Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-26
BULLS AND BEARS
Special Dispatch to The Star.

| Special Dispatch to The Star
NEW YORK, July 2a.-There was. as
had been expected. some realizing in the
steel stocks this morning on the favorable
statement of business for the June quarter
| made public yesterday afternoon. This sell
ing undoubtedly afforded a much desired
opportunity to those who went short OF the
steels yesterday on the positive Informal
ton that the June quarter net would not
| exceed S2S,O00OO0 and would probably be as
low as S28OO0O00 to cover commitments
In SO thoroughly professional market
selling on good news is usually a, temporary
controlling factor, but the bullishness on
the steel issues continues undimnished in
important quarters and II would seem like
~ general conditions remaining favorable.
that prices will presently begin to appre-
ciate by way OF discounting the next quar-
ter's showing and the progress in prosperity
which the corporation is making. 1t Is very
difficult to construe the figures given out
yesterday afternoon in any bearish way
and they have generally been accepted as
Of the most favorable import.
There are efforts to make bearish capital
out Of the orders on hand at the end OF
the June quarter 4, S29, 655 tons by showing
that they represent a reduction of about
100000 tons from the business on the books
on March 81 last, but the comparison Is
measure being the untitled orders June
80 in previous years, and in this respect
the tonnage on June 80 last Is record.
Moreover, since the revival early In the
month, following the normal summer lull,
business has increased greatly and good
information Is that orders, untitled. have
piled up rapidly
With regard to the earnings Of the cor
poratiOns they bear out estimates made a
week or so ago, that in the first six months
of the year the corporation earned all IN
terest and sinking fund charges, the fun
preferred dividend for the year and an
amount more than sufficient for ordinary
charges for depreciation, replacement and
improvement, and the forecast seems war
ranted that in the next six months the
earnings will be sufficient to show a sur
plus of $30.OO0.OCO after extraordinary
charges for maintenance and the like. even
supposing these amounts to be S4O,000.0 900.
June net earnings were SIC. 0S5O04, follow
Ing $1,000 49, SO that the steel corpora
tons monthly earnings are apparently well
esta blished on basis considerably exceed
ing $10.CO0,0OO, and growing returns are
likely with the iron and steel industry in
the fiourishing condition that is being noted
daily in authoritative trade reports. Just
now the pressure in those highly profitable
branches of finished material, stees and
structural shapes. is enormous. Contracts
for 10000 tons of rails for domestic ship
ment and 10000 tons for export are under
negotiation at midweek, for example.
The Journal of Commerce says that the
contracts that have been placed this year
by rail mills. other than Alabama and Colo
RADIO companies. are estimated at 100000
tons. with 10000 carried over from last
year, all for domestic shipment. The ex-
port business is estimated at 100 600 to 300
0GO tons. The Tennessee company has an
aggregate business of 10000 tons, and total
orders taken by the Colorado Fuel and Iron
Company are estimated at $50 600 tons, so
that the grand total is 2.S50.O0O tons"
The Georgia Centrars income bonds have
been a profitable specula ton or investment
for those who took hold of them last year.
These bonds like all bonds with specula-
tive features, are likely to grow in favor
as the effect of the great gold imitation is
measured but at the present the bull point
on the Georgia Central issues is the earn
ings that seem to guarantee full distribu-
ton on all three classes. There was great
increase last year and the expansion con-
tinues- Gross revenue for the first three
weeks in the present month, were 500, $50 in
excess of the returns for the corresponding
period of last year.
The demand for structural shapes con-
tinues active and urgent. several, orders ag-
gregating about 15O0 tons coming In by
wire yesterday, but some of the structural
mills are turning down business for any
shipment during the next two or three
months.
That the American Locomotive Company
is likely to continue for considerable time
to come its conservative policy of improv-
ing the companys position at the expense
of the patience of the holders of the com
mon stock, who have yet to see an ini-
tial dividend on their shares, Is indicated by
| the automobile plant project at Providence
Last year the company drew on its cash
surplus to buy the Rogers locomotive
works at Paterson. and although the auto
mobile plant Is not likely to involve as
great outlay that. it seems likely to
render further postponement of dvi-
dends inevitable
In branching out into the business of
manufacturing neutrality-suspicious. for
light and heavy trucking. which is the d.
rect purpose Of the new project-the COM
pany has apparently in view. not only the
profits to be had in this as yet new in
dustry, but also to put itself In line to
obtain a share of the business which must
come In the future from the use of motor
cars on railroads for suburban and short
haul freight and passenger traffic. 1t takes
patience on the part of owners of stock In
a corporation that plans SO far ahead to
hold to their present investments on the
prosperity of the future. but patience may
be rewarded.
Pittsburg dispatches say that officers of
the Pittsburg Coal Company. in response
to request made by about 1000 of it's en-
ployes who own stock in the concern to
the extent Of II 222 shares have promised
to issue statement within few days in
regard to the company's affairs. The de-
mand for information by the employees
came as a result of the rumors which have
been in circulation about the company
since the passing of the last dividend.
BRIGHTON BEACH RACES.