Winnipeg Free Press

Winnipeg Free Press (Newspaper) - August 3, 1925, Winnipeg, Manitoba 12 Manitoba free press Winnipeg monday August .3, 1925 Hon. J. A. Kobb visits Toron to. Rumor is that government May contemplate issuing refund ing loan in Domestic Market. News of the business world Trade and Commerce mines and the Money markets Price Bros get Over four ail. Lions in common and preferred Stock for share in Chute a Caron Power site. Qty of Ottawa Sells Bonds at under five . Keen bidding results in borrowing Al 4.92 prices May stiffen in future Pix a enl in lie Gairdner Clarke co Toronto Abiff. Outstanding event in the Canadian Bond Market during the past Weic was the Sale of City of Ottawa 3 per cent to Orts rat Erin s in id. A 0 and 80 instalments were awarded to the Alicce Psul tenderer a Price of 300.747, Bellsr approximately a -1.02 per cart basis. Other a sales were township of Thorold 5 per cent Bonda maturing in so instal ments which were Awa tied at a. Price of 99.88 and interest a 5.02 per cent basis and Ford City Homan Catholic school per cent Bonds maturing in so instal ments which sold at 9h.67 and in Terest yielding 3.7s per cent. The bidding on individual issues has been very keen and would seem to signify a further stiffening in prices in Gen eral. Notwithstanding the fact that the Tradler Market on Victory loan securities has weakened to some extent cd urls the past week consider Able interest Haa been attached to the Ysit of the Hon. J. A. Rob. Act ing minister of finance. In Toronto in thursday last at which time he. Conferred with Muny of the Leadens financial men of the City mainly with the intention of feeling out the Situa Tion with to the forthcoming Issue of the Dominion government. There has been considerable talk of the Issue being made in the Market but the. Consensus of opinion in financial circles still seems to be that it will go to us new York Market. If the latter course is Fol Lowed there is bound to be a considerable dearth of securities for the Canadian Market this fall which would in nil probability result in an increase. In prices. On the other hand the movement of the Western crop will undoubtedly lighten Call Money to some extent temporarily which May react on Bond prices to keep them around the present revels until the movement of the Western crop gets Well under Way the funds com Mence returning to the Banks. American Woollen prices show Many reductions american Woolen co. Opening of worsted for Spry no of 1926 shows an reduction of 22 cents a Vard on 55 numbers of Semi Staple worsted from n year Aro says Tho Wall Street journal. Woolen lino.9 opened were about the same As a year ago. Compared with prices for goods offered at the fail 1925 open Ink. Held last reductions Are even More striking. Certain important numbers show1 reductions of from 40 cents to 60 cents a Yard below the Price asked mor Pix months ago. As a. Lave part of the his com Pany s machinery is in worsted and worsted fabrics lower prices at. The current opening Are expected to have an important effect on next season s business. Price cuts of course chiefly reflect the Waff i Cut just announced and the greatest Restuc tons ire in those goods in which labor forms a predominating part of the Cost. Economies in management recently introduced and lower priced also have been important fac tors in certain numbers. 34 failures Toronto. Aug. 1. Commercial failures in Canada Durins the week ended yesterday totalled 34. Compared with 33 or the corresponding week of last year. Fifteen were reported in Quebec province and seven in Ontario four in Manitoba three in Saskatchewan two in new Bruns Wick and one each in Alberta. British Columbia and Nova Scotia. Steru Ingi Exchange the trader s viewpoint Clark Martin co. 232 Portage ave. Artst despatch.1 new York Exchange firm at 7-16 for sixty Day Bills. And at 5-16 for demand. Pore ten bar Silver. 69vi. Canadian dollars 3-32 Premium. Francs demand 4.71vj. Lire demand the Stock Market during the past week presented a decidedly Strong appearance. It was buoyant to the j extreme and new highs were again recorded by the 20 Industrial age. The Rise although to new High territory not of such a character As to create Over enthusiasm the volume was probably the largest re corded for several weeks Back but that immense volume at present High Levels should be regarded As signs of distribution. During thursday s sets Lam the mar Ket ran into heavy Selling orders which looked to be. Realizing sales hut under cover of strength Are now signs that several issues me being distributed. The rapid Rise that has taken place in leading Industrial stocks has now to a extent discounted the goos things that Are expected from them. At present High Levels the 1 St is Likely to become very sensitive to a by kind of news and it will take very Little to encourage boards Lily inclined traders to press their opinions As the entire technical position Lias been greatly weakened by the Rise on heavy volume Railroad stocks railroads recorded slightly More activities during the past six Days than they had for Soui j time past but their activities have so far full Edlo Meu Xerri with the industrials and have proved a a frat disappoint ment to traders who wore expecting their average to go through their old Helgha several find Uarriah issues advanced vigorously on Hutu volume but their