The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-05-06
STOCK MARKET
SHOWSSTRENGTH
European Peace News Chief
Favorable Factor Of
the Day.
SHORTS START COVERING
No Rush but They Are Timid-Local
Securities Slow but
Steady.
SHORTS START COVERING
By 4. 4. FLEMING.

nv hs
Wall Street was much more cheerful
Yesterday than at any time for weeks
First came the assurance of peace III
Europe. and with il good buying orders
in Canadian Pacific the specially OF ouI
English cousins and a 2Ss advance there
in. The big short line wavered. Ii OLD
not break during the rest OF the session,
but il shivered at every advance ana
showed disposition several times TO rush
TO cover, a movement that would nave
meant much more strength and hlgncr
prices.
Had the Minnesota rate decision been
handed down it would have turned the
strength into a route of the bears. As IL
was. the market held its own, turning In
the final half hour and closing up grazing
or close to the top. with Reading, Union
Pacific. and Steel all firm.
The Supreme Court did hand down do
cision in the case of the application o.
the Union Pacifc'for extension of time
to July l. 1913. in which to sell their hold
iuvs of Southern Pacific, granting the de-
lay asked for
Attorney General Smith, of the state of
Minnesota. was in the court awaiting the
Minnesota decision, and when 1t was NOT
forthcoming, expressed the view that IL
would come down OF the 2otn instant
three weeks from yesterday.
CROP reports are encouraging, ana the
chances are that the government report.
due the Sth instant. will give the market
another eliXer and one that VIII help mat
ters along.
The general list Of stocks moved up TO
Il. points. while T. ading was ga higher.
In the weak list but three stocks showeu
Vulcan declining points; Underwood,
l5s. and Lorillard Tobacco for 7-point
loss.
Closing strong.
The closing was YER. strong. Just al
ter / O'Clock the market became very
dull moving slowly i'm the last hall
hour before the close. Then shorts VINO
had been waiting decided to cover put
ting Reading to the high point Steel to
the top notch of the day and Union Pa
cific to within Ii point Of high.
II obtain Increase.
If all the railroads of the country
should succeed in raising all their freight
rates by ) per cent, the gain IN net
earnings on this account would he D
per cent on approximately S2.l0oOoO.wS,
or SOS 100000 Such a gain would scarce
~ put the net earnings above the level
OF 1910. when the yearly gross earnings
were between Saooe00,ceO and s3Oo,VV.W
less than now Net earnings after pay
ing taxes for the entire country nave
run for several years as follows:
49,. .s7is 100000 1910. .......sS $50 oCe, 600
ls1l... .S76S. coo,OoO 1869. s7SS ooo 600
But it will probably be found that
tine advance cannot he applied to all
freight. If 50 per cent can be included
the railroads viii be content, so that
over the country the proposed advance
would mean $4,000 eco to Ss5,000,oOO great
er net revenues. This is exclusive of gain
IN i'm business So far only
the roads in trunk lire territory have
Joined the movement For them IL would
mean - gain OF SioOcU.O00 TO Si9OOO,OO0.
Assuming that the railroads obtain the
consent of the commission and are able
to apply the } per cent to not less than
~ per cent of their freight business, the
result will be additional borrowing pow
CT to the extent of sS0o,0OO.000 to $1,000
100000 for the "A Eastern roads and to the
extent Of nearly s2OoO,OoOOOO for all the
railroads If railroad men do not eXag-
crate, it would take that much to en-
able the railroads to catch up with the
industrial procession. But the question
is, will they be able to use 1t that way
If they get more revenue, or Will rates,
wages, and supply prices resume their
seats in the merry-go-round?
As to New Maven.
Directors of the New Haven met May Is
TO take action on the dividend which is 10
be payable June 50. Present plans of those
exercising a controlling interest in tGe
company call for dividend of 11a per
,ent, making a total OF az per cent for
he year.
So far as the fiscal year 1913 is con-
-orncd. the payment of 1I2 per cent, in
stead of per cent, would mean saving
If S@0oG0, but this would not be much
more than drop in the bucket. Net earn
inGs Of the railroad company after taxes
is expected to fall behind last years by
at least S1,J00,0oo, and possibly S2,0lO,0C0.
The company's interest and the other first
charges will not be less and other income
will be decidedly smaller i'm view of the
Boston and Maine situation and the lack
If the $jSS, 200 dividend from Ontario and
Western.
Assuming balance for dividends of
81, 600 600, it may be noted that per cent
on outstanding stock would call for S14,-
$4,000: ~ per cent for SIS, 400 900, and per
cent for $10.S00OOo. In other words. earn
ings for the stock this year may be ex-
pected to approximate per cent en- the
Sis, 10000 outstanding stock. To limit
dividends to per cent for this year the
company would have to omit any payment
for the last quarter, but il is understood
that directors feel that 1R per cent quar-
terly beginning the fourth quarter is suf-
nclent reduction.
In considering a s2.oO00OO loss i'm net
after taxes for the year, il is significant to
note that earnings for the fourth quarter
last year were at top notch, that this year
the loss to March 81 was S6S0.000 that
March fell off $7S0.000 and February $780,.
900 in net after taxes and that an aver
age loss for April, May, and June Of only
s45O.0OO would make the falling off for the
year s., 100000.
Local Securities.
There was but little business on the
local exchange. Buyers and sellers were
only near each other on Washington
Gas, and sales were made at "a 7-SaS5,
with stock offered at So and 81 ga bid
at the close
Arlington Insurance was offered by the
1.0o0-share lot or in odd lots at H. and
the best bid was u.
The same bid and asked prices were
reported on Washington Railway and
Electric.
Gas bonds were firmer at 100.
Personal Mention.
George w. White. president of the Ma
tional Metropolitan Bank. has returned
from St Louis, where he was in at
tendance on the Peace Conference and
where he was reelected treasurer OF the
American Peace Society.
J. w. Lamont, of the firm of j. p.
Morgan & Co., visited in the city Satur-
day and yesterday.
A son of former Secretary of State