Full text of Commercial West : November 6, 1909, Vol. XVI, No. 19

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B A N K IN G ,
THE N O R T H W E ST .

W ESTERN INVESTM ENTS, M ILLING AND GR AIN.
THE C E N TR A L-P A C IFIC W EST.
THE SO U TH W E ST.

E INVITE A ll o r p a r t OF
■
THE BUSINESS OF INDIVIDUALS.
CORPORATIONS A N D FI R M S W HO
APPRECIATE CONSERVATIVE BANKING,

THE N O R T H E R N ^
I TR U ST CMO
MPANY
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C o r La S a l l e A n d

C A P IT A L
SURPLUS

St s . C H I C A G O

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Banking. Bond. Savings andTrust Departments.
O F F IC E R S

D I R E C T O R S

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BANKERS

Government Bonds
Investment Securities
Members New York Stock Exchange

S P E C IA L

L IS T

OF CURRENT

O F F E R I N G S on A P P L I C A T I O N

N

ew

York

135 Cedar St.

BYRON L SM ITH

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No. 19

SATURDAY, NOVEMBER 6, 1909

V o l . XVI

C h ic a g o

BOSTON
28 State St.

115 Adams St.

The Minnesota
Loan & Trust Co.
H a v e y o u considered
the advantage of the Cor­
porate Executor, Adminis­
trator or Trustee?
This C o m p a n y — t h e
Oldest Trust Company in
Minnesota — is authorized
to act in this capacity.

CHAS. E . LEWIS & C o.

W e s te r n B a n k s

412 to 415 Chamber of Commerce

d e sirin g a C h ic a g o
connection are invited
to place their accounts
with the First National
Bank of Chicago. ^ A
department especially

Up-town Office:—Oneida Block

organized to take care
o f Bank accou n ts is
maintained, presided
over by August Blum,
V ic e -P r e sid e n t, and
H e rb e rt W . Brough,
A ssista n t M anager.

The First National
Bank of Chicago.
F v e r s z & C om pany
DA.1M K E R S

“ The Corporation Does N ot D ie”

Capital and Surplus

$ 8 0 0 ,0 0 0

313 Nicollet Ave.,
MINNEAPOLIS, MINN.

F.L H AN K E Y V IC E P R ES ID ÈN T I
ARTHUR HEURTLEV ~5ECRETAPr
H .0.E D M 0 N D 5 ASST SECRETARY
H.H.ROCKWELL ASST SECRETARY
EDWARD C. JA R V IS
AUDITOR,
H -B JU D S O R MANAGER BOND DEPE

P R E S ID E N T

^SOLOMON A.SMITH 2UPVICEPRES
TH O M AS C .K IN G
CASHIER
ROBERT MCLEOD ASST.CASHIER
G.J. M IL L E R
AS 5TC A5H IER
RICHARD M.HANSON. ASST. CASHIER

Negotiate and issue Loans for Rail­
roads and Established Corporations.
Buy and sell Bonds suitable for In­
vestment.
20 3 L A SA LLE. ST, C H IC A G O

MINNEAPOLIS
MEMBERS

N. Y . STOCK EXCHANGE
ALL LEADING
GRAIN EXCHANGES
GRAIN, PROVISIONS,
STOCKS, BONDS
Chicago and New York Correspondents:
Bartlett, Patten & Co.
S. B. Chapin & Co.

ICharles Hathaway & Co.
D EALERS IN

COMMERCIAL

PAPER

C H A S . W . F O L D S , Resident Partner
205 La Salle Street, CHICAGO
NEW YORK OFFICE
45 Wall Street
BOSTON OFFICE
60 Congress Street
ST. LOUIS OFFICE
408 Olive Street

Capital

$ 9 ,0 0 0 ,0 0 0

V? T H E
CONTINENTAL
NATIONAL
BANK
OF
CHICACO
Surplus and Profits
$ 5 ,0 0 0 ,0 0 0
GEORGE M. REYNOLDS, President

The National Park Bank, of N ew York
ORGANIZED 185 6

Capital S 3 ,0 0 0 ,0 0 0 .0 0

Surplus and Profits $ 9 ,7 5 0 ,2 4 6 .1 0

Deposits September 1, 1909, $ 1 1 6 ,2 1 8 ,2 5 8 .1 7
D IR E CT O R S

OFFICERS

Richard Delafield, 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

Maurice H. Ewer, Cashier
W. 0. Jones, Ass’t Cashier
W. A. Main, Ass’t Cashier
F. 0 . Foxcroft, Ass’t Cashier

Joseph T. Moore
Stuyvesant Fish
Charles Scribner
Edward C. Hoyt
W. Rockhill Potts

August Belmont
Richard Delafield
Francis R. Appleton
John Jacob Astor
George F. Vietor
Cornelius Vanderbilt

Issac Guggenheim
John E. Borne
Lewis Cass Ledyard
Gilbert G. Thorne
John C. McKeon

TH E COMM ERCIAL W EST

Saturday, November 6, 1909

The Commercial
National Bank
of

CHICAGO

Capital, Surplus and Undivided Profits, $10,500,000
E D W A R D M. LACEY, Chairman of the Board
GEORGE E. ROBERTS, Prest.
NATHANIEL R. LOSCH, Cashier

This bank is pleased to place at the disposal
of its customers the facilities gained
during forty-five years of continu­
ous service and growth

a u d its

Te m p l e , W e b b
Ce

A

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P

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A

in v estig a tio n s

& Co.

ccountants

M

a r w ic k

uditors, in d u strial counselors

it c h e l l

&

Co.

ACCOUNTANTS

EXCHANGE

79

AND

M

Minneapolis, 760 Temple Court

ST. P A U L — GERMANIA LIFE BUILDING
M IN N E A P O L IS — LUMBER

,

CHARTERED

A N D ECONOMI STS

BUY

system s

SELL

your

w a l l

street

, N ew

York

WASHINGTON

PHILADELPHIA

PIT TSB URG

CHICAGO

K A N S A S CIT Y

S T. P A U L

W IN NIPEG

LONDON

GLASGOW

A. T. RAND.
Prest.

R. R. RAND.
Vice-Prest.-Treas.

W. H. LEVINGS,
Sec’y

Minneapolis Gas Light Co.
G en era l O ffices:
N os. 1 6 - 1 8 - 2 0 South S even th S treet,

COPPER STOCKS

MINNEAPOLIS, MINN.

through

MURPHY-LANDIS CO. Inc.
Capital Stock S5 0 ,0 0 0 .0 0

515-516 Lumber Exchange, MINNEAPOLIS

L IG H T,

G A S FO R
H E A T AND

POWER

A full line of Gas Stoves, Fixtures, Lamps and Gas
Appliances for sale to consumers at cost prices.
ESTIMATES FURNISHED

ILLINOIS T R U S T A N D S A Y IN G S B A N K
CHICAGO

C apital and Surplus
$1 3 , 3 0 0 , 0 0 0 . 0 0
Interest Allowed on Savings and Checking Accounts

H ig h

G r a .d e

Bank Fixtures
L . P A U L L E C O ., Minneapolis, Minn.

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Kettle River Quarries Company
Building Stone and Creosoted Timber
Stone and W ood Block Pavements
SECURITY BANK BUILDING


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Federal Reserve Bank of St. Louis

MINNEAPOLIS, MINN.

1

Saturday, November 6, iâôô

Established

1865

t h e c o m m e r c ia l w e s t

U N IO N B A N K OF C A N A D A

Head Office:

QUEBEC

Capital Authorized, $4,000,000 — Capital Paid up, $3,200,000 — Rest, $1,800,000
B o a rd of

D ir e c t o r s .

Hon. John Sharpies, President; W m . Price, Esq., Vice
President; R. T. Riley, Esq., E. L. Drewry, Esq., W m .
Shaw, Esq., F. E. Kenaston, Esq., John Galt, Esq., M. B.
Davis, Esq., E. J. Hale, Esq., Geo. H. Thompson, Esq.,
G. H. Balfour, General Manager; H. B. Shaw, Asst. Gen­
eral Manager; F. W . Ashe. Supt. Eastern branches; J. G.
Billett, Inspector; E. E. Code, Asst. Inspector.
F. W . S. Crispo, Supt. W . branches, W innipeg; H.
Veasey, Asst. Inspector; P. Vibert, Asst. Inspector; J. SHiam, Asst. Inspector.
A d v i s o r y C o m m i t t e e , T o r o n t o B ra n c h .

Geo. H. Hees, Esq., Thomas Kinnear, Esq.
B ra n c h e s and A ge nc ies .

Quebec.— Dalhouse
Station,
Montreal,
Quebec,
St.
Louis St., Quebec, St. P'olycarpe.
Ontario.— Alexandria, Barrie, Carlton Place, Cookstown, Crysler, Englehart, Erin, Fenwick, Fort William,
Haileybury, Hastings, Hillsburg, Kemptville, Kinburn,
Kingsville, Leamington, Manotick, Melbourne, Merrickville, Metcalf, Mount Brydges, Newboro, New Liskeard,
North Gower, Norwood, Osgoode Station, Ottawa, Ottawa
(Market Branch), Pakenham, Plantagenet, Portland,
Roseneath, Shelburne, Smith’s Falls, Smithville, Stittsville, Sydenham, Toledo, Thornton, Toronto, Warkworth,
Wheatley, Wiarton, Winchester.

Manitoba.-—Baldur, Birtle, Boissevain, Brandon, Carberry, Carman, Carroll, Clearwater, Crystal City, Cypress
River, Dauphin, Deloraine, Glenboro, Hamiota, Hartney,
Holland, Killarney, Manitou, Melita, Minnedosa, Minto,
Morden, Neepawa, Ninga, Rapid City, Roblin, Russel,
Shoal Lake, Souris, Strathclair, Virden, W askada, W a w a nesa, Wellwood, Winnipeg, Winnipeg (N. E. B r.), W inni­
peg (Sargent Ave. B r.), Winnipeg (Logan Ave Br.).
Saskatchewan.— Adanac,
Areola,
Asquith,
Carlyle,
Craik, Cupar, Esterhazy, Fillmore, Gull Lake, Humboldt,
Indian Head, Kindersly, Landis, Lang, Lanigan, Lemberg,
Lumsden, Macklin, Maple Creek, Maryfield, Milestone,
Moose Jaw, Moosomin, Outlook, Oxbow, Pense, Perdue,
Qu’Appelle, Regina, Rocanville, Rosetown, Saskatoon,
Saskatoon (W est End Branch), Scott, Sintaluta, Strassburg, Swift Current, Tessier, Theodore, Wapella, W e y burn, Wilkie, Windthorst, Wolseley, Yorkton, Zealandia.
Alberta.— Airdrie, Alix, Barons, Bassano, Blairmore,
Bowden, Calgary, Cardston, Carstairs, Claresholm, Coch­
rane, Cowley, Didsbury, Edmonton, Ft. Saskatchewan,
Frank, Grassy Lake, High River, Innisfail, Lacombe,
Langdon, Lethbridge, Macleod, Medicine Hat, Okotoks,
Pincher Creek, Stirling, Strathmore.
British Columbia.— Prince Rupert, Vancouver.
Agents and correspondents at all important centers in
Great Britain and the United States.

WESTERN BONDS.
FUTURE

BOND

ELE C T IO N S .

N o v e m b e r 9— Shoshoni, W yo., $40,000 waterworks bonds.
N o v e m b e r 9.— Montgomery county, la. (P. O. Red Oak),

$50,000 hospital bonds.
N o v e m b e r 13. — Helena, Mont., school district, $50,000 school
improvement bonds.
N o v e m b e r 16.— Lyons, Neb., $0,000 electric light bonds.
N o v e m b e r 16. — Ravenna, Neb., school district, $30,000 build­
ing bonds.
N o v e m b e r 25.—Guthrie. Okla., $50,000 water extension, $30,000
fire department, $25,000 park and $20,000 sewer bonds.

F U T U R E BOND SALES.
8.— Aberdeen, S. D., $42,000 funding bonds; 4%
per cent.; 10 years; certified check $500. F. W . Raymond, city
auditor.
N o v e m b e r 8.— Lincoln county, Okla., (P. O. Chandler), $150,000 improvement bonds; 5 per cent.; 25 years; certified check
5 per cent. J. E. Rea, county clerk.
N o v e m b e r 8.— Portage, W is., $26,000 sewer bonds; 4% per
cent.; 10(4 year, optional-average. Fred F. Goss, city clerk.
N o v e m b e r 9.— Big Horn county, W yo. (P. O. Cowley), School
District No. 28, $5,000 building bonds; not exceeding 6 per cent.;
5% year, average; certified check $100. Chas. A. Welch, district
clerk.
N o v e m b e r 9.— Port of Coos Bay, Ore., $500,000 harbor im­
provement bonds; 5 per cent.; 29% year average; certified
check $5,000. J. C. Gray, treasurer board of commissioners,
First National Bank, North Bend.
N o v e m b e r 9.— Columbus, Mont., joint School District No. 6,
Yellowstone county, No. 34, Sweet Grass county, and No. 47,
Carbon county, $5,000 bonds; denomination $500: not exceed­
ing 5 per cent.; 10-15 year, optional; certified check 5 per cent.
Geo. H. Simpson, clerk.
November
11. — Northwood,
la., drainage district, $2,000
drainage bonds. C. N. Urdahl, auditor.
N o v e m b e r 13. — Helena, Mont., school district, $50,000 school
bonds. Clerk of school board.
N o v e m b e r 13. — Holding, Minn., $5,000 waterworks bonds; de­
nomination $500; 6 per cent.; 10 years. J. A. Winkler, village
recorder.
N o v e m b e r 13. — Yellowstone county, Mont. (P. O. Billings),
School District No. 2, $19,000 school bonds; denomination $1,000; not exceeding 6 per cent.; 10-20 year, optional; certified
check 5 per cent. Joseph L. McClellan, clerk.
N o v e m b e r 15.— Mapleton, Minn., $7,000 refunding bonds; de­
nomination $1,000; 5 per cent.; 7 year, average; certified check
$200. C. M. Credicott, clerk.
N o v e m b e r 15. — Lincoln, Neb., $11,225 paving bonds; not ex­
ceeding 5 per cent.; 5% year, average; certified check 3 per
cent. Roscoe C. Ozman, city clerk.
N o v e m b e r 17.— Custer county, Mont., (P. O. Miles City),
$50,000 bridge bonds; denomination $1,000; not exceeding 5 per
cent.; 10-20 year, optional; certified check 5 per cent. O. C.
Haynes, county clerk.
N o v e m b e r 25. — Spokane, Wash.., $500,000 bridge and $500,000
waterworks extension bonds; not exceeding 4% per cent.; 25
years; certified check 2 per cent, each issue. Robert Fairley,
city comptroller.
D e c e m b e r 6.— Stark county, N. D., (P. O. Dickinson).— $60,000 refunding bonds; denomination $1,000; 20 years.
J. S.
White, county auditor.
November

BOND

NOTES.

Lake Andes, S. D.— A recent election authorized the issuance
of $8,000 funding bonds.
Hood River, Ore.— An election is proposed to vote on issu­
ing $90,000 waterworks bonds.
Snyder, Okla.— A recent election carried the proposition of
issuing $20,000 waterworks bonds.
Grand Forks, N. D.—A special election will soon be held to
vote on issuing bonds for a lighting plant.
Tahlequah, Okla.— The sale of the $90,000 5 per cent., 25 year
water and sewer bonds has been postponed.
Ashland, Wis.-—The city council will soon consider the ques­
tion of issuing about $85,000 refunding bonds.
Brookings county, S. D. (P. O. Brookings).— This county re­
cently authorized an issue of $143,000 road bonds.
Kearney, Neb., School District No. 7.— An election will be
held in this district in the near future to vote on the question


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Federal Reserve Bank of St. Louis

of issuing $30,000 4% per cent., 10-20 year, optional, building
bonds.
Boulder, Colo.— The National State bank, Boulder, has been
awarded the $5,000 improvement bonds at 100.60.
Sentinel, Okla.— Bonds were authorized at an election held
on October 15 for the construction of a water system.
. Albert Lea, Minn.— The citizens of this town have voted to
issue bonds to the sum of $66,000 for paving purposes.
Isanti, Minn.— An issue of $2,500 4 per cent., 20 year im­
provement bonds have been awarded to the state at par.
Milford, la.— The proposition of issuing bonds to the sum of
$12,000 was carried at an election held on October 11.
Madill, Okla.— A t an election held on October 14 $20,000
sewer and $2,500 street crossing bonds were authorized.
McLeod county, Minn. (P. O. Glencoe).— An issue of $12,000
4 per cent, ditch bonds have been sold to the-state at par.
. Bartlesville, Okla.— On October 13 the voters authorized an
issue of $40,000 city hall and $20,000 fire station debentures.
Dayton, W yo.— The state was awarded the $16,000 5 per
cent., 15-30 year, optional, waterworks bonds at par for 6s.
Wausau, W is.— The city council recently voted to bond the
city to the amount of $46,500 for school and sewer purposes.
Two Harbors, Minn.— The town council passed an ordinance
recently authorizing the issuance of $15,000 refunding bonds.
Summit Hill, A lta.— The $1,500 5% per cent., 10 year school
debentures have been purchased by H. O’Hara & Co., Toronto.
Whytewold Beach, Man.— H. O’Hara & Co., Toronto was
recently awarded the $1,500 6 per cent., 10 year school deben­
tures.
Tripp, S. D.— The $10,000 5 per cent., 20 year waterworks
bonds, offered on September 16, have been sold to the state
at par.
Big Falls, Minn.— A special election will soon be held to sub­
mit to the voters the question of issuing bonds to the sum of

$8,000.

Yorkton, Sask.— The ratepayers will soon vote on a by-law
to issue debentures to the sum of $40,000 for high school pur­
poses.
W est St. Paul, Minn.— The city council is considering the
question of issuing bonds to the sum of $5,000 for local im ­
provements.
Sapulpa, Okla.— The election held on October 19 authorized
$315,000 waterworks, sewer and fire department bonds by a
large majority.
Garfield county, Neb. (P. O. Burwell).— The state recently
purchased the $10,000 4% per cent., 10-20 year, optional, funding
bonds at par.
Pipestone, Minn., Independent School District No. 1.— This
district will soon vote on bonding for the erection of a new
school building.
Kamloops, B. C.— The $38,000 hospital, waterworks and local
improvement debentures have been purchased by Brent, Noxon
& Co., Toronto.
Okfuskee county, Okla. (P. O. Okemah).— Ulen, Sutherlin &
Cd., Kansas City, has been awarded the $100,000 5 per cent., 20
year bridge bonds.
Erie, Kan.— An election will soon be held to vote on the
question of issuing bonds to the sum of $100,000 for water, light
and sewer purposes.
Rocky Ford, Colo., Holbrook Irrigation District.— A recent
election carried the proposition of issuing irrigation bonds to
the sum of $650,000.
Shelby, Neb., School District No. 32.-— The proposition of
issuing $4,000 4% per cent, building bonds will soon be s u b ­
mitted to the voters.
Blackwell, Okla,— On October 12 $12,500 filtration plant, $5,-

EDWIN

WHITE

<& C O .

Government
Railroad
Municipal
D w ili/O
Corporation
CO M M ER CIAL PAPER.
State Savings Bank Bldg.,
ST. PAUL, MINN.
Exclusive Correspondent* of Spencer Trask & Co-, New York

TH E COMM ERCIAL W EST

4

Saturday, November 6, 1909

T H E F IR S T N A T IO N A L B A N K
Capital $1,000,000.00

Surplus $1,000,000.00

Officers:
E. H. Bailey, Pres’t E. N. Saunders, Vice Pres’t Wm. A. Miller, Vice Pres’t F. A. Nienhauser, Cashier 0. M. Nelson Ass’t Cashier
Directors: James J. Hill, Howard Elliot, 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, Haydn S. Cole, W. P. Davidson

000 Are department and jail and $2,500 street improvement
bonds were authorized.
Richland Center, W is., Joint School District No. 2.— An elec­
tion will be held to vote on issuing bonds to the sum of $60,000
for the erection of a high school.
Sandstone, Minn., School District No. 5.— A recent special
election voted to bond the district to the sum of $26,000 for the
erection of a new school building.
Bingham county, Idaho (P. O. Blackfoot), School District
No. 30.— The state was the successful bidder for the $6,000 5
per cent, school bonds, paying par.
Uehling, Neb.— The $7,000 5 per cent., 5-20 year, optional,
waterworks bonds, offered on September 20, have been pur­
chased by the state at par for 4%s.
Portage, Wis.-—All bids for the $26,000 4% per cent., 1014
year, optional-average, sewer bonds have been rejected. New
bids will be received on November 8.
Chelan county, W ash. (P. O. W enatchee), School District
No. 12'.— The state was the successful bidder for the $10,000 5
per cent., 20 year school bonds, paying par.
Garvin county, Okla. (P. O. Pauls Valley).— The county com­
missioners have declared the election called to vote on issuing
$200,000 courthouse, jail and bridge bonds, off.
Winfield, Kan., school district.— The board of education has
asked the city officials to call an election to vote on issuing
bonds to the sum of $74,000 for building purposes.
Oklahoma City, Okla.— John Nuveen & Co., Chicago, was
awarded the $185,000 5 per cent., 25 year sewer bonds at a
premium of $9,625-105.202, a basis of 4.647 per cent.

(Special Correspondence to the Commercial W est.)

Duluth, Nov. 1.— Much credit is due to the Evening
Herald of this city for awakening a new life, energy and
enterprise, which is resulting in decided advancement of
Duluth’s affairs. A recent editorial sets forth the city’s
future as follows:
“ Big as it is, the construction of the new steel plant
of the United States Steel corporation in Duluth is in
itself a lesser part of the big future now opening before
Duluth.
“ It will employ several thousands of men, well paid
men who are home-owners and will buy of Duluth mer­
chants and patronize Duluth enterprises of all kinds, and
it will add four or five times that many people to the pop­
ulation of Duluth, for these workers will bring families
with them. The movement of steel manufacture is toward
the West, where the ore is and where the market is, and
this plant fixes upon Duluth as one of the largest centers of
coming steel manufacture. But even considering all these
tremendous facts, the steel plant in itself is still a lesser
part of the mighty events, carrying promise to Duluth, now
maturing in the womb o f progress.
“In other words, the indirect effects of the steel plant
will be as great as the direct effects, or perhaps even
greater.
“ Because steel manufacturing seemed centered in
Pennsylvania, the railroads have treated it as a fixed in­
dustry, and made their rates accordingly. Thus it costs
just as much to ship manufactured products from Duluth
or Minneapolis to the Far West as it does from Pittsburg.
Pittsburg’s disadvantage in distance is overcome by arbi­
trary railroad tariffs. This is the so-called ‘postage stamp’
rate. It will, by the force of events and by the growth of
traffic, automatically disappear with the beginning of
operations at the steel plant. Freight rates will be re-ar­
ranged to give Duluth the advantage to which it is entitled
by virtue of its nearness to the markets.
“ That in itself is as big a thing as a new steel plant.
Why should manufacturers abandon established plants in
the East and move to Duluth when freight rates are the
same from their old locations as they would be from the
new? It is true that Duluth is nearer the markets, but
when freight rates are the same from distant points as
they are from near ones, that advantage of nearness is
destroyed. It will be restored when the traffic from the


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Federal Reserve Bank of St. Louis

Rock Lake, N. D.-—The question of issuing $400 bonds will
soon be submitted to the residents of this village. The bonds,
if voted, will be used in paying the outstanding indebtedness
and housing the Are department.
Grand Junction, Colo., School District No. 1.— The $42,500
5 per cent., 15-30 year, optional, building bonds have been pur­
chased by Jas. H. Causey & Co., Denver, at a premium of $2,500-105.88, a basis of 4.46 per cent.

new steel plant seeks the market, and that change is
pregnant with big possibilities for Duluth.
“ Another indirect effect of the steel plant location is
that it will bring other plants. Around the big new steel
plant at Gary many allied manufacturing industries have
oeen located; and many allied manufacturing industries
will locate around the new steel plant at Duluth. In­
deed, announcement of such locations may be expected
at almost any time, now that the definite statement of
steel plant plans has been made public. And if various
iron and steel industries locate at Duluth, to take advan­
tage of Duluth’s nearness to the market, other manu­
facturing industries will also locate here for the same
reason, and also to take advantage of the market that will
be created right here in Duluth by the sudden increase in
population created by the steel industries.
“ These things, it should be remembered, are not to be
taken in place of the splendid campaign for making Duluth
bigger, better and busier that has just been started. They
are merely a great encouragement to those working upon
those plans; they furnish new reasons why those plans
should be pushed, and should have the support of every
citizen. Better railroad service and rates are still needed,
and they will be easier to get, for the railroads cannot ig­
nore a city whose future possibilities are so evident.
Cheaper cost of living is even more essential than it was
before. Patronizing home industries also is more essential,
in order to give encouragement to those who may think of
locating here because of the market offered here for their
products.”

Duluth’ s Future Assured.

BONDS

South Omaha, Neb., school district.— An election will be
held in the near future to vote on the proposition of issuing
$60,000 not exceeding 5 per cent. 20 year building bonds.
Seaside, Ore., school district-— On October 11 $6,000 6 per
cent., 20 year building bonds were sold to Morris Bros., Port­
land, at a premium of $60-101, a basis of 5.90 per cent.
Medford, Ore.— The $54,250 6 per cent., 1-10 year, optional,
street improvement bonds, offered on September 30, have been
sold to Philip Grosmayer, Emil DcReboam and F. W . W aters.
Fargo, N. D.— The question of issuing bonds to the sum of
$45,000 for rebuilding the waterworks and building a filtration
plant resulted in the defeat of the proposition at a recent
election.
Lester Prairie, Minn.— J. B. Johnson, Lester Prairie, was
awarded on October 16 the $4,500 6 per cent., 6% year, aver­
age, water tower bonds at a premium of $270-106, a basis of 4.91
per cent.
Brown county, Minn. (P. O. New U lm ).— The Union Invest­
ment Co., Minneapolis, was awarded the $70,000 5 per cent.,
10% year, average, ditch bonds at a premium of $975-101.39, a
basis of 4.334 per cent.

W IS C O N S IN C E N T R A L BOND IN T E R E S T .

New York, Oct. 29.— Commencing December 1 the Bank
of Montreal will pay the coupons on the following obliga­
tions of the old Wisconsin Central railway instead of the
United States Mortgage & Trust Co., as formerly: W is­
consin Central Railway Co. first general mortgage bonds,
Wisconsin Central Railway Co. gold equipment trust bonds,
Milwaukee & Lake Winnebago railroad first mortgage
bonds, Chicago, Wisconsin & Minnesota railroad first mort­
gage bonds, Minneapolis terminal purchase-money mort­
gage bonds, Marshfield & Southeastern division purchasemoney mortgage bonds and the Superior & Duluth Division
& Terminal first mortgage bonds.
The $2,500,000 Wisconsin Central first and refunding
bonds which have just been listed on the New York Stock
Exchange were handled entirely by the Bank of Montreal.
The bonds were distributed among some four hundred pri­
vate investors in London a few weeks ago at about 99.
They are part of a total issue of $60,000,000 authorized
early in March.

S T O C K
BANK

and

C E R T I F I C A T E S

C O R P O R A T IO N

THE

S T A T I O N E R Y . F U R N IT U R E . S U P P L IE S

PIO N EER

COMPANY"

S U C C E S S O R TO T H E P IO N E E R P R E S S M FG. D E P T S. E S T A R L IS H E D

S A I N T

P A U L ,

1849

M I N N E S O T A

Saturday, November 6, 1909

F. H. WELLCOME.
President

TH E COMM ERCIAL W EST

F. E. KENASTON,
Vice-Prest.

5
Established 1882.

BERT WINTER,
Sec. & Treas.

T h e P ly m o u th C lo th in g

Union Investment Company

Capital $300,000
H. J. Burton. Pres.
H. L. Tucker. V-Pres.

Bank of Commerce Building,

H o u se

Surplus $124,000
E. A. Drew , Treas.
W. C. Burton. Secy.

MINNEAPOLIS
Men’s Clothing
Boys’ Clothing
Hats and Caps’
Furnishings
FURS
Shoes
Trunks and Bags
Cloaks and Wraps
Millinery

HIGH GRADE MUNICIPAL BONDS
YIELDING 4 to 4 K PER CENT.

Carefully Selected First Mortgages on Improved Farms
Yielding 5 to 6 Per Cent.
L IS T S

ON

A P P L IC A T IO N

COMPLETE CLOTHING OUTFITS

BANK OF O TTA W A

For Men, W om en and Children
Goods sent on approval and accounts opened with responsible
retail buyers having Bank references.

Established 1874

“ Plymouth Corner,” Sixth and Nicollet,

C a p it a l (Authorized)......................$5,000,000.00
Ca p it a l (Paid u p )............................ 3,000,000.00
R est a n d U n d iv id e d P r o f it s —
3,405,991.00

W INNIPEG

J. W. WHEELER. Pres. C. F. MIX. Cashier WM. ANGLIM. V. Pres.

BRANCH

F IR S T

Brothers

TAILORS
FOR PARTICULAR PEOPLE
Our exclusive lines of
Fall' Styles are now here.
709 Nicollet A ve„

MINNEAPOLIS

WILLIAMSON & MERCHANT
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:

McGill Bldg., Washington, D. C.

JOSEPH ROACH, President

Capital $75,000

BANK

Surplus $50,000

We Negotiate Farm Mortgages

Ground Floor

Corn
Exchange
Bank
Building
Chicago

196
La Salle
Street

VonFrantzius&Co.
M EM BERS
NEW YORK STOCK EXCHANGE
C H IC A G O S T O C K E X C H /. NGE
C H I C A G O B O A R D OF T R A D r ,

STOCKS BONDS GRAIN
ROBERT E. BARRON. Cashier

Capital $ 5 0 ,0 0 0 .0 0

N A T IO N A L

CrooKston, Minn.

Agents in every Banking Town in Canada, and corres­
pondents throughout the world.
This Bank transacts every description of banking busi­
ness.

Nicholson

Minneapolis

Harrison & Smith Co.
Printers
Lithographers
Blank Book Manufacturers
Elevator Blanks and Bank Supplies
to order.

Estimates cheerfully furnished.

624-626-628 South Fourth St,
M IN N E A P O L IS

0 / l \ f p f is offered investors in the best farm
/O
I I C l loans obtainable in Ward and Bottin­
eau Counties.
These loans range from $500 upwards
and are available for large and small investors.
This is the oldest and largest bank in this section.
We know values and moral hazards thoroughly and
our facilities offer every safeguard for the most con­
servative investor.

6

Surplus. $ 2 5 ,0 0 0 .0 0 »

The SecondNational Bank
M IN O T . N O R TH D A K O T A

GOLD-STABECK LAND & CREDIT CO.
F. O. GOLD, President
C. O. R. STABECK, Viee-Prest.
H. N. STABECK, Secretary
P. O. HEIDE, Treasurer

C apital an d Surplus

217 Palace Building

-

-

$ 2 0 0 ,0 0 0 .0 0

MINNEAPOLIS

TRI STATE 3316
PHONES N.
{ W. NIC. 783

FARM LO AN S, C O M M E R C IA L PAPER A N D O T H E R HIGH CLASS IN V E ST M E N T S

C en tral T r u st

C o m p a n y of Illin o is

152 M O N R O E S T R E E T , C H IC A G O

Capital and Surplus $ 2 ,5 0 0 ,0 0

Deposits $ 1 8 ,0 0 0 ,0 0 0

OFFICERS
„ „ r ^ „ S HARLES G- ^ A W E S , President
WILLIAM R. DAW ES, Cashier
W . IRVING OSBORNE, )
ALBERT G. MANG, Secretary
L. D. SKINNER,
)
A. UHRLAUB,
f Vice-Presidents
MALCOLM McDOWELL, A ss’ t Sec’y
WILLIAM W . GATES, - A ss’ t Cashiers
E. F. MACK,
>
JOHN W . THOMAS,
J


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Federal Reserve Bank of St. Louis

Accounts of Banks and Bankers Received Upon Liberal Terms

TH E COMM ERCIAL W EST

Saturday, November 6, 1ÖÖÖ

D IR E C T O R S
J. W. Perry
R. A. Long
J. J. Heim
J. J. Swofford
Geo. D. Ford
John Kelley
D. J. Dean
W. S. Dickey
Walter M. Jaccard
F. L. LaForce
W. A. Pickering
C. H. Whitehead
David C. Beals
O. C. Snider
J. G. Peppard
Geo. W. Jones
J. Z. Miller, Jr.
J. D. Guyton
H. A. Guettel
W. H. Seeger
Geo. E. Nicholson

National Bank of Commerce
KANSAS

CITY,

Capital, $2,000,000

Deposits,

.

MO.

Surplus, $250,000

$ 2 3 ,0 0 0 ,0 0 0

.

OFFICERS

COMMERCE BUILDING

THE

J. W . PERRY, President
GEO. M. D. FORD, Vice-President
J. J, HEIM
JAS. T . BRADLEY, Cashier
W . L. BUECHLE
C. M. VIN IN G
)
I Vice Presidents
W . H. SEEGER
W . H. GLASKIN -Ass’t Cash.
CHAS. H. MOORE
JAS. F. MEADE
j

AMERICAN

EXCHANGE
D U L U T H ,

Capital $500,000

NATIONAL

M INN.

BANK

(Established 1879)

Surplus and Undivided Profits (earned) $900,000

Deposits $8,000,000

OFFICERS:—HAMILTON M. PEYTON, President

CHESTER A. CONGDON, Vice President
ISAAC A . MOORE, A ss’t Cashier
COLIN THOMPSON, 2d A ss’t Cashier

W IL LIAM G. HEGARDT, Cashier

EAST

E. J. LANDER & CO.
Security Bank Building, MINNEAPOLIS, MINN.
GRAND FORKS, N. D.

SIDE

STATE

BANK

Corner University and Central Avenue

MINNEAPOLIS, M INNESOTA
FRED BARNEY, President
ISAAC HAZLET, Vice-Prest.
D. L. CASE, Cashier
C. L. CAMPBELL, A ss’ t Cash.

Capital, $100,000

Nezv Accounts and Collections Solicited.

W rite for our booklet “ F ” which explains why
our First Farm Mortgages, secured by improved
and productive farm land in North Dakota, are
most desirable for the investment of idle funds.
They yield 5%?o and 6% per annum, which we

THE DOMINION BANK
Head Office:

collect and remit promptly to the investor.

T o r o n t o , O n t.

E. B. OSLER, M. P.,
President

NATIONAL COMMERCIAL BANK

OFFICERS:

$3,900,000

Capital Paid Up

ALBANY, N Y.
Capital $1,000,000
Surplus
and Profits 1,758,133
Deposits, 17,795,537

C. A. BOGERT,
General Manager

Reserve Fund and
Undivided Profits

5,200,000

Over Seventy Branches throughout Canada.

R o b e r t C. P r u y n ,

Collections in Western Canada
given prompt attention.

President.

Gr a n g e S a r d ,

Vice-Prest.

J a m e s H. P e r k in s ,

Vice-Prest.

E d w a r d J. H u sse y ,

Cashier.

W a l t e r W .B a t c h e l d e r

Asst. Cashier.

WINNIPEG BRANCH

J ac ob H . H e r zo g .

Asst. Cashier.

F. L. PATTQN,
Manager

We make a specialty of
collecting Grain Drafts.

D U D LEY DAW SON ,
A ss’t Manager

NORTHW ESTERN FIRE AN D MARINE INSURANCE CO.
MINNEAPOLIS, MINN.
Organized 1 89 9

F I RE,

HAIL,

CYCLONE

AND

AUTOMOBILE

INSURANCE

Cash Capital $ 2 0 0 ,0 0 0
WALTER C. LEACH, Pres’t and Mgr.,

ALVIN ROBERTSON, Vice Pres’t JAMES D. BROWN, Vice Pres’ t H. N. STABECK, Vice Pres’ t

W . A. LAIDLAW, Sec’y and Treas.

Accounts of banks, firms and corporations are welcomed on
terms consistent with the character of the service rendered.

THE MERCHANTS N ATIO N AL B A N K
F. W . A Y E R , President
W M . A . L A W , Vice Prest.


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Federal Reserve Bank of St. Louis

T H O M A S W . A N D R E W , Cashier
W . P. B A R R O W S , A ss’t Cashier

OF PHILADELPHIA

Capital, Surplus and Profits, $ 1 ,8 7 0 , 0 0 0

TH E COM M ERCIAL W E ST

Saturday, November 6, 1909

7

and after a careful inspection of that institution
will return and visit the college at St. Anthony
Park, for the purpose of comparison.
A W EEK LY JO U R N A L
B A N K IN G , G R A IN A N D W E S T E R N D E V E L O P M E N T
P u b lis h e d by t h e C o m m e r c i a l W e s t Co., M in n e a p o li s , M i n n .

E d w in

M ead , President and Manager.
R o llin E. S m i t h , Editor.

M IN N E A P O L IS
Pub lication

M IN N .

Office, S u i t e 409 Globe
T e l e p h o n e M a in 307.

B u il d in g

C hi c a go Office:

466 Rookery, Telephone, Harrison 1653.
C. B. MacDowell, Advertising Representative.
S U B S C R IP T IO N IN A D V A N C E .
POSTAGE FREE.
On e Y e a r , $3.00. S i x M o n t h s , $1.50. C a n a d a , $4.00. E u r o p e , £ 1 .

The Commercial W est will not knowingly publish the adver­
tisement of a financially unsound individual or company.
Entered as Second-Class Mail Matter at the Post Office,
Minneapolis. Minn.

SATURDAY, NOVEMBER 6, 1909.

Activities of Agricultural Com m ittee,
Minnesota Bankers Association.
While it is generally known among’ the bankers
of Minnesota that there is an agricultural com­
mittee of the state association, it is probably not
realized how active that committee is nor how very
much in earnest it is in its work. The committee
is composed of twenty bankers representing all
parts of the state, and the amount of information
regarding conditions on the farm—that is, farm
life and the tendency of the young men to leave
the farm for the city, and for farmers to leave the
state for more attractively advertised regions—
the amount of such information already obtained
by the committee is voluminous. The committee
sees great opportunities for very substantial bene­
fits to the state by means of properly directed
w ork; and one conclusion arrived at is that the
Agricultural College at St. Anthony Park, adjacent
to the State Fair grounds, between St. Paul and
Minneapolis, is the nerve center of the agricultural
life of the state. The Agricultural College can
exert a greater influence in the direction of per­
manent agricultural advancement than all other
factors combined; and realizing this, the commit­
tee of bankers will earnestly strive for the further
upbuilding of that already splendid institution,
until its work becomes as broad as its field of
activity demands.
One of the greatest present needs of the Agri­
cultural College is that it be absolutely segregated
from political influence; and then that it remain so.
A dean will soon be chosen,— should have been
selected at the October 26th meeting of the Uni­
versity regents,— and upon the dean will depend
the welfare of the state to a greater degree than
has probably ever before been realized. While the
agricultural committee of the Bankers association
has not expressed an opinion favoring the appoint­
ment of any particular person for the deanship,
the members feel that the importance of the posi­
tion demands the selection of a broad-iiiinded man,
free from political tendencies, who has already
thoroughly proved his capabilities. The committee
will, on the evening of November 12th, go to Mad­
ison, to visit the Wisconsin Agricultural College;

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Federal Reserve Bank of St. Louis

The Prejudice Myth.
hrom the attitude of many daily papers in dis­
cussing the central bank, one might infer that
unanimous consent of all voters is necessary before
any action should be taken. The prejudice against
the bank of the United States of Andrew Jackson’s
time is harped upon as though the Jackson incident
was a recent happening instead of belonging to
ancient history as regards our national life. Even
if such prejudice were as great as we are told, this
was over eighty years ago and conditions are so
changed and the science of banking and finance is
so much better understood that the erratic action
of Andrew Jackson has no bearing whatever on the
present question. Furthermore, political history
does not show that the action of Jackson in abolish­
ing the Bank of the United States was endorsed by
the people. In fact, that action, which helped to
produce the disastrous panic of 1837, threw the
presidency to Harrison in 1840, with the Bank ques­
tion as an issue. And as the present plan of a
central bank eliminates the most objectionable
features of the old Bank of the United States, let
us have done with dragging the ghost of Andrew
Jackson into this discussion.
After three generations it is certainly safe to say
that there are no prejudices against a central bank
from such ancient source. It is a myth. There is a
popular feeling against establishing such a bank
and having it controlled by the big financiers for
speculative purposes, but everyone advocating the
central bank idea is emphatic on that point. They
insist that it shall be free from such influence. Otlier
nations have been able to avoid any such complica­
tions. Are we willing to admit that we are less
clever or shrewd in such matters?
But it is asking too much of the average voter
to pass an intelligent opinion on such questions.
He feels he is being abused when asked to study
out the details of questions for the skilled financier.
When he sent a representative to Congress he
thought he was voting for a man of ability who
could handle such problems. So the campaign of
education should be with Congress rather than to
reach the voters of the country.
In spite of the many clear statements of the
central bank plan that have been made during the
past few years, it is surprising how persistently the
matter is confused and befogged by the daily press.
The Milwaukee Evening Wisconsin, on October
28th, published nearly a column editorial on, “ A
Central Bank.” It proceeds to mix up the value­
expressing function of money with money as a
medium of exchange in a most despairing way. It
fumbles the matter till the reader who is not in­
formed is lost in a hopeless maze. It says this, for
instance: “ It has been the-favorite simile to liken
money to a yardstick. An india rubber yardstick
would never do. Credit is flexible, sound money
is not.” Isn't that a clincher as an argument against
an elastic currency?
Here is the old, familiar delusion that currency

TH E COMM ERCIAL W EST
is money. That bank notes or any currency are
simply one form of credit, should be evident to any­
one who would take time to read the imprint on all
currency, which is always a “ promise to pay” a
certain amount, the same as a check or draft.
The gold standard is thoroughly established in
this country, both by practice and legal enactment.
There is no desire on the part of advocates of a cen­
tral bank to change such standard. Our action on
the standard of value was to bring us in line with
the most advanced nations who were already on a
gold basis. To establish a central bank will be a
similar step and simply give us what most other
nations now have, a center or head to their general
banking system. A little clear thinking on this sub­
ject will help matters.

W isconsin Bankers Against Guaranty.
The resolution adopted by the bankers of south­
eastern Wisconsin declared in no uncertain terms
against the Oklahoma practice of the guaranty of
bank deposits. That this is a fair idea of the sen­
timent of the bankers throughout the state is
shown by the result of the polling of the state by
the state association. Some months ago letters
were sent to all the bankers of Wisconsin asking
for an expression of opinion for or against the
plan of deposit guaranty. Up to date the returns
show about 9 to 1 against it. If it is fair to pre­
sume that those not voting were also opposed to
it, the vote would stand nearer to 20 to 1. But
9 to 1 is a good working majority, as the poli­
tician would say. If this vote had been taken after
the recent disclosures and sad experience in Okla­
homa City, it is safe to say that the result would
have been even more emphatic against such un­
sound banking practice.

G oing “ Plowshares and Pruning H ook s”
O n e Better.
In an address at the convention o f . the Upper
Mississippi River Improvement association at
Winona, on October 6th, Hon. James A. Tawney,
congressman from Minnesota and perhaps the next
Speaker of the House, declared, in substance, that
even one less battleship a year would make pos­
sible river improvements without further tax upon
the country. Also, Mr. Tawney said, “ If the people
could be brought to realize that we are spending
from $40,000,000 to $50,000,000 more every year
than is necessary, in preparing for war, we would
soon have all the money we want for internal im­
provements, without resorting to bond issues.”
Likewise, Mr. J. J. Hill says, in his article,
“ What W e Must Do to Be Fed,” in “ World's
•W ork” :
“ If I could have my way, I would build a couple
of war ships a year less. Perhaps one would do. I
would take that $5,000,000 or $6,000,000 a year and
start at least 1,000 agricultural schools in the United
States at $5,000 a year each, in the shape of model
farms. This model farm would be simply a tract
of land conforming in size, soil treatment, crop
selection and rotation, and methods of cultivation
to modern agricultural methods. Its purpose would
be to furnish to all its neighborhood a working

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Federal Reserve Bank of St. Louis

Saturday, November 6 1909

model for common instruction. Cultivating, per­
haps, from forty to sixty acres, it could exhibit on
that area the advantages of thorough tillage which
the small farm makes possible; of seed specially
chosen and tested by experiment at agricultural
college farms ; of proper fertilization, stock raising,
alternation of crops and the whole scientific and im­
proved system of cultivation, seeding, harvesting
and marketing. The farmers of a county could
see, must see, as they passed its borders, how
their daily labors might bring increased and im­
proved results. The example could not fail to im­
press itself upon an industry becoming each year
more conscious of its defects and its needs.”
Yes— but what would become of our naval of­
ficers, the admirals and rear admirals, the com­
manders and ensigns; and what would New York
do for an occasional naval parade?

Deposit Insurance.
It is probable that companies organized for the
purpose of insuring bank deposits will become the
vogue, to a considerable extent at least, as a result
of the agitation caused by the guaranty of deposits
idea. Therefore the recent decision, relative to
such a company, by the attorney general of Iowa is
of particular interest. The Iowa Bank Deposit In­
surance Co. applied to the state auditor for articles
of incorporation, and he, being in doubt, applied to
the attorney general for an opinion. The latter
said, in part: “ After careful consideration, I am of
the opinion that such insurance is fairly covered
by the language of said section (Section 1709, sup­
plement to the code, 1907), that the same is not
against public policy and is, therefore, lawful.”
That is, the insurance of its deposits by a bank
is lawful, in Iowa. But companies will not be per­
mitted to insure the deposits of individual deposit­
ors. In a former opinion the attorney general held
that a company could not lawfully be organized
for the purpose of insuring individual depositors
against loss by reason of bank failure. That opinion,
the attorney general says, rested upon the proposi­
tion “ that the money of the depositor, when placed
in a bank, becomes the property of the bank, and
hence the individual depositor has no insurable in­
terest in such deposit.”
Rather too nice a point to be fully convincing,
perhaps, but it may be good law nevertheless. Still,
the depositor has a credit at the bank in which he
may have an “ insurable interest.”
The further reason for an adverse opinion on
the insuring of individual deposits, as held by the
attorney general of Iowa, is not only decidedly con­
vincing but shows great foresight and penetration
on the part of that official. He held that such insur­
ance would tend to unsettle business and be against
public policy, “ for the reasons that the volume of
business written would depend upon the suspicion
and distrust that the company would be able to
create in the individual depositor.”
This, certainly, is sagaciously reasoned out; for,
as the business of the insurance company would
depend upon the depositors’ distrust of the banks,
it would be to the interest of the company to cause
distrust; and in times of financial uncertainty, such

Saturday, November 6, 1909

TH E COMM ERCIAL W E ST

a company could do a vast amount of damage by
means of its advertisements.
The insurance of the deposits of a bank, such
insurance to be taken out of the bank and not the
depositor, seems a perfectly legitimate enterprise,
and doubtless will find favor with many bankers.

The Governm ent Land Drawing.
The Commercial West is pleased that someone
with the prominence of Mr. Louis W . Hill has had
the courage to denounce, publicly and in an em­
phatic manner, the Government’s lottery drawings
of Indian reservation lands. At Billings, Montana,
at the Dry Farming Congress, Mr. Hill declared
that the taking of the people’s money to give it to
the railroads (for transportation), while “ less than
two per cent, had a chance to draw farms,” was on
the order of a swindle. “ The Flathead Indian res­
ervation,” the speaker said, “ was opened with the
Coeur d’Alene and one other, and it is estimated
that 300,000 people went out there. They paid for
railroad fare not less than $12,000,000. W e receive
our portion— money that we would rather give back
to the people if we knew where they were. They
were induced to go, understanding that they would
get homesteads. I have met lots of them who had
given up good positions in the east to go out there.
Take the Flathead reservation. At least one-third
or 100,000 persons filed there. Out of that lot, how
many drew blanks? But 1,800 farms could be drawn ;
the balance, 98 per cent., got nothing. Less than
2 per cent, had a chance to draw farms, and when
they got there they could not find the Indian maps
to find out where to go without paying out money
for driving around.”
But this is not all. The reservation lands in the
northern part of South Dakota and the southern
part of North Dakota, the drawing for choice of
which was held last week, may be used as an ad­
ditional argument against the Government’s land
lottery system. In addition to the small percent­
age of possibility of drawing a farm, there is, in
this case, an excellent prospect that only a part of
those who drew numbers will get agricultural land.
Much of the land just being thrown open, the Com­
mercial West is informed, is suitable only for graz­
ing, and successful agriculture is out of the ques­
tion. There will be some good farms, of course, but
there will be many disappointments among the
“ fortunate winners” of numbers.
The whole system of these. land drawings is
wrong, and they would be a crime if the deception
were intentional and 98 per cent, of the people's
money were extorted for someone’s personal gain.
Instead of the Government taking the 98 per cent,
it is given to the railroad companies and the hotels.
At Monte Carlo the percentage in favor of “ the
house” is only 1 or 2 per cent.; and yet Monte Carlo
is denounced by the civilized world. The Louisiana
State Lottery— but what’s the use? No stronger
argument against the Government land drawing
could be advanced than the statement of Mr. Louis
W. Hill, quoted in the foregoing.
While the Government, by means of its method
of distributing the Indian lands, causes an enormous

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Federal Reserve Bank of St. Louis

9

loss to the people, it appears that the Government
was itself blindly led into a scheme for the profit
of a few in the magnificent Gunnison tunnel proj­
ect. For four and a half years Government engi­
neers labored steadily to drive an immense tunnel
through some six miles of solid rock, and only re­
cently President Taft personally opened the gates
and turned on the waters of the Gunnison river,
which are to perpetually water the lands of a won­
derfully fertile but dry valley. The cost of the
tunnel was $5,000,000 and by selling perpetual water
rights to actual settlers, the Government will be re­
imbursed. The water rights cost $35 an acre, and
many people gained the impression that this would
be the only cost to settlers. The area finally to be
brought under irrigation was thought to be 150,000 acres. But, in advertising the project to in­
duce settlers to go there, one of the great railroad
companies of the southwest recently said: “ Of the
150,000 acres included in this project, nearly 100,000 acres is land which has long belonged to private
parties. The other 50,000 acres lies for the most
part above the lines of the canals built from the
Uncompahgre river many years ago, and is more
or less rough, remote and inaccessible.”
Thus it appears that not only is the good land
limited to about 100,00 acres, but nearly all that is
desirable “ has long belonged to private parties;”
and it is now held at $75 to $300 an acre, exclusive
of the $35 water right. The Government has there­
fore spent $5,000,000 for a wonderful tunnel to bene­
fit a few land speculators. One may assume with­
out fear of going wildly astray that those same
speculators had some influence in securing the ap­
propriation for the tunnel project.