movement a due to their special positions in Tho Market Rue of Tho however Only advanced 1 1-4 which wus partly Dur ing the last ol1 t in week. Their position is however stronger than the industrials. Motor Stock s several issues of. The molar group furnished the levc1 to raise that group s average into higher ground during Tho past week. Tho entire group was very Ilc Tivo Tomc issues attained new High prices for the year. Wii Itu motors was Inu feature. That Issue had advanced u5 Points since Tho Low of july practically without interruption on heavy volume. Around Tho of civil u m a Ltd realizing sales that were Loo 1 heavy to be absorbed without Cou in prices and the recession to the 88 level can be regarded As Normal after the Swift Advance re corded. Its action is however promising of still higher prices. Mack truck was quieter than the previous week and Selling a rights is now Back on the Leval 180 from where the recent Sharp Advance started. Whether a new will Start i Roni present Levels de pends on the accumulation that will Taue place around the Iso. It could easily decline further without injuring its Strong Market position. General motors on the strength of further distribution forged Aguin this week into now High ground accompanied with heavy volume and so far has been Well Able to main Tain its level. Further Advance could still be expected. Studebaker although fairly Active failed to follow the actions of tote group and its activities were con fined within a very narrow of Oil stocks the Oil group was again subject to great irregularities some issues striking into now ground while others wore forced into new lows for the present decline. With few exceptions these stocks have fluctuated on the Clown Side during the pasit week. The action is decidedly difficult to understand As so far Noth ing has developed in that Industry to encourage liquidation of there stocks except that some could stand readjustment in Price according to their yield. The Issue to suffer the most sever-5 decline was 1 an it sharply pressed Down to the Evel before sufficient support was forthcoming and the latter appears to to mostly in. The form of Short coverings rather than genuine buying. After touching the g8 level it. Maile a feeble Effort to rally to the 71 to. 72 level but its action a not encouraging. It looks now that it May touch the 60 level. Houston Oil is another Issue that had to Bear its portion of pressure and it gave ground very easily Al though Selling was Light. It has now lost More than half of its Advance in Winnipeg he Bank of Montreal has 12 branches in Winnipeg. These offices serve every Section of the City so that no matter where you May be situated there is always a Branch of the Bank of Montreal nearby ready to give a Complete banking service. There is a savings department in each Branch. The addresses Are main office main Street and Portage Avenue Mcgregor Street Selkirk Avenue Morley Avenue Osborne Street 337 Avenue 377 Portage Avenue Avenue Goulding Street Selkirk Avenue Arlington Street Avenue Cor. Main Street Cory Foo Avenue Cor. Lilac Street fort Rouie c4tr. Stradbroke Avenue x Csabo rce Street Logan Avenue Cor. Trinity Street Lombard Street Cor. Street a Bank where Small accounts Are Bank of Montreal established Over Ito years 4foo.ooo.ooo Alberta govt. Is not free agent in railway Deal is de. . Bond guarantor Only Mcarthur and Royal Bank must be consulted that the Alberta government a not a free hand in the disposition of Tho Edmonton Dunn Gran and British Ca Lambla railway and that irs lights offal not the Road Ara confined entirely to those set out in the Trust deed mortgage and the act of Canada is pointed out by Greenfield in a. Recent statement. The Premier says there seems to he an impression in the Public mind that the provincial government has a free hand in Mak ing any disposition of the . And , railway it May deem proper and thai there is nothing to prevent tile government either leasing the Road to one of the transcontinental systems or operating the Road itself. This is not the Case. It will t remembered that in 920 when previous administration arranged what is commonly called the manago ment agreement by which the Cana Dian railway company was appointed manager of the railway for a pc i Iod of five pears Tho consent of the j. D. Mean interests and of Tho Union Bank was essential Aud the agreement was in fact signed by both the j. D. Mcarthur interests and the Bank. Situation a unchanged the situation is therefore unchanged from what it was in 1020 and could not be changed except by agreement of Ali concerned. The railway company was incorporated under Dominion legislation and the capital Stock is held by the Mcarthur interests or the Bank for Merly the Union Bank now the Royal Bank of Canada As their assigns. The government is not even in. The position of mortgagee but Only guar Antor of certain Bonds secured by a rust deed Morts Asre to the National Trust company. The rights of the government against the Road Are con fined entirely to those set out in the Trust mortgage and the railway act of Canada. Other debentures were issued by the railway company the . And . And Are now held by the Royal Bank which claims certain rights As Holder of these new York curb close. Osier. Hammond Nanton Standard Oil of Indiana to Standard Oil of new York to Imperial Oil. 31, to International Petroleum 24% to Continental Oil 2sy, to British american Oil. To 39. Reo motors 22 to 22v4. Banks. 