New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-07-20
FINANCIAL RECORD
HERE And ABROAD
Reaction in War Order
Stocks, While Railroads
Show FirmneSS.

Attack with torpedo and shell on the
Orduna. word of which came over the
week end, brought lower prices for Sc
curities at the opening yesterday. This
week our government sends 10 Berlin
the result of its deliberations on the
latest evasive note from Germany, and
what appears to be an attempt to XIII
without warning our citizens while
passengers on merchant vessel might
we'll make the occasion critical one.
Selling at the start of yesterdays ses-
sion. however. was principally by pro-
fessional operators on the snort side
and standard issues recovered sharply,
railroads showing marked strength in
the early trading. War stocks did not
have equal residence, explanation by a
member of the executive committee Of
the Crucible Steel Company that the
advance in the common stock of that
concern was 50 il could be handed over
to the public at high prices proving
considerable of a wet blanket on this
portion Of the market.
Railroad stocks, it appears. are being
retained by the investing public and
recent sales by Europe and by the short
interest have been well absorbed. After
an early recession of one-half or three
quarters of a point the railroad list
stifened yesterday and went up |, 2
and 3 points within the first hour as
the shorts tried TO cover. All of this
gain was not maintained. but in the
last hour there was another period Of
strength and a few of the active rail-
roads at the close were a point or
more above the final figures Of Satur-
day.
Impressive as was this frmness in
the railroads, the more speculative in
dustrials provided bulk of the trad
ing in a day where the turnover went
well above 100000 shares. Here maxi
mum losses from Saturdays high prices
of 2, 3, 4 and up TO 10 points gave
testimony TO the effect produced by
the frank discussion of Cruciblc SteePs
prospects. The interview explained
that earnings for the current year, con-
trary TO misstatements OF war order
contracts, would not be over half those
of two years ago, and that with unpaid
scrip and accumulated dividends on the
preferred stock and expenditures on
new plants the common stock of the
company could not be expected TO pay
dividends for a good many years.
War order business received by our
industrial concerns has been surround
ed with great mystery. In few cases
has there been any formal announce
ment Of contracts received or estimates
Of profits to be expected IL is not
known to what extent new construc-
ton and Encouragement of plants incl
dent to taking up a new line Of manu-
facture is being met through current
receipts. More instances of such frank
statements as this in regard to Crucible
Steel would deprive the market Of
some of that uncertainty which breeds
speculation and give fairer oppor-
tunity to the investor whom il is most
desirable to encourage.
Crucible Steel opened lower and soon
was down 10 points from its high price
reached Saturday. There was some re-
covery, but it closed not quite point
above its low and nearly 6 under the
final figure of the preceding day. Re-
cessions not quite so violent were made
by others of the speculative favorites
Ct last week. Baldwin Locomotive,
after a rally, closed . points lower, and
there was pronounced reaction IN Amer
lean Can, Westinghouse, American Lo-
connective, Allis-Chalmers, General Mo-
tors and Bethlehem Steel. United
States Steel at one time was down over
points, and failed to make any impor-
tant recovery.
The local money market maintained
its firmness, though there was little re-
quest for time loans or market collat-
eral. In London, where cable advices
estimate that payment of the war loan
to-day will be around one-third of the
$4,000 100000 subscribed instead of the
one-tenth actually due, discounts in the
open market were one-eighth Of l per
cent above the Bank Of England's mini
mum of 5. Sterling exchange here went
little lower in spite of the higher rates
in the London money market, while ex-
change on Paris made further recov-
ery.