ás an asset; capital account as a liability. Many corporations expend money and incur indebtedness which they charge to" construction account," with the idea of eventually issuing new capital in the way of stock or bonds, and, from the proceeds of such issue, replenish their cash for money expended or use the proceeds to pay the indebtedness incurred for the items charged to " construction account." (See also

"Capital Account.")

Construction Company. A corporation - a firm, individual, or an association of individuals, etc., may perform all the functions of a "construction company which constructs some public work such as a steam or electric railroad. For the purposes of this book, ordinary contractors are not included. The "construction company " here referred to is one which agrees to turn over the completed property in exchange for all, or a part of, the company's securities. This ensures a sale of stocks or bonds, etc., sufficient to pay for the construction. It offers, at times, opportunities for those in control of the "construction company to obtain securities at low prices, if there is a wide margin of profit between the actual cost of the construction and the face value of the securities taken in payment. It, likewise, affords a chance for a company to issue "watered securities," i. e. securities exceeding in their face value the actual value of the property which they represent, provided that the officers in charge of the affairs of the company are substantially the same as those of the "construction company," as is sometimes the case.

Constructive Mileage. Allowance by a main line of railway to a branch or connecting line of a greater proportion of the earnings on freight originating on the smaller, and destined to some through point on the main line, than a mileage proportion of such earnings would give it. For example: the main line, 90 miles long, allows the branch line, ten miles long, earning at the rate of two miles for each mile the freight is actually carried by the branch. The branch would not receive one-tenth but two-elevenths of the earnings.

Contango. If a London broker makes a sale of a certain stock, deliverable at some future day — in practice upon the "Account-day" or "Pay-day " and before such date requests a further delay in delivery, or borrows the stock elsewhere to make delivery - the necessity for which might arise from the stock being scarce or oversold the charge which the purchaser makes for granting him the extension, or the charge made by the lender of the stock, is called " backwardation,' or "back." If, however, the situation is just the reverse and the purchaser of stock requests a delay in delivery, the charge made for such an accommodation is called

a "contango." "Backwardation" is paid by the "bear," and "contango" by the "bull.”

Contango Day. (Read last subject.) This is the day on which "contangos are arranged. It is the first of the Fortnightly Settling-days." Also called "Continuation Day," "Making-up Day," and "Carrying-over Day." On this day the settling price is fixed by the London Stock Exchange, upon which all accounts are based and made up. The rate of interest, which is called "contango," is also fixed. Continental. All Europe, exclusive of the British and other

Isles.

Continental paper money, issued by authority of the Continental Congress during the Revolutionary War, and used to defray the greater part of the expenses of that war. An enormous amount of it was put out, the sum total being about $360,000,000. The market became so glutted with it that it depreciated tremendously, and finally became almost worthless, one instance being reported where $1,000 in this currency was given in exchange for $1.00 in silver. This explains our common expression "don't care a continental." Continental Bill. A "bill of exchange" payable on the continental part of Europe. This term is used to distinguish such from those payable in England, which are termed "sterling bills."

Continental Bourses. The European stock exchanges other than those in the British Isles. (Also read "Bourse.")

Continental Markets. Berlin, Antwerp, and Paris.

Contingent Fund. Money set aside to be drawn upon only in case of certain emergencies.

Contingent Profit. A conditional profit. A lawyer occasionally conducts a case upon a "contingent profit" or fee, his payment for services being entirely dependent upon his winning the case.

Contingent Rights Stock. An English term. This stock shares dividends on the "ordinary stock" (see "Preferred Shares") after the latter has received a certain rate.

Continuation Day. The first of the "Fortnightly Settlingdays. (See that subject and also "Contango Day.") For many securities the second "settling-day " is the "continuation day."

Continued Bond. Same as "extended bond."

Contract Grade. Chicago Board of Trade term indicating the grade which is required on contracts for future delivery. Control. See "Controlling Interest." Controller. See "Comptroller."

Controlling Interest. When one person, or a number together for their mutual benefit, obtain, by ownership or by proxies (see "Proxy "), their right to cast the votes for a majority of the shares of stock in any corporation, such person or persons are said to have a "controlling interest." Conv. Convertible.

Convertible Bond. A bond, which, at the option of the holder, is convertible, under certain conditions, into other securities issued, usually, by the same corporation

As a rule bonds are convertible into stock. One of the best illustrations is a "convertible bond" which was issued in 1901 by the United Fruit Company. These bonds became convertible into the stock of the company at par, at the option of the holder, after Jan. 1, 1903. The bonds bear 5% interest. The stock of the company, at this time of writing, pays a greater rate of interest than the bonds, and is quoted at a price above par. The result is that the bonds, which in themselves would not sell at a much higher price than their face value were it not for the convertible feature, follow very nearly the price of the stock. It would not necessarily follow, however, that if the stock fell below its face value, the bonds would do likewise.

