The Washington herald., 1912-06-02
BROKERS ADVISING
CUSTOMERST WAIT
Spectator Who Buys on Tip Being
Eliminated and Crops and Poll
tics Are Being Studied.
By BARRON FINANCIAL SERVICE

BY BARRON FINANCIAL SERVICE
New York, June I-Important changes
of sentiment among stock purchasers
seems to have eliminated the speculator
who buys on tips or because big interest
is moving a stock, and more attention is
being given to the appeal OF values and
underlying conditions Brokerage houses
have advised their customers to await
crop development and a more settled
political outlook. number OF the larger
operators in the stock market have taken
their vacations or will this month, In
anticipation of a season Of great activ-
ity. II present crop and business pros
poets are maintained, there viii be a
great demand for stocks during the sum-
mer and fall The first definite crop
news is that the hay crop will be enor-
nous and that pastures are in excellent
condition.
This means beef. butter, and milk. and
other important items in the country's
wealth should be abundant and cheap.
Other forage crops give promise Of enor-
nous production. While there has been
a falling on in demands for money for
stock loans, there has been tremendous
increase in the demand for money for
commercial interests, a large part OF It
for the West, where business has been
greatly stimulated by the improvement
IN the crop outlook. Business activity
in the East, too, continues to increase,
and Industrial railroad, agricultural, and
mining conditions all indicate that the
predictions OF men like Daniel Reid and
Judge Lovett that prosperity is at hand
will be fulfilled.
Steel shows Increase.
The United States Steel Corporations
untitled tonnage figures for May should
show an increase Of about 10000 tons
which, while II is smaller than for April
is really highly satisfactory, as ship
ments have been at an unprecedented
rate. Not only will the current quar-
ter's earnings be increased by the
heavier shipments, but considerable
business that was booked months ago
at very low prices is now out Of the
way, and the corporation will soon be
able TO work on contracts booked at
higher prices. Production during May
was at IS per cent of the total capacity
of the plants and mills, which is about
as high a rate as can be maintained.
Business taken in during the month
averaged about $1,000 tons a day, or at
the rate of I5,5OO.OOO tons a year, while
deliveries were at the rate Of about 45,-
900 tons a day. During April, deliveries
averaged about IS. 900 tons day, so that
earnings, even IL prices for the goods
delivered were the same, should be 1000
tons a day times the profit per ton
greater than in April. This should mean
at least S1,25O.OOO higher net earnings for
May than April
Deliver Wabash Certificates.
Receivers Of the Wabash Railroad
SO 100000 receivers certificates to bank
ers. There are now $4,000 receivers
certificates outstanding and another ST.
CO,000 worth will be sold on July 1 and
the same amount on August ]. Be-
sides the amount mentioned, the court
authorized an extra S,5OO,0O0, and after
the August issue the entire 81, 500 900
will be outstanding Extensive improve
ments now going on will continue to in
terfere with traffic until about next
January, when earnings of the property |
are expected to show a large increase.
New equipment and motive power have
cost g. 900, and it is now proposed |
that a locomotive repair shop be con- |
structed at the cost of 100000 even |
though the issuance of more receivers |
certificates would then be necessary. |
There is already a complete car repair |
ing shop
Harry Content and Shearson HammiIl |
& Co. have again turned heavy sellers of
Steel common, which will recall their |
heavy selling several months ago when |
Steel was under considerable pressure
and suffered a heavy decline. Both are |
representatives Of inside interests, and |
the present selling is not understood, as |
tine current quarters earnings are ex- |
pected to make up for the losses Of the |
first quarter.
The meeting of the International Agri- |
cultural Corporation to authorize the is |
suance Of S3O,OOO,OOG first mortgage and |
collateral trust 5 per cent twenty year |
sinking fund bonds has been called for |
June Z. The floating debt and present de- |
velOpment work will be provided for by |
the immediate sale Of S13,OOO,0OO of these |
bonds, and the balance will be held in /
the treasury for future needs