The Bridgeport times and evening farmer., 1918-07-09
WatSOn'S Weekly
 Letter
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The principal domestic event of the week stockmarketwise was the an- nouncement of a raising of the price of 23 1-2 cents fixed by the govern ment sometime ago for copper metal to the figure of 26 cents, which was an agreeable surprise to Wall Street, where expectations had been enter tatned of an advance of not more than 25 cents 9, pound. This natur- ally stimulated buying of such popu- lar issues as Inspiration, Anaconda and Utah Copper stocks which we believe to be in strong position. The higher price for copper metal is said to be in response to representations made as a result of the greater cost of transportation due to the freight rate advance recently announced by the Administration. The demand for copper metal is large and military requirements for 1t will be, enormous until the end of the war
 Favorable differences are drawn by other lines of business as g. result of the recognition by Washington of the needs of the copper trade. and metal industries generally expect adequate relief. Optimism is therefore natur- ally stimulated in steel circles; and the smelling issues are also refecting a better feeling because of the sug- gestion of larger metal production and refining. The buying of U. s. Steel, Republic Steel, Lackawanna Steel and American Smelling is re- ported to be of very good character during recessions. It is noteworthy that evidence of investment absorp- tion is not lacking when sound securi- ties in the metal group are offered for sale.
 It is rumored that the second earn ing report of the U. S. Steel Corpora ton, dre to be published July 30, will make the best showing the concern ever put out, leaving aside, of course, the question of war taxation, which will naturally absorb a large part of the profits. This great corporation paid to the government last year nearly half of it's earnings. The gross sales of the corporation in 1917 were S1,es8, 900, ,OOO; in 1914, $55S 000,00o, and in 1915, $726, 900, ,O0O. From this" comments a steel man, Tit Is evident that U. S. Steel must have more money to successfully operate in war periods, and if the steel com panies are profiteering, then the gov ernment is getting the benefit from this profteering, so-called."
 'Tt is more than likely that the sales of cigarettes by various cigarette manufacturing companies in the United States in the current year will exceed 10000 100000" says a. we'll known authority. "The output ten years go for one year was less than 6,000, GOO, ,00O." These figures show the enormous expansion of the tobac- co trade, and are Illuminating with regard to the prospects for Tobacco Products and United Cigar Stores stocks. All the leading tobacco com panies are reported working at capac- ity. The big demand for army mer is supplemented by a new consump ton stimulated by prohibition ten dencies in connection with liquor.
 Experts in Washington are calcu' lating war expenditures of the United States next year at $24,000, 900 We no longer think in millions, but 1T billions. The mind, contemplating these stupendous figures, has grea difficulty in getting to a. proper re- alization of their relation and propor ton. The expenditure of these bill Hons cannot but bring about d cer tain degree of ination, no matter how much conservatism is exercised in tht management of the war, and we be lieve, as stated in the past that it effect must be reflected by highe, prices for securities. War news con tinues to be favorable to the Allied cause and there is growing confidence in all quarters that the rapid increas of American troops in France vii soon turn the scale strongly agains Germany The next Liberty Bont issue is expected to total $6,000, 900, 900.
 Railroad companies are still await ing the contracts of the governmen by which they will be guarantee certain earnings. Until definite con ditions are established in this connec ton it Is not likely that any impor ta,nt movement will occur in the rail road group as a whole There is yer good buying reported in New Haver which has had a natural reactio from the rise. Great Northern Rail way reports for last years earning approximately 9.2Gt. It is interest ing to observe that 9q6 is the figur shown by a calculation of the three