The Wall Street Journal from New York, New York • Page 2

si ft I a -roctncD nun. THE TOIL STREET JOURNAL Published dally, except by 'i DOW, JONES" CO. CH4RI.KS OTIS, hHMMl Joseph Caehman, H. A. Treasurer.

A-A Mliwi St. Jew Yevk, K. A A iA''-' Telephone: On Broad. A'A'A TTIM PAPRR Htl A LARtiBR riRCUUiTIOir THAI 'ANT OTBKR AHKRICAN riftANUAt. SakwvlpMwMt 113 yearly, It monthly, or Bvo cents dally, for either edition; pottage paid Jn the United State.

Canada, Mexico. Puerto Rloo, Guam. Philippine Wanda, Hawaiian and Cuba. Foreign postage a. year additional -y A A A' Addreoaea will be' chanced at frequently a desired, tot In every case the old addreaa also ehoald be (Iran.

ASvertseeateatsi Rates will be Xarnlshed on request by a er any responsible advertising agency. tKntered at the New-York Post Office aa second-class snail matter. A' i Tfed tralb la Its proper aee, MARKET DIARY. mi i8io Thursday, Dec, 28 Weak. Thursday, Dec.

29 Strong. 876,475 of stock 286,570 126,80987... Since January 1..... 162,462372 05,150,800 January 0617,188,000 The Isrgert trsnsactiona were: Price Up Off Sle Stocks Sale Price Up Off 62 44 18900. 14000 63 ltt 11100..

ft St 0250 123V4 IV Lehigh VaL 15800 180 IV. 3500. Con 1910 18 Vk Vi 46500. 67900 150 IS 63530.. Union Pac.

2T70O 170V4 lVk 83550.. 730OO 72 1 19000. Cop.1. Average 20 0114.04 .96 4 108 185V 150 170 66 55 116.15 81.S0 98 63 103 9.00 1 1 2 1 1 .64 .54 Aver afro 12 industrials Chicajto May Chicago May 81.76.1.11 97 1 48 New York May 102 New York May com 56 New York May cot 15.11 New York May coffee 11.10 Call money renewals 3r Time, 60 days to 6 mo 84 5 1 3Cr V4 4i 4.864.8605 Commercial psnt Sight sterling 4.851004.8515 London tettlement Detember 29. 11, and 12.

Next, January 10, Pride la aa cruel a beggar as want, and a great deal more eaucy. When you haw bought one flno thing you must buy ten more that yonr appearanre may be all of a piece. 1'rankflu. HOLLAND'S LETTER. Continued From Firtt Pagt.) prietor hui complained bitterly 'because ho was compelled to maintain the standard prices fixed upon by the wholesalers, for, unless he did so, he found himself unable to buy thes; copyrighted specialties.

Many features of the problem of competition, looked at from the broad point of view, are to be discovered in Ihe operation of these two great retail drug corporations, and are hereafter, no doubt, to be exemplified through the operations under the merger of the two corporations into cr.c. It is undoubtedly a fact that both of these two corporations gained their striking supremacy by beginning a small way to sell their commodities at cut rates, low latcs, price's which tempted the public. The business which at first was, comparatively speaking, small, gradually increased. The increase of business brought large additions cf fresh capital, part of it earned, part of it contributed. One of the corporations at last operated twenty retail stores in New York and another operated twenty-five.

Then stores controlled by these corporations were established in ether cities. Having gained their power and Iheir preeminence by competitive methods they are now able to carry this competition still further. BP.MV8 AND ENERGY. Into the development and direction of these corpora tions ability of a very high order and never-ceasing en ergy were concentrated. Laboratories of their own were established.

They employed-competent cnemisu. iney beg'an the of drugs. So that at last except nrtiele upon which the copyrighting monopoly of the Gov- ernment had been symbolized by appropriate words, they were able to manufacture almost everything entering into a A i tha of a druggist With patient analyses their chemists discovered drugs and the due proportion of them which entered into the; composition of copyrighted medicine. The secret composition thus mastered became their own formulas, and they were able to duplicate the copyrighted article and market it at a considerably smaller price. Besides tho merger bitween the liegeman and Riker corporations there will alro be what will be practically absorption of another retail drug company which is the owner of nearly forty stores in other cities than New York, and, through a fort of community of interest or profit-sharing basis, really operates drug stores in all the larger cities ofthe United States.