Record Railroad Traiffic.
President W . C. Brown of the New York Cen­
tral has announced that the management had en­
tered^ upon a campaign of extraordinary expendi­
tures to meet extraordinary traffic demands. The
company has placed contracts in the last few days
for $25,000,000 worth of new locomotives, passen­
ger and freight cars, and intends to spend $60,000,000 more—$85,000,000 in all— in reducing
grades, straightening curves and laying new rails,
exclusive of $50,000,000 terminal improvements in
New York city. “ These expenditures,” he said,
“ are absolutely necessary to meet the demands of
business.
I he traffic records for the months of
September and October up to date have exceeded
anything in the company’s history. The previous
high water mark was for the first three-quarters
of 1907, just before the panic.”
The problem of the railroads is now, and will
be, how to handle the immense volume of busi­
ness that is offered. With such conditions at hand
it behooves us to see that the investment market
for railroad securities is not disturbed by adverse
legislation or administrative annoyance. It does not
require any particular friendliness to the roads to
see this. Just enlightened self-interest of business
generally forces such truth upon us. Not that we
care about the profits the roads may make; that
is incidental. The main thing is that the in­
creased volume of business be handled promptly.
If it is not, if there is serious congestion of traffic,
business of all kinds suffers and profits that were
in sight are wiped out. Such vast expenditures
for betterments indicate the confidence of railroad
managers in the substantial prosperity that is at
hand,

TH E COMM ERCIAL W EST

10

THE

M ONEY

Commercial West Office, Minneapolis, Nov. 3.— There
are no new features in the money situation in the North­
west, nor does there seem to be a tendency toward any
material change in existing conditions. There is only a
very moderate demand for money, and no great demand for
paper from the banks throughout the Northwest. The
whole money situation is influenced by the position taken
by the farmers, who are selling their grain only moderately.
There is some complaint, as a result of this, that collec­
tions throughout the Northwest are not so good as a year
ago. And there is a little renewing of loans by lumber­
men, who should be paying off their paper, and by imple­
ment dealers. General business is healthy, however; and
there is no question but that the movement of grain will
be in good volume during the next sixty days. With the
U N I T Y ON T H I S C O N T I N E N T .

Three statesmen, an American, a Canadian, a Mexican,
at the banquet of the Chicago Association of Commerce,
called attention, each in his own fashion, to that peculiar­
ity of North America in this age when continents are di­
vided into armed camps— the peculiarity of three nations
on one continent not merely at peace, but undefended
one from the others.
The system of Europe, which is forcing even insular
Britain toward conscription, which is being rapidly imi­
tated in Asia, not only does not obtain in North America,
but is superfluous and unnecessary here. That is a great
fact.
North America’s exemption from the law of national com­
petition which is gradually bankrupting Europe and which
is bending the necks of the Japanese, should be continued
by every effort of the statesmen of the three great re­
publics. Its continuance may well be the cardinal policy
to govern us.
Canada, as the Canadian statesman remarked, is already
our third best customer, and likely soon to become our
first. Mexico, as the Mexican declared, has great re­
sources which it is our destiny to help develop.
The amity of nearly a century with Canada and of
over half a century with Mexico, it is our statesmanship's
chief concern to foster. Moreover, the forty-ninth parallel
which is unmarked by fortifications or barracks, should
likewise ultimately be stripped of its custom-houses.
Forthwith those tendencies which are working to
create two separate commercial entities of Canada and the
United States should be opposed by unifying policies, or
the chasm gradually created by tariffs may one day frown
with guns.— Minneapolis Journal.
A sound banking law that will prevent a bank being
run for the use of politicians, is a stronger guaranty of
safety than any deposit guarantee law that could be de­
vised.—Wall Street Journal.
THE

M O VE A G A IN S T CANNON.

Joseph G. Cannon has become a political impossibility.
Circumstances league themselves against him. The exi­
gency of the situation, the welfare of his party, the de­
mand of the West, urge upon him the expediency and ne­
cessity of making sacrifice of his political existence. The
Speaker must retire.
His merits may be legion. His demerits may be what­
ever they are. But it is not necessary to sit in judgment
upon them at this juncture. For it is not now to the point
whether he be saint or sinner. That question belongs to
history. What is to the point is that the people will no
longer tolerate Mr. Cannon as controller of their House
of Representatives.
It is reported that he is resolved to make a fight of it.
No man doubts the Speaker’s grit, his resource, his ability
to battle long and bitterly. But Mr. Cannon should com­
mune earnestly with himself and let his love of country
and his faith in party instruct him now as to the duty
that devolves upon him. That duty manifestly is that he
obey the behest of destiny.
The opinion of the West has crystallized against Can­
non since the President left Beverly. The whole dissatis­
faction of the West has focused upon the Speaker’s head.
His sacrifice will appease public sentiment, and his re­
moval will be earnest of a new order that is imperative
within the Republican party.— Minneapolis Journal.
B A N K F A I L U R E S IN G E R M A N Y A N D P R O T E C T I O N OF
C R E D ITO R S .

In .1908, according to “ Die Bank,” there were 50 failures
of banks and bankers in Germany, of these 15 were the
subject of criminal proceedings for false entries and embqzzlenient. Forty-six failures were due to bad manage­

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Saturday, November 6, 1909

MARKET.
closing of navigation by another month, the wheat and
flaxseed movement will be turned this way, and stocks
will accumulate in the Minneapolis terminal elevators.
The mills, both in Minneapolis and throughout Minnesota,
have flour enough sold to keep them running until the
first of the year, but buyers have over-bought—have been
speculating—and already some mills are experiencing dif­
ficulty in getting the buyers to order out their flour. Any
falling off in flour shipments will of course result in a
more rapid accumulation of stocks of wheat in the terminal
houses.
Deposits will now doubtless aggregate the greatest they
have ever been, and the local banks expect that at the
time of the next call, all previous records will be broken.
Rates of interest remain unchanged at 5@5% per cent, to
the borrower, on best endorsed paper.
ment. Some of the houses which came to grief had car­
ried on business for from 75 to 120 years. This compares
with 404 failures in the United States, and 382 in England.
In four cases of failures in Germany, the creditors re­
ceived less than 10 per cent.
These failures have led to the discussion of various
measures for the protection of the bank’s creditors. They
are, naturally, a larger cash reserve, a special account in
the Imperial Bank of Germany, and securities of a special
class, similar to the trustee and savings bank acts, here,
excluding stocks and shares. It has been variously pro­
posed that this special reserve for the protection of de­
positors should be from 2 to 10 per cent.
The cash in hand and in the Imperial bank, says “ Die
Bank,” varied from 13 per cent, in the large banks, to 8
per cent, for those with a capital of $2,500,000 down to
$250,000; and about 2.5 per cent, for the small concerns.
But what use is there in such legislative precautions?
The Leipziger bank had 13 per cent, and the Dresdner
Kreditanstalt, 21 per cent, in cash, on the eve of failures.
The Leipziger bank also held government and municipal
bonds equal to 20 per cent, of the deposits.
A. Landsburgh, from whom these observations are bor­
rowed, thinks that it would be impossible in practice to
divide banks into two classes; those of deposit and active
operations in industrial enterprises. The plan suggested
was to limit the former to government and municipal se­
curities, commercial bills, and advances against securities,
including warehouse receipts. It would require, he thinks,
an army of inspectors to ascertain what use had actually
been made of the deposits, and cites the concealment by
the Leipziger bank of the commitments, which brought
about its downfall.
Besides this, in time of trouble and commercial stress,
a bank with unused assets is in better shape to encounter
the crisis than one whose operations are too closely con­
fined. It was the dictum of Lord Westbury, Lord Chan­
cellor of England, that there was no such thing as abso­
lute security in the financial world, and that, therefore,
syndicated securities, with a sinking fund, promised the
largest measure of safety for the investor seeking a per­
manent income.— Summarized for the Wall Street Journal.
T W I N C I T Y IN T H E U N I T E D S T A T E S S U P R E M E
COURT.

New York, Nov. 2.— It is expected that the case be­
tween the Twin City Rapid Transit Co. and the city of
Minneapolis will come before the United States Supreme
Court for hearing in the second week of November. The
city tried to enforce a six-for-a-quarter fare ordinance. In
1907 the United States Circuit Court decided in favor of
the company, and since then the matter has been awaiting
an adjudication of an appeal to the Supreme Court. Offi­
cials and legal advisors of the Twin City Co. confidently
expect that the highest court will uphold the decision for
the company. The final decision should fix the status of
the company with reference both as to fares and the life
of its franchise.
Earnings of the company show improvement over last
year, the 1909 September net earnings totalling $375,612
against $307,287 last year. For nine months of 1909, net
earnings amount to $2,743,852, as compared with $2,393,776 for the corresponding period of last year. Notwith­
standing the long pending litigation, conditions are re­
ported to be satisfactory in all three cities in which the
company operates.
OBJECT TO R A IL R O A D P U R C H A S E .

Frankfort, Ky., Oct. 28.— The Business Men’s Club of
Frankfort adopted a resolution yesterday asking Governor
Willson to take action to prevent the purchase by the
Louisville & Nashville of the Frankfort & Cincinnati rail­
road on the ground that it is a merger.

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

11

WEALTH OF THE NORTHWEST.
That deposits in the banks of the Northwest late this
fall will show a big increase over those of earlier and
also of a year ago, and therefore exceed all previous
records, there is no question. The growth and develop­
ment of the Northwest, as indicated by bank deposits,
have increased at a marvelous rate; so rapidly, in fact,
that it is impossible to comprehend it unless one is con­
tinually in touch with conditions. The tables which follow
enable one to gain at a glance some idea of the remarkable
increase of wealth in the three northwestern states and
Iowa, as reflected in bank deposits. The tables were com­
piled by the Security National bank of Minneapolis. The

totals were taken, as near as the date of the “ calls’’ would
permit, from September 1 statements. These totals are
for deposits in state and national banks, and would there­
fore be slightly larger if savings deposits, and in Iowa the
deposits of some 600 private banks were included. It is
a notable fact that the increase from year to year in the
deposits has been steady, those of only one year being an
exception. During the last five or six years the increase
each year has been truly remarkable; and it indicates the
rapid settlement of lands, good crops and prices, growth
of towns and cities, and the development of business
and manufacturing interests proportionately. The tables
follow:

M innesota.
No. of
Deposits No. of Deposits of Total
State
of State
Nat'l
N at’l
No. of
Year.
Banks.
Banks.
Banks.
Banks. Banks.
1898.. . . . . . 146
$21,955,000
70
$37,415,000
216
1899___ . .. 170
45,655,000
28,463,000
239
69
1900.. . . . . . 184
30,278,000
S3
45,805,000
267
1901.. . . . . . 205
34,220,000
300
95
53,571,000
45,761,000
1902___ . . . 257
128
65,797,000
385
1903.. . . . . . 266
44,144,000
69,384,000
450
184
1904___ . . . 348
50,072,000
215
74,334,000
563
59,092,000
229
83,491,000
636
1905.. . . . . . 407
70,087,000
240
96,481,000
690
1906___ . . . 450
67,073,000
253
112,802,000
1907.. . . . . . 502
755
1908.. . . . . . 613
73,764,000
261
122,211,000
874
79,899,000
190,049,000
903
1909.. . . . . . 634
269
North Dakota.
$4,065,000
24
$5,035,000
111
189S.. . . . . .
87
4,969,000
23
5,057,000
124
1899___ . . . 101
6,206,000
5,016,000
1900___ . . . 128
27
155
5,824,000
35
1901....... . . . 133
6,632,000
168
9,240,000
9,772,000
49
203
1902.. . . . . . 154
10,668,000
11,808,000
71
262
1903___ . . . 191
9,816,000
S3
12,495,000
292
1904.. . . . . . 209
13,111,000
14,519,000
97
339
1905___ . .. 242
17,327,000
118
19,336,000
456
1906.. . . . . . 338
21,232,000
121
20,652,000
515
1907___
21,819,000
132
25,707,000
555
1908.. . . . . . 423
30,492,000
596
140
28,261,000
1909___ . . . 456

South Dakota.
No. of
Deposits No. of Deposits of
State
of State
Nat'l
N at’l
Year.
Bank s. Banks.
Banks!.
Banks.
1898___
$5,467,000
26
$4,246,000
1899.. . . . . . 170
7,665,000
25
5,281,000
1900.. . . . . . 179
8,651,000
28
6 081,000
1901___ . . . 196
11,303,000
34
7,891,000
1902.. . . . . . 229
17,089,000
47
10,899,000
1903.. . .
16,648,000
58
10,864,000
1904___ . . . 264
17,393,000
64
11,827,000
1905___ . . . 280
19,675,000
72
13,752,000
1906___ . . . 327
25,447,000
79
17,317,000
1907___ . . . 378
33,157,000
87
20,229,000
1908___ . . . 426
39,155,000
89
22,325,000
1909.. . . . . . 472
47,368,000
95
31,462,000
Iowa.
1898___ . . . 383
$59,336,000
168
$32,781,000
1899___ . . . 402
77,405,000
172
42,238,000
1900___ . . . 448
91,147,000
196
49,041,000
1901.. . . . . . 474
114,731,000
221
61,677,000
1902.. . . . . . 531
133,692,000
230
66,585,000
1903.. . .
132,443,000
253
64,336,000
1904.. . . . . . 619
131,471,000
269
61,206,000
146.493,000
1905.. . . . . . 677
281
69,709,000
1906___ . . . 715
169,609,000
81,780,000
297
189,806,000
304
1907.. . . . . . 782
92,873,000
1908.. . . . .. 856
201,867,000
319
94,473,000
1909___ . .. 911
232,097,000
320
140,450,000

Total
Deposits.
$59,370,000
74,118,000
76,083,000
87,800,000
111,558,000
113,528,000
124,406,000
142,583,000
166,568,000
179,875,000
195,975,000
269,948,000
$9,100,000
10,026,000
11,222,000
12,456,000
19,012,000
22,476,000
22,311,000
27,630,000
36,663,000
41,884,000
47,526,000
58,753,000

D E P O S I T I N S U R A N C E IN IO W A .

Des Moines, Nov. 1.— Attorney-General Byers has
handed down an opinion in the bank insurance case sub­
mitted by State Auditor Beakly, and holds that a bank
can insure its deposits, that such insurance is not against
a public policy and is permitted by section 1709 of the
supplement to the code. The insurance in question is to
be taken by the bank and not the individual depositor.
The Iowa Bank Deposit Insurance Co. sought permis­
sion from the state auditor to do business in Iowa, but
being doubtful whether it could lawfully write the insur­
ance proposed, the state auditor submitted the question
to the attorney-general.
The following is the full text of the opinion of the at­
torney-general :
“ I am in receipt of your communication submitting pro­
posed articles of incorporation of the Iowa Bank Deposit
Insurance Co., whose object is defined by its articles to
be ‘to insure the safekeeping of books, papers, moneys,
stocks, bonds and all other personal property belonging
to persons, firms and corporations and deposited with
state, national and private banks and trust companies and
to receive them on deposit,’ with the provision in said
articles that no policy shall be issued until such bank or
trust company has been examined b / the company’s ex­
aminer and the same approved.
“ You request an opinion as to whether such insurance
is authorized under the provisions of paragraph 3 of sec­
tion 1709, supplement to the code, 1907.
“ After careful consideration, I am of the opinion that
such insurance is fairly covered by the language of said
section, that the same is not against public policy and is,
therefore, lawful.
“In a former opinion given by this department, it wTas
held that a company could not be lawfully organized for
the purpose of insuring individual depositors against losses
by reason of bank failures. That opinion rested upon the
proposition tnat the money of the depositor, when placed
in the bank, became the property of the bank and hence
the individual depositor had no insurable interest in such
deposit.
“ The further reason for such holding was that to au­
thorize such insurance would tend to unsettle business
and be against public policy, for the reason that the
volume of insurance written would depend upon the sus­
picion and distrust which the company would be able to
create in the individual depositor.
“ These objections are obviated by the plan now under
consideration, the insurance being taken by the bank and
not by the depositor.

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Federal Reserve Bank of St. Louis

Total
No. of
Banks.
190
195
207
230
276
327
328
352
406
465
515
567
551
574
644
695
761
827
888
958
1,042
1,086
1,175
1,231

Total
Deposits
$9,713,000
12,946,000
14,732,000
19,184,000
27,988,000
27,512,000
29,220.000
33,427,000
42,764,000
53,386,000
61,480,000
78,830,000
$92,117,000
119,643,000
140,188,000
176,408,000
200,277,000
196,779,000
192,677,000
216,202,000
251,389,000
282,679,000
296,340,000
372,547,000

“ The further objection usually urged against the insur­
ing of bank deposits that it compels the solvent, careful
banking institutions to pay the losses of the careless and
insolvent institutions does not obtain in this case for the
reason that each bank is to be carefully examined before
its risk is taken by the company, and for the further rea­
son that the insurance is voluntary on the part of the bank
and is not made compulsory by statutory enactment.”
DULUTH

B U IL D IN G

RECORD.

Duluth, Nov. 1.— Building permits for October amounted
to over $900,000, which is the record for any one month in
Duluth. This amount brings the total for the ten months
of this year far above any that have been attained in any
previous full year. Permits for improvements costing
$3,000,000 have already been issued. The gain for the first
ten months of this year over the first ten months of last
year, which was the biggest recorded up to that date, is
nearly $1,000,000.
Buildings have been springing up in all parts of the city
more rapidly than ever before. Activity is general extend­
ing from Lakeside to West Duluth, and including the
business district.
During October of this year 130 permits were issued,
representing a total investment of $906,500. The next
biggest month was in March, 1906, when permits aggregat­
ing $690,131 were issued. Of this amount, however, $500,000 was for a new ore dock. Another big month was May,
1908, when permits for $592,050 were issued.
M ORE OB STA C LES TO M U N IC IP A L O W N E R S H IP .

San Antonio, Texas, Oct. 29.— Where is Mayor Cal­
laghan’s rock crusher and street roller? That is the
question that is agitating this city a great deal. San
Antonio is somewhat infatuated with the government
ownership idea and has for this reason surmised that the
railroad trust is purposely losing the things that go to
make up the city’s own street paving plant. Long the
rock crusher and the street roller have been overdue and
neither the manufacturer, nor the railroads and least of
all the city counsel know what has become of them. The
firm belief is, however, that they have been lost in the
shuffle. Some siding probably is their present habitat.
City councils are such rare purchasers of these things
that something was liable to go wrong through sheer
force of novelty.
Tn the meantime the rest of the street paving plant is
eating its head off. It got here some weeks ago and is
ready for business, but until the rock crusher and steam
roller heave into sight there will of necessity be little do­
ing in the paving line.

TH Ë COMMERCIAL W EST

12

WILLIAM A. TILDEN,

C A P IT A L

President

NELSON N. LAMPERT,

$ 1 ,0 0 0 ,0 0 0

Vice-President

HENRY R. KENT,

SURPLUS A N D PROFITS
$400,0 00

Cashier

GEORGE H. WILSON,
Assistant Cashier

CHARLES FERNALD,
Assistant Cashier

COLIN S. CAMPBELL,
Assistant Cashier

Saturday, November 6, 1909

National
CHICAGO

We have exceptional facilities for handling
the accounts of banks and appreciate them

Your business solicited

NO V EM B ER ’S FINANCIAL O U T L O O K .
(Special Correspondence to the Commercial W est.)

Chicago, Nov. 2.— There has been a tendency toward
monetary congestion in a minimized sense during the
month which ended on Sunday, and present prospects are
suggestive of a continuance of firmness in rates of discount
rather than toward ease. On both sides of the Atlantic
the natural growth of business tended to reduce the
surplus and increase loans, and at the same time the
balance of exports made this country a borrower, with
the result that Canada and South America drew upon
American reserves, resulting in higher rates of foreign
exchange and consequent gold exports.
It is expected, however, that Congress will supply relief
and prevent a recurrence of the difficulties which so vitally
affected the progress of this country two years ago and
previously in 1903. The President is favorably inclined
toward prospective changes in the currency system and
during his tour of the country he has handled public ques­
tions with a view to elucidating them to the satisfaction
of voters.
Concerning the condition of the money market, Harris,
Winthrop & Co., said in their review for the current
month:
“ All the world is fast going upon a higher money basis.
The great banks of Europe have taken the lead in this
direction and with the drastic advances in the Bank of
England’s rate— the three successive advances during
October carrying the rate from 2% per cent, to 5 per
cent.— both home and foreign markets have been forced
to readjust themselves to the changed conditions. This
tendency is in direct response to trade revival, the usual
call for harvesting money, and engagements for new financ­
ing in all parts of the world. The tension has been more
severe abroad than here; in fact so far as the American
market is concerned it may be said that there has not
yet been the slightest suggestion of real stringency. Six
per cent, money in October is certainly not unusual, but
the recent advance, taken in connection with the approach­
ing maturity of upwards of $200,000,000 in short-term note
issues, shows plainly that the era of abnormally cheap
money is at an end. The general banking position in the
United States is admirably secure, although it must be
remembered that within a year the banks of the national

Chicago Stocks A ctive and Higher.
(Special Correspondence to the Commercial W est.)

Chicago, Nov. 2.— There has been a spirit of activity
and strength displayed in the Chicago security list which
is edifying. There have been brisk advances in SearsRoebuck, Illinois Brick, Pneumatic Tool, Street’s Stable
Car and Boxboard which ranged from 3 to 7 points, cul­
minating today in a rally in favor of United Boxboard,
which sold at a new high level since its reorganization,
due to a rise of $4 a ton in strawboard.
The Chicago Stock Exchange has undergone a period
of rejuvenation which followed the election of a new presi­
dent last spring. A new secretary and chairman of the
board is expected to qualify at once and the aggressive­
ness which took place in the character of the market’s
handling suggests a higher plane for local stocks.
Concerning United Boxboard’s activity and resiliency,
Sidney Mitchell, president of the company, said:
“ The Boxboard company, was never in a better position
than it is today. We opened three additional mills last
month and the tonnage of board now being made and

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Federal Reserve Bank of St. Louis

system have increased loans $378,000,000, of which the
expansion at New York City has been only $20,000,000.
Nearly $100,000,000 of this total expansion fell in the sum­
mer months.
“ The country is beginning to do a really extraordinary
business. Railroad earnings and bank clearings show an
enormous movement of merchandise and a very distinct
revival in all lines of industry. In the steel and iron
trade— the basic industry— this improvement is really evi­
dent to a remarkable degree. Our foreign trade is also
giving a much better account of itself. Whereas during
June, July and August imports of merchandise exceeded
exports by $15,879,000, the movement was reversed during
September, that month showing an export balance in our
favor of $32,948,000. This was due primarily to the in­
crease in our agricultural exports which are going out in
great quantities to the betterment of our position in
foreign exchanges. We believe that our foreign trade will
continue to enlarge and that it may be possible for our
bankers to repay Europe for the heavy advances of last
spring and summer— which are estimated as something
between $400,000,000 and $500,000,000— without resorting
to unusual gold exports.
“ The big falling off, however, in our heavy trade bal­
ance-—the loss from a year ago being something more than
$300,000,000 for the first eight months of the present fiscal
year— is so large as to suggest the necessity of gold ex­
ports before the year ends, unless we make heavy sales of
securities to Europe or otherwise provide a very large
amount of exchange. It certainly seems foolish to expect
an inflow of foreign gold during the next two months, al­
though this is the period when such assistance is ordinarily
received from the other side.
“ There is still relatively little speculation in the coun­
try as a whole, and people are not disposed to assume any
unusual risks. The outbursts on the New York Stock
Exchange have failed to attract the general public to any­
thing like the extent that was seen in either 1901 or 1906.
There is a good deal of investment buying going on quietly
all the time, but this does not impose any serious burdens
upon the banks, as it represents in many cases the employ­
ment of profits already earned in industrial undertakings
or business ventures.”
sold is the largest ever shown since the present manage­
ment took hold. That the advances are readily taken by
the trade without any diminution of demand shows the
strength of the business situation. We feel that the com­
pany is in for a period of most satisfactory business and
earnings.”
*
*
*
Illinois Brick advanced 8 points under the promise of a
5 per cent, dividend next February. The newly-arranged
community of interests provided the company with the
means of advancing the price of its product. The instal­
lation of improved machinery for handling brick cut down
the cost of operation and maintenance, and the company’s
surplus has been gradually gaining until the treasury is
now in a state of affluence. Pneumatic Tool’s earnings for
the current year were the largest in its history and the
economies put into practice by the new management made
it possible to add to the surplus account. In the balance
of the active list there has been an indication of invest­
ment support which augurs favorably for the future of the
market.
*
*
❖
In bonds there has been little change and the volume of

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

business transacted was barely sufficient to sustain values,
due in a great measure to the hardening tendency in
money rates. On the other hand, according to the Ameri­
can Trust & Savings bank, this country’s annual harvest
and movement of crops is now so large as to lead all com­
mercial banks to look forward each year to their demands
for September and October with some degree of apprehen­
sion, at least to effect a hardening of rates, which is the
cause of a temporary lull in bond trading and operations
on the Stock Exchange.
Continuing, the circular of the American Trust & Sav­
ings bank says in its description of conditions surrounding
the bond market:
“ We believe, however, that there is no acute stringency
in sight, and that while money rates may advance frac­
tionally in Chicago to even 6 per cent, between this and
December 1st, that our banks, especially in the West,
were never stronger in cash means nor better able to
finance one of the largest crops than they are this year.
Today Chicago banks are loaning considerable money in
New York, and at this writing there is no such tension
in the New York money market as it is believed will even
seriously affect stock market operations, much less other
and more legitimate demands. New York bankers are not
entirely agreed as to the influence of New York credit
operations in having forced the sensational advances of
the last two weeks in the Bank of England official discount
rate.
“ Current estimates of New York’s borrowings from
foreign markets have run as high as $500,000,000 for the
season. Jacob H. Schiff asserts that much exaggeration
has attended these estimates. It is a fact, however, that
New York clearing house banks contracted the loan ac­
count $110,000,000 from the last week in August to October
16, without evidence of any corresponding liquidation in
the stock market. These ioans were supposed to have
been transferred, to a large extent, to foreign banks.
“ At the same time the country’s foreign trade has. been
abnormal in the heavy value of imports and the scanty
exports, leaving no adequate supply of exchange to meet
maturing indebtedness abroad. Plans for flotation of new
bond issues have also been held up in which foreign bank­
ers were expected to participate, and thus take up por­
tions of maturing indebtedness. The great banking inter­
ests of this country are now in such intimate relations with
the important bankers of Europe that large loans can be
arranged almost automatically, if we are willing to pay
the rate. It is likewise true that, with our Government
policy defined and business undisturbed, a larger and
broader market for all American securities will follow, as
well as a quick recovery of business of all kinds in 1910.
“ Under the depressing influence of the great reduction
in public deposits during the last twelve months, and not
only the expectancy that some further reduction will occur,
but that the Government will find it necessary to issue
additional bonds (at least $50,000,000 of 3 per cent, short­
term certificates), the prices of Government bonds have
fallen to a point that makes them attractive to even in­
dividual investors, considering that such securities are
tax exempt. The Consol 2s of 1910-30 closed today at 100V2
bid; the 3s of 1908-18 closed at 101%; the 4s of 1925 closed
today at 117; the Panama 2s closed today at 100%.
“ The market for all securities is dull and lifeless, and
has been since May last, when many institutions and deal­
ers began to reduce their holdings of bonds. This selling
is attributable to two main causes: First, a desire to
anticipate the enforced selling, which would naturally
come at this period by reason of the autumn demand for
money; and, second, an inclination to take the substantial
profits which the steady advance in bond prices for
twelve months had made possible. The result is that
we find the bond market at the present time in a healthy
condition, and at a level of prices that will soon prove
attractive to the investing public. As it becomes more
and more apparent that rates for money will not be as
high this autumn as some had anticipated, the institutions
that sold out their holdings at the high market will be in
a position to buy them back to advantage, and will find
more profit in so doing than loaning their money on call,
or short time paper. Summing up the present situation, it
is healthy, with indications for an early and better demand
for bonds than we have had for the past six months, which
means advancing prices throughout the list.”

13

To
care
f o r our
c o r r e s p o n d e n ts in the
most competent and con­
siderate manner is our con­
stant study.
IRVING NATIONAL EXCHANGE BANK
W est Broadway and Chambers St.,
N E W YORK C ITY

Resources Twenty-nine Millions

railroad, coal and stone quarry properties given in this
column last week supplied the true phase of the situation
which the newspapers of the country are now beginning
to recognize. The Vanderbilt, Moore, Gould and Pennsyl­
vania factions are awaiting the time when they will be
able to dissect the corpse, but the Hill-Morgan power is
still to be reckoned with.
There is now a suggestion that the Walsh roads will
be sold to the Louisville & Nashville, which has for a long
time coveted a line from the Great Lakes, Gulf and At­
lantic coast. The Burlington-Great Northern system has
also been suggested as a possible buyer of the properties,
and other indications point to the Canadian Pacific as the
ultimate possessor of the Southern Indiana as a line link
to a Gulf system which will connect the parent company
with the Soo Line, Wisconsin Central and possibly Louis­
ville & Nashville in seeking an outlet to the Gulf of Mexico
and Atlantic seaboard.
At the present moment there has been no interest paid
on the Walsh notes, long over due. At what moment a
bank examiner will require the Chicago banks to throw
out the Walsh paper and collateral and substitute some­
thing else is problematical. At present the Chicago Clear­
ing House association’s committee is quiescent, waiting
for Walsh to pay his interest.
M O RE V E S S E LS FOR T H E

LAKES.

Chicago, Oct. 29.— The American Shipbuilding Co. has
received orders for seven steel lake vessels of modern
type since the last reports made public, and now has on
its stocks contracts for sixteen’ ships of the large bulk
freight carrying variety. The gross value of business now
on hand will exceed $6,000,000 and is considered a fair
average year’s bookings. The profit thereon assures good
returns on the capital stock of the corporation. With the
large profits from repair work, results from this year’s op­
erations should show a substantial surplus in excess of
the fixed dividend of 7 per cent, on the preferred and a
reasonable disbursement on the common stock.
William W. Vernon has become associated with the
Chicago banking and bond house of Porter, Fishback & Co.,
as its secretary. Mr. Vernon is well and favorably known
in local as well as eastern business and financial circles,
having heretofore been connected with a public utility
corporation of wide reputation.

TAX

EXEMPT

BONDS

W alsh Plans Not Matured.

Yielding 4.40%

(Special Correspondence to the Commercial W est.)

Chamber of Commerce, Minneapolis,
First General Mortgage 4(4% Bonds

Chicago, Nov. 2.— The plans of John R. Walsh for his
extrication from bankruptcy are no nearer a solution than
they were a week ago. With the Steel Corporation de­
barred from participating in the absorption of the Walsh
roads, there is no relief in prospect for the convicted
banker, whose plea is now before the Court of Appeals for
a rehearing of his case, with the expectancy that the
case will be carried to the United States Supreme Court
for final adjudication.
The review of the Walsh negotiations for the sale of

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Federal Reserve Bank of St. Louis

Maturing one to ten years
After making annual bond retirements the Chamber of Commerce
property will have $35,000 surplus each year derived from rental
revenue.
We own and offer the remaining $70,000 of this $200,000 issue.

WELLS & DICKEY COMPANY
Minneapolis, Minn.

Capital and Surplus $ 6 0 0 ,0 0 0

TH E COMMERCIAL W EST

14

Saturday, November 6, 19Ó9

The C o rn E x ch a n g e N a tio n a l B a n k
OF CHICAGO
Capital - Surplus Undivided Profits
ERNEST A. HAMILL, President
CHARLES L. HUTCHINSON, Vice President
CHAUNCEY J. BLAIR, Vice President
D. A. MOULTON, Vice President
JOHN C. NEELY, Secretary
FRANK W. SMITH, Cashier
B. C. SAMMONS, Ass’t Cashier
J. EDWARD MAASS, Ass’t Cashier
JAMES G. WAKEFIELD, Ass’t Cashier

$ 3 ,0 0 0 ,0 0 0 .0 0
3 ,0 0 0 ,0 0 0 .0 0
1 ,7 5 0 ,0 0 0 .0 0
DIRECTORS
CHARLES H. WACKER
CHAUNCEY J. BLAIR
CHARLES S. HULBURD
BENJAMIN CARPENTER
WATSON F. BLAIR
CHARLES L. HUTCHINSON
FREDERICK W . CROSBY

MARTIN A. EVERSON
EDWARD B. BUTLER
CLARENCE BUCKINGHAM
ISAAC G. LOMBARD
EDWIN G. FOREMAN
EDWARD A. SHEDD
ERNEST A. HAMILL

FOREIGN EXCHAN GE
LETTERS OF CREDIT
CABLE TRANSFERS

CENTRAL BANK IS A NECESSITY.
(Special Correspondence to the Commercial W est.)

Chicago, Nov. 2.— Chicago bankers are almost a unit in
demanding a central bank of issue. The solution sug­
gested for monetary ills by President Reynolds of the
Continental National bank during the convention of the
American Bankers association three months ago, has borne
good fruit. Now and then some opposition is heard from
one source and another, but it is usually biased, probably
based upon sentiment. It is said to be “ un-American,” or
the suggestion is made that it would be used chiefly for
the promotion of Wall Street’s plans, an illegitimacy
which La Salle Street believes is impossible with the
safeguards to be thrown around the plan.
In its current review of the financial situation, the Na­
tional City bank of Chicago says that the creation of a
central bank as a cure for the defects of the American sys­
tem of finance is of such importance that it offers the
following suggestions to its clients for solution:
“ The business of banking is probably as sound in this
country as in any other. Our individual banks are, as a
rule, prudently, honestly and capably managed. During
normal times they deserve and enjoy the confidence of
the public which they efficiently serve. Yet only two years
ago they practically suspended because the system— that
is the relation of one bank to all the others— had collapsed.
This occurred while there was more gold in the country
than existed in several of the other leading commercial
nations combined, and while nearly all of the twenty or
more thousand banks in the United States were sound,
solvent and in normal condition. With over $900,000,000
of gold in the United States Treasury, and several hundred
millions more in the country, we imported at great cost
about $100,000,000 chiefly from the coffers of the Bank of
England, which itself only held $165,000,000.
“ The loss on investments and to general business by
such a panic as that of 1907, is beyond computation.
When we consider that we have had several such panics
within the memory of living men, and that other and
poorer countries possess the means of avoiding such
conditions, we naturally ask what is wrong or lacking in
our financial system as compared to theirs?
“ In times of trouble our reserves scatter. Theirs are
massed. Our currency is rigid and cannot he quickly
expanded to meet an emergency. Their currency is ca­
pable of instantaneous expansion. Our chief gold reserves
are in the United States Treasury, unavailable as a basis
for such expansion. Their reserves are in great central
banks—immediately available for currency expansion. Be­
sides, under our national banking system, a bank in a non­
reserve city with deposits of, say $1,000,000 keeps 6 per
cent., or $60,000 in its own vault, and 9 per cent., or $90,000,
to its credit with a reserve city bank. In the reserve
city bank, however, the $90,000 is merely a deposit against
which it keeps an actual reserve of about $20,000. When
trouble comes, therefore, and the bank in the non-reserve
city decides to increase its cash reserves from 6 to 8 per
cent, it calls upon its reserve agent for $20,000 cash, and
when the reserve city bank has forwarded that amount,
it has parted with all the actual reserve it has belonging
to the non-reserve city bank, and it still has a deposit
liability on its books of $70,000 against which it holds
no reserve whatever.

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Federal Reserve Bank of St. Louis

“ As it is a very natural and prudent thing for banks
in non-reserve cities to increase their cash reserves by at
least two per cent, when trouble threatens, nearly all
try to do so at the same time, and the result is that the
threatened trouble becomes a reality. In short, when
financial trouble threatens in any other great country the
system provides relief and the danger is avoided, whereas,
unfortunately, with us every step we take increases the
trouble and helps it along until it is beyond control.
“ Financial stringency existed in all the leading coun­
tries in 1907. Suspension of specie-payments and actual
panic occurred only in the United States. They stopped
abruptly at our borders, and Canada and even Mexico knew
nothing of them. Manifestly, we need something! There
is little difference of opinion on that score. But when we
begin to discuss the remedy we have a wide divergence
of views.
“ Many favor asset or credit currency similar to that
prevailing in Canada. The Canadian system of asset cur­
rency is excellent when joined to the branch banking
system. But it is felt that it would be almost impossible
to apply it to a system containing thousands of individual
banks. The difficulty is that of providing adequate redemp­
tion facilities, without which the danger of currency infla­
tion could scarcely be avoided. Several schemes to meet
this difficulty have been suggested, but the best of them
seem rather unwieldy.
“ The proposal which seems to be gaining most ground
is to establish a great semi-government bank to be added
to our present system. To this bank would be transferred
at once the Government deposits now in national banks,
and later a large part of the reserves of the banks in the
central reserve, and possibly also the reserve cities. Like
everything else, the bank would have to be an evolution.
Years would pass before it would work into its proper
position and exercise its full powers. Gradually, it is
hoped, the United States Treasury could be done away
with, and the Government taken out of the banking busi­
ness. Then all Government funds would be deposited with
the central bank. Its branches would take the place of
our sub-treasuries. It would be a bank of banks, where
other banks could re-discount their bills, or borrow on
securities, receiving therefore currency to be issued by
the central bank. This currency would be partly secured
by a gold reserve, and partly by the general assets of the
bank.
“ If the $900,000,000 gold in the United States Treasury
in 1907, held against an equal amount of notes, had been
in a central bank it would have formed a sufficient basis
for the issue of an additional $900,000,000 of currency, for
fifty per cent, reserve against currency would be ample.
For such additional issue the central bank would, of course,
receive acceptable banking assets. A far smaller amount,
however, than $900,000,000 would have averted the panic.
It seems clear that such an institution would provide the
elasticity to our currency which we so much need, not
only in times of stress, but every crop-moving season.
“ There are many details which would require careful
study, but to many competent to judge, the central bank
idea seems to be the correct solution of the difficulty.
The fact that all the other important countries of the
world have adopted it ought to give it weight. Even little
Switzerland came to it four years ago, and Japan, after
adopting a system copied from ours, has established a
central bank, patterned after the Imperial bank of Ger­
many.”

Saturday, November 6, 1909

THE COMM ERCIAL WEST

15

The National German Am erican Bank
ST. PAUL, MINNESOTA
Capital, $ 1 ,0 0 0 ,0 0 0

Surplus and Undivided Profits $ 8 0 0 ,0 0 0

Deposits,
UNITED

Over Ten Millions
STATES

DEPOSITORY

OFFICERS:
JAMES W. LUSK, President
F. WEYERHAEUSER Vice Preside,A
UUJNALD S. CULVER, Vice President

H. VON DER w m R Cashier
UUSTAV C. ZENZIUS, Ass’t Cashier
M. ROY KNAUFT, Ass’t Cashier

W e invite accounts of banks firms and corporations.

Correspondence Solicited.

PROFESSOR SCOTT O N CENTRAL BANK PLAN.
Milwaukee, Nov. 1.— Prof. W. A. Scott of the School of
Commerce of the University of Wisconsin, in a discussion
of the central bank idea, at the first-of-the-season dinner
of the Sunset club, said: “ The best and only solution of
the unsatisfactory financial conditions is a central bank.
One reason is that it is the historical solution. It has
been evolved in every country of the world except the
United States. Further than that it would have been
evolved in a perfectly normal way in the United States
had it not been for Andrew Jackson and his friends.”
Professor Scott said that the financial problems which
confront the country are the outgrowth of conditions since
the Civil War. He traced the history of the national banks
and the greenback issues saying it was expected that the
national banks would cause the state banks to go out of
existence.
This expectation at one time seemed as though it would
be realized, but of late years the state banks have in­
creased remarkably until now they exceed the national
banks in number. The present currency system, he said,
is “ unresponsive” to the needs of commerce.
He said one of the difficulties in discussing this ques­
tion is that few people see the significance of the con­
nections between conditions in finance. Inelasticity is
only one of the difficulties or problems to be met. An­
other is that the machinery of currency issue is in the
hands of people who are interested in but one branch of
commerce, the branch of securities. The great reserve
banks in New York are controlled by people interested in
big railroad deals and great industrial enterprises, so the
currency of the country is used in the interest of finance
instead of commerce.
The independent treasury system is also responsible
in part, he held, for the present difficulties. Some of the
secretaries of the treasury in recent years have assumed
the position of controller of the money market.
The results as shown by statistics and investigation
are that this control had been absolutely irregular and
sporadic and a great disturbing force of a violent char­
acter, because the banking world does not know what was
going to be done.
“ The connection between the treasury department and
the money market should be severed. It is wholly bad
and ought to be modified,” said the speaker.
A U T O M O B IL E

COM PANY DECLARES
D IV ID E N D .

150 PE R

CENT.

Prof. Scott then said that the best solution is a central
bank system, which has been tried in European countries
with success.
“ It is said,” he continued, “ that you can not apply for­
eign conditions to the United States. I grant that such
analogies are dangerous. But it is well to consider that
while all foreign countries differ from one another as much
as they differ from the United States differs from them,
yet in one thing all agree and that is on a central bank.
Is not this significant? England and France are different,
yet each has its central bank. France and Russia are dif­
ferent, but each has the central bank.
“ Further than that that solution would have been in­
volved in a perfectly natural way here in the United States
had it not been for Andrew Jackson and his friends. That
does not prove anything, but is it not well to stop and con­
sider whether it would not be better to try this sooner
than try some artificial plan.”
The professor said the central banks of Europe are the
banks of issue and they are also the government banks.
The Bank of England is different from those of the con­
tinent in the issue of currency through other banks, but
England occupies a peculiar position, being able to draw
money from all other countries, London being in effect the
clearing house of the world. Every other country, how­
ever, depends on the central bank for its elasticity of its
currency, the central banks are also the reserve holding in­
stitutions of the country.
“ I can not possibly see any other solution there is,” said
the professor. “ This is a solution and a perfect one. Many
solutions have been suggested, but none of them hits all
the needs. Some, however, might be made workable.”
He granted that there might be difficulties in the way
and serious ones, but thought they could be removed. Both
the national banks and the Government might oppose the
plan on account of the Government bonds, but some meth­
od for providing a market for these bonds might be found.
“ It is said that the influence of Jackson’s time is still a
potent force. I doubt very much whether there is so much
to this as many people claim.”
If bankers and business men, he said, would realize the
advantages, opposition would fall.
"1 do not expect,” said Prof. Scott in conclusion, “ that
a central bank will come next year, or the next. Yet un­
less conditions change, I predict that the time will come
when that solution of the currency conditions of the coun­
try will be adopted.”

dividends, its present policy is to use the funds in ex­
tending tne company’s business. The company now con­
New York, Oct. 29.—
—'The General Motors Co. has de­
trols thirteen subsidiary companies manufacturing motor
clared a dividend of 150 per cent, on its common stock,
cars, motors and motor parts, and is making plans for the
payable in common stock November 15.
acquisition of others.
The declaration of 150 per cent, stock dividend on the
The operations of the company during 1909 exceeded
common stock of the General Motors Co. follows upon a
the expectations of the directors. It was announced at
recent increase in the capital stock of the company. The
the beginning of the year that 22,000 cars would be pro­
original authorized capitalization of $7,000,000 preferred
duced by the controlled companies and that the amount of
and $5,500,000 common was increased to $20,000,000 pre­
business done would approximate $25,000,000; in fact, 28,ferred and $40,000,000 common. The dividend of 150 per­
500 cars were turned out and the volume of business done
cent. consequently amounts to the distribution of a part of
was $34,000,000. It was also given out a short time ago
this new stock to shareholders.
that 40,000 cars would be manufactured in 1910 with a,
Since its organization about a year ago, the company . total valuation of $45,000,000, but already orders from
has paid dividends on its preferred stock at the rate of 7
agents have been received for 68,000 machines whose value
per cent., but no cash dividend has as yet been paid on the
will approximate $60,000,000. The strides taken in the
common. While the company, according to one of the
industry is evident .in the fact that this number was the
officers, has a substantial surplus available for common
total output of the country in 1908.
.
;

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Federal Reserve Bank of St. Louis

TH E COMM ERCIAL W EST

16

Saturday, November 6, 1909

TRUST C O M P A N Y RESOURCES AN D REVENUES.
By Edward T . Perine, President T he A u dit Co. of Ne w Y o rk , before the T ru s t Company Section of the A m e r i ­
can Bankers Association, at Chicago.

Trust companies are growing in number, in resources,
and in earning power; and an interesting question pre­
sents itself, therefore, as to what the precise measure of
this growth has been. Phases of this question affect many
trust company accounts.
With expanding aggregates of capitalization, have sur­
plus funds and undivided profits also expanded, and in
what amounts? With increasing deposits, general and in
trust, have relative cash holdings been equally main­
tained, if not established on a higher ratio? Have the
failures, and other disappearances from the lists of com­
panies reporting in former years been frequent or im­
portant, as bearing upon the aggregate position of all the
companies? Has the volume of dividend disbursements
been well sustained? Moreover, what have the effects
of the recent business depression been upon the trust com­
panies as a whole, and how completely have they rallied
from that depression?
These queries are now to be answered, in so far as
aggregates and averages of dollars and cents will show,
and answered in a manner which cannot fail to be grati­
fying to those in interest in the administration of trust
company affairs.
Tabulations have been prepared by the speaker using
the figures contained in the 1904 to 1908 editions of the
reference book before alluded to, together with the figures
shown on advance sheets for 1909, the latter having been
courteously loaned for this purpose by the publishers.
The resources, and corresponding liabilities, are as of the
date June 30th in each year; while the dividend sum­
maries are on a basis of the annual rates reported down
to December 31st in each previous year.
The tabulations show many interesting results, and
your attention is invited to certain of the totals, such as
these.
G r o w t h in N u m b e r s and in Cash Hold ing s.

There has been a marked growth in the number of com­
panies reporting. The totals are: 994 companies in 1904,
1,115 in 1905, 1,304 in 1906, 1,480 in 1907, 1,470 in 1908, and
1,496 in 1909, an increase for the five years of 502 com­
panies, which represents an increase of over 50 per cent,
since 1904.
The combined cash on hand and in bank held by the
trust companies on June 30 five years ago, amounted to
the sum of 622 millions of dollars. In the succeeding
years, down to 1908, the respective totals were 633 mil­
lions 588 millions, 637 millions, and 804 millions. On the
same date this year the remarkable total was reached of
999 millions of dollars, which sum carried with it a suf­
ficient number of odd thousands of dollars to make the
cash holdings of this year’s 1,496 trust companies only a
shade less than a round aggregate of one billion dollars.
The increase in the cash and bank accounts in 1909 over
1908 has been found to be 195 millions of dollars, an in­
crease of 24 per cent., Avhile the increase for the five years
is 377 millions of dollars, or nearly 61 per cent.
Dep osi ts B ef o re and A f t e r t h e Pa ni c.

In 1904 the trust companies were liable to their depos­
itors, general and in trust (including other trust compan­
ies and banks), in the sum of 2 billions 361 millions of dol­
lars. A year later this liability aggregated 2 billions 955
millions. In 1906 and 1907 the respective amounts were
3 billions IS millions, and 3 billions 222 millions. Then, in
1908 there occurred, for the first time in trust company
history, a heavy shrinkage in their deposit liabilities.
From June, 1907, to June, 1908, there was a contraction
from 3 billions 222 millions to 2 billions 913 millions, the
decrease being 309 million dollars, almost 10 p.er cent., and
leaving a smaller aggregate than in any year since 1904.
The total for June of this year is, therefore, a sum worthy
of especial scrutiny. In it is to be read the story of a
hoped-for recovery. In all the figures which have been
summarized there is none more satisfying, none more con­
vincing of the fact that panic conditions have been super­
seded by an era of real prosperity, than to know that with
only a slight increase in the number of trust companies—
the number reporting this year being 26 more than last
year—the total deposits for 1909 have reached the impor­
tant total of 3 billions 567 millions of dollars, an increase
of 654 millions for the year, or 22 per cent., and an in­
crease of 1 billion 206 millions for the five years, which is
an increase of 51 per cent.
In considering the various totals of deposits it is to
be observed that the percentages borne thereto by the
totals of cash on hand and in bank, taken together as total
reserve, have at no time during the five years averaged
less than 19.5 per cent., the average percentages on June
30 in each of the years having been: 1904, 26.3 per cent;
1905, 21.5; 1906, 19.5; 1907, 19.8; 1908, 27.6; 1909, 28.0; an
increase for the year of .4 per cent., and.for the five years
of 1.7 per cent.

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Federal Reserve Bank of St. Louis

The

T o t a l of Resou rces a nd

L i a b i l i t i e s in 1909.

The summarizing of the total liabilities of the trust com­
panies, and of their corresponding resources, naturally leads
into aggregates of imposing size. It is found that the state­
ments of all the trust companies reporting in 1904 showed an
accumulation of 3 billions 138 millions of dollars. The succeed­
ing years of 1905, 1906 and 1907 show 3 billions 802 millions, 3
billions 944 millions, and 4 billions 221 millions, respectively.
In 1908 there was a contraction to 3 billions 917 milions, but
the recovery of 1909 marks a great growth, the total being
the vast sum of 4 billions 609 millions of dollars. These four
and three-fifths billions of total resources and liabiities show
an increase since a year ago of 692 millions of dollars, or over
17 per cent, while the increase for five years is 1 billion 471 mil­
lions of dollars, a 47 per cent, increase.
T o t a l C a p it a l a nd Su r p lu s S u m m a r i z e d .

Considering next the figures tabulated to show total capital­
ization, it appears that the ^hare capital of the present 1496
companies is 415 millions of dollars, being an increase of 85
millions over the 330 millions of capital outstanding on the part
of the 994 companies of five years ago. The average capital
per company at that time is thus found to have been 332
thousands of dollars, yet even in the face of the great growth
which has occurred in numbers during the five years, the aver­
age trust company of today is now an institution with no less
than 277 thousands of dollars of capital.
The totals under surplus and undivided profits show growth
in a marked degree. The figure for five years ago was 379 mil­
lions; today it is 502 millions, an increase of 123 millions.
When these totals of capital and surplus and undivided
profits are united in a lump sum of liability to stockholders, it
is found that the aggregate of such liability is now 917 mil­
lions of dollars, as against 709 millions five years ago. The
same figures afford a basis of determining the average per­
centage of book value applicable to all the capital stock of the
companies, and it is found that the average book value is at
present $221.06 for each $100 of par, as compared with an aver­
age of $214.88 in the year 1904.
F i f t y M il li o n s of E a r n i n g s p e r A n n u m .

Interesting results appear in the tabulations as regards divi­
dend payments throughout the five year period. On December
31, 1903, there were 560 companies on a dividend paying basis.
The number has grown in succeeding years to 661, 777, 954
and 984, respectively. The average rate paid upon the shares
of those companies which have been dividend paying has in creased from 10.3 per cent, to 11.9 per cent., while the average
percentage of all the companies, dividend paying and nondividend paying, has increased from 7.7 per cent, to 9.4 per
cent. The total amounts disbursed each year have been com­
puted, with the result of finding that there has been a con­
stantly increasing volume of dividends in each of the past five
years. The totals so disbursed have been: 1904, 28 millions;
1905, 32; 1906, 38; 1907, 39; 1908, 39; a total of 176 millions, which
if it be taken together with the augmentation of surplus and
undivided profits, as already referred to, would show that the
revenues of American trust companies, during five years past
have been approximately 300 millions of dollars. It should be
stated that in this sum is included some element of paid in
surplus, chiefly in respect of newly formed companies, but if
this be deemed to be equal to 50 millions of dollars (a sum
which represents more than half of the amount of capital stock
of all the new companies), there would still remain an aggre­
gate of trust company revenue since the close of the year 1903
amounting to at least the sum of 250 millions of dollars.
Referring again, and briefly now, to the discussion of aggre­
gate condition. In all the statistics heretofore compiled on be­
half of the trust companies, the conclusions of the compilers
have been affected by two elements of growth, one the in­
creasing numbers of the companies, the other their increas­
ing size. It is pertinent inquiry, therefore, as to how many
concerns which were in business five years ago are no longer
in operation, what the status was at that time of the concerns
which are still in business, and what it now is, as apart from
the concerns which have been formed in the meantime. The
facts have been ascertained to be these.
W h a t is Sh o w n

by 807 “ V e t e r a n ” C o m pa ni e s .

