Current Situation

A remarkable change in sentiment regarding business has taken place during the last six weeks. For a time everyone was pessimistic about everything. Next agriculture, chain stores, electrical equipments and utility enterprises took heart. Money declined. The foreign situation brightened. The political nominations were assuring. Even the industrials, which are not yet out of the woods, took heart. Now the average individual is becoming optimistic about everything.

These emotional swings in business sentiment must be rather carefully discounted by the conservative student of affairs. In business, as elsewhere, there is no perfect Heaven nor any utter Hell. The worst situation has some promise in it, while there is always something seriously the matter with every "period of prosperity," even from the beginning. The developments of the past two months are quite generally encouraging, yet common sense is still needed to counterbalance the fervid rhetoric of the revivalist school of business prophets.

Easy money is no doubt the crux of the present situation. It is alleviating the inevitable shock of a liquidation of real estate and rentals. It is carrying many industrial concerns which have been sick ever since 1920 and are even sicker today. It is facilitating railway and utility mergers, and European recovery. But unless it leads to inflation, American business remains distinctly The Kansas farmer this year spotty. is in luck, while the textile-mill operator of New England is distinctly out of luck. The time for the average business man to shut his eyes and dive in has not yet arrived.

Steel's Extra Dividend

Financial opinion, impressed with the severity of the current steel slump, was dubious regarding the showing which the U. S. Steel Corporation would make during the second quarter of 1924. When recently the results of operation for the three months ending June 30, 1924, were announced, however, a more optimistic attitude was prompted. During this period, net earnings of the Steel Corporation were $41,381,039, or $3.44 on each common share, compared with net of $50,075,445 for the first quarter of 1924 and $47,858,181 in the second quarter of 1923.

The surprising stability of U. S. Steel earnings was attributed to the large unfilled orders on the Corporation's books, which have been very largely reduced during the past three months. During the first six months of this year, net earnings have amounted to $8.47 a share on Steel common stock. This remarkable showing justified the directors in declaring, in addition to

the regular quarterly dividend of $1.25 a share, the "extra" dividend of 50c inaugurated last quarter. Banker George F. Baker declared that the stock was now practically on a $7 basis annually -and he ought to know.

After the payment of $6,304,919 in dividends to preferred stockholders, and $8,895,293 to common stockholders, there was still $8,575,079 left to add to the company's already enormous surplus.

In this Presidential year, the showing made by such a bellwether corporation as U. S. Steel is not devoid of political interest and significance. Next to the agricultural revival, it is perhaps the most encouraging economic sign for the reëlection of Mr. Coolidge.

Trunk-Line Plan

For some time conferences between the leading trunk-line railroads into New York have been going on. They have been held alternately in the headquarters of the Pnnsylvania and the New York Central, and besides the representatives of those roads, officials of the B. & O. and the Van Sweringens, heads of the new "Nickel Plate" merger, have attended. The inclusion of the latter, incidentally, proves that they have "arrived" in the railroad

sense.

The purpose of these conferences has been to develop a plan of consolidation according to the terms of the Transportation Act, yet satisfactory to the leading roads themselves. Apart from the New England roads, there are now nine roads in this territory, and the problem really is how they can be reduced to four groups.

Not since the days of Harriman and Hill has the country seen so much enthusiasm for railroad mergers, or such a gathering of chieftains to coöperate in railroad consolidations. The definite conclusions of the conferences has not been announced, but the bare fact that they are being held is in itself highly significant.

completely full. Apparently the horse-trading" stage of the negotia tions has been reached and passed. It the terms are right, the creation of consolidated "Nickel Plate" system o of the original New York, Chicago & St. Louis, the Erie, the C. & O., and the Pere Marquette offers very distinct advantages to the latter three roads as well as to the first-named line. The U. S. is coming into a tremendous railway-merger period-is i fact already in it. Little roads are bound to be swallowed by someone who will not bite too hard. On the other hand, the trunk-line roads must look to their laurels, too.

Nevertheless, railroad merging is a complicated business, full of legal and economic difficulties, easily stalled by the clash of personalities or the desire to hold out for better terms. Yet the present lenient attitude of the Adminis tration and the current ease in the money market are too favorable to permit undue delay in needless negotiations. Evidently the railroads earnestly desirous of finishing their mergers while the sun still shines.

