South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-09-25
RAILROAD SHARES
COME INTO FAVOR
Strong Buying Believed to lndi-
cate That Allies Will Get
War Loan.


NEW YORK. Sept. 25. - Railroad
shares which have been Stunned and
neglected by the speculative public
which has been too busy TO bother
with issues that did not have pros
poets OF sharp daily advances, came
into favor Friday and led the stock
market in a vigorous advance. The
rails have been taken up several times
before, only to be dropped, so that
there was much curiosity after the
close as to whether this movement
would have a similar ending. AggreS-
sive buying of the rails was said to
reflect stronger expectations that the
British-French loan would go through.
The favorable news from Germany
relative to the Frye case and future
German submarine warfare resulted
in a strong opening, gains ranging
from a fraction 10 a full point. Sew
eral new high records were made in
the industrial group, Baldwin and
Crucible being most prominent. When
the rails were vigorously taken in
hand, industrials dropped into the
background and reacted, whereas the
rails closed around the best figures
with gains ranging from two to three
points.
Missouri, Kansas and Texas was
an exception to the general trend
of the railways, being under pressure
throughout the session, the belief
growing that the adjustment of its
affairs will involve a substantial levy
on shareholders for funds with which
to pay off the companys notes and
provide for future needs. The pre-
ferred touched a new bottom OF II IL.
Loan May Move Securities.
1t may be a mere coincidence, but
TO students Of the market the strength
of the rails at a time when the Eng
lish and American bankers are dick
ering over the terms of the loan sug
gests that it has been designed TO
induce foreign selling of securities.
This would create dollar credits which
would be used TO purchase foreign ex-
change for remittance abroad, thus
supporting the exchange market while
negotiations hang fire.
Brokers who have studied the char
acter of the buying of the industrials
claim that the public will follow the
rails if they are kept moving. They
claim it is only necessary to make a
stock active to attract the public,
which thereafter takes care of the
issue Railroads, they point out, have
the added attraction of yielding high
return on the investment. While the
brokers heralding the merits of the
railroads have not been successful in
diVerting speculation into this group,
investors have taken considerable
stock out of the market so that any
pronounced demand for the rails from
speculative sources might be accom-
panied by sharp advances owing to
the small floating supply.
Leather il Strong.
Leather shares continued strong. |
American Hide and Leather touching
new high prices. In addition to the
strong financial position OF American
Hide and Leather. reports were cur
rent that the company would receive
large orders from shoe manufacturers
having contracts with Russia. Central
Leather has been having a resting
spell for about three days around the
present level, but insiders claim that
the shares are to be placed on a one
percent quarterly dividend basis. |
which would mean an increase Of one
percent in the dividend. With good
prospects of becoming a four percent
yearly dividend payer, admirers of the
stock expect it TO do better.
Rumors that Crucible steel earnings
are at the rate Of 100 percent on the
stock put the shares to the new high
record of 81 3-S.
Norfolk and Western at 115 repre-
scented a new high for this year and
the highest since 1912, when it touch
ed 119 IA.
Rumors of various proposed indie
pendent steel company combinations
resulted in a good demand for this
class of shares Bethlehem Steel pre-
ferred rose 10 points TO the new top
of 1S3, expectation being that the pre-
ferred would participate in the bene
fits TO accrue from the steel combina-
ton of which Bethlehem is expected
to be the nucleus.