The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-09-01
Business and Finances
New York City, August 20. 1916.
By w. S. Cousins, Ed American Banker.

New York City, August 20, 1916.
The latter days of August seem to
be amply fulfilling the predictions and
aspirations of the stock market lead
ers, relative to the inaugurating of the
big bull movement referred to in the
August fifth issue OF this review. In
fact, while August, like the proverbial
March, came in like a bear, it is safe
to say that its exit, so far as the
Stock Exchange is concerned, will be
after the manner of the much-desired
bull.
Thus, on the hottest day OF the sum-
mer, August I'D, the Stock Exchange
boiled and dubbed under turnover
of 100000 shares, establishing new
records for leading industrials and
giving the railroad shares the most
prominent positions they have occu-
pied for months.
United States Steel common, purely
on its merits of increasing earnings
and enlarged capacities, has been the
most ardently sought of the industrial
group, and comparison of its mar
ket value one or two months ago with
that of today's closing is the best evil
dence of its return to popular favor.
In the early part of 1915, under ad-
verse conditions in the steel trade,
the stock of our premier steel cor
poration sold at $3S a share in the
outside market, only to advance to
89H in the same year. In May, 1904,
four thousand shares of this stock
changed hands at $685. per share.
This weeks price of SO on enor-
nous dealings, compares with pre-
vious record of 94zS, established in
1909.
1t is calculated that the Steel Cor
poration is now earning five times its
dividend, and that if the present pros
porous conditions in the steel trade
continue for another year or more,
the corporation could invest its sur
plus in good securities and continue
its regular dividends irrespective OF
its future profits in steel manufacture
ing
The railroad group Of stocks have
as whole been stronger than at any
time since the demands of the union
men were presented to the manage
ments. Wall Street and the investing
public have always believed that {
calamity such as would be involved If
the complete tie-up OF the transporta
ton facilities. of this country is un
thinkable, and any indication that the
differences between the executive!
and they employees were being
smoothed out was the signal for re
newed buying of the railroad shares
Reading, Union Pacific and New Yorl
Central have been the most conspicu
Gus issues in this division of thu
market.
Public announcement was mad
this week of the terms under whlcl
the new British two-year notes ar
offered to American Investors, and tn
list of American securities Offered a
collateral also made public. In tn
belief that the pledging OF this stocl
will remove the pressure from tn
market. and that we may have simila
transactions in the future, America
investors will be more willing to ven
ture into the buying division of tn
market.
Dividends and interest disburse
ments next month will reach the sur
of $142,539,689. This is a new hig
record for this period and compare
with $ll5,154, 100 in Stepemtber yea
ago, or an increase of S27,3So,oS
One hundred and thirty-tive corpora
tons will distribute in the aggregaat
$7o.O3o $50 to stockholders, an VI
crease of $22,795,5S9. This shown
is due in large part to the fact tn;
the United States Steel Corporate