The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-07-14
ST. PAUL BREAKS
FAR BELOW PAR
Goes Down for First Time Since
1907 Panic-Poor Earning
Rumors Blamed.
MARKET APPEARS STRONGER
By BARRON SERVICE.

New York. July 1s.-St. Paul broke be-
low par to-day for the first time since
the 1907 panic when II was down to a
little over &c. The break was because
of adverse rumors to future earnings and
the poor earnings of the past year. This
issue sold over los in 1903, and it has held
up well since, despite decreasing earnings.
Stocks of other roads near the ST. Paul
territory were not affected by the break
in this issue. Back of 1907, st. Paul was
frequently a market leader, touching l99
in 1906. American Tobacco, as has been
usual after each of its recent upward
spurts. suffered a decline because of
profit taking. Amalgamated, Steel. and
Reading advanced fractionally Union
Pacific was early put under pressure, but
when this was removed, 1t came up
again.
While the market as a whole was
stronger to-day than during most OF
the week, there was very little activity
in the rally. Hence, very few of the
traders covered their shorts. the ma
jority aohering to their position on the
bear side in expectation of lower prices
next week. Bull arguments that the
market was already oversold were scoffed
st, as the bears contended that the SELL
ing was of the best kind. Predictions
were freely circulated that Steel COM
lltSI Will ocNllHc meat wen ot-
cause of the Forthcoming Stanley report,
but bulls on this issue say that the re-
cent decline was in the shape of dis
counting this report and no matter how
had 1t is an advance can be looked for
in the stock. United States Realty and
Improvement stock touched the highest
poin in three Years on reports of greatly
increased earnings through the renewal
Ct activity in the building trade.
hnn rafa Nt-hi lob rod
in the markets close, was an excellent
one, as compared with the week before.
and showed the ability. of the banks to
restore their depleted reserves. From
a deficit of over 5000 900 the week before,
the Clearing House banks showed a sur
Plus over reserves of more than Sl0,-
10000 This is expected to be as bullish
in its effect on the stock market as the
last weeks statement was bearish.
Merger Falls Through.
The merger of the Southern Iron and
Steel Company and the Alabama ConsoIi-
dated Coal and Iron Company has COM
pletely fallen through owing TO the ap-
pointment of Il receiver for the latter
company, following the default on its
bonds. However, security holders of the
Southern Company may buy in the Ala
bama property and operate it with the
object of securing enough money to re-
organize it, the stock to be held in trust
FOR five years.
Net earnings of the Wabash for the
eleven months ending May II, were si.l2S,-
-, a decrease of nearly s2,OVO,OOU as
compared with the same period the year
before.
The recent decline in United States
Rubber stock was the result OF Iiquida-
ton of the long line or stock taken by
insiders prior to the cutting of the TWEEN
ly per cent stock melon and was also
caustd by large selling of the new stock
issued as a dividend.
One Of the reports that aided American
Can common in advancing, even after
the departure Of its sponsor in its
phenomenal rise from l. to over 81,
Daniel G. Reid, for Europe. was the old
one that the directors had decided to re-
tire the back dividends due on the Gu
mulative preferred through an issue of
new securities and commence dividends
on the common, starting next year
Net earnings of the Western Union for
the fiscal year ended June 30. with June
partly estimated. were s6.9O5.SlS
Net earnings of the Chicago Great
Western for its fiscal year available for
preferred dividends will be equal to
about LIS per cent on the SA,020 400 Of
that class Of stock outstanding. as COM
pared with 1S per cent a year ago.