The Bridgeport times and evening farmer., 1918-02-05
WATSON'S WEEKLY
 MARKET LETTER

Internal troubles in the Teutontc Empires ara gradually becoming worse, allowing for large measure of exaggeration in cable dispatches from adjoining countries. Even Washington, which has been conser- vative in accepting indications sug- testing Teutoaic collapse, is appar- ently more disposed to credit reports of strikes and riots in Germany and Austria. President Wilson is quoted as saying in a communication to con- ference of Middle West farmers: You will realize, as I think statesmen on 10th sides of the water realize that the culminating crisis of the struggle las come and that the achievements of the year 01 one side or the other must determine the issue" Important financial channels are confident that economic conditions in Austria and Germany will decline more rapidly in 1918 than n any previous year of the war. Collapse would mean an early peace.
 An increased demand for railroad shares has been based upon develop ments which raise hopes in the minds of investors that real relief is at last or the way. One of the main reasons why Washington should be inclined to corporate earnestly at this time in furthering railroad ~clief is that a res toration of confiGs 4ce among invest DTS would go far toward providing a favorable atmosphere for the flotation of the next Liberty Loan. There are signs that the need is appreciated. It
 ;1 inI legislation for the carriers under gov- ernment control. Increases navo been granted by the I. S. c. C. in the inter-mountain rate case. It is not to be overlooked that with the remov- al of railroad freight congestion the position of the transportation systems and their securities will be improved; and it Is conceded generally that peace would be a bulltsh argument upon the rails, which have probably seen their lowest levels during li- Cuidation which has been exception ally thorough. The idea of govern ment ownership of the carriers does not seem to be gaining ground in Washington.
 To our mind the dividend action of the U. S. Steel directors at their quar- terly meeting showed good business Judgment They divided part of what the company had earned. The stock holders were entitled to substantial disbursements The corporation has contributed as no other corporation in this country to the support of the gov ernment during a time when it was most needed. A double benefit was thereby given In addition to this the Steel CorporaTion has laid by a sub stautial surplus Even if it Is obliged to cut down disbursements and pay only a rate of 5 per cent because of earnings that may be reduced by the transportation congestion and increas- ed costs, the outlook may favor the declaration of an extra 1 per cent dividend at he next quarterly meet fng-putting the stock upon 9 per cent annual basis, which would be a very handsome return on a security selling even at par.
 The stock market has been para lyzed for some time and now is dis playing symptoms of creeping paraly- sis, with a fair show of ultimate re- covery. Professionals have largely controlled the price movements. There is an underlying firmness which is gratifying. There can be no doubt that the tendency is to reflect the more constructive Washington activi- ties, railroad relief, lifting of the transportation blockade and signs which seem to point in the direction of peace more clearly than at any time in the past We are still strong ly of the belief that imitation is quiet ly exerting Its powerful influence 1T the market for securities, and see nc reason for changing a view frequent ly expressed in the past that this con dition will work for higher prices il speculative-investmen shares. Int stocks of the coal railroads have beer in good demand due to feeling tha these companies will get a doubl benefit, namely, general railroad re lief and an enormous fuel demand. brighter outlook for the production of copper for the year 1918 is agail attracting attention to Inspiration Copper, Utah and Kennecott- It is as serted by authorities that barrel enough copper is now being mined t supply war and industrial necessities The Oil shares are being bought b investors who see the business repre- sented by them materially increase through the larger use of oil as fue
 Good buying is reported found i Union Pacific, Southern Pacifi' Southern Railway Pf., c. & O., Mis souri Pacific, New York Central an Reading. The supply of America Car & Foundry, Railway Ste' Springs, Pressed Steel Car. America Locomotive and Baldwin Locomotiv railway equipment issues, is said have been reduced. U. s. Steel, Crl cibIe, Lackawanna, Republic an a Bethlehem B stocks are in good d. rnand. Pools of insiders are rumore to be active on the long side of Wes inghouse Electric, Harvester Corpo F ation, American International, Amer
 can Cotton oil, Central Leath,
 Can, A G. & W. l., American Woole p Goodrich and Studebaker.