The D., T. & I.

are

The Detroit, Toledo and Ironton, Henry Ford's railroad, is justifying its employes' faith in its earning powers. On Nov. 1, 1923, the railroad (ie., Mr. Ford) inaugurated a pla whereby the road's employes could purchase investment certificates in the road out of their earnings. Tc date, $162,994 has been so invested by the road's employes. For the first half of 1924, they will receive 6% on their "investment certificates" -which is at the rate of 12% per

annum.

The Interstate Commerce Commission on Aug. 1 granted authority to build 56 miles of new line for the D. T. & I. at a cost of about $7,500,000, as well as to issue first mortgage bonds to raise the funds. The new line will extend from Malinta, Ohio. to Durban, Mich., and will serve to shorten haulage distances over the Detroit, Toledo & Ironton line.

Check vs. Cash

The recurrence of pay-roll robberies in Manhattan has led the Merchants' Association to investigate the desirability of paying employes by check instead of with cash. The Association has discovered that "generally speaking, employers liked the scheme. employes viewed it with disfavor, and the banks were on the fence."

Employers who pay entirely by check claim for the practice that it prevented robberies and hold-ups, as well as disputes over the accuracy of payments: in addition, it entailed less clerical work, provided an automatic receipt i

payments, and educated employees in using banking facilities.

Opponents of the payment-by-check plan, on the other hand, maintain that it offended employes by making generally known the amounts of their wages and salaries, that it wasted time by forcing employes to cash their checks in banking hours, and that it created a new danger of dealing with "raised" checks.

From the banking standpoint, it is open question whether the extra trouble to which banks are put is recompensed in the aggregate deposits gained; also, special methods of identification are necessitated to enable tellers to cash pay checks with safety and confidence.

Macaroni

Macaroni was manufactured in the U. S. 50 years ago. But not until the last 25 years has the product assumed importance. The heavy Italian immigration after 1900 did much to increase the demand for it. Just before the War, there were 373 macaroni factories in the U. S., whose output was 250 million pounds annually; in addition, 130 million pounds were imported.

was

During the War, European macaroni practically unobtainable here, and the U. S. industry grew. By 1920 there were 450 producers with a production of about 450 million pounds, while our imports fell to only one million pounds. Meanwhile, per capita consumption here had risen slightly from 3.9 pounds to a little over 4 pounds annually.

In 1923, imports of macaroni rose to 31⁄2 million pounds, most of it from Italy. But the U. S. in the same year exported over 7 million pounds of home-made macaroni to the United Kingdom, Canada, Mexico, Cuba, San Domingo, Belgium, Honduras, Panama, China, Japan, Australia.

Italy still leads easily as the chief macaroni exporting nation, however. Last year, she exported over 35 million pounds. France ran a good second with about 30 million pounds.

Super-Power

With money available at low rates and an attitude of live and let live prevalent in public opinion, utility companies of the hydro-electric variety have been enjoying a considerable boom. There has been in consequence unusual

interest shown in plans by various engineers and engineering associations for the establishment of "super-power" systems over wide areas of the country. A sub-committee of the Northeastern Super-power Committee, headed by Secretary Hoover, has completed a report upon possibilties of this sort for the New England and Middle Atlantic States.

in

The Committee represents both Federal and State officials, and was tended to promote coöperation between local and national authorities in merging and consolidating hydro-electric problems and equipment. The sub-committee's report is mainly concerned with the production of electric power from coal, since in the northeastern section under consideration water power can supply only 25% of the power required. The recommendations of the report include the linking up of power systems now local only, and the construction of central facilities for creating and storing surplus power. Such a system would, the sub-committee states, result in the saving of more than 50 million tons of coal annually, as well as larger power reserves and less danger of interrupted service. Such a unified system, too, would facilitate the conversion of railroads to electric power from steam, and make power available even on the farms.

