The Bridgeport times and evening farmer., 1918-10-01
WatsOn'S s Weekly
 Letter
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 x If the Fourth Liberty Loan is sue eessful-and we have not a doubt that it will belt looks as though the campaign will aid the market for rail- road securities and industrials- There may be quite an improvement, with an increase in the volume of business. There should be a somewhat easier in money after the fota- ton of the Loan, with a greater supply of funds for legitimate purchases of securities.
 We are still strong believers in the class of railroad stocks and bonds, Investors who now have the cash to buy cannot do better than purchase first class bonds for longtime in vestment. The market value of these bonds is likely to show material prof it in the next two or three years. We think better times are ahead for the railroads, which are being put in good condition following 8 period of time in which there were no impor- tant betterments or improvements. The demand upon the carriers is large and growing and this is bound to show results in increased gross re- turns, with larger net later. Every individual must realize, as he travels on the railroads and pays his fare, that the advance to three cents mile is going into the treasuries, while the man who ships his freight also under stands that his contribution of in- creased rates is adding to the revenues of the transportation companies. This comes home to us almost every day. It is certain to show every month in the railroad statements. The matter then becomes one of holding down op- erating expenses.
 We have always thought very high ly of the St. Paul Railroad property. The directors present actions seem to be along very conservative lines in regard to dividends, but 1t is under stood that the company will pay divi- dends when the contract money has been received from the Government. "As now understood under the rail- road contract" says a well-known fi nancial publication. "St. Paul is en- titled to sum as rental that will be equivalent to. $4.35 per share in the 1,174, 113 shares of common stock af- ter payment of ' per cent. on the $116,274,900 preferred"
 Railway equipment securities are strong in the market. They have been reflecting a good deal of what is reported to be semi-inVestment buying in anticipation of new large orders from the carriers in conse quence of increasing monthly earn ings, and better grasp of the railroad situation as a while by the Washing looked that without any increase of consequence in brokerage loans the general market for standard issues has been displaying an underlying strength that is regarded as consid- cred significant, suggesting. as it does a broadening investment demand of a general character, including foreign buying. Standardization of equip ment by the Locomotive and Car Com panies under Government orders is reported to have operated to expand the net of the railway equipment con- cerns by reducing costs that were ex- orbitant
 The splendid victory news from the various battlefronts cannot fair to op- crate for a recordbreaking individ- ual subscription to the Fourth Lib erty Loan now that the new draft law brings home to every family in the land the vital necessity of enlisting all in the Fight for Liberty. The con- tinual retreats of the various Teu- tonic Allied Armies are evidently hay ing a depressing effect on the morale of the soldiers and the civilians of enemy countries. That such an effect is being produced is inferred from the constant talk of peace by statesmen of Germany, Austria and Bulgaria. Complete collapse of some of Ger many's Allies before the Winter is over is more than a possibility since France, England and America have repulsed latest '.peace overtures." We shall battle by the side of the AL lies until permanent peace is assured to the world'' as proclaimed by Gen. eral Pershing. The terms of the American Defense Society "Uncondi- tional Surrender" should be made those of the Allies.
 Higher prices for basis iron prices have been established by the Wash
 
 the copper producers will be favored in this respect later. A leading au- thority says, American capacity to produce copper would probably be equal to all demands if it were pos sible to operate mines and refineries full handed. How to secure maxi mum output of both raw and manu- factured metal is the practical prob lem enga ging the attention of ex- perts." Shares of the metal compan- ies continue to reflect a good mar ket undertone. There is more at tention given to coal securities now that Winter is approaching with it's big demand for fuel for domestic and | foreign consumption. Further cur tailment of non-essential industries is expected in order to provide labor for essential war concerns. Large Gov ernment orders are reported to have been received by the Motor Cempan- | ies.
 We shall be pleased to receive any 1 subscriptions for the Fourth Liberty Loan with which our friends and eli 1 ents may favor us, giving them our