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Show TH0 SALT LAKE TRIBUNE, MONDAY MORNING, OCTOBER GASOLINE ALLEY 16, 1922.'. 11 GOING BACK INTO HISTORY Of Oouese vow mm, mrs. BwT , drSnmt. pailj NEW YORK. Oct. 16. go far as the stock exchange Is concerned. It eras last week, first, that the bstrkns activities had been conducted purely under the auspices of tbs professional speculators, equipped with credit through the- easy money market: second; that the speculators and their following wers Interested, not at all In the business outlook or tho proop ects of Industry, but In tho payment or chances of payment of stock dividends by corporations This excitement over stock dividends is nothwas the characteristic symping new; it tom of the wild speculation which prevailed In tho first year after the war, a rule, only In the later although, stages of that speculation. No other subject is mors surrounded mith delusion than this question of stock dividends In its simplest form the declaration of a stock dividend amounts, to more than giving a shareholder nothing two piece of paper instead of one, to mark his shares In precisely the same aggregate assets and aggregate profits ss existed before Those assets are no mors capable pf earning twice the former actual profits in ths one case than in the other. yei!-de- By CHARLES O. MICHAELS. CHICAGO, (Oct. IS. The constructive side of ell grain markets is more favored e .trade, despite the recent adby vance. The grain trade here and abroad js becoming convinced that grain values have been too low and that economic conditions have favored a higher level of values. Business generally has improved. Railroads are doing practically the largest buslnese in their history and ars short on alt equipment. They have not sufficient cars on motive power to handle all the business and are not likely to have for months, according to rallrohd officials. When prices were loweet for all grains, In Augjst and early September, the grain trade of the world was too excessively bearish. The world jvas deluged with reports of the large American and Canadian wheat surplus and foreigners and the trade in general took the short side, thinking there was no bottom to values The rule has been that all grain markets have been heavily oversold, and, while there has been a good advance, there Is stlU outstanding interest. Hedges have been absorbed! and prices advanced in the face of only moderate buying, despite the heavy movement of wheat in the American and' Canadian northwest and with only a moderate speculative volume of business. A most attractive feature in the grain situation is that foreign markets wntch were the most depressed two months ego For. have led the upward movement This has elgn stocks have decreased. created a scarcity of spot wheat in Liverpool and brought a better demand, cent per bushel with prices there above the low point in August, while In Chicago advances were only 12 to 17 cents higher. At the same time, corn has moved up 10 eents, against 13 cents in Chicago. A reduction of 81,800,000 bushels hi the worlds wheat crop, as compared with early estimates mads by the department of agriculture at Washington, not Including Russia and Mexico, has had a strengthening influence The Impression of the trade Is that the peak of the big movement of wheat In the northwest Is over, although relarge and well up ceipts are to continue to the capacity of the railroads to fur5 nish cars The big speculative trade In wheat has acne to Winnipeg, where grains are traded In without restrictions and government, tax to pay This Is a factor by that should be seriously considered parthe United States grain tradeas and tatthe ticularly by the government, trad-- , ter, by placing a tax on speculative counlng, is driving it away from this try. cent Corn prices moved up nearly for December and VS cents for May and week. the 5 cents for July past nearly Extensive feeding operations, with more cattle on feed than at any time In jears. buying and a combined with export of the offerings by Inready absorption Important bullish 40factors dustries, were advanced cents above Oats have May and December Is up 11 cents and sealowest of the 1214 cents from the son. Cash interests ars transferring their hedges from December to May, changing even at the close Export and domestic trade has Improved and the movement is about an average for this sea- - Status Is Unchanged. If a companys capital stock Is double, and tho company pays the same agIn amount dividends as before, gregate naturally the shareholder o position is unchanged If he previously held 100 shares paying dividends at the rate of per cent and now gets in exchange 200 shares paving 2 per cent on the new stock, nothing has actually happened That Is the nature of exchange of stock by the Standard Oil company of New Jersey, whose management, while announcing a 400 per cent stock dividend, oaeually remarks that the aggregate amount din- in dividends will not be changed. If, as yrlth the American Radiator com- pony, the stock. Is Increased 5 per cent and the dividend rate not changed, then the dividend on the Investment has been Increased one half. But that wa not made possible through the machinery of a stock dividend: on the contrary, the same thing could have been effected quite as easily through merely raising the dividend on the unchanged stock. In itself, ths declaration of stock dividends in other words, ths printing of two instead of one