The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-04-20
WALL STREET GOSSIP

Well Informed sources are understood
to feel that 80 long as the money situa-
ton continues to improve the bear ele-
ment will have no difficulty in forcing
important declines.
A prominent operator considers the
floating supply to be very limited, when
stocks like Pennsylvania, New York
Central, and Union Pacific loan below
the money rate afterSa day or two Of
reactionary tendencies.
Speculative circles are encouraged by
the probability that some capital de-
mands OF the railroads are likely to be
deferred because of the slow sale of the
new st. Paul bonds.
Current gossip to the effect that SO
long as the Chesapeake and Ohio weekly
statement of earnings continue poor the
stock will find Indifferent support.
Floor reports indicate that the reac-
ton in American Telegraph was due to
& bear attack based in reality on the
progress of the bill for lower telephone
rates in New York City.
Room traders have been confident in
attacking American Smelling on the
theory that the Guggenheim interests
are outstanding resources for their new
South American project.
Important quarters expect no marked
improvement in Interboro Metropolitan
way bonds meets with a good reception
from investors, thus reducing the under
writing obligations.
In action brought against Union Bag
and Paper Company by certain stock
holders, decision was In favor of the
company.
Frank Trumbull. chairman of the
board Of directors issued the following
statement after the Chesapeake and Ohio
directors meeting: 1.-THE board sees no
reason to reduce the dividend rate. The
present outlook Is excellent for increased
business the next fiscal year over all
Chesapeake and Ohio and affiliated lines.
No important financing is proposed at
present. The Se5.0O0,0o0 41-2 per cent
notes now outstanding do not mature
until June I. 1914.
Physical damage done to Chesapeake
and Ohio line Is estimated at not ex-
ceeding 500, 900, which will be expended
gradually. As predicted. there Is a con-
siderable temporary decrease in gross
earnings. due to suspension OF traffic.
While all Chesapeake and Ohio lines
have been open for about a week from
Newport News to Chicago. connections
at Cincinnati are not yet ready to take
care of all traffic. 1t is expected that by
the fourth week in April gross earnings
will be normal again. Transportation
extensions for April will be less than
last year because of diminished move
ment Of traffic.
THE estimated physical damage on
the Hooking Valley is $500 and gross
earnings are now nearly normal
Earnings Of the United States Steel
Corporation for the first quarter of 1913
are expected to be about So. OOo. 900, or
about $..00o,o0e more than the fourth
quarter Of 1872
The strike last fall at the Utah Cop
per property cost the company s., 000. 600
Practically all Of this sum represents
lost profits. as in the six months from
September I to March / there was an
aggregate decrease of 100000 pounds
of copper from the production. which in
July and August last was at the rate
OF we'll over 100000 pounds monthly.
The strike and the Balkan war pro-
duced a scarcity of labor, so that the
company has been unable to get back
to normal production as quickly as was
at first thought probable At the pres
ent time, however, it has SO far recover
ed as to be producing at the rate Of
well over 100000 pounds per annum.
The rank and file Of Wall Styeet have
not made up their minds that bond sales
hereafter must be on a per cent basis
Because that conclusion has been reach
ed, there Is lot of talk about adjust
ment of bond prices. and of security
prices in general to the higher cost of
capital; but it may be that easier money
conditions will change the situation, and
that the next adjustment, instead of be-
ing down, will be up.
The report that an investigation of
relations between the United States
Treasury and the National City Bank