The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-05
WALL STREET NOTES
Steel Common Dividend Nav
Be Increased i'll April.
COMPANY'S BUSINESS Is HUGE
Judge Gary Sees No CIOud on the In
dustriaI Horizon - Igamated
Copper May BE Placed on 10 Per
Cent Basis at Next Quarterly Meet
inE-NOtes and Comment.

New York, Jan. 4.-CIose observers Of
the trading say there is strong evidence
Of accumulation of United States Steel
common, presumably based on the prob
ability that the earnings for the last
quarter. when published on January -.
Will show up larger than those of any
corresponding period in the history of the
corporation.
But while it is expected that the earn
ings viii make a very fine showing. there
is little anticipation or an increase in the
dividend at this period. The forthcom-
ing declaration viii make the fourth
quarterly distribution since dividends
were resumed last summer, at that time
having been made retroactive to cover
the April quarter. and the belief is al
most general that the rate then adopted
viii be maintained until d full years pay
mcnts have been made at the per cent
rate. In most quarters the belief is en-
tertained that when an increase is voted
In April the rate will be made per cent,
although there are a few enthusiasts who
say it Will be per cent
Judge Gary, chairman Of the executive
committee of the Steel Corporation, ac-
cording TO dispatch received from Chi
cago by one of the Wall street news
agencies. said of the outlook for the steel
trade in the coming year.
There is no cloud on the Industrial
horizon. The future looks as bright as il
possibly could. and nothing stands in the
way Of progress. The position Of the
United States Steel Corporation is an in
dication Of this. II has more than IT can
do. Orders are booked for months ahead.
IL never was 50 prosperous IN its his
tory. We look for a largely increased
business over last year In fact, this is
already guaranteed.
As the business Of the United States
grows this organization must expand 10
keep pace with H. There is not city
or town ga the country that is not grow
ing. Every railroad company is extend
ing its lines and every branch q bust
ness and manufacture is fiourishing"
Amalgamated Copper was placed upon
an per cent basis last October by the
declaration of a dividend of TX and one
half of I per cent for the quarter, Il is
now expected in many quarters that the
extra viii be doubled at the time Of the
next declaration on January L. making
the rate 10 all intents and purposes ~
per cent for the quarter. or the equivalent
Of 10 per cent d year. There is little ques-
tion as 70 the ability Of the company TO
pay at this rate under prevailing condi-
tons In the trade, even after allowing the
concerns to retain a large pro-
portion of their surplus earnings as pro-
lection against any contingencies that
might possibly arise.
Judging from the earnings Of Canadian
Pacific for the last week of December, the
road has dug itself out Of the snow that
covered its western end earlier in the
month.
Earnings Of the Southern Pacific for the
month Of November show an increase IN
net Of Sl,2l9.00e. and for the four months
since the beginning Of the fiscal year the
road has made gain in net earnings OF
$l1S2. 636 over the corresponding period last
year. This Is certainly wonderful prog
ress, affOrding abundant testimony TO the
judiciOus manner In which the earnings
that for years were withheld from stock
holders have been expended to Increase
the efficiency of the road rs a tr3nspoTta-
ton machine. The remarkable character
Of the Southern Pacific statement is
brought out by comparison with the Union
Pacific report for the months increase Of
net, shown by the former to be slightly
more than three times as great as that
{ bgrs-ra hv~T ~ .,Tr
much as Union Pacific gained in the full
four months period.
The market could not resist the inhu-
ence Of such a remarkable statement as
that issued by the Southern Pacific, for
while the Union Pacific statement was
by no means as brilliant, the bulls
thought II was good enough to be made
the basis Of a stock movement. in that
Union Pacific is directly benefited by the
Of Southern Pacific, through
the ownership Of S1S,G000O preferred
ard 100000 common stock IN the latter
road
The usual short interests that for sew
craI days had been encouraged came in
play, and had really much more TO 10
with the rise than the earnings, at least
so far as Union Pacific was concerned.
Some people often we'll informed. and
always keenly observant, say there is
steady accumulation OF Southern Pacific,
this stock receiving much more attention
Of that kind at present than the stock Of
the controlling company.
Wide publicity was given to a report
that II. c. Frick, having joined the
board, would soon retire
from the Reading board, Of which he IS
a member: that he had sold his Reading
stock to the First National Bank in
terests, SO that there might be no ground
for any contention that the
State law prohibiting the merging of
parallel and competing lines was violated
in letter or spirit, or that his interest In
both companies represented a combina-
ton in restraint of trade
Mr.. Frick denied that he had resigned
from the Reading board. That part of the
story, he said. was not correct, but he
declined to go into the other points Of
the rumor, as might naturally be ex-
pected. Men like Mr.. Prick are apt TO
think that their ownership in particular
stocks is their own private business.
They realize that the public would like
to know what stocks they are interested
In, and to what extent, but they decline
to crafty such curiosity, feeling that
Wall street is not the best place to prac-
tee philanthropy.
The announcement that the United /
States Metals Selling Company, which !