Coffee

So large a proportion of the world's supply of coffee is raised in the Brazilian states of San Paulo and Santos that the recent revolution in that section has had an important effect on the world coffee market. Spot coffee in New York rose in July to 17.15 cents-its highest price since 1921. America has gone ahead drinking coffee as usual, but about 800,000 bags of coffee which normally would by this time have reached Santos ready for shipment here are still held in the Brazilian interior by the revolt. The present visible supply of Brazilian coffee in the United States is only 887,102 bags-about six weeks' supply.

In all, about 22 million bags of coffee are consumed by the world at the present time; 10,700,000 bags go to the U. S. A. alone, 10,300,000 to European countries, and about 1,000,000 elsewhere. Coffee dealers question whether, apart from the Brazilian revolution, production is keeping up with consumption. The forthcoming Brazilian crop is estimated at 9,500,000 bags, about 6,000,000 bags will be produced elsewhere, and there is a world's visible supply of some 5,000,000 bags-making 20,000,000 bags altogether.

This situation is responsible, according to the coffee trade, for the fact that, although the Brazilian revolution has apparently been completely put down, the price of coffee has not fallen back to where it started from before the revolution occurred.

A Business Opportunity

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No man is too big for the business. Men of strong professional standing with splendid incomes have given up these incomes and their professional work to engage in this service, with success.

The business is merchandising, but it entails a service that is unique, intensely interesting-productive of great enthusiasm, and broadly constructive. It makes you the greatest benefactor in your community, town, city, or district, and pays you a real profit for such benefaction.

Service is the foundation of all real success, and this service literally enables you to take time from eternity and put it into the life of man, and make legitimate profits in doing so. Address:

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What Is the
Needed Factor?

In spite of abnormally easy money rates, business as a whole has not improved to any marked degree. But, in July, the stock market's decided advance has seemed to indicate a substantial business revival in prospect.

What is the factor needed to increase business volumes this fall and to assure a continuance of rising prices for stocks? One very important element can effect both. Is it, or will it be present? Will stocks advance in August? Our latest bulletin discusses this factor thoroughly and arrives at a definite conclusion.

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SPORT

Brittannia

Leaning gallantly aslant, flouncing a foamy white ruffle at her gay forefoot, her great bellying sails stretched taut aloft, Brittannia rushed past the finish buoy off Bournemouth, England, was saluted winner. Thus ruling the North Sea, this long, slender creature of grace and majesty delighted the heart of the ruler of all Britain, whose yacht she is.

Astern of Brittannia sailed Lulworth, plaything of P. H. Coats (thread man). Still further astern, in the billowy offing, White Heather and Sir Thomas (tea) Lipton's 23-metre Shamrock IV tacked slowly toward shore, their seamen low in heart after lubber-luck. These two had led the race, bowling along bow and bow, until, as they swung by a boatmark, the Shamrock crashed the White Heather.

Golf

Canada. On the 18th green of the Beaconsfield course at Montreal, Que., a golf ball nestled close to the hole. Since sailing off the first tee it had been smitten only 68 times. Up walked A. H. Murray, professional at the Montreal Country Club, proprietor of the ball. He seized his putter, twitched his wrist, the ball rolled askew, missed the cup. Undismayed, Murray whisked it in on his 70th stroke. He had won the Canadian Professional Championship (open to Canadians only) by a twostroke margin. Nicol Thompson, of Hamilton, "ran up" with 146 strokes.

U. S. golfers were not barred from the Canadian Open at Mount Bruno, Que., three days later. Galleries flocked after slouching Leo Diegel of Washington, D. C., and Gene Sarazen, "grinning runt" of Briarcliff, N. Y. Leo ticked off a 285 for the title, Gene 287 for second. Other Americans in the annual border raid: W. Macfarlane, Tuckahoe, N. Y., 288; J. Farrell, Mamaroneck, N. Y., 291; W. E. Melhorn, St. Louis, 293; Clarence P. Hackney, Atlantic City, (1923 winner), 295. Ablest Canadian: A. Kay Lambton, of Toronto, seventh with 297.

Greenwich. Toiling up hills, jolting down, amateur guests of the Greenwich Country Club, Conn., qualified behind Reginald M. Lewis, one of golf's imps. He was at home among all the blind shots Greenwich presents, literally and in the figure 71. The match players dwindled away, including Imp Lewis, to two juveniles-W. H. Taft Jr., of Dartmouth College and Montclair, N. J., and J. J. Mapes, of Harvard University and Easthampton, L. I. Recalling how those Greenwich hills had seen him larrupped by Dexter Cum

mings in the Intercollegiate Final (TIME, July 7) Taft larrupped Mapes.

