Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-09
BY I. A. FLEMING.

| Wall street has been badly Jared the
| last two weeks. Not that this is any
thing new for the busy security mar
ket as Jars. like bull news. are neces-
sary aids to speculation. 1t is the un-
expected that always happens and usu-
ally to the benefit of that contingent
known as the bears.
| The street was shocked by the Mexi-
can situation when invasion seemed
| imminent. and then decided that war
would cause real activity in railroad
business, in shipyards, munition plants.
etc. and then discovered unmista kable
evidences that actual war was months
away. or even farther.
But the real shock came in the re-
ported closing down of munition plants.
the continued issuance of notes and
other evidences Of new obligations as
sumed by corporations that were sup
posed to be rolling in profits acquired
in making munitions, etc. at enormous
profits, also; in the decision in the
suit of the federal government against
the Corn Products Company. which
gave notice to the street that corpora
lions were still liable to be split wide
open by courts.
The refusal of Judge Rose of Balti-
more last March, to destroy so finely
adjusted an Industrial machine american
the defendant to be-" had created an
altogether different impression
But the American Can case was kept
on the docket, as guard against any
thing that might require other action
by the court. The government tried
again and again. but Judge Roses de-
cision was favorable, the stock going
up a point Saturday on the last ruling.
The Corn Products case will be ap-
pealed. but it hurt the market
The greatest aid that the stock mar
ket has received has been the wonder
full gains in earnings of the railroads
of the nation-not confined. as fire.
quently noticed. to any one section, but
general the southern roads sharing in
large degree.
Were it not for the fact that the big
strike threatens. the trading in rails
would be broad and active. as there are
ample funds seeking Investment.
Perhaps, before the story is ended
some corporation engaged in making
munitions of some character during
this, the greatest of wars. will declare
dividends large enough to warrant the
wonderful expectations and reports
that were current when these shares
were selling 60 to 100 points higher
than they are today on the New York
exchange.
Some stocks on the unlisted list have
been decidedly profitable because of
fat dividends, but very few on the
stock exchange list.
The biggest profit was to Pierre S.
uu Pont, $4,S67,2 200 in dividends on an
investment of 100000, made in ten
months.
Further Competition.
The regional bank of the federal re-
serve system located at Chicago has
purchased s3e5,0oo corporate per
cents of the city of Chicago, plainly
entering into competition with other
banks for the issue.
Big Boost to Reserve System.
The admission of the Corn Exchange
Bank of New York, capital, s10,500, 900,
and s1o0.o0o.000 net deposits. will be a
big boost for the federal reserve sys-
tenn. 1t is the largest state institution
that has entered the system from New
York, probably without exception
1t is expected that this action will
be followed by other state banks Wal
ter E. Frew, president of the Corn Ex-
change. gave his reasons for joining
the system as follows:
This bank has applied for admis-
sion to the federal reserve system and
a adj