The sun., 1916-09-28
FINANCIAL NEWS
AND COMMENT
Dividend Paying Investments
Favored in Another Mill.
ion Share Day.
ACTIVE BUYING IN RAILS
Steel Outlets Down and the
Mercantile Marines Re-
ceive Attention.
ACTIVE BUYING IN RAILS

InCre was no SuRgcstlon IN tne omar
acter Of the business in yesterdays
stock market that the current bull spec
ulation would not make further prog
ress. Indeed there were many ind.ca-
ions In The movement Of values n in
the general transactions that various is
sues were being groomed for higher
prices, and tina both the substantial
public operators and the big Wall street
interests were making plans to liQuidate
their holdings at substantially better
levels than the best so far recorded. es-
p~eclally in the steel and copper issues. In
some OF tho rails and In the Mercantile
Marines.
There was much talk regarding the
last named issues. The rece!vership for
tho international Mercantile Marine
Company Is scheduled to be lifted to-
morrow. and Wall street has the rumor
that in celebration OF the successful con-
clusion of the %company's reorganization
tho stocks. notably the preferred. will be
pushed to a higher level.
Throughout the day tho general ten
dency OF prices was in the direction or
better figures. will new records estab-
l,shed In several issues. Including Union
Pacific. American Beet Sugar. Cuba
Cane Sugar, Reading and Inspiration
Copper. The buying OF tho rails was
much in evidence. the movement Extend
ing to railroad mortsagc Issues, In which
a much broader demand was reported
Tho character of the absorption of such
issues as Union Pacific, Reading. New
York Central. Southern Pacific, Norfolk
and Western and Erie suggested n who'll
~ legitimate desire on the part OF many
financial interests. which earlier IN the
year had taken over large amounts OF
| rail securities from foreign holders. TO
advance prices to IL more
range for the purpose Of distribution.
Interests behind the move In the rails
are not endeavoring to transfer worthless
securities to the public. The rails have
great intrinsic merit despite the various
burdens which have been placed upon
tho companies by legislators and II Is
reasonable that advantage should he
taken Of tho present public enthusiasm
for securities to make an active marke'
for tho railroad issues.
Most OF the representative dlvidend
paying railroad shares return at current
prices n good yield oil tho investment
while their market values could move
considerably higher before they would
cease 10 he attractive purchases 10 tn,
ordinary buyer. The movement in the
rails apparently ~prcsupposcs the election
OF "a Republican Administration and leg
~isla;!on along lines that will compensate
the roads for the recent eight hour legis
lat!on or else n successful fight In thu
supreme Court against that legislation
At any rate there Is a much better feel
Ing In the financial district toward th'
railroad stocks and n belief that In thu
future the rail transportation !ndustr,
will cease 10 be a target for State ano
Federal political activities to the extern
reported In recent years.
United states steel Quoted down to
comparatively light total OF business. bu
a substantial amount OF the issue Wa
bought in the neighborhood Of il1. &C
emulation accompanying the most bull
!sh sort OF gossip on tho business OF tn,
corporation and on tho possibility OF tn,
declaration OF another extra dividend a
the directors quarterly meeting mex
month. Reports received Yesterday from
the steel trade foreshadowcd furthel
price advances In steel products. an In
crease in the European inquiry for stce
for strictly commercial purposes as vel
as for war material production and tn,
full operation OF tho increased capscit,
OF tho mills far into next year. Their,
was nothing pessimistlc In the week..
steel trade advices or in those on cop
per.
Naturally tho Street was bulllsh on IN
steel and copper shares. Copper com
} panlcs have paid In the current mont
about S.+.0 900, 600 in divideuds. with
big surplus TO spare. Tie latest est
mates on tho earnings OF the Unite,
States Steel Corporation place a returl
at the rate Of $50 a year on the commoI
stock.
Call money was offered IN ahundanc
in tho Stock Exchange. but In spite Of tn
heavy speculation. which made NOR
than Q million share total for the e!gh
tenth consecutive day. demand was rel
1 Atiyelv light Tina mNpAv v.aa aaa
and the vast supplies OF funds availabl
for loan market purposes we're r~efecte
In appreciably lower rates for CONNER
clal paper. More gold has been receive
from abroad. the latest shipment comm
from Australia. while more money is I
be advanced 10 Europe. France havln,
negotiated a new loan from America
bankers for $5o.ooo,o 900 or . 8 per cent
basis.