A great many holders of the bonds have taken advantage of the convertible feature and have exchanged the same for company's stock, thus getting a greater rate of interest.

The attractive feature about these bonds to the original purchaser was that they were considered much safer than the stock, and at the time of issue the stock was not selling above its face value. The purchaser of the bonds, therefore, felt reasonably secure of his money in any event; his interest would rank ahead of dividends. But in case the stock should advance in price, he would then reap a profit from the convertible privilege; in other words, he probably had nothing to lose, and, possibly, much to gain by buying such a security. It is the lottery or speculative feature which gives such investments their popularity. This plan of financiering caters to the speculative spirit and is scarcely a high-class method. In case the stock is "converted" the annual interest charge becomes contingent instead of fixed.

Convertible Collateral Trust Bonds. This issue is endowed with practically the same features as a "collateral trust bond," to which subject the reader is referred. The main difference, however, is that the former is secured by collaterals, which may be exchanged from time to time for other collaterals, with the consent, for instance, of the trustee. The convertible feature is not a bad one as it sometimes enables the issuing company to take advantage of an increase

in the market value of possibly all or part of the collateral securities, and paying off part, or possibly all, of the issue, the proviso almost always being inserted that the issuing company may redeem the issue in part or entire under such conditions. Should none of the issue be paid off, or a proportionate amount not paid off to offset the collaterals withdrawn, the trustee would demand other satisfactory collaterals to fill the deficiency. There are other similar good features of minor note attached to the convertible bond, and, upon the whole, as between the two issues, the convertible one is the more preferable, other conditions being equal.

Convertible Debenture. The only difference between a "convertible debenture" and a "convertible bond" is as to the way the loan is secured, which will be clearly understood by turning to the subject " Debenture Bond." A good illustration of such an issue is that of the American Telephone and Telegraph Co., " Convertible Debenture" 4's, to which there is attached the lottery feature of convertibility into stock after three years and before the expiration of twelve years at stipulated prices.

Convertible Income Bonds. See "Income Bonds."

Convertible Paper Money. Paper money which the holder has the right to present at any time for redemption at a parity in metallic money. This is distinguished from "inconvertible paper money," which subject see.

Convertibles. Securities which, at the option of the holder, are convertible, under certain conditions, into some other security, issued, usually, by the same corporation. For examples see "Convertible Bond," "Convertible Collateral Trust Bonds," and "Convertible Debenture."

Convt. Convertible.

Cooked. A matter or account has been "cooked" when purposely made to deceive.

Co-operative Banks. For all practical purposes these are about the same as "building and loan associations," to which refer. One conspicuous difference exists, however, namely: the right of a member of the former to withdraw the accumulations upon his unpledged shares, by giving due notice, say thirty days, and upon certain other conditions.

Copper (or Coppers). "Copper" is used in various ways; with an "s" in reference to shares of stock of the various copper companies, and without the "s" to indicate the product of the mine. "Copper the metal" is a common expression as distinguished from copper the stock."

The United States dominates the copper industry of the

world. In 1855 our output was only about 3,000 tons, and ten years earlier we produced the insignificant amount of 100 tons. Our 1905 output was approximately 402,637 tons, the money value of which, based on an average price of 15.70 cents per pound, was $144,599,380. The estimated production for 1906 was about 413,834 tons. Including what we have from adjoining countries, north and south, we handle about two-thirds of the world's production.

Our pennies are often referred to as coppers."

Copper a Tip. Acting contrary to the " tip," or information received.

Copper Coins. See "Cent."

Copper Range. Copper Range Consolidated Co.

Coppers. All stocks of the copper mining companies. Also our pennies.

Copper Warrants. A term used in England to denote receipts for copper placed in the public storehouses. We have nothing corresponding to these receipts in this country. Copper warrants are sometimes sold and delivered at the sale, and the copper is taken out of store and used, but it is a very common practice for contracts to be made for the future sale or delivery of these warrants. Sometimes a contract for future delivery is bought by a manufacturer, who has taken an order for manufactured goods, also for future delivery, and for which he has yet to supply himself with refined copper. At times " copper warrants are sold by others engaged in trade to protect themselves in a like manner. They are also often bought and sold in mere speculation.

Corn. This is explained under "Grain," except that the trading unit for future delivery is 5,000 bushel lots and the margin about 3 cents per bushel, the commission being the same as on other grains.

Corner. A control of a commodity or security for the purpose of raising prices. A corner in wheat occurs when one person, or a group, secretly buys practically all the wheat in the market, and others, who have made contracts to deliver wheat on the supposition that it could be bought in time to comply with their contracts, and not knowing of the secret buying for control, suddenly find that in order to meet their agreements they are obliged to pay such prices as those in control demand. A witness in court once described a corner a . . combination to prevent people short of stocks from buying them."

as

"Corners" have often proved dangerous to those attempt

1 Statistics from here on furnished by D. Houston & Co., metal brokers, New York City. The weights are long tons of 2,240 pounds each.