A CiUUTW MSBOHt. In addition to the merger of these two retail drug store corporations th year 1911 will become traditional, so far as combinations are. concerned, because of the creation of one great corporation having a capital of 065,000,000 whose business it will be to own and operate five and ten-cent retail stores which are identified by of F. H. Woolworth.

This plan is world encircling. To some extent it involves competition with various small dealers, as, for instance, hardware dealers or crockery or notions, and it has already been asserted by Independent retail dealers in Pittsburgh that this, corporation has maintained a competition with them which has brought them to dis-aster. Mr. Woolworth recently said, in speaking of the fl- nancing of this great proposition, which is now under way, that the corporation would under no temptation or circumstances buy out snd merge any rival corporations. That determination had been reached because the Woolworth corporation was anxious to escape the slightest suspicion that it has been organised and is to be operated in violation of the Sherman anti-trust law.

It is, on the other hand, with new capital, to expand the business which it at present controls, and so to expand it that, like Puck, it will girdle the world. THE SECRET OT SUCCESS. But if this great corporation and combination Is to Succeed to that It may earn fair percentage upon the investment, as well as meet operating expenses which In. the aggregate will be enormous, this business must be carried on along, competitive lines. This competition, of 1" course, will be directed at the small individual store- keeper.

r. In various ways, some of them indirect, some direct but aboveboard, these shops will tempt to their counters buysrs 'many of whom would, but for these patronise 1hs small dealer. Herein, therefore, is the fundaments! of competition to be illustrated. A Recently Picsident jaft in imVvmal discussion with a friend whose home Is in New York city, 'was told that if the Government should not permit the organisation of this great corporation, on of whose purposes undoubtedly is to overcome tbs competition of small Individual then action should be taken before the corporation Is or- ganized, for it would be unfair to permit organisation to be perfected" and the business begun and afterward well established, and then there come intimation by the Government alleging that the corporation was. organized and opersiea tu new tchk; cdtral imrmi PLANS OF FAR-MACniNG SCOPE.

MERGER OP CENTRAL AND LAKE SHORE TO BE FOLLOWED BY EXECUTION OF HUGE -A- REFUNDING MORTGAGE. Wag it CtearOnee the of th Stock Hat fteen Obtained From the Collateral Trwtt Bondholder, to Merge the Two RotuU Juto-Oa WUtout: A' teoMt'rtniJ the Minority Stock of the Loit ShoreDebenture Sot to 'i Sotwrtd by the New- 'V Mortgage? Financial flans now in process of development for the New York Central system grow in importance as additional detail transpire. Contrary to the impression that prevella in a good many quarters," the. so-called second mortgage which It is proposed to execute for the security of the present Lake Shore and Michigan Central collateral trust bondholders, in place of their lien upon the stocks of the two subsidiary roads, Is not comprehensive blanket refunding mortgage recently talked of but is to be limited atrictly to the parpoae of securing the release of the Lake Shore aad Michigan Central stocks from the existing truat. In due time, certainly not until after the merger of the Central and the Lake Shore has been practically accomplished, the Vanderbllt management will take up the work of creating a first and refunding mortgage big enough to provide not only for the refunding and con solidation of all the present debts or the unified road between New York and Chicago, even including the New York Central's 0100,000,000 3, and the second mortgage of approximately 0110,000,000 mentioned above, but also, a yet undotermined, amount of construction and improvement work.