Of the 994 companies reporting in 1904, there have been 52
failures, without subsequent resumption of business.
These
failures occurred in 26 different states, but no considerable
number took place in any one section of the country. It Is
true, however, that 37 of the failed companies were located
east of the Mississippi river, and only 15 beyond. The total
resources of these 52 companies are found to have been 64
millions of dollars, or only about 2 per cent, of the aggregate
of all the companies for 1904.
There were, in addition, 91
companies which are now reported as being no longer in trust
company business (having in most instances become national
or state banks), together with 23 companies whose statements
have not been obtainable this year.
These disappeared and
non-reporting companies represent only 50 millions of total
resources. The remaining companies, inclusive of 21 mergers,
number 807.
These are the survivors, the veterans, so to
speak, of the trust company army. A summary of their aggre­
gate position, contrasted with the corresponding aggregate for
1909, reveals striking conditions of past growth and present
strength.
These 807 “ veteran” companies had, on June 30, 1909, stock
and bond investments of 978 millions of dollars, an increase
over 1904 of 264 millions.
Their loans, including mortgages,
and their bills receivable amounted to 2 billions 38 millions,
an increase of 468 millions. Their cash on hand and in bank
amounted to 897 millions, averaging over a million dollars per
company, and showing an increase in total holdings, as against
five years ago, of 293 millions.
Their real estate, banking
houses, safe deposit plants, and furniture and fixtures accounts,
totaled 117 millions, an increase of 37 millions. Similarly their
capital stock showed an increase of 19 millions, being now 320
millions.
Their surplus and undivided profits showed an in­
crease of 99 millions, being now 468 millions. Their deposits
increased during the five years 883 millions, an average of
over a million dollars per company, the present total being 3
billions 174 millions.
In aggregate resources and liabilities
these 807 companies now hold 4 billions 72 millions, «an increase
of 1 billion 48 millions for the five years. This aggregate of 4
billions 72 millions represents 88 per cent, of the 4 billions 609
millions of aggregate trust company wealth of the country,
the remaining 12 per cent, being held by 689 companies or­
ganized within the five years, or not reporting in 1904, and
now showing as their share of the total wealth 536 millions, or
somewhat less than one-eighth of the whole.
Add to this the fact that the companies which are five or

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

17

Located at MINNEAPOLIS,
the portal to a rapidly developing empire, the

NORTHWESTERN
NATIONAL BANK
*

in situ a tion and stren g th ,
is th e ideal re s e r v e a g en t f o r ban k s b e y o n d th e M ississip p i

Capital and Surplus
Total Resources

Five Million Dollars
Thirty-Seven Million Dollars

more years old disbursed in dividends during the calendar year
1908 upwards of 35% millions of dollars, or over 90 per cent.
of_ the aggregate dividends of all the companies, and it is a
fair claim to make on behalf of these 807 companies of five
years ago, and of the present, that they have recently es­
tablished a record for growth, and for earning capacity as
well, unequaled by the accomplishments of any similar number
of financial institutions anywhere during an equivalent period
of time.
A

Contrast

w ith

N ational

Bank

Fi g u r e s .

The growth of the trust companies since 1904, enormous as
regards the older institutions and substantial in the case of the
newer ones, is clearly proven by the summaries made of each
year’s figures. W ith a volume of wealth nearly approaching
5 billions of dollars, the entire number of trust companies are
approximately equal in size to the national banks of ten years
ago, the fact being that 3,583 national banks reported on June
30, 1899, to the Comptroller of the Currency that their total re­
sources and liabilities were 4 billions 708 millions, or only 99
millions of dollars more than the total wealth of the trust
companies of today. During five years past the percentage of
increase in the total resources of the national banks has been
42 per cent., that of the trust companies 47 per cent. Today
the deposits of the trust companies, exclusive of amounts due
other banks, are a sum approximating 70 per cent, of the same
liability on the part of the national banks; while the total re­
sources of the country’s 1,496 companies are nearly 47 per
cent, of those of the country’s 6,926 national banks.
The entire record is a gratifying one. The figures, and in
particular those of the present season, are a demonstration of
the strength and stability of the corporations here represented
at this convention time. In this fact there is reason for much
congratulation, there is cause for every encouragement. May
the growth and abounding success of the trust companies con­
tinue in other years-—and always!

THE

ROGUES’ GALLERY.

M i n e r a l P o i n t A f f a i r G r o w s W o rs e .

Milwaukee, Nov. 1.— The deposits in the First National
bank of Mineral Point, Wis., should have been given as
$800,000 instead of $579,000. This was the statement made
by R. W. Goodhart, special bank examiner, who discovered
the defalcations of Phil Allen, Jr., and, on the failure of the
directors to come to the rescue, closed the bank.
Mr. Goodhart was in Milwaukee for a few hours on his
way to appear before the grand jury in La Crosse. It is
expected that soon after his appearance before the jury
an indictment will be found against Allen.
Mr. Goodhart’s statement that there was several hun­
dred thousand dollars more of deposits in the bank than
was given on the books was based on the discovery of
bank receipts given for money deposited with Allen, and
for which the bank is liable. They already amount to
$200,000 and are still coming in.
Examiner Goodhart says the defalcation was discovered
when he charged Allen with having two notes with forged

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Federal Reserve Bank of St. Louis

signatures. The bank man then admitted, says Mr. Good­
hart, that he was a defaulter and forger.
Before the interview ended Goodhart had discovered
$90,000 in forged paper that Allen admitted, he says, was
forged.
S a f e k e e p in g a M o c k e r y .

Washington, Nov. 1.— Safekeeping was but a mockery
at the First National bank at Mineral Point, Wis., accord­
ing to the latest details received in reports to the Comp­
troller of the Currency.
A report just received says that a package of envelopes
left with inclosures by about fifty persons for safekeeping
at the bank had been found minus their contents.
What was in the envelopes is unknown.
In d i c t T w o

Officials.

Norwalk, Ohio, Nov. 1.— The grand jury today returned
two joint indictments against James G. Gibbs, former
president, and former Congressman J. F. Laning, who was
vice president of the defunct Ohio Trust Co., one against
F. W. Christian, former secretary of the bank; one against
James G. Gibbs, and one against D. Kies, former treasurer
of the defunct Norwalk Savings bank.
Dem ands

Bank

R ece ive r.

Guthrie, Okla., Nov. 1.— George H. Anderson of Rose­
ville, 111., has asked the Federal circuit court here to ap­
point a receiver for the defunct Columbia Bank & Trust
Co., which closed its doors in Oklahoma City Sept. 29.
Anderson also demands a temporary injunction to prevent
State Bank Commissioner Young from paying out the
bank’s funds or disposing of its assets.
Anderson alleges his claim against the bank for $3,727,
representing a deposit, has been refused, while other de­
positors have been paid in full.
More than a half-million dollars contributed by state
banks under the deposit guaranty law has been used in
paying depositors.
There remains more than $400,000 in deposits to be
paid, with $1,123 in cash on hand to pay them, though suf­
ficient assets, apparently, are available to provide for the
remaining deposits.
Cashier

F o un d G u il t y .

Pittsburg, Nov. 1.— A federal jury in the trial of David
J. Richardson, former cashier of the now defunct Cosmo­
politan National bank, today brought in a verdict of guilty
on twenty-four of the twenty-six counts in the indictment.
Richardson was charged with misapplication of bank funds
the making of false reports to the Comptroller of the Cur­
rency, and the making of false entries in the bank books,

TH E COMM ERCIAL W EST

18

Saturday, November 6, 1909

G R O U P FIVE MEETS AT W A U K E S H A .
(Special Correspondence to the Commercial W est.)

Waukesha, Wis., Oct. 29.— The fourth annual meeting
of Group 5 of the Wisconsin Bankers association was held
at Waukesha, October 29. There was a good attendance,
the register showing nearly 100 present. There is no
doubt as to where the bankers of southeastern Wisconsin
stand on the deposit guaranty question. After hearing
Mr. Ilsley’s report of his trip to Oklahoma to inspect the
workings of the law there, the following resolution was
adopted:
Resolved, That in view of the recent decision of the United
States court for Nebraska against the constitutionality of the
guaranty deposit law, and ia view of the involved situation in
Oklahoma at the present time, it is the sense of the bankers
of Group No. 5 that it would be inadvisable for Wisconsin to
adopt such a law until the constitutionality had been passed
upon by the United States Supreme court, and until such a law
had been more fully tested in those states which now have the
law in operation, and that, therefore, we suggest to the com­
mittee on legislation of the Wisconsin Bankers association,
that they request the governor to refrain from submitting the
question of a guaranty deposit law for Wisconsin to the pro­
posed special session of the legislature.
Lo a n s on Real

Estate.

In addition to this the hankers of group 5 declared in
favor of permitting national banks to make loans on real
estate. This resolution was:
Resolved, That Group No. 5 request the State Bankers a s­
sociation to take some action looking to the amendment of the
national banking act so that national banks might be allowed
to loan a certain portion of their deposits (at least 20 per cent.)
on real estate security.

The first address of the meeting was by F. W. Thomp­
son, manager of farm loan department, Merchants Loan
& Trust Co., Chicago, who spoke on farm loans as bank
investments.
The farm mortgages discussed hy Mr.
Thompson were first mortgage liens on farm property in
settled sections of the country. Speculative investments,
he said, were not within the province of the bank. As
to income investments, the first thing was safety. There
was no ruinous competition in the farmers’ business.
Therefore, such investments in the aggregate were good.
In farm loans banks were sure of interest and princi­
pal in most cases, as there were few failures to meet
either from farmers.
Secretary George D. Bartlett, of the State Bankers
association, in response to the subject, “ Let George Do
It,” offered a few suggestions as to how the bankers of
the state could assist in building up the membership.
These included joining themselves, then getting others
to join, then attending the group and state meetings and
never allowing interest to lag.
The address of J. K. Ilsley, who represented the W is­
consin Bankers association on the Oklahoma inspection
trip of the banking committee of the legislature, covered
the subject of deposit guaranty as practiced up to date
and was given close attention. The address is printed
elsewhere in this issue, also the brief address of Attorney
A. E. Matheson of Janesville, on some legal points of
banking practice.
M r . R o b e r t s on t h e C e n t r a l B a n k .

At the afternoon session the Central Bank plan was
explained in detail by Geo. E. Roberts, president of the
Commercial National bank of Chicago. After reminding
his hearers how the trouble of 1907, with its suspension
of cash payments, had shown the weak spot in our hank­
ing and currency system, he made it very clear that the
remedy proposed, a Central bank, would in no way inter­
fere with the present independent hank and its relations
with the public. The banks as a rule in the smaller
towns would continue the same relations as at present
BOSTON

S A V IN G S BANKS.

Boston, Oct. 29.—Treasurers of the various Boston sav­
ings banks, representing a majority of the hanks and more
than two-thirds of the deposits, have unanimously voted
that in the future Boston savings banks will not purchase
county, city and town notes unless the validity thereof
shall have been certified to by some financially responsible
institution. This action of the savings hanks is a direct
outcome of the recent revelations in connection with is­
sues of spurious paper of the town of Framingham.
O FF IC E R S

OF

OREGON

BANK

ARRESTED.

Portland, Ore., Oct. 27.— On warrants charging them
with “ receiving money when the bank was insolvent,”

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Federal Reserve Bank of St. Louis

with their city correspondent and the national bank notes
could be continued without any change. His idea of a
Central bank is one that would give unity to the present
system, conserve the scattered reserves of the country
and supplement the present rigid currency system with
one that would expand and contract automatically. The
business of this Central bank would be entirely with other
banks, not with the public and in no way competing with
other hanks. It should be owned and managed by the
bankers of the country under the supervision of the
Government. In a general way this is the plan of our
present national banks.
In replying to the objection raised by some to a central
bank, that political influence might be a menace to its
right management, Mr. Roberts pointed out the present
situation in our independent treasury. Here we have one
man, filling an appointive office, with supervision of our
national finances and with hundreds of millions of dollars
to distribute in national depository banks-. He was cer­
tain that the political interference with a Central bank
as proposed would be nothing as compared with the
present disturbance of the money market by the Secretary
of the Treasury. Such a bank would forever prevent any
such situation as we witnessed in 1907. It would do for
us what the central banks of foreign countries have done
for other nations. One thing it would insure, “ that there
would always be money to be had by solvent borrowers
at some rate.” He contrasted our experience of 1907,
when it took months to add $100,000,000 of gold to our
money supply, to the recent action of the Reichsbank of
Berlin of putting out $140,000,000 of additional bank notes
in less than a week, and without the slightest disturbance
to business. About five weeks ago the discount rate oi
the Bank of England was 2% per cent., now it is 5 per
cent. This is the scientific , way, the natural way, to
control the situation. Under our system when a pinch
comes we call in loans, which makes conditions worse
instead of better and under unusual stress, as in 1907,
we quit business altogether.
In establishing such a Central bank we would pro­
vide a fiscal agency for the National Government, such as
all other commercial nations now have. This in itself
would be a distinct gain and would no longer see the
Secretary of the Treasury coming to the relief of the
money market. Mr. Roberts has sufficient faith in the
business ability of American financiers to believe that
we could do what any other nation has done, and have
a large Central bank rightly managed to protect the
general business situation.
E n tertainm ent

Fe a t u r e s .

An automobile ride about the city during the after­
noon and a banquet at the Resthaven hotel in the evening
were the entertainment features of the program. Presi­
dent Lombard of the Exchange National bank of Mil­
waukee acted as toastmaster at the banquet. In the
absence of Mr. Jeffres, of Janesville, A. J. Frame, of Wau­
kesha, spoke briefly on the Postal Savings bank question.
T h e Officers.

The following officers were elected for ensuing year:
President, C. R. Carpenter, Racine; vice president,
W. H. Sleep, Waukesha; secretary-treasurer, Charles
Hawkes, H oricon; memb/ers of executive committee, George
L. Pullen, Evansville; S. M. Smith, Janesville; member of
nominating committee state association, F. E. Woodard,
Watertown.
Walter H. Moore, Henry Moore, E. E. Lytle, Leo Friede
and W. Cooper Morris, of the defunct Oregon Trust &
Savings bank which failed here August 20, 1907, were
placed under arrest late today.
Although the affairs of the bank have been under in­
vestigation by the county grand jury, the arrest came as
the result of a complaint sworn to by Abraham Hinkle of
Corvallis, Ore., one of the depositors in the hank.
Detectives notified all the defendants except Lytle, who
surrendered himself, and all made their appearance be­
fore Municipal Judge Frank E. Bennett, who fixed their
bonds at $5,000 each.
Walter PI. Moore was president and W. Cooper Morris
was cashier of the defunct bank, while Friede, Lytle and
Henry Moore were directors.

Saturday, November 6, 1909

19

TH E COMM ERCIAL W EST

The

First National Bank
o f Minneapolis

*

Capital
Surplus
Deposits

$ 2 ,0 0 0 ,0 0 0
2 ,0 0 0 ,0 0 0
2 2 ,0 0 0 ,0 0 0
OFFICERS

F. M. PRINCE, President
D. MACKERCHAR, Ass’t Cashier
C. T. JAFFRAY, Vice-President
H. A. WILLOUGHBY, Ass’t Cashier
GEO. F. ORDE, Cashier
GEO. A. LYON, Ass’t Cashier
P. J. LEEMAN, Ass’t Cashier

G U A R A N T Y OF DEPOSITS UNDER O K L A H O M A LAW.
Address by J. K. Ilsley, President Marshall & llsley
In discussing this question, a banker is often accused of
being actuated by self-interest and without due regard for
the public welfare. This, if so, would be short-sighted on his
part, for, in truth, the banking business prospers only when
general commercial and financial conditions are sound, and
on the contrary, it suffers when the public meets with m is­
fortune.
If it could be shown that a deposit guaranty law
was for the public good, I for one Avould be ready to say that
the seeming injustice of making one set of men pay for the
losses of another set, over whose actions they have no control,
must be disregarded. But there’s the rub; my contention is,
and it is my firm* belief, that not only is the principle abso­
lutely wrong, but that in practice such a law will bring disas­
ter to the entire community. This is being shown at the pres­
ent time in Oklahoma, and I propose today to give you, as
far as possible without prejudice, some account of conditions
in that state.
W i s c o n s i n C o m m i t t e e Goes to O k l a h o m a .

As is well known, the last W isconsin legislature appointed
several special committees, one of them a committee on banking,
particularly charged with the duty of investigating the princi­
ple of the guaranty of bank deposits. Oklahoma being the only
state where such a law has been in operation for any consid­
erable time, the committee decided to go to that state and
obtain direct information on the subject. _ The Wisconsin Bank­
ers association received from the committee a courteous invi­
tation to send one or more representatives, and I was asked
by the officers of the association to go with the committee.
C. W . Rhodes, the committee’s secretary, went to Oklahoma
a day or two in advance, and made arrangements with several
members of the state administration, including Bank Commis­
sioner Young, and with a number of leading bankers and busi­
ness men to appear before the committee and give their views
on the guaranty law.
Unfortunately, or possibly fortunately
for the success of our investigations, these plans were consid­
erably upset by the failure, almost coincident with our arrival,
of the Columbia Bank & Trust Co., the largest bank in the
state.
R e m a r k a b l e G r o w t h of D ep os its Due to G u a r a n t y

Law.

This institution, within a year’s time, had experienced a
phenomenal growth, the deposits having increased from $360,000 to the neighborhood of $2,800,000; and that this startling
gain in so short a. period was largely due to the guaranty law
no one familiar with all the facts could possibly doubt. It had
been treated with special favor by the state administration, but
aside from this, all sorts of reckless methods had been used
to gain business, many of them contrary to the express pro­
visions of the banking law. Few, perhaps, knew of these practices, but those who did seem not to have been greatly alarmed,
for no matter what happened, they believed the deposits would
have to be paid by the other banks, if perchance failure should
overtake this particular institution. Depositors seem to have
been lulled by the foolish idea that it was none of their con­


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Federal Reserve Bank of St. Louis

Bank, M ilw aukee, Before Group 5, Wisconsin Bankers.
cern, and that anything and everything might be done, whether
in accordance with sound banking or not. There was consid­
erable consternation nevertheless in Oklahoma City on W ednes­
day morning, September 29, when there appeared in the press
the following official statement:
The state bank commissioner and the state banking
board met tonight to consider the condition of the Co­
lumbia Bank & Trust Co. The lack of specific informa­
tion and detail renders it impossible at this time to make
an exact statement, but sufficient is shown to know that
the capital is impaired so that on liquidation the stock­
holders may realize »ery little. Also that the bank has
loaned far too great a proportion of its funds, so that its
supply of cash unreplenished is inadequate to meet de­
mands of business or meet the requirements of law.
Therefore the state authorities have taken charge and
will open for payment of depositors as usual. Bring your
books and in cases of mutual account be ready .to pre­
sent claims. Contested or disputed claims will also re­
ceive prompt attention.
The state board also authorized the levy of threefourths of 1 per cent., if needed, to meet immediate
demands sooner than collection of bills receivable pro­
duce the cash. If the first appearance of assets is cor­
rect this levy may not be required, at most only part
The commissioner declined to state whether the fight
on the state banking law by its opponents centered on
this bank with a club effectively used or not, simply
saying the facts will develop as time progresses. W e will
soon know all the details.
Roy Oakes, Secretary State Banking Board.
This certainly was a disagreeable surprise, but people gener­
ally put on a bold front and said, jokingly yet with a certain
bravado, that the closing of the largest bank in the state _had
been arranged to show the Wisconsin committee how nicely
the guaranty law would work.
In one particular, and one
only it may be said to have worked well. The usual frantic
rush of depositors attendant upon a bank failure did not take
place. W hen I passed the bank the first _ morning there was
little excitement on the outside, Lind inside, in ll somewhat
spacious lobby, one or two hundred persons were patiently
waiting to draw their deposits. Apparently, they were being
paid in an orderly manner, as provided by law in case of fail­
ure
That evening and the following morning the papers were
iubilant
The largest bank in the state had failed, and yet
there was little excitement; and the depositors were receiving
their money as fast as they could present their claims.
Law

D e c la r e d a Success.

The law was declared an unqualified success.
The usual
isurances were given, as is common in such cases, that adtional capital would be furnished and that it would be a
after of a few days only before the old management would
> reinstated and would continue business at the old stand,
hese promises continued daily in the most of the Oklahoma

20

THE COMM ERCIAL W EST

A
South
Dakota
Banker
Writes,

Saturday, November G, 1909

“W e enclose our draft for $5, to pay
for ‘200 Bank Ads That Bring Busi­
ness.’ After a careful examination of
the book I am convinced that it is
worth many times the price for the
busy Bank Cashier who is usually
the ad-writer in the country bank.”

#

This is the opinion of nearly every banker w ho
has examined the 1910 service

i

200 BANK ADS THAT BRING BUSINESS.
Sent on five days approval.

Price $5.

Write today.
Address: H .

B. C R A D D I C K , Bank Adv. Dept.

COMMERCIAL W EST, MINNEAPOLIS.
THE SERIES

YO U NEED.

City newspapers during the balance of the time the committee
was in Oklahoma City, and if there had been no other sources
of information one might have supposed that the affair really
was not of great consequence and would be speedily settled to
the satisfaction of everyone.
A nother

Side.

T H E c T seems ,to me that it is now going on in Oklahoma.
W ‘ th the exception of a few independent newspapers scattered
through the state, which are trying to give the true facts, the
aclministration and a considerable portion of the press seem to
be m league to misrepresent and deceive the public.
IT É law was orteinally passed as a political measure and
m deference, it is said, to the wishes of William J. Bryan. He
persuaded Governor Haskell that it would be a good thing to trv
the experiment in Oklahoma and that it would be a popular
measure and a vote-getter. The first session of the legisla­
ture, after Oklahoma became a state, met December 1, 1907.
rhe guaranty law was introduced and recommended for passage
about the 16th of the same month, and within a day or so with
little or no discussion, was passed, and the legislature ad­
journed for tne holidays on December 20.

However, there was another side to the picture, and I
quickly discovered on calling at a number of banks on the day
following the failure that while the smaller depositors in the
Columbia bank, who appeared in person, and who otherwise
would have _ been likely to create disturbance, were being
promptly paid, the drafts of country correspondents, and the
larger deposits evidenced by certificates of deposits, were being
refused. On the second morning I learned that the other city
banks already held collections on the Columbia bank, amount­
ing to several hundred thousand dollars, which had been pro­
No G e n e r a l D e m a n d f o r t h e L a w .
tested for non-payment. Of course, this could not be other­
I was told that there had been no agitation or general de­
wise. The money simply was not on hand to pay the larger
mand for such a law, but that the people having been fright­
claims.
It became current _ gossip that Bank Commissioner
ened by the panic of October and November, 1907, were ready
Young, realizing the impossibility of making immediate pay­
to accept any financial nostrum offered them. The law havingment, wanted to keep the doors shut for a few days, at least
been placed upon the statute books bv the efforts of Governor
until the true situation could be determined, and some of the
Haskell and his followers, it became incumbent upon them to
bank’s assets and the guaranty fund could be turned into
carry it out, no matter what methods had to be resorted to
money; but not so Governor Haskell, who, at the first sign of
The reason, therefore, is apparent why the state administration
trouble, had come down from Guthrie and had assumed personal
is now making frantic efforts to extricate themselves from a
charge of the situation. “ The bank,” he said, “ must be opened
most trying situation. The Oklahoma law certainly seems to
without delay and the depositors paid forthwith, as provided in
have been loaded with political dynamite, and its explosion
the law.” Seemingly, it made no difference in his mind whether
will be likely sooner or later to be the end of Governor H a s­
there was anything to pay with or not; a show must be made,
kell politically. I suspect that if he were to tell the truth to
the public must believe that the guaranty law was a success.
any political friend he would strongly advise him not to
If Bank Commissioner Young did not want to do as directed,
monkey with a guaranty law.
his resignation would be accepted. Bank Commissioner Young
Results.
made a virtue of necessity, and commenced payments, as al­
ready stated.
Now it is possible that in the case of the Columbia Bank &
I rust Co. all depositors may be finally paid; I, of course, do>
So far as I have been able to learn this situation has con­
not know how the bank’s assets will “pan out” and what may be
tinued up to the present time. The individual depositors have
the final result. Enough is known, however, to show that the
been practically paid off, and a few of the certificates held by
guaranty law, so far as paying depositors at once, as contem­
people outside of the state, and which had to be provided for
plated. is an absolute failure. Furthermore, it is a fair infer­
to prevent suits in the federal courts, have been gotten out
ence that the law has produced unsound banking conditions in
of the way. This was the case of a certificate for $25,000 held
Oklahoma, of which more evidence is likely to come to the
by an insurance company in Chicago. Payment having been at
first refused, action was brought in the United States court ; surface in the near future. When it does, where will be the
guaranty fund to meet the situation? It has been inadequate
and a receiver was asked for on the ground that there had
in the present instance, and it will likely be altogether want­
been discrimination in paying depositors by the Oklahoma
ing in the next case.
The state bankers of Oklahoma who
banking board. To stop this suit the claim was paid.
have been compelled already to pay one special assessment
As a side light on some of the methods of W . L. Norton,
now see what it means to be unexpectedly called upon to pay
president of the Columbia hank, it is interesting to know that
others peoples’ losses caused by reckless and foolhardy bank­
this particular $25,000 certificate held by the insurance com­
ing. Already one state bank, the Farmers, of Oklahoma City,
pany was not only guaranteed by the general law, but, in ad­
has been converted into the national system, and I learn that
dition, was guaranteed personally by W . L. Norton, and by a
there are others which will follow suit. Some which denation­
guaranty bond of a Kansas City trust company, the premium
alized when the guaranty law was first passed are now con­
on which had been paid by the Columbia bank. The special
sidering changing back to the national system. They find that
inducement to the insurance company, I understand, was 6 per
the more rapid growth of deposits in the state banks as com­
cent, interest. The bulk of the deposits due to country banks,
pared
with the national banks, which caused their previous
and amounting at the time of the failure to about $1,300,000, I
action, is not always an unmixed blessing. The investing of
believe has not yet been paid.
suddenly enlarged deposits is not an easy thing for officials
A t t e m p t to M a k e B l a c k A p p e a r W h i t e .
accustomed to loaning moderate amounts only. In fact, this
seems to have been one of the reasons for the undoing of the
It has been thus far impossible to ascertain the exact state
officers of the Columbia bank. W hat will be the result of these
of things, as the officials in charge of the bank have absolutely
changes?
Thè strongest and best state banks will get out
refused to make known many important facts which the public
from under the law, and leave the weaker ones to guarantee,
generally, and the depositors in particular, have a right to
know. If ever there was an attempt to make black appear
i
(Continued on Page 35)


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Federal Reserve Bank of St. Louis

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

21

S E C U R IT Y
NATIONAL

BANK

MINNEAPOLIS
A L L T H A T THE N A M E IM PLIES

MR. FRAME DISCUSSES N A T IO N A L RESERVE BANK.
In a paper recently prepared by Andrew J. Frame,
president of the Waukesha National bank, Waukesha, Wis.,
the writer insists that the general banking system of the
United States is all right as regards commercial banking
and superior to all foreign systems. He admits, however,
that we lack the necessary control which a central re­
serve bank has. Continuing, Mr. Frame says:
What, therefore, is lacking in the United States? We
must concede the lack of elasticity in our currency issues.
In many sections where capital is abundant and crops are
diversified, banks rarely know when they move, but we
must concede that at times in some sections where sur­
plus capital is not abundant and crops are confined close­
ly to one staple, that inconvenience is borne in their
movement, both locally and in the great centers, from
whence comes help at periods of greatest activity. We
must concede that when panic threatens and pyramid
banks burst we have no reservoir from which to quench
the threatened conflagration, thus preventing cash sus­
pensions. When this calamity occurs, labor is thrown
out of employment; the wheels of commerce are stilled
and general paralysis results. What is the remedy?
It is cash that kills panic when confidence is shaken,
as was proved conclusively when the Bank of England
illegally on several occasions opened the flood gates of
her issue department to enable the banking department
to “ loan freely to solvent parties” that the wheels of
commerce be not stilled. History says, widespread relief
was almost instantaneous. While we were floundering in
the slough of despond in 1907 under cash suspensions, al­
though Germany was in as greatly an expanded condition
as to credits as we were, yet the great Imperial bank of
Issue loaned its 5 per cent, taxed, extraordinary interest,
generously to solvent parties at high rates of interest,
and in so doing brought relief to Germany, without ex­
periencing the collapse felt in the United States.
Clearing house certificates have on several occasions
ameliorated our condition, but they come after confidence
has collapsed. The Aldrich-Vreeland bill, I have no doubt,
would prevent cash suspensions notwithstanding much
shallow adverse criticism. As the bill was passed as a
temporary measure, that a more comprehensive one might
follow; as the country generally is seeking light that 1

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Federal Reserve Bank of St. Louis

permanent good may come, why not adopt the world’s
proved best method (,barring the branch banking feature
as entirely unnecessary and which will not be tolerated
in the United States) to wit:
A

National

R eserve

Bank.

1st. Capital, say $100,000,000.
2nd. Ownership. To popularize the measure, take vol­
untary subscriptions of national and state banks of the
country in sums of not less than 5 nor more than 10 per
cent, of the capital of each. Any stock not taken vol­
untarily by banks, should then be offered to the public,
but in no case should any bank or individual acquire or
hold in excess of $250,000, (or less if thought best) of such
stock in order to prevent monopolistic control. I see no
reason for the government to contribute, because without
it political interference would be practically eliminated.
3rd. Management. To what extent should the govern­
ment control?
An honorary board of 25 directors, without pay except
for expenses and $10 to $25 per day attending quarterly
or semi-annual meetings. Six to go out each year, thus
making service four years each. The secretary of the
treasury to be the 25th. Directors to elect the president,
vice presidents and active heads for terms of not less
than 10 years each, preferably for life. Other officials,
etc., appointed in the usual manner. No officer or direc­
tor to be eligible who has not actively served at least 10
years as an officer or director in a national or state bank
in the United States. The 24 directors to be elected as
follows: At each annual state bankers association conven­
tion, a nomination of one director should be made on a
majority vote as cast by its stockholders in the state,
either in person or by proxy. All nominations to be listed
by the reserve oank and mailed to each stockholder of
record, 30 days in advance of the annual meeting. The
six having the highest number of votes cast to be elected.
Politics would thus be fully eliminated.
The controller of the currency to have the same sup­
ervision as over national banks.
4th. Business, how obtained?
If it is thought best not to abolish the present United
States Treasury system (probably an impolitic thing to
attempt to do) then have all the surplus funds of the gov­
ernment, in excess of daily normal requirements, deposit(Continued on Page 45)

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

22

Surplus, SI,OOO,OOO.00

Capital, $ 5 0 0 .0 0 0 .0 0

Undivided Profits, S2 5 0 ,0 0 0 .0 0

F I R S T N A T I O N A L B A N K , Duluth, Minn.
UNITED STATES DEPOSITORY

A. L. Ordean, President
David Williams, Vice Pres’t
J. H. Dight, Cashier
W. J. Johnson, Ass’t Cashier
W. W. Wells, Ass’t Cashier

Out-of-town accounts are accepted on favorable terms, and every accommodation consistent with
prudent banking is accorded depositors. Prompt attention given collections and financial matters.

BANK ADVERTISING DEPARTMENT.
E D I T E D BY H. B. C R A D D I C K .
THE

TALLY.

By R ic h a r d Lo rd.

It isn't the job we intend to do
Or the labor we’ve just begun
That puts us right on the ledger sheet;
It’s the work we have really done.
Our credit is built upon things we do,
Our debit on things we shirk,
The man who totals the biggest plus
Is the man who completes his work.
Good intentions do not pay bills;
It’s easy enough to plan.
To wish is the play of an office boy;
To do is the job of a man.
T A L K S ON S A V I N G NO. 3.

For several months we have been talking to you re­
garding our Savings Department. There must be some
reason why you have not taken advantage of our offer to
pay you FOUR PER CENT. INTEREST on your idle
money.
IT IS NO TROUBLE to open a Savings Account. You
do not even need to come to the Bank. Simply mail us a
check, with a word or two saying you wish the money to
draw interest. The same day your letter is received we
will mail you a Pass Book. Your money begins to earn
interest for you AT ONCE.
Your money will be SAFE. Our Capital of $50,000.00,
our Surplus of $10,000.00, the Stockholders’ Liability of $50,000.00 more, and our Resources of $235,000.00 PROTECT
YOU absolutely against loss.
IT IS EASY TO DRAW YOUR MONEY OUT again if
you want to use it. You have only to send or bring your
Pass Book to the Bank, and say you want your money.
You will receive it IMMEDIATELY, with whatever inter­
est it has earned.
We offer you three things.
First, ABSOLUTE
SAFETY for your money. Second, COMPOUND INTER­
EST at the rate of four per cent, on every dollar deposited.
Third, YOUR MONEY BACK whenever you want it.
You can open an account with a SINGLE DOLLAR, or
with any larger sum you wish to deposit. Small deposits
soon amount to a considerable sum. A deposit of $2 a
week for five years will amount to $585.00, and of this
amount $65.00 is interest.
DO NOT CHEAT YOURSELF out of what rightfully
belongs to you, but make your idle money work for you.
A prominent retail merchant of Iowa in discussing ad­
vertising and its relation to business, says:
“ I am a firm believer in the generous use of printers’
ink. I attribute to a very large degree what little suc­
cess I have made in business largely to two things: First,
effective advertising that brought people in my store, and
second, the fact, that I delivered the goods when they came
according to the advertisement.”
❖

*

*

“ I have frequently thought that my business was a
sort of a mushroom business— in other words, it has grown
out of proportion to my surroundings. It is a sort of a
high pressure business. That is to say, that through
strong advertising and keeping continually at it I have
gotten to a point where advertising has become an abso­
lute necessity to keep it at that point. I am firmly con­
vinced of this and I believe that my advertising is directly
responsible for the size of the business and I thoroughly
believe that if I would discontinue advertising for a single
year that my business would decrease 30 to 40 per cent, in
volume.”
❖

*

❖

“ If I were going to locate in a new town today, one of
the first things that would command my attention would

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Federal Reserve Bank of St. Louis

be the newspaper facilities of that town. I consider ad­
vertising as necessary in a retail business as clerks, and
that the right kind of advertising will not only make clerks
a necessity but it will make more clerks necessary. I
have always thought that the newspaper was one of the
least appreciated of any of our local enterprises; that more
is demanded of them and that the services which they
render are more grudgingly paid for than perhaps any
other institution in the community. They do more to ad­
vertise more free public service than any other enter­
prise we have. They are entitled to the support of the
merchant; they are entitled to his job work from a stand­
point of patronizing home industry and they are entitled
to the advertising of every merchant in their town from
the purely selfish standpoint of the merchant himself.”
Merchants— and bankers— sometimes judge the power
of advertising by the personal qualifications or political
views of the local editor. This is about the narrowest
view one could take in the matter. The question of cir­
culation is the one to be considered. The space you buy
in the local paper is yours. The manner in which the
space is used reflects on you— not on the editor. If you
are refusing to advertise in the local paper because of polit­
ical or personal differences, both you and the local paper
are losers— but you lose dollars where the editor loses
cents.
#
❖
*
sjc
I knew a grocer who advertised only in the paper of his
political faith. He had a very fair business, for men of
all parties read the paper in which his advertising ap­
peared. But one day the editor died, and within a year
the paper also passed away through mis-management on
the part of the new owners. Then it was that the grocer
ceased to advertise—he was a radical partisan and would
spend no money with a paper who opposed his political
views. In just three years he closed up his business and
quit. He didn’t sell out. He could not, for his books
showed a loss for every day of the previous eighteen
months. Meantime, another grocer had entered the field
and was doing a thriving business,— but he advertised.
This is a true story and only illustrates in a small way
the power of advertising. But the ridiculous thing about
it all, to me, was that when this political grocer decided
to discontinue business he arranged to auction off the
stock, fixtures, cases, etc., even to a large fireproof safe,
and, proceeding as any other man of business would, AD­
VERTISED the auction in the paper of opposed political
views. There’s nothing more to tell except that in two
days he had sold everything. The moral would therefore
seem to be that politics will not take the place of adver­
tising.
IN S T A N C E S

FOR

S A V IN G

S a v in g s

ARGUMENTS.

Lost.

Chicago, Oct. 14.— The loss of another man’s all, the
savings of years which he feared to entrust to a bank has
hit a Chicago cigar maker. Lewis Stiers had saved $450
by years of frugality with the hope that some day he would
have a cigar factory of his own. He carried his savings in
his sock, and the very day he set out to buy his factory
the bills slipped through a hole in the stocking and were
scattered along the street for a mile or more.
*

*

*

Ri sks L i f e f o r Sa v in gs .

Minneapolis.— To save a roll of bills amounting to $562
from fire recently, Isaac Diamonds, „who owns a dairy at
Twenty-ninth avenue northeast and F street, endeavored
to enter his burning home. He was prevented by fire­
men.
A few minutes later, the roof fell in, and the structure
was a mass of flames. If Diamonds had not been prevent­
ed from entering the building, he, no doubt, would have
perished.
Diamonds was downtown when he heard that his resi­
dence was on fire. When he arrived home, he saw that the
fire department was unable to save the structure, as there
was no water within half a mile. Realizing that the
money, which represented his savings for years, would be
destroyed, he grabbed an ax and tried to force an entrance
into the house.
The house and contents were entirely destroyed.

Saturday, November 6, 1909

THE COMM ERCIAL W EST

23

THE OLDEST BA N K IN TH E UNITED STATES
(CHARTERED BY CONTINENTAL CONGRESS IN 1781.)

THE

BANK

O F(N ATIO
NN ALO BANK)
RTH

A MER IC A

PHILADELPHIA, PENNA.
C A P IT A L _____________________________
SURPLUS_______________________________
UNDIVIDED PROFITS-DEPOSITS (June 23, 19091

$1,000,000.0«
2,250,000.00
262,000.00
15,000,000.00

President
_____
11. C. MICHENER
Cashier---------------------------------------- SAMUEL D. JORDAN
Assistant Cashier ________
WILLIAM J. MURPHY
Assistant Cashier
RICHARD S. McKINLEY

Solicits the Accounts of Batiks, Firms, Individuals and Corporations
CALENDARS

AG AIN.
11 Surplus funds can be most safely invested in Farm
Mortgages. They yield the highest income consist­
ent with absolute security.

I overheard a conversation one day in a dry goods store
between two women.
“ Where did you get the pretty calendar?”
“ Over at the Blank Bank. Why don’t you go over and
ask for one. I am going to cut off the advertisement and
frame the picture.”
PERSONAL

LETTERS

PRODUCE

Write us for lists and descriptions
of our selected Farm Mortgages.

S.

J.

MURTON

Security Bank Building,

&

CO.

MÎNNEAPOLIS, MINN.

RESULTS.

Personal letters, where properly used to a selected list
of prospective customers, seldom fail to produce good
results. This is due more to the fact that such letters
are carefully and thoughtfully prepared and written in
a conversational manner than to their being sent out as
first-class mail matter.
The success of the personal letter canvas depends
almost entirely on the follow up method used. The first
and second communication will be read carefully, but
thereafter, unless the letters are made to create a real
interest, they are apt to prove a bore and perhaps create
a feeling of resentment. Short letters, straight to the
point, always get the best hearing.
R E M E M B E R T H IS ?

Someone, in years gone by, invented a stock phrase
which has been worked to death— “ Accounts of individ­
uals, firms and corporations solicited.” It is quite prob­
able some very dignified city bank acquired the rights, but
be that as it may, it has been purloined by thousands of
banks and retained as a prime favorite.
It covers the entire field of prospective business, which
is perhaps the most that might be said in its behalf. It
would be interesting to know just how many people have
been influenced by that sentence during the past half
century. It has no doubt served a purpose, for many
of the larger banks of the cities continue it in their ad­
vertising service, with slight variations, but be it said
to the credit of the country banks they have discovered
it to be a “ has been.”

' CAPITAL NATIONAL BANK
of

Sa i n t Pa u l
I

$

I
ë

This bank has all the
advantages
afforded by ample capital, a large list
of correspondents, and desirable con­
nections at the large commercial cen­
ters for making collections and hand­
ling the business of banks and bankers.
Reserve accounts solicited upon which
interest is allowed.
JOHN R. MITCHELL, Presio,<:nt
WILLIAM B. GEERY,
JAMES L. MITCHELL
Vice President
Cashier
EDWARD H. MILLER, Ass’t Cashier

Surplus

an C A P I T A L

EUGENE

M.

$ 1 0 0 ,0 0 0

S500.000.0 O

STEVENS

&

CO.

COMMENT.

Two of the banks of Independence, Kansas, are usingliberal space in the local paper. They both used quarter
pages for their last published statements.
*

*

*

The Crawford County bank of Prairie du Chien, Wis.,
is distributing a unique blotter. The finished side is a
fac-simile of one of the bank’s certificates of deposit,
filled out for $50 in favor of B. A. Saver, showing at a
glance the terms on which the depositor leaves his money
with the bank. On the other side appears the following:
“ Did you ever consider, if your money is lying idle, how
much you are wasting? Just 4 per cent, on every dollar.
Why not let it work for you in our bank where it will
be absolutely safe and increase in value 4 per cent, each
year? You need not have a large amount to start an
account.
*

%

*

*

“ This bank has never rediscounted any of its paper,”
is the record set forth in connection with a recent state­
ment issued by the Tipton County bank of Covington,
Tenn.
*

*

*

The Lake County bank of Madison, S. D., issue a post­
card for mailing showing a comparative statement of
all the banks of Lake county for Sept. 1.
❖

❖

MUNICIPAL, CORPORATION A N D RAILROAD
BONDS

FARMERS & MECHANICS SAVINGS BAN K B L D G ., MINNEAPOLIS
STATE SAVINGS BANK BLDG., ST. PAUL

BONDS
School
Drainage

Irrigation
W ater Power

SEND FOR CIRCULARS

*

In their last statement, the First National bank of
Sheldon, Iowa, call attention to their increase in deposits
for the year ending Sept. 1, 1909, amounting to $118,000.
Cashier Frisbee is a persistent advertiser.
There are a lot of calendars to be passed out by banks
next month. If you have any special plans for distribu­
tion, send them in to this department for publication.
Give your fellow bankers the benefit of your experience.

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Federal Reserve Bank of St. Louis

PAPER

*

The First National bank of Beach, N. D., have been in
business three months and show deposits of $136,000.
They tell their people of this satisfactory growth in a
half-page ad in a recent issue of their local paper.
*

COMMERCIAL

BOSTON

C H IC A G O
S A N F R A N C IS C O

ERNEST E. JEWETT
Northwestern Representative
State Sav:ngs Bank Building
S t. P au 1, M in n .

Saturday, November 6, 1909

T H E COMM ERCIAL W EST

24

INVESTMENT SECURITIES
U.

S .,

C an adian ,

M e x ic a n

and

A . E. B U T L E R

C uban

W e Buy, Sell and Quote
A ll Chicago Securities
Bank Floor, 238-40 La Salle Street, CHICAGO

INFORMATION FURNISHED
QUOTATIONS SUPPLIED
OFFERINGS OR BIDS SUBMITTED

INVESTMENTS YIELDING

5% to

10%

DUDLEY A. TYNG & CO.

R. H. GOODELL & CO.

(Special Cable Dispatch to the New York Evening Post.)

London, October 30/—The smaller amount of bills ap­
plying for discount on our money market has this week
rendered it difficult to make the present Bank of England
rate effective. Your market’s London borrowings have
probably been reduced in the past fortnight by ten mill­
ions sterling. Furthermore, although there is now a dif­
ference of 2 per cent, between Paris and London discount
rates, the French buying of bills in this market has been
very moderate.
Setting aside altogether the question of London’s criti­
cism of the Wall Street speculation, the American situa­
tion is a confusing factor in the outlook. Cable advices
from New York are sufficiently extraordinary. They as­
sert, and doubtless truly, that your money rates are com­
fortable, declare that American securities are arriving
heavily from London, and insist that New York is now
the cheapest “ carrying center.” Yet the same cables give
details of efforts to arrange long-time loans ahead in Lon­
don, on stock collateral, for 5 per cent, with ys commis­
sion, and they end by stating that securities are likely to
be shipped back to London shortly.
Large blocks of American securities were lifted from
the market at the Stock Exchange settlement here this
week, but these are mostly pawned with banks. Among
other factors in the matter, I learn that very large lines
of American securities, owned by English hands, were
shipped to you for collection of dividends to avoid the
English income tax.
The biggest Stock Exchange firms concerned with
Americans declare themselves enthusiastic over the out­
look, and over the resources of their American clients to
carry stocks acquired by them. Nobody here has doubted
or does doubt these resources. What the Banks of France
and England have to consider is simply the effect on
Europe’s money markets of the American commercial and
speculative activity. The best market authorities here
feel that the choice lies between permitting recent ten­
dencies to continue unchecked, with the probable result
of creating a speculative position here so great as to
make high money rates necessary over a long period of
time, or else pursuing drastic measures to check the Euro­
pean side of the movement now.
It must not be forgotten, in the same connection, that
all the political tendencies of the day point to large bor­
rowing by foreign markets, and that, quite apart from the
secret advances to America, the amounts publicly bor­
rowed here by outside countries within two years exceed
all records.
The issue of the budget controversy is by no means an
unimportant consideration; its popular rejection would
probably cause at least a temporary cheapening of money
here. Egypt and South America, however, will probably
take £3,000,000 more gold from the Bank of England. The
Bank of France is only giving up gold gingerly for Turkey.
It is credited with willingness to lend gold to bur banks;
but Wall Street authorities who criticise the Bank of
England should remember that the similar recourse, after

74 Broadway

184 La Salle St.

N e w Y ork

C hicago

S

First N a tio n a l B a n k B u ild in g , C H I C A G O

A European Summary.

& CO.

Members Chicago Stock Exchange

p e c ia l is t s

in

U

n l is t e d

St

o c k s

We will furnish you bid or asked price for any stock
that has a market value.

CHICAGO

STOCK

EXCHANGE

Q U O T A T I O N S — BONDS.

A. E. Butler & Co., 240' La Salle street, Chicago, members of
the Chicago Stock Exchange, quote listed securities as follows,
on Nov. 1:

Bonds

Aur., Elgin & Chi. R. R. 5% . ...1941
Chicago Board of Trade 4 s ... ...1927
Chicago, Edison Co., deb. 6s. ...1913
Chicago Pneumatic Tool 5 s.. ...1931
Chi. Rwy’s. 1st mtg. 5s.......... . . .1927
Chi. Rwy’s. con. mtg. 5s A . . . . . .1927
Chi. Rwy’s. con. mtg. 4s A .. . . .1927
Chi. Rwy’s. con. mtg. 4s B .. . . .1927
Chi. Rwy’s. con. mtg. 4s C .. ...1927
Chi. Rwy’s. 5 yr. coll. 6 s .. . . . . .1913
Chi. Rwy’s. 5 yr. funding 6s. . . .1913
Chi. City Ry. 1st mtg. 5s........ . . .1927
Chicago Athletic A ss’n 6 s ...
Chi. Auditorium 1st mtg. 5s. . . .1929
Chi. Auditorium cons, gold 5 s.. 1942
Chi. Edison 1st mtg. gold 5s. . . .1926
Chi. Gas. L. & Coke Co. 5 s.. . . .1937
Chicago Telephone 5s.............. . . .1923
Chi. & Mil. Elec. Ry. Co. 5s ...1919
Cicero G. Co. ref’d gen. mtg. 5s. 1932
Cicero G. Co. 1st mtg. 6 s . . . . ...1922
Com. Edison 1st mtg. 5s . . . . . . .1943
Commonwealth Electric 5 s ... . . .1943
Congress Hotel 1st mtg. 6 s.. ...1933
Consumers Gas 1st mtg. 5 s.. . . .1936
Congress Hotel 1st mtg. 5 s.. ...1941
Illinois Steel Co. 5s.................. ...1910
K. C. Rwy. & L . Co. 5s.......... ...1913
Knickerbocker Ice, gold 5 s ... ...1928
Lake St. Elev. 1st mtg. 5 s ... ...1928
Lake St. Elev. income 5 s ... . . . 1925
Met. gold 4s................................ ...1938
Met. Extension 4s.................... ...1939
Mutual Fuel Gas Co. 5s........ ...1947
No. Western El. R. R. 4 s ... ...1911
N W . G. L. & C. Co. con mtg. 5s 1928
N W . G. L. & C. Co., 1st mtg. 6s 1915
Ogden Gas Co. 5s...................... ...1945
Page W oven W ire Fence Co. 5s . . .
P. G. L. & C. Co. 1st con. 6% ...1943
P. G. L. & C. refd. gold 5 s.. . . .1947
S, S. El. R. R. Co. gold 4 s.. ...1924
Swift & Co. 5s.......................... ...1914
Un. Box Bd. & Pap. collât. 6s........
Union Elev. R. R. 5 s.............. ...1945
U. S. Brewing Co. 5s.............. . . .1910

issued.
$3,000,000
1,240,000
1,483,000
2,500,000.
8,000,000
6,767,200
11,832,800
17,194,000
4,000,000
5,000,000
1,200,000
21,500,000
300,000
834,000
575,000
6,000,000
10,000,000
3,000,000
1,000,000
1,770,000
500,000
8,084,000
5,500,000
490,000
4,646,000
856,000
2,922,000
9,200,000
2,500,000
5,000,000
1,000,000
10,000,000
5,000,000
5,000,000
17,000,000
1,750,000
250,000
6,000,000
2,000.000
4,900,000
7,300,000
8,000,000
5,000,000
1,700,000
5,000,000
3,500,000

Bid. Ask.
100
101
98
iò i
100
88
85
:iooy2 101%
95
3ÓÍ
i 03

99 %
94
85
100%
103%
102%
S3
95
105%
102%
102%
112
96
100%
94%
SO
83
93
98%
103%
95
73
119%
103
94
100
75

95%
86%
92
101%
i Ó3%
101
98
88
100%
i 03 Vs

87
95%
107

99
101
96%
84
83%
81%
102%
93%
99%
105
96
77
120
103%
94%
100%
78
93

the events of 1906 and 1907, amounted to a humiliation
which cannot with self-respect be repeated.
NOVEMBER

INTEREST

AND

DIVIDEND

PAYMENTS.

New York, Oct. 29.— Total interest and dividend pay­
ments by railroad, industrial and traction corporations in
November, according to the “ Journal of Commerce,” will
reach. $87,367,129, an increase of $7,735,902 over November,
1908. Of this amount dividends will call for $37,367,129,
a gain of $5,235,902, and interest payments will contribute
$50,000,000, a gain of $2,500,000. The foregoing total does
not include dividends by banks and trust companies nor in­
terest disbursements by the National Government, coun­
ties and municipalities. These various payments foot up
$19,100,000, making a grand total for everything of $106,467,129.
NATIONAL

BANKS.

