The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-05-29
MINOR STOCKS
SHOW WEAKNESS
Leading Rails and lndusrials
Generally Make a Fairly
Good Closing.
FEW ENCOURAGING SIGNS
Union Pacific Middle May Be Cleared.
Bond Day in Local
Market. o..
FEW ENCOURAGING SIGNS
By !. A. FLEMING.

BY -.
Wednesday was one of the best trad
ing days on Wall Street, 10000 shares
being recorded for the session. All IN
AL il was a better market than many
had expected. and nothing to warrant
the gloomy expressions that were hearo
in brokers' offices very generally.
With brokers as bearish as they are
II requires nerve to give buying ORDERS
even for such high-grade stocks as
PENNSYLVANIA around l09lz. New YORK
central at near par. or almost anythlng
else, and the apparent bargain counter
prices Of today. If there are to be
other receiveTships, then perhaps these
prices may not he low, but they nave
discounted even more serious conditions
than prevail today.
With the first gossip of the street
came the hint that DistIIlers and some
other secondary group stocks ought 10
20 lower. and the bears made the pre-
dirtion come true. DIstillers dropped
hack to 3-4. ard Central Leather pre-
ferred. one of the tipped-to-hreak stocks
was off ia. Other stocks in. the in
active group sIumped. Beet Sugar drop
ping Els none very seriously, but with
some recoveries all along the list before
the end of the day.
FirIu~r Closing.
in the big leaders. Reading. Union
PIcific. and Steel. the action was salts
factory Reports that Attorney General
NcReynolds would take hand in the
Union Pacific Southern Pacific squabble
TO the extent of bringing action against
the latter to force the sale OF Central
Pacific by the latter TO the former. may
have been the effective influence in
bringing a firmer tone to market that
needed a tonic and needed il badly.
While the market has apparently few
friends it should not he forgotten that
there is very large short interest. That
This interest although fat with success
nd apparently not worried. might be
irade TO run at any time the clouds
clear up. Steel resistc the bears better
tan might be expected. both the com
mon and the preferred getting back
'usses easy: Union Pacific actually closed
II point higher than on Tuesday. and
r'any stocks suffered but slight setbacks,
most of the declines being in the second
rtils: Frisco. / L.: Mop IL; Nipper. 81;
son Line. IL: Big Four" L.. and
SuIthcrn Railway, 10.
3ggett & Myers Tobacco shares rose
:.ur points. while Lorillard eased off a
rnInt
Iuiun Pacihc-Southern Pacific.
If this matter was settled conditions
would he materially better. II is under
stood the parties are wide apart and put
ting up a strong argument pro and con.
showing little prospect OF getting to-
gether where a short time ago the way
looked clear for a speedy solution. An
attempt to settle in another way may be
made.
une theory advanced is that Union Pa
h. -lzr, -
securities Baltimore and Ohio being given
TO I-ni, Pacific for southern Pacific
stock. the Pennsylvania Company having
a large amount of Baltimore and Ohio in
its treasury This may eventually relieve
the situation that is admittedly in a ten
der state.
some Good Earnings.
In some sections the railroad earnings
are making better showing than the
public expected.
Up TO the close of April. the Chicago and
Northwestern Railway Company earned a
surplus availab BILE for dividend amounting
10 approximately $l2.J0G.OOO which is SUI
ficient TO pay a fun years dividends on
its $4,000 outstanding preferred stock
and leave balance equal to SIS per cent
on its outstanding common stock. In
other words, in ten months, the COM
pany earned sufficient net to pay boin
preferred and common stock dividends
with a balance TO spare amounting TO
more than $l.5OO.OOO
The MAY earnings of Northwestern are
said to he very satisfactory, a gain in
gross being certain, but the net may MT
he as favorable.
Analysing an increase of 81 per cent
in the gross earnings of the Southern
Railway for ten months ended April 80.
1874 W w. Finley. president of the COM
Dany. attributes il TO improved business
conditions throughout the Southeastern
States. Mr.. Finley said yesterday that
this Improvement has not been confined 10
any one business. although it has perhaps
been most notable in The cotton mill in
dustry.
Speaking Of the present crop prospects
in the South. Mr.. Finley said:
There has been good movement of
early fruits and vegetables from the South
during the spring months. Large South
ern peach crops two years in succession
are unusual The crop last year was
large. This year II has been affected by
unfavorable weather conditions. and the
aggregate yield will be considerably small
er than in 1912. 1t is too early as yet 10
express a definite opinion as to the pros
poets of such crops as cotton and cora,
which mature during the fall months.
Local Securities.
There was lively action in Washington
Gas yesterday on the local bourse.
First the stock. opening at SILL. weak
ened and then rose steadily to 81 81.
where the last sales were recorded. In
all ea5 shares changed hands. Odd lots
Of Railway common sold at 30 1-2 and of
the preferred at 90. little Traction
brought 120l-s.
1t was one of the best bond days for
weeks $4,000 face value Railway As
selling at 50 Ii and $1,000 Potomac
Consolidated is at 10l 5-S. Both these
bonds are disable for security for tax
money TO 70 per cent of market value
not exceeding par.
Mergenthaler was sold in small way
at 21s L..
Interested in Two Per Cents
Some country bankers are becoming
nervous over the weakness in per
cent government bonds. Inquiries have
reached local bankers. These bonds are
security for circulation. and one banker
suggested that drop in the price pe-
loV the current tigure-par-would make
gold to a premium.
Answers were sent indicating the gov
ernment's Intention to look after the
. per cents in the new currency Dill.
when it receives the White House ap-
prevail. Secretary McAdoo is insisting
that per cent bonds released from
escrow because OF substitution of other
collateral, on government deposits, shall
at once. he used 10 take out new circu-