Women. The long tiled porch of Shenecossett Country Club, at New London, Conn., was all a-titter and a-flutter with 175 women, flocked thither for one of the season's larger invitation tournaments. Sober and serious, young Glenna Collett, of

International

GLENNA

Few face her without a tremor

Providence, R. I., moved among them, wondering if she could win another leg on the Griswold Trophy. As the week wore on, the seasoned Mrs. Dorothy Campbell Hurd, of Philadelphia, disposed of her opponents most stoutly, coursing around often under 80. Glenna continued pensive as she brushed her own antagonists aside. Finally the two met; Glenna cracked out a scorching drive, Mrs. Hurd hooked into the fence. At the 15th, Glenna won the leg she so wanted. A newspaper account spoke of Miss Virginia Palmer, of Shenecossett, whom Glenna whipped 7 and 6 in the first round, as a "frightened opponent." Few, indeed, face Glenna without a tremor.

At Lake Forest, Ill., the Onwentsia links swarmed with 152 golfing Amazons beginning play for the Women's Western title, but Glenna had not rushed out to mingle with them. Champion Miriam Burns, of Kansas City, and National Champion Edith Cummings ruled the scene.

Edith, who was raised amid Ouwentsia's daisies and knows every hole on the prairie, including those made by gophers, had little trouble navigating the rainsoaked course in 84, low medal.

"Big Four"

Open fields on Long Island reverberated with the furious drumming of horses' hoofs. Riders shouted and strained. There was heard the solid impact of bodies, the crash of weap

ons, the slap and squeak of straining leather.

It was not Indian warfare nor even a rodeo, but U. S. poloists prepar ing to defend the International Chal lenge Cup against an English invasion next month. Crowds along the side-boards at Westbury and Port Washington trained their glasses. The Defense Committee o the U. S. Polo Association (H. P. Whitney, R. E. Strawbridge Sr., L. E. Stoddard, D. Milburn) scrutinized closely the aspirants for the "Big Four" as they beat the willow-wood balls about in practice matches three times a week.

Charged with selecting the final combination, the Defense Committee shifted and experimented with a White team (first) and a Blue (second), later called A and B.

Their chief problems were to find a No. 1 man, to decide on a No. 3. Their material:

Devereux Milburn-officially named captain of the U. S. team, a seasoned campaigner of all the International matches since 1909, often called "world's greatest polo player." He plays at Back, a hard-hitting, hard. bodied tactician. The English fear him as they fear no other American

Thomas Hitchcock Jr.-his father played on the first U. S. team to meet England, in 1886. He, now only 24, played against England in 1921, was a titan on the offense. His power and accuracy with a mallet are prodigious, his strokes are long, high loops. He was certain of his old position at No. 2.

Malcolm Stevenson-a substitute on the 1914 "Big Four." A smallish man, short and dark, he is not spec tacular in a mêlée. His play is clever, steady defense at No. 3, where he pairs splendidly with Milburn and does the backing up during Milburn's tearing charges. His handicap, 9 goals, is but one less than Hitchcock's and Milburn's.

Eric Pedley-a rangey, youthful Californian, the first Westerner to be even mentioned for an International tour. Within two weeks of appearing on an Eastern field he displaced J. Watson Webb at No. 1 on Team A with smashing play. He is an allround athlete, magnificent horseman. During one match, he surprised the gallery when he crouched over his horse's neck, jockey-like, in "riding off" an opponent. The ordinary method is to sit clamped in the saddle.

J. Watson Webb-a 9-goal man,

*International polo dates from 1886, wher team from Hurlingham, England, visited the U. S. The Challenge Cup, then donated The Westchester Polo Association, remaine at Hurlingham, safe from U. S. attacks in 1900 and 1902. In 1909, Harry Payne W ney organized a "Big Four," bore off the Can to Meadow Brook. The U. S. defended al in 1911 and 1913. In 1914 the English captured, to lose again in 1921, the most cent series. Two out of three matches 27 played.