Without going into a catalogue of bond and note Issue, it is easy to see that for refunding and Improvement purposes of the contolidated Central and Lake Shore roads, the proportions of the contemplated first and refunding mortgage will rival and may exceed thoee of the Great Northern's recently create! 0600,000,000 mortgage. The 30,000.000 first mprtgago 4s of the West Shore are not likely to be provided for, since those do not mature until the year 33C1. 4 But the blanket mortgage is something quite apart from the work now actively in hand, which is the consolidation of the Lake Shore with the parent company. Because of state and national, law and the public temper In regard io the consolidation of parallel lines, no effort will be made to, bsing the Michigan Central Into the combination, at least not until circumstances I ave so changed as to permit such a step. But the New York Central management is compelled to obtain the release of the pledged Michigan Central as well as the pledged Lake Shore stock because the twt indentures are so drawn that the two trusts can only be dissolved together and one substitute offered for both.

Bankers who have' supposed that the new second mortgage could not be created without securing under it and equally with the holders of the Lake Shore and Micni-gan Central collaterals the holders of New York Central debentures because of a clause in the indenture creating the latter, to the effect that no mortgage except for re funding tnay subsequently be created that does not equally secure the debentures, are reckoning without their host. The Central management has been advised that the two collateral trust indentures, constitute in the eyes of the law an "equitable mortgage," and that the creation of a second mortgage for the benofitof the collateral trust bondholders, as provided for in the collateral trust indentures, is simply in tho nature of a refunding operation. The second mortgage will, therefore, be drawn without reference to the debentures and will take rank ahead of them. The consolidation of the New York Central and the Lake Shore, once the consents of the necessary three- casarv mrw i fourths of the collateral trust bondholder has been ob- wincu, win oc amooui sailing, per cent, or Laxo Shore stock is already in the Central's treasury. The greatest proportion of the stockholders of a road to be I absorbed which is required by the laws of any of the states concerned to have given assent to absorption is two-thirds, Tbis is not to say that the absorbing road could force the transaction (through on any terms it saw fit to make, but it does dispose of the idea that any minority stockholder or any group of them could compel the Central to buy them out at their own figures in order to carry out the merger.

Whoever is dissatisfied with the terms offered can go to court The laws of New York limit the capital stock of a railroad formed, by the consolidation of other roads to the aggregate of the stock of the roads formed. Hence the consolidation of the Lake Shore with the Central could, at the present time, incresse the stock of the consolidated nnnInny n- to PluJ WfimfiW. 000.000. flhvinilBlV that min.i.itw rruL-emlrles. tt th fair.

wuv Shore art not jroirur to accent tlOO a lock of the consoli- I company ror fiuu snore stock, figuring in nuimneu wnipany can be Issued into that compsny' own treasury fo4r th tofk now owned fcy the fw or tntral wU make it possible to offer the Lake -macuvc w. LACK ANNA'S CUT-OFF BENEFIT, i ProiiaioM Made to Put hi Two More Track When the nnnrse minnrirw atvstetu hn Butintte Warrants It. A new feature regarding Lackawanna's cut-off over-which trains started running December 24 is the provision to put in two additional tracks at little expense when business comes to warrant it Without these the opening of the line gives Lackawanna a four-track i line from Hoboken past the Delaware river to Strouds-jburg, Pa. Two tracks via the Morris ft Essex division and two via the Boonton division make the four tracks to a little beyond Dover, N. J.

Thence double track on the new line and the two old tracka via Washington, N. carry the four-track line across the Delaware. This aids extremely in carrying Lackawanna's heavy anthracite traffic from Scranton to tidewater ant will enable the handling with ease of larger commodity traffic and other through business from Buffalo to York and vice versa east of Scranton. DETROIT MACKINAC. Net With far the Corretpondiug Month in 1910, The report of the Detroit ft Mackinac Railroad Co.

for the month of November and five months ended Nov. 30, compares as follows: 1911 1910 1909 1908 085,480 68,288 22,192 473,351 334,567 138,784 Nov. gross Exp tax. Nov. net.

5 mos gross Exp ft tax. 5 mos net A 090,283 088,776 79,843 66,728 71350 16,458 23.557 16,926 822316 508,688 514,068 57,310 874,442 111,335 151378 130,628 DELAWARE HUDSON'S NEW SHOPS. i a A To Complete Ntxt July a. Locomotive and Repair v- Shop at Cott of Delaware ft Hudson Co. will complete in July, 1912, a modern locomotive and car -repair 'shop, at a cost of approximately 02,000,000.

