The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-05-10
b|PEl RAILROAD
STOCKS N DEMAND
1<ncg Is,and and wabAah Engage At
tention OF Buyers In Wall
SfrOce.
ALL EYEs ON MEXICO.
jntorvenatou Again Looked Forward
70 ny Big Inrcrcsta With View to
rs Causing Big Boost In All Meu-
can Securitics.
Ry BRoADAN WALL.

BY BRoADAN WALL
New York. May s.--Low-priced rail-
road stocks, not necessarily cheap
ones. lead the market today in Wall
street 1t was sH irregular market
without distinct trend.
Realizing the mistake OF the pre-
sious day In which all the railroads
wen. up and all the industrials went
down, banking interests made the
market look somewhat sincere by
having variety in the upward and
downward movements, but they rave
the raslro Dads the best showing.
OF the railroads that advanced Rock
island and wabash were most promin-
ent Good reasons we're advanced for
these movements. The Rock Island
agency Ia about over and the Wabash
b coming into its own.
Mexico An Excuse
Mexican affairs were used a. the
excuse for irrexularity early In the
day, although the news developments
should really have strengthened TIN
market Every soldier that starts
towards Mexico Is an additional rea-
son for high prices OF Mexican securf-
sses. Danger of destruction OF Ameri-
can property by Mexicans is slight
The chieftains have for months been
warning their soldiers to protect
American property on the theory that
i; viii have to be paid FOR II destroy
&c and viii be valuable to the Mexi-
can government II not destroyed The
oil wells and the mtnes have no more
seslous guardians than the Mexican
soldiers. Perhaps the siren 9Th OF some
OF the Western railroads were due as
much TO threats OF important military
operations in Mexico as to expectation
~ increased dividends. The trans
portation of men and materials to
Mexico would help earnings of rail-
roads materially. Trouble in that al
reetion would also help the auto
mobile companies particularly tire
tnre trucks.
No Ships Available.
II is important to note in this con-
s4ection that even with money, the
United States would be able TO get but
limited service to Mexican ports by
ships as all the ocean vessels are en-
gagged for months in advance. The
bulk OF war material will have to go
by rail.
Loss of the Cymric 10 equivalent to
loss OF a months net earnings to the
International Mercantile Marine.
Rock Island Time Almost Up
Next Monday Is the time limit on
the Arnster committees attempt TO
raise funds for rehabitating the Rock
Island. Wall Street Is beginning TO
take an active interest in the matter
Mr.. Amster reports that he has abou,
$1,000. 900 pledged. but not less than
s25. 900. 600 Is needed. II has become
evident that something drastic must
be done II the company IL 10 be
financed properly while there is ar
abundance of cheap money.
49, AZ to runners of piaf44zffeF -FeeFsan-
axatton Il can be stated that up to date
one thinr has been nearly accom-.
pfished and that 10 a tentatove under
standing as to the relative treatment
Of the stock and the debentures There
hAs been every reluctance on the part
Of the Prosser ana Hayden commit.
tees to take any step which might
possibly interfere with the success oil
Mr.. Armster's plans But II Is nc
secret that the Hayden committee hal
felt that the shareholders are entitled
TO even better treatment that Mr.
Anster has offered, and now It iooki
~ II there IL q basis on which thii
result can be reduced and In which
Mr.. Amsser viii naturally be only toe
GlAd to Join.
In the Ray Consolidated Copper re.
pOrt for the quarter ending March 81
there IL another ray of light on the
6 hig profits such concerns are making
Net for the March quarter was a.
SbB.E47 compared with $1s07. 9s2 for
the December quarter. Surplus after
naa-&1. 41k.24h.- compared
with sl,0oi,os6 for the December
anarter. The March quarter earnin 90
were made on an average price OF
1880. a pound. and the December
earnings on a price OF 20.2ls cents a
sound Copper Is now being delivered
II prices that average &c. higher than
IA the first quarter OF the year. The
Ray Company In now on the same vol
ume Of business done IN the same
uuarter earnings At the rate OF $500
600 . quarter more.
Some weeks ago attention was GALL
"a to the investment possibilities OF
Wahaah stocks. Judgment there ex-
pressed has been INDICATED In the
market price for the common IL Is
and the preferred IA" IL -. making
u combined value Of $64.
Wabash Coming Back.
This buying OF wabash was origin
ally based on intrinsic merit. because
the stocks for a long time sold alnder
the amount Of cash paid mo the
company. Earnings are now reported
TO be at the rate OF per cent. II
te expected that fully per cent Will
b earned on the preferred for the
tut year. dividend OF 4 per cent
would, therefore be among the
reasonable expectations for this year.
Earnings for March reported by 1853
sraiiroads operating 2is,44s miles out
of the 245. 600 miles in the United
states are s275.7e4,o gross and So
a1ab.o 900 net This shows an increase
OF IS per cent IN gross over last year
Snnd ar increase IN net OF about ~
per cent. Eastern roads gained n Q
per cent gross and 4s,4 per cent net,
bDOuthern 20 per cent gross and 4s per
Scent net, and Western 22.T per cent
gross and 3s2 per cent net There 10
ample basis for rumors OF increased
sAiv3dends and II is entirely possible
that Union Pacific may declare some
s4hfng extra AT the meeting to be held
Ehursday.