The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-05
CASH TANGLE SENDS
CANADIAN CAR DOWN
Stock Drops When Company
Cant Get $1O,O00,O 600 in
War Contract Pinch.
TROUBLE DUE TO DELAY

The common and preferred stocks of
the Canadian Car and Foundry Com
pany, one Of Wall Streets chief wa
brides.'' tumbled 30 and Is points re-
spectlvely yesterday from the previous
close. This was the result Of the failure
of the company, up to the close OF busi-
ness last night. to secure a bank loan
Of SO. 000, 900 to enable II to carry on
Its work on some $3.50. 900. 900 war or
ders from the Russian Government. Of
ficers OF tn. company admitted yesterday
the need Of $4,000, 900. but refused
to say what the money was needed for.
They added that they believed that they
would secure the 100000 o. by this
morning. A canvas OF the banking In
stitutions Of the city. including banks
having Canadian connections. failed to
show that any Of them were planning
10 lend the company such a sum or were
organizing a syndicate which might UNI
dertake such a piece Of financing. In the
banking circles the opinion was voiced
that the Russian Government. which
can not afford to lave Its war supplies
delayed. would have TO put up the neces-
sary funds. one banker said that the
tOIIlbduN EilRtt soNt Nis'VNr'NN 1htN'e ~
It's disposal by Russia this morning.
Canadian Car and Foundry stock has
not been acting right" for several days
and has failed to recover from the re-
actions that a taken place from time
to time. The common began Its career
on the curb at IS. 1t sold up to l19,
but ended the year Of 1915 at So. The
preferred opened at l04. reached Its high
at 12S and closed on December 81. 1915.
at 102. Yesterday the common opened
At so. dropped TO 55 and closed at 81.
The preferred sold dow from the open
INK price OF l0l to 81 and closed at 30,
Holds 100000 Contract.
The company mas generally been
looked upon In this country as having
obtained the cream of the war con-
tracts placed here by the Allies in that
It's first and largest order, for sS3,000,-
900 for 2.500,0 900 shrapnel n $780,
900 explosive shells, was secured direct
from the Russian Government. At that
time II obtained an option on future
orders from the Russian government
The first order. because the Canadian
Car and Foundry Company was unable
to fill II at its own plants within the
specified time. was shared with thirty
seven steel and powder companies In the
United states, some contracts were
also sublet in Canada At that time II
was estimated that the total profits
would be about $50. 900. 900. The Rus.
sian Government advanced the company
$?0,000.000 to enable 1t to proceed a,
once with the work OF turning on;
the shells and the company was heavily
bonded TO Insure the fulhlment OF It's
obligations and the delivery OF the shells
at specified times.
In October OF last year Senator Ma.
thaniel Curry told the stockholders OF
the company that another war order
had been secured from Russia. He
estimated the company's profits for the
fiscal year ending September, 1916, a,
$4,000. 900. At that time Il was gen.
orally reported that the new order was
for 100000, 90" worth OF shells.
While officers OF the company were
unwilling TO discuss tho difficulties of the
company In borrowing the $4,000, 600
needed to provide working capital 10
complete the war orders, bankers and
brokers' who are well Informed regard
ing the compary's affairs said tina. It's
difficulties lay in the failure OF some of
the companies to which contracts were
sublet to make deliveries as specified.