The Washington herald., 1913-11-23
CHANGES TONE
STRONGAT CLOSE
New York Stock Market, AZ
ter Dull Start, Enjoys
Brisk Rally.
MEXICAN INFLUENCE NIL
Few Transactions on Local Exchange.
w., B. & A. Report Shows Fair
Gain in Earnings.
MEXICAN INFLUENCE NIL

For some time after the opening of the
stock market yesterday, the market was
of a drifting character. Little attention
was devoted to business in the opening
hour, but later the scarcity of stocks
and the usual weekend covering by the
attacking element on the floor created
stronger tone. and the stocks in which
there were moderate dealings generally
ended with some gain recorded.
The more important issues continued TO
show a waiting disposition and the deal
ings, small as they were, consisted al
most wholly Of operations for the spec
ulative element on the floor, which pur-
sued the usual course of putting out
short lines and buying back the same
issues before the close.
1t was natural assumption that the
restriction of trading was influenced
somewhat by the Mexican situation, but
il cannot be said that any uneasiness
was apparent among actual holders Of
stocks, and the floating supply, instead
of being increased when lower levels
were established, became even smaller
than on the preceding days Of the week.
Trading corCinued extremely dull dur
ing most of the last hour, but in final
dealings increased activity was estab-
lished, and many stocks made substan-
tial gains
Union Pacific was the most prominent
in this movement, advancing about one
point from its low level in the first hour.
Fractional advances were recorded in
United States Steel common, Reading,
Southern Pacific and Canadian Pacific.
The final tone was strong.
The market has grown dull under un-
favorable news rather than weak-this
is perhaps the most significant thing
demonstrated by the recent dealings on
the Stock Exchange. Prices have come
down A point or so and some spe-
Cial selling has occurred in 4 few indi-
Vidual stocks. But as a rule the fail
has been slight and apart from the
highly speculative issues il has amount
ca to nothing at all. No one can conf
pare prices with what they were a week
ago, take into account the paltry total
Ct transactions day by day, and conclude
tnat liquidation of Importance has been
in progress. II has been rather profes-
sional SPECTATORS taking advantage of
the absence of any vigorous or effective
buying power to mark prices down anu
turn little profit on the short side.
DuIIness Must Be Broken.
\ movement Of this sort never tells
very much. Everybody knows that the
intense dullness must be broken sooner
or later by a material change one way Or
the other. Wall Street students are very
much divided in their views as to which
direction the next big price movement
will take. One body of them, with their
minds fixed upon trade conditions as the
most important factor to sonsider, is
Tessimistic. The other party, feeling that
the great thing desired is genuinely
easy money market In which new finan-
cling can be done on a large scale and OH
reasonable terms. is hopeful, believing
that worldwide trade recession is al
ready releasing large stores of capital
and will continue to do so for some time
TO come.
These are the two opposing points of
view regarding the outlook.
1t is not, of course. to be expected that
there will be any great immediate i'm
provement. The first half of December
is always a trying period, and this year
more than usual there will be more of a
Discrimination to do much because of the
large capital lotaiions in prospect both
abroad and at home. Operations for the
decline at a time like the present can
temporarily cause weak spells, and even
give the impression of a fresh downward
movement under way.
But taking a broad view of the out
look, which does not concern itself with
small speculative fluctuations. there
seems warrant for saying that world
finances are on the mend, and that after
the enormous fall of the past year Sc
curities have discounted pretty well that
trade recession which is needed to re-
lease capital and provide the wherewithal
for the huge financing which must be
done in 1914 Both here and on the other
side the weeks testimony is definitely en-
couraging. In London, a Montreal city
loan Of S7,5OO,Oo0, carrying 41-2 per cent
interest, was heavily oversubscribed, and
at once was quoted at substantial
premium. Such a result would scarcely
have been conceivable even as late as
a month ago; il has demonstrated the eX-
cellent effect of the agreement among the
British underwriters to restrict new Of
ferings to a minimum, and Furthermore
it has proved that trade reaction in Eng
land has gone far enough for its conse-
quences to be felt in the increased sup
ply of investment funds.
Little Business on Local 'Change.
But few transactions were made at
yesterdays session of the Washington
Stock Exchange, though the attendance
was unusually large. Capital Traction
IS sold at 107 IA, while the stock Of the
same company was sold after call at
1l2 L. ..-- .
Bid prices on Washington Railway
common and preferred stock dropped OF
half point each, but there was no trad
ing in these securities.
In view OF the furry over the recent
troubles of the United States Trust Com
pany bank stocks were watched with in
terest. Quotations on nearly all bank
securities were unchanged, one or two
stocks changing inconsiderably, with no
transactions anywhere in the bank lists.
W., b. & A. Earnings Gain.
The Washington, Baltimore and An
napolis Electric Railway Company for
the ten months ended October 81, 1915,
earned at the rate of 9 per cent a year
on the 81. As. $50 of preferred stock out
standing. This stock was issued at the
time Of the reorganization and is per
cent noncumulative. In 1872 the full 6
per cent dividend was paid and the COM
pany will be able to continue dividends
at the per cent rate, as earnings are
showing fairly steady gains. For Octo-
Der. 1913, gross earnings increased s., ,121
over the corresponding month of 1872,
sbut increases in operating expenses and
fixed charges cut the net income applica-
BILE to dividends to s6, 6,72S for the month, a
decrease of sos from October, 1872 For
the ten months ended October 81, gross
earnings were $695,397, an increase of
S45, ,025 over the gross for the ten months
OF the preceding year, while gross in
come was $S52,590. an increase of s1g.Oss
Deductions for interest, taxes. SC. .@for
the Ten months were S240761. an increase