New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-01
STEEL CORPORATION
MAKES HUGE PROFITS
High Prices Here and Unrest of
Labor-Money Rates Held
Comparatively Steady.


dividends by the railroads gave new
impetus to the market The week
started with hope OF peaceful outcome
Of the submarine dispute, as dispatches
from Germany, passed by the censors,
indicated that business interests there
were working powerfully toward main
tanning friendly relations.
Support extended 10 security prices
the week before had prevented panic
like selling. and this, with the better
foreign outlook made liquidation
lighter Again It appeared, as so many
times before, that professional traders
had ovcrestimated the blow TO public
confidence from the crisis in our for
eirn affairs. Repurchaslng 20 cover
short commitments was an important
factor in the buying that sent prices
back 20 higher levels.
SO many times serious trouble with
Germany has threatened and has been
averted that. in spite Of the solemn
manner in which this latest message
to Berlin was sent, suggestions were
readily accepted that way out would
be found which would leave 10 Ger
many effective use of her underwater
craft and free US from the constant
menace against safety of our citizens.
Perhaps the natural shrinking from
war after its horrors have been made
plain works unconsciously 10
strengthen this tendency 20 hope for
some settlement, since beyond the dip
L.. l~roL 1onr,e N IffV al
war with all that 10 now implies
Effect Of a Settlement.
As TO what would be the result in the
market should Berlin offer assurances
of a change in her method of subma-
rine warfare acceptable 20 Washington
opinion was divided. There would re-
main, while our citizens sailed the
seas and German submarines operated
underneath, possibility OF further mis-
takes and renewed tension. To many
il seemed that after registering tho
first relief the market must continue
apprehensive Of further trouble.
Railroad stocks, in spite of the sp-
proach Of more active discussion Of
the demand of employees, had held fair
" steady in the previous break and
did exceptionally well last week. TIE
/ difficulty with the carriers in a spec j.
/ lative market is that with so much pub
| LEFTY Of earnings and so much regu-
| lation, state and national. they have
seemed 70 offer small speculative pos
sibilties. Particularly since railroad
unions started their campaign for an
| eight-hour working day, an indirect
method Of increasing wages, it has been
/ felt that placing railroad stock on q
/ higher dividend basis as a result Of
the greatly increased earnings now
being shown was hardly 20 be ex-
pected.
Extra Dividends for Railroads.
Declaration by the directors OF the
Norfolk & Western of an extra divi-
| dend of / per cent, in addition 20 rails
/ ing the regular rate from 6 20 7 per
cent year, suggested that there was
a chance that other roads which might
| hesitate 70 place their stock upon a
/ higher dividend basis might recognize
/ the results Of unusual traffic i'm special
disbursements. This is d wonderful
/ year for railroad earnings Economics
made necessary by the small receipts
/ for former years have still been adj
/ hered 70, and the sudden rush Of traffic
/ has meant record gross earnings, an
unusually large part Of which has
been carried TO net. Increasing cost Of
material-and probably Of lsbor-wi
cut into their profits, and there IS no
assurance that the volume of business
started by war demands viii be kept up.
Industrial concerns generally are put
ting by unusual earnings against the
next time Of need, and 10 may well be
that a similar course would be the wis
est for the railroads to follow Never
theless, IL IS believed that Norfolk
extra dividend will be followed by sim
liar distributions 10 stockholders OF
other railroads, and with this possibil-
ity in view the railroad list attains a
new attractiveness.
How much liquidation from abroad
Is to be feared as check on any i'm
portant rise on railroad stocks IS a
question. Such British corporations
as make known details of their invest
ments here have. according 10 advlces
that have reached this side, disposed
Of their holdings 10 the government as
requested How completely these is
sues have been distributed In this coun-
try is unknown. II any considerable
amount still overhangs the market a
large buying demand must be created
TO overcome its depressing influence.
Wonderful steel Earnings.
II there remained anywhere doubt Of
the wonderful prosperity Of the steel
trade the statement Of earnings issued
by the United States Steel Corporation
last week covering the first quarter Of
the year was sufficient 90 convince the
most unbelieving. Earnings for the
first three months OF the year OF over
20 G. cero d q IN s