The Washington herald., 1912-06-21
BULLSH HAVE INNING
IN LIS1LESS CAME
Can Common Shows Strength Under
the Leadership of D. G.
Reid.
STREET VIEWED BY EXPERT
d. RARRoN sERVICE.

By BARRON SERVICE.
New Yorkf June 2O.-After a weak
opening, the market gradually strength
ened, although it was very narrow. The
strength Of Can common attracted at
tention and It was ascribed to the leader
ship Of Daniel G. Reid who has post
poned his trip to Europe. Bull tips on
Can were circulated freely, including one
to the effect that the newly-undertaken
cash register business would prove
great earning power. The Wabash stocks
failed to drop any lower, and IL was
rumored that large interests bought both
the common and the preferred when II
was reaching toward the bottom and
would hold the stock, after paying the
$40 per share assessments, for future de-
velopments Daniel ReId's bullish &C
tivities also extended to another OF his
special ties, National Biscuit. The bears
were the only ones talking politics, and
their arguments were not listened to. The
market was all for politics on the hrst
three days Of the week, but gave some
attention to business to-day. Texas Com
pany made another new high record for
the year upon the announcement that
Charles W. Gates would devote all OF his
time 10 the upbuilding of the property Of
his father, the late John W. Gates.
Strength in Amalgamated was followed
by a reaction on profit taking.
The per cent dividend by the Inter
borough Rapid Transit Company, most OF
which goes to the Interborough-M Metro
politan Company, is not likely to be fol-
lowed by an extra disbursement on the
preferred stock Of the latter, according to
officials of the Metropolitan. The Rapid
Transit Subway Construction Company,
who's payment to the Interborough made
the latter's dividend possible, will not
20 out OF existence as the 5 per cent
disbursement was not all OF its surplus
profits
The Brooklyn Rapid Transit Company's
new financing plans for funds for new
subways resulted in the sale to-day Of
$40, 10000 siX-year 5 per cent notes to
banking syndicate headed by Kuhn, Loeb
and Company, the Central Trust Com
pany. and Kidder Peabody and Company.
The notes are secured by a like amount
of first mortgage sinking fund per cent
bonds Of the newly formed subway com
pany and additionally secured by
pledge of $l0,OCO,OO Brooklyn Rapid Tran
sit convertible 4 per cent refundinS
bonds. The notes are convertible into
first mortgage bonds at the option of
the holder until 1916. The new issue is
part Of one for $6OOOO,O 900. authorized for
issuance July l, 1912. The balance will
be reserved for sale when needed. The
syndicate is offering new bonds at 96.65.
Experts of the road have made an esti-
mate of the earnings after the new sub
ways are completed, and their figures
show that in 1917 Brooklyn Rapid Transit
will make S96 600 net: in 1920, $l2 100, 900
net, and in 1926, S16150,OO0 net. There
will not be any public Offering of the
notes by the syndicate, but there has
been a heavy demand for membership
in it. and members Of the three heads
of the syndicate state that the entire
issue will be shortly disposed Of and dis
trihuted.
The Ohio Copper Company reorganiza-
ton is the first step in the plan to re-
organize the United Copper Company, to
which the Ohio is subsidiary. Ohio
stockholders will vote on June @ on the
proposition to form a new company capi-
talized at SS,0OO,OO0, to acquire the prop
erty Of the present company. subject TO
a S1.25O,OOO bond issue. Shareholders will
be granted the right to subscribe, share
for share, to the new company, upon the
Payments Of 81 a share and the sur
render Of their present holdings. The
announcement of this plan to-day was
followed by a big drop in the price Of
the stock. Stock in the new company
rot taken by shareholders will be sub
scribed to at SIS share by under
writer's.
The situation in London has improved
sufficiently TO allow the taking Of a
third Of the 100000 Canadian Northern
bonds, offered there at IS, the balance
going to underwriters. Recently several
Canadian security issues went almost
entirely to the underwriters, as the mar
ket there was glutted with them. The
Improvement in the strength Of the
Bank Of England, with the proportion of
reserve to liability above the average
for the last ten years, for the first time
in months has been the main cause for
the improvement in English money con-
ditions
The declaration of a per cent dividend
for the half year by Hooking Valley di-
rectors was taken as an indication that
the annual rate had been raised from
to s per cent, but a member OF the
board states that per cent was de-
clared to make the total for this year
Z per cent. Semi-annual dividends, IT
was stated, will be at 3 1-2 per cent for
the present following the next declara-
ton.
Net earnings Of the Central Leather
Company, last year near the vanishing
point, have improved tremendously. and
should equal $780, 900 available for divi-
dends after charges for the six months
to June 30. This is almost the full per
cent required for dividends for a year
on the SS3. 5000 preferred stock. For the
same six months in 1911 there was a de-
felt before payment Of the $5O2,0 inter
est on the $39, ,626 900 bonded debt. The
reason for the improvement is an enor-
nous demand for leather at better prices
than prevailed in 1911. II the second half
year is as good as the first, 1912 earnings
should not only pay the Z per cent divi-
dends on the preferred, but make up
most Of the S2.O35,74 taken from surplus
TO pay the 1911 dividends.
Ohicials of the Pennsylvania Railroad
state that they have not planned new f.
nancing, despite current reports to that
effect, and that a considerable part of
the S4l, 900. 900 realized by the last stock
sale IS still on hand. The only need for
funds this year outside of working capital
VIII be TO refund 100000 L. per cent
convertible bonds falling due in Novem-
Der.