The Bridgeport times and evening farmer., 1918-07-30
Watson's s Weekly
 Letter


 fessional attacks have been effective of stock. While the good news from France was found to have been more or less discounted, attempts to bring about a break in the active standard list met with little success. On the other hand, preparations for crop moving and the Fourth Liberty Loan have been absorbing the floating sup ply of money. thereby putting an ob- stacle in the way of pool operations in the stock market. The Street is al- so considering the pending new war tax proposals more closely, in view of the fact that Washington is reported to expect the committee to make rec concentrations to Congress in the lat ter part of next month.
 Commenting upon proposed legisla- ton relative to taxation of undistrib- uted profits, a pertinent dispatch to a well-known Wall Street news agen- cy says: Nothing is more funda- mentally necessary to business health than the carrying of sufficient reserve to insure against reverses and provide for possible deficits. Now comes 8 proposal which would put premium on an action that should always be resisted. Nothing, conservative bus mess men say, could be more danger ous. There is not, in the opposition to this measure, any desire to avoid the payment of the largest possible taxes. Business men say, Take all the fruit, is necessary, but do not destroy the tree that bears it, to de- prive the tree of the sustenance nec- essary to the raising of the next crop The argument is advanced that corpo- rations could make money by distrib- uting income and then borrowing their working capital to tide over de- pressions. Where could we borrow ask the corporations. But even if they could borrow, the proposal re- mains ethica1ly wrong and economi- caIly dangerous"
 It is understood that the campaign for the Fourth Liberty Loan will begin September 2S and end October 19. Bankers expect a total issue of about S6,000, 0,000,000, at a rate of probably IA per cent. There is a feeling that the offering may be exempt from the super er-income tax. There is no doubt in financial circles that the loan will be a big success. The education | of the American public in previous loans is epected to bring this about The campaign has been we'll organized along scientific lines.
 l The taking over of the telegraph and telephone lines of the Nation by the Government will become effective July 31. There has been a good dea, | of sentiment against the continued concentration of power along these lines, especially where labor or other conditions do not make such actior imperative for the efficient conduct o1 the war. In this connection an ex' pression of opinion on the subject o1 the investors interest was given b1 Thomas W. Lamont of Messrs. J. P Morgan & Co., as follows: '"The Gov ernment's taking over of the telephone and telegraph lines for war purpose: is a step which ought to prove very satisfactory to holders of securities 1T the companies in question. Post master General Burleson makes i | clear in his announcement that tht greatest care will be taken to con
 serve the properties and their perma
 nent earning power. So that for th'
 long future it would appear that in vestors in these great companies hav'
 little to fear for the stability and earn ing capacity of the corporations"
 War developments are generally ant ] specifically: encouraging. The splen
 did results obtained by the Allies af ter checking a big German offensiv } and countering to an exceptionally sue cessful extent, are exceedingly grati
 flying. The latest reports on the sub marine show that this German menac
 is almost overcome. Food Admins
 trator Hoover announces that the foo' problem is solved for the Allies, whil
 Teutonic peoples are slowly starving
 Premier Clemenceau's paper says million Germans have been lost sine
 the March drive started. Senate Thomas denounced strikers in tn Senate during the week, accusin them of giving aid and comfort to tn | enemy, and advocating maximum
 wage law. The stock market display ; ed vigirous strength upon the receip Of reports that the British troops ha . also made substantial forwar } movement, and that it was difficult t see how the Germans could escap
 a disaster.
 : The buying of U. S. Steel commo r stock is reported to be very much bet l ter than the selling. The corporatio l now has working capital far in eE . cess of the par value of it's commo , stock. The directors meet next Tues s dya to make public the June quarte < earnings and declare dividends. Rail
 road stocks are marking time, wit I few exceptions. New Haven is re D flecting persistent buying. The coal
 CT rails are also reported well take1
 Higher prices are expected when tn 9 railroad contract is settled. It Is bf lieved that the labor situation. will
 relieved to some extent when the Gov
 ernment on August 1 takes control
 distribution of labor into essentiol II
 dustries. The railroad steel rail nee
 is so large that companies like U.
 Steel and Lackawanna should benef
 materially when the Government i
 nally places orders. Copper interes
 are now hopefully looking forward
 the conference scheduled for Augu ,s in Washington to take up the que m tion of another advance in price. Ste exports are to be prohibited uni 1o Charles M. Schwab completes I
 great ShiDhuiIdinp Droorarn.