The Washington herald., 1913-06-14
MARKET Higher,
But IRREGULAR
Gains Not Sustained Pres
sure on Steel Common and
Canadian Pacific Severe.
SOME GOOD RECOVERIES
Local Stocks Were Slow - Bonds
Easier-Dividends Declared.
Wall Street Gossip.
SOME GOOD RECOVERIES
By L. A. FLEMING.

BY I. A. FLEMING.
Wall Street made bold attempt to
hold its rally of Thursday over Friday,
the 18th of June. On the whole, the day
was satisfactory, but the bears made
frantic efforts TO turn the tide their way
once more and almost succeeded.
In the second hour of the afternoon the
market showed every indication of slump
ing, and at times prices were danger
ously near losing all of their gains.
Persistent selling of Canadian Pacific
and little Steel were the chief arguments
of the bears. They managed to give the
premier foreign stock a break of nearly
points. or from 21S 3-S to 215 SIS. but it
came back slowly to 21S. the final figure,
i net loss of a small fraction.
In Steel common it was different. II
was off l-2 and up S-4: was under pressure
nearly all session and at the close, but
was only is away from Thursdays finals
at the close.
Good Trading.
Volume of business was large and well
distributed. At one time the selling
would be better than the buying. and so
the list backed and filled. but with net
gains much more important than the
losses. Most of the latter were in frac-
tions of LASS There were many gains
OF l-2a3-4. the average Improvement;
some la1 L. advances. Rock Island,
Colorado Southern. Louisville and Nash
Vile, Reading, General Electric. and
Minneapolis and St Louis being in the
list, while National Lead rose points,
North American common ) points, and
LOrillard Tobacco 2l-2, recovering its
dividend. Copper stocks were strong, but
had hard time holding their own.
There WAS a disposition among traders
who favored the bear side 10 question
the influences responsible for Thursdays
gain. They claimed that Union Pacific
Is not out of the woods yet. in its disposal
of its Southern Pacific stock.
There were also positive that any eff
feet of the emergency currency pro-
nounciamento was not founded on i'm
proved conditions or anything important
Most OF the financial papers gave credit
10 the emergency currency declaration
for part of the strength based on the
theory that the administration was keep
ing d sharp eye on the situation.
shorts Nervous.
Shorts, and there is an army of this
fraternity, were uneasy at the rally and
worked hard TO check further better
ment. They declared that the market
would come back. an assertion that SIM
ply expressed their wishes in the matter.
Most OF the gossip of the day was
friendly to the recovery. much stress be-
ing laid on the loosening up of funds by
the Chase National and the National
City Bank. The latter had large excess
reserves and was holding on to funds
1t is even limited that the Treasury was
watching this institution.
Sentiment is badly mixed. but the odd
lot buying must be help to the stu
alton. Us well as the active replacement
Of many stocks in the strong boxes of
those who sold out > to 20 points above
present levels.
Steel Production Shrinking.
In October. 1872. the United States Steel
Corporation was receiving orders for
900 tons of fabricated steel a day. In
May this amount was cut from the high
TO 1880 tons day, and there has been
a further drop in June. despite the
Equitable order, the largest single order
ever placed.
Like many other companies, the Steel
Corporation was forced to decline many
orders for steel because of inability TO
fill them promptly. and premiums were
asked for prompt delivery. At the same
time the company piled up a large block
of orders and it is this business that is
giving Observation-Disclosures the mills
today.
The Steel Corporation did not pay much
attention to foreign competition, so long
as the great steel producers of England
and Germany were busy, but the hard
lines into which foreign steel business
has fallen makes the outlook on this side
less promising.
If the corporation was depending on
new business today it would be doing
well to operate its mills on half time.
In October, 1912 new business coming
in), 5000 tons a day. In November il
dropped to 5000 tons, the assurance of
tariff change being effective; in Deem
Der to 1900 tons; in January to IS, 1000:
in February to 5000 tons: March, 5000.
and April 5000 to the 2O,S0o tons in MAY
1t would look from these figures as if
there was ample cause for recent loss in
Steel Corporation shares.
The Equitable order probably will fill
up the June orders fairly WELL as IT was
for 5000 tons.
Considering the future, with bumper
crop. the railroads will have to add TO
their equipment II Is uIncuII 10 see now
they can do it when II IVES so hard TO
finance even ~ per cent municipal bonds
Of the chief city of the nation. New
issues of bonds go a-begg1ng, unless at
a price that even suggests that the
issue is not especially attractive.
The bond market has shown less i'm
provement than stocks.
Southern Pncific Financing.
1t is learned that the Southern Pacific |
Company will not continue this years |
financing to the s5o.OOO.OoO two-year , per
cent Improvement notes which were re- |
Gently approved by the California State |
Railroad Commission. shortly after the |
close of the current fiscal year it is ex-
pected that the company Will make ap-
plication to the California commission
for the authorization OF S6QU.UUO addI-
tional securities, the proceeds to be used |
for various purposes. This Will make
5000, 900 of new financing by the COM
pany this year. 1t is stated that present |
plans call for an outlay OF about Sis,-
Oo0 900 this year for work which was au-
thorized in 1872. but which was upset by
the merger dissolution proceedings.
The proposed issue of $4,000 900 new
notes it is stated, Will be secured by
Slo5. OOo, 600 unpIedged stock ana sIu1Vvu.uvv
unpiedged bonds now held in the treasury
of the company.
Locals Less Active.
There Yves less activity. but no particu-
lar changes in stock values on the local
exchange. Capital Traction was ex-dfvi-
dend y per cent. and was offered freely
at 11s1k. any part of 500 shares being
offered without buyers.
Railway common sold to the extent of
ten shares at S6. and the preferred forty
shares at Sk washington Gas wasi