South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-01-20
Notes of the Finarcial World

A constantly growing inquiry is
reported for equipment stocks and
scale down buying is noted. The
theory Of the buyers is that the gov
eminent will find it necessary to
give large orders for equipment. II
will be possible to move govern
ment orders forward and also the
government will have the means
with which TO make the purchases.
The equipment stocks were senti-
mentally helped by the ruling of
Director Gen. McAdoO that the Car
field fuel order Will not apply TO
plants engaged in the building of
locomotives for railroads. The order
is general and applies 10 all plants
in the United States so engaged. Mr..
McAdoo has also issued orders to
all locomotive manufacturers to
place their product under the diTec-
ton of Alfred II. Smith, director of
operation Of the roads. and TO dis
regard all individual orders.
o
Those who have been following
the Denver Western Pacific situa-
ton for a long time would not be at
al surprised TO see the Missouri Pa
cific get complete control Of the
Denver and Rio Grande when the
property is TeOrganiZed. The Mis-
souri, Pacific now holds a little more
than so percent of the Denver and
Rio Grande stock outstanding. In
such an event il would seem that
the Western Pacific would be in =
strong position to deal with the
Missouri Pacific and Denver would
not have an outlet to the Pacific
coast.
The statement of the Republic
Steel Co. for the fourth quarter of
1917 showing "a drop in net earnings
from the preceding quarter of al
most 40 percent indicates clearly
that steel earnings reached their
peak in the third quarter. of last
year. All steel companies with per-
haps one or two exceptions are be-
lieved to have made poor shOwings
in the last quarter of 1917. 1t is al
together likely that the current
quarter will show up even poorer
than the fourth quarter of 1917, due
to the fact that the freight tie-up
has been more pronounced. Ii is un-
derstood that while L. :. Steel earn
ings in the fourth quarter showed
decrease they can be termed salts
factory.
There is talk that the Allis-Chal-
mers Mfg. Co, having enjoyed a
prosperous year in 1917, will soon
consider liquidation of the ga
percent arrears on the preferred
stock. Payments that would put the
common stock in line for dividends
before the end of 1918 are consider
ed likely.
Most of the gossip on Mexican
Petroleum credits accumulation Ia
/ the Doheny interests. Some of the
I largest New York traders have been
= following the upward movement.
o.
Notwithstanding the difficulties
which the steel trade experienced
/ last December. preliminary esti-
mates Of the earnings of Lackawan-
ma Steel Co. indicate that net for
I the stock in the closing quarter of
/ 1917 will be at least as large as that
OF the June quarter of last year, the
previous record three months per-
iod. in which $6.907,631 was earned
after charges and depreciation.
This means that Lackawanna
steel will show over s25.000.0O0
I before deducting excess profits tax
alton for 1917. These taxes are esti-
mated at around S9.5O0.000. so that
/ the actual balance applicable 10
dividends may be placed at approx
/ mately $15,5OO.0O0, equivalent to
I nearly S45 a share on the stock.
+ The stock market had some COM
fort out CT a message from Wash
+ ingtOn 20 the effect that officials
/ there professed the utmost Optim-
i ism that the Garfield fuel order
would have the desired effect OF re-
lieving congestion and furnishing
I fuel.
There seems to be a pertinent de-
/ mand for the copper securities.
/ Specialist advices suggest that the
\ offerings IN this group are compare
lively small. Inspiration, Utah, and
Anaconda are wanted. Information
relative 10 copper metal prices does
not indicate any change is near.
o.
The United States Steel corpora
ton il is understood is still Operat-
ing its blast furnaces and ovens. as
well as plate mills. making ship
plates for the government and GER
tain other countries.
Bethlehem Steel is more fOrtu-
nate than most OF its competitors.
as considerable proportion OF its
production comes under the eXemp-
tons
%
According 10 some representative