 185 5
GRAIN COMMISSION
M IN N E A P O L IS
AND
DULUTH
S O L IC IT O R D E R S A N D C O N S IG N M E N T S
E A S T E R N A N D M IL L S H IP M E N T S
W R IT E FOR S A M P L E S
"O U R
P R IV A T E M A R K E T L E T T E R
m a il e d
u p o n
GERMAN-AMERICAN BANK BUILDING
ST. PA U L,
REQUEST”
HOIT GRAIN COMPANY
-
-
M IN N E SO TA
RECEIVERS AND SHIPPERS
IRW IN, G REEN & C O .
OATS, BA R LE Y , CORN
GRAIN-PROVISIONS-STOCKS-BONDS
Market Letters Mailed on Application
CORRESPONDENCE AND BUSINESS SOLICITED
1012 Chamber of Commerce
128-131 Rialto Building
M IN N E A P O L IS
*>
C E R E S O T A
NOTONLY
<
KNOWN BY THE TWO UNI QUE FI GURES
( T H E JAPANESE
SCROLL. , MEANI NG GOD- GI VEN
FOOD, a n d t h e BOV c u t t i n g A LOAF of BREAD J
IDENTIFIED
WI TH T H I S
BRAND
of
VE R Y
POPULAR
FLOUR
BUT BY T H O U S A N D S UPON T H O U S A N D S
WHO USE IT DAI LY, AND IN T H I S WAY TESTI FY
,
TO ITS R E L I A B I L I T Y AN D ECONOMY.
SEND
POSTAL
FOR
ILLUSTRATED
BOOKLET
C OR RESP ON DEN C E I NVI TED
JAPANESE
IN S ID E
SCROLL-
THE
ADDRESS
R IN G
INIM ITABLE
BOY
r
THE NORTHW ESTERN CONSOLIDATED M IL L IN G CO.
M I N N E A P O L I S , MINN.
MANUFACTURERS
“ Eternal vigilance is the price of liberty.”
It is also the source of profit to every man
who makes a business of feeding stock for the market.
C O M B IN A T IO N S , C O M PE T ITIO N
and R IV A LR Y are the three forces that
inspire E N E R G Y , I N D U S T R Y and
INDEPENDENCE.
Don’t lose heart and don’t be forced out
of business because the price of fat stock
has declined.
Brace up— improve your
methods, and don’t be a “ has-been.”
The most highly concentrated food on
earth is O L D P R O C E S S G R O U N D
LINSEED C AK E (oil meal). It is cheaper
than corn, oats, bran, or any other kind of feed
A
GROUND LINSEED CAKE IS
A FAT-FORMER— A FLESH-PRODUCER— A HEALTH-GIVER
A TIME-SAVER— A MONEY-MAKER. '
The prize cattle at the late Chicago Stock Show were fed Linseed
Meal made by our Company.
Write for prices. Send us your address and we will mail you our
book giving “ up-to-date” methods for feeding stock.
r
A M E R IC A N
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
L IN S E E D
CO M PANY
MINNEAPOLIS, MINN.
@FedFRASER