The shop lay-out also provides for large modern engine-house and car-cleaning facilities. A portion of these -will be available next month. A -f. During the last years Delaware ft Hudson Co, has spent in the neighborhood of 017,000,000 for new equipment without making any of it shop facilities, and the new shop Is to take care of the needs on account. The shops are located on a piece property of 180 acres in area midway between Albany and Troy.

A a 1 Washlngton-tCorporation tax, Dec. 28, 01,361 to date, 056379,484. A- 'rv'v'. i a AL, ID A ILL Lit i I'XIOX PACIFIC STATEMENT." JVct for ovmbtr Decroaeo of Front Xovewber IVar Ago, The report of the Union Pacific Railroad Co. for the month of November and five months ended November 80, compares a follows: -r ion Av miles op 7,115 8,556 1909 6,220 08841,783 8.824,827 812,815 4.204.140 1908 6,029 07,241314 4,095,067 197,869 Nov, gross, 07,677,923 $8,506,643 4,305 417 JJoey 8,872,506 470,150 Net inc.

24J02.35G 6 mo gross 30,869,384 Expenses, i 20,829,646 5 no net 19,039,568 4,280,861 .4,285,783 281,671 4,004,211 8,895,197 4016,005 86,057,368 22.074,093'. 18,824.036 16,198,591 1968,777 1.361.896 1,291,032 9H1.Z15: Net inc. 17,167,183 18152,076 2100,937 18367,665 PACIFIC KAKXIXfvp November Net VeereoM of Grose $11,958,013, Decrtato $21,1, "30. The report of the Southern Pacific Railroad Co. for th wmnth Norciubcr aTid Ttvr jnontHi Ncrr SO compares 'as 'v 1911 1810 1909 "l908 Miles oper 9,934 9.892- 0,766 9,622 Nov gross 011,956,913 01 2,198,643 012,324,026 011,085,203 Expenses 7,766,038 7,885,740 7,021,158 6,642,886 Nov.

Ret 4,190380 Taxes 44M25 Net 8,740,355 5 mo gross 7,772,888 Expenses 35,506,613 5 mos net 22.260375 Taxes 2,038,275 5 net Inc 2028,100 4332.903 6,802.868 867,762 881335' 4,465,140 4,071,032 5071,269 A 65,635,947 85.091,739 33.544,856 25,091,091 1,880,465 1,690,869 21,749,056 23,400,221 4,442317 806,772 52,188,106 81,658,031 20,630,100 1309365 19,120,799 CHESAPEAKE OHIO COAL TRAFFIC. Total Tonnage in October JStJSS Tone' More Than-Year Ago, Jnereatt of 13. ChetHpeike Ohio's total coal tonnage during October was 182,136 tons larger than in October a year ago, a gain of over 15. The total this October was 1369,846 tons compared with 1,387,211 ions. Coke business did not 'compare' so favorsbly.

the total tons this year aggregating 18.916 against 87309 in October, 1 9 10, a loss of almcst 100. There were some small differences In the direction of the coal tonnuge as compared with last October, 65' going west compared with 63 last year, and tl going to tidewater against 23 a year ago; while eastbound local coal tonnage remained the same. The percentage westbound traffic Is high and the company would wel come a greater proportion of tidewater tonnage as It is more profitable to ship the coal in this direction. For the four months, of the fiscal year ended October 81, Chesapeake was over 500,000 tons ahead of its coal tonnage for the same period of 1910. The total tonnage for the period was 6,049,197 against 6,633,131 a yesr ago.

Of this traffic, 65 went wast compared with 63 in 1910 and 22 was bound to tidewater aga'nst 25. Four months' Coke figures show a falling off of 068 tons compared with the first four, months of last year. SENATOR CLARK PREDICTS COPPER WILL SELL AT 15o. I'ointe to Rapid Demote in VixiMt Supply and Say Total AvailaJtte Would Not Latt four ilontht if Pro-duetion Ceated No Dig Depoeite Opened. Boston Ex-Senator William A.

