Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-05-22
STOCKS TAKE A REST
Brokers Complain That Mar
ket Has Gone to Sleep.
REGARDED AS GOOD SIGN
Investors Satisfied With Conditions
and Prevailing Profits.
CLARK DROPS COPPER SHARES
Wall Street People Show Friendly
Attitude Toward Price Making.
Railway Earnings.
REGARDED AS GOOD SIGN
CLARK DROPS COPPER SHARES
BY w. G. Nicholas.


ZION men and brokers say. They always
feel that way wnen the public takes
rest 1t does not follow that because
the public rSSfuses to become excited and
indulge in wild speculation in the mer-
chandise Wall street deals in that the
situation is in the least unhealthy. On
the contrary, the market may be all the
better taking much-needed rest
once in while, and that appears to be
the condition at the present writing
come TO think of it, there is nothing
to get excited about. Railroads and in
dust-ials are going ahead normally. MAX
ing money and paying dividends. Some
of them not able to borrow as much
additional capital as they would like
upon terms that please them. That is
mentioned as a bearish factor
AS a matter of fact it may be all for
the best that they are not able TO eN-
tend themselves as rapidly they would
like. The extensions and improvements
and new things they would like to buy
can be had few weeks or a few months
later, and possibly on better terms.
Meantime the bedrock situation is i'm
proving and the country getting richer
and stronger. The spending OF money
for buriness extension is not always
sign of bullying, buOyant health. 1t may
sometimes mean fever, and always after
fever there is reaction. 1t is an
economic truth that the less money We
spend the more We save, and that great
truth applies as we'll to corporations as
TO individuals, 1t is also true that if
left unchecked there Is very likely to be
overexpansion in business preparation.
Due to Rapid Construction.
This fact finds illustration in the too
rapid construction of iron and steel
plants. melted by the immense profits of
some of the iron companies every concern
in the country has been putting itself
In shape to increase output. The result
ia that today the iron and steel capacity
In fully 33000,0OO tons year, whereas
the record of consumption is less than
S.OOO, 600 tons. and that was three years
ago The mills are putting out product
at the rate of 2S,NOHu tons year and
loud complaints are heard because bust
ness is not coming up to the utmost
limits of capacity.
All in all the stock market is doing very
we'll The swing of prices is narrow.
compa ra lively. and specula tors are find
Ing pickings rather lean. Investors how
ever. are we'll satisfied and it is the in
vestors after all who compose the mar
ket. Prices are averaging to per
cent income return, level that induces
steady absorption of securities by those
who have the money to invest. Naturally,
with these conditions prevailing, the mar
ket tendency will be to harden and it will
be surprising il prices do not work cor
siderably higher unless there should be a
crop calamity some disaster which
cannot be foEpseen. From a stock eX-
change and speculative viewpoint the out
look Is for early improvement.
The volume of sales has become very
small and 1t inevitably happens after a
protracted period of dullness that some
thing occurs to stimulate action. That
something Is now overdue, and We may
look for signs of life before very long.
Unusual Irregularity Noted.
Market students are almost unanimous
in the statement that while the average
Of prices is not high that there is I'M
usual irregularity in many of the stocks
Many instances are pointed out where
securities are out of line, and it is fire.
quently predicted that during the coming
year there will be a very marked re-
adjustment. There are two of the Haw-
ley stocks which are at the moment at
tracing attention-Alton, which pays 4
per cent and sells at Al, and Chesapeake
and Ohio, which has been paying per
cent and is just getting into the ) per
cent. which has been strong around So
Then We have Reading, which is the
greatest speculative favorite on the ex-
change, traded in between 100 and 165
while Pennsylvania and New York Cen
trial. standard issues. are quoted at rela-
lively very much lower figures. Then
We have st. Paul. a 1-per-cent stock,
selling under no. and regarded as being
TOO high at that. In another depart
ment of the market is seen United States
steel. paying per cent and earning
above 10 per cent, traded in around ~
10 81, while Amalgamated Copper pay
ing per cent and earning a deficit,
quoted al around 30. Manifestly this is
market period when investors will be
doing themselves a service by discrim-
mating carefully and going somewhat
INTO the merits OF the stocks before part
ing with their money. Unless indications
are az fault, the present year will wit
ness important declines i'm some of the
specialties, although the general average
may be and probably will work ma
terially higher.
Clark Let's Go Of Copper.
One OF the incidents of the week which,
Tor some reason, has made almost no stir
!" senator w, y. Clark's abandonment OF
montana. Very quietly he has sold out
MS mining interests around Butte 10 the
Ahaisamated copper Company one OF
lts associate organizations He got cash
Tor ms When he made up his mind 10
quit Montana he evidently wanted to
leave nothing behind him that would give
him concern in that part OF the country
re oiu MOI even want bonds or stocks or
something which could he translated into
money. He wanted the money itself
How much he received for his Montana
mines Is not announced. He contented
himself with the mere statement that he
mad been paid his price i'm cash
The transaction is looked upon i'm con.
per mining and copper investment circles
as being highly significant and TO mean
that, in the opinion of one of the most
successful copper miners in the world
that that particular section of the coun.
try has seen its best days. 1t NAV be
safely assumed that when Senator CLARK
sells anything he gets all he thinks il is
worth. and that when he decides TO mar,
with mine there is small margin OF
profit for the other fellow In othe,
words. IL is taken for granted that the
senator is willing to let other people hay,
a monopoly of mining copper that costs
IL cents to produce, and that he will de
vote himself to mines whose produce
stands or J or cents less money The
transaction still more sharply defines IN.
line of battle between high cost produc
ing copper mines and low cost mines
Regarded as Significant.
Incidentally it may be remarked tina
the Coie-Ryan-Rockefelle combina ton
which, virtually controls the copper min
Ing industry of Montana, is buying des
perateIy in other parts of the countr,
where the metal is being produced TO
less money. 1t is clear from the maneu
verings of this great combination tina
n still has strong hopes of being abb
to pull of that big merger and to put il