on a share certificate is merely a matter of shifting a given entry from one heading on the liability side of a corporation s balance sheet to another. The mere fact of a smaller Valuation per share for the doubled stock will sometimes make It more easy for speculators to advance the price on the stock exchange. Wall street has some peculiar notions In that direction. But that is a matter of Imagination, not of Intrinsic values How Imaginary It Is. the action after 1920 of the stock which had been doubled through stock dividends - in that year was sufficient proof. Government Credit Good. Time $500,000,000 of new United Pr Canadian Light & Power Company FAREWELL bdnds. The company - has the PERPETUAL right to manufacture, sell and distribute power and light in Montreal and adjacent territory. We recommend this bond as an attractive - investexceptionally ment. Price 17 and accrued to yield tax-fre- net. Mu- the Income Is We own and offer bonds of Utah Municipalities yielding 5 to 6t. ROSS BEASQN'G CO. InvvV TMt.N t mf n ftcuntric ,i Lee Angeles Pocatello "ALT relt Building 4 . u.i " 77 47, the -- highest 1917. This is .67 4 44 points under BT GENERAL UPWARD TREND Oil and Steel Shares in Vigorous Demand; New Government konds Find Ready Sale;-- . Credit Is Plentiful. - By W. S. NEW YORK, Oct. 15. The last week has furnished one of the moyt vigorous responses to the enthusiastic demand for speculative stocks that has been seen at any time during the progress of the rent bull movement in the stock market, .. ,y . f. uo w..u that ImDor-burstant Interacts In the speculative district were seriously debating as to whether the 1922 bull market had not completely run Its oourae, and wag ready to give way to the long reactionary price movement that always follows a major upH ward swing in prices. ed Encouraged by the apparent evidences that the market was unable to proceed farther in its forward course, the bears sold ths market heavily. In which movement they were Joined by the longs, who were greatly deslrbus of cashing in the paper profits which had been accumulating over a t T LA lift CITY Phone Was. 6012 can be most easily and most readily availed of. Business and Industry ars decidedly on the upgrade, unemployment shows a further decrease, production is increasing and the sountry -- aeemst headed for s prosperous era. Rusinees and wonderfully financial -- leaders ars well pleaaed with the progress that has been made since midsummer, and confides tly predict a continuation of these favorable tendencies over an extended periods New U. S. Bond Offering Overtubtcribed Billion Business Outlook Hopeful WASHINGTON. Oct 15. The treasOnes again It should be said that the new offering of $500 000,0Msf 6(4 urys feain call rates which flurries money bonds has been overper cent COUSINS. subscribed approx Imatel v$l. (Too, UOO.OOO, K ture the financial district at the present actual accomplishments in this respect time ars not Indie aUve of monetary con- was announced todayby Secretary Mellon. Books for cash offering closed at Inteand some on prospects that have never ditions In the United States. The . rior banking Institutions have mors use boon yesterdays made good. for their money at this particular seaBuhsoripttoha for which 4 per retit e or December 16 treasury Hardly had the announcement concern-- , son than at any other time of the yesr, Vlctory-'KotIn payment will are tendered certificates lng the offering of the new government m received and allotments will be made bonds by the treasury department beenjCaj centers But the current statement In full until October 31. Approximately made than offers to purchase them by the of- - the banking Institutions, asaiso of 1150,000,000 of such subscriptions already s stem, jtfiow that have been allotted to full under the terms millions were rushed through to Wash- -, jjj federal arereserve not only abundantly sup-ne- of the offering. hanks lngton. Such was the demand for the Subscription, received to date, according to reports In hand, were a. Id to sg- purchase market than run the chance of missing their desired allotment at the treasury ar -- w gregate more than $1,500,000,000, of which about $1,400,000 000 represented cash subOf ths cash subscriptions, scriptions. mors than- $325 OOO.jlQO was in amounts not exceeding $10,000 for any on sub- - scriber. ' Officert Save Confessed Slayer From Mob Action POCATELLO. Idaho. Oct. IS. Protection of the sheriff and the hurrying of to the stats prison for y saved the prisoner from summary treatment at tha hands sf a mob this morning. Hoagland, the officers say, admits that he killed W. D. Patterson, a farmer of Long valley, yesterday morning after a quarrel about the division of cattle. According to the he walked a mile story of the prisoner, to Itotteraons home and watted until In ths yard. Hs then aald; he came out "Its all off with you." and shot with a rifle through the right shoulder and through the right56 chest. years of age and had Patterson was thirty-thre- e lived In Long valley for been had a member of tbs He years. and had been county commissioners prominent in the life of that community. Rumors of a mob rising to lynch Hoagland caused hia removal by the offlcera D. L, H oagland safety-svidentl- office'. Investments Sell Readily. There has been a disposition toeriflclza the secretary of the treasury for nut offering the new bonds gt-- per cent Instead of i It tofelt that the most favorable conditlcutspretall In