207b. Montreal 245b. Nova Scotia 274v4. Royal 235. Union Hub. From the Low of last april. Al though Low in Price no support has been attracted and the 60.level for it will not be far from its stopping Point. Pacific Oil Lias been declining slowly without any Marland Oil advanced to new Hugli ground above the 47 level but at that level it met with Sharp Selling that forced it Back to 45. During re cession offerings Are Well taken and its action continues to indicate that it intends to work to still higher ground. Steel Stooks steel group appears to be an optimistic under current As every Issue although under pressure were Able to maintain their level recently attained. During the two Days of decline the volume was Only 50 per cent of the previous Days of Advance. Every Point decline i Sternousky contested. U. S. Steel continues the most Active of the was in great demand during the first part of Tho week. It advanced to above the 120 level but realizing sales forced it Back to. The 117 level where sup porting orders were again in eve ence. Its position indicates that it will take a co Side Rel ble amount of pressure to Force that Issue any where below present Levels. Bethlehem steel having advanced above All the previous High Points established since the first part of May its Steps Down to the 41 level. The Advance if slow has been fairly constant since the first week in july and present re. be considered 13 natural. The volume is decidedly Small Dur ing the reaction and indicates tha holders Ara confident of ultimately higher prices. Republic Iron and steel is still the most inactive of the Independent group practically no interest is shown in this Issue. It is still at Low Levels and is bound to follow Hie. Rest of the group. I i Iii i. Argyle both to Latosh and Jet Derale in Price bottled and guaranteed by Gooderham Worts a tax Toronto Canada est d 93 years Revenue and income tax income tax collections Rose sharply from in april to in May and to in june. This violent fluctuation is reflected to. About the 6ame extent in the Tola Revenue o Canada which jumped to in May from in again to in june. April and dropped stocks and shares on the Montreal Stock Exchange listless trading Sean in strength and a Stock average trading is bigger than in june 57 issues gain 33 decline special despatch to Tho free Frew uniform strength and the Power Montreal de shares on aug. In list the local stocks Exchange declined to the lowest ebb of the week in saturday morning s ses Sion. Only fifteen Stock issues underwent any Price change at All and Only four moved in More than fractions. If the Market said to have displayed any trend at All it might be termed mildly reaction Ary net losses outnumbering net gains nine to six. Smelters again led the Market and continued to rec6ver the ground lost from its recent High level. Asbestos in the absence of any news As to the outcome of merger negotiations at new York was in fair de Mand and held its own. At 106, breweries rather disconcertingly after its spurt above 47, broke sharply to the aggregate value of three Hun dred and sixty five representative British securities underwent a slight Advance during the four week period ended july to the Bank ers Magazine. The compilation is made up of 87 fixed interest Securi ties 2s7 variable dividend Securi the s which showed a total value of an increase of 0.2 per cent Over the total on Juno 29. Increased activity on the Montreal Stock Exchange last month As com pared with june was an unusual Fea Ture the tendency in most years be ing toward shrinkage in transactions during the Midsummer months. The strength of the Market was Well maintained with More gains and fewer losses than in the previous month. Among the various groups the textile Section showed the most group also recorded Good gains. The paper group was irregular.-, of the 116 issues dealt in during the period under review fifty seven gained ground with the greatest gain one of 23% Points thirty three is sues suffered declines with the greatest recession one of 10% Points eight stocks remained unchanged from their previous closing prices and eighteen out in broken lots Only. Gains of five Points were recorded by thirteen issues while six issues suffered declines of five Points or More consolidated smelters was the most Active Stock of the Mouth and also recorded the greatest gain. It furnished trading in shares and closed at 107, Fop a net gain of 23% Points. The second most Active Stock was Winnipeg electric with shares dealt in. It closed at 62% for a net gain of 4% Points. Bramati att was the third most Active Stock with a turnover of 28.s27 shares. It closed at .57 for a net gain of 2j4 Points. The weak feature of the month s list was Asbestos preferred which was off 10% Points to 108. From operations amounting to is reported by the Standard chemical limited for. The year ended is in their Financil statement now going Forward to shareholders. The addition of re serve for depreciation and debenture interest brr Tigs the. Net loss for the year to which compares with a deficit of s4.936 in the Previ Ous twelve months a. Drastic de Cline in value of the products of the company in both Domestic ant foreign markets is reported. Money at work you will find keeping an invest ment