Clark, president of the United Verde Copper takes a very optimistic1 view A -T d. PP" 'ery 7.. "'The sUtirtical position of copper at the present time nd Urease of the visible supply, not only in 'the United State but through out the world. The total amount of copper available in the world would not last more than four months if all production were to cease. "So far a we know, there are no large deposits of copper being opened up, and, therefore, an increase of production from new sources is not probable within the next four or five' years.

There will be, however, a very material increase of production later on and within the next six or eight months by reason of the installation of now plants in Arison on the stxalled porphyry deposits. "I believe that this increase, although it will be large, will have no material influence on the market, in- ft much an with the resumption or normal conditions oi a I. WLUK fntf 4kti10 nlncv th poTtsiimtition wi increased in the United stete8, and It already very urge in x-uropc. parucu- 7 lanv in itcrniauy. nt prol)Bble that we may see copper at 15 cent' withitt the next two or three months, and possibly sooner.

go Ur lho general feeling among copper producers is adverse to boosting price too far. I believe Droducers wm be thoroughly content with a price ranging from 14 to IS cents. "Heretofore In every instance when the price was un- duly advanced materially r-bove 15 cents, it has resulted in a collapse, sometimes to figures that would not admit of profitable production for most of the large companies." CIIILDS CO. STOCK INCREASE. To Raiee tkf Common Stock to Making th Total $7,000,000.

At a special meeting of the Childs Co. Jt was voted to increase the common stock of the company from to 04,000,000, making the company's total capitalisation now equivalent to 07,000,000, including the 03,000,000 of preferred stock. At the annual meeting directors were re-elected. Officers were also re-elected. v.

Ne" RiUlload A lilnatlOU Incrt8eL Trenton A report submitted to Governor Wilson hows an Increase in the assessed valuation of railroad and canal property in New Jersey of 088,213,072 for 1911. PEPPER AND SALT. I.ITTI.K. PHOBI.KMS. Of all Ihe ways and works of I elk.

as an alisurhed spenlatnr. Why does the good Amnrluan Npiak of Hie seedy -elevator." While John Mult In his terser way, i Calls lliatonirlvance snre and aa-lft Which, we use nearly every rtav, A 'Ta careluss use of aurh a word In time to the Idea would tend (Which In. as Kuclht says, absurd) These things do nothing bat aacund. 'Tl not a question of surmise. "Tis known to everyone In town That "llfie," every time tty rise.

Come down. "Ascenaeiir" Is the r'rennhman'g term; And that eonvrra the elfsanie notion. "Hs tirni-, my hrothera, to be nrm. roPlitUii, friim ocean enlo ocean, Yon never ean ascend downstairs Yon could not elevate below at whlto atern Ixiglo atares, y. Most Uwdon Olobe.

I A I'KOHHBJSMTir. din sign of prosperity la the slsnatoiv on a eiieok. Philadelphia Iteyord. A VHEX IT t'OMM TO SU4 KI.V.' llacon Do yoa think runn Is superior to an animal-' Jrbert urel I know men. that an klok more with wo legs thatj a male can wlti atatoman.

'v 1 'i; "THRY ttOl LU, I.M1KE1X If men' had to be judged by nn to detortnliie their flt-jieas for 4ea veil, anels would wreep. Kain'a Hrn. M'ISS man who freely admit that, ha doesn't nw 'when kw''J I i I LIGntyG COMPANIES IN 1911 IIAD PROSPERITY' AND GR0YTIL -v RELATIVELY GREATER INCREASES IN OPERATING REVENUE WERE SHOWN BY ELECTRIC COM- PANIES IN SPITE OF LOWERED BATES Of the Oat Comptmie Brooklyn Union Showed Mott Earning Progreet and the Strongeet Financial Con- ditionNw York Editon Cut Off Income A $935,000 in towering1 Rate in July, NtvertheUn Made 4 Wonder- Ror4Peoplta Goo. A '--y' Rate Fight. a'a" Generally speaking 1911, now closing, ha been en of prosperity and growth for both gacHand electric lighting companies.

