Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-13
BULLS AND BEARS

|bULLS ANU btAhA
Special Dispatch to The Star.
NEW YORK. January 13.-Some good
Judges OF the disposition that IS made OF
! the investment funds figure that as q result
OF the insurance upheaval last year q good
deal Of money is going directly into Sc
curfties that would otherwise have gone to
pay insurance premiums.
! -
Farseedng bankers and dealers prepared
some months ago for a big market in spec
uiative bond Issues when they found that
| tight money was not causing any dislodg-
ment OF gih-edged stuff and that, on the
contrary. there was an unsatis1able inquiry
for good honda
Friends of American Locomotive pre-
ferred say that they fail to understand
why the stock does not sell as high az
Smelters or Sugar preferred. If the COM
mon stock. before 1t pays dividend Is
worth its present price. it does seem UNI
reasonable for the preferred to stay at so
| low level relatively 1t Is curious to note
that II the parity which now obtains be-
| tween United States Steel preferred and
Steel common were established between I,o-
connective preferred and common. the pre-
ferred would be selling at 40, which is just
about the figure demanded for 1t by its
friends on Its investment merits.
In good years the company makes fabu-
| ious earnings. and in lean years 1t earns
satisfactory margin above the preferred
dividend requirements. Shelters preferred,
| Of which there Is 100000 600, sells around
80. 1t Is backed up by earnings on the
common stock of about IA per cent Ameri-
| coils
Mr.. Havemeyer says that 1t required very
good management to pay the per cent
dividend on the common. 1t Is said that
the locomotive company is earning at the
rate of % per cent at least on its common
stock in the current fiscal year. It's pre-
| fered is preferred as to asset as we'll as to
| dividends. and stocks with such privileges
are not being issued nowadays
~
| 1t gives Delaware and Hudson stockhold-
| ers a comfortable feeling to learn that the
company has converted some real estate
| into 100000 cash.
A southern iron manufacturer says that
| II the steel corporation is capitalized on a
basis of 81 ton for its ore holdings, Ten
| nessee Coal stock on the same basis is
worth 5000 a. share. with proportionate
valuation for Sloss-S Sheffield and other
southern iron stocks.
What the Importance of a merger of the
leading southern iron and steel companies
would be may be guessed from the fg
ures Of iron ore production. In the last
eight years the Alabama district has
doubled Its output.
Rogers. Brown & Co. in their weekly re-
Port say of the increasing activity In pig
| iron: THE pig iron market Is distinctly
| better than it was a week ago. Buyers
| have begun to realize the fact, which
makers have all along known. that at least
present prices will prevail throughout this
| year. Following last years precedent, con-
sumers thought there would be drop in
| prices after the first Of the year. but this
| has not materialized, and during the past
| week inquiries and sales have been more
numerous than for some time past. Large
| sales of steel-making irons continue, and
| a considerable quantity of foundry iron
| has been sold for delivery well into the last
half Of the year. 1t Is only a question OF
time. and apparently that time is near.
when the expected and necessary buying
movement will start in. Whether or not
| this movement will advance prices remains
| to be seen. but 1t is the hope of conserva-
| tive sellers and buyers that values will re-
main at about the present level"
| x Il
| The Central Foundries Company has ap-
| piled to the New York stock exchange to
| list So, $4,000 of its preferred stock and the
| same amount of common; also So. 49,. 600 of
| the sinking fund per cent debentures
| bonds of 1919.
| From st. Petersburg comes the announce
| ment that the Russian budget shows that
although the stock of gold in the state bank
and abroad at the opening and close of the
| war increased from s531, 600. 600 to $612 Co.,
| 600. the gold circulation In the country at
| the same period decreased s45, coo, 900, while
| the paper increased $224. OOO. 600. The state
ment explains that all the payments in
| Manchuria were in paper. the entire pro-
| ceeds Of the foreign loan being employed
| to pay foreign war obligations and the in
| terest on the public debt. Exclusive of the
| loans being negotiated to balance the bud
| get of 1905, the war resulted in an increase
| of the interest charges to $211, 500, 600 No
details are given of the lump sum of s2O2-
100000 allotted for the liquidation of the
war expenses
Carpenter, Baggot & Co. in their weekly
review say: