The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-28
FINANCIAL NEWS
AND COMMENT
naiIroad Stocks Develop Great
Strength, With a Buoyant
Close.
GOOD STEEL EARNINGS

Activity Of n constructive sort ex-
banded in yesterdays stock market to
about n million share scale. and the day
WIS signallzcd BY n most emphatic turn
Of strength in the railroad shares. These
constituted tho feature OF the market
in the last hour, when n rise of great
vlgor and h~uoyancy swept railroad
prices upward TO n close NJ the highest
OF the rcsslon. Union Pacific. ST. Paul.
Northern Pacific, Southern Pacific. Bal
,lmore and Ohio, New York Central. Le-
high Valley and Reading. in fact all Of
the issues which have always been the
chief medium of stock market invest
rent and speculation. gave an entirely
new character TO the dealings which
have been SO one sided lately with
operations in war order industrials.
Advances of two e five points were
rapidly made In the railroad depart
mcnt. and as profit taking in ,ndus,rials.
which had continued to show strength
In the morning. caused only moderate
recessions. the day ended with about
the most substantial average of gain
seen this month. After the close OF
business the United States Steel Cor
poration's report of earnings for the
June quarter was published. and the
returns so much exceeded common eN-
pcctation MS to Justify the improved
action Of standard descriptions In the
days stock market.
In every respect the steel Corpora
tons statement was a weighty contri-
button TO the arguments which have been
accommodating for an optimistic attitude
toward the trade and industrial outlook.
Nothing becer measures the progress OF
the country in recovering from the shock
and depression which 1t suffered last
year. When the first quarter of the
present year ended with net earnings just
under Sl2.500.000 there were timid con-
lectures that perhaps the result might
be increased by 100000 In the second
quarter. Lately forecasts were made
that perhaps SIS. 10000 might be shown,
but his was about as far as conserva-
tive hopefulness dared TO go. The actual
figures given out yesterday were $780,
055 and n surplus of IS. 26S. 900 accrued
against deficits of more n a $1,000 600
In each OF the previous quarters. More
over. about Ia, per cent. was earned on
the common stock on which dividends
We're SuSf ended in January.
The most striking thing in the exhibit
was the comparison which the June
earnings Of $ll,3i3,000 made with the
April earnings of $7.2S6, 900. In the
first SIX months OF the year the rise in
earnings was from the S1.6S7 900 re-
ported in January. every mont record
Ing Improvement. over the turn of the
midyear It became manifest that condi-
tons in basic industry had definitely
changed for the better and now, with
prices rising and OF the known facts
about the employment OF steel making
capacity and forward ordering. II il
estimated that the Steel Corporations
net earnings IN the last half OF 1915 may
aggregate 500, Oo0, O0o. which. with the
$4,000. 900 already e1ined. would give
about as prosperous "A year as the cor
poration has enjoyed.
No especial hesitancy was displayed
by the stock market at the outset on ac-
count of the critical state of the coun-
try's controversy with Germany nor on
account of the tTcyersy which is
looming up with Great Britain. Possibly
the financial community considers that
these matters Will teud more or less 10
NcutrallZe each other. although Infer
cuces OF this sort may be dangerously
misleading. Wal munition stocks con.
tiuued IN the forenoon To- provide Wall
Street with speculative incentives, Beth
ichem steel soaring TO 25O. Throughout
the morning the marke, had again a
confused aspect. as though "A shifting OF
positions were going on, which might
iudecd have been th- case. judging from
the afternoon developments. The rail-
road list In the forenoon was almost
weak. Coppers We're distinctly weak
and some OF the war stocks showed
signs Of pressure, although they did not
yield much.
, In the early afternoon the rails be-
gan obviously 20 harden, and the last
hour had hardly opened before buying
orders were maLiiestlV directed toward
his quarter. For many weeks past
rails have been neglected, underbought
and heavily oversold speculatively. 1t
became almost fashionable to sell rail-
road shares short while buying the war
stocks. although IL could never be
doubted tina the rising tide of general
Industrial activity must work for the
Improvement OF the railroad situation,
pa rticulai.y with the backing wh'ch the
splendid crop promise of the year at
furds.
Tho buuyaucy which railroad shares
displayed in the last hour hardly re-
uuires any further explanation. Ger
taiuly Il was not necessary to circulate
the rumor bred OF the rise in rails, that
the Interstate Commerce Commission
had granted the West.ru railroads u rate
increase, hut ON this subject II is worth
stating that neglect of railroad stocks
has ben carried 10 a ridiculous @N-
IRENE i'm the face Of the signs Of recent
, months that the Governments policy OF
regulation was being revised along con-
structive lines.
ON the whole tn, closing OF the mar
ket was the strongest and most active
generally which has been witnessed on
the July movement. Various industrials
yeccdcd somewhat under realizing. but
there wa not sufficient indication wa"
rauting the trading Suspicion that all
the Industrial specialties were being sold
under cover Of railroad strength. Many
of them might we'll pass into n waiting
stag however, in view OF the very eX-
tensiya upward swing which they have
had lately.
Affairs which most engaged Wall
street notice have already been touched
upDn. but mention should be mad of
the fact that tbs country's foreign trade
balance for last week, put at about S23,-