Relatively greater progress has been shown by electric companies likewise, larger increase In earnings. A-' 'A Companies considered In the ga group are Con-j solidated Gas, Brooklyn Union Gas, People's Ga Light ft Coke, and LacMaM at St electric lighting companies ar New York Edison Co. and Kings County EJectric Light A Power. The most prosperous of the gas companies was Brooklyn Union Gas. It will show a surplus for dividends of approximately 01300,000, in increase of 021,679 or 1.2 ever 1910.

Its grew increased about 0400,000 or 4.4. The comparison, however, is with, the previous most successful year thn-eomnany's history. Tne prosperity of the company, however, is evidenced by the balance sheet, which shows cash on band of more than 03,090,000 and a surplus of close to 06,000,000, the latter equivalent to 38 1-8 on the capital stock. Apart from two et plosion in which there wa loss of life and considerable property damago on which the company may have to pay 0100,000 to 0150,000 damages, the chief event of the year camo on Ncrnmrer 16, when the directors declared an extra dividend of 1, making 7 for the vear. or in dividend payment.

No promises are made as to future payment, but no surprise will be caused if an extra dividend of 1 1 declared quarterly until the 8 necessary to make up to shareholders an average rate of 6 since 1906 is declared. At any rate the company is in position to declare as large a dividend as 1 regular and extra quarterly. This without reference to property held other equities. Against the record of the Brooklyn Union Gas Co, may be placed that of the New York Edison all of whose stock is owned by the Consolidated Gas Co. This company -cut electric current rates to such an extent as to check its Increase In revenue by 0625,000 in the six months the lower rates "have been in effect Nevertheless, the company will have increased operating revenue by 6 in 1911 and surplus for dividends between and 0600,000, giving the company earning of more than 12 on 050,000,000 capital stock.

The company declared dividend amounting to 6 for the year, which gave the Consolidated Gas Co. 03,000,000 and added more than 03,000,000 to th previous Edison surplus of ove. 020,000,000. King County Electric Light Power, a 010,000,000 concern, has not been, comparatively speaking, so pros-perou as the New York Edison Co. The Dreamland fire caused the company to lose a large portion ef its customary slack season business.

Notwithstanding, th company will show a larger surplus for dividend this year than in 1910, when more than 01,000,000 was shown, or above 13 on the stock. Eliminating the marvelous prosperity of the Consolidated Gas most important subsidiary, New York Edison that company from Hs ga business will earn about 6 on 0100,000,900 stock, compared with 7.43 last year, taxing into consideration earning oi an me auDsiaianes tne company wouia nave a surplus lor uw year available for dividends after liberal repairs, renewals, depreciation and other funds of more than 12. To count the earnings with these charges and funds the surplus for the year would be nearer 20 than 15. Laclede Gas Light Co. offset a lower operating rev enue, owing to the reduction in rates last April, by a more favorable oil contract and larger business and will have been able to increase the balance for dividend by about 0100,000 to 0945,000.

The company will show 9.8 on averasra outstanding common stock of 010.150.000 compared with 10 on 0800,000 common stock in 1910. People' Gas Light ft Coke Co. which does business in Chicago, Is in a unique position in that the company's 85-eent-a-thousand-cubic-feet rate extended from the beginning of 1911 to August 1. when the Circuit Court fixed the rate at 80 cents pending settlement of the contest with the city, which contest hss now come before the State Circuit Court The case is rather far from settlement The year 1911, however, may be fairly closely estimated on 85 cents for seven month and 80 cents for five, accompanied by official statements from the company that the normal rate of increase in business ha been maintained. The average rate for 1911 is 83 cents.