the money market right now, and that no difficulty would have been encountered In placing the bonds at 4 per cent. But Secretary Motion was considering not only the proe- Price crumpled up alJects of success of the cash offering, but long period. value evaporated, even to the point of the assumed obligation of furnishing an establishing new low records for the year attractive substitute for the Victory 4t But professional Wall street opinion per cent notes for which the new bdnds was so heavily committed to the bull side are to be exchanged. In part of the market, and large operators were Offerings of new domestlo railroad. Inso prompt with their support as soon dustrial and public utility bonds and as. the proper level was reached, that notes continue on a good scale, and thus the slump in prices was never of such far Investment banking syndicates have proportions as to constitute a vigorous no complaint to offer as to the reception new offerings by secondary reaction, The trend, therefore, accorded to these remains upward, and participation has American investors. As a rule the deonce more broadened out from the profes- mand is so much greater than tha iup sional clique to the trader of moderate ply that only partial allotments can be means, to whom the margin account of- made. There has been a temporary lull fers the only possibility of acquiring bis in the offerings of new foreign government bonds, due to the unsettled condishare of profits In a hull market. tions prevailing in, the principal European Prosperity Expected. While the speculative appetite of the public has been whetted by the remarkable forward movement of the Standard Oil stocks, as also tha plans which are In preparation forbythe splitting up of these heretofore stocks into smaller trading units. It has been appealed to no leas strongly by ths excellent records of the leading Industrial concerns country, and the widespread belief that we ars now entering upon an era of unprecedented prosperity. Fhould this latter expectation be realised, and the evidences all point to that conclusion, ths present level of prices of a good number of industrial stocks with high potential earning power Is far from discounting the prospects of even the next six months, while from an investment standpoint the attractive qualities of the steady dividend-payehave not been fully appreciated. Foremoat In this group are the steels, equipments and Inoil stocks at present furdustrials, the back-dog of ths distinctly nishing the stocks speculative Very few of this group con be relied on to furnish an as sured Income over an extended period, and, therefore, mak their best appeal to ths speculative (contingent, both those who are juggling for daily advances, as well as the professional bears, who sell on ths bulges' for fractional profits. The wild sci amble for Standard OH stocks Is based, not upon any new and profitable discoveries or accomplishments by the companies concerned, but by the inauguration of more liberal policies In-in the distribution of the fruits of past dustry. It is obvious, however, that the mere splitting up of a stock certificate into four or twelve component parts without the equivalent multiplication of the dividend disbursements on the original stock, Is not a real disbursement in the general acceptation of that term. The Standard Oil company of New York, for example, is at present paying $1 a share on Us stock. Will it pay $48 on ths equivalent new stock, or $4 on ths furshares? Otherwise it has ther split-u- p no business to publish announcement of a 200 per cent stock dividend " The same is true of a good many other stocks that have been widely boosted, some for high-pric- ed V 4. monejMedffters. During the past week important recoveries have taken place in prices of listed Yallroad and industrial bonds, mak lng a much better showing than the Irregular record for the ' previous month. bond index for Dow, Jones ft Po September, based upon average price and yields of forty corporation bonds. Including high and second-grad- e railroad, pub- - 4 "WIDTH of-t- he jeaaiiiniMiininiiiHiiiKiaiiaHiiKianiiiBiiiiiansiKiiiBiHMHBiiiiiMaaj !ifor utility aqd industrial issues, reached figure since January, point over August and 1917 Public January, utility bends made an 'unusually large gain of 1 76, from 69 83 in August to 71 69. They ars still 65 point under the Second-grad- e railroad high of 1917. bonds declined' .16 point, ahlle high-gra.28 advanced Investment Issue and reaching the highest since point Irftiustrlal 1917. bonds gained .55 point In September to 76 8, compared with a high of 76 63 In January, 1917. They have maintained steadiest movement during the war and since. 