The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-05-21
Railroad Stocks Rise
Epidenceof Expansion
Upturn in Prices Held to Indicate Drift From "War
Babies" and Increased Development.
Steel Output Growing.

War. with a growing impression tina
peace will come within the year, con-
tinues as the dominant influence In
business affairs OF the United States.
In the stock market, interest which
has been drifting for months from the
war issues, quickened sharply during
the past week In the standard railroad
stocks with the result that appreciabie
advances were recorded, by a number OF
these securities.
Reading led In this upturn with an al
most phenomenal rise. but appeared to
be unable during the closing days OF
the week to sustain its boom, and re-
coded somewhat. carrying other kindred
stocks down.
From the action OF Reading during
the last fortnight, and especially dur
In the last two or three days. II would
a distribution OF assets were certainly
about to come true. But. quite aside
from those predictions. there 10 enough
news at hand to explain the sudden up
turn In railroad shares under tho lead
ership of Reading.
Increased Earnings Shown.
Last Thursday forenoon before the
railroad stocks started upward the In
terstate Commerce Commission gave
out its preliminary statement Of rail-
way earnings for March and the nine
months OF the current fiscal year.
That statement showed increases Of
S5s,O0c,oO0. or rs per cent, In gross and
S7Ooo,o00, or SO per cent. In net Ter
March. and gains of $40. 10000, or 10 per
cent. In gross, and S2a3. 10000. or Il per
cent. In net for the nine months. New
records were established In both gross
and net for the month and the year,
moreover, the SEINE is true In the pre-
liminary gross figures for April and In
the gross for the first two weeks OF
April. the latest available figures.
II has been perfectly plain for months
past that the public no longer has any
interest In the war-order stocks. Under
those conditions and with cheap money
and tho magnificent railroad earnings
at hand what was more natural than
that the leaders Of the stock market
should turn to tho railway shares?
And, having made that decision. what
was more natural than that Heading
should have been selected MS the stock
to attract the attention of the public
to them? Ever sIcc George +. Bacr
died Wall Street has been expecting
any day the announcement OF the long
deferred extra dividend.
1nasmuch as the railroad stocks arc
still far below last year's high pricey,
when railroad earnings were touching
new low levels month after month and
Nho fennSVINAnla ana NprttI-
western and Lackawanna were really
having hnrd time mailing tongue and
buckle meet. II would seem that there
was plenty OF room for expansion.
The railroad stocks on their actual
showing OF earnings are entitled to sell
much higher FLYER since the European
war started. however, railroad stocks
have been held Down ny foreign liuiiidn-
ton. IL now remains to re seen wheth-
err that LIQUIDATION has run ity course.
Steel Production Greater.
Production of iron and steel has in
creased following the virtual disappear
ance Of the labor troubles. and while
new buying continues on smaller scale.
as has been the case during the past
four or Ave weeks. the steel companies
are daily in receipt OF specifications
much beyond capacity. and are not yet
catching up any on deliveries. which are
much deferred.
A number of steel companies which
make all the iron they use,
are quietly buying pig iron to supple
ment their own output. and the iron
market is strong. 1t Is not thought that
the next monthly report OF the United
Steel Corporation will show an increase
In bookings. decrease, on the contrary,
being expected.
Its steel rail bookings In March and
April were probably about s00,O 900 tons.
something over half OF the total rail
business placed. while a very small ton
mage OF rails was shipped.
II estimates Of the rail tonnage be