The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-06-25
London Buying and Hope Of
Favorable Union Pacific
Ruling the Cause.
GAINS AVERAGE 2 POINTS
Washington Gas Shows Continued
Streugth-Railway Common, 80.
Money Market Firm.
By /. A. FLEMING.

terday. London again setting the lead
with a strong opening and good buying
This was largely due to the fact that
it looks like peace on the Continent that
the settlements in the big European cap
itals will be made without much trou-
bic and that there will be no failures
of any import
The large investment buying of stocks,
even in odd lots, has also had an enect
on the tone of securities. It Is a mint
to the street that investors of the kind
that lock away securities have about de-
cided that prices are low enough to war
rant long term investments.
More than this the fact that stock does
not come out freely seems to have been
noticed by the bears and they are get
ting under cover more generally.
Yesterday. after the first hour, the
bears undertook to break values, but
they were the only sellers and when
they found that they had not induced
fresh liquidation. they covered and gave
the market highest prices of the day and
strongest closing Of the week.
Union Pacific Matters.
Attorney General McReynolds was in
conference with Mr.. Cravath. represen-
tative of the Union Pacific Railroad
Company discussing the plans for the
disposal of the Southern Pacific holdings
and drawing. so il was said. the terms
of agreement TO be submitted TO the
court. 1t is generally believed that the
Attorney General will approve of the
plans. 1t would be impossible to liquid
ate $l96.Ooo.OO0 OF Southern Pacific stock
at this time. in the limit of the courts
decree, without sacrificing millions OF
values That such a thing would be bad
for business generally is admitted and
certain interests are inclined TO cater TO
business just at this time, so IT Is gen
orally believed that the plan Will re
ceive the %. K" of Attorney General
McReynolds.
II is always a better market with Union
Pacific the leader than when other stocks
set the pace. Union Pacific is a popular
leader. It was helped along by strength
in Copper and Steel. the most encourage
ing reports coming in on these indus
tries where a day or two ago the bears
were saying the most uncomplimentary
things about the outlook. 1t is stated that
Boston operator was responsible for
the recent decline on copper metal in
London for the effect on stocks. Also
that steel orders are being received by
the Steel Corporation in larger amount
than during the May days.
General Advances.
The general advances were from to
points. Union Pacific and Canadian Pa
cific gained 3 points each. Reading made
it "a st. Paul l 1-2, Southern Pacific
l IA. Steel l SIS on the common and
point on preferred. Beet Sugar preferred
was 3 3-S higher. Illinois Central 23-s,
Copper els while Great Northern Ore
rose , points.
II was strong almost without excep-
ton. Texas Oil and California Petroleum
being about the only soft spots
Grain prices turned the other way. Civ
ing every prospect of good crops.
1t was not big day. but it was salts
factory TO the friends of better prices
and steadier markets. The bears did not
like il.
}. J. Hill still Optimistic.
An extraordinary spectacle is on view
in this country. l hear it commented on
almost every day. particularly among
bankers. 1t is nothing less than marked
activity in industry concurrent with the
tariff debate in Congress" said James ].
Hill.
When the Democrats last reviewed the
tariff trade collapsed. Today, after sew
eral months of tariff tinkering il is above
the average. There are two infallibly
accurate tests of the volume of business
being done in the country-bank eX-
changes and railroad earnings. In re-
cent week bank clearinss reached the |
great total of $3.50. 100000 Gross reve- |
nues of the railroads are running ahead !
Of the 1912 record. These are results few |
people have anticipated. |
And there are good judges who pre-
iict that when the tariff bill is passed |
will take fresh start forward. !
That prophecy seems over optimistic. |
pf IFS fmlflln1Pnf iS hNr M ir1nnS- |
sible. This is a country of 100000 of |
people. Their ordinary needs suffice to |
keep reasonably busy, by far the greater |
part of the time. nearly every branch of |
rade. Soon its soil will give forth 50 OO1- |
700, 600 or $4,000, 100000 in new wealth. |
That will keep the factories going in |
spite of new tariff schedules bordering /
more closely on the free trade idea than |
any the statute books have ever con-
tained.''
Gns Leads
Washington Gas was again the leader
N the local bourse. The selling in
reases, but the buying seems to be suf-
icient to take care of the supply. no
natter how large. Yesterday 275 shares
anne out. nevertheless. the closing was
light at the top, S7Il, the sales from S6s.
he opening. being steadily absorbed.
'ic bEOhtT Il IdhlIiS lnS STOCK, DuI the /
uying must be by very strong interests,
or it is being taken off the market, and
he strength from day to day is sur
rising.
Selling is generally by holders who
ave small profits or several points
ain and who look for reaction.
That IL will be possible for the Wash
ngton Gas Company to increase its
rice per 1000 feet above the present
ate of s. cents is not considered at all
robable.
Even close friends of the corporation
Omit that. The action of the George
own Gas Company in the return to the
rate was in itself a guarantee, in a
,essure, that the rate will not be cut
n the product of the Washington Gas
company below S. cents. That there
annot be any rapprochement between
he two gas companies save by order
{ the Utilities Commission and on an
quitable basis is also admitted. The
tatus of the cases in court have not
hanged.
Washington Gas is a good $50 per cent
ividend payer and in the years to come
lay be able to make II 5 per cent
traight.
Mr.. Letter is still president of the COM
any, despite many retirement stories,
nd probably will be until the end of
he current year. the period for which 4
e was elected. Ii
In the meantime, the only certainty :