The Washington herald., 1912-06-23
POLITICS AFFECT
STOCK MARKET
oPsrsOrs Become Bearish, Fearing
Result Of Nomination Of
Mr.. Taft.
DAYS TRADING WAS DULL
Rr RARRoN SERVICE.

New York, June 22-Traders talked
politics during the short session to-day,
and became bearish as they talked, al
though trading was very duh. The con-
sensus OF stock market opinion was that
Taft could not be elected and that q
compromise candidate might have been
better, cOneeding long before any pos
sibility Of definite news was received that
Mr.. Taft would get the nomination. The
pessimism, however, failed to bring out
much stock which saved prices from de-
clines. The tip was freely spread that
Taft's nomination would be followed by
a weak market during the next few
weeks. National Biscuit was one OF
the weakest issues, declining as the result
OF the incorporation Of the Ward Bread
Company with SSO,OOO.OOO capital under the
name OF the Ward Baking Company TO
engage in the manufacture Of crackers
and other goods now made by the Ma
tional. Southern Railroad shares were
firm and continued the small advances OF
Friday. General Electric was strong
upon rumors Of valuable rights accruing
TO stockholders to be announced within
a few days. a number Of smaller spe-
cialtiss showed strength, but little ac-
tiVity. Standard issues were unchanged
or fractiOnally weaker.
Vice President Spence, director OF traf-
fc OF the Hartman system, after a trip
through the West. says that while there
is optimism for the future. the present
business situation there is not satisfac-
tory The crop outlook, he found, was
excellent with prospects Of the biggest
harvest in years.
J. P Morgan & Co. purchased all Of the
$4,000 ) per cent note issue of the Erie
Railroad.
The United States Motor Company cur
EreN rn-,H H~h
there are current liabilities of S, 100000,
leaving S,5O0,OOO surplus. Against this
surplus there are S5OO0.OO0 debentures,
leaving a clear balance Of 81 500 900 avail
able for immediate use. To this there
could be ADDED Ss.OO0.O0O appraised prop
erty value, making a total Of SO a share
book value for the preferred stock. In
view Of this, the recent drop in the
shares Of the company is all the more
unexplained. The stock only a week past
was at about for the preferred and no
bid at all for the common. The COM
pauy had paper falling due at the time
amounting to only S75O.OOO, and because
cash was not Immediately available,
asked, and was granted, a ninety days
extension on these notes. Those in
touch with the company's affairs state
that the necessary funds and $1,000 N''
cash surplus will be available through
liquidation OF inventories by the time
the extension expires. The details Of
y the temporary difficulties of the COM
N9auy. proving far under what rumOr had
Indicated, when made public resulted in
aNgreat recovery IN the market value Of
tina shares.
The National Carbon Companys earn
inEs so far this year have been at the
rate of S.lOOO0O a year as compared
with S93l 900 net in 1911
Disbursements in cash to stockholders
uf the former Standard OIL Company OF
New Jersey subsidiaries for the first
SIX months Of 1912 aggregate 81, ,611, ,s2s.
The cash payments fer the same period
iE 1911 by the "On Trust" were SO, ,6Ol. .211.
However, the stockholders Of the subsid-
iaries have received stock dividends and
rights to subscribe to stock at par. hav-
ing a total market value Of nearly So
COJ.0OO Only nineteen Of the thirty-fOur
companies have given either rights or
dividends so far this year, but a number
Ct them have announced that disburse-
ments will start as soon as they are sure
Of their earning power as independent
companies. Another consideration that
must be given in the comparison lies in
the fact that the "On Trust dividends
for the first half year comprised 90 per
cent Of the total annual disbursements.