11c STOCK TRADING IS MARKED rent I! ,, OIE OF .THEJ3EST BUSINESS LOCATIONS IN THE CITY m 3 m Apply Tribune Office. Shingles. Indications Point to Increased Activity in Industry; Grains Make Rally. You get the utmost satisfaction and the most gratifying freedom front roofing troubles when Shingles on your house, you put Ceriain-lec- d v NEW YORK, Oct. 15. (By the AssocPress) Better prices for farm products and evidences of increased industrial activity marked ths past week in business and finance. A rally in grain iated comes, oddly enough, at a time was dear that the crisis in ths Turkish difficulty had been passed. It was attributed partly to reports of smaller crops abroad. In any event, December wheat rose above $1.09 a bushel, approximately 10c above the recent Iqw. Domestlo crop estimates, made public by the department of agriculture on Monday, show, on the whole, very little change. Wheat is now placed at 510,000,-00- 0 bushels, or only 8,000,004 bushels less than In ths previous government estimate, while corn is expected to yield 2,853,000,000 bushels, or 21,000,004 bushels less than was foreoast on September 1. In other words, abundant crops of cereals will be available. Cotton, meanwhile, rallied to above 22c a pound. Existing prices are over 2e above the recent low and ars materially less than 1c below the high of last year. The week's federal reserve statements indicate both an Increased volume of business and a movement of funds .toward agricultural districts Tbs reserve ratio of the system is now nearly 8 per eent below the peak which was reached at the close of the season of summer dullness. Discounts, deposits and note circulation continue to grow Meanwhile, the tendency is toward slightly firmer conditions in the money market, although. no sharp rise in the cost of commercial accommodation is anticipated. Oversubscription of the treasurys new issue of 4(4 per cent bonds Is regarded as a favorable Indication as to the condition of the investment market. The new bonds, which were offered to the value of $oOO, 000,009 er thereabouts, are primarily designed to provide the funds for the redemption of the $870,000,-00- 0 in Victory notes which have been for on called December payment 16. After these notes have been the chief maturities which will paid off, have to be taken care of before next July will be $826,000,000 in war .savings certificates, which the treasury hopes to refund into new treasury savings certificates, and $1,800,000,000 In Victory notes. Financial quarters believe that these operations will be accomplished without disturbing the money and securities prices when the same extra quality found in Certain-tee- d Roofing plus the artistic beauty of genuine slate surface in either soft shades of red, green or blue-blac- k. Certain-tee- d Roofings Shingles , Tarred Felts Insulating Papers Paints of All Kinds Varnishes linoleum i Od Cloth FlOOSTkX Tk. XcsMoiarf, Suitary, Attractive FVnrCowra, These shingles are made in individual and in Four-widt- h Types. They are easy to lay and have a very artistic appearance on the root Notwithstanding their extra quality Certain-tee- d Slate Surfaced Shingles are sold at reasonable prices due to great economies in manufacturing and distribution, effected by the Certain-tee- d Plan. CERTAIN-TEE- D PRODUCTS CORPORATION Certainty of Quality- - Satisfaction Guarantee1 OES0E htirtCJiiW' j Phone Was. 425 YES! 257 So. Main PRODUCTS CERTAIN-TEE- D IN STOCK AT ALL TIMES fi Trunk flafe recede. o Luggitgo Phonograph! Cutlery Silverware Auto Good! 998,-00- 0. EZSXXZS338XZKXZBE8EIK3XEXBBXSEXXISEEXZXZ::XSIESE3IEEXIBZE1EBIXIIIXSEB3EEEEEXEES II WE CARRY A COMPLETE LINE OF i markets Industrial returns continued encouraging. The (railroads have set a new high record for a year In the matter of cars of revenue freight loaded, the total for the week ended Beptember 30 being Nevertheless, car shortages continue to represent the limiting factor lit the steel Industry and In a number of others. Steel price are showing a tendency to Slate Surfaced Shingles hare Certain-tee- d it ar The front portion of the store-rooj adjoining The Tribune business office- - SHINGLES For appearance and permanence roof your house with Certain-tee- d Slate Surfaced rs BEAVER, Oct. 15 A farewell reception was tendered Mr and Mrs, Timothy Brownhlll Friday evening prior to their departure for Southern California, --where Ths recepthey wilt make their home tion was given under the auspices of the chamber of commerce, the order of the Maccabees, of which Mr, Brownhlll Is a cttlsena of Beaver member, and the county. (1) They are safe. (2) Being f.A.HOGLE&CO. Ogden HELD. Experienced investors buy nicipal Bonds because 1. sit Lake City PARTY Special to The Tribune Gold Bonds First Mortgage 1 due July 1, 1948 Secured by First Mortgage oh the entire property and franchise and its ONLY FUNDED represents DEBT. 'J ( There to an annual sinking fund of outstanding, provided of 1 tv, Afte nt enough has elapsed since the States 4 per cents were offered to establish two facts about that treasury operation which was more or less In doubt beforehand. The markets will not be upset through withdrawal of half a biHlon dollars from the fund available for cash investment But the oversubscription by 100 per cent or thereabouts means that the son. United States governments credit Is cent basis or firmly fixed on a 414 DELICATE CHOICE. better. That Is proved quite as clearly per cent Chicago names Its principal streets after by exchange of maturing 4 Philadelphia names hers Victory bonds as It would have been bv president. new nuts. a for cash whole the Life, after subscription loan, because tbe holder of a $1000 VicIs footIf he not todav on the tory loan. ing of an investor with $l0oO cash In bank, which he can place in government bonds or in other more remunerative securities, will, in all events, be in that position hext December or next Indeed, he can occupy It tomorMay. row, if he sells his bond for cash at the premium ruling on the stock exchahge. of Montreal JUST REMCMef thev Dearest trca&urq . Both Domestic and Foreign Professional Speculators - Traders Being Convinced Predominate in Trading Present Prices Too Low. During Week Just Past - Y Blossom USA o i |