Washington.— The Controller of the Currency has au­
thorized the Union National bank of Bartleville, Okla.,
to begin business; capital $100,000. Mortimer F. Stilwell,
president; Howard Weber and K. D. Rood, vice presi­
dents; W. C. Raymond, cashier and H. C. Moore, assist­
ant cashier.

Municipal, School, Public Service Corporation and Railroad Bonds
Full information and our descriptive lists will be furnished on request, together with our
latest publication entitled “For the Information of Conservative Investors.”

H. T. H O L T Z

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

& COMPANY

171 LaSalle St., CHICAGO

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

25

This Bank is at the center of Wisconsin banking
activities and, having an exceptional list of correspon­
dents, is in a position to handle collections throughout
Wisconsin in a most satisfactory manner.
THE FIRST

NATIONAL

C H IC A G O B A N K STOCKS.
Quotations furnished by Dudley A. Tyng & Co ., 184 La Salle
street, Chicago, for November 1:
Ask
Bid
169
♦Central Trust Co. of Illinois....................................
166
180
Chicago City bank......................................................
175
148
141
Chicago Savings Bank & Trust C o......................
125
118
Citizens Trust & Savings..........................................
325
City National (Evanston)........................................
301
190
198
Colonial Trust & Savings..........................................
220
222
C om m ercial National ................................................
292
289
Continental National ................................................
110
Cook County State Savings....................................
4Ì2
407
C o r n Exchange National..........................................
160
167
Drexel State .................................................................
221
225
♦Drovers Deposit National..........................................
180
184
Drovers Trust & Savings ......................................
115
112
Englewood State ........................................................
482
485
♦First National bank....................................................
241
261
First National Bank of Englewood......................
191
♦Fort Dearborn National............................................
18S
Hamilton National .....................................................
136
♦Harris Trust & Savings............................................
3ÓÓ
221
♦Hibernian Banking A ss’n ..........................................
519
♦Illinois Trust & Savings............................................
505
124
130
Kenwood Trust & Savings........................................
121
130
Lake View Trust & Savings....................................
249
♦Live Stock Exchange National..........................
404
408
♦Merchants Loan & T rust...........................................
120
122
Metropolitan Trust & Savings................................
131
140
Monroe National ..........................................................
201
204
♦National Bank of the Republic..............................
201
♦National City (Chicago).............................................
205
132
National Produce bank.............................................. .
137
134
129
North Avenue State....................................................
305
321
♦Northern Trust Co. bank........................ ............... .
305
310
Oak Park Trust & Savings......................................
170
178
Peoples Trust & Savings............................................
Prairie National ............................................................
140
160
250
♦Prairie State ...................................................................
260
120
Railway Exchange ......................................................
130
Ì35
South Chicago Savings bank.......................... .
301
305
♦State Bank of Chicago................................................
250
State Bank of E vanston..............................................
107
ÌÓ9
Stockmens Trust & Savings....................................
209
Stock Yards Savings bank................ .......................
225
123
Union Bank of Chicago..............................................
130
141
148
Union Stock Yards State bank................................
350
Union Trust Co. bank..................................................
155
160
♦Western Trust & Savings..........................................
141
150
W e st Side Trust & Savings......................................
♦Listed on Chicago Stock Exchange.
Chicago Unlisted Securities.,

Ch ic a go

U n li s t e d

385
15
93
4%
107
96
81
340
57
97
91
160
108%
90
11
79
191
99%
23
93
103
100
40
98%
98%
98
100

145
80
109
5
405
17
"5 %
109
97%
S3
360
59
100
92
170
110
92
16
81
196
100%
26
96
’ 44
100
99%
100
101

C ity N ational B ank ..................................................

180.0«

Asked.

$ 40.00
72.00

98.00

100.00

100.00

St ocks.

St. Anthony Falls ......................
Hennepin County S a v in g s ___
German-American ......................
Metropolitan National ............
Bast Side State ..........................
Germania ........................................
Merchants & Mfgrs. S t a t e ....
Scandinavian American N a t’l.
Union State ..............................................
Central State ........................ .................
Minneapolis State ..................................
Minneapolis Trust Co.............................
Minneapolis Brew, com ........................
Minneapolis Brew, pfd..........................
Minneapolis Threshing ........................
Minneapolis Steel & Mach, com ___
Minneapolis Steel & Mach, p fd........
N. A. Telegraph ....................................
N. A. Telegraph ....................................

Div. Rate
Pet.
Bid.
10
250
10
280
12
310
6
125
250
8
250
8
6
117
6
HO
8
120
6
159
105
Ì2
250
8
6
150

Borrds.

Chamber of
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Minneapolis

Commerce ........................
City ....................................
City ....................................
Gen. Electric.....................
Gas L ight..........................
Gas Light, Gen.................

’8
10
6
6
6
6
6

2ÓÓ

Int.

Bid.

4
4
5
6
5
7
4
5
5
5
6
5
4
5
G

M „ St. P. & St. M. R y ......................
M., St. P. Ry. & St. P. City Cons.
Minneapolis Street Ry. cons.........
St. P. City Ry. Cable cons............
Northwestern Con. Milling..............
Minnesota Transfer ........................
Minnesota Transfer ............ ...........
St. Paul Gas Light.

‘ 93%
93%

Ask.
300

ÌÓ5

ióó
102%

Ask.
4000 ■
380

- 98%
100
96
105
99
105
104
107
99%
101

iòò
106%
iló
101

*96
105

S E C U R IT IE S .

T'he following quotations on St. Paul securities are furnished
by Edwin W hite & Co., Investment Bonds and Commercial
Paper, St. Paul:
St ock s.

Div.
rate.
American National bank........................
Capital National bank............................... .. 6%
East St. Paul State b a n k ....................... . , . . 10%
First National bank..................................
Merchants National bank........................
National German American bank........ . . . 8%
Scandinavian American bank.............. . , . . 10%
Second National bank.............................. .
Northwestern Trust C o............................
Security Trust Co.......................................
Interstate Investment Trust C o.......... . , . . 5%
St. Paul Fire & Marine Insurance Co, , 1 0 %

Bid
100
130
150
263
186%
195
200
186
145 sale
104
97%
208

Bonds.
Maturity.
Minnesota Transfer Ry., 1st 5’s ................
. . .1916
.1916
101%
Minnesota Transfer Ry., 1st 4’s ..............
.. 1916
95%
St. Croix Power Co., 1st 5’s ..........
. . 1929
93
St. Paul Gas Light Co., 1st 6’s ...............
.. 1915
St. Paul Gas Light Co., 1st cons.6’s . . . . . 1918
1918
St. Paul Gas Light Co., gen’l 5’s ...........
.. 1944
97
St. Paul Union Depot, cons 5’s ............... 1944
St. Paul Union Depot, cons. 4’s ............... 1944
St. Paul Union Stock Yards, 1st 5’s ___.. 1916
1916
80
Superior W ater, L ’t & Pwr. Co., 1st 4’s.
s. 1931
71
Twin City Rapid Transit
Co.,
5’s
.............. 1919
. . 1919
104%
Twin City Rapid Transit
Co.,
.............. 1928
.5’s
. 1928
105%
Ttvin City Rapid Transit
Co.,
5’s1937
.............. 1937
..
107
Twin City Tel. Co., 1st 5’s .........................
.. 1926-11
92%

GEO.

B.

COMMERCIAL

S E C U R IT IE S .

Bid.
First National B ank.............. ............. ; . ............... $400.00
American Exchange National B ank................ 300.00


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Asked.
3%
2%
101
46

Bonds.

American Steamship 5s (1920)........................
Dering Coal 5s (1955) ........................................
Great Western Cereal 6s (1921)......................
Hartford Deposit 6s ( 1 9 1 2 ) .............................
Hartford Deposit, new Bldg. 5s......................
Interstate Tel. & Tel. Co. 5s (1927)..............
♦Michigan State Tel. 5s (1934)......................
North Shore Electric 5s (1922)........................
National Safe Deposit 4s (serial)................
Schwarzchild & Sulzberger 1st 6s (19 1 6)...
♦Listed on the Chicago Stock Exchange.

DULUTH

Bid.
3
1%
98
44
360
141
75
108

120.00
25.00
65.00
96.00

M IN N E A P O L IS S E C U R IT IE S .
M in n e a p o li s S t o c k E x c h a n g e Q u o t a t io n s .
Cal ls T u e s d a y s and F r i d a y s a t 11:30.

ST. P A U L
ago, members
nlisted securi-

Div.
Rate.
American Invest. Securities Co. (par $10).
American Lumber Co. (par $10)............................
American Type Founders, p fd........................
7
American Type Founders..................................
4
Butler Brothers .................................................... 15
♦Congress Hotel, com .......................................... 16
♦Congress Hotel, p fd..........................................
5
Creamery Package ...........................................
8
Dering Coal Company..................................................
Diamond Rubber .................................................. 10
Great W estern Cereal, com ....................................
Great W estern Cereal, pfd..............................
8
Interstate Telephone C o . . . .............. .......................
♦Michigan State Tel., c o m ...............................
6
♦Michigan State Tel., p fd ...................
6
North Shore Electric................... . . ; ...............
3
Northwestern Yeast ...................................12+12ex.
Otis Elevator, com ..............................................
3
Otis Elevator, pfd................................................
6
Parke, Davis & Co. (par $25)........................
8
Royal Baking Powder, com .............................. 10
Royal Baking Powder, p f d . . . ..........................
6
Union Carbide ......................................................
6
United States Gypsum, com ....................................
United States Gypsum, pfd..............................
5
W estern Electric ..............
8

OF MILWAUKEE

Northern National Bank ....................................
Duluth-Superior Traction Co..............................
Duluth-Superior Traction Co. Pfd...................
Duluth St. Ry., 1st g. 5s 30 M. & N. A ........
Duluth Edison Elec.,
1st g. s. f. 5s Mar.
1931, op. M. & S. A ........................................

Bank Stock Quotations.

ties, on Nov. 1:

BANK

LANE,
PAPER

Security Bank Building

M IN N E A P O L IS ,

M IN N .

Ask
105
140
160
265%
2ÒÒ

99%

103
96%
98
108
111
99
83%
75
105%
106%
108
95

T H E C O M M E R C IA L W E S T

26

THE

M ERCHANTS
SAINT PAUL,
Capital

Saturday, November 6, 1909

N A T IO N A L
- -

BANK

MINNESOTA.

$ 1 ,0 0 0 ,0 0 0

Surplus

$ 6 7 5 ,0 0 0 j

UNITED STATES DEPOSITARY.

O FFICERS:
KENNETH CLARK, President
GEO. H. PRINCE, Vice-President
H. W . PARKER, Cashier
H. V A N VLECK, Assistant Cashier
G. W . EKSTRAND, Assistant Cashier
D IR EC TO R S:
Crawford Livingston
J. M. Hannaford
L. P. Ordway

Thomas A. Marlow
James H. Skinner
Frank B. Kellogg

Kenneth Clark
W . B. Parsons
E. N. Saunders
V. M. Watkins
Charles H. Bigelow Geo. H. Prince

Louis W . Hill
Charles P. Noyes
Ambrose Guiterman

N E W BANKS A N D CHANGES.
M IN N E S O T A .

NEBRASKA.

Goodhue.— It is rumored that a new bank is to be organized
at this place.
Excelsior.— Geo. B. Lane, Geo. S. Lang and D. J. Pierce
have organized the Citizens State bank, capital $10,000.
Winnebago City.— A t a meeting held recently I. A. Babcock
was elected assistant cashier of the First National bank.
Bemidji.— The Security State bank, capital $30,000, has been
incorporated by E. J. Swedback, H. W . Haines, A. E. Smith and
others.
Frazee.-—W m . Espensoon of Courtland has accepted the posi­
tion of assistant cashier of the First National bank. He served
in the same capacity in the State bank at Courtland.
Marble.— To fill the position made vacant by the resignation
of Glen Strader, recently appointed county treasurer, D. M. V ermilyea has been made cashier of the First National bank.
Lanesboro.—A t a special meeting of the board of directors
of the State Bank of Lanesboro P. A. Nelson was elected cash­
ier in place of W . E. Hanson, resigned. W . N. Cayott and A.
M. Hanson were elected assistant cashiers.
C. O. Krogstad
takes Mr. Nelson’s place as vice president.
Frazee.— The Citizens State bank opened for business on Sat­
urday, October 16. The officers and board of directors are:
Directors, Gottlieb Baer, C. F. Gunner, F. C. Clayton, E. R.
Barton, Thomas H. Canfield, W . J. Norby, W . F. Just; officers,
Gottlieb Baer, president; E. F. Grunner, vice president and W .
F. Just, cashier.

W ilber.— The Home Savings bank has been incorporated with
$25,000 capital. J. I. Moore, cashier.
Overton.—-J. F. Grim succeeds A . U. Dann as president of
the First National bank. George E. Bacon takes the place of
Mr. Grim as vice president.
Craig.— The new First National bank has a capital of $25,000.
Among those interested are: T. A. Minier, C. W . Orr, A. L.
M'cPerson and W . T. Minier.
Adams.— A. F. Anderson has resigned as assistant cashier
of the Citizens State bank of Mediapolis, la., to accept the
cashiership of the Farmers bank of Adams.
Gretna.— The Gretna State bank has been organized with a
capital of $25,000. W m . Glandt of Millard, Peter Mangold and
W illiam P’. Mangold of Beemer are promoters.
Comstock.— Vencil Krakac is president; J. W . Yockey, vice
president; E. J. Crawford, cashier and Vencil Krakac, Jr., as­
sistant cashier, of the new Farmers & Merchants bank.
Broken Bow.— The Security State bank has elected the fol­
lowing officers: W . A. George, president; Jules Haumont, vice
president; J. L. Jewett, cashier and Ross Pickett, assistant
cashier.
Geneva.-—The Bank of Commerce is the name of a new bank
organized here with a capital stock of $75,000. H. Prangie, A.
J. Brown, Peter Moungers and others are the incorporators.
Fairbury.— The Bonham National bank has elected A. Moss
as assistant cashier.

W IS C O N S IN .
Rockton.— It is reported that a new bank will be established
here in the near future.
Mount Calvary.— The Mt. Calvary State bank, with $12,000
capital, has been incorporated with Andrew Vogel as president.
Merrill.-—Emil A. Krembs, assistant cashier of the Citizens
National bank of Chippewa Falls, accepted the position of cash­
ier of the Lincoln County bank of Merrill.

NORTH DAKOTA.
Walhalla.-—F. L. LaPage has been elected as cashier of the
First National bank.
Kimberly.— P. H. Lamb, president of the Moorhead, Minn.,
National bank, will establish a bank at this place.
Ree.— The First State bank has been chartered with a capi­
tal of $10,000. J. F. Millard of W illmar, Minn.;. David Holm berg of Ree, and J. B. Field of Garrison, N. D., are promoters.
Grafton.-—A t a meeting of the stockholders of the newly in­
corporated Farmers Security bank-the directors elected were as
follows: Joseph Coulter, C. R. Verry, Henry Dencker, J. P.
Johnson, Thos. Johnson, David Aitken and J. D. Robertson
acted as secretary. The directors held a meeting and the fol­
lowing officers were chosen: President; Thos. Johnson; first
vice president, David Aitken; cashier, C. R. Verry. f

SOUTH DAKOTA.
Mitchell.— J. L. Lahey succeeds Mr. Patton as cashier of the
Mitchell National bank.
Mitchell.— Frank Roach has resigned as assistant cashier of
the Commercial & Savings bank.
Garretson.— A. Enger has sold his stock in the Minnehaha
State bank and resigned his position. H. C. Peterson succeeds
him.

IO W A .
Cordova.— The Citizens bank is the title of a new private
bank.
Silver City.— The directors of the Farmers State bank have
elected Clyde Rynerson as assistant cashier.
Sioux Rapids.— C. B. Mills, E. M. Duroe, Chas. Gilmore, H,
L. Halvorson and H. H. Hall are the incorporators of the First
National bank, capital $450,000.
Atlantic.— Senator James E. Bruce of Atlantic has disposed
of his interest in the Iowa Trust & Savings bank to E. E. H ar­
lan, formerly of Atlantic, but more recently of Cumberland. It
is understood that Mr. Harlan will remove to Atlantic.
Rock Rapids.— The organization of the First National bank
has been approved by the comptroller of the currency. The
capital stock is $50,000. Organizers are: C. B. Mills, E. M.
Duroe, Charles Gilmore, H. L. Halverson and H. H. Hall.
Nevada.— D. F. Bartlett, who has been connected with the
Colo Savings bank as cashier, has disposed of his interests
there and will leave for Canon City, Colo., where he has decided
to locate. The position in the bank will be filled by Henry
Yeager.


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Federal Reserve Bank of St. Louis

MONTANA.
Paulson.— A new bank has been organized at this place. Mr.
Peterson, cashier of the First National bank, Harvey, N. D., is
interested.
Missoula.— W . F. Maxwell and J. A. Smith, both of St. Joe,
Mo., are in this city for the express purpose of locating and
operating a bank.
Medicine Lake.— D. Ray Gregg is reported as president;
George L. Ryerson, vice president and C. A. Haskins as cashier
of the Medicine Lake bank.
Libby.— The new First National bank has been organized
with the following officers: President, C. Ed Lukens; vice pres­
ident, F. M. Plummer; cashier, C. A. Adams. Directors: C. Ed
Lukens, John Town, F. M. Plummer, E. W . Doe and James
Stonechest.

COLORADO.
Eads.— The directors of the First National bank have elected
S. R. Clark as cashier, succeeding E. M. Scheline.
Denver.-—P. Frazzini is president; C. Frazzini, vice presi­
dent and F. Frazzini, cashier, of the Italian-American bank.
Montrose.— The Home State bank has been organized with a
capital of; $30,000 by A. L. Reeves, L. F. Serebike and others.
Center,— The Bank of Center has been chartered with a cap­
ital of $25,000. John W eety, James H. Neeley, T. B. Ickes and
others are promoters.
Durango.— The Durango Trust Co. is the title of a new en­
terprise, capitalized at $50,000. John L. McNeil is president
and Arthur W . Ayres, secretary.
Fort Collins.— The Fort Collins Bank & Trust Co. has filed

BANK
BURGLARY INSURANCE.
Send us a description of you r e q u ip ­
m ent and let us send you rates and a
sample of our new Bank Burglary P olicy.
"We Issue Surety Bonds”

T h e O cean A ccid e n t & Guarantee C orp .

HOOD & PENNEY, Gen. Agts.
PHOENIX BUILDING

M INNEAPOLIS, MINN.

Saturday, November 6, 1909

The

T H E C O M M E R C IA L W E S T

National

Bank
OF

of

27

the

Republic

C H IC AG O

i

continues to offer to banks and bankers the advantages of its facilities, developed and perfected by eighteen years of close personal relations
with a constantly growing list of correspondents throughout the world.
JOHN A. LYNCH, President
THOS. JANSEN, Ass’t Cashier

W . T. FENTON, Vice-President
JAMES M. HURST, Ass’t Cashier

articles of organization with a capital of $50,000.
mer, C. E. Daniels and others are promoters.

R. M. McKINNEY, Cashier
WM. B. LAVINA, Ass’t Cashier

O. H. SW AN, Ass’t Cashier
W . H. HURLEY, Ass’t Cashier

S. H. Clara-

FIRE
PROOF
SAFES

W Y O M IN G .
Laramie.— A new bank is to be organized here by A. Sheep­
man and others.

OREGON.
Lebanon.— E. B. Day is cashier of the new Lebanon State
bank.
Madras.— The new Madras State bank has elected the follow­
ing officers: J. M. Conklin as president and C. F. Roush, cash­
ier. The capital of the institution is $15,000.

and

VAULT
DOORS

W A S H IN G T O N .
Paulsbo.— The Liberty Bay bank has been incorporated by
William Thaanum and others for $10,000.
Marcus.-—The First State Bank of Marcus will open its doors
with Mrs. Barringer of Spokane as president.
North Yakima.— A rumor has been current in North Yakima
for some time that another banking house is to be established
here, but no details can be secured as to the personnel of the
organizers.
Douglas.-— The Douglas State bank has opened for business.
The bank has a -capital stock of $15,000. all paid in. The offi­
cers of the bank are: President, C. T. Hansen; vice president,
John W itten; cashier, J. W . Wolverton.

Write for Prices.

DEAN & CO.,

Minneapolis, Minn.

A g r ic u l t u r a l I m p l e m e n t s a n d V e h ic l e s

C A L IF O R N IA .

IF YOU W A N T FIRST-CLASS

Oak Park.— R. L. Kaeser is a leading spirit in a movement
to establish a bank at Oak Park.
Los Angeles.— The National Bank of California has elected
H. S. McKee, cashier, in place of G. W . Fishburn.
San Jose.— The Bank of Italy, of San Francisco, will estab­
lish a new branch in this city. E. Avenali will have charge.
Oakland.— The Bank of Ireland has been formally incorpo­
rated here.
George H Vose, Edward Cavanaugh. Naph B.
Greensfelder, W . A. Heitmann and H. C. Montgomery are the
directors, and the capital stock is given as $200,000.
San Francisco.— The National Bank of the Pacific has been
absorbed by the W estern National bank, the latter taking over
all the assets and liabilities of the former. M. J. Hynes be­
comes an additional vice president of the W estern National.

B ank Signs

B A N K IN G

NOTES.

BA N K C L E A R IN G S .
Bradstreet’s bank clearings report for the week ending Oct
28, shows an aggregate of $3,484,322,000, as against $3,745,182,000
last week and $2,561,458,000 in the corresponding week last year
The following is a list of the cities:
Pet.
Pet
Inc,
Dec
New York ...................................................$2,233,423,000
42.6
Chicago ........................................................... 272,129,000
17.2
Boston ..........................................................
163,800,000
20.1
Philadelphia ..............................................
119,017,000
37.2
St. Louis
‘
73.026.000
18.7
Pittsburg
53.230.000
36.5
Kansas City
56.271.000
47.4
41,830,000 /
T w i n C it ie s ....................................................
o,
™
J—
..................................
36,617,000
San
Francisco
Baltimore ..
..................................
31,427,000
34.9
Cincinnati .
..................................
24,538,000
13.9
Minneapolis
..................................
28,649,000
18.9
New Orleans
..................................
19,836,000
34.3
Cleveland ..
..................................
18,285,000
27.0
Detroit ........
•...............................
14,304,000
26.5
Omaha ........
..................................
14,364,000
26.5
Louisville ..
..................................
11,506,000
24.3
Milwaukee .
..................................
12,267,000
15.2
Fort W orth
..................................
17,639,000
19.7
Los Angeles
.................................................
12 , 686,000
36.7
St. Paul . . .
..................................
13,181,000
30.7
Seattle ...................................
14,994,000
67.1
Denver
9.839.000
18.9
Spokane, W ash.
4.761.000
28.8
Portland, Ore, ..
8.450.000
41.0
Salt Lake C it y ..
6.830.000
33.6
T'acoma ................
6.072.000
35.6
Des Moines ........
3.585.000
30.9
Sioux City ..........
2.647.000
27.5
Grand Rapids ..
2.464.000
18.2
Davenport ..........
1.476.000
18.1
Helena ..................
1.709.000
80.4
Fargo, N. D ........
921.000
37.9
Sioux Falls, S. D
855.000
22.5
Duluth ..................
7.384.000
Canada.
Montreal
.$36,288,000
20.9
$44,046,000
. 27,041,000
6.9
32.487.000
W in n ip e g ..............
. 20,585,-000
18.6
24.365.000
Vancouver, B. C.
. 6,293,000
84.7
7.496.000
Calgary ................
. 2,265,000
65.5
2.342.000
Victoria, B. C . . . .
. 1,163,000
1.835.000
Edmonton ............
948,000
54.3
1.075.000

Write for Designs and Estimates.

B a n k Interiors
may be made substantial, elegant, and impressive— at
less than half the cost of marble, if finished with

Manufactured Marble
— “that you’ll not know the difference.”

This is the new material in which any marble can be
perfectly reproduced.
Wainscoting, columns, railings, banisters, counters,
tables, ceilings, floors, partitions, ornamental statu­
ary groups, or subjects in bas-relief, etc., may be
moulded in TESCO in such a manner as to be undistinguishable from highly polished marble, though
TESCO lasts longer, costs much less; and can be
moulded seamless, with all corners rounding, to prepevent accumulations of dust.
Have more richness at less cost;
investigate TESCO. Ask for our
TESCO BOOK, and specimens.

$126,749,000

TO IN V E S T IG A T E O K L A H O M A BANK.
Oklahoma City, Oltla., Oct. 28.— Attorney-General W est
today began a grand jury investigation into the affairs of
the Columbia Bank & Trust Co., which failed recently.
State Bank Commissioner Young was the first man sum­
moned to. appear as a witness.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

E. E. Peterson Sign Mfg. Co.
2 2 2 Nicollet Avenue, Minneapolis, Minn.

Pierson, Iowa.— The Bank of Pierson has started work for
the erection of a new bank building.
International Falls, Minn.— A new bank building is to be
erected by the First National bank.
Colorado Springs, Colo.— The new Exchange National bank
building, erected at a cost of $300,000, is now ready for occu­
pancy.

$105.361,000
17.5
____________

W E RECOMMEND

ENGRAVED BRASS SIGNS,
GOLD PLATED M ETAL W IN D O W LETTERS,
RAISED LETTER BOARDS,
RAISED LETTER W IR E SIGNS,
PLATE GLASS SIGNS, CAST BRONZE SIGNS.

The European Statuary Company
400 Potter Ave., Milwaukee

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

28

BANK

FIXTURES

Send us you floor plans
We

also

make

office

and

store

fixtures

T H E N A U M A N CO.
W ATERLOO,

IO W A

ATTORN EY M ATHESON TALKS TO W1S. BANKERS.
Notes fro m the Address of A lexand er E. Matheson Before Group 5, Wisconsin Bankers Association, Waukesha.
L i a b i l i t y of a D ep os it M a d e P a y a b l e t o E i t h e r of T w o Persons.

There is no question as to the legality of such a deposit.
For instance, a deposit may be made payable to A B and wife,
or it may be in the name of two persons, such as A B and C D.
The above statement assumes that the consent of both par­
ties continues. Where one of the parties withdraws his con­
sent or notifies the bank that payments are not thereafter to
be made as formerly, then the bank’s duty must oe decided
by the circumstances of each case.
W here the amount left in the bank is represented by a cer­
tificate of deposit, then there must be a delivery of such cer­
tificate to the one who attempts to cash it.
The case of Winslow vs. McHenry, decided in the Minnesota
Supreme Court in 1904, reported in 101 N. W . R., p. 799, is in
point. Here the Minnesota bank issued a certificate of deposit
which read as follows: “ Henry B. McHenry has deposited in
this bank $2,100, payable to the order of himself or wife upon
the return of this certificate properly endorsed.” The certifi­
cate, made out and dated, was delivered to the husband. He
took it home and placed it in a trunk to which there were two
keys one in his own possession and one in the possession of
his wife. A fter his death, in less than a year, his wife opened
the trunk with her key, took out the certificate of deposit,
presented it at the bank and received the cash upon it. Action
was brought by the administrator of the estate of Henry B.
McHenry to recover of the widow. It was held that the admin­
istrator could so recover, on the ground that there had been
no delivery of the certificate, and that at no time prior to his
death had the deceased surrendered control over the certificate
of deposit.
,,
.
.
.
It will be noted that such a question would not arise m the
case of an open deposit. W e ought further to say that if the
bank should cash such a certificate of deposit, in the hands of
one of the payees who had obtained possession of it wrong­
fully or without authority, it would not be held liable if with­
out knowledge of the fact of wrongful possession.
However, this probably would not be the case where the
rightful possessor of the certificate dies or becomes incompe­
tent, for then the authority is immediately revoked.
In the case of Mulcahey vs. The Emigrant Industrial Sav­
ings bank, 89 N. Y ., 435, decided by the N. Y. Supreme Court
in 1882, Ellen Mulcahey and her nephew, O’Keefe, opened an
account with the bank in 1862. The first deposit was made by
the two together, and the bank issued a pass book showing the
deposit to be in the name of Jno. O’Keefe and Ellen, Mulcahey.
Mrs Mulcahey told the officials of the bank at the time of the
first deposit that either or both could draw the money. A t that
time there was nothing said as to the respective interests of
the two parties. O’Keefe died in 1873, and immediately the
other depositor, Ellen Mulcahey, informed the officials of the
bank of his death, stating to them that his widow had the pass
book, and gave them notice not to pay her the money. The
bank, however, disregarded the notice, and paid the amount
of the deposit to Mrs. O’Keefe upon the presentation of the
pass book and a showing by her that she had been appointed
administrator of her husband’s estate. Ellen Mulcahey brought
suit against the bank, and in the lower court obtained judg­
ment for the full amount of the balance in the bank in said
account. The supreme court, however, reversed the judgment
on the theory that she should have been permitted to recover
only her rightful share or proportion of the deposit.
It was held in the case of Brown vs. Brown, 23rd Barber
N. Y., 565, that where the husband deposits money in the sav­
ings bank, belonging to him, stating that he wanted it so that
he or his wife could draw the money, and both he and his wife
entered their names on the signature book, beside which were
written the words, “ To be drawn by either,” and the pass book
was given to the husband, the wife was not in respect thereto
a creditor of the bank, but the husband was the sole creditor.
Deposits are often entered in the name of two or more per­
sons, where they hold jointly rather than severally. It is a
principle familiar to laymen as well as to lawyers that in such
a case the survivor takes the entire deposit. W here land is
owned jointly the survivor takes the whole of it. _ This has
been held in numerous cases involving the ownership of per­
sonal property, including interests in life insurance, promis­
sory notes, and bank deposits.
.
W here the deposit is a several deposit, m the absence of in­
struction or notice to the contrary, during the lifetime and
competency of the parties, the bank may. safely make payment
to either or any of the parties named as several owners of the
1Where one of the parties dies or becomes incompetent, or
notice is given, then the bank officials should inform them­
selves fully as to the rights and interest of the parties, making
payments accordingly.
.
. ,
No general rule can be stated, but each case must be de­
cided according to the equities involved. If the bank officials
cannot determine to their satisfaction the rights of the parties,
they should get the proper court to render a judicial determina­
tion for their protection.
L i a b i l i t y of an

E n d o r s e r W h o Signs in F u l f i l l m e n t of an O r a l
P r om is e .

A mere oral promise to sign or endorse a note for another


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Federal Reserve Bank of St. Louis

is not binding. It is within the so-called statute of frauds,
whereby every special promise to answer for the debt of an­
other is void unless in writing. (Sec. 2307 W is. Stat.*> Again
the signing or endorsing of a note after the consideration has
passed to the maker, and the transaction thus completed, is
not binding on the one so signing or endorsing, the same being
without consideration.
However, let this be noted, that an oral promise and a sub­
sequent signing are sufficient to bind one who signs or endorses
a note. In such a case it is held that the prior oral promise is
a sufficient consideration to support the legality of the subse­
quent endorsement or signature. The courts construe the prior
oral promise and the subsequent signing together as consti­
tuting one act, such act antedating the passing of the consid­
eration. (Tiedemann on Com. Paper, par. 157.— Cycl. of Law
and — ?---------? vol. 20, p. 166.)
All business men at times do things that in the light of
subsequent developments may be said to have been careless.
W e cannot always get things down in black and white. W e
are compelled very often to leave transactions with loose ends,
depending upon the honesty and good faith of our fellow men.
These things arise from the exigencies of business. W e can­
not carry on business in this rapid and progressive age without
trusting much to the good faith of others with whom we are
associated in business. This doubtless is as it should be. I
should be loath to stand here and say that my fellow men
cannot be trusted and that it is necessary to have every detail
of business recorded with absolute certainty.
I may be about to depart on a journey of a few days. A
business transaction is about to be completed. I leave a large
sum of money with a business associate, requesting him to
close the deal. W hen I return home, generally speaking, I shall
find the business properly adjusted and my rights well pro­
tected. It may transpire that death prevents such a one from
returning, or death cuts off the business associate before the
transaction is completed. Even then ways are usually found
for the protection of all. It is the exception in the great mass
of business transactions that there is a loss, assuming of
course that every business man exercises a reasonable amount
of discretion and good sense. However, it will not be out of
place to utter a few words of warning to banks as to difficul­
ties that may arise where everything connected with a trans­
action is not carefully recorded. I speak of two or three cases
with which I have had to deal in my experience as a lawyer.
I have in mind one case relating to a banker in southern
Wisconsin, who holds, an enviable record, who is exceptionally
honest and painstaking, who has always been zealous to the
extreme to see that every one has his rights. Years ago a

St.AnthonyFalls
BANK
M IN N E A P O L IS
C a p i t a l a n d S u r p lu s ,

$24 0 , 000.
D ep osits,

$ 1 ,4 0 0 ,0 0 0 .0 0
HIRAM SCRIVER,
President
WILBUR F. DECKER,
Vice-President
JOSEPH E. W AR E,
Cashier
The Bank that has grown up
and kept pace with the
growth of East Minneapolis
(Old St. Anthony)

G L O V E S FOR
GIFTS FOR

MEN AND
WOMEN.

F or M en : Kid Gloves and Handkerchiefs.
Finest grades and quality.
Domestic and Im­
ported.
Leather Goods, Fans, Handkerchiefs, Hosiery,
Neck Novelties, Laces, etc.
Initials and Monograms Embroidered to order
on handkerchiefs and household linens.
Mail orders filled promptly.

V R O O M A N 'S
1 8 3 So. 7

“ L IT T L E

SH O P ”

tilSt., Minneapolis

Saturday, November 6, 1909

TH E COMMERCIAL W EST

29

NORTHWESTERN
M A R B L E AND TILE CO.
(Successors to Northwestern Mantel Co.)

Designers and Manufacturers
of

High Grade Bank Fixtures
In

Marble,

Wood, Ornamental Iron or
Bronze.

We also furnish office and store fixtures.
Drug and Jewelry Stores a Specialty.

O ffice and Salesrooms:
419-421 Sixth Street South,
MINNEAPOLIS

German who contemplated a journey abroad came to this
banker for a. letter of credit. The bank secured for him a letter
of credit which authorized the holder to draw against the issu­
ing bank up to a certain amount. The German did not pay cash
for his letter of credit, but received the letter of credit and the
checks, as he drew them against it were charged to his ac­
count when returned to the bank. After this man had made
his journey and years had elapsed it occurred to him to claim
a considerable sum of money from the bank, on the theory that
he had paid to the banker the cash at the time he received his
letter of credit.
Right here we have a case of positive and negative testi­
mony. In the trial of the case the books of the bank showed
that the cash was on a substantial balance on the day the
letter of credit was given the German. There was nothing to
show that any cash had been received for this letter of credit.
The judge who tried the case facetiously remarked that Mr.
------ must have put that money in his pocket, of course mean­
ing that such a thing was beyond serious consideration. The
plaintiff in the case testified positively that he paid the cash to
the banker for the letter of credit. The banker, being very con­
scientious and scrupulous, stated that to the best of his knowl­
edge such money had never been paid to him. He would not
answer the questions of the attorney by an unqualified and de­
termined negative, but would only say that to the best of his
knowledge and judging by the books of the bank he had not
received the money. Upon this state of facts the court was
obliged by the evidence to hold that the testimony of the plain­
tiff outweighed that of the banker, with his high character and
excellent standing.
I speak of another case which arose, Involving another
banker, likewise of high character and standing, in southern
Wisconsin.
This banker had a note signed by a principal
debtor and by another who wished' to become sponsor or surety
for such principal debtor.
This banker was positive that
while the so-called sponsor signed the note after the money
was paid to the principal debtor, yet there was an oral promise
to do so before the note was signed by the principal debtor.
Having so many transactions, he could not remember this in­
dividual one with positive certainty. He was very sure that,
knowing the principal debtor as he did he would hot have let
him have the money except at the request and upon the oral
prbmise of the other signer. Now this gentleman who signed
the note for his friend, took the witness stand and swore posi­
tively that he made no oral promise and that he signed after
the money was paid, because of the importunity of the banker.
Here again was the positive statement of a man who had few
banking transactions against the statement of a banker who
was sometimes swamped with a multitude of transactions of
the same kind, and who could only testify from his usual cus­
tom and the records as shown by the books of the bank.
It would seem from these instances that every banker, and
every business man for that matter, should as far as possible
keep careful and exact memoranda as to all such transactions;
that every bank should, as far as possible, have its customs
fixed so that the banker may testify to them with great posi­
tiveness. Then the books should be in such condition that the
banker can swear by them definitely and positively. In such
case the banker or business man will be able to go upon the
stand and testify positively instead of swearing “ as to the best
of his recollection,’ ’ or that he “thinks thus-and-so.”

W E S T IN G H O U S E

SUES

MONEY TO LOAN
ON FARM LANDS
Send

M e

Your

Applications.

MACKEY J. THOMPSON,514 sTn.ePAUL,BMiNN.

Marshall 4 llsley Bank
M ilw a u k e e , W i s .
Capital

$ 3 0 0 ,0 0 0

Surplus

$ 2 5 0 ,0 0 0

Entering upon the Sixty-3econd Year of Its Existence.

E s t a b lis h e d 1 8 4 7
C O N S E R V A T IV E

P R O G R E S S IV E

R esp e ctfu lly Solicits Y our Business.
O F F IC E R S a n d D IR E C T O R S
JAM ES K. ILSLEY, Pr e si d e n t
JOHN C A M P B E L L , V i ce -P re sid en t
HA RR Y J. PA IN E, Ass ’t Cashier
JOHN H. P U E L I C H E R , Ca sh ier
G. A. REUSS, M g r. Sr uth Side Bran ch
SA MUE L H. MAR SHA LL
J. H. T W E E D Y , Jr.
R O B E R T N. M cM Y NN
C. C. Y A W K E Y

GUSTAV REUSS

BANK.

Pittsburg, Oct. 28.— George Westinghouse has brought
suit against the Lawrence Savings & Trust Co., of New
Castle, Pa., for $20,000 damages in the United States court
there. In the statement of claim filed by Mr. Westing­
house, it is set forth that on July 24,' 1905, he borrowed
$25,000 from the bank, depositing 225 shares of Westing­
house Air Brake stock as collateral. His $25,000 note was
payable upon demand. He claims that tjie bank, late in
October or early in November, of that year, sold the 225
shares of stock at $115, a total of $25,875, offering him a
check for $550.42, the balance after the note and interest
was paid. He refused this, claiming that the bank had
no right to. sell the stock, and that it was not sold at the
market price. On January 31, 1908, he sets forth, the
Westinghouse Air Brake Co. paid a dividend of 25 per
cent, in stock or 56% shares on the block of 225 shares
the bank sold, and he now asks damages to the full amount
of the highest price the 225 shares and the additional 56%
shares would command from the time they were sold un­
til the time the suit is finally ended.
B A N K S H O R T A G E $300,000 T O $400,000.

Washington, Oct. 28.— Officials of the Controller’s of­
fice believe that the shortage in the First National bank
of Mineral Point, Wis., will be between $300,000 and $400,000. Receiver Scofield reports that it will be six weeks
or more before he will be able to ascertain the approxi­

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

mate amount on account of the large number of certifi­
cates of deposit supposed to be outstanding and which are
not on the books of the bank.

Scandinavian American Bank, Spokane, Wash.

P H O E N I X FURNITURE CO.
Artistic Fixtures for Banks, Offices, Stores,
Churches and Public Buildings
Send us floor plans and we will do the rest

E A U C L A IR E ,

W IS C O N S IN

Saturday, November 6, 1909

TH E COMM ERCIAL W EST

30

SEN D

THE

YOUR

NORTH

DAKOTA

BUSINESS

FIRST NATIONAL BANK OF FARGO
The Oldest and Largest Bank in the State

L. B. HANNA, President

E. J. WEISER, Vice President

F. A. IRISH, Cashier

L. R. BUXTON, Assistant Cashier

The C ITY N A TIO N A LB A N K of Duluth, Minn.
*Capital, $ 5 0 0 ,0 0 0 .

JOSEPH SELLWOOD, President
A. H. COMSTOCK, Vice-President
W. I. PRINCE, Cashier
H. S. MACGREGOR, Asst. Cashier

MINNEAPOLIS
TRUST COMPANY

First National Bank Building,

M INNEAPOLIS,

-

109 Fifth St. South.

M INNESOTA.

Capital, $250,000.

Surplus, $250,000

Transacts a Trust and Agency business only. Does not do a banking
business. Acts as Executor, Administrator, Guardian and Trustee.
Elbridge C. Cooke, President
Wm, G. Northrup. Vice Pres.

U n ited S ta tes G overn m en t D ep osita ry.

Your collections will be promptly and intelligently attended to.
W e make a specialty of grain drafts.

OFFICERS
Wm H. Dunwoody, Vice-Pres.
Robert W. Webb, Sec’y & Treas.

Elwood S. Corser, Pres.W illiam B T uttle , Treas.

L ester B. K lwood, Vice Pres.
Edward B. Nichols, Secy.

Corser Investment Co.
Established 1870.

Manager New York Life Building.

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
Special attention given to Management of Estates for Non-Residents.

N e w Y orK L if e B u ild in g ,

M IN N E A P O L I S

CHUTE REALTY CO.
7 University Ave. N. E. and 8 0 3 Phoenix Building

M IN N E A P O L IS
Minneapolis and St. Paul Realty of all Kinds.

SAFETY DEPOSIT VAULTS
C O N VEN IEN TLY LOCATED.

FOR

Fire and Burglar Proof Safes and Vault Doors
Mortgage Loans, Real Estate and Rentals.
Management of Estates for Non-residents.

Chas. J. Hedwall Go■'Minneapolis
CHOICE F IR ST MORTGAGES ON
M INNEAPOLIS IMPROVED PROPERTY
Insurance placed in our Old Line Companies. Losses ad­
justed and paid in this office without discount.

MINNEAPOLIS PROPERTY
Bought,

Sold and Managed for Non-Residents

Rents collected; buildings improved and reconstructed to
produce increased income. Satisfactory references to
local and eastern parties.

se e the on es m a d e b y th e

MITCHELL SAFE COMPANY
General Office and Salesroom at
209 Fifth Street South, Minneapolis, Minnesota

Corporation Securities Company
C O U N T R Y B AN K STOCKS
Write us about offerings in this line.
315 N ew Y ork L ife B uilding ,

MINNEAPOLIS

A NORTHWESTERN PRODUCT FOR THE NORTHWEST

MOORE BROS., BRACE & CO.,

Minneapolis
You Get Wnat the World Can­
not Excel When You Buy

The American Mortgage & Investment Co.
251-2-3-4 Endicott Bldg.,
ST. PAUL, MINN.
Offers

CHOICE

,J

FARM

MORTGAGES

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,
President.
Vice-President.
W, T. SUCKOW, Sec. and Treas.

J ohn J. F lanagan , President
J ohn S. B angs , V ice Pres.
W . E. B riggs , Cashier

S to ck y a rd s National Bank,
SOUTH ST. PAUL, MINN.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Established 1897

“COWHAM”
SYSTEM BRANDS
Every barrel guaranteed
absolutely uniform, and
of the highest quality.

Northwestern. States Portland Cement Co.
(Annual Capacity 1,500,000 Barrels)
Works and Sales Office:
Minneapolis Office:
Mason City, Iowa.
515-16-17 Andrus Building

Capital.................................................
$100,000.00
Surplus and Undivided Profits
42,000.00
D e p o sits............................................. 1,000,000.00

Our Specialty is Live Stock Loans to
Stockmen, Farmers and Ranchmen.

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

!

31

Look at the MapIT is M IN N E S O T A and
M IN N E S O T A is “ I T .”
Every dot on the map is a tack.
Every tack marks the location of
of our Systems.
Every System means
tion against Burglary.

Absolute

one

Protec­

Let us hear from you, or come out and
get your order.

The American Bank Protection Co.
M IN N E A P O L IS, M IN N .

RECENT
Note Obtained

LEGAL

W i t h o u t C o n s id e r a t io n .

Where the price paid for a note by the transferee
thereof was so utterly trifling as to bear on its face the
impress of fraud, or to leave open a reasonable conjecture
that the transferee knew the facts that would invalidate
the note, and the note was obtained by the payee by fraud
or a total want of consideration, as in the case of Hogg
vs. Thurman, 117 Southwestern Reporter 1070, the jury
must determine whether the transferee obtained it in
good faith and without notice. Before one can claim to be
an innocent purchaser of a negotiable paper for value and
without notice, the consideration paid must be more than
merely nominal, but any substantial consideration is suffi­
cient. The maker of a note when sued thereon by a trans­
feree may, in support of the defense that the note was ob­
tained by the payee through fraud without consideration,
show by the examination of the transferee as a witness
that only a nominal sum was paid for the note.
To be a bona fide holder of negotiable paper, one must
take it bona fide, for a valuable consideration, in the usual
course of business, before maturity, and without notice of
any existing defense, and a purchaser who may be charged
with notice of a defense is not a bona fide holder, pro­
vided such notice existed at the time of the transfer or
before payment therefor.
A bona fide holder takes negotiable paper free from
all equitable defenses not appearing on the face of the
paper and for which the statute does not declare the
paper invalid.
❖

*

❖

N o t ic e of Di sho no r.

Negotiable Instrument Law St. 1898, § 1678, subd. 34,
as amended by Laws 1899, p. 722, c. 356, provides that the
notice of dishonor must be given, if sent by mail, by de­
positing it “ in the post office in time to go by mail the
day following the day of its dishonor, or, if there be no
mail at a convenient hour on that day, by next mail there­
after.” The day after the date of dishonor of the note in
question the mail which would carry a notice of such dis­
honor to the indorser left between 9 and 10 o’clock in the
forenoon. The notice was not deposited in the post office
until the evening of that day, and insufficient postage was
placed thereon, and it was returned to the sender the fol­
lowing day, and on the fifth day thereafter the notice was
again deposited in the post office, with the postage prop­
erly paid. Held, in First National Bank vs. Miller, 120
Northwestern Reporter S20, that the notice of dishonor
was insufficient to bind the indorser. The provision in a

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Federal Reserve Bank of St. Louis

J
I

DECISIONS.

note for “ 10 per cent, attorney’s fees if collected by at­
torney, or if suit is brought upon this note,” is a promise
to pay attorney’s fees only on collection by an attorney
after dishonor.
*

*

*

O w n e r of C h e c k M u s t Sue.

In an action on a check between the original parties to
the transaction, a contract relating to the subject-matter
of the transaction in which the check was executed and
delivered must be read with the check as one instrument,
as decided in Scarsdale Pub. Co. vs. Carter, 116 New York
Supplement 731. One suing on a check must prove that
he is the payee thereof, or the lawful holder by assign­
ment or indorsement.
V

-I-

C e r t if i c a t e s of Deposit,

Bank certificates of deposit acknowledging the receipt
of money from C., and each reciting that it was payable
on the return of the certificate properly indorsed, were
each promises to pay C., and were negotiable notes under
Hurd’s Rev. St. 1908, c. 98, § 4, requiring that negotiable
instruments shall be payable to a person named therein.
Where a transferee of certificates of deposit, indorsed by
the payee, had no knowledge of the transaction between
the bank and the payee by which the certificates were ob­
tained, and the transferee’s husband who conducted the
transfer testified that he had no such knowledge and his
testimony was uncontradicted, any defense against the
certificates in the hands of the payee was unavailable
against such transferee, according to the case of Kavanagh
vs. Bank of America, 88 Northeastern Reporter 171, mere
suspicion, the knowledge of circumstances calculated to ex­
cite suspicion, or gross negligence of an indorsee of com­
mercial paper before maturity, not amounting to bad faith,
is insufficient to defeat the title of such indorsee taking
the paper for value and without knowledge of any defense
thereto.
❖

*

*

D is c h a rg e of N e g o t ia b l e I n s t r u m e n t .

In the case of Korkemas vs. Macksoud, 116 New York
Supplement 85, where defendant, the maker of a note, on
the day it fell due, requested plaintiff, the second indorser,
to take it up at the bank, and that defendant would pay
plaintiff in a few days, and defendant thereafter in some
manner acquired possession of the note without having
paid it, he was not a “ holder in his own right,” within
Negotiable Instruments Law (Laws 1897, p. 743, c. 612),
§ 200, providing that a negotiable instrument is dis­
charged when the principal debtor becomes the holder at
or after maturity in his own right, and was liable thereon.

TH E COMM ERCIAL W EST

32

Saturday, November 6, 1909

RELATION OF BANKS TO STATE DEVELOPMENT.
By W . E. W aldron , Cashier Yellowstone National B a nk of Billings, Montana, in the “ Eastern Slope.”

A country’s greatness and productivity are judged
largely by its financial condition. This also holds true as
regards a state, county or city, with its developed and un­
developed resources. Many sections of the United States
especially along the Atlantic Coast, or what is termed the
East, have seemingly developed their resources to the full­
est extent, while other sections, the newer ones, with
equally as good opportunities, are only awaiting the magic
touch of industry intelligently applied. Toil and persever­
ance have ever had their reward. Here in what may be
termed the Middle West—-the land of sunshine— where for
many years herds and flocks roamed on its boundless
prairies, fattened and nurtured by the rich grasses grow­
ing spontaneously on soil equaled nowhere, a vast and
generously endowed territory is entering upon a new era
of wealth and prosperity, made possible by systematic
and reasonably applied development.
In the past a few industries have made wealthy those
who pursued them with judgment and intelligence. But
the future, with its large and constantly increasing de­
velopment, now only fairly begun, in agriculture, in min­
ing and in stockgrowing, is promising of far greater wealth.
Only time and industry are necessary to prove this. It is
known by those who have lived and observed that Mon­
tana is just merging from the lethargy consequent upon
undeveloped resources and possibilities into the lime light
of intense activity with its attendant greatness and in­
creased wealth, meaning only increased population and
far greater business in all its ramifications and branches.
Looking at our state through the eyes of those not
fortunate enough to live within its boundaries, we are re­
garded solely as a mining and stockraising state. It is
true that these two great industries have made her, on a
per capita basis, one of the richest of the commonwealths.
Butte, where the metal industry has been developed to
its perfection, is mentioned as one of the richest, if not
one of the most unique cities of its size in the United
States.
That portion of Montana lying east of the main range
of the Rockies, commonly designated as eastern Montana,
is the agricultural section, the “ bread basket” of the state.
Here modern, diversified farming is being conducted along
lines productive of the most excellent results. Of this im­
mensely wealthy section Billings is the metropolis. The
financial growth of this section has been phenomenal, and
its banks are in splendid condition, with a business that is
constantly increasing and expanding.
It is a fact worthy of special note that during the re­
cent panic not a suspension occurred in that territory—or within the entire state, for that matter— something,
taken alone, that speaks plainer than words of the sound­
ness of our financial institutions. On account of the un­
usually large cash reserves carried by the different banks,
which are now considered as one of the strong features of
conservative and responsible banking, we were able, with
the coolness and good common sense on the part of our

people to pass through the trying times of 1907 with com­
parative ease.
Eastern Montana now has fifty banks, with a combined
capital of $2,800,000, and with a line of deposits aggre­
gating the handsome sum of $15,000,000, which is not
equalled by any section of the country no greater in area
and no more densely populated.
The temptation to digress and say something concern­
ing the great popular fallacy that the banks are respon­
sible for many of the financial ills from wrhich we as a na­
tion now and then suffer, is strong. Legislation has been
tried as a remedy and almost every day some one arises
with the proclamation that at last he has discovered a
panacea for those ills and attendant ones. There are cer­
tain immutable laws which legislation can never over­
come. One of these is that of supply and demand. Over­
production and decreased demand for any article can have
only one result. The banks have nothing to do with it.
The tendency during “ fat times” to indulge in speculation
and inflate values is always followed by a day of settle­
ment. When that arrives, as it always does, sooner or
later, we have a siege of financial stringency if not panic.
These disturbances are always sure to come, and no cencral bank or postal savings bank or credit currency can
cure the disease.
What is needed is more confidence in one another, more
conservatism and a larger premium on character and abil­
ity. Add to this a greater disregard for business proposi­
tions which are speculative in their nature and adherence
to strict business principles, devoid of spectacular and
pyrotechnic embellishment, and there will be small cause
of complaint from those engaged in legitimate pursuits,
whether industrial, commercial or financial. In addition
we should have the speedy enactment of laws designed to
prohibit and abolish the great gambling schemes perpetrat­
ed on the American people by unprincipled men and com­
binations of men, and the business of the nation would
speedily‘settle down to a stable basis.
It has been through strict observance of sound and
thoroughly tried business principles that the banks of east­
ern Montana have been able to weather all financial
storms, without in the least retarding the development of
legitimate enterprises or projects in the territory they
serve. Conservatively managed, though liberal in their
dealings with patrons and the public in all matters per­
taining to the progress and substantial, material growth of
this part of the state, they have aided not a little in the
great scheme of upbuilding an empire in extent and pos­
sibilities. The assistance they have rendered in financing
propositions that appeal to the man of sound judgment
and with due regard for business principles is acknowl­
edged by all who know what has been accomplished
through their help. As they have done in the past so will
they continue to do in the future; ever ready to render
assistance where it is merited and is within the bounds
of legitimate enterprise.

