The Washington herald., 1912-07-12
BULLS BEGIN To
SHOW ACTIVITY
: Take New Heart, but as Yet Are
Not Doing Much-Liquida-
ton Continues.
AMERICAN CAN STOCK FIRM
AMERICAN CAN STOCK FIRM
By BARRON SERVICE.

New York, July 1.-THE liquidation
which started in just before the close
on Wednesday continued at the opening
and into the afternoon to-day. marked
by occasional bursts of bullish activity.
The tobacco stocks. whose declines did
much 10 unsettle the general list. showed
signs of returning strength to-day, and
with more encouraging view of the
crop, industrial. and business outlook re-
fiected. in traders opinions. the bulls
took new heart. but little action.
There was such confidence in the buy
ing during the morning that the selling
pressure was soon removed, and in the
early afternoon the market turned dull,
with prices showing a slight upward
tendency after the pressure was re-
moved. steel common sold down sharply
for short time, but rallied in the aft
ernoon. The early fi-mness of American
Can common attracted attention, espe-
cially as its sponsor, Daniel G. Reid.
has gone to Europe, but the bulls on
this issue said that Mr.. Reid had not
disposed Of any of his large holdings
before sailing, and that he might take
up another campaign with Can when he
returned. One Of the strongest bear
arguments used to-day was that the,
banks would call loans on Friday and
Saturday morning to make their bank
statement of Saturday as strong as pos
sihle. Illinois Central was strong on
reports of greatly improved earnings.
While there are a number OF reasons
given for the recent selling movement
on the exchange, few of them hold wa
ter" One of the main explanations, how
ever. is that Daniel u. Reid has gone
10 Europe. He has been regarded as the
one influential bull in the market since
Bernard Baruch gave up activity in
stocks to devote his time to Wabash az
fairs Another explanation lies IN the
fact that the market went up when there
was nothing but bad news current dur
ing the early spring, advancing on pros
poets of better things to follow, and now
that some OF the hoped-for events are
materializing, the market is found to
have long since discounted them. 1t is
also argued that this selling movement
is part of plan OF the large interests
to prepare the market for a bTI cam
paign, and that they have been buying
everything that has been onered at low
prices.
To Investigate Wabash.
A committee Of five directors OF the
Missouri! Pacific has been appointed to
look into the Wabash reorganization
plans as affecting the first-named road.
Missouri Pacific owns SIS, 800 Wabash
Securities and under the present reor-
ganization plans of the Wabash, the Mis-
souri, Pacific will have to pay $685., $50
on the stock held. less a cash return on
the bonds held CT 81. iJ6.600 which will
leave s., $50 cash to be raised a stu
pendous feat considering the present con-
Gitton of -Iissouri Pacifics finances. 1t |
may not be considered advisable to raise |
this amount TO protect the investment in |
Wabash stock which he
at the low market price now prevailing |
II the earnings of the United States |
Steel Corporation equal SO. Oo0, 900 a quar- |
ter during the second half year. as pre- |
dicted and expected by the steel trade. |
the corpora ton will not have to do any |
new financing for new construction work |
now under way this year. and If earn
Ings keep good, no new financing should |
be necessary for four years. There |
are no bonds maturing for several years.
Earnings of the Boston and Maine for
he fiscal year closed June so were equal
TO about $40 per share available for
dividends, as compared with -
;ents per share for the 1911 year. Divi-
lends of 81 per share are paid, causing
1 deficit this year OF $50 per share.
The EFFORT of the banks to restore their
depleted reserves for the Saturday state
nent is not expected to be wholly sue
,essful, as there has been a drain for
reasury payments so far this week, but
| large part Will be made up through the
of loans.
The Republic Iron and Steel Company
S now earning between s and per cent
m its preferred stock, but when the
directors meet for dividend action il is
lot expected that they will resume the
disbursements. That action.
however, is looked for in the fall
At the October meeting of the Ameri-
an Beet Sugar Company directors it is
expected by Wall Street that ,
here VIII be an increase in the dividend :
ate on the common from to at least 8
er cent and possibly better.