record Well Worth Stock often earn. Than Bond in Hie Long Dun by record Over a period of you pan de Termine whether it a More profitable for you to buy High Grade stocks or High Grade Bonda. A certain Man inherited a Small sized Fortune. B or several he had been dabbling in the Stock mar Ket yet he consistently refused to buy even the highest Grade Bonds. He bought Gigli Grade stocks instead. Finally Ona Day he came in and grave a Large order for Bonds. The Salesman who had Mcnown him for years smiled asked is it out of order to ask you Why you have changed your mind about buying not at his Friend replied. I have been buying stocks As you know for years studying them and trying to make. A. Profit. I doubled my Money several times but always there would be a corresponding loss on some other Stock i have kept a record of All my transactions. The other Day i went Over it carefully for the last several years and found out that t was not even making Bond. Interest. I can put my Bonds away and forget them without sacrificing any income so t lose nothing by buy ing Bonds and i gain the time which i formerly Pont in studying the . 192s. Amok cd Elf Tofa. Bank Stock sales run Nadlyn Prem Toronto a Feijo. 118 at 05 Impe Latr 10 at 186. Says moods review advises holding on to vestments All in Stock prices Are forging steadily ahead while Bond prices Are moving according s weekly review. Thus far tronds recorded their highest May 23, and yet they have remained in such a Strong statistical position that one could not recommend Selling neither has it paid to sell because. Flier has been no better use for the funds share prices Are now responding to improved earnings e thus asm and. Are rising higher and higher above parity with the Banri Market. In. Other words Stock prices Ara higher than usual As compared with Bond prices. It should pay to continue holding both Bonds , at least for the. Time being. To the typical investor there is still no bet Ter Way to employ funds than to leave them in Bonds and to. The typical shareholder there is no very g Ood reason for Selling until the eco nomic situation turns review of year shows business better in 1925 pessimism vanishes As every sign Points to still better conditions to come special United news despatch to free by free Fresn private wire by Todd w. Wright new York aug. The first seven months of the year passed and with prospects that the next five will Orang even greater improvement its Likely that 1920 will go Down As he most prosperous year since 1020. From everywhere Como reports of increasing activity in business. The majority of statements issued by Lead ing corporations covering earnings for the first six months show a very Happy situation. Bulnes in the Middle West is especially Active and the August bulletin of the Kansas City Reserve Bank describes it As exceeding that in the past five years. In the monthly letter issued by the. National City Banc of new York anal dated August 3, particular cheer is derived from tire improvement made in Tho last two months and particularly in july. The undercurrent of pessimism which was quite noticeable in March has completely Dis appeared the National City Bank Points out. In the Stock Market the of prices is higher than that of last , and about 15 per cent the level at the of the March slump. It will be remembered of course that the operators have been favored by easy Money but close observers Are unanimous in the. Opinion that the cause of the rising prices is the pervading spirit of optimism and Confidence in the future. Gasoline stocks reported As lower despite record june crude production consumption outstrips Supply 1 Rafn new York aug. Prices displayed a Strong undertone in sat urday s Brief quiet session of Ilie. Markel. One of the most constructive developments of the Day was the publication of a government report. Showing that gasoline consumption in june a s27 per cent above that of a 3 ear ago and that despite record breaking production of crude Oil in that month there had been .1 substantial reduction of gasoline Stock storage. Standard industrials received Good support. United states steel com Mon crossed 118 for a Small fractional gain on the Day. American moved up nearly two Points to and Baldwin advanced slightly to 113 i. Commercial solvents issues reacted sharply on a Small turnover heaviness also web noted in Brown shoe Mathieson Alkali May department stores Toffi steel prefer red and Midland steel products preferred. In the rails Southern railway moved up nearly 2 Points to Par and Good gains were also recorded by Atlantic coast line Seaboard air line and Frisco common. Total sales shares. Financial notes a Good sign much lighter Grain loadings in then Eck ending july 25 alone kept the total loadings of Revenue freight on Canadian Vii lava below the Tola Tor the corresponding period of 1921. It is encouraging to notice that for the third week in succession loadings of lumber and Oiler Forest products have exceeded those of last year. This Means some Relief to the de pressed Lumbar Trade of he West and also signifies incr imbed building activity. More smelting activity it is expected that the consolidated mining and smelting company will begin to blow in its Copper fur Naces Early this month and will use up the Supply of Ore and concen trate on hand at Trail pending the arrival of Tho Stream of