Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-25
JUCG[ERS |NJURE
STOCK SITUATION
Cause Greatest DemoraIiza-
ton as Result of the Euro
pean Conflict.
INVESTORS SHOULD
AVOID WAR STOCKS
Better Feeling in Foreign Ex-
change-August Dividends
Show Small Increase.


NEW YORK, July 24-Events in Wall
street during the past few months have
been almost, II not altogether. SUI
fcisnt to justify the popular impression
that the stock market is but an unre-
strained and unrestricted gambling
center. and that it's influences have
been anything but inspiring to the
business interests of the country. This
would be absolutely true were 1t not
unfair to ascribe to the stock market in
general the wholly indefensible tactics
of band of unprincipled and unscrup-
ulous spectators. Thus it may be said
that the most demoralizing aspects of
the European conflict, in so far as its ef-
feet upon America can be traced, has
been the indiscriminate manipulation
Of tho stocks of war order industrials."
many of which will never produce the
smallest fraction of the profits that are
attributed to them. With every rumor
OF war orders. real or fancied, profess
son are on on the aier.
question in the hope of unloading on
the unsuspecting public when the fruits
of their operations are safely within
their grasp. The result is that while
there are individual instances of quick
profits on lucky turnovers the average
investor has but little opportunity to
come out of the transaction with as
much money as he had when he went
In. Whether or not the unusual plethora
OF money has contributed to any large
extent to this new speculative tendency
Is problematical, though the general
assumption is that idle money, like
idle children, is not overzealous in choos-
ing its company.
Two Counteraction Sources.
Influences from two important sources
may be expected to considerably coun
teract these speculative tendencies: the
banks. which are becoming more eau
tious in loaning their funds on war
stocks as collateral, and the managers
and directors of the war industrials,"
who are not anxious to have their prop
critics made the foot ball Of a gambling
market. The following announcement
from a member OF the executive COM
mittee of the Crucible Steel Company
made lat the request of many stock
holders seeking some explanation of
the sharp advance Of the stock" is
significant: The common stock is in
the hands of people who evidently in
tend to hand IL to others at the highest
price at which 1t can be sold. ana this
misstatements made about war order
contracts. Year before last the Crucibie
steel Company made profit of almost
$5,000.000. Last year the company made
about sl.o0O.oO6. and was Obliged to
suspend it's preferred dividend. This
year the company will make not to ex-
seed $2.500.oOO. 1t requiring s1,750,OO0
- outstanding in unpaid scrip and
accumulated dividends on preferred
stock $7.S00.000. With large expendi-
lures necessary to finish its new plants
Uncluding that in Syracuse) / can see
no reason why the common stock of
the company should be able to pay divi-
dends for good many years or be
IN,
the stock Exchange are agreed that
pig sales do not always indicate a
healthy market. especially when the
o., 80. - ~ .n%,,,. aso LAX
- py ina. .he
a.. a,a,.., 80, aeon. anu ina.
$500, mean s'ii.
1.r~.r onnor,nnt,,.. anu
,.,,cr III. ha "p
$3.50 .L, ~eei' 70 hol tue dtti.
100 y, 'aSs wno inake up tne great
-. Ths "a haat 5000 anu business ~ t Isaa
Wor,a amsr,c. inoi|dsa VI .ne "n1ie
termins,inn ~ hnS,;sttias mes IN inc
he s,ven Tbs "a pc p1im nan peace can
- LII mas NO" lasted
nrnhahi, .n 30 . ia.A VI q -ohs
la, assins, th;o -, .nfee years at
49, ue .ne iae. .hat IN some respects
LIS -. H 1 never oeeh DETER pre-
"a ahroaS Th maiu IN tfaue AZ nome
exer ;s 49, pan VI .,aoe. now
- 80 anS aIn 1inoosh IN tine
t.nn;,. u hsh .ai anu BUSINESS
Sn 'aes cunt OF that
a. S ,hi,s ot ot inc .nesi ,; emects OF
weight TO those favorabie factors rsn w,s uc
,ndsr6s ~ Sn.ins. .i,,,a,; Wn me-,
cnmntrw a. IN uiewne;nt .Hn III o..s
,n.nds ;,ss,, 70 ,hn.p ..h ~An en- com
ne not in violent market fluctuations.
try. OF trade and of credit.
Rnronean Finance and Exch.no~
tuesday was an eventful day in the
London money market, the 10 per cent
installment Of the big war loan. calling
for about 5000, 600 900, being due. This