The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-10-22

Steel STOCKS GO I
HIGHER IN WEEK

nlUnEk In WEEk
BY Ira N. Steel. I.
= Pronounced irregularity featured
the New York stock market the past
week in the general list, but iron and
steel stocks more than held their own.
The recent developments in the Balk-
ans unfavorable to the interests of
the entente was one cause for the new
condition. Wall Street still holds
the general view that war must con-
tinue until the Teutonic allies are de-
feateds Hence with such important
developments favoring the central
powers as the entrance Of Bulgaria
on their side, the refusal Of Greece
to enter into treaty obligations with
Serbia, and the reported decision of
Italy not to become mixed up in the
Balkan contest, it is argued that the
end of the war is by no means in sight.
It looks as though at least another
winter must pass before there will be
any real peace talk.
The longer the war and the greater
its scope, the more bountiful will be
the grofits pouring into the hands of
American munition makers. Thus war
stocks have shown distinct improve
ment in demand. Bethlehem Steel
common made a net gain Of 9 points
for the week; Lackawanna, a gain of
8 1-2; Crucible Steel, 2; Baldwin Loco
motive, Is. If this theory be true re-
speeding war stocks, it is equally true
of the average run of iron and steel
stocks that are not so closely identi-
fled with the war business. So long as
the war continues, our exports of iron
and steel products in direct form, such
as rails, pig iron, etc., and in indirect
forms as in explosives, locomotives,
motor vehicles, etc., will continue to
60 out in ever increasing volume. Thus
exports in August totaled 401, 900
tons, compared with $4,000 tons in
July, and $4,000 tons in June; both
Of these months in turn had broken all
previous records for a months exports.
United States Steel common gained
a point for the week. Wall street
is not nearly so jubilant over the Cor
poration's prospects now that the d.
rectors' meeting is only 10 days off
as it was two weeks ago. On Oct. 26
the directors will consider the state
ment of operations for the third quart
er. Hopes are being expressed that
common stock dividends will be renew
ed, although in the trade expectations
are that the directors will not renew
dividends until after the first of the
year. Hope without definite knowledge
seems to be the cause of steady buy
ing Of Steel. In stock market circles
predictions of a raise in Steel COM
mon shortly to par are frequent, while
some traders are talking $50.
On the basis of present earnings,
Steel common might be quoted at bet
ter than par, if it were the custom of
the Steel corporation management to
make extra large distributions of cash
to stockholders when the steel trade
is in the "prince" stage. On the other
hand, Steel common has never paid
more than S per cent per annum. At
present the Corporation seems to be
intent more upon Strengthening it's
works, increasing efficiency, reduc-
ing costs and expanding where expan-
sion looks advisable. Only this week
we hear Of tin plate plant at Gary,
and extensions to~a plant of the
American Steel & Wire Co. at Cleve-
land. Of course, money invested in
plants means increased power behind
the common shares, and eventually
increased earnings for common share
holders.
While general trade conditions are
improving, demand for steel products
for use in the peaceful arts still is be-
low normal. Chairman John A. Top
ping, Of the Republic Iron & Steel Co.
Youngstown, visiting the latter city
last week, was quoted as saying that
railroads, implement markets, build
ing trades and other lines apparently
are feeling the stimulus of easy mon.
ey and good crops. That while demand
for general steel products is still poor
there is every evidence that more near.
ly normal trade conditions in genera,
lines soon will obtain. Statistics reg.
ularly coming to hand offer abundant