Had the 85 cent rate continued the company's gross torould have approximated 016303,000. This less 2-85ths gives operating revenue of about 016,000,000, On the basis of normal increase in expenses, plus exitra charge for legal expenditures, the surplus for dividend would total about 02.850,000, compared with 08,154 332 in 1910. or 8.2 In 1911, against 9.01 on stock in 1910. New York Mutual Gas Light in which Consoli- dated Gas owns 55 of the 03,436,600 stork, has declared a 5 dividend, making 9 for the year compared with 7 in 1910. The increase in dividend payment Is only 670,003, of which Consolidated Gas receives about 037,000.

It is significant, therefore, in illustrating that within the past two months business with the gas com- panies has begun to pick up. for the coming year are brighter than they have been since 1909. This should mean that 1912 will bring more of prosperity to gas and electric lighting than did 1911. A (. EU ATE A I LR A I A I M.

Opci a ting Income During August Compared With $H1, C9T.SU iu August, 110. Washington-Revenues and expenses of steam rilwy ton i i 1 AiMnntiiaa arutrtirtr nsa InrnpsT tA 1 nmmertm rtm r- mission, ar ss ioiiows Rail operations: August, 1911 August, 1910 Amount Per Mile Amount Per Mi. .0165323.150 0678 0169,815,994 0704 Freigl.t revenue Passenger revenue 67,494,209 276 66,626,263 277 16,641,523 69 Other transporta rev 17,217,91 70 Xon-tranaportation rev 2,305,791 10 2,803,163 9 Tottl operating rev. 253,048,1021,034 Maint way ft struct'i. 8583,704 144 Malnt'ce of equipment 37,414,751 153 Traffic expenses 5,119,789 20 Transportation $0,797323 330 25.

.886,94 1,061 36,537,481 152 86,432,789 5,260,842 81,304.422 5,755,647 6,781 165,297,414 89,589,630 General expenses z-i Unclassified expense. 660 Total operating exp. 164,459,751 672 Net operaUKg revenue 862 UUtsiae operauui.s Total revenues Total expenses Net revenue Total net One-twelfth ann'l tax. Operating income 5,990,212 24 5.998,694 5,350,758 5,480,955 689,433 2 517,738 69,222304 864 90,10769 9,684,614 89 9,009,757 79,538,190 325 81,097,512 244,631 240,170. Average mileage oper Includes 2,013.61 miles not in the United States.

(Includes 1,999.67 miles not in the United States. Adinmdark Electric Power Co rjroratlvu. A Albany Public Service Commission ror the second district ha received a petition from the Adirondack Elec. trie Power Corporation for approval of its isau of stock, of which 02,500,000 shall be preferred, and 09 500.000 common stock; also 05,000,000 fifty year n. A i gold tne oominiseiun nsa nyyvuivca a nenrino; od the application for January 10.

New York Honduras 3I)uIii(f 'o. The N'sw York ft Honduras' Mining Co. of New York Min It Piil. from 01300.000 to 92,000,000. i i I I I 688 wzzyt a co.

115 DEVONSHIRE ST. BOSTON 66 WALL 8T, NEW YORK Hew Tavft a Beef tteek sxataaae 1 rrtovesiiaciit Securities 'totclzn Exchange tetters of Credit Correspondents of LTD. -'a 'a. LONDON ANSWERS TO "nTBLuoatrt txemar rvat.tc's sisat bArasoafcDb tBliilUO A ALTSX IMKIM, 19785 Do Iok contidrr Chxrean A Alton ltiUCl. a buMuent won't tnvettmertt How wenld it rank with Denver 4 Rw Grande B.

1 Answer The Chicagj Alton Railway first lien 8 bond due 1950, are redeemable at pat and interest upon any interest date on tlx months' notice. These bond are Secured bv a first lien mortram an SS miles Ut road: also by a setrond lien upon properties and franchises covered by the first lien and refunding first mortgage 3 bonds, due 1949. They are further secured by deposit of The issue is listed on. the New York, 'Stock Exchange, but they are relatively inactive and are now around 66, at which price the yield, if held to maturity, is 6.63. At this price the bonds are but a trifle above ne iowen price made this year, which wa 65 on Aug.

