The Bridgeport evening farmer., 1916-06-06
cwatson.s Weekly Letter.)


 In meeting the newly threatened crisis in our Mexican relations we have the same clements of strength as will serve to lessen the force of any business reaction that might follow the ending of the European war. Those clements may be summed up in the one word "Conservat1s1a- Ihe National City Bank has remarkeo upon this condition: At this time t1,a cornorations which are making large profits are pursuing very con zervative course as to dividends They ara paving off Indebtedness 1mproV- ing their facilities, laying by reserves in interest-bearing securities ana atrengthening their position in every s,ozsible way. This policy makes for greater efficiency and stability in the future Tn some cases industrial corporations have set aside reserves 4 s,Iff1cient to scrap their war-mun1- tions machinery and leave lnlac1 ace 3riarts- to be devoted to peace-materla1 production as before the war. n S,tFerscases the normal peace capaclty has heen left unimpaired and the war orders executed in plants created TOT the purpose out of advances on the prodts of those orders. Or course 4,ere have been numerous increased navments to stockholders, but the l,,,Ilx of the $355, 100000 (82.07 per sen+41 gain shown in the fiscal year y,oU heinz reported on over the pre- 5vfous year by 3216 corporations haV1ns a total capitalization of ' 3-4 painons has been held in reserve or re1nVesteo h property Furthermore, as anoth- er expert observer puts it: Bank de- nosits and bank reserves reflect a, tre- iTr,endous buying power held in aDey- fsvra hut ready to be exerted upon the first assurance of return 70 slaple conditions.'' And it is worth nollns : = a ifY mast year has meant an enormous m z rraase in working forces ana Tn wares-and it is Labor that is the most active cfrculatcr Of money when making it.
 western reports indicate that May has Set a new traffic record TOT the railroads. increases in tonnage over 1915 ranging from per cent to z4 ner cent. Gains were shown in prac- ficaIIv all lines of freight, the largest i4, miscellaneous and merchandlser The movement of oil to the soutnWess has caused a shortage of tank cars 1Ea<hington statistics show that the ,,.s,, ,os,tic,r, of petroleum as locomo- 4iva fueI increased million barrels, or 23 per cent in 1915. Electrihca- ton. fuel economies and other savings in operating expenses are now netp- ing many systems. Forty roaos III the United States now use oil IneI TOT
 
 folk &. Western and New York Cen +raI are the chief benefciaries of elec- 4rae mower But the future is bound to produce even more prontaDle ana Extensive results from these improve 4nerfts. The gF aina crops are sfaii m m 4f,e lap of Providence but prospects are pointing to short cotton crop High prices will prevent any Feduc- ton in total values, according to the best agricultural experts
 There is but one opinion now among the steel men, voiced by ChairInan Gary. of the United States steel cor poration: it is that another prosper ous year, at least, is assured for the industry. As domestic inquiries slacken from an extreme range, or ders from the European Allies m crease Lower ocean fre1ghts are al so stimulating the forelgn oenano oenancI There is no abatement of the essen fial strength of the copper metal s1t' uation The porphyry output ron April shows a gain over Marcn 1ol Utah Copper of more than l, S00, oo' pounds; for Nevada Consolidated ai increase of nearly 100000 pounds tt a record amount; and these tWs esornpanies and Ray Consolidated. .scor' large gains over April 1916- All th' coDper. companies are doing we'll, bu especial interest focuses upon Ken necott, because it's directors are ex pected to meet next Weeh anu Ai crease the dividend to $1.50y per sEar nuarterly.4 Such a rate, compares with the corporation's earnings, l only nominal Kennecott, by its re cent acuuisitions, became one of tn greatest copper mining enterprises Il the world, with a promise of beinl +ne worlds largest and 1owest-cos Droaucer. It is estimated that Ken necott's Alaska properties will pro duce 120 GOO, 900 pounds of copper thi wear. at a profit of $25, 5,0Oo,0o0. Fly yearg ore reserves are pract1cal1 blocked out Another $2,3oO,OOO exDected from the steamship and rail way properties in Alaska. The Bra den property in Chile is said to hay 200. 900, 900 tons of developed am probable ore reserves. A great in come is assured Kennecott by it's in terest in Utah Copper. A Boston ex pert says: Analysis of the valu and earning capacity of the Kennecot Corporations several assets cannot fai to lead one to the conclusion tha Kennecott stock is worth at least twic it's present selling price The cor poration is built upon a sound an lasting foundation It has before g. wonderfully prosperous year an eventually it's stock should sell 9 s1OO a share and be well worth tha price on 15-cent metal market"
 The stock market has been we held in the face of various uncertain ties and the apathy of the public Pc IitfcaE affairs will soon loom up sharT " and no man ventures to predic the shape they will take at Chicago But the very repression of the specu iative spirit now will count for
 greater rebound when the situatio clears and the full strength of tn eountry's foundations of value 4s req. izcd.
 Giant Auto Combine
 The confirmation by John N. wi Iys of the organization of the $2o0 100000 car combine lends great 1T