The Birmingham age-herald., 1915-07-26

the value of, but the quotation for, these stocks.
 This disposition may be illustrated by a single example, one which is taken from many of which report could be made. One of the largest of the industrial corpora tions of the United States was compelled about two years ago to suspend the pay ment Of dividends upon it's common stock. II had, in fact. made one or two divi- dend payments out of surplus. Business depression had begun; it spread rapidly throughout the United States; 1t affect ed this corporation grievously. consid- erable portion of it's plant was unoccu- pied. It was compelled to offer to it's skilled artisans choice of a reduction of wages or else the working on part time at full wages. Even then 1t was found inevitable that skilled artisans be laid off The stock of this corporation dropped many points below par. In July of last year, the officers were in considerable doubt respecting the future.
 In October of last year orders for mu- ntions of war began to come from belliG- erent nations. There has been no let up in these orders. The aggregate of them is many millions. Tn some way the public, or that part of the public which has some familiarity with this organiza- ton. became convinced that in addition
 
 profits of unprecedented size.
 Therefore, there began, early in the spring. the demands from the public for the common stock of this organization and these demands have been steadily main- tained and increased until in that unde- fined market in which unlisted securities are dealt in the stock of this corporation now commands many points above par.
 How They Reason
 The public which owns common stock in this corporation has been deprived of div idends for over two years. Some portion of this public is now persuaded to part with it's stock, figuring that the great in crease in the market price for it is suf- ficient not only to make good the divi- dend losses. but also to provide a consid- erable profit.
 The argument which persuades others to buy this stock is this: The corporation will be compelled to make report at It's annual meeting of it's actual condition. This will show an enormous accumulation of war orders upon which profits hereto fore undreamed of will be earned. There fore. whether the corporation begins to disburse some portion of these profits in the form of dividends or whether it adds them to the surplus fund, nevertheless the corporation will be in such financial con- dition that by and by the stock may com
 
 today. Demand and supply are in this way met, and it is one of the features of these transactions that hardly any of them are upon a margin basis, but are outright purchases and sales.
 Some of the great corporations in New England, especially some of those in Con- necticut, which are known to have re- ceived stupendous war orders, and to have made contracts whereby very great profits are possible have discovered that the pub lie Is especially anxious to buy these stocks, while on the other hand those who now possess them are not very anxious to sell them although they can do so at a good profit. Therefore. the quotations of bids will show constant appreciation. It is a fact that in the market for un- listed securities much the greater part of the demand at the present time for stocks of unlisted corporations comes from New England. There appears to be money in plenty in New England with which to make purchases of these stocks.