The Washington herald., 1913-05-17
STRONG TONE
IN STOCK LIST
Finding No Pressure to Sell,
Bears Cover-Prices
Point Better. !
RAIL EARNINGS In MARCH
Flood Damage Shown-Bonds More
Active-Helped by Treasury
y Ruling.
RAIL EARNINGS In MARCH
BY 1. a. FLEMING.


a CLEAN of sunshine came down in the
caverns of Wall Street yesterday, one of
those one-day rays that may not last
long but which serves as little encour-
agement TO those who are holding stocks
and makes the positic n of the bears slight
ly uncomfortable but not sufficiently so
to cause any uneasness.
There was a material withdrawal of
selling pressure. Noticing that there
wasn't any stock coming out to amount
TO anything the timid among the bears. a
small minority. undertook to cover a few
transactions. and naturally bid the mar
ket up Oh themselves. Total salesT l6O,OD
shares.
II was a case of about a point advance
in the leaders, strength even where there
was no advance and but few soft spots
where there were actual losses.
Influences.
a large reduction in the visible of cop
per metal was one of the features e the
day, surprising the street and gave
Amalgamated Copper good ga of point
advance. Some OF the bears were in
cIined to test the list on the prospects of
the japanese situation but when they
found evidences of some small investment
buying and little stock for sale, they
abandoned their line of argument and
either did nothing or covered in modest
way.
II is generally expected that this week S
operations will about end the export
movement of gold. The fact that Chesa-
peake and Ohio will pay its regular quar-
terly dividend and that the cut on New
Haven was but l per cent where had
been expected were favorable factors.
Heavy short Interest.
The loan crowd shows a heavy out
standing short interest that has not even
considered covering: that does not mind
4 little rally, but that can be made TO
run at high speed should the railroads
he given the right to add per cent to
their freight charges; that would be
nervous over the settlement of the Union
Pacific-Sputhern Pacific matter, and bad
ly scared on the affirmation of the deci-
Sion of ths lower court in the Minnesota
rate case.
Some day something will happen. The
current prices on many high grade stocks
are not so very far away from panic
basis, and there is every prospect of
tine crops, good business. and easier
money all in coed time.
Railroad Earnings.
Returns for March of fifty representa-
tive railroad systems operating in all
sections of the country, with a mileage
of approximately 10000 are reported as
showing an increase in gross earnings
Of 3.G3 per cent. while net earnings de-
creased 1914 per cent. This compares
with an increase in gross of 6.44 per cent,
ard an increase of 3.45 per cent in net
for February. Operating ratio. exclusive
of taxes. but including net results of
outside operation. was 737S per cent, as
against 1870 per cent in March, 1872
Operating ratio for February, 1915 was
1876 per cent.
When all adverse factors are consid-
cred the results for the month are not
nearly so bad as a decrease of over 20
per cent in the net would ordinarily ind-
cate. The most important deterrent in
fiuence on earnings was the foods in
Ohio and Indiana in the latter part OF the
month. As in indication OF the loss of
earnings sustained by reason of the dis
aster. a compilation of the returns of the
roads operating in that territory shows
a decrease of over 100000 in gross and
over $4,000 in the net. Omitting these
decreases from the totals, gross earn
ings would show an increase of ~ per
cent, and net = decrease of only 3S per
cent.
Another circumstance that has tended
tC make comparisons with the preceding
year unfavorable was the unusually
heavy coal traffic in March. 1872, when,
ir anticipation of the coal strike which
was called on April l, railroads and all
other heavy consumers of coal made
strenuous efforts to bring their supplies
up to as high a point as possible. The
result was large earnings for the coalers
and most of the trunk lines. These are
the two groups of rails that make the
poorest showing for March of the current
year. the former showing a decrease of
Sl.265.1l7 in gross. and 81 .923.043 in net
and the latter decreases of SILL and
81, 49,, respectively.
Northwestern. Southwestern, Middle
Western. and Southern groups show sub
stantial gains> in gross and net, the
Northwestern and Southwestern roads
leading. Western grain movement was
much heavier than in the previous year,
especially regards wheat, deliveries
of that commodity being nearly 100 per
cent larger than in March, 1912.
Railway is Ffrmer.
On the local stock market yesterday
Washington Railway and Electric Is at
tracted considerable attention and moved
up fractionally, with sales at So only.
Potomac Consolidated IS were strong at
l0l
There seems TO be a little better feel
ing in the bond market generally. in
New York as well as locally. The fact
that local first mortgage issues can be
used as security for deposits of tax
money is helping the various ISSUES
Traction IS are held strongly at 10. Gas
IS at 1851, and Georgetown Gas IS at
lO7
New York Bond Sale.
Much interest is taken in the sale of
s+5, 00O, 600 New York City bonds coming
on the market next week, as the bids
then received are expected to reflect the
better feeling in the investment market
All bonds have been helped by the an
of Secretary McAdoo regard
ing the depositing of s1o,0o0OoO govern
ment money. The ruling provides that
other than government bonds may be
substituted for 80 per cent OF the gov
eminent deposits. June / is expected to
be attended with liberal deposits. Sec
rotary McAdoo insists that per cent
from escrow as security shall
be Immediately used to secure new cir
a movement calculated 10 MAIN
tain the parity Of the per cent bonds.
Local Stocks.
Capital Traction was under pressure,
easing this time another fraction. or
from 1eoIz to 12o4 with sales of l6o
ubares Railway issues entirely uorni-