18th. This security is generally classed as fair middle grade railroad bond, and Is a very good proposition for a portion of the surplus of a business man. Chicago Alton aa a property is not very prosperous at the present time, and earnings have not been showing up as they should. Last June It became ncjessary for the directors to pass the preferred dividend, and at that time it was stated in effect that the road needed its surplus for main tenance, improvements, etc, worse than the stockholders did for dividends. It is p'anned to make many changes 1 for the better and to build the road up to a high state of efficiency, so that when dividends ar again there will be no question as to their continuance.

While all this should hsve added material strength to the bonds, the acknowledgment of the road's financial position and the accompanying decline in the value of the preferred stock exerted a depressing sympathetic influence on the balance of the securities of the company. Until the road does arrive at the point iU management hopes for, there doe not appear to be much prospect for material improvement in the price of the bond. The Denver ft Rio Grande first and refunding 5 bonds, due 1955, are redeemable at 105 and accrued interest up to and including Agg. 1, 1913, upon proper notice; thereafter at 110 aid interest The authorized issue is 0150,000,000, of which there is outstanding now 082,994,000 These bonds are secured by a mortgage and aeea or trust which is a hen as follows: (a) A first lien, upon 129 miles of the railway; (b) a general lien upon 2,400 miles additional of railway owned and operated by the company subject to prior liens of about (c) a lien upon all betterments, additions, extensions constructed or amuirerl with tfta nmros. nt h.

.1 this bond issue. The bonds are also secured by deposit of collateral. At current levels, around 85, the yield is 5.93. The highest price these bonds have sold at was 96 in 1909. In 1910 the ranee was 94 hii'h NO W.

in isu tne range has been 93 high. February: 84'-i low, Sept. 22. The decline in price followed out of sym pathy the decline in price of the! other securtie tha company at the time of the passing of the preferred dividend by the Denver. This action by the directors was taken because of the state of the finances that the corn-nan found itelf in nt tkn fk.

It will be remembered that the Denver ft Rio Grande financed the Western Pacific and guaranteed the interest on its bonds. The earnings of the Western Pacific, a new road, were not sufficient to meet its fixed charges, so it was necessary for the Denver to make good upon its guarantee. While the Denver has a large surplus, it was not considered the part of wisdom to continue the dividends by appropriating funds from the surplus for this purpose. Ultimatejy. the Western Pacific should work out to great advantage for the Denver ft Rio Grande, but while It is laboring under the heavy load of carrying the new property, the securitiei'of the company will reflect this condition of affairs.

The high yield on the Denver ft Rio Grande 5s is some as to the degree of doubt existing in the minds of the investing public. They aro generally regarded as a good middle-grade railroad issue with considerable speculative possibility for a long pull. While neither the Denver 69 nor the Alton 3 Mi bond can be ssid to be representative of the highest type of security, for the reasons which have been pointed out, still they ahould prove suitable for a business man's nur- pases. Between the two perhaps the Denver first and refunding 5s is the more attractive, TWO-CENT RE OHSFItV t'V Crutral Pattmger Attociatio Revvl.m Clmirmaii'i Authority to Grant Reduced Rate. Chicago Central Passenger Association has revoked authority of the chairman to grant reduced rates to any line asking for same under certified plan of 1,000 or more Colonist and reguUr seaboard excursion rates are undisturbed.

Added significance1 was given to the meeting by attendance of Chairman Garrett of General Managers' Association, who stated he was preisent as representative of the railroad presidents, who desired strict observance of the 2-cent-fare rate in the future. EXPRESS COMPANY" FOK3IKD. Atlantic Express Co. has been formed to conduct Prei snd transfer business in New York, ton and throughout New England. The Hoyt-Tarbox Lx press Co.

of Boston will be aiuned and a new busineM jn New York Tefft 4 Co. are offering the 7 cumulative preferred stock, with a bonus of 25A in common, at 90. John J. McDonald is president of the new. company and William Ixeb, and William G.

McAdoo directors. TWTMV- MIST UK SOMK TSlKF OSf l''rnm Tin- Mulllmoro AuicrUau, Lil t-.