The Washington herald., 1912-06-19
STOCKS TAKE BACK
SEAT FOR POLITICS
Bottom Drops Out of Wabash Com
mon When Bonds Of the
Road Remains Strong.
MARKET GENERALLY STRONG
RARoN FINANcIAL sERvIcE.


BARON FINANCIAL SERVICE.
New York. June 1s.-The stock mar
ket stood stiu during most Of the day
while the brokers practically aban-
doned all but the most necessary busi-
ness TO watch political developments.
The weakness OF the wabash common
stock, which dropped TO around 5, the
lowest point since March, 1897, at
traded attention. while the bonds Of
that road were strong. both due to the
details OF the proposed reorganization
plan. The Sugar stocks were lower,
following the report Of plans for new
sugar war between the Arbuckles and
the American Sugar Refining Com
pany. Bearish Fumors regarding the
anthracite investigation affected Read
ing and Lehigh Valley for a short
time, but they later became steady. A
number of bulls circulated a story to
the effect that Mr.. Roosevelt advo-
Gated the repeal Of the Sherman law,
but the mention OF that Candidate for
nomination was also used in bear
stories. Amalgamated was strong as
a result OF the improved statistical po-
sitiou OF copper metal here and in Lon
don. Texas Company was one OF the
strongest features on the reiteration
OF old rumors OF increased dividends
which have not been heard since the
directors failed to take such action at
their last meeting early this month.
The stock made a new high record for
the year when II sold over ia. and
even II there is not any increase in
Texas Company dividends At the next
meeting. its earnings are the best. in
it's history.
The Chicago and Alton will spend s1o,-
10000 in the near future and will put
its property in thoroughly up-to-date
condition. New York bankers have al
ready loaned Sl500,OO0 and will advance
the balance when called on TO do so.
The future earnings OF the road are
practically assured since Union Pacific
has bought large interests in Alton. and
viii swing considerable trafic 10 II. The
fiscal year ending June 90 however, will
not make a good showing with earnings
largely depleted from heavy carrying
charges.
Through the sale OF s1o,OOo.oOO Cumber-
land Telephone stock TO the Southern
Bell Telephone Company by the Amer
lean Telephone ,snd Telegraph Company.
q considerable change Of territory for
the subsidiary companies Of the Amer
lean company took place. The New
York Telephone Company bought prop
critics in Virginia and West Virginia
from the Southern company with the
proceeds Of a S20O00,oo0 bond sale. This
made the New York company the
largest operating telephone company in
the world. With the proceeds OF the
sale, the Southern company bought the
Cumberland stock. The entire United
States is now under eight great subsi-
diary companies under the plan OF Presi-
dent Vail Of the American company.
- The only independent companies are the
Providence Southern New England. and
Cincinnati Suburban Bell Telephone
Companies.
Earnings Of the Virginia-Carolina
Chemical Company for the fiscal year
ending May 81 were about 3.5 per cent
on the common stock, as compared with
81 per cent last year. The Southern
Cotton on deficit Of Ss26,Ss4 hurt the last
year earnings, and while Cotton OH earn
ings have been good this year, the fer
tilizer end has been poor.
Great Northern's gross will be at least
e5,000,OC0 greater by June 30 than for the
same period In 1911.
The CrucIbIe Steel Company earnings
for the first nine months of its current
fiscal year are s, 2,SS5,s73 equal TO s.5 per
cent on the S20OO0,00O preferred stock.
Dividends on the preferred are at the
rate Of Z per cent, so IL earnings do not
fail on, there should be per cent avail
able for back cumulative dividends.
As there are notes for 100000 coming
due soon, there is. little likelihood that
the American Locomotive Company will
resume common dividends this year, even
though earnings have been at the rate
Of about 10 per cent available for divi-
dends on the IS, 10000 common stock for
the year ending June 30. After the notes
are retired, however, with the great
amount Of business now on the books,
there will probably again be heard the
report that dividends will be resumed.
Disappointing earnings for the current
year leave no chance for reorganization
OF the Buffalo and Susquehanna proper
ties soon. The decrease IN net earnings
for the ten months ended April 80 was
SIS, SO. as compared with the same period
IN 1911
The first dividend on the new do,ooo-
Oo0 capital stock Of the Bankers Trust
Company Of New York was declared at
per cent but the directors did not
state for what period OF even II it was
an extra dividend.
Industrials have been the strongest and
most active OF all stocks for several
months, and have practically displaced
railroads for investment purposes with
the latest class OF buyers. Poor earn
ings by railroads and the quicker re-
sponse to the present optimistic tendency
by industrisls has been the cause Of
this. r
weekly Gross earnings of sthirty-fve
railroads for the first week OF June show
increases aggregattnE SSl3,61s as COM
pared with the same week In 1911.
The report that In reorganization the
Wabash common and preferred stock
would be assessed $40 q share almost
took the bottom out Of those issues,
which declined, the common going to the
lowest point in fifteen year,, while the
bonds. which would greatly beneft under
the plan, advanced. It Is further planned
to exchange the bonds for new bonds and
new preferred stock under reorganiza-
ton II the assessments are made, there
VIII be provided Ss6.sso.o 900 to pay OF re-
ceivers certificates, refund notes, and
pay for future working needs until earn
ings should be SUFFICIENT TO provide for
current needs
CURB MARKET.