THE DRY FARMING CONGRESS.
(By George J. Scharschug, Staff Correspondent of the Chicago
Record-Herald.)

Billings, Mont., Oct. 28.— State legislation providing for
the study of soil culture in every public school was urged
by the Fourth International Dry Farming Congress today.
Legislatures were also called upon to spend more money
for the agricultural colleges and experimental farms, es­
pecially in western states. The importance of teaching
the American boy the value of agriculture was especially
emphasized.

the Congress recommended that these grazing lands be
sold under non-transferable contracts.
Congressman F. W. Mondell of Wyoming, author of the
320-acre semi-arid land act, and president of the next dry
farming congress, sounded the sentiment of the congress
when he made an earnest plea for more liberal land laws
to avoid injustice in proving up homesteads by settlers
and to permit the surface of coal lands, valuable for farm­
ing, to pass into the hands of private owners for agri­
cultural purposes.

The Secretary of Agriculture was asked to appoint a
commission to classify and designate the lands o f the
West, valuable only for grazing and place them on the
market to actual settlers.
In order to prevent monopolization of the range by the
great cattle and sheep kings, as once existed in the West,

The congress adjourned late this afternoon, selecting
Spokane, Wash., as the next meeting place, after the most
successful meeting in its history. Hundreds of new mem­
bers have been added, country-wide interest has been
aroused in the possibilities of agricultural development of


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Federal Reserve Bank of St. Louis

N e x t M e e t i n g in Sp o ka ne .

Saturday, November 6, 1909

33

T H E C O M M E R C IA L W E S T

the semi-arid W est, and Billings, in true western style,
has done itself proud. But the real beneficiary of this
great meeting has been the W e st itself, because the gather­
ing has been almost purely educational. Politics and poli­
ticians have been kept largely in the background, and the
delegates have used their time discussing and studying
advanced methods of developing their lands to the high­
est state of cultivation.
Congressman Mondell took a mild slap at the ultra­
conservation element among the Government officials when
he said:
'‘Fortunately we have a chief executive who believes
in the law, who has not lost sight of the fact that this is a
government of law and who insists that under his admin­
istration the law shall be respected as consistently and
persistently as it shall be enforced.
“ In a number of public land states where dry farm­
ing is practiced there are very extensive areas of coal
lands grading all the way from the lowest grade and least
valuable brown lignite up to and including high-grade
coals.
N e w Coal L a w s A ske d.

“ These areas are gradually being examined and classi­
fied and a coal land price placed upon them. They are so
extensive that much of the coal beneath them cannot be
utilized for hundreds of years to come. The coal land
price is too high to justify the purchase of these lands for
agricultural purposes, hence some legislation must be had
whereby the surface of such of these lands as are fit for
agricultural purposes may be acquired, otherwise they will
remain unproductive and unoccupied for an indefinite pe­
riod except as utilized or occupied for grazing purposes.
“ The law for the sale of isolated tracts should be
amended so that in regions subject to the enlarged home­
stead law a tract of any size less than the enlarged farm
unit can be sold.
"T h e isolated tract law should also be more liberally
administered than at present so that settlers can acquire
at a reasonable price, for pasturage purposes, tracts ad­
joining their farms which have not been considered worth
homesteading. This will also have the effect of increas­
ing the reclamation fund now greatly depleted.’’

The Montana
Fruit and Irrigation Co.
$200,000 Capital.

Announces the opening of
their 5,000 acres in the
Cove District near Billings,
Nov. 15.
T h is land is o ffe r e d in tracts o f 10
acres and u p w a r d s o n fa v o r a b le
term s.
T h e E astern s lo p e o f M on ta n a is
fast c o m in g t o th e fr o n t as a
fru it c o u n t r y .
The following list of directors and stockholders,
among substantial business men of the northwest,
gives the right backing to our contracts : F. E.
Kenaston, T. F. Danaher, W . S. Harris, Stuart
Harris, J. D. Holtzermann and W m . Capron of
Minneapolis; C. J. Weiser, Ben Baer and Henry
Reeves 6f Decorah; Robert Jones of Chicago;
E. J. W eiser of Fargo; Beecher Cox of Valley
City; Sam W eiser of Casselton and A. F. Amund­
son of Detroit.
F o r booklet and full particulars

Officers of t h e Congress.

The officers of the next congress were elected with­
out opposition. They are:
P resid en t— N. W . M ondell, m em ber o f C ongress from W y o ­
m ing, a u th or o f the enlarged h om estead act.
A m erican v ic e p resid en ts:
F irst— F ra n k G. B ow m an, Idaho Falls, Idaho.
S econd— H. B. H enning, A lbu querqu e, N . M ., se creta ry o f
th e N ew M ex ico territorial im m igration bureau.
T hird— R. W . T h atch er, P ullm an, W a sh ., m em ber o f the
fa cu lty o f W a sh in g to n A g ricu ltu ra l College.
E x e cu tiv e com m ittee, fo re ig n m em bers, in w h ich are also
v ice p resid en ts:
A lb e rta — G eorg e H a rco u rt, E d m on ton , d epu ty m in ister of
agricu ltu re.
C olorado— W . H. Olin, D en ver, agronom ist.
Id ah o— W . H. F hilbrick.
Illinois— G eorge J. S charschu g, ed itor cou n try lands d ep a rt­
m ent, C h icago R e co rd -H e ra ld .
Iow a— O ra W illia m s.
M innesota— M iley Bunnell.
M issouri— F. L. V an dergrift.
M ontana— A lfred A tk in son , a g ron om ist, M ontana A g ricu ltu ral
College, B ozem an , chairm an o f the ex e cu tiv e com m ittee.
N ev ad a— C. S. K n ig h t, U n iv ersity o f N evada, R eno.
N ebraska— D. Clem D exter.
N ew M e x ico — P ro fe sso r J. D. T insley, N ew M ex ico A g ric u l­
tural College.
N orth D ak ota— J. H. W o rst, agricu ltu ral college.
O klahom a— A n d e rs L. M ordt, Guym on.
O regon— J. M. P a tterson , T he Dalles.
S ask a tch ew an — W . R. M oth erw ell, com m ission er of a g r icu l­
t u r e , R egina.
T e x a s— G. A. M artin, El P aso, presiden t o f the T exas dry
fa rm in g congress.
U tah— J. W . P axm an , N ephi.
W a sh in g to n — H. L. M oody, Spokane.
W is co n sin — F. R. Crum pton.
W y o m in g — P ro fe s s o r J. D. T ow ar, U n iv ersity o f W yom in g ,
L a ram ie.
D istrict o f C olum bia— L y m a n J. B riggs, p h y sicist in ch arge
o f the U nited S tates D ep artm en t o f A gricu ltu re, W ash in g ton .
M e x ico — Senor In g L au ro V iada.
H u n g ary — Dr. L a sz to Goger.
R u ssia— Dr. T h e o d o re K r y sh to fo v itch .
John T. B urns w as re -e le cte d se cre ta ry o f the con gress

A L A S K A C E N T R A L R A I L R O A D SOLD.
Seattle, Oct. 28.— Control of the Alaska Central rail­
road, which extends from Seward, Alas., 56 miles northerly
toward the Yukon river, passed Tuesday from F. G. Jemmett, trustee for the stockholders of the Sovereign Bank
of Toronto, to the Alaska Northern Railway Co.

Address

: T . F. D A N A H E R ,

320 Railway Bldg., MINNEAPOLIS, MINN.

The

O. W . K ER R CO.
Nicollet Ave. and Third Street

M IN N E A P O L IS
W H E A T LANDS in

The Famous Bitter Root Valley,

Canada

Montana

“ INVESTMENTS”
We have some choice blocks of land adjoining the city suitable for whole­
sale or manufacturing locations, or they can be purchased and sold as
city lots at a fine profit. Do not overlook this opportunity.

SUBURBAN HOMES COMPANY,
/. D. O ’DONNELL. Secretary.

Let us tell you about them anyhow. They are so good we
want you to at least know what you might do with your open
money. A postal will make us get busy.

M O N T A N A R E A L T Y & L O A N CO.
Billings,

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Federal Reserve Bank of St. Louis

Montana.

BILLINGS, M O N TAN A.

DALY BANK & TRUST CO.
BUTTE,

Opportunities for YOUR Money

FRUIT LANDS in

S u n n y S o u th e r n A lb e r ta ,

(E s t a b l i s h e d

1882)

OF B U T T E
-

M ONTANA

Capital and Surplus, $ 3 0 0 ,0 0 0 .0 0

OFFICERS:—John G. Morony, Pres’ t; John D. Ryan, Vice Pres’ t; C. C.
Swinborne, Cashier; R. A. Kunkell, A ss’t Cashier; R. W .
Place, A ss’t Cashier.
Transacts a general banking business; issues letters of credit and drafts
payable in the United States and Foreign Countries.
W e aim to extend to our customers every accommodation consistent
with conservative banking.

W e respectfully solicit yo u r business

34

T H E C O M M E R C IA L W E S T

FIRST
NATIONAL

BANK

DENVER, COLORADO
Established 1865

Capital
Surplus
Deposits

$ 1, 000,000
1 ,0 7 7 ,5 7 6
2 2 , 0 0 0 ,0 0 0

U N IT E D S T A T E S D E P O S IT O R Y

Saturday, November 6, 1909

OFFICERS
D. H MOFFAT, President
THOS. KEELY, Vice President
F. G. MOFFAT, Cashier
C. S. HAUGHWOUT, Ass’t Cashier
J. C. HOUSTON, Ass’t Cashier
MAX WAESSEL, Mgr. For. Ex. Dept.

COLORADO NATIONAL APPLE EXPOSITION.
(S p ecial C orresp on den ce to the C om m ercial W e s t.)

Denver, Nov. 1.— Arrangements are now practically
completed for holding a great National Apple Exposition
in Denver during the first week of January. Early in the
year it was realized that Colorado was to have a wonder­
ful crop and people felt that it was time to get in line and
boost the fact that Colorado is a great apple producing
state.
The idea of holding a National Apple Exposition in
Colorado was advanced by Clinton Oliver, secretary of the
Colorado State Horticultural society, at a meeting of that
organization held in Denver last January. The proposi­
tion was met with instant favor and Mr. Oliver was au­
thorized to take up the work of securing sufficient backing
to make an undertaking of this nature a success.

The fruit growers of the state responded readily and
provided a fund of $5,000 for the preliminary work, and
the Denver Chamber of Commerce undertook to provide
the prizes and guarantee the other expenses of the show.
Under this plan a vast interest has been aroused and the
work is now in such shape that the exposition cannot fail
to be a wonderful success.
There is no charge for exhibit space and Denver stor­
age plants are now storing goods for the show. Entries
ai e open to the world and the prizes aggregate nearly
$25,000 and range from $25 for the largest apple to $1,000
for the best carload.
The annual convention of the W estern Fruit Jobbers
association will also be held in Denver during the same
week.

DRY FARMING CONDITIONS IN THE SOUTHWEST.
Prof. E. J. Iddings of the Colorado Agricultural Col­
lege, special field commissioner of the Dry Farming' Con­
gress, presented a comprehensive report covering a thirtydays’ tour of inspection of the Southwest, at the Billings,
Mont., convention last week.
He had traveled about 4,300 miles in New Mexico, Ari­
zona and Texas, stopping at important towns to secure
information concerning dry farming problems and meet
the farmers who are working out the solutions of these
problems.
His report described the climate and topo­
graphical conditions and the methods that are being used
in cultivation. Generally south of the Colorado line, said
Mr. Iddings, the major portion of precipitation comes in
July, August and September, making it difficult to succeed
with fall and winter grains and raising the problem of
selecting, seeding and maturing quick-growing summer
crops. The problem is complicated in the Southwest by
the prevalence of heavy winds during the spring months.
One of the crying needs of the Southwest is accurate in­
formation concerning normal rainfall and evaporation. Ac­
curate records were obtainable at Las Vegas, New Mex­
ico, El Paso, Texas, and Douglas, Arizona. A t other points
only estimates were available. In some sections volun­
tary observers are supplied with instruments from the
Federal W eather Bureau. It is to be hoped every com­
munity in the Southwest soon will take measures to as­
certain the normal rainfall and losses from evaporation.
It is difficult to estimate evaporation, but isolated and
' widely scattered records indicate a range of 60 to 90
inches in New Mexico and western Texas, and even more
in Arizona.
Professor Iddings described the soils of the Southwest
as uniformly fertile. One of the largest soil problems is
that of deficiency in organic matter.
He criticised the
advertising methods of land promoters.
“It is unwise
economic policy for a struggling community to use so
many of its men and so much of its energy in passing
lands from hand to hand rather than devoting their ef­
forts to development. Some of the towns of the Southwest
have the main streets decorated with entirely too many
real estate signs. The horseback farmer is all too promi­
nent and makes his voice heard too frequently and loudly
in dry farming councils. Some western lands need water,
more western lands need farmers.
Some communities
need a few feathers plucked from the wings of imagina­
tion and placed in the tail of good judgment. The specu­
lator is one of the problems. He holds his homestead in
the undeveloped state and waits for a handsome bonus.


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Federal Reserve Bank of St. Louis

He has banished the cattleman and sheepman and stands
in the way of the farmer.
“Everywhere the livestock proposition has been neg­
lected.
The general introduction of livestock into the
dij farming systems of the Southwest will mean success
in many cases where there are now failures; will assure
sustenance for the family in years of drouth and will
maintain fertility and increase the content or organic mat­
ter in the soils.
All that has been said concerning general conditions
in the Southwest serve as extenuating circumstance for
the reports of failure and cries of distress that have come
from this region during this last summer.
The last season has been, indeed, a discouraging one.
In none of the communities visited has farming been prac­
ticed more than three years. Here and there might be
found an early comer who had been in the region four or
five years, and in one case eight years. But the average
length of residence of the better class of farmers was
much under three years. As a result the land is raw,
there are not trees or shelter belts and there has not been
sufficient time to put down wells and put up permanent
improvements. Many of the settlers came without funds
and without livestock. Added to all this came the year
1909— one of unusually severe drouth for the Southwest.
W ith the great crops of Oklahoma partly destroyed by
lack of rainfall, with the wet belt of central and eastern
Texas suffering more than in the memory of the inhabi­
tants, what could be expected of the raw lands of western
Texas, New Mexico and Arizona, where the average precip­
itation is considerably under 20 inches? These last named
legions suffered especially severely during the winter
spring and early summer.”
Professor Iddings summed up the conclusions reached
as a result of his investigations, as follows:
Such problems as were mentioned early in this re­
port are capable of solution.
When the rainfall is so low that there is a question as
to its sufficiency for crop production, one experiment sta­
tion will make the test for the information of hundreds o f
people. The Speculator will drift on to other fields.
“ The progressive and substantial real estate firms will
remain to help devélop the resources of the country and
to bring to the problem capital and business enterprises.
“ Back-East farming will give way before such a cam­
paign as the Dry Farming Congress can and will carry on.
The scientific farmer will take the place o f the misfit.
“ The summer rainfall situation will be met by using
crops that not only grow, but thrive best under such con­
ditions. Experiment with and development of such crops
is work for the agricultural colleges and the seed-breeding
farms of the Southwest.
“ The blowing of the mulch and drifting of surface

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

soils was met by one farmer who planted his crop rows
between the corn stubs of the previous year.
“Large portions of the Southwest, there is reason to
believe, are best fitted for grazing.
Millions of acres,
however, are capable of profitable farming. The shortcom­
ings of this latter portion, an agricultural empire in itself,
the pluck, science and genius of man will in time over­
come. Its natural advantages are dormant, awaiting the
touch of his moulding and guiding hand.”

Guaranty of Deposits Under Oklahoma Law.
(Continued from Page 20)
each other. T he situation is really prep osterou s, and w ou ld be
lau gh able w ere it n o t so serious fo r O klahom a.
M i n e r a l P o i n t F a i l u r e C o m p a re d .

B e fo re closing, p erm it m e to re fe r to the re ce n t ba n k fa il­
ure a t M ineral P oint, w h ich , to som e m inds, fu rn ish es a p a r ­
allel to the O klahom a bank failu re.
T his is one o f the d e ­
p lora ble cases which, com e to light fro m tim e to tim e and
w h ich sh ock a , com m u n ity and m ake it read y to receiv e an y
plan w h ich , a t the m om ent, appears likely to p re v en t sim ilar
disasters. W ill a law g u a ra n teein g d eposits do it?
C ond ition s in O klah om a seem to m e to p rov e e x a ctly the
con tra ry . In stead o f bein g a rem edy, the law there has been
la rg ely responsible, in m y opinion, fo r th e failu re o f the C o ­
lum bia bank. W h ile in th is case the m on ey loss to d ep o sit­
ors m a y be little o r nothin g, a ro tte n ba n kin g con d ition is
bein g developed, th a t in the end w ill su rely ca u se w id esp rea d
trou ble and su fferin g fa r beyon d that w h ich m ay be due to
th e failu re o f a single bank, su ch as the M ineral P oin t in s ti­
tution.
W h ile I have no fa ith in the g u a ra n ty idea, I do not think
w e sh ould sit still and m ake no effo rt to im prove the m a n ­
agem en t and regulation o f banks on p rop er lines. S om e w ay,
fo r instan ce, should be fo u n d to p rev en t one m an be in g left to
run a bank as h e pleases, w ith ou t ch e ck o r hin dran ce b y fellow
officers o r d irectors. Im provem en ts also in th e exam in ation s
m ade b y the nation al an d state ba n kin g d epartm en ts should
be b rou g h t about. In our state B an k C om m ission er B ergh , I
believe, is d oin g all th a t can be ex p ected o f him , w ith the
m ean s a t his com m a n d ; bu t the law under w h ich he acts can
b e con sid erably stren gth ened.
Governor

H a s k e ll .

A s an in d ica tio n of the p o sitio n taken b y G overn or H askell
and o f his a ston ish in g co n d u ct in hand ling the affairs of the
C olum bia B an k & T ru st Co., I w an t to p oin t ou t that W . L.
N orton , th e p resid en t o f the fa iled bank, m ust have been r e ­
sp on sib le fo r m any o f the illegal a cts done b y the bank in
bu ildin g up its d eposits and loan in g its funds. T hat the bank
paid in terest in e x cess o f the rate p erm itted by law , that it
m ade o v e r-lo a n s and that it did n ot m aintain ad equ ate r e ­
serves, is b ey on d question. T he official n otice w h en the bank
w a s ta k e n o v e r b y th e ba n k in g boa rd say s:
“ T h e bank has loan ed fa r too g reat a p rop ortion o f its funds,
so th a t its supply o f ca sh un replen ished is inadequate to m eet
d em and s o f bu siness or m eet the requirem ents o f la w .”
T he ba n k in g law is m ost d ra stic in som e o f its provision s,
an d ex p re ssly p rov id es in S ection X X V I that—
“ E v e ry banker, officer, em ployee, director, or ag en t o f an y
ba n k w h o shall n eg lect to p erform an y d u ty required b y this
a ct, o r w h o shall fa il to con fo rm to an y law ful requirem ents
m ade b y th e bank com m ission er, shall be d eem ed gu ilty o f a
felon y, an d upon co n v ictio n th e re o f shall be punished b y a fine
n ot to ex ceed one thousand dollars, o r b y im prison m en t in the
p e n ite n tia ry not to ex ce e d five years, or by both su ch fine and
im p riso n m e n t.”
A n d y et, in spite o f this and o f the g ross m iscon d u ct of
P resid en t N orton , the D aily O klahom an, a p ap er frien d ly to
th e a d m in istra tion , in its issue o f O ctob er 12, published the
fo llo w in g :
“ B e fo re le a v in g fo r A rd m ore last nigh t G overn or H askell
expressed h im self a s be in g high ly satisfied w ith the se ttle ­
m en t o f the a ffa irs o f the C olum bia B an k & T ru st Co., and
com m en d ed P resid en t W . L . N orton fo r the a ssista n ce r e n ­
d ered th e state in the w o rk o f liqu idation. T he g ov ern or said:
“ ‘I think Mr. N orton is to be w a rm ly com m end ed fo r puttin g up
a large a m ou n t o f his p riv a te fo rtu n e and ta k in g an a ctiv e p e r ­
son al p art in c o lle ctin g the assets o f his bank. W e fou nd a fte r
ca re fu l ex a m in a tion th at Mr. N o r to n ’ s assets w e re ju st as he
told us th e y w e re be fo re w e assum ed ch a rg e o f the bank. W h ile
a p art o f these a ss e ts m igh t be slow paper, it w ill collect and
liqu id ate so th a t M r. N o r to n ’ s p atron s an d the p u b lic will not
lose a cent. I t also speaks volum es fo r his in teg rity in that
he h as v olu n teered to m ake g o o d e v e ry o blig ation if it tak es his
la st dollar, w h ich w e are glad to say it w ill n o t do.
“ ‘T h e state g u a ra n ty fu nd w ill be repaid in full, and I m ay
sa y th a t this is ab ou t the first tim e in ba n kin g h istory w here
a b a n k e r h as been a llow ed to co n clu d e the liqu idation o f his
ow n b a n k .’ ”
T h is illustrates som ew h a t th e e ffe ct o f m ixin g up p olitics
w ith business.
F o r t h e H o n o r of t h e Profession.

B u t a b o v e all, there should be a stron g er sp irit o f c o -o p e r ­
a tion a m o n g b a n k ers them selves fo r the h on or and g ood of
th eir p rofession . T he special ex am in ers em ployed b y a num ber
o f cle a rin g hou se a ss o cia tio n s are d oin g excellen t w ork, and
the sy ste m is ap p rov ed b y c o n se rv a tiv e ba n k ers w h erev er it
h a s been tried. I have been told re ce n tly b y bankers o f M in ­
n ea polis and K a n sa s C ity th a t they w ou ld not be w ith ou t th eir
ow n clea rin g hou se exam iners, w ho, in several instan ces, h a ve
alread y been the m eans o f c o rre ctin g abuses w h ich , if allow ed
to run, m igh t have led to serious trouble. W h ile the M ilw a u ­
k ee clearin g house h as not y e t ad op ted the plan, it has been
discu ssed, and I hope it w ill not be lon g b e fo re it is put in
op era tion there.
In the m eantim e several M ilw au k ee banks
em ploy ch artered a cco u n ta n ts annually to g o over th eir affairs
an d re p o rt in detail to the d irectors. E v en tu ally I ex p ect that
the clea rin g hou se asso cia tio n s in all our cities w ill find it
desirable to fall into line, and b y v olu n ta ry c o -o p e ra to n put in
fo r c e im proved m eth ods fo r the p ro te ctio n o f their depositors
and, stock h old ers. W h ile I h a ve n ot w orked out the details, it
seem s to m e that there is no reason w h y co u n try banks can n ot
be form ed in to group s fo r th e purpose o f o rg a n izin g and e m ­
p loyin g th eir ow n exam iners, ju st as is done b y c ity clearin g
hou se a ssocia tion s. T he a d v an tag es arc obvious, an d th e e x ­
pense should n ot be large, con sid erin g the v a lu e o f the serv ices
rend ered and the sav in g th at w ou ld a ccru e to all banks b y p re■v e n tin g u n n ecessa ry fa ilu res a m q b g th eir num ber.- B an kers
them selves, b y realizin g in tim e the ju stice o f the p u blic d e ­
m and fo r th e be st p ro te ctio n possible, should take p rop er steps
to put th eir affairs in g ood order and keep them there. B y this


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Federal Reserve Bank of St. Louis

35

m eans on ly can th e y p reven t the a g ita tion fo r qu ack rem edies,
w h ich in p ra ctice are w orse than the disease w h ich th ey seek to
heal.

WE WILL SELL YOUR BANK
Purchasers are already on our lists by volun­
tary request, ready to act at once and private­
ly, w i t h o u t solicitation.
No advertising
necessary nor used.

Confidentially - Without Publicity
Our field is the United States. W e sell banks
regardless of size or location.
Bank positions confidentially filled. Ask for
sample copy of the “ Live W ir e .”

THE CHARLES E. WALTERS CO.
COUNCIL BLUFFS, IOW A

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

36

The Canadian Bank of Commerce
H E A D OFFICE,

Paid-up Capital, $10,000,000

TORONTO

Rest, $6,000,000

Established 1867

B. E. W A LK E R , C. V . 0 ., LL. D., President

ALE XAN D ER LAIRD, General Manager

BRANCHES THROUGHOUT C A N A D A , IN THE UNITED STATES AN D ENGLAND,
Including the follow ing in W estern Canada:

IN A E R E R T A
In n isfail
B aw lf
C algary (3 offices) Inn isfree
C arm angay
L eth brid g e
C laresholm
M acleod
Crossfield
M edicine H a t
E d m on ton
M onarch
N anton
G leichen
Olds
G ranum
F in ch e r Creek
H a rd isty
P onoka
H ig h R iv e r
A

Ge ne ra !

Banking

IN M A N IT O B A
B rand on
G ran dview
Carm an
N eep aw a
D auphin
P orta g e la Prairie
D urban
R iv ers
E lgin
Sw an R iv er
E lkhorn
T reh erne
G ilbert P lains
W in n ip eg (7 o f ­
fices)

P rov ost
R ed D eer
S tavely
S ton y Plain
S trath con a
V eg rev ille
V erm ilion
W a rn e r
W etask iw in

Business is T r a n s a c t e d .

A

Sa v in g s

IN S A S K A T C H E W A N
B roderick
L ash bu rn
R ad isson
C anora
L loyd m in ster R e g in a
D elisle
S askatoon
M elfort
D rin k w a ter M elville
S hellbrook
T ugaske
E lbow
M ilestone
H aw arden
M oose Jaw
V on d a
H erbert
M oosom in
W a d en a
H u m boldt
N okom is
W a tro u s
K a m sa ck
N. B a ttleford W a tson
L angh am
O u tlook
W eyb u rn
L anigan
P rin ce A lb ert W ilc o x
Y ellow grass

B a n k D e p a r t m e n t is Open a t A ll t h e B r a n c h e s N a m e d A bo v e .

FINANCIAL NEWS OF WESTERN CANADA.
(S p ecial C orresp on den ce to the C om m ercial W e s t.)

Winnipeg, Nov. 1.— Last month was a record one in the
banking business. The volume of clearings was greater
by over $11,000,000 than it has ever been before. October
is not usually the month when the high point in clear­
ings is recorded; in past years November has been the
big month. It is quite possible that it will be so again
and that the monthly clearings will for the present month
aggregate over $100,000,000.
Speaking with some of the local bank managers I gath­
ered that they were not at all satisfied with the way the
wheat is being held by the farmers. Although over 30,000,000 bus has passed inspection at Winnipeg and has
gone forward to market, a larger percentage of the crop
than has hitherto been shipped by the end of October, it
is quite probable, inasmuch as the deposits in the Canacan hold wheat is doing so, and a good'number are holding
it back that cannot justly afford to. It is difficult to ac­
count for this policy, except that the Grain Growers asso­
ciation is advising farmers to hold their wheat. In the
opinion of many of the grain men, who study carefully the
world's wheat situation, there is not much hope of wheat
getting higher than its present level. Present prices are
regarded by some of the bankers as good prices, and they
should induce the farmers to sell. But they are not do­
ing so except, generally speaking, where circumstances
compel them to.
T h e H e a v y Crop M o v e m e n t .

Inspector Gibbs, of Fort W illiam , has compiled some
interesting data as to the receipts of cars at the lake
terminals this season, compared with 1908.
From Sep­
tember 1 to October 21, 21,771 cars of wheat, 2,050 cars of
oats, 1,022 cars of barley, and 104 cars of flaxseed reached
the water front, making a grand total of 21,196 cars,
against 15,884 for the same period in 1908. Of these cars
the C. P. R. carried 16,702, an increase over last year of
69 per cent., and the C. N. R. 8,494 cars, an increase of 41
per cent, over last year. Of this enormous total of cars
only 614 w,ere consigned to King’s elevator, which is
known as the hospital elevator. This speaks volumes for
the condition of the crop.
E m e r g e n c y C u r r e n c y in Use.

A dispatch from Ottawa to Winnipeg indicates that
some of the Canadian banks have had to take advantage
of the provision of the Bank Act enabling banks to issue
special currency during the crop moving season. The dis­
patch says that only a small amount will be issued. That
is quite probable, inasmuch as the deposits in the Cana­
dian bank continue to grow, despite the fact that so much
more cash is needed for commercial, and especially crop
moving, purposes. Usually there is a big expansion in cir­
culation at this season of the year, but it has not as yet
reached the proportions that were expected. As yet the
notes in circulation are only about $3,000,000 more than
a year ago. From August to September of the present
year there was an expansion of slightly less than $8,000,-


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Federal Reserve Bank of St. Louis

000, or 10.2 per cent. Although as indicated already the
movement of the crop has been in volume much greater
than hitherto, the banks do not appear to have had any
trouble. Resort to expensive emergency must have been
made by banks whose grain business has amounted to
unusual proportions and rather than decline business
coming their way have taken advantage of the special
crop currency. That Canadian banks have really not been
taxed in the matter of crop moving seems evident from
the fact that their call loans in New York amount to $131,634,000 or 119.9 per cent, more than a year ago; deposits
on demand are 30.9 per cent, greater, and deposits with­
drawable after notice, 15.5 per cent, greater. There is in
consequence no uneasiness as to money for crop moving.
The fact that the currency expansion is not much
greater, in view of a bigger crop, than in previous years,
is due very largely to the fact that now every shipping
point almost is next door to the branch of a chartered
bank. W hen the farmer gets his cash for the wheat it
goes to the bank and it is immediately put into use again.
A few years ago the notes paid out for grain were kept
by the farmer until he came to Winnipeg or went to some
distant point where the money could be deposited with
some chartered bank. Now only a small proportion of the
notes go into “ stockings.” They are kept busy, and hence
less of them suffices to move the crop.
T h e G r o w t h of B a n k B ra nc he s .

W hen referring to crop moving and the part the bank
branches play in it, it is as well to bear in mind that bank
branches are being opened in western Canada at a very
rapid rate.
During October no less than twenty-three
branches of chartered banks opened their doors at new
points in the western provinces, and there does not appear
to be any cessation of this activity. Speaking with the
western superintendent of the Canadian Bank of Com­
merce this morning, I was informed that within the next
few days his bank would open branches at Virden, Yorkton and Elfross. These are all very desirable centers in
the midst of a splendid class of settlers. It is noteworthy
that many of the new branches opened during the past
few years have been what might properly be called pros­
pects. The bank building was put up as the first boarding­
house, livery and feed stable or elevator was being reared
with the haste characteristic of the birth of any new
prairie town.
Time only could determine whether the
projected town would ever materialize. Under such cir­
cumstances it would be quite natural to expect that many
of the branches would never get enough business to make
themselves sustaining, but the actual experience has been
that few mistakes have been made. W hen the settlers are
of a good class and the land contiguous to the new townsite is average, it is only a year or so before there is
enough business to maintain a profitable branch.
C a n a d ia n

Im m ig ra tio n .

The immigration to Canada for September was 15,343,
an increase of 52 per cent, over September of 1908. The
total immigration for the first six months of the present

Saturday, November 6, 1909

fiscal year was 120,933, as compared with 100,477 for the
same period of last year, an increase of 20 per cent.
The immigration for the six months from the United
States was 56,486, as compared with 34,259 for the same
period of last year, an increase of 65 per cent. The immi­
gration via ocean ports was 64,447, as compared with 66,218 for the same period last year, a decrease of 3 per cent.
Big In cr e a se in Cu s to m s Co llections.

The customs house receipts for September were about
$1,000,000 in excess of those of September, 1908. The total
collections amounted to $5,236,736, as compared with $4,316,473 in September, 1908, an increase of $920,263. For
the first seven months of the fiscal year the customs col­
lections exceeded those of the same period last year by
$6,838,614.
Rea l E s t a t e A c t i v i t y .

High class properties in Winnipeg are changing hands
quite frequently and some very handsome profits have
of .late been made.
A Canadian from Guelph, Ontario,
bought 100 feet on Portage avenue a week or so ago at
$1,000 per foot, and a few days ago sold it again at $1,350
per foot. Similar transactions are being recorded daily.
A valuable site on Portage avenue has been purchased by
the Sterling Bank of Canada and it is said to be the in­
tention to commence, at an early date, the erection of a
handsome building.
The bank has secured a site upon
which still stands one of the original buildings erected on
Portage avenue. W hen this is replaced by a handsomer
structure there will only remain the Curry block, upon
which pioneer structures are still standing. Mr. Curry is
said to have refused $3,500 per foot for his property, a
price that would yield to him $1,000,000, as against a cost
price about twenty years ago of approximately $20,000.

English Capitalists in Western Canada.
(S p ecial C orresp on den ce to the C om m ercial W e s t.)

Winnipeg, Nov. 1.— Compared with capitalists from the
United States the Britishers have very little money in­
vested in industrial enterprises in the Canadian W est. On
the whole they have more money invested here, but it is
confined to first mortgages, municipal securities and other
gild-edged investments that do not carry a very heavy
rate of interest. They have not as yet learned to take
advantage of the opportunities to make big profits, as
have the investors from the United States. Two members
of the London Stock Exchange have just been touring the
W e st and they have formed the good resolution to tell
the British people that Canada is a good place in which
to invest money.
W ith this idea firmly impressed in their minds and
glowing with enthusiasm over the wonderful development
and prosperity of Canada, the two Londoners, Allan T.
Neville and H. W . Birks, are returning to England.
“W e are convinced more than ever of the unlimited
chances for investment of capital here, and when we were
in the W est, you may be sure that we let no opportunity
go past us.”
Mr. Birks was in Canada eleven years ago and today
he says that the progress and development is marvelous.
‘‘I cannot express it in words,” said he, “ but it seems like
a great transformation scene from a theatre. Everything
seems so different. Winnipeg is now a city of solid busi­
ness houses which indicate good methods, and from what
I have seen the business men of Canada are of the best
kind.”
“British capital,” said Mr. Neville, “hitherto has been
spent mostly in eastern Canada and has not found its
way out W e st so much, but as soon as the marvelous op­
portunities are known you will find money flowing in very

“To illustrate the value of railroad stock I might men­
tion that in the twenty-eight years association I have had
with the London Stock Exchange I have sold C. P. R.
shares as low as 35 and as high as 208.”
Speaking on the exhibition project, Mr. Neville said:
“ I view the proposed exhibition most favorably. It is an
excellent thing and will make Winnipeg the great center
of the industrial interests for which it is eminently
suited.”

A C T I V I T Y IN V A N C O U V E R .
An American steel company proposes to erect a branch
plant for making steel by the open-hearth process in Van­
couver, B. C., writes Consul General George N. W e s t; also
rolling mills, tube works, nut and bolt works, freight-car
works, etc., with 1,500 employees to start. Another Ameri­
can concern from the state of Washingtonn has bought 30
acres and will erect a branch iron works, with a blast
furnace, machinery shop, etc. A saw-making company will
build a new factory in the suburbs. A fish-packing com­
pany will erect a $1,500,000 cold-storage plant at Claxton,
on the Skeena River, for freezing salmon and halibut for
shipment in casks to eastern Canada, the United States
and Europe. These are only a few of the new industries,
while many others are projected. Banks and business
concerns are constructing new modern buildings, some
from 5 to 13 stories high, many with steel frames. These
and nearly all other new buildings have cement rubble
concrete foundations. A few business structures and many
dwellings are built of concrete blocks. The building per­
mits issued from January 1 to September 18 covered $5,478,012 of construction work. Great activity is also mani­
fest in real estate transactions, the daily transfers for sev­
eral months having amounted to $500,000.
M'asset is a new town being opened up on Masset Inlet,
Queen Charlotte Islands, which have large timber areas,
valuable copper and other ore deposits, which are under
gradual development, while good sea fishing banks afford
another industry. There are about 300,000 acres of land
on the islands suitable for cultivation.
The Province of British Columbia is now receiving the
attention of investors from eastern Canada, the United
States and England, and with the further development
of its rich resources of coal and other minerals, timber,
etc., its wealth and population should steadily increase.
W I L L BE L A R G E S T S T R U C T U R A L S T E E L P L A N T .
Chicago, Oct. 28.— George W . Jackson, incorporated,
has purchased a large tract of land on the Chicago river
in the northwestern part of the city, in addition to that
now occupied with its bridge and structural works, and
will expend about $2,000,000 in the construction of new
buildings and equipment.
The new buildings and ma­
chinery will make it possible to turn out 6,000 tons of
fabricated steel monthly, making the plant the largest
single structural steel works and placing the company
in a position to speedily and economically turn out struc­
tural shapes.
N E W UNI O N PACIFIC CUT-OFF.
Denver.— The Union Pacific railroad proposes building
an air line from Dodd, Colo., to Denver, thereby cuttingoff 36 miles from Omaha to this city. The new line will
penetrate the heart of the Burlington’s territory, and will
open up a rich agricultural section, besides considerably
reducing the running time of passenger trains.
The
speed war is said to be largely responsible for the decision.

Guaranteed First Mortgages in W estern Canadian Farm Lands,
5% net
and Winnipeg Central Business Property.
6% net
Persons having private or Trust Funds to invest, will find that these securities
combine all the features of an absolutely safe and profitable investment. Cor­
respondence solicited, statistical and other data forwarded on application.

WILLIAM

GRASSIE,

Real E sta te and Financial Broker,
54 Aikins Bldg., 221 McDermot A ve., P. O. Box 645, WINNIPEG, C A N A D A

W A L C H L A N D CO.
S 1 V Union Bank Bldg.,

W IN N IP E G ,

LANDS

-

CANADA

IN V E S T M E N T S

SCRIP

ACREAGE ADJOINING MELVILLE, SASK.,
The Hudson Bay Route Terminal

WINNIPEG I
Sign and mail coupon below and receive during the next 365 days free of charge

to

readily.
“ The British capitalists are always looking for invest­
ments and are always ready to invest in Canadian rail­
roads.
If the stock of the Canadian Northern railroad
were to be put on the market in London it would be taken
up immediately. Investors are buying bonds of the Cana­
dian railways readily.


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Federal Reserve Bank of St. Louis

37

T H E C O M M E R C IA L W E S T

HANDSOME ILLUSTRATED STATISTICAL AND LITERARV PRODUCTION
picturing positive proofs of the WONDERFUL DEVELOPMENT taking place
in Winnipeg and Western Canada and the

Opportunities Open lor Capital, Industries and Ambitious Men
e of )
N.B,—If you want to make more
iast, !
the future than you have of the past,
write in space below specifically liness of I
business you want information on

City.,

Address—CHAS. F. ROLAND (Commissioner), WINNIPEG, CANADA

38

T H E C O M M E R C IA L W E S T

Saturday, November 6, 1909

f

The Exchange National Bank
SPOKANE,

W ASH IN G TO N

Capital, $1,000,000

Surplus, $250,000

With large capital, extensive connections and con­
servative policy, the Exchange National Bank is
fully equipped to handle any banking business
entrusted to us.
W E D E S IR E Y O U R N O R T H W E S T E R N

B U S IN E S S

OFFICERS

Edwin T. Coman,
Thos. H. Brewer,
President
Vice Pres.
Wm. Huntley, Vice-Pres.

C. E. McBroom,
E. N. Seale,
Cashier
Ass’t Cash!
M. W. Lewer, Ass’t Cash.

SPOKANE’S $1,000,000 BOND ISSUE.
(S p ecial C orresp on den ce to the C om m ercial W e s t.)

Spokane, Nov. 1.— Julius Galland, president of the
Northwestern Loan & Trust Co., of Spokane, representing
an eastern bond house, has submitted an offer to handle
the $1,000,000 issue of bridge and water extension bonds
at par on a 4 per cent, basis, in payment of a commission
of $10,000. He also says that counsel has advised that
the city can legally pay a commission, if it desires. Of­
ficials of the city declare the city cannot legally sell its
bonds and pay a commission. This issue was advertised
at 4 per cent, some time ago and not a bid was received
at that rate. There is now an ordinance before the coun­
cil to readvertise the bonds at 4 y2 per cent. If they sell
at that figure it would cost the taxpayers $113,000 more
than the commission asked by Mr. Galland’s people. If
the bonds are advertised at 4 V2, they will probably sell
at a premium, depending upon the bond supply and the
condition of the market, but even if the premium should
be enough to bring the rate down to 4.20, the Northwest­
ern Loan & Trust Co’s, offer would save the city $40,000
in the next twenty-five years, which is the life of the
bonds.
No te s.

— Reports just filed with the state railway commission
by the Great Northern and Northern Pacific Railway com­
panies show more than $28,000,000 of business was done
by them in Washington during the year ended March 30,
1909.
The Northern Pacific’s state and interstate busi­
ness, originating and terminating in Washington, aggre­
gated $21,046,000, of which $10,423,000 was strictly state
business.
On the Great Northern $4,207,000 was state
business and $3,640,000 was interstate traffic.
Average
passenger rates per mile were less on the Great Northern
than on the Northern Pacific, being respectively, 2.71c
and 2.82c. The Great Northern carries 1,459,000 passen­
gers in the state and the other road handled 2,792,000.
The Northern Pacific hauled 8,391,000 tons of freight in
the state, and of this 528,000 tons was grain, 1,426,000
tons was lumber and 2,617,000 tons was other forest
products.
— Jay P. Graves, president of the Spokane & Inland
Empire Electric railway system, his wife and son, Clyde
M. Graves, have invested $167,500 in local realty and real
estate loans at 6 and 7 per cent, during the last few
days, the latest being a loan of $80,000 for ten years on
the new Shubert Theater building, $10,000 to G. W . Post
on assignment from the Union Trust Co., and $30,000 on
the Grote-Rankin building. There are persistent rumors
that James J. Hill has acquired control of the electric
lines, but this is denied by Mr. Graves, who says he is
buying mortgages because he desires to invest rather
than speculate in real estate.
— Officers and members of the Farmers Co-operative &
Educational union, which has 10,000 members in W ash ­
ington, Idaho and Oregon, plans to make Nez Perce,
Idaho, a financial center for the prairie country in central
Idaho. The union is back of the Union State bank of
Nez Perce, which will begin business early in November.
The bank is incorporated for $50,000 and the stock is
held by farmers. The Nez Perce union is the strongest
in the Inland Empire, the assessed valuation of the prop­
erty owned by its members being $1,500,000.
— Robert Dunbar Brooke has been elected assistant
cashier of the Fidelity National bank of Spokane, of which
his father, George S. Brooke, is president. He was born
at Sprague, W ash., in 1884, and since he was fifteen


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Federal Reserve Bank of St. Louis

years of age has spent his vacations in the employ of
the bank and has filled every clerical position. He was
graduated from the Hill Military academy of Portland,
Ore., in 1903 and afterward was in the employ of the bank
for two years, and entered Stanford university and gradu­
ated from the engineering course in the spring of 1909
when he joined the bank staff.
The United States Security Co. of Spokane has been
organized by C. R. Hesseltine and his associates to con­
duct a general banking business and financing business
with a string of banks in various parts of the Inland
Empire. The other incorporators are C. W . McCoy, presi­
dent of the Eden Orchards Colonization Co.; S. S. Bassett,
attorney; H. T. Strand, president of the Strand Mercantile
agency, and W . A. Peterson, formerly a banker at Car­
rington, N. D. Mr. Hesseltine announces that a bank and
office building will be erected in Spokane as headquarters,
early next year.
— Farmers owning land under the Cascade canal in
the Ellensburg district in central Washington, west of
Spokane, have decided to spend $300,000 in improving the
works to water 10,000 acres of land. B. F. Reed, presi­
dent of the Commercial club of Ellenbsurg, will soon
appoint a committee to prepare plans and means of financ­
ing the project.
The owners favor levying an assess­
ment against every acre under the canal, the rest of the
money required to be raised by issuing bonds. The proj­
ect calls for a tunnel through the hills for more than
two miles.
At one point the canal tunnel will be 240
feet below the surface.
This plan will do away with
several thousand feet of costly flume along the sand hills
and will shorten the feed canal by several miles.
— Adolph F., Edward H. and Oswald N. Suksdorf, ot
Spokane, have incorporated the Columbia River & Mount
Adams Railroad Co. with a stated capital of $2,000,000.
The company has plans to build a railroad with branches
from a point on the Columbia river in Klickitat county,
W ash., northerly through parts of Klickitat, Yakima and
Skomania counties to Mt. Adams in the two latter coun­
ties. It will also operate steamboats and ferries on the
Columbia river, generate electric current for light and
power purposes, mine coal and handle timber.
— The Mutual Life Insurance Co. of New York has
made a loan of $75,000 at 5 per cent, to John Hieber on
the Bennett building at Howard street and Main avenue
and the Real Estate building at Stevens street and Main
avenue. This is the first loan the company has made in
its own name in Spokane, though it has placed several
through the United States Loan & Trust Co.
W . H.
Shields, city superintendent, announces that the com­
pany has decided to replace the money it gets from Spo­
kane in the local field. This is the first 5 per cent, loan
off Riverside avenue.
— The First National bank of Libbey, Mont., has been
organized with a capital of $25,000; C. E. Lukens, presi­
dent; F. M. Plummer, vice president; C. A. Adams,
cashier.
The Zillah bank of Zillali, W ash., has been incor­
porated with a capital of $25,000. J. D. Cornett of Toppenish, W ash., is manager.
J A P S W A N T BAR T O I M M I G R A T I O N R E M O V E D ,
victoria, B. C., Oct. 28.— Advices brought by the Japan­
ese steamship Tango Maru are that strong efforts will be
made in connection with approaching treaty revision by
Japan to have removed the last clause .of Article II of the
treaty with the United States which prevents Japanese im­
migration to America. Provision will be made to reserve
the coastwise shipping trade, and foreigners may be
granted the privilege of owning land except in Formosa
and Hokkaido.

39

T H E C O M M E R C IA L W E S T

Saturday, November 6, 1909

S E A T T L E
DEXTER
SEN D

HORTON
US

ALL

&

C O .,

YOUR W E S T E R N

Capital, Surplus and Profits, $ 1 ,3 5 0 ,0 0 0 .0 0 .
OLDEST

BANK

IN

THE

First National Bank of Seattle
SEATTLE,

W ASH.

M. A. ARNOLD, President.

J. A. HALL, Cashier.

BANKERS

B U S IN E S S .

K esou rces, $ 1 2 ,0 0 0 ,0 0 0 .0 0

STATE

OF

W A S H IN G T O N

National Bank of Commerce
OF S E A T T L E ,
CAPITAL ...........................................$1,000,000.00
SURPLUS AND PROFITS .. ..
880,000.00
RESOURCES
............................... 13,500,000.00
T H E L A R G E S T B A N K IN W A S H I N G T O N

SEATTLE IN A NEW LIGHT.
(S p e cia l C orresp on den ce to the C om m ercia l W e s t.)

Seattle, Oct. 25.— Seattle men who have recently visited
in the East bring back reports which indicate that a new
light has broken upon many financiers and investors east
of the Mississippi river in regard to Seattle and the Pa­
cific Northwest, as the place for investments and the
most conservative men in Seattle expect a large influx of
eastern men and money in the next year or two. Speak­
ing of this, James Black, formerly of St. Louis, and who
has had the contract for some of the largest buildings in
Seattle, said:
“ Before a year has elapsed, Seattle will
begin to reap the benefits that are coming, because the
Alaska-Yukon-Pacific exposition attracted the attention of
the world to the Pacific Northwest; and I believe I am
justified in predicting that the end of the next twelve
months will see millions of eastern capital invested here.
I have talked to eastern and middle western capitalists
who had never visited Seattle until last summer, and they
have told me that where, a year ago, they wouldn’t have in­
vested a cent here, they now are determined to interest
themselves in the development of the city and the North­
west.”
Judge W . D. W ood, president of the Trustee company,
recently returned from a nine weeks’ trip spent in visit­
ing the principal cities, said: “ The good results that will
come from the Alaska-Yukon-Pacific exposition will be
incalculable. My visit in the East satisfies me that the
financial and commercial benefits to be derived from the
exposition will be the best of any single thing in the his­
tory of the Northwest.”
Notes.

— Engineer Charles H. Lum of the National Under­
writers association is in Seattle preparing for a new in­
surance survey of the city.
— A $76,000 bond issue of the Drainage District No. 2
at Chewelah, Stevens county, has been bought by Foley
& Gleason of Minneapolis. The bonds run for five and ten
years and bear 6 per cent, interest.
— The Metropolitan bank of Seattle has become a mem­
ber oi the Seattle Clearing House association.
This
makes the membership of the association nineteen. The

Metropolitan, since its organization, has cleared through
other banks, but its business has reached such a volume
as to require membership.
— Samuel H. Eichner, organizer and cashier of the
Pacific State bank of South Bend, Washington, died last
week at his home in South Bend. He was 49 years old
and is survived by his widow and four children.
-— Current expense refunding county bonds to the
amount of $220,000, issued by Stevens county, was
awarded to N. W . Halsey & Co. of Chicago. The bonds will
bear 4 y2 per cent. A premium of $1,180 was paid.
— The Northwestern Mutual Fire Insurance association
of Seattle, in its quarterly report, just issued, shows that
after paying 55 per cent, to its policyholders on dwellingpolicies, $40,882 of undivided profits was added to the
surplus.
— The opening of the Zillah bank at Zillah, Yakima
county, Washington, was celebrated by a banquet at which
eighty-one ranchers of Zillah, who had organized the bank,
sat down to the table. The bank has $25,000 capital stock.
J. D. Cornet is manager.
— Announcement has just been made that a subscrip­
tion will be started at once in an effort to raise $1,000,000 with which to build a new interurban electric rail­
way to be known as the Independent-Seattle-Tacoma Elec­
tric Railway Co. The treasurer chosen under the tenta­
tive organization is Second Vice President R. R. Spencer
of the National Bank of Commerce. The other officers
are: President, Frederick K. Burch of Seattle; vice presi­
dent, Edward Nicholas Chase of New Y ork; and secre­
tary, Isaac P. Calhoun of Kent. President Furth of the
Puget Sound Electric Co. is also president of the Puget
Sound National bank, of Seattle.
— Michael Earles, vice president of the American Sav­
ings Loan & Trust Co., has acquired controlling interest
in the Hanford Irrigation & Power Co., for which there
was a lively contest before the matter was settled. Robert
E. Strahorn, president of the North Coast railway,, made
an effort to buy the stock necessary to control but he was
headed off by the Seattle man.
Presumably Mr. Strahorn’s plan was to acquire the power for use on the
North Coast railway. The holdings of the company are
valued at $2,000,000. A bond issue of a half million dol­
lars nas been arranged, the proceeds of which are to he
used in enlarging the company’s plant at Priest Rapids.
The Hanford company owns one of the most valuable
water rights in eastern Washington.

