The Washington times., 1912-04-21
WALL STREET BUSINESS LESSENED
BY LAST WEEKS GREAT TRAGEDY
Weakness Stocks ndoon Checks
Boom-No Serious Decline Values Which Fuuated With
Marrow Rmge-Nloney Easier
by GRANT DATER.
Special Financial Publications

are attracted to doubtful shares, be-
cause, for the moment they are gal
as though a market was getting into
dangerous water when a non-dividend
paying stock like Bethlehem Steel pre-
ferred can be pushed up II points to 70
dividend paying stock like United States
common sells around 20.
Can Common and Wireless
1t is severe test to ones credulity
also to see American Can common sell
ing around 35, paying no dividends and
unlikely to pay dividends for many
years to come. for the stock amounting
to $H.000.0OO is subordinate to the pre-
ferred stock issue of like $4,000, 900.
on which there is practically SIS. ,0OC
back dividends to clear up, before the
common stock stands any chance OF
dividends whatever. OF course, some.
one Is selling Can common to the min
MES, who are buying II, and when these
latter again recover their senses the
issue will collapse In the same way that
United States Leather did in similar
market dozen years ago. AS gam
bling counter Can common might justify
quotation from to ], but much above
that price Is absurd.
But after all, 1t remained for the curl
market to contribute, this week, the
most striking example of this specia
form of lunacy, that any market has
seen In late years. This was in the
shares of the Marconi, Wireless Com
pany of America. But few years age
its capital was scaled from $6,0i4, 800 e
N,5l1, 200, through the reduction of the
par value OF the shares from 500 tC
SIS, and these shares sold at 81. Recent
developments have, no doubt, improved
the company's prospects and in con
nection with certain plans, the author
lied stock has been increased to $4,000,
/ 900. The par value Is reduced to IS. eacl
holder of the old stock receiving five
| shares of new and the privilege of sub
scribing to a like amount at par. Th'
| old SIS shares sold last week for so
they were rushed up and today touched
$3.50: then they broke $l1O. The new
$1S, or equivalent to $50 per cent before
| the new capital is paid in.
Easier Money Market.
or course this is sheer idiocy, IL 4
does not conceal something worse. sucl
| as a tricking of London buyers. 1
seems wholly likely as "A result, tina
| there may follow another scandal IL
| Wireless Company shares. from which
| unfortunately, these enterprises hav'
| never been wholly free from the begin
ming 1t may be said that the American
| Company has shown such little vitalit!
that its net earnings for the year 19l
| were but $l4,325 out of gross earning
OF only slo5,5l5, and the balance t.
profit and loss after all deductions wa!
| but N.72l, After such an exhibition a
this in an open market, Is there an:
| wonder that the "get-rich-quick' mel
| can extract 800, 900, 900 annually from
| the American public on bogus shares?
! Easier tendencies for both time ant
| call funds were a feature of the none.
market of the week, but quotations 70
| time accommodations and mercantil
| paper underwent no change and tn
softer tone was due more to an alb
| sence of borrowing demand or in
| quiry than anything else. Call none!
did not go above 3k per cent as agains
q maximum of per cent in the previou
| week. and 2% per cent was the rulinl
rate on Friday. The bank statement o
the day disclosed that the process o
shifting loans and deposits was still
feature. but to a lessened extent thai
was shown in the two preceding state
ments. In the showing of actual condi
tions loans decreased s., ,263, 900 and de
| posits $6, ,15S, 900. There was gain o
s.. 959 900 in cash holdings and of 1854, 90
in surplus reserve.