South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-02
HEAVY SELLING
FEATURES MARKET
Work of Professionals Causes
General Decline 0urinq
Week, Say Experts.

NEW YORK. sept. Wall street
continues TO insist that the decline
in the market mainly is the work
of professionals and its contention
is probably right But TWO facts
raised contrary presumption. One
was that the volume of sales. i'm
spite of the absence of many large
traders on hve-day vacations. was
heavy, more than half a million
shares changed hands before noon
This would raise the impression of
selling 10y actual holders. The 9TH
er fact was that the declines were.
and have been for the last several
days. most violent In the shares Of
those companies whose earnings
contrast most strikir ely with those
of 1911, 1912 and 1913, the pre-
war period as fixed in the senate
excess profits tax. Atlantic Gulf
and West Indies Steamship stock,
for instance, broke six points at ore
time. and steel issues were very
weak; railroads were relatively firm
II professionals are selling stock
with the radical tax agitation as
mere excuse. they are at least car
ryins out their plea consistently
The presumption raised by the
heavy trading. however. was not 80
convincing when that trading was
analysed. While more than 500
600 shares changed hands in the first
hour. nearly half of those were the
shares of one company. United
States Steel In private Unreported
transactions before the opening.
from $1,000 70 $4,000 shares of steel
common were transferred out of
$1,000 shares of steel sold IN the
early tradins, about 10000 shares
are estimated 20 have been sold 10y
one house alone.
United States government per
cent Panama bonds are now being
offered at S4. At which price they
yield about "a per cent. This
bond compares favorably with the
Liberty loan 1-2 per cent. which
are selling close to par, except that
the Panama bonds have not the con
version feature belonging 10 the
10 the Liberty loan. But on the
other hand. the yield is consider
ably higher and there is the add
tional advantage OF the relative
smaIlness of the issue. only $50
600. 600 being outstanding, COmpar-
ed with billions of the other. The
Panama bonds mature in 1861 and
investors are assured of an absolute
" tax exempted security for a per
iod Of "A years, consideration TO
which Importance is attached in
view of the evident movement for
legislation designed 10 terminate
the further issuance of tax-exempt
bonds. A few weeks before the
breaking of diplomatic relations the
Panamas IS sold at 1O3.
Merchantile preferred shares at
one time today sold a point or two
below the amount of accumulated
back divid ends on the issue. L
would be interesting TO know just
what are the legal difficulties. if any.
in the way of the company pur-
chasing its own preferred shares at
these prices in the open market. II
would seem TO present weighty adj
Nantases Preferred stockholders
could hardly object 20 the company
bdyine uD all the stock offered IN
the open market at such prices. It
would increase their own assurance
of getting future dividends Com
mon stockholders would benefit by
a smaller preferred payment in the
way Of dividends to themselves. The
COMPANY would benefit by being
forever saved from the necessity of
paying further dividends on the pre-
ferred stock bought in the open
market One conceivable complaint
might be that the company in bus
ing up this preferred would be US
ms funds which would otherwise
90 toward payment of accumulated
dividends on the rest of the pre-
terred
a large part of the copper share
selling Is attributed 10 fears OF heavy
damages to copper and spelter pro
ducing mining companies, arising
out Of the continued victories of tie
Minerals Separation Co against
those companies which have used
its patent process without license.
The Jackling properties viii appar-
emily have TO bear the brunt Il is
claimed by Minerals separation that
profits of S5O.0OO.O 900 accrue 10 them
for the use Of their patents by Butte
and superior and 100000 each
from Utah Chino. Ray and Miami
suits are expected 20 be filed in the
next two weeks.