PHENONENAL SHOWING OF BANKS.
(S p ecial C orresp on den ce to the C om m ercia l W e s t.)

Seattle, Nov. 1.— The second anniversary of the panic ot
1907 invited some striking comparisons of conditions in
Seattle and the Pacific Northwest then and now. The call
of August 22, 1907, found the deposits at high mark in the
history of Washington; the total for the state having been
$151,517,000, and loans $106,782,000. The next general call
of the state and national banks in this state was Feburary
14, 1908, when the deposits had dropped $16,000,000 and
loans $21,000,000, leaving a total of $135,000,000 in deposits,
and loans of $85,000,000. The call of September 1, of this
year, showed the total deposits to be $172,799,000, an in­
crease of $21,000,000 over the highest previous statement
and $37,000,000 more than the deposits in the panic days.
Loans on September 1, of this year, aggregated $113,360,000,
which is about $7,000,000 in excess of the previous high
records and $28,000,000 higher than the panic days.
In the two years between August, 1907, and September,
1909, capital stock in Washington banks had increased
from $15,800,000 to $20,900,000, and the cash in exchange
increased from $56,000,000 to $66,800,000.
The highest
mark in bank clearings ever obtained in Seattle prior to


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Federal Reserve Bank of St. Louis

this year was in October, 1907, when the total was $51,400,000, which was considered a phenomenal record at
the time. In several months of the current year the clear­
ings have gone beyond this mark and just shaded under
$55,000,000 in two months.
The average is more than
$2,000,000 a day, and on October 27 a new high record for
the day’s business of $3,918,000 was set. The $3,000,000
mark has been passed twice before in the history of the
Clearing House association and each case was in 1909.
The high mark established a few days ago was due in
part to one large check, but even without it the figures
would have gone to an unusually high mark. The high
showing in clearings has not been due generally to any
particular or few items but to a mass of local business.
In the item of buildings alone, Seattle in the first nine
months of this year went to almost $15,000,000, or a million
and a quarter more than last year’s entire business.
In the item of postal receipts which are always con­
sidered as indicating the general growth of a community,
the Seattle postoffice in the twelve months ending Sep­
tember 30, showed an increase of 23.6 per cent, over
1908 and an increase of 448 per cent, over 1900.

T H E C O M M E R C IA L W E S T

40

THE OLD RELIABLE

FIRST
National WINONA Bank
Minn. .

Saturday, November 6, 19Ó9

ESTABLISHED 1 8 5 6

Nationalized 1864—The oldest continu­
ous banking association in Minnesota
C A P IT A L ............... .............. $ 2 2 5 ,0 0 0 .0 0
SU R P LU S ..............
2 5 0 ,0 0 0 .0 0
A S S E T S ..................
2 ,8 0 0 , 0 0 0 . 0 0

EASTERN PRAISE FOR TACOMA.
Tacoma, Nov. 1.— The current magazine number of The
Outlook, one of the country’s leading weekly periodicals
devoted to public affairs, contains what local publicity ex­
perts pronounce the best appreciation of Tacoma, Seattle
and the entire Northwest, printed thus far anywhere as a
result of the summer publicity campaigns just closed. The
Outlook’s impressions of the Puget Sound country are by
John Foster Carr, who takes for his theme “ The Last
Northwest.”
W h at specially pleases the men who have had charge
of Tacoma's publicity work is that Mr. Carr and The Out­
look carefully avoid partiality as between Tacoma and
Seattle, and set forth the commercial position of each city
exactly, the publicity men assert, as it exists. The Orient
and Alaska, the viewpoint from which those great com­
mercial fields are contemplated in Tacoma and Seattle, the
“ whirlwind” methods by- which each city does things—these and more are a cause of wonderment to The Out­
look’s writer.
Enlarging on the things that are .and are to be in the
Northwest and in Tacoma, Mr. Carr, in the course of his
Outlook article, says:
C it i e s ’ E n t e r p r i s e

Everyw here.

“ Tacoma and Seattle, twin cities of Puget Sound, and
deadly rivals, are not merely centers of supplies in capi­
tal, labor and material for the workings of the rich lands
that lie to their immediate East. The enterprise of 1909
travels far over seas, and the future is astonishingly bound
up with ventures toward the North and toward a yet far­
ther W est. The South, it is true, interests both cities, and
you will hear talk of a coming ‘rich South American com­
merce.’ And every one agrees that the Panama canal will
add gloriously to the shipping of Puget Sound. But it is
Alaska and the Orient that today excite the imagination
of these ready adventurers of trade.
“Even now there is a splendid commerce direct with
Asia, pushed by every device of modern method; and of
this it is no disparagement to say that the great exposi­
tion at Seattle is in large part a keenly planned advertise­
ment. A frank but not sentimental recognition of the
claims of human brotherhood, as well as commercial neces­
sities, has created a distinct trade alliance between Puget
Sound and the Orient.
“ To these shrewd merchants the trade of Asia is no
vague and willful dream. They have practically studied
the tastes and customs of the Orient, and they make its
news prominent in their papers. They know Asia, as they
need to know it, in the exact possibilities of trade. They
know that the Chinaman, who earns only a few cents a
day, will not in the immediate future create a new market
for Grand Rapids furniture and automobiles, but that the
bulk of his buying will be in the simple staples. And as
you talk to them the nearness of the lands that are 6,000
miles away over the sea grows as surprising as their fa­
miliarity with each one of these trans-Pacific countries.
*
❖
❖
“But all this is only a part, and, for present impor­
tance, almost a minor part, of the great activities of these
people of the Puget Sound cities. The expansion of the
republic to the last Northwest, the looming of Alaska, is
the thing of overwhelming interest. It is this ‘Northern
Empire’ of our greater America that has hurried the build­
ing of these ambitious harbors and docks^and skyscrapers
— the swift rushing of profitable trade rapidly adapting
itself to new conditions, the development of an Arctic El
Dorado.
“ Western civic enthusiasm is capable of great ardors.
And these hopes were coldly discounted by the railways.
Yet they, too, came to believe in the ‘future’ and were
soon racing each other to Puget Sound. Already four of
these great trans-continental systems have reached this
‘American Mediterranean,’ and three more are on the
way.”
The

Reasons W h y

“ Y o u ’ ll L i k e T a c o m a . ”

“ But before I draw the summary of chances, let me
show further traits of this spirit of the last Northwest.
Take Tacoma, Seattle’s unsleeping rival. It had a similar
slow growth for years. It suffered an Indian war, the
trials of the Northern Pacific bankruptcy. It was nearly


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Federal Reserve Bank of St. Louis

wrecked by the boom. But now, like Seattle, by a pros­
perity that is recent, Tacoma has doubled in population
within five years. It is the Great City for every man,
woman and child of its inhabitants— ‘the City of Destiny’
— they call it. And hardly Seattle can match its public
spirit. It is resolved to become the most beautiful city
in the world and, like Seattle, it has been most carefully
planned. Every Tacoman is almost as active in his work
for his city as he is for his own business. He notifies the
arrival of strangers to the hospitable Commercial Club.
He is one of the jolly ‘Boosters Club,’ which bangs over
the country its deafening cymbals of advertisements. Off
for a trip, short or long, every spare inch of his hand­
bag is stuffed with alluring ‘literature’ from the Chamber
of Commerce; every letter he posts is sealed with the
crimson sticker, ‘W atch Tacoma Grow.’
“ ‘You’ll Like Tacoma— the City W ith the Glad Hand
and Opportunities for A ll,’ is the word of the latest folder
issued by the Board of Trade. ‘Come and Meet U s.’ And
here are some of its enumerated ‘reasons why’ :
“ The ideal home city.
“ Eleven hundred acres in parks.
“Lowest death rate in the Northwest.
“ Twenty-four ‘grade’ schools and six colleges.
“ The largest high school west of New York.
“ The largest stadium in the United States and the
only public school stadium in the world.
“ Light and water systems owned by the city.
“ More beautiful scenery than any other business cen­
ter.
“ Cheapest electric power in the United States.
“ Thirty-three miles of waterfront.
“ Headquarters of the Pacific lumber industry.
“ Largest packing house west of Denver.
“ Greatest wheat shipping center in the W est.
“Largest flour mills, smelter, malt house, furniture fac­
tory, planing mill, car and locomotive manufacturing shops
in the whole W e st.”
C H A M B E R OF C O M M E R C E F A V O R I N G A N N E X A T I O N .
Tacoma, Nov. 1.— By a vote of 8 to 4 the trustees of
the Chamber of Commerce decided in favor of annexing
the outlying suburban towns that are seeking to become a
part of the proposed Greater Tacoma.
The proposition
will be submitted for final decision at an open meeting
of all the members, to be held this week.
This practically settles the action of one of the big com­
mercial bodies of Tacoma relative to the admission of a
population of about 20,0u0 and property with an assessed
valuation of about $10,000,000.
W hat the Commercial Club will do remains to be
seen, but it was reported that the investigating commit­
tee of that body has completed its report, and that this
knowledge would be conveyed to President John T. Bibb,
who would probably call a meeting of the club within the
week.
Relative to the question of the rumored removal of the
Northern Pacific railroad employees from Tacoma to Seat­
tle, the Chamber of Commerce committee making an in­
vestigation did not report, asking a little more time. It
will probably submit its findings on Tuesday at the open
meeting of the organization.
Through the efforts of Secretary A. L. Sommers, it is
probable that the chamber will soon secure new and
larger quarters. The present rooms are inadequate, and
it is proposed to secure better facilities, possibly in the
same building, where a library for the general public can
be fitted up that any desired information may be procured
there by residents or tourists interested in the city and its
many resources.

FIDELITY’ TRUST
TACO M A,

CO.

W ASH IN GTO N

Capital, $ 3 0 0 ,0 0 0
Surplus, $ 1 5 0 ,0 0 0
D eposits, $ 3 ,3 0 0 ,0 0 0
Transacts a general Banking Business. Accounts of banks and bankers
solicited and handled on most favorable terms. Correspondence invited.

OLDEST T R U ST

C O M P A N Y IN

W A S H IN G T O N

J. C. Ainsworth, Pres’t John S. Baker, Vice Pres’t P. C. Kauffman, 2nd
Vice Pres’ t Arthur G. Prichard, Cash. Forbes P. Haskell, Jr., A ss’t Cash.

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

41

T he Fourth Street N ational Bank
OF P H I L A D E L P H I A

Capital $3,000,000; Surplus and Profits $6,000,000; total resources over $50,000,000.
Send

Us

Your

Eastern Busin ess

RAILROAD BUILDING IN PACIFIC NORTHWEST.
(S p ecial C orresp on den ce to the C om m ercia l W e s t.)

Portland, Ore., Nov. 1.— Probably never before in the
history of the Pacific Northwest has there been greater
activity in railroad building throughout this section of
the country. Not less than 20,000 men are at work on
railroad projects whose completion will be of direct bene­
fit to Portland. A vast amount of money is being put into
this work, which promises to continue throughout the
winter. There is a daily pay roll of about $40,000 on the
construction work about Portland or close to $1,000,000 a
month. Most of this is handled through Portland.
Some of the biggest operations in railroad building
will last for the next two years and will mean the steady
employment of many workmen throughout that time.
Never since the Hill and Harriman interests invaded the
Northwest have they been displaying more constructive
activity than now. Each of the two great rival systems
is building extensions and feeders to the main lines and
is carrying on important betterments to the existing
property. Other independent systems are building roads
throughout this territory. The country thus being opened
up is a very valuable trade asset for this city and means
a vast new territory that will be opened to Portland
trade.
Most important of the new railroad projects is the
Oregon Trunk, the Hill road into central Oregon. Presi­
dent Stevens is placing 5,000 workmen along the survey
and is working with all possible speed to complete the
line into the interior by next spring. The importance of
this road to Portland and the whole state can hardly be
over estimated. It is predicted that the building of this
road will double the wheat yield of the whole Pacific
Northwest by opening up a great unoccupied area suitable
for wheat raising. Portland merchants will profit largely
by the splendid market for merchandise of all kinds
throughout central Oregon when that territory is settled.
Other Hill work that is being prosecuted is the double
tracking of the Northern Pacific between Vancouver and
Tacoma. Men employed on this task number about 2,500.
These gangs are scattered all along 130 miles where the
work is going on. This line will be used by the Northern
Pacific, Great Northern and Union Pacific jointly.
The new North Bank road is on the last link of Its
line between Portland and Spokane and has about 5,000
men employed closing up the gap.
Perhaps the most
important work now under way is the driving of a bigtunnel near Spokane.
This tunnel and nine miles of
track from Marshall Junction will be completed and ready
for operation by the end of the year.
Harriman interests are spending large sums of money
in construction work of the most permanent character.
About 2,000 men are now employed on the Harriman lines
into central Oregon, the Deschutes railway.
W ork of
laying rails on this line will be begun next week and the
number of Avorkmen will be largely increased.

2,500 men employed by this line is distributed at various
points.
The Union Pacific extension to Tillamook is going
steadily ahead.
About 1,200 men are employed.
It is
expected to close up the gap in the road and have trains
running about next June.
The United Railways, an electric road, is furnishingemployment to about 1,200 men. This line is also headed
for Tillamook through a very productive farming and tim­
ber country.
The only road of any consequence which is not build­
ing new mileage at this time in this territory is the Ore­
gon Electric. The president of this line recently visited
the city and announced important extensions throughout
the W illam ette Valley next season.
This great development of the transportation interests
of the Pacific Northwest means great business growth for
Portland, the natural jobbing and commercial center
toward which they are all striving. They will mean a
great increase in population for this city and state within
the next few years.
No tes.

— Confidence of outside capital in Portland enterprises
was never better illustrated than during the past week
when important investments in Portland property were
made by outsiders. Control of the United Railways was
secured by eastern capitalists and it is announced by the
new owners that the project already mapped out by this
company will go ahead.
W ith the railroads' went the
Ruth Trust Co., Avhich handles the real estate business of
the United. The new board of directors of the railroad
is as follow s: T. L. Greenough, A. C. Ammons, Charles
D. Pullen, J. H. Hurlbut, L. B. Wickersham and F. E.
BoAvman.
— W . F. and B. Norman, owners of large hotels in
Spokane, Tacoma and North Yakima, have secured an
option on the Portland hotel, the option expiring February
9, 1910. If the deal goes through as now seems likely
many improvements will be made to the hotel.
The
building will be enlarged and will form a link in the chain
of northwestern hotels the Norman brothers own and
operate. The option is for 8 per cent, of the capital stock
and the purchase price is agreed upon as $190 a share.
On this basis the value of the entire hotel property is
$950,000.
The Portland Hotel Co. was capitalized at
$500,000 and the establishment has proved a profitable
investment. It was originally promoted by Henry Villard,
builder of the Northern Pacific railway, and under his
direction was constructed in part 26 years ago.
The
hotel was later taken over by a local corporation formed
for that purpose.
It is understood that the Norman
brothers will spend about $200,000 in improvements to the
hotel if they complete the purchase. The largest stock­
holders are some of the wealthiest families of Portland.
A large part of the stock is held by the estate of the late
H. W . Corbett.

THE A. C. B O H R N S T E D T CO.
Capital Stock

629 Palace Building,

$ 1 0 0 ,0 0 0 .0 0

Minneapolis, Minn.

Lands and Investments.
Fruit and W heat Lands a Specialty.
Reliable Agents W anted.
B r a n ch O f f ic e s :
252 Alder St., Portland, Oregon and Creswell, Oregon

On the Southern Pacific cut-off from Natron to Klamath
Palls more than 3,000 men are employed. W ork is being
pushed from the north and south ends. This Avill be the
new through line of the Southern Pacific between Port­
land and San Francisco when completed.
The O. R. & N. is spending hundreds and thousands
of dollars in renewing the main line, eliminating curves
and heavy grades. About 1,000 men are employed in this
work.

Established 1 $ 5 9

The Oregon and Washington, the Union Pacific exten­
sion to Puget Sound, is busy at several points along its
line. A large force of workmen is boring a large tunnel
on the peninsula near the city while the balance of the

W . M. LADD, President
E D W A R D COOKINGHAM, Vice-President
W . H. DUNCKLEY, Cashier


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ladd & T ilton Bank
PORTLAND, OREGON
Oldest Bank on the Pacific C oa st
Capital fully paid $1,000,000
Surplus and Profits $500,000

Accounts of Banks, Firms, Corporations and Indi­
viduals solicited. Trat^elers’ checks for sale and
drafts issued available in all countries of Europe.
R. S. H O W A R D , JR. Ass t Cashier
J. W . LADD, A ss’t Cashier
W A L T E R M. COOK, Ass t Cashier

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

42

FARM LAND TRANSFERS.
MINNESOTA.
W in o n a C ou n ty.— A u g u st E . N ow lan to D onaldson, 40a, $2,000; G u stave K ie se to K iese, 18a, $8,000; A u g u st E. N ow lan to
D onaldson, 40a, $2,000.
W rig h t C oun ty.— N. E . E rick so n to A nderson, 7, 19a, $1,220;
Claus A nd erson to R u ck s, 11, 80a, $2,500; R . M. M orga n to
L atham , 3, 3.12a, $3,000.
B lu e E a rth C oun ty.— M ary E liza beth G ood rich to B rooks,
57%a in 29, $3,000; F ra n k J. D au k to Scharbach , s s sw, $1,200;
H. O. T h om pson to I k ie r ,. ne n w 13, $1,600.
D o d g e C oun ty.— J. A. Sheils to Z w eifel, e nw and e sw 34.
$5,650; E. P ederson to H elling, w nw 11, $5,000; W . H . H oa rd
to V aorich ek , sw se 24 and w ne 25, $7,500.
Stearns County.-—H. Soppe to H ansen, se se and others, 26126-29, $3,000; J. B o rgerd in g to Springer, ne se 28-126-33, $2,000;
H. F. M ey er to G eorge, nw ne 11-125-31, $1,100.
M arshall C ounty.— F re d e rick D oss to D oss, n nw 27, se se 21158-46, $1,000; C hrist D oss to D oss, n n w 27, se se 21-158-46,
$1,000; R o sa O. W e e k s to H anson, nw 26-156-43, $2,700.
C lay C oun ty.— Ole A sk e v ig to Stephens, ne 33-142-45, $3,800;
A . G. B arth to B arth, und. y2 int. in se 14-137-47, $3,040; C h ris­
tian B arth to B arth, und. y2 int- in se 14-137-47, $3,200.
F reeb orn C oun ty.— T h om as P. Jensen to Jensen, w of e of
sw of nw o f 11-102-21, $1,000; A n ton C. In gbrittsen to Johnson,
nw o f nw 17 and 38a o f the e o f e o f n e 18-103-20, $3,000.
S w ift C oun ty.— E li M un ger to O ’Brien, nw o f 18, 160a, $3,311; A . C. M cP h erson to Schendel, s o f se and nw o f se of 7,
120a, $3,840; M ary A. B en oit to P eterson , sw o f 36, 160a, $5,800.
P ipeston e C oun ty.— W . C. B rigg s to Cizek, se 14-108-45, $7,600; S ecu rity S avings B an k o f W ellm an , la., to D eterm an , nw
17-108-45, $6,000; J a co b J. S om a to W ilson , s nw 14-105-46, $5,200 .

M artin C oun ty.— G eorge L e ste r to Sim on, n w o f se and n
29, $6,000; Julius Sim on to L ester, w o f ne, s o f nw, w o f se
and e o f sw, 33, $16,000; F red H artm an to H u m oeller, e o f e of
sw, 3, $1,800.
O ttertail C oun ty.— F. F. R o n n o w to K oeh ler, s ne 8 and nw
sw 9-136-37, $3,600; A n n ie G. A berle to N elson, ne 7-133-38. $2,700- W a lte r R . P arkhill to A lexan d er, p a rt o f n se 22-136-43,
$ 1, 200.
M orrison C oun ty.— C hrist Z a n g to M artin, w o f se 28 and nw
o f n e 33, all 39-30, $3,000; F. H. B row n in g to K irsch er, w o f sw
26-131-31, $1,200; F rank M ischke to M ischke, und. 2-3 o f 4x20
rods in se o f se 5 and 4x5 rods in sw o f sw 4 and ne of nw 3,
all 39-30, $1,500.
L e Sueur C oun ty.— Jam es N . H a yes to R uese, w o f se 27111-26, ex ce p t l a th e re o f an d e o f se o f se o f sw 27-111-26, $2,500; M ich ael H u n t to M atz, n o f sw 26-110-24, $4,000; M ich ael
H unt to M atz, n o f sw o f 26-110-26, $4,000.
M ow er C oun ty.— A lbert Schisler to M ickelson, n se 36-10214 $5 200- Thos. A. M cM ullin to O’ Connell, nw 11-102-14, $8,000;
W m . W e ise to W rig h t, e se 21-101-14, $4,000; N. F. Bantield to
K ra ft, all se 2-102-16, w est C. G. W . R y., $5,500.

WISCONSIN.
M onroe C ou n ty.— A u g u st C hristenson to N elson, land 6, $1,000' M. N eum ann to G eoghegar, lands 28, $1,100; J. St . M orrison
to N ichol, 256a 28-29-32, $6,500.
Jefferson C ou n ty.— G u stav J. D oerr to M eyer, sam e as last,
$2,100; M alinda O’B rine to K rueger, part 15, 10a, $1,400; Jane
A.' H a rg e r to Quade, p art 7, $2,000.
P o lk C ounty.— M errit H. S perry to N elson, se se 25-32-15,
$1,500- N ellie T ripp to M cG hee, nw nw 15-33-16, $1,500; D aniel
St’e e n ’ to F ram stad, w ne 28-32-16, $2,500.
B arron C oun ty.— E rn e st W ir th to M iller, e nw ne 35-32-13,
$1,000; D aniel M urph y to Sbash, se and e sw and s 60a of e

R A I L R O A D O F F I C I A L A D V I S E S F A R M E R S T O CO ­
OPERATE.
Dallas, Tex., Oct. 28.— B. F. Yoakum of the Rock Island’Frisco system, in an address at the State Fair of Texas
here yesterday urged farmers, for their own welfare, and
for that of the country at large, to co-operate with one
another and establish the farming industry on a sound
business basis. The farmers, he said, have not given the
question of business methods in the conduct of their farm­
ing operations the careful consideration that so impor­
tant a subject demands. “ The welfare of every merchant,
every banker, every manufacturer and every laborer is de­
pendent upon the "success of those engaged in farming,”
he said, “ and the business of all is increased or decreased
in proportion to the yield of agricultural products.”
He went on to say that the agitator does not advance
the spirit of co-operation that is becoming so fixed in the
minds of the public. “ The interest of the man who pro­
duces,” he declared, “ cannot be promoted through that
class of politician whose stock in trade is to condemn all
corporations and institutions, regardless of whether they
are law-abiding or law-breaking. The public speaker or
candidate whose argument lies in the condemnation of
corporations and wealth, and whose method is to instil
a feeling of antagonism, is not a true friend of the farmer
or of the country. This is not said in defence of cor­
porate interests or wealth when misused, but in defence
of the spirit that should prevail with all men and all
classes in trying to develop a feeling of closer relations

Land for sale at eight dollars per
acre up, in the famous Mouse River
loop. Terms to suit purchaser.
EVAN GRIFFITH, Kenmare, North Dakota.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

nw 18-35-12, $3,600; C. A . F eakin s to L ech ten w aln es, n 60a o f s
se 23-34-15, $5,400.

NORTH

DAKOTA.

C ass C oun ty.— F ra n k O u slette to Jordan, $6,624; A ddie
O ’ C onnor to Jesperson, $10,500; W illia m R ig n ey to R igney,
$5,000.
S tutsm an C ounty.— E d g a r S. C ham es to Cham bers, ne o f 22144-66, $1,600; A . W . H eald to G reiner, w of e o f 30-142-62, $4,800; Sohn K n itter to K aiser, n w o f 20-142-63, $4,000.
B ottin ea u C oun ty.— R u d olf H. V o g le r to Issen dorf, s 10-16079, $13,000; M ollie N ath ys to H einer, ne 27-161-83, $2,500;
M ich ael B. M ill to G igson, e 19, sw 20-163-81, $15,000.
M cH en ry C ounty.— Jam es Ju enks to Shafer, sw 20-158-77,
$4,000; Geo. W . B row n to L am b, nw n w 28, w ne ne se 29-15575, $4,000: T rop him us C avlin to N ikolus, s se 20-151-77, $4,000.
W e lls C oun ty.— L oren ts H eg g en to Johnson, nw 1-149-73,
$4,000; G. A . B rau er to T he P u blic, plat, B ra u er’ s A d d ition ;
Jam es C ope to Cope, sw 28-145-68, $3,840; A n d rew N. L a rra tt to
D ow n ing, $16,000.

SOUTH

DAKOTA.

F au lk C oun ty.— John R. T h om pson to B atteen , se 15-119-66,
$4,000; John R. T hom pson to B attin . sw 14-119-66, $6,600; H ugh
M cE llig ott to R ist, ne 1-118-72, $1,000.
L a k e C oun ty.— O scar Schutz to Strang, ne of se of 16-10751, $2,080; S. N. F a d er to H olland, ne o f 10-106-51, $10,000; O.
E c k e r to Olson, n o f 33-105-51, $17,600.
B eadle C ou n ty.— Jam es H. K en n ed y to F ellerm an, w 11-11262, $1,200; Joseph K oler to M errim an, w nw 3-110-62, $3,100;
T h om as C ostello to C astello, ne 10-110-61, $1,000.
Charles M ix C ou n ty.— Ju lia Shunk L a R och e to T aylor, sw
sw 12-99-64, $3,000; W illia m T. B row n to B row n, % int. in nw
14-97-66, $1,760; P eter K esselrin g to G regg, n sw 9-93-62, $2,000.
S tanley C oun ty.— A rch ie B. A llen to K rau se, ne 20-2-21, $2,000; C yn th a Clark to K rau se, se 9-1-18, $2,240; L eon ard A .
D ivine to S tevens, sw 17-1-23, $1,200; W a lte r G. Olson to H arty,
sw 20-6-21, $3,300.
Grant C ou n ty.— W m . P a sk ew itz to G ullick, sw o f 34-118-49,
$3,200; L a u ra H. D aum an to E n g ebretson , nw o f 12-119-48, $7,~
200; G eorge E g erm a y er to V an Öfteren, se o f ne w o f se se of
sw o f 8-120-50, $2,300.
D av ison C ounty.— John A lth en to A lthen, Jr., 1-3 o f sw 19104-62, 1-3 of sw of se o f 19-104-62, 1-3 of s o f nw 20-104-62,
$3,097; Jos. H a rk er to H arker, % o f nw o f .5 and % o f ne o f 6102-61, $2,000; A rth u r A llen to Strand, Jr., sw 2-102-61, $4,800.

I OWA.
D eca tu r C ounty.— A. R. K irk p a trick to P oland, 40a, «1,500;
Chas. R. T harp to Sm ith, 39a, $2,400; G race B. V a il to Sm ith,
58a, $3,600.
A llam akee C ounty.— M ary N ich olson to N ich olson s sw and
ne sw 7-96-3. $4,000: H en ry S teiber ,to S teiber, ne ne 28 and n
nw 27-98-3, $7,000; H en ry S teiber to S teiber, se n e 28 and s nw
27-98-3, $5,000.
W in n eb a g o C oun ty.— C. L. Suby to K n utson, sw 23-98-23,
$8,800; L en a M. P eterson to H ansen, s 10a o f nw and sw o f sw
17-98-23, $2,500; J. M. T ap ag er to Gadd, w o f n e and nw o f se
11-99-26, $4,800.
C erro G ordo C oun ty.— L. F . S im erson to W old . e nw 18-97-22,
$2,560; F. E. H a n ford to G rand L o d g e o f Iow a, I. O. O. F., nw
21-96-20, $15,000; G eorge W . K u ck to C hristiansen, sw nw 27,
se 28-96-19, $15,000.

and substantial co-operation.
“ If demagogues are given to understand that their
talks will be of more interest and result in more good
by discussing plans and methods of upbuilding, of the im­
provement of public highways, of making acres more pro­
ductive or other substantial developments of the country,
and by encouraging closer co-operation among the pro­
ducers, the merchants, the bankers and the transporters,
their efforts will be in the right direction and will result
in much good.”
If through co-operation of the railroads with the farm­
ers of Texas one cent a pound addition on cotton can be
had, Mr. Yoakum said, it will bring the farmers, on the
3,000,000 bale crop, an additional $15,000,000 annually.
These matters, like all business, he added, must be fairly
considered from the standpoint of both interests.
TO RESTOC K T H E CO LUMBIA.
Portland, Nov. 1.— Because of the gradual disappear­
ance of the Sockeye salmon from the Columbia river, steps
will be taken by the Fisheries Department to restock the
stream with 2,000,000 eggs from the Yes Bay, Alaska, sal­
mon hatchery. George M. Bowers, United States fish com­
missioner, was in the city during the past week and gave
orders for the transfer of the eggs from the Alaska hatch­
ery. They will be placed in the Bonneville, Ore., salmon
hatchery, and the young fry will be liberated in the Col­
umbia. The eggs will be brought from Alaska within the
next few weeks.

T ? l> T? I ?
r Ix rL rv

200 PAGE BOOK AB O U T
Mi n n e s o t a

Compiled by the State, describing industries, crops, live­
stock, property values, schools, churches and towns of each
County and Minnesota’s splendid opportunity for any man.
Sent fr e e by

S T A T E BOARD OF IMMIGRATION
Dept. Z, State Capitol, St. Paul, Minn.

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

43

TELEPHONE CONSTRUCTION.
MINNESOTA.
C urrie.— A teleph one system is b ein g installed b y Mr. W o o d gate.
K erk h o v e n .— A new teleph one plant w ill soon be installed
here.
H a n o v e r.— T he M esaba T eleph on e Co. is con stru ctin g a new
toll line a t this place.
D on nelly.— T here is a g itation at this place fo r the co n stru c­
tion o f a teleph one line.
D od ge C enter.— D. D. Springsted is con stru ctin g a te le ­
p h on e line in this vicin ity.
T h ie f R iv e r F alls.— T h e M cM ahan T elephone Co. is c o n ­
stru ctin g a line to W a rroa d .
Staples.-—T he stock h old ers o f the C row W in g T eleph one Co.
have v o te d to c o n stru ct a line to Oye.
N orw o o d .— T he N o r w o o d -A m e r ic a T eleph one Co. is c o n ­
stru ctin g a line fro m W a c o n ia to Chaska.
D u lu th .— T he D uluth T eleph one Co. has been granted p e r ­
m ission to e re ct poles- in certain p arts o f th e city.
F ergu s F alls.— T here is a g itation at this p lace fo r the r e ­
con stru ctio n o f a part o f the local telephone line.
R u sh m ore.— A new teleph one line will be con stru cted w hich
w ill con n e ct this tow n w ith the L ittle R o ck telephone system .
Grand R ap ids.— T he city cou n cil has g ran ted perm ission
to the M esaba T eleph one Co. to install lines in different parts
o f the city.
P in e C reek.— T he fa rm ers residin g in this v icin ity have o r ­
g an ized an independent teleph one com p an y.
A line w ill be
c o n stru cte d w h ich w ill b e ab ou t 8 m iles in length. The officers
a re: A . J. Gilseth, p resid en t; T osten H augen, v ice presid en t;
S'. H. H alvorsen , secretary , and M artin A lton , treasurer.

WISCONSIN.
A p p leton .— John M. B ear has been chosen presiden t o f the
F o x R iv e r V alley T eleph one & T elegrap h Co.
W a u k e sh a .— B en jam in C hase has been elected as m anager
o f the local e x ch an ge o f the W isco n sin T eleph one Co.
N orth field.— T he N orthfield F arm ers T eleph one Co. is c o n ­
sid erin g the qu estion o f co n stru ctin g a teleph one line to M errillan. H. L. H a n son is secretary.

NORTH

DAKOTA.

S treeter.— A telephone system w ill soon be installed at this
place.

NEW NO R T H W E S TE R N PATENTS.
T he fo llo w in g patents w ere issued this w eek to M innesota
and D a k o ta inven tors, reported by W illia m son & M erchant, p a t ­
ent a ttorn eys, 926-933 M etrop olitan L ife B ldg, (fo rm e rly G u ar­
a n ty L o a n ), M inneapolis:
6 . A n d erson , M cG regor, M inn., paint brush.
E. A. B eyl, M inneapolis, h orizon tal boiler.
P. C arlson, T olley, N. D., H am m er.
L. S. H a ck n ey , St. P aul, e x e rcisin g m achine.
W . B. H om er, Springfield, S. D., gate.
R. E. Joh nson , C aledonia, M inn., tire arm or.
N. P. L ith and er, H allock, M inn., am u sem en t device.
N. P. L ith an d er, H allock, M inn., m itre box.
C C. M adson, L an esboro, M inn., ice m aking appliance.
R . T . N elson, G reenbush, M inn., penholder.
F N olte, E aston, M inn., g rin d in g mill.
O. A . R oed, M inneapolis, apparatu s fo r elevating w ater.
G. R osen lea f, G rand F orks, N. D., fibre con crete.
J. G. Schneider, M inneapolis, horsesh oe calk.
O. E. T w am ley, A lexan d ria, seed corn tester.
C. W o lfe n d e n , M inneapolis, ash sifter.
C. O. W y m a n , A noka, M inn., run ning gear.

A

E D U C A T O R ON T H E I N T E R N A T I O N A L
LIVE STOCK EXPOSITION.
Dean Davenport of the Illinois Agricultural college says
of the International Live Stock exposition of Chicago,
which is to be held at the Union Stock Yards from No­
vember 27 to December 10:
“ Not one, not even those responsible for its develop­
ment, has adequate conception of the influence of the In­
ternational’ upon American live stock interests.
As a
practical educator it cannot be surpassed; as a stimulus
to trade, it has no equal; as a means of shaping policies
and correcting ideals, its influence is supreme.
“ A decade or two ago such a thing would not have
been possible in this country. It seems incredible now
that a company organized primarily for business, should
see its way to expend so much time, energy, and money
in the establishment of such an exposition. That it will
pay there is no doubt.
The pay will come in a thou­
sand ways. The live stock interests will be more pros­
perous; the individual farmer who lives by it will be
more successful, and the multitude of interests that de­
pend upon live stock will thrive the better for it.
“ The marvel of it all is that such a thing could be
at all. It shows the breadth of the commercial spirit in
this country, the generosity of live stock men, and the
readiness of the American farmer to respond to mod­
ern methods and conditions.
“ W hat should be said of the man who does not go?
That he is blind to his own best interests is certain; that
he will get behind in the race and be lost in the shuffle is
no less true; that the young man who will come on after
him will ultimately possess his herds and his land, goes
without saying. This is the age when every business must
be studied, and farming is no exception, indeed it looks
more and more as if farming were coming to be one of the
most complicated professions and that the more is learned
of it the more complicated it becomes.
“ L et the ‘International’ live long and prosper, This cer-

L ora in e.— T he Cut B ank T eleph one Co. is con stru ctin g a
line to M ohall.
R ock Lake.-—T h e F arm ers T eleph one Co. is exten din g its
line in this vicin ity .
Osnatarook.— F rank D elling is con stru ctin g a teleph one line
in to the su rroun din g coun try.
E nd erlin.— T he F arm ers T eleph one Co. has started the w ork
on th e con stru ction o f a line from this place to A nselm .
G rafton .— A rural teleph one system is bein g con stru cted in
this vicin ity . One o f the lines w ill p rob ably con n ect w ith Park
R iver.
N ew b erg .— A teleph one ex ch an ge is b ein g installed at this
place. C onn ections w ill be m ade w ith E ckm an , Landa, Souris,
K ram er, B ottineau and other tow ns.

SOUTH

DAKOTA.

C rock er.— The B r a d ley -C rock er T eleph one Co. is planning an
exten sion to Crandall.
P ierre.— T he D ak ota Central T eleph on e Co. is m aking plans
fo r the con stru ction o f new cable lines.

I OWA.
Iow a C ity.— It is reported that the Joh nston C oun ty T e le ­
phone Co. is soon to be absorbed b y parties w h o are allied
w ith the Bell T elephone Co.

MONTANA.
A n a con d a .— T he M on ta n a -A n a con d a T eleph one Co. w ill in ­
stall a n ew ¡sw itchboard.
H a m ilton .— T he B itter R oot T eleph one Co. has sold its b u si­
ness to the M on tan a Independent T eleph one Co.
D illon.— A teleph one plant will soon be installed at this
place by the M on tan a T eleph one Co. Mr. L an e w ill be m an ­
ager.
W h iteh a ll.— T he M ontana Independent T eleph one Co. will
con stru ct a line from this p lace to Dillon, and from T w in
B ridges to V irgin ia City.
L ivin g ston .—A teleph one line has been con stru cted from the
L ittle M ission and W e st B ould er cou n try b y the R o c k y M ou n ­
tain Bell T eleph one Co.
B Utte.— T he In ter-S ta tes C onsolidated T eleph one Co. has
been in corp orated by Irvin g W liiteh ou se, H erbert L. R isley and
B ernard C opping, w ith a cap ital stock o f $5,000,000.

tainly will be true. The only uncertainty
good will individuals get out of it. This
upon them and depends upon whether they
position or whether they stay at home and
what they have not helped to accomplish.
others go.”

is how much
rests entirely
attend the ex­
find fault with
May they and

LEADING


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

The greatest display of the Nation’s
fruit industry ever assembled. Prizes
aggregating $25,000 to be awarded
in a competition open to the world.
An exhibition of great interest to
every man, woman and child.

Spokane, Wash.,
Nov. 15-20,1909
Held in the heart of the Inland Empire
— the distributing center for much of
the fruit production of the Great
Northwest.
Go via “ the Scenic Highway through
the Land of Fortune.’ ’

Northern Pacific
Railway
Handsom e Souvenir Booklet free.
L o w tares f o r the round trip. A sk

C. F. McNEILL, C. P. A.,
19 Nicollet Block, Minneapolis

C. P. O ’DONNELL, O. P. A.,
5th and Robert Sts., St. Paul
both Phones 1266

44

T H E C O M M E R C IA L W E S T

BusinessWant Department
A medium for the aale o f Stocks and Bonds,
Real Estate, Farm Land, Stocks o f Merchan­
dise; for the man who wants a Bank Position,
or a Location for a Bank, Investment or other
Business.
Rates for advertisements in this de­
partment are 2 cents per word each
insertion. Words displayed in capitals,
four cents per word.
Initials and ab­
breviations count as one word each.
Copy paragraphed, fourteen cents per line.
C A SH OR T W O - C E N T S T A M P S M U S T
ACCOM PANY A L L ORDERS.
All an­

swers to advertisements under key num­
bers must be accompanied by two-cent
stamp.
Address Commercial W est Co.,
Minneapolis, Minn.
BUSINESS C H A N C E S

INCORPORATE YOUR BUSINESS—
Over eighteen hundred charters pro­
cured for our clients. Charters procured
under South Dakota laws at a very rea­
sonable rate for mining, milling manu­
facturing,
railroads,
telegraph,
tele­
phone, or any other industrial pursuit.
Ten years’ practice in the business. All
correspondence answered same day re­
ceived. Assistance given in making out
papers.
No delay in securing charter.
No extras. W rite for corporation laws,
blanks, by-laws and forms, free, to
PHILIP L A W R E N C E , former Assistant
Secretary of State, Huron, South D a­
kota, Suite 71.
FOR

SALE.

A n ab stra ct, real estate and insurance
business fo r sale in cou n ty seat in live
N orth D ak ota tow n. E stablish ed tw elve
years.
A d d ress “ K ” C om m ercia l W est.
Splendid in vestm en t realizin g ov er 6
per cent.
A fine b rick bu siness b lo ck
w h ich is leased fo r three y ears at $25
per m onth.
T ax es $42 la st y e a r; $3,800
takes it. N o trades consid ered. O wner
g o in g to W a sh in g to n so it m ust be sold
at once. If interested address B o x 277,
Shakopee, M inn.
(38-21)
W a n te d — G ood sto ck m erchandise, not
fa r fro m M inneapolis. W ill giv e 160 acre
fa rm near M itchell, S. D., all cultivated,
fine large buildings.
Send full d e scrip ­
tion o f stock , Joh nson & G angelhoff, 613
G lobe Bldg., M inneapolis, M inn.
(38-19)

Saturday, November 6, 1909

FAR M S A N D F A R M L A N D S

N o A c t i o n A g a i n s t Assig nee.

According to the case of First N a­
tional Bank vs. Cox, 140 Illinois
Court of Appeals 98, the assignee of
a promissory note before due in good
faith, for a valuable consideration,
even though he may be guilty of gross
negligence, will hold it by a title
valid against the world, and it will
not in his hands be subject to de­
fense of failure of consideration.
* * M
=

TEXAS.
WHOLESALE

TEXAS AND
LANDS.

M E X IC A N

40.000 acres on S an ta F e R y., C ham ­
bers C ounty, 85 per cent, w ell drained
prairie and agricu ltu ral lan d; an a t ­
tra ctiv e p rop erty, $16 per acre.
7.000 acres on S anta F e R y., W h arton
C ounty, b la ck prairie su gar cane and rice
land, no finer lan d in T exas, a bargain
at $18.50 per acre.
20.000 acres D im m it C ounty, in proven
artesian belt, 95 per cen t agricu ltu ral,
ch o co la te and dark sa n d y loam soil, only
$9.25 per acre. N ew ra ilw a y near.
15.000 acres, W e b b C ountv, 60 p er
cent, agricu ltu ral, 14 m iles railw ay, near
R io G rande R iver, $3.50 p er acre.
160.000 a cres p rairie land, T erre B onn e
P arish, La., can be reclaim ed , no rich er
or b e tte r su gar can e an d rice land- $1.75
per acre.
20.000 acres, S ta rr C ounty, 22 m iles
railw ay, all level agricu ltu ral land, a r te ­
sian belt, on line o f p rop osed railw ay,
$4.25 p er acre.
40.000 acres, S tarr C ounty, 20 m iles
w est o f F alfu rrias, all level agricu ltu ral
land, flow in g artesian w ells, a snap, $5
per acre.
100.000 acres, or part, P resid io C ounty,
alternate section s, p art level, all fine
grass and w ater, $1.10 p er acre.
100.000 acres, T am aulipas, M exico, 20
m iles M ex ican C entral R y., g ra zin g and
agricu ltu ral la n d ; an unheard o f bargain ,
60 cen ts per acre.
160.000 acres, n ea r M onterrey, v e r y fine
grazing, g ood w ater, on the M exican
N ational R y., 60 cen ts per acre.
200.000 a cres on M exican Central R y.,
S. L. P ., M e x ic o ; 75 per cent, a g ricu l­
tural, all fine grazin g, a fine colon y p ro p ­
osition at $1.75 p er acre.
176.000 acres pine tim ber, cu ts 6,000
fe e t p er acre, D u rango, M ex ico, only
$1.50 per acre.
225.000 Coahuila, M exico, g ra zin g land,
40 m iles from railw ay, a g ood buy, 50c
per acre. 25,000 acres in O axaca, tim ber
and agricu ltu ral, 75c p er acre.
30.000 acres on M ex ican Central R y.,
T am aulip as on e-th ird irrigable, a b u n d ­
ant w ater, fine soil, a w on d erfu l cheap
bargain at $2.50 per acre.
F o r fu rth er in form ation , prices, plats,
term s, etc., address,
C. S. F O W L E R & B R O T H E R ,
206-7-8-9 F rost B ldg.,
San A ntonio, T exas.
W h olesale land departm ent.

S a v in g s

Banks.

Joint tenancies of savings bank de­
posits may be created, if so the par­
ties intend, irrespective of whether
the tenants be husband and wife, and
in such case the right of survivorship
exists.— W e st
vs.
McCullough,
87
Northeastern Reporter 1130.

* ❖ *
V a l i d i t y of N ot e .

In the case of Stanard vs. Samp­
son, 99 Pacific Reporter 796, where
a note given in settlement of pre­
existing debts, in addition to sums ad­
vanced to one of the makers at the
time, and also in consideration of the
discontinuance of a pending criminal
prosecution against
one ofthe
mak­
ers thereof, such note being entire
and indivisible, is void.

LEGAL

DECISIONS.

The publishers o f the National Reporter
System will furnish a full report o f any case
cited in the legal department of the Commer­
cial West or any other decision o f the State or
Federal Courts, which has been published in
the Reporters, for twenty-five cents.
W E ST PUBLISHING CO.
St. Paul, Minn.

HELP W A N T E D
F R U IT L A N D S

THAT POSITION
YOU'RE LOOKING FOR . . .
W e may have it on file—this minute.
W e are constantly receiving calls for
stenographers, bookkeepers, clerks,
billing clerk and general office help.
W e are in closest touch with the best
firms in the Twin Cities and North­
west. If there is an opening in your
line—we know of it.
What is this
knowledge worth to you? It should at
least be worthy of your investigation.
Jot down the name and CALL AT
ONCE OR WRITE.

The Commercial Bureau
618 Andrus Building, MINNEAPOLIS

W A S H IN G T O N
IR R IG A T E D O R C H A R D S .
A rca d ia, the land o f sunsh ine; tw e n ty tw o m iles north o f S p okane; excellenttra n sp orta tion ; ideal clim a te; no dust
storm s, no w in d s; soil esp ecia lly adapted
to w in te r ap p les; w ill yield y ea rly $500
per a c r e ; irrigation b y g r a v ity ; open
d itch ; no pum pin g p lan ts; telephones,
rural m ail d elivery ; ex cellen t sch ools; w «
plant y o u r orch ard and scien tificallv
b rin g it to b ea rin g ; no w a ter tax. $100
first p aym en t w ill secure five a cres; $200
ten acres. Send fo r literature, it’ s free
A R C A D IA O R CH ARD S CO M PAN Y,
Hyde Block,
Spokane, Wash.
A. L. C r o c k e r , Minneapolis Agt., Railway Bldg.

RECENT
B A N K F IX TU R E S

For Sale— Safety Deposit Boxes good
as new, standard makes, managenese
safes. Two safety Deposit Vaults; second
hand bank safes.
The largest stock of
high grade safes in the country always
on hand.
DO N N ELL SAFE CO.,
200 & 202 W a sh in g to n St.,
Chicago, 111.

Established 1886.

FARM S A N D FARM L A N D S

FLORIDA.
F L O R ID A

LAND.

H a ve 200,000 acres o f prairie land on
K issim m ee R iver. C an not be beaten fo r
w in ter v eg eta bles and citru s fru it lands.
W ill sell in w h olesale tra cts only. L o w
p rice; g o o d term s. A . E enkem a, 1014 S e­
cu rity B an k B ldg,, M inneapolis, M inn.
(38-19)


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Federal Reserve Bank of St. Louis

LEGAL

Ship your Hides, Furs, Pelts,
Wool, Ginseng and Seneca Root
to the Old Reliable

DECISIONS.

B ona F i d e H o ld e r .

A bank, which discounts paper for
a depositor and gives him credit fo f
the proceeds, is not a “ bona fide hold­
er” for value, so as to be protected
against infirmities in the paper, as
in the case of Alabama Grocery Co.
vs. First National Bank, 48 Southern
Reporter 340, unless some other con­
sideration passes, such transaction
merely creating the relation of debt­
or and creditor between the bank
and the depositor; and so long as
that relation continues and the de­
posit Is not withdrawn the bank is
subject to the equities of the prior
parties, though the paper is taken
before maturity and without notice.

I

M I N N E A P O L IS
w—

- n —

p—

^ mS

Saturday, November 6, 1909

RECENT

LEG A L

DECISIO NS.

P a y m e n t of N ot e .

A contract of indorsement is an
independent contract binding the in­
dorser to pay the note, and, where
the indorser is compelled to pay the
note, he is entitled to its return from
his indorsee, and the note is the evi­
dence of the debt against the maker,
according to the case of Keys vs.
K ey s’ Estate, 116 Southwestern Re­
porter 537, but where a creditor who
had advanced money to a firm took
notes secured by chattel mortgages,
and thereafter took up the notes at
maturity on failure of the firm to
pay the same to indorsees, and
placed the amount thereof in an ac­
count running between him and the
firm, his right of action against the
firm was on the notes, and not on
the account.
❖
❖
❖
Demand,

N o t ic e

and

Do You Remember the Book Register
for Transit Items?
That seems a long way hack into the early history of hank­
ing, hut it isn t so very long ago. Improvements become so much
a matter of habit that we think we always had them.
The Cash Letter was a big improvement, for it meant
writing the names of payer and endorser and the amounts once,
instead of twice. The day is coming, though, when the type­
written or hand-written cash letter will be as obsolete as the
old register.
Ask us for a copy of “A Numerical System in the Transit
Department and see how the Burroughs Transit Machine is
doing away with the writing' of payer s and endorser s names,
yet allowing each separate item to be traced at any time.
Shall we send it to-day?

Burroughs Adding Machine

P r o t e st .

The insolvency of the maker of a
note is no excuse for failure of the
indorsee to give notice of dishonor
to the indorser when notice is re­
quired.— Grimes vs. Tait, 99 Pacific
Reporter 810.
____________________ 4______________________

Company
73 B u r r o u g h s
Hand or E lectric

Mr. Frame discusses National reserve bank.
(Continued from Page 21)

ed in the national reserve banks. Banks desiring, may
open accounts.
The three central reserve city banks
might also deposit up to 12V2 per cent, or one-half their
required cash reserves.
All to be counted as reserves
under the present law, but no interest should be paid on
deposits of any nature, thus practically eliminating com­
petition with existing banks. The bank should have the
right to issue $100,000,000 of untaxed notes, any excess to
pay 5 per cent, therfor on conditions similar to the Im­
perial Bank of Germany.
5th. Loans, how made?
That existing banking privileges be not disturbed, 1
see no reason why the reserve bank should not purchase
and hold its full capital and surplus, also part of its un­
taxed currency issues in the United States, state, county or
city bonds, and only use its deposits in generous reserves
and the balance loaned on quickly convertible paper. Then
for the elastic problem the untaxed currency could be used
to move the crops and the taxed for times of abnormal
pressure.
The repayment of extra loans made by the
reserve bank to relieve pressure, in reserve bank or other
notes, would effectively and automatically impound ex­
cessive issues without any expensive redemption ma­
chinery whatever, thus preventing inflation and its con­
comitant evil, the exportation of gold under the Gresham
law.
6th. Limit earnings.
A “ surplus fund” should be gradually accumulated up
to 20 per cent, of capital and semi-annual dividends de­
clared. One-half of the excess over 4 per cent, dividends
should be paid into the United States Treasury, until 6
per cent, be paid to stockholders, then all excess profits
should be covered into the United States Treasury. Such
Goverment profits to be in lieu of any taxation upon the
bank.
These conditions ensure dividends and Government
profits practically from the start. Then let us at once
commence correction of economic evils that have crept
stealthily upon us, by first retiring the greenbacks.
Retire the Greenbacks.

