The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-07-03
MARKET FAIRLY
ACTIVE ALL DAY
Bull Movement Predicted as Soon
as the Political Situation
Clears.
GENERAL ELECTRIC IS. ROSY
BY BARRON SERVICE.

New York, July 2-There was a recess
sion in the price OF some OF the high
priced specialties like Texas Company
and American Tobacco to-day, but they
failed to bring out any stock which
strengthened and broadened the rest Of
the market. There was a fair amount
Of activity throughout the list, and
traders predicted that there will be ac-
tivtty and bull movements as soon as the
Baltimore convention is through. The
traction stocks affected by the favorable
decision Of the courts regarding the new
suhways were strong, Brooklyn Rapid
Transit going to the highest point
reached since 1885, at which time the
stock, although not paying dividends
then on Gov. Flowers bull campaign
went as high as 157. Great Northern
Ore took strength as a result Of favor
able things said about the properties by
James J. Hill in his farewell letter.
Steel common touched the highest point
in the present movement, the buying at
tracing attention because Of the promi-
nent interests taking part in it. National
Lead was a prominent speciality figuring
in a bull movement because Of the in
creased demand for paints and the con-
sequent greater earnings of the com
pany Central Leather was taken in
to the highest point in several months.
General Electric continued its advance
on the prospects of a melon cutting"
This issue scored a new high record.
Money is so easy that even the pay
ments of $3.50, 900. 900 dividends and in
terest disbursements by New York
banks and corporations on July / has
not had any effect and call money was
still under per cent after these pay
ments. There was a slight frming for
time money to AZ per cent for six
months money. but there was not any
new demand and nothing over per
cent bid. There is no demand at all
for other time money of two to six
months maturities. Borrowers seem
confident that they will be able to ill
their wants in the call money market
for months ahead. A decline in for
eign exchange is looked for, as the
rates are very high for this time Of
year. being exactly l cent to the pound
sterling higher than at this time I'm
1871. The last shipment of $4,000. 900
to Paris had no effect and found the
banks here Indifferent to the movement
of gold.
Rumors that an extra dividend Of %
per cent will be paid on General Electric
stock in the near future have given way
TO more definite reports that 30 per cent
will be paid, but that the disbursement
will not be made for a long time. There
will probably be at least 100000 added
to surplus in 1872. which would make
that account S34, OOOO 900. equal TO g per
cent per share on the 81, So. 800 capital
stock. The, directors, however, may make
the disbursement in the form Of a stock
dividend so as to leave the cash surplus
within reach for the compauy's use.
Acting President Pierre S. du Pont, Of
the E. I. du Pont de Nemours Powder
Company, states that the governments
financing. but that two new companies
will be formed and 900 assets Of
the old company transferred to them, for
which 900 stock and a like amount
Of per cent bonds will be issued in
payment. This stock will be distributed
to the common shareholders Of the old
company as a dividend and half of the
bonds will be disposed Of by the old COM
pany under the decree. Earnings Of the
new companies are estimated at 10 TO u
per cent available for stock dividends.
The old company will have $1,000 900
assets, and there will be S15.9S9,2 4s pre-
fsrred and SO. 49, S6 common stock out
standing. The three companies will d.
Trust between them. Earnings Of the
old company are estimated by Mr.. DU
Pont as equal to five times the require
ments Of the preferred dividends.
The net and gross for the Southern |
Railway for its fiscal year were the |
greatest in the history Of the road. and
with June estimated will be $50, 4O0, 900 |
gross, an increase of S3,O50.00O, and ST. |
$4,000 net an Increase OF $4,000 over 1911. |
The net will leave S7.I25, 200 surplus avail |
able for dividends, another new record.