Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-19
LITTLE STEEL LEADER
Of IRREGULAR MARKET


| knowledged leader. 1t strengthened
| the entire list and turned 1t from
| weakness late yesterday by the excel
lent show of strength it displayed. This
| morning 1t gave further evidences of
it's premier position by making another
point advance, the whole list of i'm
portant industrials and rails trailing
along in like manner.
The whole street is builish on steel
and iron and on the American situation
with regard to foreign and domestic
trade.
While there are many traders who
look for a reaction as natural follow
ing recoveries, even these do not con-
slider that the boom in securities is at
an end.
That the high prices have caused con-
siderable proft-taking is admitted;
also the desire of the sellers for a
reaction that they may again purchase.
and. falling the reaction, they are
likely to be back buying without wait
ing much longer.
With the enormous demand for steel,
iron. copper. etc; with orders from
abroad in the tens of millions and the
expected influx of home business it is
!, hard to convince the optimistic that 1t
is time to get out of the market. They
are open to conviction, but will not be
convinced against their own best judg-
ment. The estimated $50,0O0,00O fourth
quarter net earnings of the steel cor
poration is one Of the main factors in
| imparting confidence. as this is just
about the normal gross earnings of a
quarter, judged by past records.
Market Little Spotty.
Naturally the market, as it reaches
higher levels. becomes a little spotty
through profit-taking, and profits do
become SO alluring that they are fire.
quently garnered.
The selling from abroad is less
| marked, but there Is still considerable
liquidation from that source.
The first hour found everything on a
rising trend, followed in the second hour
| by weak spots and some reactionary
tendency, but at no time could the list
be called weak, even though there were
some losses here and there. but they were
not important. and the war stocks gen.
orally held modest to fair improvements.
1t is reported that the Bethlehem Steel
Company's officials plan readjustment
of capital in the near future. as the BUSH
ness of the company. its plants. etc, have
far outgroWn its capitalization.
With a market value Of nearly $500
share. trading in the security is nearly
at standstil. and many brokerage houses
are disinclined to accept commissions ex
cept when backed with a very large mar
gin. although probably realizing the as
serted fact that the earnings justify the
price-perhaps even a larger one.
1t is proposed that the par value of
the shares be reduced to $40 and the
number increased to 1900. 900 shares in
stead of 10000 shares at 800 par
value.
The gross business of the Bethlehem
Company is said to be far in excess OF
that of any independent producer and
with the acquisition of Pennsylvania
Steel Company, through stock control,
but without actual merger. it is be-
lieved that the joint business in 1916
will reach nearly $200,000.0 900, as com
pared with normal average of $780,
600, 900 for the Steel Corporation.
To change the face value of the stock
would not increase the capital, but it
would give stimulus to trade on the
exchange and make it one of the active
leaders: --.st
Estimates for 1915 surplus. after pre-
ferred dividend. are averaging about
500 share on the common stock with
very much larger estimates for 1916
when the big profits will be garnered.
Steel Common Leads at Opening.
When the bell tapped for the open
1000 shares around s6h. whence it. ad-
vanced to S613, better than Of a point
net gain.
Studebaker followed with points
advance. Bethlehem Steel. is points.
Baldwin Locomotive, making a poor
the opening; Crucible steel. IN: To-
bacco, 2h; Westinghouse Electric. 3;
Steel Foundries. ~. ,.,
Colorado Fuel and Consolidated Gas
were all higher.
In the first hour the. leading rails
also acted better. Northern Pacific and
Reading leading with modest gains,
losses of fractions -.
In the second hour of the session
there was considerable realizing and
declines were noted, about one-half Of
were Y point lower. the active indus
trial leaders holding about half of their
| gain.
Sentiment was favorable to a recov-
cry and the bulls did not seem to lose
confidence.
During the second hour of the after
noon Bethlehem Steel common rose to
$500 a share, the magic price that has
the long journey from the ridiculously
low prices OF a year ago, when this
| stock was selling around $50 a share. -
| The afternoon showed a fair degree
of activity In the list, with diversion
| of strength from the leaders to various
minor industrial and equipment issues
which. traders believed, should be taken
| up sooner or later and exploited by the
bull party.
Little steel continued to be the leader,
| holding steadily around yesterdays
| closing price Baldwin held IL net
| gain and Crucible Steel " net.
Closing Is Weak.
| Little Steel rose in the last hour of
the afternoon to SIN, an improvement
of l *, Westinghouse and few minor
stocks being about the only ones to
show strength here, Westinghouse
touching TN.
| Then, in the last half hour Of the
session. liquidation hit the market in
wave Of selling and lower prices were
general. only the stocks named hold
ing reasonably firm.
Steel went back to SS%. Union Pacific
| dropped to 1875 and other rails made
losses of Y to 1 point to even more
| marked declines.
| or the specialties Baldwin Locomotive
| touched 1904. losing all gains for the
| day and an additional ~ points. Cru
chile Steel held but " point Of its gain.
Selling was noted all around the room,
profit taking generally but helped along
! here andrthere with bear commitments.