The sun., 1916-10-01
FINANCIAL NEWS
AND COMMENT
Professionals Force Recess
siOns. Using Submarine
Scare as a Bugaboo.
SALES WELL ABSORBED
Pressure Is Resisted by Big
stocks, New Buying APP
pcaring on Declines.
SALES WELL ABSORBED

Prices In yesterdays session in the
Stock Exchange moved toward lower
levels IN the early part OF the short ses-
sion, recovering to n small extent before
n, close The downward movement was
based upon realizing liquidation and pro-
fcssiuual pressure and not. as reported In
some quarters. on a change In the atti-
tudc OF the public and the substantial
Wall Street interests toward the market.
Tnc professional element confessed II was
somewhat alarmed over the possibility Of
az active resumption OF Germany's SUBJ
marine warfare. and II In It's usual incon-
eli ont way sold the very stocks which
would profit from any trouble that might
develop between the United States and
Germany In the event OF the sinking OF
ships with Americans on board.
As n matter OF fact. the bears were
not alarmed over submarine warfare
prospects but they found In technical
martct conditions and In n disposition on
III, part Of the public to take profits an
opportunity to press stocks for sale, es-
prcilly In those issues which had been
prominent active features In Fridays OPP
eraticns The selling was well absorbed
and the efforts to lower market values
were not accompanied by results In pro-
portion 10 tHt tltIkg thptlucu W hS
professionals. The big stocks exhibited
decided resistance to pressure. and on the
unlmportant declines in hem new buying
came out In volume.
Cultcd states Steel was forced down
moro than three points In the early
dealings but II came back with surpris-
Ing ,1se. its net loss for the day was
small IN comparison with Its gam from
Tucsdaya low to Fridays high, while
81. 81 ID. SORT nf arfipu Uaa fppprtpl In
other departments. notably In the cop-
pers and the railway equipment shares.
In the trner tendency reported in the
late dealings some OF the rails, tnclud .ng
Loh.rh Valley and Norfolk and Western
which gained more han a point each,
We're features. Sentiment at the close in
most quarters OF u. street was bulish
regarding the outlook for better prices
in tu-morrDw's market. particularly In
The 'qu., mcnt. copper and steel issues.
The margin OF proht on operations in
the steel and copper industries In the
last three months has been heavy in
spite of high labor costs. and as produc-
ton has been In record breaking volume
earnings OF the various steel and OPP
per companies In tine last three months
have been enormous II is on the basis
OF the recent and current earnings and
the practical certainty OF big returns for
months to come that the steel and OPP
per share are being absorbed by sub
stnntlal buyers and by buyers of smaller
financial means. II IL not improbable
that In the current week further active
efforts To- advance United States Steel
common WIN be made on revised esti-
mates OF the concerns net earnings Tor
the quarter just closed and upon talk OF
another extra dividend payment.
In the quarter ended June 81 net earn
irgs Of the big steel corporation totalled
sQr = Ac ois tho hn.yfesf IN ito history.
and . O.OOO. 600 in excess OF the best pre-
cedin- quarter. September quarter
earnings. according to all indications.
showed further progressive Improve
ncut ia each month. and In some circles
It l. estimated hat the statement. which
will hc published later In the current
month. VII show a return in excess of
$50. coo. 900. which. on the basis OF sink
M fund and dividend payments In the
June quarter. would leave "A surplus after
common dividends OF more than $780,
0Ou.uuO.
There was good reason for the declara-
zion of an extra dividend on the COM
mon stock In the June quarter, and there
l. gtill better reason for another dis
bursoment Of the same sort for the Sep
temher period. General opinion In the
Street favoTs an extra dividend rather
than a straight increase In the rate. al
though there are not n few observers
who believe that as the corporation has
enough business on is books to keep its
mills busy for months to come, with the
prospects favoring the present hirh earn
Ing power far into the new year, the d.
rectors will be disposed to establish the
issue on a regular . per cent, basis. The
current price Of the stock would appear
60 favor the later theory.
In various Wal street houses present
RDSsiD makes "A pricp OF l9O for Steel