concentrate that is expected to com Mence soon from the Allenby Plant. During the first half of 1025, 180.039 tons of ores and concentrates were received at he smelter Moat of which came from the company s own mines. There Are however 53 dependent shippers on the company s list which indicates a sound basis of mining development in British Columbia. Mark Bonds once More new York Bankers in touch with the German situation express the be Lief that German municipalities Fin ally will make a More settlement the holders of their old Mark Bonds than Lias been indicated to far. German Bonds broke sharply yesterday he declines averaging about 40 per cent on news of the 2% per cent minimum Rale for the of Munici pal securities. Bankers say that Many of the German cities have put their finances in sound shape and could Eelk their old indebtedness at Good prices. Mexico and the Orient under the Lenns of the new treaty just ratified by Japan and Mexico the citizens of each country will enjoy full Liberty of entry into and residence in he territories of the other National treatment being accorded in everything connected with travel and residence. They also receive the right to engage in com Merce and Industry and in matters of taxation and mom favored nation treatment an regards the carry ing on of trades and industries and the acquisition of property of All kinds. Pinning the franc Down the narrow Annare of fluctuation French Exchange bears our Tho opinion expressed by a number of new Voik Bankers hat. It is part of finance minister Maillaux s str Terry to keep the franc at about its Kent level in connection Wilh the Pale of the. New Exchange guarantee Bonds. H is believed Piliere will not be much change in the near future on the franc. Ways the new York times though later in the year n revaluation programme will probably be worked out in connection with the funding of he French debt o the United states. More Asbestos shipped a despatch from Thetford mines to the Canadian Bank of Commerce states that Asbestos shipments show n increase of 2.194 compared with the previous month and in crease of 6.432 tons for the corresponding month year n reserves decreased pros if Cimoch so York aug. Actual condition of Clearing House Banks and Trust companies for the week shows excess Reserve of this is a decrease in Reserve of compared with last week when excess Reserve a segregated Price Bros. Get 4 million for Chute a Carok Price paid in common and erred Stock of aluminium Coa Pany of America j Slin Lal Ami Tarli Lohi or Montreal Auk. Is that the Quebec development in which intros hav Quarter interest have sold subsidiary to the aluminium of America the undeveloped Power. Of Doul Opler. Lioi be Power at Chelc a v Tho sonnenday re Var. Aluminium company of amen produces 90 Oral. Of pro Tuuli in or Plum Annm and in trolled Liy to lift Davis ind Mellon t Ter str of . It hag standing of Apical of Malelya anal now dividends thereon Iho ratio five per a fail. Per hum. Quoted on to new York a sri ?550 per Shan. My the 1 raid in past years s Law Ujj 500 per Minimi. T Rice hot Imp will receive Shor of Price of the Oln Jio Power approximately j value of six per rent Cumuli Allig i cited of dual Zedco Penny of a Par Valno of which dividends will accrue 04b.ooo is from july 1. 192s, i sj.045.000 As from january j. Ind will also receive sharia of common Slock of t Phi value of per Soliai a of n. Capitalized company. In prosperous state having in mind the Vevy arg and Lofs surplus which the aluminium company Han accumulate out of Pusl. Years earnings mid lit present car Nonit Power ii is Felt that the six per rout. Of the company should have a Market value on completion of the i at s figurr1 close to Par. After the Palo of the a. Or on Power there still remains in hands of i Quebec development company approximately Stock being All the issued a spinal Stock n f the company development of or at Isle Malone has Joist beep com to Tho of How Power. Quebec development company also owns he Alma and runway Ana a considerable amount orc a inn in the inf Vimy did Triel. Price. Brothers to rough its ownership of i. Quarter interest in Quebec development company. Is on titled to approximately value of common Block in the Duke Price Power. Freight Exchange rate Ottawa aur. Rale of Exchange in connection with Hipfl Jenks of Between Points in and the United states from Pitt v to h. Inclusive will ii seconds of one per com. There we be no surcharge on intern Tilou. Frel Erht. Or pcs Sonkur Hus inc. T there s a Gillette to suit every face every taste every hand every pocket new zealand is cleared on profiteering charges meat producers and exporters Ana pleased to Flo that the British food prices commission has vindicated the new zealand meat producers Board by unanimously affirming that the charges made against it by some of Tho London Nave not been proved says the zealand correspondent to Tho free . The commission decided that there no foundation for the charge of holding Back supplies and effect of the Boardl b operations was merely to regulate the flow of meat s6 that it should be marketed regularly Over the twelve months of the year and ensure the consumer. J it finds that the increases in the Price of new zealand Lamb and Mut ton since the Board began to operate four years ago not Rei from the Mentz. Board s control of suited ship Bank premises sold ;