The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-05-05

The violent reaction and liquidation
in the stock market which took place
in the closing sessions of last weel
were not nearly as formidable as they
seemed to be; and indeed, many oil
most of the assumptions upon which
they were based have been shown tc
be without foundation. The conse
quence was that the bear element
which seemed to have matters very
much under its own control, found
that it had slipped a cog in its reck
oning, and that the price recovery il
the current week was SO firm and sc
steady that not the slightest opportu
nifty was given to realize the paper
profits that seemed to near at hand or
the previous Saturdays closing.
Some of the losses of the week be.
fore last are significant in that they
apply almost exclusively to the wal
stocks, while the standard rails were
unaffected by the slump which carried
down their neighbors. Bethlehem
Steel went downward to the extent OF
48 points, General Motors rs, Crucible
Steel 23H, Studebaker 17H, Mexican
Petroleum ID, Lackawanna Steel TO-
When the market opened on Mon
day morning it was found that the
buying orders greatly outnumbered
the orders to sell and, with more
optimistic outlook both as regards the
Berlin and the Mexican situations,
Wall Street gave expression to a more
optimistic view of the situation, and
this optimism increased as the week
passed along. Mondays advances
ranged from to E and points, with
such strong support from buying
quarters that banking support was
not necessary.
1t is now generally believed that the
recent heavy selling of war stocks
was most likely due to the forced
liquidation of an extended pool posi-
ton. The discouraged throwing over
of stock bought higher up. was forced
by the general publicity given to the
statements of those active in the
munition business, in which they
showed that new orders from Europe
were most unlikely. inasmuch as both
England and France have enlarged
their capacity for producing their own
munitions, and will not in future be
dependent upon outside auxiliary
help. The only danger in this in
stance is to be found in OVERRIDING the
bearish program, and in seeking to
force down standard industrials with
a growing domestic business, to levels
where they are eagerly absorbed by
outside investors, and held as perma-
nent investments.
Much interest was manifested in
the quarterly statement of the United
States Steel Corporation, which was
published after the close of business
on Tuesday. 1t will be recalled that
in 1918 the directors of this COM
pany chose to ~ass the dividend on
the common stock as the alternative
of reduction in the wages of its EN-
ployes, and the hope has been ex-
pressed that an increase in the COM
mon dividend, sufficient to make up
for the interim loss, would be COM
menced. No increase was made how
ever, but substantial sum has been
placed TO surplus account.
According to this weeks statement,
the Steel Corporation earned in the
first quarter of 1916 an income Of
$60,713,624, this being the greatest
record in the history of the company,
and exceeding by $950O,000 the best
previous quarter. After deducting de-
probation, interest and dividends, the
net surplus for the quarter was $32,-
1854, liz. The amount necessary to
pay the full dividend for year is
only $12,648, 700; hence the favorable
character of the report becomes clear
ly apparent. In other words the bal
ance available for dividends as re-
suit of the quarters operations was
$45,5l2,872, or very close to the
amount necessary for distribution at
full rates for the entire year.
American investors will receive
during May the sum of $l36, 6o6,750 in
the shape of interest and dividend
payments on the securities held by
the records of May of last year, and
is apportioned as follows: To stock
holders, $52, 69o, $50; to bondholders.
$84 100000. Numerous industrial cor
porations will pay out extra or larger
dividends. The returns are also fea-
tured by some additions to the list
New bond and note issues go to ex-
plain the increase in interest pay
ments. The CITY of New York will
distribute $l5,000,O00 in interest, and
will pay off $37, 100000 in the way of
revenue bonds.
Business Reports.
Business reports from every section
of the country are as favorable as
ever. The home consumption of AM
erican products increased in direct
proportion with the ability of our peo-