September 2, iSgg.
ECORD AND GUIDE
"eX ^^ ESTABLISHED ^h\HlÇH 51^^ 1868,
DevoteD 10 Hea,'- Estate . Buâ– lLDl^b Ar.c^'itecture ,h(oiJSEUoU) DECca^Tlorf,
Bifsit^Ess Alto Thèmes orÛEi^feRAl iKieriEsi,
PRICE PER YEAR I fj ADVANCE SIX DOLLARS.
Piihli'-hcd evcri/ Baluvday,
TSLRPHONE, COBTLANDT 1370,
Ccmmunicatlocs should be addressed to '
C. W. SWEET, 14-16 Vesey Street.
J. 1. LINDSEY, Business Manager.
" EiiHred at lhe Posl-O^tse at l^em York, N. T., assecond-class maUer."
"Vol. LXIV.
SEPTEMBER 2, 1899.
No. 1G42
OUR market sympathizeû so promptly witli the scare and re¬
covery movements of the London Stock Exchange this
week, as to suggest rather more dependence of the former
on the latter than is comfortable. This maltes it look as if fur¬
ther advanees of New York prices depended almost wholly on
London buying, and London has shown so much readiness to
take small profits on Americans that it cannot he depended on
for a sustained movement. The foreign buying is confined almost
wholly to Raiiroads; azid, as there is so little spéculative in¬
terest on this side, securities, with few exceptions, that hâve
only the home market to dépend on, suffer. Besides, the time for
blind confidence is passed, and there is some wholesome marking
down of issues that bave bad undue attention, particularly
among the cheaper Industrials. Still there is a fair maintenance
of strength, which will be increased as the interest of home
buyers is increased and suppléments the fltful foreign demand.
There is hope for such an increase in the fact that our holiday
season ends later than does the European; also, of course, in
the continued prosperity in business, which gives no sign of ces¬
sation, but which, on the other hand, may be expected to increase
with the passing of summer and the coming of fall. The stock
market is likely to suffer from the distracting influences of the
yacht race, tlie Dewey célébration, the fall élections, etc. But
thèse, notwithstanding, though always desiring to see the Iogical
prospects, we cannot endorse tlie timeliness of the bear view,
although also, it must be admitted, it has a good many supporters
in the Street.
, " r» HAT the attempt to scare the London Stock Exchange on
A the Transvaal situation was so easily defeated this week
ïs another reascn for believing that the difficulty between the
British and the Boers will find a peacefiil solution. Another may
be found in the semi-official intimations that in the event of
hostilities Europe will remain neutral. And another, as signifi¬
cant as the two others put logether, in the release of Boer ammu-
nition held at Delagoa Bay by the Portuguese government, at the
instance of Great Britain, The Dreyfus trial drags on and af-
fords daily évidence of the looseness of Frencb judicial meth¬
ods. In either Britain or the United States the trial would bave
been stopped by the Court long ago, or as soon as the ilimsiness
of tbe prosecuting évidence was displayed, and the accused dis¬
missed to his home and to such remédies as he could obtain for
the awful cruelties put upon him. But as the thing occurred in
France, and has become a political and racial question, the for¬
eign public still await the outcome with a modicura of doubt. The
European business situation is unchanged from last week,
Money continues to be fairly easy, but in good demand. The
home demand for gold in Britain, in the year ended the middle of
August, absorbed £6,711,000, or more than three times as much
as the immediately preceding corresponding year, and twice as
, much as in the same year of 1S95-96. The Bank of England bas,
therefore, had to meet a very largeiy increased home demand,
as well as to provide against possible calls from abroad. Rho-
desia isa long way from fulfilling the promises maie for it by
Cecil Rhodes. So far from having made administrative receipts
.and expenditures meet, the déficit for 1900 is estimated at £412,-
000. In spite of the activity in the coal, iron and steel trades, the
dividends reeorded on sbares based thereon show wide divergen-
cies in the expériences of the several companies, and that few can
make regular and satisfactory returns. Prices of the stocks,
however, are considerably above the average with the best period
of activity in the trades yet to be heard from. In German coal
and iron trades no material change îs reported, except that the
consolidating movement, checked by the money stringency last
year, is being revived. Irou and steel workers are hîndered in
their opérations by an inability to obtain sufficient coal and raw
materials. Owing to a condition of semi-panic in Russia, the re¬
sults of crop failures and over-speculation in industrial issues,
the government of that couutry has come forward to reassure the
public by a statement to the effect that Russian rentes and the
State bank are in an excellent condition, and that industry is as¬
sured against reaction by the increasing demand and the duties.
