Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-01

s ening to prevent the continuance OF the
D neutrality that has thus far been sue
8 cessfully maintained by the Government
/ at Washington. The war stock BOOM Il
[ Is conceded In all directions has cul-
Y | minated IL would probably not be pos
. sible for any considerable liquidation to
r 4 take place on the part of holders without
y causing substantial declines In the prices
OF these securities. However the hold
r inRs are In such comparatively small lots
the public having become so very gem
orally interested as purcl asers-that such
, a liquidation is not to be greatly feared
There have been some increases In divi-
dends and on preferred stocks: there have
been some payments of back dividends
that were cumulative. These have been
sufficient to encourage hopes of larger
things. The time is arriving when the
profits of war orders should begin 10
show in a practical way in the state
ments Of the various Industrial compa-
niles, and II will be possible in due course
to obtain some accurate idea of the ex-
| tent to which the value of these contracts
has been exaggerated
The war stock boom will be recorded in
history In much the same way as the oil
and rubber and similar booms have been
features OF the past. II had the appear
! ance of - great wave-a species of con-
| tagion sweeping over the country. It will
| probably at this date be a surprise to
| nine out of ten market operators to know
| that the war stock boom did not really
start until about the LIST of May and may
| thus be said to have had an active life
or about five months only. But In that
time many fortunes were made and few
were lost, for the price level in most in /
stances has been fairly well maintained |
at not far from its highest range The
inception of the movement may be said
to date from the statement made late in
April that the Canadian Car and Foundry
Company had obtained contracts for
shrapnel and howitzer shells from the
RUSSIAN Government aggregating about |
SS30OO0OD. and was parceling these out
among different American concerns
BIG JUMPS IN WAR STOCKS.
About the same time II began to be
generally appreciated that the Bethlehem
steel Corporation had contracts for mu-
nitions of war and armanents etc. reach
ing huge figures. This was the begin
ming of n movement which had some of
the most sensational price movements
ever witnessed In a large collection of
stocks on the New York Stock Exchange |
Bethlehem Steel for instance which sold
as low as 1914 on January 2 touched 600 |
on october 20 This was the most sensa- |
tional OF the movements, but there were |
numerous other advances. American Lo-
comotiVe advanced from 10 on March |
to TAX on October 90: American Wooden, |
which was quoted at 15N on March 6,
reached 57iR on October 90: Baldwin Loco
l5i1a on October %; Central Leather. from
32ss on February 20, had advanced TO
6lh on November 4; Colorado Fuel and
iron, from 2la on January g. touched 65I5
on September 20; Crucible Steel from
1874 on May 10, advanced to 1O97s on Sep
tember %; General Chemical, from l65 or
January 26, touched 800 on October 8; while
General Motors advanced from So on jan
uary to 476 on November %; Goodrich
RUBBER from 24lz on January I, advanced c
to SOh on October IA; Lackawanna Steel,
from Is on January 7. advanced until It
touched 94A on September %; Maxwell I
Motor, from 1874 on January 6, reached I
Y on October 26; Pressed Steel Car from
% on March 6. touched 1874 on October
b and Railway Steel Springs. from 10 1
IN March 6, had advanced to 81 by October b
i; United States Steel. from 3s on Feb
Virginia Carolina Chemical. from 4slk on q
January s. had risen to Sis on November a
%; WHY'S Overland Motor, from 81 I'm c
February rose to 2ss in November p
These figures may be considered repre-
sentative OF some of the wild fluctuations n
hat have marked the year among the war p
ndustrials. The United States. Steel Cor C
Ioration and some of the other steel
tocks. as already noted have not sought
pecifc war contracts, but have benefited
" supplying semifinished material to
nose manufacturers who have made a
|
he sensational advances in the automo-
ile stocks are supposed TO represent ben
hts accruing from large export orders
4 machines to be used for war purposeB ,s
he strength In these stocks during the u
ater months of the year, however, haS Ia
cen ascribed to the decided Improvement -
. the domestic situation. especially in :,
he demand for motorcars resulting from :,
he prosperity In the agricultural sections ~
I the country and the large buying a
over In the East that has followed tho -
'ar order profits and the high wages for 10 IL
ibor. "a =
GAINS IN RAILROAD STOCKS.
AS to the railroad stocks, the broaden la
lg of the investment demand began with ii
he improved attitude of the President m
nd the Administration leaders. The In hi
srstate Commerce Commission gave evil b!
ence OF mere conciliatory policy and VI
lr. Wilson himself, in his address TO al
ongress. spoke Of the necessity of study &C
lg the needs of the railroad lines He c.
lggested the desirability of appointing tn
n expert commission of investigation to la
o thoroughly into the question and see III
hat was needed. When the industrial m
oom eliminated as an active issue in
ctober the buying spread to the rail- st
oads, which had begun TO come forward IN
18th wonderful earnings. the Pennsylva- a:
la lines. including east and west of sh
tttsburgh. reporting at the close of Oc- eN
)ber september increase of 6li in be
ross and s2,703.574 increase IN let In
4 official statement, President Rea de-
AIRED the Improvement was "due 10 an
heavy traffic in the East
m part of the country, largely as a re- @,
alt OF a shipment of material of most 81
yery kind manufactured for use in Eu-
,pean countries" The net earnings to-
lied s7.2s2,02l for the month for the lines
lst of Pittsburgh, which were the largest tn
st earnings for any month in the his mi
'ry of the Pennsylvania Railroad lines / In
lst OF Pittsburgh. according to Mr.. Rea d.
This was only the beginning of SEN be
tional returns by this road which were, OOC
fact merely symptomatie of conditions IN
the railroad world generally This IN
stern lines are being more benefited pe
the haul" or the war material. since
ost of the factories are in the eastern
rritory and the shipments are made
rough the Atlantic ports. chiefly New
Ork. This traffic is likely to continue att
lily as long as the war lasts Ii was ST
lly In October that American manufae- err
rers receiving the orders for war mater ex
were able to begin making deliveries 81,
large volume. the preceding months an
wing been occupied with making prep SIS
ations for an entirely new industry ay
hich has been created In this country op
the form Of production Of shTapnel and erC
'witzer shells. Il Is not expected that nu