The sun., 1916-11-17
GULF, STATES STEEL
STILL SKYROCKETS
Common Stock in Ten Days
Jumps 81 Points and Sec
Ond Preferred 63.
ONE AT 1873; OTHER AT 18O
Southern War Bride Had Hard
Time Raising $1,OOO,OO0
Two Years Ago.

Gulf States Steel Company common
and preferred continued yesterday their
spectacular performance of the last ten
days In the Stock Exchange. The COM
mon stock advanced "a to 1s3 and the
second preferred 23 points to $50 on the
day. The former sold as high as 1913
or at an advance OF - points from the
preceding days close. while the second
preferred touched 100. a gross advance
OF 80 points.
The phenomenal rise had It's incep-
tion last week The common during the
week advanced from 95a, to 1856 aud
closed at 1873, a net gain OF rs points
The second preferred. with 1000 shares
traded In. moved up from 97i, to 1870
and closed at 1:9. IA net advance OF ~
points. Up to last nights close. there
fore these issues had advanced In ten
trading days ~ and 81 points respcc-
lively. Yesterdays trading involved
1,SoU shares of the common. or more
than twice tho amount OF the total
sales in the whole OF tho previous week.
TIRE rise is being likened to that IN
Bethlehem Steel In 1915. The capital
stock of Gulf states Steel. represented
ny trust certificates. was admitted TO
the list OF the New York stock EN-
change on April IL. 1916. At that time
the common was selling around ~ ana
the second preferred at 75. but the fol-
lowing they had was not enthusiastic
and for the remainder Of that month and
throughout May they displayed little
activity. on June 2. however. the COM
mon took a sudden rise from ~ to soS
I'm anticipat!on OF dividend declarations.
The second preferred likewise had a
sudden squirt upward of about T? points
Dividends on the common and In
rreases in tho second preferred. however.
were no, lie Jared and the stocks grad
ual,y Gagged back to the price levels
from which they rose. and remained
more or less inactive until Scptemher
when IN conjunction with an initial
dividend declaration on the common
stock at the rate OF per cont annually
and an increased dividend on the Sec
ond preferred to per cent. the stocks
moved buoyautly upward. the comm on to
as high as ?6'. and the second pre-
fcrred To- ?si..
The first preferred stock. or which
there il outstanding sl.aoo30o, and
which is entitled to cumulative dividends
Of per cent, has been practically neg
lec,cd in the markct because of its
speculative LIMITATIONS. The second pre-
f,rrcd stock, which IL paying per cent.
IN divitends and Of which there Is
81 oSn30o outstanding. has shared in
tho activities Of tho common stock. he
cause j, Is convertible al par into the
Latter. which IL uoH paying per cent
and on which the rate is expected tn he
increased shortly The common stock
~ autrorized to the extent of si,5Oo,0OO,
with 81 t9.?,0u0 outstanding.
Earnings of tho Gulf states steel
Company have expanded tremendously.
current earnings are running At a rate
which Indicates about $40 a share for
the common stock this year after taking
care ~ all prior obligations.
Two years ago the company was In
need Of si.OO0.ooo TO carry out a con-
strucii ion programme recommended by
I the engineers Stockholders were asked
, 10 subscribe TO new stock hut the rc-
sponsc VA. such that underwriters had
, to take practically 80 per cent Of the
now stock IN addition to their pro rata
share under tho subscription privileges.
Since that time the affairs OF tho cum-
pany have impro' cd rapidly under the
stimulus of the demand created by the
var for wire, nails. fence and rod prod
ur's. In January. 1915, the company
, paid off some 5000, 900 in accrued divi-
dcnds on the first preferred stock.
amounting TO little more than Is rcr
cent.