The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-05-20
Higher PRICES
FOR LEADERS
Decided Slump in Frisco and
Rock Island Issues Are
Ignored.
MARKET WINS FRIENDS
Short Interest Larger-Southern Rail-
ways Showing-Bonds Lead
Local Trade.
MARKET WINS FRIENDS
BY 4. A.>FLEMING.

Local Trade.
BY 4. A.NFLEMING.
There was a slight improvement in the
stock market. but it was based more on
the possibilities of favorable happenings
than actual news of the day.
Immediately on the opening of the
market San Francisco second pre-
ferred started making more sensational
breaks than that which characterized II
on the closing days of the previous week.
No one knew why, but the selling was
persistent. and when there was 5ia
points drop and the first preferred lost
4. the Street had to admit that the out
look was not especially promising.
Rock Island issues, both common and
preferred. were also weak, slumping
nearly points on the preferred and on
the common.
That the market showed no material
evidences OF weakness in the face OF
these special weak points was taken as
an evidence that conditions generally
were better and resulted in fairly good
buying in the leaders and a stronger
closing. though the full advance was not
maintained TO the end. 1t is recognized
by authorities that any one of several
a reality at any time. The Street does
not pay much attention to the war
scare talk.a il does not believe the Cali
fOTnia land agitation will lead To any
thing beyond the diplomatic stage. The
Street was a unit in questioning the
charge that the Steel Corporation had
fomented war scare stories, putting it by
the corporate heads Of the company asI
and unbelievable.
InexpIIcnbIc.
officials Of the 81. Louis and San
Francisco Railroad Company were in
the dark as to why their property was
so rapidly. They did not
believe that the situation warranted
any such drop, that the earnings are
too good to permit it. Chicago and
Eastern Illinois is one of the st. Louis
and San FranciscO-not San Francisco.
1t has lost heavily
through floods and the accompanying
loss of business, and the chances are
also for deficit from the New Or
leans and Mexico division. interests
connected with the company estimate a
balance applicable for dividends of
s 500. 600, even after the losses, while
surplus earnings from the Frisco lines,
separate. are expected to run between
s.. 100000 and 100000.
short Interest Increasing.
Interests connected with the COM
pany state that funds are in hand to
take up a large part of the maturing
note issue of s2.250,O 900. due June /.
and am extension has been arranged
for on the balance. All things con-
sidered. they claim that Frisco is o.
X. and that the bears are simply seek
SnntS whore there
is no opposition 10 their raids. In The
meantime the short interests but
lcngthen against the day of final ac-
counting.
The Gains.
Iniun Pa life held l: point advance. as
did Steel common and Reading. though
the latter moved up to 1906. increasing
lis advance to a point. New York Cen
trail was !. higher. Canadian Pacific 1Ss.
some of our English friends taking back
stock sold last week. New York Cen
trial and Chesapeake x Ohio =. Smelling
preferred 4. and Can shares = better.
These fair gains, well held, gave the
market better and more hopeful clos
ing the Street feeling that if the leaders
could afford TO ignore the sensational
Frisco break there could be little rad
ically wrong Frisco regained points.
losing only " net for the session. while
Rock Island recovered 4. losing but u
net
Denver and Katy issues were easier.
Beet Sugar was also y point lower.
Southern Hallway Earnings.
In nine months of the current year to
March 81 last the Southern Railway APP
propriated 2e5 per cent of its gross reve-
nueS TO maintenance of way and struc-
lures and equipment. This represents an
increase of Ia per cent over the proper
tiun so appropriated in the previous year
for the same period and involves an ac-
iual increase - S"n"n"0r. For each mile
NJ operated line. therefore. expenditures
were S2S4 more this year than last, about
equally divided between way and equip
rent and represents the most liberal
provision for these purposes in the his
tory of the company. II has been the
policy of the management to increase
rpkeep expenditures in the same proper
ton as gross revenues improve, and this
has been consistently done. In 1910 and
1871 ST per cent Of gross revenues were
80 appropriated. In 1872 the proportion
was increased double last years short
age. making the average for the past
four years 81 per cent of gross. In
these four years the gross revenues for
the three-quarters of year has increased
from s43OoO,OOo to SS2O0O.Oe. The in
crease in net revenues this year over
last will be in the neighborhood of
81 on. coo, which assures a comfortable
surplus over all charges and preferred
dividend requirements. Last year the
surplus over charges for the full twelve
was S6,Ts3.000 This year the
company will earn the equivalent Of 81
per cent on its preferred stock and be-
tween 3.5 per cent and per cent on the
s1eo, 000, 900 common stock.
Bonds the Feature.
Bonds continue to be the feature in the
local market. This was represented by
sales of 5000 Railway As at Sc, $1,000 Po-
tomac IS, consolidated. at 101. and 81 900
Columbia Railroad 5s at 1ol.
A sale of 100 shares Capital Traction att
leo furnished a large percentage of the
stock trading, 50 Gas at IS completing the
interest in the slow session.
Mergenthaler irregular, 2lssi to ZIG.
Baltimore Utilities.
Based upon earnings for the nine |
months ended March 81. 1872 the Consoh- |
lated Gas Electric Light and Power Com |
,any of Baltimore, according to the Wall |
Street Journal, estimates its gross earn |
ngs for the fiscal year ending June 30, |
91S, at se,12l,3oo, as against s.. ass, sS for |
hes preceding fiscal year. Net earnings |
or the present fiscal year are estimated |
II $S1T3,6o0, as against 81 So, 399 for the |
iscal year ended June 90. 1872 while the |
after interest charges. for the |
year ending June 30, 1913. is placed at
., zoe 800, as compared with 13l for |
he preceding fiscal year.
Included in operating expenses are ap- |
-g-.. 49,