For any such profits received by the treasury depart­
ment, including any semi-annual tax on circulation of na­
tional banks, also including taxed currency issued by the
national reserve bank, as hereinafter provided, all of
which should be paid in gold, the treasury of the United
States should convert into gold certificates. These to be
exchanged for outstanding legal tender notes and such
notes permanently cancelled. As often as $4,000,000 are
cancelled, as approximately there are $4 uncovered legal
tender notes to $3, covered by the gold reserve— a further
sum of $3,000,000 of the $150,000,000 gold reserve held for
redemption of legal tender notes should also be exchanged
for gold certificates, they in turn exchanged for legal
tender notes, and cancelled permanently. To facilitate an
earlier total retirement of the legal tender notes— a con­
summation devoutly desired— as often as the annual sur­
plus revenues of the Government would permit, an equal
amount of Jegal tender notes should be retired with the


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Federal Reserve Bank of St. Louis

45

T H E C O M M E R C IA L W E S T

Block

Detroit, Michigan, U. S. A .
aid of such surplus, as may he retired by the foregoing
process and in like manner. This process to continue,
silently and without jar to any interest, until all the legal
tender notes are retired. Gold certificates would then be
substituted for legal tender notes; no bonds would be is­
sued by the Government therefor. The Government debt
would be reduced by $346,681,016, less the $150,000,000
gold reserve now held to redeem the notes. The whole
process should he completed within 20 years, then retiring
2 per cent, bonds and national bank notes.
R e tir in g t h e 2 P e r C e n ts.

As the rigid, non-elastic national bank currency is the
sole menace that has troubled the financiers in the past;
also that the issue of currency is recognized as a function
not necessary to general banking; that no injustice be
done to the banks owning the abnormally low rate 2 per
cent. Government bonds, I suggest to limit such issues
to $600,000,000 until the 2 per cent. Government bonds fall
due in 1930, unless otherwise previously provided for. If
not, then gradually reduce the issues on some plan which
will prevent financial disturbances. All excess outstandingover $600,000,000 (now approximately $70,000,000) to be
retired either voluntarily by banks or forced in propor­
tion to amount now outstanding.
The bonds to secure
same to be purchased by the national reserve bank at
market value and an equal amount of untaxed currency to
he used for that purpose out of the $100,000,000 authorized.
No Government bonds of any nature to be hereafter issued
should be used for security for circulation and they should
be sold strictly on their merits. These operations would
he the first retracting steps in correcting past errors.
S e r v a n t,

N ot

M a s te r.

Should we have such a reserve bank, I believe it ought
to be confined to dealings with banks alone, and that no
branches are needed. Is it not a fact that if New York
had had such a bank in 1907 that solvent banks there,
having ample collateral, could have obtained cash through
discounts at the bank of issue? If so, such notices as “ no
cash will be paid on balances” would not have been is­
sued to the country. The simple philosophy of “you got
’em, I no want ’em ” would apply, and general suspensions
would have been avoided. As an ounce of prevention is
worth a pound of cure, why not prevent such cataclysms?
W hat we need is a reservoir from which to quench a con•flagration in its incipiency. W e want a bank, not to mo­
nopolize the necessary banking function or enter material­
ly in competition in normal times with our splendid in­
dependent banking system, but to be our servant in time
of trouble to prevent cash suspensions, with their paralyz­
ing train of evils.
Prof. O. M. W . Sprague, an eminent professor of po­
litical economy in Harvard University, who thinks branch
banking necessary to a hank of issue— and, therefore, im­
possible here— in a long magazine article sums up how he
believes elasticity can be accomplished and cash suspen­
sions avoided in the United States, as follows:
He believes banks taking deposits should pay no in­
terest on balances. They should also hold larger reserves
of cash at all times to meet extra demands in abnormal
periods.
W ith all due respect to Prof. Sprague, although in ac(Continued on Page 58)

4L

T H E C O M M E R C IA L W E S T

HARRIS, WINTHROP

& CO.

2 5 Pine Street, N e w York
Branch Office: The Plaza
The R ookery, Chicago
1 4 6 A d a m s Street

Saturday, November 6, 1909

E. L. WELCH, Pres’t and Treas.
C. A. MALMQUIST, Vice Pres’t
J. W. McCLATCHIE, Sec’y

E.

L

W e lc h

Com pany

GRAINS, STOCKS, BONDS, PROVISIONS

S to ck s,

B on d s,

G r a in ,

M IN N E A P O L IS

P r o v is io n s and C o tto n

ST. PAUL OFFICE,
National German-American Bank Building

„T
„
—MEMBERS—
New York Stock Exchange
Chicago Board of Trade
New York Cotton Exchange
Chicago Stock Exchange
New York Produce Exchange

Send yonr consignm ents o f G r a in a n d S e e d s and future
orders in Grain, Seeds and Provisions, to the pro­
gressive and old reliable firm o f

C . H. THAYER
COMMISSION
Harrison1gjs®

Telephone

*

MEMBERS OF A LL PRINCIPAL

Finley Barrell

M il w a u k e e

S t . L o u is

C H IC A G O

74 B r o a d w a y
N E W YORK

&

B R Y A N

P rivate W ire s

This Y ea r

and

W . G.

MEMBERS—

CHICAGO, Board of Trade
NEW YORK. Ill Broadway
LOS ANGELES, Broadway and Third
SAN FRANCISCO, 285 Pine St.

Chicago Board of Trade
New York Cotton Exchange
New Orleans Cotton Exchange

C O .

CHICAGO

profits

elevato r

m an

W e must have the best wheat to make “ Marvel”
H our — we will pay you a premium for wheat of
extraordinary quality.

CHICAGO

COFFEE AND

&
Stocks

for their D aily M ark et R eport, m ailed free.

for the

THE ROOKERY, 225 LaSalle St.

GRAIN,

2 an d 4 S h e rm a n St.,

Double

John H. Wrenn & Company

BONDS,

PR ESS

Grain, P rovision s,

3 0 Years Active M embers Chicago Board of Trade.

Our Own P rivate W ir e s A tlantic to Pacific

STOCKS,

Cable a d d ress Finbar

the Grain markets will present as good
opportunities for money making as last
year. W r ite to

STO CK S, BONDS
G R A IN , PROVISIONS
COTTON
COFFEE

ISSÄSKSS.

M o n a d n o c k B lo c k
C H IC A G O

*

K a n s a s Ci t y

Commission Merchants

New York Stock Exchange

CO.

Members of New York Stock Exchange
Chicago Board of Trade and
All Principal Exchanges

---------------------------------- -------------------------------------------------------------------------

L O G A N

Peter J. Maloney

Grain, Provisions, Stocks,
Bonds, Cotton, Coffee

CO.

Write for Our Daily Specials
M in n e a p o l is

Frederick R. Babcock

FINLEY BARRELL &

MERCHANTS

2and 4 Sherman St.,

EXCHANGES

^ ou should sell “ Marvel” Flour — our selling
helps and advertising plan will build business for you.

PROVISIONS,

COTTON

W rite

to-day,

L IS T M A N MILL CO.

Private Wires

LACROSSE, WIS.

H I S T O R Y OF MAY C O R N

B O G E R T , M A L T B Y & CO.

My “ History of May Corn” circular “ B” gives exhaustive
data covering the fall marketing period. Sent free.

GRAIN—PROVISIONS

E. W . W A G N E R
98-99-100 Board of Trade

CHICAGO

30 6 -30 7-3 0 8

Postal

T eleg rap h

B ld g.,

C H IC A G O

J. ROSENBAUM GRAIN COMPANY
(IN C O R P O R A T E D )

GRAIN

MERCHANTS

ORDERS FOR FUTURE DELIVERY SOLICITED


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Federal Reserve Bank of St. Louis

CHICAGO

Saturday, November 6, 1909

47

T H E C O M M E R C IA L W E S T

REVIEW OF THE WHEAT SITUATION.
Commercial W e st Office, Minneapolis, Nov. 3.— Today
Chicago December wheat broke one cent more than Min­
neapolis December, which indicates where the pressure
was. The break of about 2c in Chicago was apparently
brought about by considerable short selling for the account
of a few big traders and probably one elevator company.
There has not been much of a short interest of late, but
the inability of legitimate conditions and the buying by
the bulls to advance prices to a higher level, has discour­
aged some holders of the December future, and as a
result there was rather free liquidation in the Chicago
market during the last two days.
Numerous stop-loss
orders were run into today, and on the decline many trad­
ers who have been bearish but have not ventured to put
out lines of short wheat, took courage, and it is probable
that considerable aggressiveness will be shown by them
unless some radically new features develop in the very
near future.
In the Minneapolis market the fact that December de­
clined only iy 8c, while Chicago was declining 2c shows
that the absence of stocks and the continued demand for
wheat from the mills keeps the local market in rather a
healthy condition. There has been very little trading in
futures of late in the Minneapolis market, but it is probable
that on a continued decline there would soon be a large
short interest, because sentiment is more inclined that
way than to the long side. The accummulating stocks at
Duluth are becoming rather a weight on, or at least a
menace to, the market. It is now thought by some of the
elevator and shipping interests that a considerable hedg­

ing pressure will soon be felt on the market from stocks of
wheat at the Head of the Lakes that have not heretofore
been hedged. There is doubtless considerable more wheat
at Duluth than will be shipped down the lakes this fall,
so that it seems reasonable to expect the movement to be
turned toward Minneapolis. Furthermore, it is generally
expected in the trade that farmers will sell wheat more
freely from now on, and particularly just as soon as the
weather becomes unfavorable for farm work. These con­
ditions, and the probability of smaller flour shipments soon,
should result in rather a rapid increase in stocks of wheat
in the Minneapolis elevators. During the last four days
stocks have increased by 40,000 bus, which brings the total
up to 2,500,000 bus.
Still, considering only the situation at Minneapolis,
there is nothing bearish to be seen. The smallness of
the stocks of wheat here and the large amount of flour
which mills have sold ahead should keep the local market
relatively firm. The weakness here during the first two
days of the week, when Minneapolis December sold 3c
under Chicago, was a little difficult to understand. There
seems to be no good explanation for it, unless it was due
to dullness and fair selling of the December and buying of
the May by one of the big mill companies.
The premium on cash wheat has declined % @ l c and
was today 2@2y2c over the December for No. 1 northern.
There was a very good demand for cash wheat from the
mills today, but the terminal elevator companies were
offering but 2c for No. 1 northern over the December and
therefore were not aggressive buyers.

CONDITIONS IN WHEAT GROWING COUNTRIES.
(F ro m B ro o m h a ll’s Corn T rade N ew s.)

Liverpool, Oct. 19.— INDIA.— At this period of the year,
there is not much that can be predicted with confidence
about the wheat crop. The seeding of next year’s crop
is just commencing in the earliest districts, and this opera­
tion should proceed steadily until the end of December.
The season has commenced under ideal conditions, the
monsoon ended in the fourth week of September, giving
prolonged and beneficial rains and should no untoward
circumstances arise it is reasonable to asunre that a full
average acreage will be planted which, under normal con­
ditions, may be relied upon to produce a crop of about
40,000,000 quarters. Owing to the late period, when the
main crop is due to be harvested, only a moderate quan­
tity will be. available for shipment during the current Brit­
ish cereal year. In former years the shipments of new
crop between April 1st and July 31st have been as follows:
INDIAN SH IPM EN TS— 1st April to 31st July.
1909— Qrs. 1908— Qrs. 1907— Qrs. 1906— Qrs. 1905— Qrs.
3,147,000
125,000
1,678,000
1,799,000
2,691,000
In the years when the wheat is badly wanted in Europe,
it is shipped much faster than when it is not competed for
so keenly. This year the wheat was needed to take the
place of the general deficiency caused by reduced supplies
from the United States, Russia and Argentina; prices
were high and consequently the shipments of June and
July were very heavy.- In 1905 there was a great de­
ficiency in the States and Canada, consequently the ship­
ments from India in the early summer were likewise
heavy; in fact, there is no country more susceptible to
the influence of high prices than India.
For the current British cereal year we shall estimate
that India will ship 2,000,000 quarters in the five months,
April-July, 1910, and that of old wheat already shipped since
the first August, 1909, and to be shipped between now
and the end of next March there will be 2,000,000 quar­


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ters, making a total of 4,000,000 quarters for the whole
season.
The last Indian crop amounted to 35,600,000 quarters
and the prospects are so favorable at the start of the new
Indian season that we shall reckon the crop of next Feb.April at fully 10 per cent, over the good average yield of
Feb.-April, 1909, and look for a total out-turn of 40,000,000
quarters.
NORTH AFRICA.— The autumn of 1908 was droughty,
particularly in Tunis, and for a time there were many
complaints. As the winter progressed, however conditions
gradually improved and in the spring the aspect of the
crops was quite favorable.
The improvement was gen­
erally maintained during the summer, but there were occa­
sional complaints, and harvest results have borne out the
early indications, that is, generally good, but unsatisfactory
in some districts. Shipments of the new wheat to France
made a good start, but then fell off; lately, however, we
have had larger quantities reported. The yields on the
interior plateaux are said to be particularly good, and
these crops have not yet arrived in quantity at the ship­
ping ports.
Last year’s crops were small ones, Algeria harvesting
about 3,500,000 quarters, and Tunis no more than 400,000
quarters.
This year’s harvest is estimated at 4,000,000
quarters for Algeria and 500,000 quarters for Tunis. The
average crops of the past seven years have been respec­
tively 3,800,000 quarters and 1,000,000 quarters. The Mo­
rocco wheat crop is of no importance to the international
trade, but it may be mentioned that the present crop is
a fair one.
Last season’s exports from North Africa amounted to
only about 300,000 quarters; this season we shall depend
upon that region for a supply of 800,000 quarters.
A U ST R A L IA .— Further rains are reported and our cor(Continued on Page 52)

48

T H E C O M M E R C IA L W E S T

FLOUR AND MILLING.
The flour trade is generally described as dull by the
millers this week. In fact, it has been rather dull for
the past two or three weeks.
Some of the millers are
complaining considerably about the slowness with which
shipping instructions are coming in. Although most of
the mills have flour sold to keep them running for 60 days,
some of them are really pressed for instructions in order
to get out the flour to keep going steadily. Some flour
sold for October shipment has not yet been ordered out.
An occasional mill, however, reports no difficulty in this
direction.
It begins to appear that flour buyers have
bought more flour than their legitimate trade demands
required. In other words, there has been rather general
speculating by the flour jobbers. Current business with
the mills now is mainly from the small dealer, who is
compelled to buy about every so often, regardless of price
or other conditions. The output of the Minneapolis mills
has of late been a little greater than what is usually re­
garded as a full capacity production— in other words, they
have been crowding their capacity to the utmost and prob­
ably could not make more flour during a week’s run with­
out operating seven days.
MINNEAPOLIS BARLEY MARKET.
There are no marked features in the local barley mar­
ket this week. There is a good general demand for barley,
which cleans up each day’s receipts fairly well. There is
little or no change in prices from a week ago, though some
choice malting barley has brought 2c higher than last
week’s top quotations.
The entire range of price is
48@ 62c. It is noticeable that there are more maltsters in
the market from other centers than there have been until
recently. Receipts of barley are rather large; still, stocks
in local public elevators are not increasing. In fact, there
was a decrease of 30,000 bus last week. The total on the
28th was 1,021,000 bus. Receipts of barley at Minneapolis
since September 1 have amounted to 8,260,000 bus, as
compared with 8,365,000 bus during the same period last
year.
M I N N E A P O L I S OATS M A R K E T .
The Minneapolis oats market is mainly a local affair,
as it continues above a shipping basis to the East most of
the time. Receipts continue in excess of a year ago, and
since September 1 have amounted to 5,443,000 bus, as com­
pared with 4,416,000 a year ago. Stocks in Minneapolis
public elevators increased 159,000 bus last week and were,
on the 28th, 1,459,000 bus.
There is considerable complaint regarding both quality
-and the grading of oats in this market. Early in the sea­
son there was promise of a crop of exceptional quality and
the weight of the first run of oats was really remarkable.
There was also a tendency on the part of the inspection
department to preserve the integrity of the various
grades— giving neither the buyer nor the farmer any
advantage.
There is complaint now, however, that the
farmer is getting more than is due him, by reason of mak­
ing the grades too low.
F L A X S E E D A N D L I N S E E D OI L.
Despite the steady advance in flaxseed prices, there
has been a good demand for spot linseed oil until Tuesday,
which brought a setback of 5c in flaxseed futures, buyers
doubtless waiting to see if a further decline would not
follow.
The remarkable advance in futures is said to
have caused sad havoc among shorts in the Duluth market.
There was a big short interest there and the “killing” is
reported as being very large. The break today was prob­
ably mainly the result of larger offerings of flaxseed to
arrive. In fact, Duluth reports such offerings as rather
large. There were none here, though— the movement is
apparently all headed for Duluth.
For several weeks past there has been an excellent
demand for linseed oil for prompt shipment, due, as has
been repeatedly said in this department, to the absence of
stocks in every position throughout the country. Until quite
recently there was little inclination on the part of buyers
to buy for deferred shipment. During the last few days
there has been some such tendency. Reports from the
East still are to the effect that stocks of oil, not only in
jobbers’ hands but in manufacturers’ as well, are very
low. Owing to the big advance in flaxseed prices some
of the paint and linoleum manufacturers are reported to be
closing down because of their inability to advance their
prices as rapidly as linseed oil advances. Owing to the
nature of the business, it is impossible. Yet higher prices
for their manufactures are absolutely necessary.
They
have all the fall been buying oil from hand to mouth,
which necessitates an advance in prices of their goods
relatively to the advance in linseed oil prices.
There continues to be a strong demand for oil cake and
$30 is obtained f. o. b. Minneapolis per ton of 2,000 lbs.
Receipts of flaxseed in the Minneapolis market since


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Saturday, November 6, 1&09

September 1 have amounted to 3,310,000 bus, as com­
pared with 3,880,000 bus in the same time last season.
There was a slight increase in stocks of flaxseed in Min­
neapolis public elevators last week, and the total on the
28th was 199,000 bus.
REBUILDING

MILL

AT

PORTLAND.

(S p ecial C orresp on den ce to the C om m ercial W e s t.)

Portland, Oregon, Nov. 1.— Reconstruction of the mill
of the Portland Flouring Mills Co., which recently burned,
is progressing rapidly. Foundations have been laid for the
new mill, which will be 60x100 feet, six stories high, of
concrete and frame construction.
In this building will
be installed machinery having a capacity of 2,500 barrels
per day. Upon the completion of this building the com­
pany’s plans provide that work shall be begun at once on
a second mill unit having the same capacity.
All of the machinery for the new mill has been or­
dered from eastern manufacturers and will be delivered
here by the time the building is far enough along for its
installation.
The cost of the completed plant, including elevator and
storage tanks, will approximate $350,000.
P O R T L A N D ’S G R A I N E X P O R T S .
(S p ecial C orresp on den ce to the C om m ercia l W e s t.)

Portland, Oregon, Nov. 1.— The French bark “Duquesne”
is the latest of the grain fleet to clear from this port,
carrying 110,536 bus of wheat. This is the eleventh grain
carrier to get away during October. The eleven vessels
so far cleared during the month carry a total of 1,633,446
bus (flour and barley included). During the same period
of October last year the same number of vessels cleared
but carried considerably less cargo.
3 / 2c R A T E FOR W H E A T F ROM F O R T W I L L I A M .
Duluth, Minn., Oct. 28.— A record price for the car­
riage of wheat— 3 % c — was offered at Fort W illiam yester­
day, with no takers.
The situation at Fort W illiam is altogether unusual
and is causing local grain shippers much anxiety. W heat
in unlimited quantities from the Saskatchewan district is
pouring into this port and the elevator tonnage is nearly
exhausted. At the highest mark of the season not a single
boat could be chartered for grain. Vessel owners will not
accept the high offer which is equivalent to $1.20 for ore
shipment or 65 per cent, more than the boats are getting
for carrying ore.
The best rate of the season at the local port is 3 cents
on two storage cargoes of flax from Duluth to Buffalo.
Tonnage for more than a million bushels was chartered
at a rate which is equal to nearly $1.20 for ore.

BUF FA LO GRAIN E L E V A T O R EM P L O Y E E S C O N T IN U E
AT WORK.
Buffalo, Oct. 29.— Late this afternoon the monthly
hands employed in the grain elevators here, who have
been considering a strike, had a meeting, but adjourned
without decision until next Wednesday, when they will
have a conference with their employers. In the meantime,
the men will continue to work.
N A T I O N A L B I S C U I T ’S E A R N I N G S .
Chicago, Oct. 29.— The earnings of the National Bis­
cuit Co. are said to be at the rate of about 10 per cent, for
the year on the common stock.
W E STE RN UNION NOT A “COMMON CARRIER.”
Lincoln, Neb., Oct. 28.— The W estern Union Telegraph
Co. yesterday appealed to the supreme court from a con­
viction in the lower court of having violated a state law
by changing its rates without first having procured per­
mission of the State Railway Commission. The company
contends it is not included in the terms, “ common car­
rier,” and does not come under jurisdiction of the Rail­
way Commission.
E. N. F A I R C H I L D T O L E A V E P I L L S B U R Y CO.
E. N. Fairchild, for twenty-five years with the Pillsbury
Co., and recently elected manager of the newly-organized
company, has decided to go into the flour jobbing business,
in the spring, in the East.

The ALBERT DICKINSON CO.
DEALERS IN

FLAX

SEED

GRASS SEEDS,
CLOVERS,
BIRD SEED,
BUCK-WHEAT, ENSILAGE CORN, POP-CORN,
BEANS, PEAS,
GRAIN BAGS,
ETC.
MINNEAPOLIS OFFICE,
109 C hamber of C ommerce .

CHICAGO

Saturday, November 6, 1909

49

T H E C O M M E R C IA L W E S T

THE CHICAGO GRAIN MARKETS.
(S p ecial C orresp on den ce to the C om m ercia l W e s t.)

Chicago, Nov. 2.— There have been few changes of im­
portance in the wheat market. The range of fluctuations
was circumscribed by the lack of business, due in a great
measure to the fear that congestion will be in evidence
next month and a squeeze of the shorts perpetrated. The
market is still leaderless. The big bulls are studying the
situation. The big bears are in the same position, while
the room traders of prominence who operate on hunches
and take advantage of the weaknesses of their brethren
have been reaping only a small harvest. Changes in De­
cember did not exceed 2c and the more distant futures
changed still less.
A t most times the market wears an oversold appear­
ance.
Chicago stocks of contract grain are extremely
small, being only 1,207,000 bus, against 4,111,000 bus a
year ago. Stocks of wheat in public and private elevators
are only 4,404,000 bus, which compares with 8,666,000 a
year ago. There is no No. 1 hard or No. 1 red in store
here, the contract grades being limited to No. 2 hard,
No. 2 red, both in homeopathic quantities, and No. 1
northern. At the present time there is only 260,000 bus
No. 2 red in store, while a year ago the supply approxi­
mated 2,220,000 bus.
The consumption has approximated 40,000,000 bus
monthly, and, although about 120,000,000 bus of the new
crops has so far been marketed, the supplies at leading
points are far from burdensome. The demand from millers
has been unceasingly keen, and, while current reports
told of a 'fa llin g off in the demand for flour and conse­
quently lessened demand for cash wheat, the grain has
disappeared in sundry spots to such an extent that the
visible supply is no longer a reflector of the movement at
primaries. On all sides a larger movement is anticipated
and consequently a larger volume of hedging sales is
looked forward to, but it does not show.
The bears fear the manipulation of December in Chi­
cago, Minneapolis and Kansas City. In this market there
has been a large volume of buying offset by selling chiefly
in Minneapolis. There has also been a large short inter­
est put out by cash houses in a position to make deliveries
of the article.
Millers have bought a lot of December
wheat against sales of flour and took on a big line of May
rather than take on a big line of cash wheat to carry.
The bears are fearful of manipulation.
They fear that
the Patten interests have quietly bought, and consequently
have not stood on short sales.
*
*
*
On the subject of foreign demand and supplies, Shipton,
Anderson & Co., of London and Liverpool, say, under date
of October 22:
W h e a t has been a flu c tu a tin g , m ark et th rou g h ou t th e w eek,
m o stly w ith an easy tendency, and com p ared w ith last F rid a y
ou r op tion s sh ow loss o f 2% d fo r D ecem ber, 2y2d fo r M arch,
and 214*1 fo r M ay. T h e prin cip al fea tu re has been the alm ost
total cessa tion o f con tin en tal dem and.
R ussian shippers are
sh ow in g m o re in clin a tion to o ffer to the U nited K in gd om ,
th ou g h p rice s so fa r are n ot v e r y tem ptin g.
H ard o r so ft w in ters are n ot offered, an d th e m arket here
is cleared.
T here is som e little dem and fo r durum s, and if
p rices w e r e to fall fu rth e r a b o u t 6d qr. rela tiv ely w e think

English Crop Returns.
Consul Frank W . Mahin writes from Nottingham, under
date of October 4, as follows in regard to the crops of
England for this season:
The crop season now closing has been remarkable in
several respects, particularly in the almost incessant rain­
fall and the extremely low temperature. A s a rule, in this
locality grate fires were necessary for indoor comfort at
evening and often in daytime during the entire summer.
The most important exception was a period of ten consecu­
tive sunny days in August without rain.
September is
often dry and warm in this country, but the hope that the
past month would be the same was disappointed.
The persistent rainfall and sunless sky seem to have
completed the destruction of the potato crop in this dis­
trict, which a favorable September might have saved. In
Lincolnshire, one of the chief potato sections of the King­
dom, the downpour was so great at times that some fields
were almost flowing streams.
Potatoes are now being


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there w ou ld be quite a fa ir trade. W e find no dem and fo r D u luths, th ou g h a t the sam e tim e A m e rica d oes not sh ape as a
seller.
W ith reg ard to M anitobas, there has been w h at w e m igh t
term a streaky business first hand, but w e do not find C anada
a t all a free seller. T here is quite a b ig con su m p tive dem and
fo r these w heats, m illers a re ta k in g them freely, an d w e look
fo r a con tin u a n ce of this unless R u ssian s should becom e rela ­
tively cheaper.
P ros p ects fo r the P late crop continue v ery
good , and shippers are m ore inclined to offer, though their
v iew s are 6s 9d ab ove b u y ers’ ideas. A u stralian crop p rosp ects
con tin u e brilliant, and shippers are m ore inclined to sell. P a ­
cific C oast sh ippers are also sellers, but In d ia keep s ou t o f the
m arket.
A s to the fu tu re, the tw o fa cto r s are, firstly, R ussia, and
secondly, the ou tlook fo r th e P late crop — the latter, _o f course,
only a ffe ctin g thg m ore d ista n t p osition s. T he qu estion is, will
R u ssia be a fu rth er large shipper this y e a r? It certain ly looks
as if a cou n try that can m errily ship 1,100,000 qrs. w eek ly
has enorm ous reserves to fall b a ck upon. I f th e con tin en t c o n ­
tinues out o f the m ark et R u ssia m ay have to find a hom e fo r
her w h ea t in the U nited K in gd om , and this, o f course, w ou ld
have a m aterial e ffe ct on prices.
T he b ig a d v a n ce in the
bank rate is also a stron g fa c to r in the situation, and w ill e n ­
cou ra g e m ost m illers here and abroad to a d op t a hand to
m outh p olicy in buying.

*
*
*
Coarse grains have been stronger and the bear faction
was more easily dislodged this week than for some time
in the past.
Husking returns are most irregular and
there is an insufficient supply to create alarm among the
chronic bears. The trade believes that corn is low enough,
but cash buyers have a different mind, offerings beingample, according to their views. W here husking started
last week in Illinois and Iowa, however, the corn was
found to be too green for cribbing, and work was conse­
quently deferred. A t the same time there is a real scarcity
of choice old in the market in spite of the fact that last
week’s receipts were double last year’s, while shipments
were only 400,000 bus larger than in 1908.
On the subject of values, a Liverpool correspondent
says: “ Corn has been distinctly better. Plate corn closes
up about iy2d cental dearer on the week for options and of
this week’s shipment, the continent takes practically all.
W e understand that shipments will continue small in the
future and big premiums are being paid for distant posi­
tions. The consumptive demand, however, remains very
slow. There is more interest expressed in mixed maize.
A fair quantity of December Galveston has been can­
celled with America. W e could place a few loads of old
corn if offered reasonably and there is also a little more
demand for December and January northern.
If Plate
shipments keep small as prophesied we shall be mostly
dependent on United States for our supplies at the end of
the year and there should be a good trade passing in
mixed. Stocks of Plate corn in Liverpool, however, are
very big and will take a lot of working down at the present
rate of consumption.”
;
*
*
*
Oats were dull all week and developments uninterest­
ing. Fluctuations were confined to narrow limits, leaving
the cash interests in control of the market, buying on the
breaks, but selling on the hard spots. Most of the buying
was to relieve hedges on account of enlarged cash offer­
ings, and the plentitude of offerings offered no inducement
to the speculative community to indulge in wild flights of
imagination.
Consequently the trade was confined to
supplying the cash necessities.
dug in that county, but the crop is disappointing in every
respect.
Other root products seem to be less affected
than potatoes. Of mangels, for instance, which are fed to
stock, a large crop is promised, though it is feared that
the lack of sunlight will make their feeding quality de­
ficient.
Stock which was unavoidably exposed to the weather
has suffered in health, and sheep have been lost in Lin­
colnshire by the overflowing of rivers. The abundance of
grass, however, has been a source of strength, without
which the stock would have suffered still more.
H igh

W h e a t Yield,

But

Large

Im p o rt s .

Reports on the wheat crop are distinctly favorable as
to quantity, but the harvesting has been trying and ex­
pensive. Much wheat after the cutting lay in the fields
and was rain soaked, and in Lincolnshire some was liter­
ally washed off the fields by the floods of rain. Garnering
was done by hurried snatches between showers. The area
planted to wheat this year was larger than in 1908— nearly
(Continued on Page 51)

50

th e

c o m m e r c ia l

Saturday, November 6, 1909

w e st

LONG SWINGS OF THE MARKET FOR 13 YEARS.
(From the W all Street Jou rn al.)
Since the recent high point made by the market almost
two months ago, it is remarkable how prices have clung
to the new level. The fluctuations of the twenty railroads
ahd the twelve industrial stocks for October have been
practically negligible, the railroads sticking to the level
Of 130, and the industrials around 100. It is a fact that
the market, since the fall of 1907, has progressed by spurt­
ing to a new high level, and there hanging for a while,
until it became accustomed to the new altitude, and accu­
mulated force for the next upward spurt." W hatever set­
backs have been in this bull market have not much ex­
ceeded five points, so far as the averages are concerned.
So far as the yield on standard stocks is concerned, it
is generally conceded that prices are now abnormally high,
and it is a fact that although the average dividend rate
is higher than it has been since 1900, yet even upon this
basis stocks are relatively higher than the investing pub­
lic has been accustomed to figure its income. Some stocks
have certainly discounted to a great extent the improve­
ment in business which the country has shown, others have
seemed quite unresponsive, and many interpret the pres­
ent technical position of the market as one of hesitancy
until the more sluggish issues have caught up. From the
experience of the past, so far as the averages are con­
cerned, it would certainly look as if all indications point
to a further appreciation marketwise.
However the in­
crease in call money rates and the demand for currency
for the crop moving seems at least to have put a brake
upon the upward tendency.

Railroad weekly gross earnings now reported are at
the highest point that they have been in several years, the
various industrials report satisfactory conditions in busi­
ness and bank clearings are on the increase, all of which
reflect the remarkable recuperation of this country from
the recent financial depression.

the last two years has been, both in extent of the move­
ment and brevity of the time, the most remarkable in his­
tory.

This fact is brought home forcibly when it is re­

membered that just two years ago this time Union Pacific
sold at par, and steel common was quoted around 25, while
the other stocks were proportionately as low.
The following chart exhibits the high and low yearly
for the past thirteen years; the high and low monthly dur­
ing 1909, and the daily movement of the averages up to
October 16. The twenty active railroad stocks used are:
Atchison, Brooklyn Rapid Transit, Canadian Pacific, Dela­
ware & Hudson, Northwestern, St. Paul, Twin City Rapid
Transit, Erie, Louisville & Nashville, Northern Pacific,
Missouri Pacific, New York Central, Pennsylvania, Read­
ing, Southern Pacific, Southern Railway, Union Pacific,
Norfolk & W estern, Baltimore & Ohio, and Illinois Central.
The twelve industrial stocks used are: Smelters com.,
Amalgamated Copper, Rubber first pfd„ National Lead
com., Steel pfd., Peoples Gas, Rubber Corn., Steel corn.,
Sugar com., General Electric, Colorado Fuel & Iron com.,
and American Car & Foundry com.

H i g h and L o w Po in ts of t h e A v e r a g e P r ic e s

D u r in g

-T w en ty R a ilroa d S tocks
H igh
D ate
L ow
Septem ber
132.8S
20
127.48
A u gu st ..
134.46
14
12S.71
July ........
131.24
31
127.56
128.28
11
124.92
126.13
13
123.57
A pril . . .
123.48
22
121.11
M arch . .
121.64
31
115.86
F ebruary
119.90
15
113.90
January
2
120.93
116.93
134.46
A ug.
113.90
120.1)5
D ec.
86.04
131.95
Jan.
81.41
138.36
Jan.
120.30
1905
133.54
Dec.
114.52
1904
119.46
D ec.
91.31
1903
121.28
Jan.
88.80
1902
129.36
Sept.
111.73
1901
117.86
92.66
M ay
1900
94.99
Dec.
72.99
1899
87.04
A pr.
72.48
1898
74.99
Dec.
55.89
1897
67.23
Sept.
48.12
H igh est in history tw en ty railroads 138.36; tw elve in d u stria ls 103.
L ow est in history tw en ty railroads
48.12; tw elve in d u strials 38.49.


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Still it must be remem­

bered that in many respects the swing of the market in

t he

Past Th irtee n

Y e a rs .

—

Date
9
26
1
2-1
1
2
11
23
30
Feb.
Feb.
N ov.
M ay
M ay
Mar.
Sept.
Jan.
Jan.
June
Dec.
A pr.
A pr.

H igh
100.12
99.26
96.79
94.46
92.18
88.29
86.12
S6.72
86.95
100.12
88.38
96.37
103.00
96.56
73.23
67.70
68.44
78.26
71.04
77.61
60.97
55.82

Date
28
14
31
5
28
30
31
15
7
Sept.
N ov.
Jan.
Jan.
Dec.
Dec.
Feb.
A pr.
June
Dec.
Sept.
A ug.
Sept.

L ow
95.86
96.30
92.82
89.66
88.32
83.37
81.64
79.91
84.09
79.91
58.62
53.00
85.18
68.76
46.41
42.15
59.57
61.52
52.96
58.27
42.00
3S.49

Date
9
26
13
21
1
1
9
23
30
F eb.
N ov.

Sept.
Dec.
M ar.
A p r.

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

Wheat Yields in the Canadian West.
(W innipeg- F ree P ress.)

The recent unfriendly remarks of the St. Paul Pioneer
Press with regard to wheat yields in the Canadian W est
noted a few days since in these columns were hardly
wise in view of the ease with which facts and figures
from reliable sources can always be obtained on these
matters.
Indeed, it was only needful for the Pioneer
Press to go as far as the files of papers published in the
Twin Cities, for the figures for all cereals complete up
to 1907, growing acreages, average and total yields. At
any momept, had it applied to the governments of the dif­
ferent provinces or to the Dominion government it would
have been furnished, promptly, and free of cost, with all
the figures in connection with wheat growing in the Cana­
dian W e st covering a period of 20 years. It is just prob­
able the Pioneer Press was not as anxious for accurate
figures as it pretended to be; the contrast would have been
too painful.
No one in Canada grudges Minnesota her
bumper crop, or her yield of 16.5, the largest since the
early years of wheat raising in that state, but as the Pio­
neer Press has chosen to raise the question the opportu­
nity must not be lost of pointing out that the average yield
for the province of Manitoba for a period of 20 years has
been 18.98 while in many years the average yield ran
from 20 to as high as 27. The lowest yield on record was
that of the drouth year of 1889 when the average dropped
to 12.4, while as recently as 1906 Minnesota's average was
only 10.9.
The Northwest Territories from 1898 to 1904 had an
average yield of 18.5 for spring and 19.98 for fall wheat.
In the five years since 1904 the average wheat yields of
the three western provinces have been as follows:
1905
21.07
23.09
21.46

M an itoba ..........
S ask a tch ew an .
A lb erta ..............

1906
14.49
18.50
23.07

1907
14.22
14.04
18.25

A p prox.
1908 1909
17.28
15
19
13.68
25
18.81

The average yields for the three big spring wheat
states for the same years were as follows:
M in n esota ........
N orth D a k ota .
S outh D a k o ta .

..
..
..

1905
13.3
14.0
13.7

1906
10.9
13.0
13.4

1907
13.0
10.0
11.2

1908
12.8
11.6
12.8

acre this year, grown upon 1,860,000 acres, and states that
this estimate gives the largest crop grown in Great Brit­
ain since 1899, and that this increase is chiefly due to the
high acre average.
The average per acre in 1908 was
32.42 bus. A field of wrheat just threshed west of this city
yielded 68 bus per acre, said to be a record for Notting­
hamshire. Another field east of the city yielded 60 bus
per acre.
In quality, however, results are less gratifying. W hile
a final opinion cannot yet be expressed on that point, it is
believed that much of the wheat will not be of milling
quality. The spring-sown wheat seems to have fared bet­
ter, on the whole, than the autumn and winter.
Notwithstanding the unusually large home crop (as­
suming that but little of it is unmillable), it will take fourtimes as much foreign growth— or about 200,000,000 bus—
to supply the British demand for the current year. There
is nothing specially noteworthy about imports at the pres­
ent time, except perhaps that huge supplies of wheat have
been coming from India during the past tw-o months, ap­
parently attracted by the prices. It is not expected, how­
ever, that this oriental inflow will continue indefinitely.
Generally speaking, eastern England, which includes
this district, has suffered the most from the bad weather;
western England, W ales, and Scotland the least. Particu­
lars satisfactorily definite are not yet available as to the
condition of crops in this district other than those men­
tioned.

F. H. W AG N ER AGENCY
Fire Insurance
N e w York Life Building
, Both Phones 584

Clinton Morrison , Pres’t
L. C. Mitchell , V-Pres’t

Minneapolis, Minn.

E. B. Mitchell , Sec’y
H. F. DOUGLAS, Treas. and Gen. Mgr.

G rea t W e ste r n
E lev a to r Com pany
MINNEAPOLIS,

MINNESOTA

1909
16.5
lb . 1
14.1

The yields for 1909 in the Canadian W e st are so far
only estimates. The Free Press is using the estimated
yields made by it in August last. It is more than prob­
able that so far as Manitoba is concerned the average
will be nearer 17 than 15 bushels as the wheat already
threshed shows less damage from heat than was feared
just at harvest time. The Saskatchewan yield is not like­
ly to be altered, judging by threshing returns up to date
and the Alberta estimate is possibly a little too high.
In a country as new as the Canadian W e st and where
the acreage under cultivation is being added to so exten­
sively each year it will always be a little difficult to se­
cure the average yield to the fraction of a bushel, but the
a. rovincial and Dominion governments alike are making
every effort to procure and publish the most accurate fig­
ures and in any case there is never likely to be more than
a fraction of a bushel between the actual and the pub­
lished yield.
The average wheat yield of the Canadian W e st is one
to be proud of, when it is taken into consideration that
so large a percentage of the farmers either came from
countries where their previous knowledge of agriculture
was of little practical use to them here or had no practi­
cal knowledge of agriculture whatever. W hen, however,
the average of yield is placed over against the many in­
dividual yields of 35 and 40 bushels per acre on farms
where there has been careful and intelligent cultivation
it shows plainly tnat the farmers of the Canadian W est
as a whole are not doing their duty by the splendid soil
which they have to cultivate. If care is not exercised
there will come a time in the history of Manitoba and
Saskatchewan and Alberta when the average yield will be
no higher than it is in Minnesota and the Dakotas today.

English Crop Returns.
(Continued from Page 49)

200,000 acres more in the entire Kingdom. The yield per
acre is placed above the average— 31.53 bus during the
past ten years, A local authority estimates 33 bus, per


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51

COMING
EVENTS
National Farm Land Congress
At Chicago, Nov. 16 to 20.

United States Land and Irrigation Exposition
At Chicago, Nov. 20 to Dec. 4.

International Live Stock Exposition
At Chicago, Nov. 27 to Dec. 10.

Third National Corn Exposition
At Omaha, Dec. 6 to 18.
For all these events the

North-Western Line
will make

SPECIAL EXCURSION RATES
From Minneapolis, St. Paul, Duluth, Superior and other stations on
the line in Minnesota, Wisconsin and South Dakota.

52

T H E C O M M E R C IA L W E S T

LESLIE’S BOND
Possesses an indescribable something that
makes it different from all other medium
priced Bond Papers, which makes you like
it when you look at it, and respect it when
you have used it.
It appeals to the buyer who has a knowledge
of paper values.
It produces high class
stationery, something outside the ordinary
and above the common level.
Ask your printers to show you
samples— or we will mail you a
sample book for the asking.

The JOHN LESLIE PAPER COMPANY
PAPER

W AREH O U SE

MINNEAPOLIS

Conditions in Wheat Growing Countries.
.

(Continued from Page 47)

respondent at Sydney cables that conditions are favorable
throughout the Commonwealth.
AR G EN TIN A.— Latest cables from our Buenos Ayres
agent report that crops are growing well, but locusts are
still about and have caused some damage to tlie northern
wheat crop. Mail advices also give very favorable news
of the crops, although they, too, mention nrore or less
locust damage. Cables received by prominent firms give
very favorable accounts of the actual condition of the
wheat crop. Guesses of the probable exportable surplus
are now being circulated and we hear 14,000,000 quarters
mentioned, but it is early yet for these; however, we can
say that crop prospects are good enough to encourage for­
ward selling and this has been a feature of the trade the
last day or two.
INDIA.— Our Calcutta agent cabled yesterday that the
sowing of the new crop is now general and it is being done
on a larger scale than usual. This general sowing must
be understood in the earlier districts, we believe the big
northern crops are always seeded later, and even the
early part of January is not too late for the Punjaub and
neighboring provinces. Some shippers maintain there are
still fair quantities of old wheat to be shipped.
R U SSIA.— Reports on the new seedings from the south
and southwest are, on the whole, unfavorable, the intense
drought having caused the seeds to sprout unsatisfactorily
and good soaking rains are much needed. Advices from
the other parts of the empire say that ploughing and sow­
ing have been nearly completed and the crops have come
up nicely. An active business is now doing in the Baltic
ports, whilst the southern exporting centers mention some­
what smaller receipts. It is said that both arrivals and
offerings have reached their culminating point and are
now about to decline. Large quantities of grain are go­
ing into store and both growers and handlers insist on
higher prices. Low water in the rivers and the still pend­
ing dispute about mat money are causing further troubles
and may result in smaller shipments.
RO U M AN IA.— Weather very favorable for the planting
of new winter crops and wheat sowing has nearly come to
an end. A full acreage is expected and it is confirmed
that the new seedings have had an excellent start. Sup­
plies of native wheat are getting scanty and we hear of
the transhipment of Russian wheat at Galatz, the stuff
coming from the Azoff for Hungary.
BU LGAR IA.— The autumn seedings have been finished
this year very early and under the most favorable weather


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Federal Reserve Bank of St. Louis

Saturday, November 6, 1909

conditions. They are now in excellent shape. According
to the latest official report, the weather of the last month
was not favorable for the cutting of maize, which is now
finished. The average yield is estimated at 18 bus per
acre and is thus lower than last year’s early estimate. The
condition of new maize is described as damp.
H U N G AR Y.— Weather ideal from the growers’ point of
view; constantly mild and sunny, with occasional showers.
The development of the new seedings gives general satis­
faction. Arrivals of Roumanian wheat are on a liberal
scale and from August 1 till September 30, 894,000 quar­
ters of foreign wheat were imported. Budapest is recently
reported as a free buyer of Itussian wheat.
FRAN C E.— Autumn sowing is making fair progress
and the early sown is said to be satisfactory, though dam­
age by worms is mentioned. The estimate of the French
Millers association gives the total out-turn of wheat for
this year 47,700,000 quarters, against 45,000,000 quarters
estimated by the government. The markets of late have
been quiet, but probably a fair amount of business has
been done, for both offerings and demand have been nor­
mal. A spell of dry weather is now needed for the com­
pletion of sowings and lifting of root crops.
GERM ANY.— The weather of late has been generally
favorable for field-work. Growers are busily engaged with
the planting of new crops and supplies of native wheat
are very scanty. Recent reports confirm poor quality of
native wheat and our Hamburg correspondent maintains
that the crop is considerably short, compared with last
year’s, if allowance be made for this, and he predicts
larger imports will be required. After having shown great
strength, the principal markets turned generally easier on
a decreasing consumptive enquiry and large arrivals of
foreign sorts. In the early part of the week a fair export
business was done with Bohemia and Switzerland.
IT A L Y .— Though it is confirmed that the south har­
vested a good wheat crop, our Naples correspondent re­
ports that the supplies of native stuff are nearly exhausted
and large purchases of foreign wheat have been made for
November-December. The maize crop receives rather un­
favorable mention. According to the last official report,
the new seedings had a good start and beneficial rains
have fallen of late.
SPAIN. W eather fine and the seeds are sprouting sat­
isfactorily. Offerings of native wheat are still insufficient
and holders are firm.
H OLLAND .— Dry weather favored the gathering of po­
tato and sugarbeet crops. Recent arrivals show great im­
provement in the quality of the new wheat.
SER VIA and T U R K E Y .— Good soaking rains prepared
the land for autumn sowing, which is going on with full
force.
❖
*
*
Am erican

Export

Flour

Trade.