This is an unusual step and more likely to. increase than assu-
age fear. The Spanish Finance Minister, Senor Villaverde, is
getting the finances of his government into better shape, and has
succeeded in putting the relations of the government with the
Bank of Spain on a better footing for the former, Dr. Rosa Na¬
tional Minister of Finance, when questioned in the Argentine
Hciise of Deputies recently, was unable to put forward either a
programme cf administrative économies or a promise of redue-
licn cf taxation. Next year the foreign indebtedness of the coun-
tiy, mcluding .Î25,000,000 of floating debt, would amount to |468 -
991,000 gold, and would require $27,750,000 gold to meet the inter¬
est and amortization on it. A rise in the gold premium has fol¬
lowed the announcement cf a measure of eurrency reform
A S Wlll be seen in another column of this issue, the Internai
Revenue office has decided not to appeal tbe décision of
Judge Taft, in effect that a deed of transfer of real property sub¬
ject to a mortgage is.only taxable, under the War Revenue Law
of 1S9S, on the equity eonveyed. That tbe Internai Revenue of¬
fice was preparing to take this position has been apparent for
some time in the language of its décisions. Its original position
was that tax must be paid on the full value of the property eon¬
veyed, and that, in the case of property eonveyed subject to a
mortgage, that value was the equity plus the araount of the mort-
gage. After Judge Taft rendered his décision, this was modified
to the extent that tax must be paid on the full value unless it was
expressly stated in the deed tbat the grantee was not responsible
tor the mortgage. Lately, however, the Internai Revenue office
has held that unless the mortgage is assumed by the grantee
either by direct statement or by inference from the language of
the deed the tax is on the equity only. The distinction between
disavowai required at one time and assumption now wiU be noted.
However, the position of the Internai Revenue office is no more
Iogical now than it was originally; it has simply modified ita il-
Icgicality. The contention ever since the War Revenue Law eame
into force has been that, where a pièce of property sold is sub¬
ject to a mortgage what passes îs simply the equity, and that
alone is taxable. This, as we understand it, is practically the
position that was sustained by Judge Taft. The rulings of the
Internai Revenue office as to taxable values naturaily favor the
Treasury as much as possible; but in not acceptîng Judge Taffs
décision in the full extent of its meaning, while declining to risk
an appeal no service is done either the public or tbe government.
The public has the encouragement of a décision of a Fédéral court
to resist payment of the tax on jnore than the equity, however the
responsibility for the mortgage may be placed, and to claim
repayment of any taxes hitherto paid in excess of that The
technical refusai of the Internai Revenue office to accept the full
effect of Judge Taft's décision is most probably due to a désire to
limit the number of thèse claims as much as possible. The ques¬
tion could be best settled by a suit to collect excess taxes paid in
a case wbere the grantee has assumed responsibility for a mort-
gage in the deed, unless the Internai Revenue office will take an¬
other and final step in the right direction, and acknowledge that
where a pièce of property is sold subject to a mortgage the tax
is on the equity only.
rn EPUBLICS bave to be guided with a loose rein, not because
â– ^ ^ a tight grasp would not be a wholesome thing, but be¬
cause the guide dépends for his position so directiy on the con¬
sent of the guided. A hereditary monarch, wbose déposition is
a very remote contîngency, can do things that a ruler receiving
his authority directiy from the people cannot do. Hence the
défiance of the law by M. Guerin in France, and the length to
wbich strikers are permitted to go in this country before the
law intervenes to protect the liberty and property of individuals
inimical to strikers. In view of this license allowed in labor dis¬
putes in this country, it is particularly agreeable to notice that
labor leaders are not only discountenancing violence in strikes,
but are also adopting a policy of limiting strikes themselves as
much as possible. A notable déclaration in this direction is that
recently put forth by the Building Trades section of the Brooklyn
Central Labor Union. This condemns the striking of one union
against another. Besides this, the circular in which this déclara¬
tion is made condemns what may be called the union of unions,
exorbitant initiation fées, strikes and dissentions among unions,
The only thing about this announcement is its appearance of