A feature of Chicago reports of the past week has been
the frequent mention of export sales of flour. W e have
heard these reports of flour sales called uncomplimentary
names and we rather expect that had quantities been men­
tioned they would not have run to large figures, but for
all that wre look on the reports as distinct evidence of
more active trading than what we have been accustomed
to in l ecent times. United States statistics still show that,
although more flour is being sent forward from the W e st
this season, seaboard receipts show no corresponding inci ease, the extra stuff being swallowed up by the hungry
middle states. Mail advices from the other side continue
to mention moderate or poor export business in the states,
where better prices can be obtained from home buyers
but a brisk business in Canada.
No doubt these reports must be understood in a rela­
tive sense, because a glance at our shipping supplement,
is sufficient to show that at present the states are sending
to Europe much more flour than is Canada. It is a fact,
however, that the weekly quantities are now running de­
cidedly larger than at this time last year, and generally
we can say that there are very fair prospects that the im­
provement will be maintained.
. There _is no change to note as regards the smaller
shippers in Europe— they do not promise much for this
country, but France is taking in a lot of Russian wheat
“ on temporary admission” and some of it, or rather the
flour exported against it, may eventually come this way,
but most will go somewhere else— to Egypt, Turkey, etc'
Australian crop prospects are very good and Argentine
good, but these countries are not likely to find it easier
to compete with their flour on our markets in the future
than in the past. The national course of the trade does
1 not set that *way.
f

Saturday, November 6, 1909

A M E R I C A N M A L T I N G CO. ’S R E P O R T .
New York, Oct. 28.— The report of the American Malt­
ing Co. for the fiscal year ended August 31 last, has been
issued. The income account compares with the previous
year as follow s:
1909.
Gross profits ......................................................$880,993
Interest, taxes, betterments, e tc ............. 323,610

1908.
$1,319,999
367,295

Net profits ................................................. $557,383
$952,704
In addition to the foregoing, during the year, the com­
pany derived proceeds from sale of unused properties, in­
surance from fire loss at Milwaukee, W is., and mortgage
taken in part payment for Erie property, amounting to
$48,342, as compared with $44,339 in the year previous.
During the year plants and good will account was in­
creased $6,901, owing to expenditures for construction, and
reduced $33,342, the $15,000 mortgage taken in part pay­
ment for Erie property having been credited to “ plants
and good will” in April, 1908. There was acquired during
the late fiscal period, in settlement of an obligation, a guar­
anteed mortgage of $42,000 on New York city property.
Adding this amount to the mortgages already held and de­
ducting therefrom the $15,000 mortgage on the plant in
Erie, Pa., formerly owned by the company, which was
paid off, together with a reduction in amount of $10,000 in
the mortgage held on the W ilson street property in
Brooklyn, leaves “ mortgages on real estate” as an asset
of the company amounting to $129,000.
Owing to the payment by the company of two dividends
during the year aggregating $3.12 per share on the pre­
ferred stock and in consequence of the provisions of the
first mortgage securing its outstanding bonds, the com­
pany became indebted to the sinking fund in the sum of
$225,264 and settled the same by the delivery of bonds to
the trustees of the sinking fund for cancellation to the
amount of $218,000 (par value), said bonds being credited
by the trustees of the sinking fund at par and accrued
interest, together with cash for the balance not repre­
sented by the bonds at par and accrued interest. The out­
standing mortgage bond liability of the company was re­
duced by $267,000 during the year.
Current assets of the company on August 31 last,
amounted to $5,566,101, of which amount $2,853,263 repre­
sented cash in banks and trust companies, $1,544,941 ac­
counts and bills receivable and $828,171 inventories, the
balance being composed of bonds, mortgages, etc.
Cur­
rent liabilities, on the same date, totaled but $57,232,
which left a net working capital of $5,498,869.
The balance sheet showed a profit and loss surplus on
Aug. 31 last, of $980,207, as against $1,430,735 in the year
previous. There was an increase in cash on hand and in
banks of approximately $1,400,000 as compared with the
previous year.
COPPER SALES LARGE.
New York, Oct. 30.— Important sales of copper by one
of the larger selling agencies were reported Wednesday,
at a price close to 13c. The exact amount of the metal
which changed hands was not made public, but it was
said to be in the neighborhood of 75,000,000 pounds, the
chief purchaser being one of the larger brass companies.
The strength in Amalgamated, although the United Metals
Selling Co. was not the agency which made the sales, and
other coppers, both on the big board and the curb, was at­
tributed to the improvement in sentiment in the copper
trade brought about by the above reported transactions,
and it was freely predicted in metal circles that the cop­
per market had seen its lowest levels for some time to
come.
Copper interests look upon the situation more optimis­
tically than for a long time past, owing both to the better
domestic demand of late and the improvement in exports.
Shipments for the month promise to run well over 50,000,000 pounds, according to the Government figures, and since
sellers report that exports are running heavier as the end
o f the month approaches, it is likely that the producers’
figures will show at least 5,000,000 pounds more than the
Government figures. On this basis exports for the month
would be about 57,000,000 pounds, which, with domestic
deliveries of 60,000,000 pounds, would bring total deliver­
ies for the month only 3,000,000 pounds under the esti­
mated production of 120,000,000 pounds. Only a slight in­
crease in the above estimates of exports or domestic de­
liveries would enable the producers to show a small de­
crease for October stocks in the United States.
The foreign visible supply will show an increase for
the month of at least 10,000,000 pounds so that even should
the producers’ statistics make a much better showing than
anticipated, it is evident that the world’s stocks as of No­
vember 1 will show some increases over the month pre­
vious.
Present prices for the metal are considered as having
discounted such an increase, so that while copper men do
not expect any marked change in market, whatever move­
ment takes place will, it is expected, be in an upward di­
rection,


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Federal Reserve Bank of St. Louis

53

T H E C O M M E R C IA L W E S T

Latest Book on the
Canadian Banking System
At a time when bankers and finan­
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and everyone is on the alert for the re­
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Commission, it would pay you to become
f a m i l i a r with the Canadian

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H. M. P. Eckardt’s “Manual of Cana­
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54

T H E C O M M E R C IA L W E S T

Saturday, November 6, 1909

M A R F IE L D -T E A R S E C O M P A N Y
[IN C O R P O R A T E D ]

GRAIN

COM M ISSION

N" a£ S ° '

Offices: CHICAGO, MILWAUKEE, DULUTH
M IN N EAPO LIS,

-

GIROUX CONSOLIDATED.
Ely, Nevada.— The change that has taken place in the
Giroux property during the past year is pronounced noth­
ing short of marvelous by a party of eastern men who
have just visited the mine after having seen it a year ago,
but there is still considerable work to do before the pub­
lic will realize the value of the property. The possibilities
at greater depth are very large and will mean much to
the camp. The uprise from the i,000 foot level is now
within 450 feet of the surface where the big hoist is being
erected.
Some of the machinery is already in.
Up­
raising has been at the rate of 150 feet per month, a
record for a five compartment shaft.
*
*
*
New York, Oct. 28.— An interest closely connected with
the management of the Giroux Consolidated Mines Co.
says that the development of the property is now pro­
gressing in a satisfactory way. Besides the 250-ton smelt­
er which is now erected, it is the intention of the company
to begin at once the construction of a smelter having the
capacity of 1,000 tons of ore a day. This smelter, it is
expected, will be finished in about eight months.
The
Nevada Northern Railway Co., which passes within 27
miles of the property, will be connected with the mine by
a branch line, to be built in the near future. The mine
is not yet in a producing state, but it is expected that in
a year’s time the company will be in a position to become
a factor in the copper market. At tne present time about
400 men are employed on the property.
The report for the year ended January 31, 1909, showed
that $360,000 was derived from the sale of treasury stock
and $928,000 from sales of bonds. The total receipts in­
cluding cash on hand from the preceding year, amount to
$1,347,334. Expenditures of various accounts were $941,616, leaving $450,718 cash on hand.
A MARKET VIEW.
(W ritte n fo r the C om m ercial W e s t.)
W . G. P ress & Co., C hicago, N ov. 2.— C h icago w h eat traders
a re p assin g through a period o f the g re a te st u n certa in ty fo r
w eeks. U p to T uesd ay _ o f this w eek there appeared to be a
g o o d fighting m arket, w ith ab ou t as m uch ch an ce on on e side
as the other.
T hose w ho w ere su pp ortin g the m arket w ere
ba n k in g on the fa c t that it w as dangerous to sell th e fu tu res
sh ort a t su ch a d iscou n t so lon g as cash p rices held firm. The
con ten tion o f the bears w as that a letup in the cash dem and
and a continuation o f the h eavy p rim ary m ovem en ts m ust in
tim e b rin g cash and fu tu res n earer together. T here has been
fo r som etim e past no decided leadership on either side. W h a t
w eakn ess there w as in the situation cam e fro m the S outhw est,
w h ere cash p rices began to w eaken several days ago. T h e best
stren gth cam e fro m M inneapolis, w h ere the b ig m illin g in te r­
ests appeared to b e g e ttin g bu t little m ore w h eat than needed
to m eet their b ig flour sales. The v isible supply increase w as
a m oderate one. B oth C hicago and M inneapolis are still left
w ith m oderate stock s, com p ared w ith last year. In fa ct, there
has been no d epressin g a ccu m u lation o f w h eat stock s, ex cep t
p ossibly w h at has piled up at D uluth inside o f the last ten days.
A t this w ritin g w e a th e r con d ition s are p e rfe ct fo r th e g r o w ­
ing, crop. Cash p rices are beginn ing to show w eakn ess in all
th e m arkets, in clu d in g som e shading o f the prem ium s a t M in ­
neapolis.
N orth w e st receip ts are large.
S outhw est m arkets
report d ecid ed ly slow cash dem and. T ak in g ad v an tag e o f these
con d ition s a stro n g leader in the local trade becam e a g g ressiv e
on th e selling side. T his started scattered local h old ers selling
an d the bears fo llow ed it up w ith additional sh ort sales. A lto ­
g eth e r the tone o f the trade appears to be con sid erably changed
in fa v o r o f th e bears. B ut latest reports fro m K an sas City,
L in coln , O m aha and oth er points indicate that w h eat raisers are
alread y refu sin g to sell at the decline. F rom the N orth w est
th ere is a rep ort th at the m ovem ent m ay be restricted b y a
sh ortage o f ca rs in th e near fu tu re. T he tra de at the declin e
to 104 and un der fo r the lead in g m onths appears som ew hat
oversold, an d w e believe the m arket is close to a tu rn in g point.
A n y atte m p t on the part o f recen t sellers to c o v e r their short
lines w ou ld ad v an ce this m arket as m uch in tw o hou rs as it has
declin ed in three days.

R AN D GOLD O U T P U T .
T h e output o f gold fo r the T ra n svaa l m ines d uring O ctober,
a s estim a ted b y K affir houses in L ondon, w a s 600,000 ounces,
fine. T he p rod u ction in O ctober, at the rate estim ated, w a s the
sm allest since F ebruary. C om parison o f v alu es is
Oct., 1909....................$12,750,000
Oct., 1908
.$13,120,000
. 11.756,000
Sept., 1909.................. 12,879,000
Oct., 1907..
Oct., 1906..
. 11,481,000
A ug., 1909.................. 12,988,000
Oct., 1905..
July,
1909.................. 13,185,000
. 8,825,000
O ct., 1904..
Jmie, 1909.................. 13,109,000
. 6,915,000


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Federal Reserve Bank of St. Louis

-

-

M IN N E S O T A

CHI CAGO,

ST.

PAUL,

M.

&

OMAHA.

t h e report, in detail, o f the C hicago, St. P aul, M inneapolis
& Om aha, as filed w ith the In tersta te C om m erce C om m ission,
fo r the m onth o f S ep tem ber and three m onths ended S ep tem ­
ber 30, 1909, com p ares as fo llo w s:
1,738.89
$377 §97
464’ 993
71945
8,’ 385

1908.
1,729.56
$801,141
404,598
70,396
7,765

T ota l op era tin g re v e n u e ........................ $1,423,222

$1,283,901

-n /r •i

J- CMJÏ7.

..............................................................
revenue ............................................
P a ssen g er revenue ......................................’
O ther tra n sp ortation r e v e n u e ..................
N on -tra n sp orta tion revenue ....................
b reigh t

*

*

*

M ain ten a n ce w a y and stru c tu re ..............
M aintenance o f e q u ip m en t..................
T ra ffic expen ses ....................................... .. '
T ra n sp orta tion ex pen ses ..........................'
G eneral expen ses ..........................................
T otal op era tin g expen ses

$207 385
156’ ?79
23’ 523
468 982
25*982

$192,587
132,016
21,035
423,574
23,937

$882,153

$793,152

N et op era tin g revenue
Outside operatin g, net

$541,069
1,647

$490,749
398

T ota l net revenue
T axes ............................

$542,716
53,007

$491,147
52,969

O peratin g

$489,709

$438,178

July 1 to Septem ber 30:
T ota l op era tin g re v e n u e .............................. $3,767 216
T otal op era tin g e x p e n se s............................ 2A99,’ 304

in com e

..................................

$3,380,970
2,208,075

N et op era tin g r e v e n u e .......................... $i 267 912
Outside op eratin g, n e t ..................................
’ 4^27

$1,172,894
6,040

T ota l net revenue
T a x es ............................

$1,272,240
159,023

$1,178,934
158,908

$1,113,216

$1,020,026

*

*

*

O peratin g incom e

K I N G ’S C O T T O N

STATEMENT.

T he follow in g table, com p iled b y the N ew Y ork C otton E x ­
change, sh ow s the m ovem en t o f c o tto n fo r the w eek, w ith c o m ­
parisons, figures in ba les:
T his yr.
L a st yr.
1907-08.
P ort receip ts ...................
418,571
449,979
343,537
O verland to m ills and C a n a d a ...
3L553
51,137
17,233
S outhern m ill takings ( e s t .) ___ _
85,000
90,000
46,000
Gain o f stks. a t int. t o w n s ..........
55,174
66,698
44,475
B rou gh t into sig h t fo r w e e k ........ 590,298
657,814
451,245
Total M ovem ent.

P ort receip ts ...................................*2,820,845
O verland to m ills and C a n a d a ... ’ 89,746
S outhern m ill ta k in g s.................... 525,000
Stk. a t int. tow n s in ex cess o f
Sept. 1 ............................................ 393,328
B rou g h t in to sigh t thus fa r fo r
season .............................................. 3,828,919

2,605,207
173.628
530,000

1,920,468
61,551
285,000.

446,263

275,757

3,755,098

2,542,776;

*85 added receip ts season.
T he total crop m ovem en t is fo r 59 days this season, ag a in st
60 d a y s last season and 62 days in, 1907.

HIDE AND FUR MARKET.
N orth w estern H ide & F u r Co., M inneapolis, N ov. 1.— T h e
eastern hide m arket con tin u es w eak at the % c d ecline noted
last w eek.
N o chan ge here as yet, bu t w hen it does com e
w ith ou t d oubt the m a rk et w ill be y4c to y2c low er.
T a llow m ark et steady.
W o o l and pelts active.
Ginseng, sen eca an d golden seal in a c tiv e request.
Furs, too early to qu ote prices, but it is ex p ected th ey will
be as high or h ig h er than last year.

W E E K L Y FLOUR OUTPUT.
(F r o m the N orth w estern M iller.)
T he a tta ch ed table g iv es the flou r output at m illin g centers
fo r the last w eek an d a y ea r ago, in ba rrels:
Oct. 31,
Oct. 30
1908
M inneapolis .............................................................. 439,685
315,060
D u lu th -S u p erior ........................................................ 32,665
16,300
M ilw aukee ..................................................................
36,300
35,600
T ota ls ............
46 outside m ills*

508,650
204,265

366.960
168,065

Aggregate spring

712,915

535,025

55

TH E COMM ERCIAL W EST

Saturday, November 6, 1ÔÔ9

C OMMO NS

PI PER, J O H N S O N & CASE
STOCKS, BONDS, GRAIN and PROVISIONS

& COMPANY

410 and 411 Chamber
of Commerce

MINNEAPOLIS, MINN.

Up town Office
New York Life Arcade

MINNEAPOLIS

Receivers and
Shippers of Grain
and Flaxseed

THOS. L. W ANN , Mgr. St. Paul Office,
102 Pioneer Press Bldg.
MEMBERS:

New York Stock Exchange
New York Produce Exchange
Winnipeg Grain Exchange

C H IC A G O C O R R E S P O N D E N T S ,

ARMOUR GRAIN CO.

Chicago Board of Trade
Chicago Stock Exchange
Duluth Board of Trade
Minneapolis Chamber of Commerce

f
St. L o u is ...................................................................... 18,800
23,800
St. L o u is f.................................................................... 40,600
56,500
St. L ou isg .................................................................... 51,974
..........
In d ian ap olis .............................................................. 17,250
15,585
15,800
15,700
D etroit .....................
C h icag o ...................................................................... 24,300
19,500
K an sas C ity ................................................................ 66,300
68,665
K an sas City$.............................................................
96,667
76,415
21,000
T oled o ......................................................................... 26,500
T oled o0# .......................................................................
78,200
.......
C leveland ...................................................................
7,800
7,150
•■"Minnesota, D a k ota and Iow a m ills outside o f M inneapolis
and Duluth, ca p a city 36,250 bbls. fF lo u r m ade b y m ills outside
o f St. L ouis, but con trolled in th at city . §Flour rep orted b y in ­
terior m ills. {F lo u r m ade by group o f M issouri river and K a n ­
sas m ills outside o f K a n sa s City. “F lou r m ade b y outside c e n ­
tral states m ills.

M inneapolis ........
Y ea r a g o ........
C h icago ..............
Y ea r a g o ........
D uluth .................
N ew Y o r k ............
St. L o u is ..............
K an sas C ity ........
W in n ip eg ............
*H oliday.

Oct.
28
. . .1.03
...1 .0 1 %
. . .1.05%
...1 .0 0
. . .1.02%
...1 .1 3 %
. . . 1.063%
...1 .0 2
. . . 94%

Oct.
29
1.0 33%
1.02%
1.05%
1.00%
1.03
1.13%
1.07%
1.02%
95%

Oct.
30
1.02%
1.01%
1.05%
1.00
1.01%
1.13%
1.06%
1.013%
94%

Grain Commission Merchants
MINNEAPOLIS
Duluth

Chicago

Milwaukee

A M E S - B R O O K S CO.
DULUTH, M IN N .

C L O S I N G W H E A T F U T U R E PRI CE S.
Decem ber W h e a t.

LOOMIS-BENSON CO.

N ov.
]
1.01%
1.01%
1.043%
1.00
1.00%
1.12%
1.05%
1.00%
94%

N ov.
2
1.01 3/8
*
1.04%
*
1.00%
*
1.05%
1.00%
933%

N ov.
3
1.06%
1.01 3/8
1.02
99%
983%
1.10%
1 .03%
98%
92%

N ov.
1
1.04%
1.06
1.04%
1.03%
1.04
1.11%
1.05%
1-91 %
9S%

N ov.
2
1.03%
*
1.033%
*
1.03%
*
1.05%
1.003%
97%

N ov.
3
1.02%
1.05s%
1.02%
1.03%
1.02%
1 .093%
1.04%
99%
96%

N ov.
2
1.04%
1.04
1.02

N ov.
3
1.023%
1.02%
1.00%

N ov.
N ov.
1
2
1.04% 1.033%
1.04
. 1.03%
1.02
1.01%

N ov.
3
1.02%
1.013%
993%

THEA M E S -B A R N E S CO.
N E W Y O R K C IT Y

™EZEN ITH G R A IN CO.
W IN N IPE G . M A N .
SHIPPERS AN D GENERAL COMMISSION MERCHANTS

Oct.
28
M inneapolis ....... . •.1.04%
Y ea r a g o ........ ...1 .0 6
C h icago ................ ...1 .0 5
Y ea r a g o ........ . . .1.03%
D uluth .................., . ..1.04%
N ew Y o r k ............ ...1 .1 1 %
St. L o u is.............. ...1 .0 6 %
K an sas C i t y .. . . . ...1 .0 2 %
W in n ip eg ............ . . . 99%
*H oliday.

May W h eat.

Oct.
29
1.05%
1.06%
1.05%
1.04
1.05%
1.12%
1.06%
1.023%
99%

Oct.
30
1.043%
1.06
1.04%
1.03%
1.04%
1.11%
1.06%
1.01%
98%

M i n n e a p o li s Cash W h e a t O f f ic ia l Close.

Oct.
28
N o. 1 h a r d ............. . ..1.06%
No. 1 n o r th e r n ... .. .1.05%
N o. 2 n o rth e rn .. . . . .1.03%

Oct.
29
1.07
1.06%
1.04%

Oct.
30
1.05%
1.05%
3.03%

N ov.
1
1.05%
1.04%
1.02%

D u l u t h Cash W h e a t .

Oct.
2S
No. 1 h ard............ . . .1.06%
N o. 1 n o r th e r n ... . . . 1. 05%
•No. 2 n o r th e r n ... . ..1 .0 3 %

Oct.
29
1.063%
1.06%
1.04%

DURUM

Oct.
30
1. 053%
1.04%
1.02%

J. L. McCAULL, President
R. A. DINSMORE, Vice Pres’t

S. J. McCAULL, Secretary
A. M. DINSMORE, Treasurer

TheMcCAULL-DINSMORE CO,
GRAIN COMMISSION
MERCHANTS
915-16-17 CHAMBER OF COMMERCE
MINNEAPOLIS

-

MINNESOTA

WHEAT.

M in n e a p o li s Closing Pr ice s.

O ctob er 28............
O ctob er 29...........
O ctob er 30............
N ov em b er 1 ........
N ovem b er 2 ........
N ov em b er 3 ........

........
........
........
........
........
........

N o. 2
863%
87%
863%
86
853%
843%

ARMOUR G R A IN CO.

No. 2
86%
87%
87%

Dec.
87
873%
87%

Consignments Solicited

85%
84%

85%

No. 1
88
S9
873%
87%
86%
86%

GRAIN

D u lu t h Closing D u r u m Prices.

O ctob er 28............
O ctob er 29............
O ctob er 30............
N ov em b e r 1 ........
N ov em b er 2 ........
N ov em b er 3 ........

•
■
•
.

.

No. 1
89%
90%
90%
89

Closing F l a x Prices.

M inneapolis cash
D uluth c a s h ........
N ov em b er ..........
M ay ......................

Oct.
28
. . .1.69%
.. ,1 .7 2 3%
...1 .7 1 %
. . .1.69%

Oct.
29
1.703%
1.74
1.73
1.70%

Oct.
30
1.70%
1.73%
1.72%
1.70%

863%
863/8

86

88%

• 87%
N ov.

1

1.70%
1.733%

1.723/g
1.69%

N ov.
2
1.643%
1.68
1.67
1.65%

N ov.
3
1.63%

1.66%

1.65%
1.64%

Closing Oa t s Pr ice s.

D aily closin g p rice s on N o. 3 w h ite oats in M inneapolis:
O ctob er 28..................................................................................... 37%
37%
O ctob er 29....................................................................................
O ctob er 30.....................................................................................
37%
N ov em b er 1 .................................................................................. 37% @ 37%
N ov em b er 2 ..................................................................•.............. 37% @ 37%
N ov em b er 3 .................................................................................. 37% @ 37%
Closing Ry e Pr ices.

No. 2 rye at M inneapolis:
O ctob er 2 8 ..............................................................
O ctob er 29...............................................................
O ctob er 30...............................................................
N ov em b er 1 ............................................................
N ov em b er 2 ............................................................
N ov em b er 3 ............................................................


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

68% @ 69%
69% @ 69%
68% @ 69%
68% @ 69%
68% @ 69%
67% @ 69%

205 LaSalle Street

CHICAGO

BROWN GRAIN COMPANY
MINNEAPOLIS

BARNUM GRAIN COMPANY
DULUTH

Grain and Commission
Merchants

56
W heat

O ctob er 28........
O ctob er 29........
O ctob er 30........
N overnber 1. ..
N ov em b er 2 . . .
N ov em b er 3 . . .

R ece ip ts— Cars.

M inneapolis. Duluth.
1909 1908 1909 1908
........ 366
246
493
362
........ 391
211
322
229
........ 327
384
243
211
........ 647
358
741.
703
........ 350
487
........ 376
526
361
666

A M ERICAN VI S IBLE SUPPLY.

C hicago.
W in n ip eg.
1909 1908 1909 1908
4S
466
454
47
43
52
586
360
38
50
550
479
45
50 1160 1019
86
501
682
60
78
475 • 496

Oats,
Cars.
O ctob er 28.......
47
O ctob er 29.....................................
50
O ctob er 30...................................... 43
N ov em b er 1 .................................. 92
N ov em b er 2 .................................. 30
N o v e m b e r 3 .................................. 52
D ulu th

D aily

B arley,
B ye,
Cars.
Cars.
120
18
119
11
90
12
178
38
112
16
86
12

Corn, Flax,
Cars. Cars.
6
84
1
72
8
11
21
122
16
81
5
63

Rece ip ts of Coarse G r a in .

Oats,
Cars.
O ctob er 28.....................................
27
O ctob er 29......................................
8
13
O ctob er 30.....................................
N ov em b er 1................................... 29
N ov em b er 2 .................................. 21
N o v em b er 3 .................................. 17

B arley,
B ye,
Cars.
Cars.
33
5
60
6
26
3
115
11
60
8
20
2

G RAI N IN M I N N E A P O L I S

F lax,
Cars.
135
106
127
269
183
134

T o ta ls

Y ear
A go.
154
113
243
226
140
108

ELEVATORS.

W h e a t—
N o. 1
h a r d ...................................................................................
N o. 1
n o r th e r n ...........................................................................
N o. 2
n o r th e r n .....................
*A11 other g r a d e s ............................................................................

Oct. 28
534,610
914,192
280,778
733,577

............................................................................................ 2,463,157

*

❖

❖

C orn .....................................................................................................
23,732
O ats . .................................................................................................... 1,459,204
B arley ................................................................................................. 1,020,860
B ye ......................................................: ..............................................
164,248
F iax .....................................................................................................
198.973
*T h ese figures include all the reg u lar and eigh t p riv ate ele­
vators.

D U L U T H W H E A T STOCKS.
W h e a t in H ea d o f the L ak es elev ators at the close o f the
last w eek, and a year ago, w a s as follow s, in bushels:
1909
1908
1,832,040
469,208
N o. 1 h a r d ___
2,787,141
N o. 1 northern
2,342,943
N o. 2 northern
578,767
394,521
34,970
N o. 3 ................
11,107
N o g r a d e ........
977
2,589,854
M acaron i ........
2,127,055
814,496
Special bin . . .
439,675
202,004
B ond ed ...........
319,325
8,839,332

..........

CROP Y E A R

6,104,811

RECEIPTS.

B e ce ip ts o f w h ea t at M inneapolis and D uluth fro m S ep tem ­
ber 1, 1909, to O ctob er 30, 1909, w ere as follow s, w ith c o m p a ri­
sons, in bushels:
1909
1908
1907
31,590,000
12,655,000
M inneapolis ............................... 24,434,000
D uluth ......................................... 33,728,000
27,465,000
28,211,000
T ota l

...................................... 58,162,000

59,055,000

40,866,000

V I S I B L E S U P P L Y OF G R A I N .
T he visib le su pply on O ctob er 30 w as as follow s, in bushels:
W heat
Corn
Oats
B arley
..
808,000
137,000
B altim ore ..........
464,000
1,000
..
300,000
124,000
6,000
1,000
B oston ................
. . 1,577,000
394,000
B uffalo ..............
1,084,000
425,000
.. 1,701,000
800,000
3,956,000
..
555,000
119,000
164,000
D e tro it ..............
2,000
.. 8,839,000
985,000
1,057,000
102,000
93,000
..
441,000
121,000
300,000
Indianapolis . ..
.. 2,549,000
224,000
511,000
K an sas C i t y .. . .
..
412,000
106.000
455,000
M ilw aukee ........
181,000
. . 2,463,000
24,000
1,459,000
M inneapolis
1,021,000
52,000
103,000
205,000
N ew O r le a n s ...
. . 1,339,000
178,000
1,016,000
N ew Y o r k ..........
164,000
16,000
18,000
1,143,000
483,000
55.000
. . 1,851,000
123,000
375,000
St. L o u is ............
40,000
..
978,000
29,000
414,000
T o le d o ................
1,000
..
343,000
3S5.000
344,000
On c a n a ls ............
. . 2,192,000
60,000
On la k e s ..............
287,000
466,000
T ota l
Oct. 23,
Oct. 31,
N ov. 2,
N ov. 3,

............
1909___
1908___
1907___
1906___

. .27,001,000
. .25,650,000
. .48,053,000
, .43,683,000
, .37,972,000

2,653,000
3,360,000

1,221,000

3.661,000
3,750,000

13,214,000
12,747,000
9,661,000
7,580,000
9,800,000

3,703,000
3,987,000
6,806,000
6,451,000
3,446,000

W O R L D ’S S H I P M E N T S .
B u ssia again cam e: fo rw a rd w ith v e ry liberal w h eat exports.
T he totals w e re w ell ab ove the estim ates, and sh ow th a t there
is no cessation yet o f the ex traord in ary international w h eat
m ovem ent. D etails fo llo w :
L a s t Y r.
L a st W k . Prev. W k .
W h e a t—
5,208,000
4,696,000
5,208,000
A m e rica ............
7,728,000
6,152,000
1,336,000
B u ssia ................
944,000
2,464,000
728,000
D anube ..............
88,000
696,000
144,000
A rgen tin a ........
256,000
80,000
232,000
Ind ia ..................
40,000
440,000
856,000
A u stra lia ..........
208,000
208,000
88,000
O thers ................
T ota l ............
C orn—A m e rica ............
B ussia ................
D anube ..............
A rge n tin a ..........
T otal

..............


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T he d om estic visible supply o f w h eat in creased 1,351,000 bu s;
corn d ecreased 767,000 bu s; oats increased 517,000 bus
T ota ls
fo llo w :
.
L a st W k.
Y r. ago.
W h e a t .............................................................. 27,001,000
. 42,115,000
H ’ rn .................................................................. 2,653,000
1,220,000
g ats ................................................................... 13,264,000
9,556,000
B ye. ....................................................................
642,000
958,000
B arley .............................................................. 3,703,000
6,744,000

*

M in n e a p o li s D a i l y R ece ip ts of C oar se C r a i n .

T ota l

Saturday, November 6', 1Ô00

TH E COMM ERCIAL W EST

....................14,352,000

14,304,000

9,144,000

544,000
73,000
268,000
650,000

390,000
97,000
260,000
1,340,000

272,000
179,000
382,000
1,024,000

1,535,000

2,087,000

1,857,000

*

*

T he C anadian w h ea t v isible in creased 1,521,523 bus
T o ta ’
o f all grain follow s:
,
L ast W k.
Y r. ago.
W h eat ............................................................... 12,068,000
6,413,000
2 a t f .........................................
3,099,000
1,735,000
B a rley ............................................................... 1,245,000
618,000

WHEAT

AND

FLOUR

EXPORTS.

(B ra d street’ s.)
T he q u an tity o f w h eat (in clu d in g flour as w h ea t) exported
irorn L m ted S tates an d C anadian p orts fo r th e w eek en d in g
w ith I hu rsday com p ares as follow s, in bushels:
W eek ending—
1909
1908
1907
H | y 1................................................. 1,310,849
2,008,565
2,098,904
du}y J ................................................. 1,412,613
2,781,828
3,264,714
J u y E ................................................. 1,468,108
1,482,136
2,210,770
933,358
2,529,922
2,376,543
J u.l y 22.................................................
July 2 9 . . . ............................................ 1,579,652
2,605,998
2,739,836
A u g u st 5............................................ 1,543,558
3,696,348
3,272,993
A u g u st 12............................................ 1,785,755
3,760,272
2,947,433
A u g u st 19........................................... 2,379,618
3,907,779
3,565,347
A u g u st 26. ..................................... 2,934,543
4,525,503
3,808 866
S ep tem ber 2 .................................... 3,188,641
5,396,026
2,923,710
Septem ber 9 .................................... 2,615,685
3,012,498
»,291 866
3,491.911
4,340,854
S ep tem ber 16................................... 2,286,891
S eptem ber 23................................... 2,973,601
6,439,526
4,876,737
S ep tem ber 30................................... 3,322,760
6,473,825
4,731 950
O ctob er 7 .......................................... 4,139,662
5,652,652
5,295,292
O ctob er 14.......................................... 4,865,819
4,458,027
4,964,062
O ctob er 21.......................................... 5,694,466
6,127,952
4,765,589
O ctob er 28.......................................... 4,200,449
5,463,714
4,792,349

CHICAGO CASH W H E A T .
O ctob er 2 8 —N o

2 red, $ 1 .2 0 0 1 .2 1 ; N o. 3 red, $ 1 .1 4 0 1 .1 9 ;
^ ° - 3 hard, $ 1 .0 5 @ i.0 8 ; N o. 1 northern,
| i’ o 5 @ F o 7 °9: N ° ’ 2 n orth ern ’ $ L 0 6 @ 1 .0 7 % ; N o. 3 northern,
O ctob er 29.— Cash w heat, N o. 2 red, $1 .21% ® 1.22% - N o 3
red, $ 1 .1 6 0 1 .2 0 ; N o. 2 hard, $1 .0 9 @ 1 .1 2 ; N o. 3 hard, $ 1 .0 6 0 1 .1 0 ;
N o. 1 northern, $ 1 .09% @ 1 .10; No. 2 northern, $1 .0 6 @ 1 .0 9 ; N o 3
northern, $1 .0 5@ 1.0 8.
O ctob er 3 0 — No. 2 red, $ 1 .2 0 0 1 .2 2 ; N o. 3 red, $ 1 .1 5 0 1 .1 9 ;
^°Xo21/h^ i'A n $1-08@T 10: N o ' 3 h a rd - 5 1 -0 4 0 1 .0 9 ; No. 1 northern;
$1 .08 % @ 1 .0 9 ; N o. 2 northern, $1 .0 6 @ 1 .0 8 ; N o. 3 northern, $1 04
@ 1.07.
'
N ov em b er 1.— No. 2 red, $1 .1 9 @ 1 .2 1 ; N o. 3 red, $1 .1 4 @ 1 .1 8 ;
N o. 2 hard, $ 1 .07% @ 1 .10; N o. 3 hard, $ 1 .0 4 0 1 .0 7 ; N o. 1 n o rth e r n .W -O 8 0 i.O 9 ; N o. 2 northern, $1.06 0 1 .0 8 ; N o. 3 spring, $1.03
N ov em b er 2.— No. 2 red, $ 1 .1 9 0 1 .2 1 ; No. 3 red, $1.14(5)1 19N o. 2 hard, $ 1 .0 6 % @ 1 .0 7 % ; N o. 3 hard, $ 1 .0 3 0 1 .0 6 ; N o. 1 n orth $i T)L1V ^
@ 1 ' 08’ N ° ‘ 2 n orth ern > $ 1 .0 5 0 1 .0 7 ; N o. 3 spring,
N ov em b er 3.— N o. 2 red, $1 .1 8 @ 1 .2 0 ; N o. 3 red, $1.14@ 1 18N o. 2 hard, $1 .0 5 @ 1 .0 7 ; No. 3 hard, $ 1 .0 1 0 1 .0 5 ; N o. 1 n o r th ­
ern, $ 1 .06@ 1.07% ; N o. 2 northern, $1 .0 5 @ 1 .0 6 ; N o. 3 northern
$ 1 .0 1 0 1 .0 5 % .

CHI CA G O COARS E GRAI N.
O ctob er 28.— C ash corn, N o. 2, 61 @ 61% c; N o. 2 w h ite 61%cN o. 2 yellow , 61@ 61% c; N o. 3 y ellow , 61c; N o. 4, 60%c
D ecem b er, 60c; D ecem b er, 59% c; M ay, 6114c; July, 60%c
Cash oats, N o. 3 w h ite, 3 9 @ 4 0% c; N o. 4 w h ite, 38@ 39% c;
standard, 40% @41c.
D ecem ber, 39% c; M ay, 42% c; July, 39%c.
O ctob er 29.— Cash corn, N o. 2, 61% c; No. 2 w h ite, 62% c; No.
2 yellow , 61% c; N o. 3, 61% c; N o. 3 yellow , 61% c; N o 4 ’ 6914
@ 60% c.
"
‘
O ctober, 60% c; D ecem ber, 59% c; M ay, 61% c; Ju ly 61%c.
C ash oats, N o. 3 w h ite, 39%@403%c; N o. 4, 3 9 % @ 40c; sta n d ­
ard, 40% @ 4114 c.
D ecem ber, 40c; M ay, 4 2 % @ 4 2 % c; July, 39% @ 40c.
O ctob er 30.— Cash corn, N o. 2, 6114c; N o. 2 w h ite, 62@ 62% c;
No. 2 yellow , 6 1 % @ 6 1 % c; No. 3, 6114c; N o. 3 yellow , 61%c
D ecem ber, 59% @ 5914c; M ay, 6114c; July, 60%c.
4 0 c ° atS’ D ecem b er’ 39 % @ 39% c ; M ay, 4 2 % @ 4 2 % c; July, 39% @
w b ite > 3914@ 40% c; N o. 4 w h ite, 39@40c; standard,
40% @ 41!4c.
N ov em b er 1.— Cash corn, N o. 2, 61 @ 6 1% c; N o. 2 w h ite, 6194
@ 6 2 % c; N o. 2 yellow , 6 1 % @ 6 1 % c; N o. 3, 6106114c; N o. 3 y e l­
low , 61%c.
N ovem ber, 59% c; D ecem b er, 58% c; M ay, 60% c; July, 60%c.
Cash oats, N o. 2 w h ite, 41% c; No. 3, 39c; N o. 3 w h ite 39%
@ 40c; N o. 4 w h ite, 39 @ 39% c; standard, 40%@ 4114c
D ecem ber, 39% c ; M ay, 42c.
N ov em b er 2.— Cash oats, N o. 2, 40c; N o. 3, 38% c- N o 3
w h ite, 39 @ 4 0c; N o. 4 w h ite, 38@39c; standard, 40 % @ 41% c
D ecem ber, 3 9 % @ 3 9 % c; M ay, 41 % @ 42c; July, 39 % @ 39% c
Cash corn, N o. 2, 61% c; N o. 2 yellow , 61% c; N o. 3, 61% c; No.
3 yellow , 6194c.
N ovem b er, 59% c; D ecem ber, 58 % c; M ay, 60% c; July, 6014c.
N ov em b er 3.— C ash corn, N o. 2, 62c; N o. 2 yellow , 62@ 62% cN o. 3, 62c; N o. 3 yellow , 62c; N o. 4, 61 % c.
D ecem ber, 58% c; M ay, 60 % @ 6 0 % c; July, 60%c.
C ash oats, N o. 3 w h ite, 39@ 40!4c; N o. 4 w h ite, 38 % @ 3 9 % c;
standard, 40J4@41%c.
D ecem ber, 3 9 % @ 3 9 !4 c; M ay, 4 1 % @ 4 1 % c; July, 39%c.

W I N N I P E G CASH W H E A T .
O ctob er 28.— N o. 1 northern w heat, 97% c; N o. 2 northern
w h eat, 96c; N o. 3 n orth ern w h eat, 9414c; N o. 2 w h ite oats
3414c; barley, 4 4 % @ 4 6 % c; flax, $1 .530 1.56 .
O ctob er 29.— N o. 1 northern, 9814c; N o. 2 northern, 90c; N o. 3
northern, 94 % c; N o. 2 w h ite oats, 3414c; barley, 45!4@4714c;
flax, $1 .5 2@ 1.5 4.
O ctob er 30.— No. 1 northern, 97% c; N o. 2 northern, 95 % c; N o
3 northern, 93% c; N o. 2 w h ite oats, 33% c; barley, 4514@4714c;
flax, $1.530 1.55 .
N ov em b er 1.— No. 1 northern, 97% c; N o. 2 northern, 95% c ;
N o. 3 northern, 94c; N o. 2 w h ite oats, 33% c; barley, 4514@4714c;
flax, $1.53% @ 1.55.
N ov em b er 2.— N o. 1 n orthern w h eat, 96% c; N o. 2 northern,
94%’C; N o. 3 northern, 93c; N o. 2 w h ite oats, 33% c; barley, 4514
0 4 714c; flax, $1.5114@1.5314.
N ov em b er 3.— No. 1 northern, 95% c; N o. 2 northern, 93 % c;
N o. 3 northern, 92c; N o. 2 w h ite oats, 33% c ; barley, 45c to 47c:
flax, $1.50 to $1.52.
r

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

57

■^..xxxx

No other flour ap=
p r o a c h e s P ills b u r y ’s
B est—in sales—reputa=
tion or quality. No other
flo u r w ill s ta n d th e
Pillsbury Test. Its use
is a real economy—as it
goes so much farth er
and does so much better
work.
“ T h e Sa c k T h a t
St a n d s T h e St r a in ”

BEMIS

SACKS

ARB THE STANDARD
PACKAGES FOR FLOUR

H A T E L Y

BR O TH ER S

E sta b lish ed 1 8 7 3

P r o v is io n s a n d

G r a in

70 Board of Trade Building

CHICAGO

CHARLES

W.

S. N O T T , C O M P A N Y
LEATHER BELTING
MILL SUPPLIES

200-212 First Ave. So.

Cargill Commission
Company
DULUTH AND

SINCERE

CO.

MINNEAPOLIS

M IN N EAPO LIS

Grain and Commission Merchants

GR A I N S
STOCKS
Suite 4 2 5 , 2 0 5 La Salle Street, C h i c a g o
Send for Our Valuable Hints on Speculation.
Tels: Randolph 2480-2481-2482.

Manufact ur ers— A t t e n t i o n ! !

Automatic 7256.

A . O. SLAU G H TER & CO.
Established 1 8 6 5

GRAIN, PROVISIONS, STOCKS, BONDS
139 Monroe St. and 68 Board of Trade

CHICAGO

O rd ers taken fo r all A m erica n and E uropean E xch anges

M ERCHANTS

G R A IN

Commission Merchants
C H IC A G O
Orders for


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Federal Reserve Bank of St. Louis

Future

Delivery

CO.

A reduction in cost of operating machinery
in your mill, elevator, or factory, means an in­
crease in profit of your product.
A reduction in floor space means greater
room for manufacture.
If you use electrical power both these items
are possible.
Allow our power experts to give you cost of
operating your plant by electricity— their service
costs you nothing.
A small reduction in cost of power often
means a big reduction in cost of product.

The Minneapolis General Electric Co.
15 South Fifth Street, Minneapolis

Solicited

N , W .—189 Main

T . S.-1320

58

TH E COMM ERCIAL W EST
WOULD

SELL

WHEAT

ON

RALLIES.

M a rfield -T ea rse C om pany, M inneapolis, N ov. 3.— Our m arket
w as v e r y stubborn during the early part o f the session and
the ch a ra cte r o f the bu y in g w as first class. T his had a te n ­
d en cy to m ake the bea r crow d tim id and offe rin g s w ere light
until tow ard the close o f the session w hen the w eak n ess in
C hicago attra cte d a lot o f selling orders to this m arket. This
soon filled all the bu y in g orders and caused a load to ha n g over
the m arket an d w hen som e o f the early bu yers attem p ted to
liqu idate th ey fou n d v e ry little dem and fo r w h e a t w ith the r e ­
sult that a sh arp break w as scored, closin g p rices b ein g r e g is ­
tered at the dollar m ark. T he w eakn ess in C h icago w as caused
b y several o f the v ery large com m ission houses selling w h eat
hll d ay y esterd ay an d this m orn in g an d w hen scattered selling
orders began to com e in th e y fou nd no w h e a t w an ted. T h e s it­
uation all ov er ap p ears v ery bearish. R eceip ts are increasin g,
cou n try m ovem en t m ore liberal, flour situation sh ow s no new
d evelopm ents, and v e ry little new business is be in g done, p r a c ­
tica lly none since m arket began its decline. F oreig n m ark ets
weak, and newsi fro m the A rgen tin e v e r y fa vorab le. Our stock s
here in creasin g very, slow ly and cash dem and con tin u es fa irly
good. W e -h a v e been bea rish on the m arket fo r som e tim e but
w ou ld advise a little caution in selling this m arket, fo r the
reason that the crow d have sold too m uch w h ea t tod a y and
should an yone attem p t to get it b a ck w e m igh t 'get a sharp
rally, but on all the extrem e sharp ad van ces w e fa v o r the sale
o f w h eat fo r a qu ick turn su ch as w e had today.

T H E W IN N IP EG MARKET.
T hom pson, Sons & Co., W in n ip eg , N ov. 1.— Our W in n ip eg
m arket has. been a ctive during the w eek, a v e ry g o o d ex p ort d e ­
m and prevails, an d tradin g in fu tu res is fa irly broad w ith ou t
bein g in an y w a y ex citin g . The w eath er o v e r W e ste rn C anada
con tin u es w o n d e rfu lly fine fo r the tim e o f year, and there has
been no hin dran ce on that score to the w o rk o f threshin g and
m ovem ent. D u rin g O ctob er 19,278 cars o f w h eat w ere inspected
a t W in n ip eg, equal to 26,274,000 bus, a record* n ever before
equalled. A lth ou g h a slight increase in lo w e r g rades is seen in
the receip ts from the fu rth er w est, the in sp ection s still record
un usually high av erag e quality. W h ile receip ts are large sh ip ­
m ents east from the head o f the lakes are also v e r y large, and
last w e e k the sto ck s in store at F o rt W illia m and P o rt A rth u r
show a d ecrease o f 124,000 bus.

S A L E ON R E A C T I O N S .
H. P oeh ler C om pany, M inneapolis, N ov. 3.— N ow th at flour
bu yers everyw h ere are h ea v ily stock ed and the m illin g dem and
fo r w h eat is fa llin g off, in som e instan ces sharply, there is no
d oubt that the v isible supply o f w h eat will begin to increase
rapidly, and as there is no hope fo r an e x p o rt d em and on p re s ­
ent p rice basis, it w ill tak e m uch sp ecu lative bu y in g to take
c a r e o f the hedges that w ill be p laced on cash w h e a t holdings.
C oun try e le v a to rs’ stock s o f w h ea t in the N orth w est are large
and if ca rs w ere plentiful, receip ts in M inneapolis and D uluth
w ou ld run still larg er than at present. F rom th e re ce n t decline,
there m ay be a sm all reaction . I f there is, it w ill m ake a sale
o f w h eat all the w inter. T h e d ifferen ce betw een D ecem b er and
M ay will likely w iden out in the future.

C O T T O N E X C H A N G E M E M B E R S H I P SOL D.
New York, Nov. 1.— The New York Cotton Exchange
membership held liy the estate of D. Thomson has been
sold to J. N. Carpenter for $15,000.
Henry Hentz has
sold his seat in the exchange to C. D. Freeman for $19,500.
N O R T H D A K O T A COAL CASES A D V A N C E D .
Washington, Nov. 1.— The United States Supreme
Court today advanced for argument on Feb. 21 the cases
of the Northern Pacific, Great Northern and Minneapolis,
St. Paul & Sault Ste. Marie railways against the state of
North Dakota.
These cases involve the validity of the
state law fixing rates for the transportation of coal in
North Dakota.
A D V I S E M E R C H A N T S T O BUY.
Chicago, Nov. 1.— Marshall, Field & Co., in their week­
ly review of the dry goods trade, say:
“All indications
are that merchants continue to hold their stocks down to
a close operating level, and will continue, in their pur­
chase of merchandise for immediate delivery, to closely
follow the consumers’ demand. Following this, the call
for merchandise for immediate delivery will this fall con­
tinue very much later than in previous seasons. W e again
call attention to the fact that with a certainty of curtail­
ment of production, merchants can safely buy many lines
for spring delivery to provide for next season’s business.
Rather than mention especially all instances of price ad­
vances, the statement can be made that prices on prac­
tically all lines of general merchandise continue to seek
higher level.”
CORPORATIONS DROPPING ILLINOIS CHARTERS.
Chicago, Nov. 1.— Fifty-three Illinois corporations have
surrendered their charters since August. A considerable
proportion of these have reorganized under charters is­
sued under the Maine laws. In a few cases the business
has been taken over by partnerships. These moves are
in part the result of the working of the carefully drawn Illi­
nois corporation laws, which place many duties and re­
strictions upon companies operating under them. In part,
also, they follow the recent enactment of the Federal Cor­
poration Tax law, imposing an additional burden. A num­
ber of the expatriated Illinois corporations, reappearing
with charters, secured under the Maine laws, have re­
turned to their native state, to do business as foreign
companies. By so doing they escape the payment of the
Illinois capital stock tax, gain the right of one corporation
to vote the stock of another and secure exemption from
other restrictions imposed by statutes of this state.


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Federal Reserve Bank of St. Louis

Saturday, November ê, 19Ô3

COPPER PR O DU CE RS ’ REPORT.
Although since the first report of the Copper Producers
association, issued last February, the status of the pro
duction and consumption of copper has been made much
clearer, the figures as they are now reported in produc­
tion, deliveries and surplus lead to a wrong inference as
to the exact status of the copper metal supply.
It is not generally known that probably two-thirds of
the surplus as reported by the association has already
been sold so that if the surplus reported were divided into
sold and unsold copper it would doubtless be found that
instead of a surplus of 151,000,000 pounds for the first
nine months of the year the actual amount of unsold cop­
per is nearer 50,000,000 pounds than three times that
amount. In other words copper which has been sold is
still reported as stocks on hand.
One of the largest lake copper producers tells us that
he has made sales of copper this month that will not ap­
pear as deliveries until the December statement and that
as a matter of fact his company has little or no copper
on hand. All his copper now in process of manufacture
oi in transit has been sold. It would be well, therefore
for the: reporting association to make some distinction
along these lines in the excess copper supply.
The metal situation at the moment is in a peculiar
condition. Some of the. largest producers refuse to quote
prices and are not selling any large amounts. The situatmn is practically in the control of the consumers for we
understand that many of the producers are now allowing
their customers to name their own figures and are willing
iouThip6 dn 1V+uneS, whG1\ the consumers’ figures are reawe"

re«

°

p

SS

1

S zit °L iirtsaoes not ^

1

s ag

In all probability if the consolidation of the copper
companies which is reported in process of formation is
completed it will carry with it a new arrangement for
that ¡hndn nf ° V he COpper sul'Plus. It is quite unlikely
hat the Calumet & Hecla will be included in any conso k
dation or agreement to control the market for already hav­
ing control of the lake copper supply it has no ne^d o f
joining any combine.— Boston Financial News.

Mr. Frame discusses National reserve bank.
(Continued from Page 45)

cordance with the major part of his able arguments yet
atter nearly 50 years of practical experience" in ta n k in g
1 am forced to disagree with him on these two vital points
• d e 1mIls.t ?<;)ncede these views may look good theoret­
ically, but is it not a fact that the payment of interest on
balances is almost universal the world over therefore
practically the plan will not work? Prof. Sprague refers
to the ineffectual attempt of the New York banks to stop
the practice in 1873. I well remember the subject was then
thoroughly thrashed out and dropped as impossible of ac­
complishment.
Again.
In Britain, France and Germany banks gen­
erally- excluding the great central banks of issue— held
less than half the cash reserves held here. Then why in­
crease the idle capital to be held for 10 to 20 years wait­
ing to be used perhaps for three months when panic
threatens? Such a plan impounds cash that ought to help
our upbuilding, and is also hard on the stockholders of
the banks. The worst of it is, the plan would not work
practically, because when trouble brewed, each bank as
(lone now, would hold tenaciously to its cask if not largely
increased, and if it had enough to meet all demands it
could make no profits. A bank of issue like unto the Im­
perial Bank of Germany, avoids such useless lockup of
cash and automatically expands and contracts its issues to
meet emergencies whenever and wherever they arise. This
is not theory. It has been practically proved over and
over again.
Recapitulation.
I have endeavored to cover the great principles which
appear to be correctives of economic errors that have
stealthily fallen upon us. If accomplished we would have
1st. Practical elasticity without inflation and cash sus­
pensions would be prevented.
2nd. The greenbacks silently paid off and retired.
3rd. The National bank notes retired.
4th. ^ The abnormally low rate of 2 per cent, bonds re­
tired without buncoing or doing violence to good faith in­
vestors.
The first is the paramount question and is at once
accomplished. The second, third and fourth insidious dis­
eases are gradually removed by a slow evolutionary proc­
ess that will not disturb our equilibrium. No man can
measure the vast benefits to capital and labor alike by
preventing cash suspensions which palsy all progress.
Then why not give us a bank of issue that will not monop­
olize our general banking functions, but, in time of need
“ W ill be our servant, and not our m aster?”

Saturday, November 6, 1909

LAMSON

BROS.

59

T H E C O M M E R C IA L W E S T

&

CO.

Established 1 8 7 4

COMMISSION M ER C H AN TS
T R A C K BUYERS OF GR AIN
A sk F o r Bids
Consignm ents Solicited

6 Board of Trade
C H IC A G O

Grain Elevators
MILL BUILDINGS A N D

Grain Commission Merchants
M inneapo lis

D u lu th

STAIR,
CHRISTENSEN &
TIMERMAN
CONSIGNMENTS SOLICITED.
E x p e r t S er vic e — Shippers will have no cause
for complaint.

HEAVY

STRUCTURES

Save Insurance
by

Building in Fire Proof
Write us for Designs and Estimates of Cost

X

TO THE SH IPPER :
X
WHEN YOU CONSIGN GRAIN
AND LIVESTOCK USE THE SAME
JUDGMENT
AS
WHEN
YOU
PLACE INSURANCE. CHOOSE A
GOOD COMPANY. TRY THE
VAN DUSEN-HARRINGTON CO.
—M INNEAPO LIS—D U L U T H SOUTH ST. PAUL


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Federal Reserve Bank of St. Louis

The

B arnett & Record Co.
General Contractors

M IN N EA PO LIS, M IN N .

Saturday, November 6, 1909

T H E C O M M E R C IA L W E S T

60

H. Poehler Company

Imperial Bank of Canada

ESTABLISHED 1855.

Capital Authorized . . . .
$ 1 0 ,0 0 0 ,0 0 0 .0 0
Capital Paid u p ....................
5 ,0 0 0 ,0 0 0 .0 0
Surplus and Undivided Profits
5 ,6 0 0 ,0 0 0 .0 0

Grain Commission Merchants
D

Solicit Consignments and Orders in Futures.
M IN N E A P O L IS
C h ica g o

IION. ROBERT JAFFRAY,
Vice-President

HEAD OFFICE,

DU LU TH

M ilw aukee

R WILKIE,
President

TORONTO, C A N A D A

St. L o u is

“ PRIVATE MARKET LETTER FOR CUSTOMERS”

SPENCER,MOORE&CO.

Branches in the Province o f M anitoba — Brandon, Portage la
Prairie, Winnipeg.
Branches in the Province o f Saskatchczvan—Balgonie, Broadview,
Moose Jaw, North Battlefield, Prince Albert, Regina, Rosthern,
Wilkie.
Branches in the Province o f A lb er ta —Athabaska Landing, Banff,
Calgary, Edmonton, Red Deer, Strathcona, Wetaskiwin.
Branches in the Province o f British Columbia—Arrowhead, Cranbrook, Fernie, Golden, Kamloops, Michel, New Michel, Nelson,
Revelstoke, Vancouver, Victoria.
Also Branches throughout the Provinces of Ontario and Quebec.

DULUTH, MINN,

S A V IN G S D E P A R T M E N T S A T A L L B R A N C H E S .

Shipping & Commission Merchants

In terest allowed on deposits a t current rate
fr o m date o f deposit.

CERESOTA
creates
holds
pleases j W R IT E

TRADE
US ABOUT IT

THE NORTHWESTERN CONSOLIDATED MILLING CO.
MINNEAPOLIS

USE O U R

Ground Linseed Cake
( OI L M E A L )

Put up in 1 0 0 lb. bags , as follow s:
“ A ” M eal—Extra fine ground
“ B ” M ea l— Ordinary ground
Pea s i z e — (for sheep )
Nut s i z e — (for sheep)
If you are interested, send in your name and address to any of the offices
named below, and we will mail you some Facts for Practical Feeders

A M E R IC A N

L IN S E E D
CHICAGO
St. PAUL
KANSAS CITY

NEW YORK
ST. LOUIS
OMAHA


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SAN FRANCISCO

COM PANY
MINNEAPOLIS
DES HOiNES
SIOUX CITY
PORTLAND