The Bridgeport times and evening farmer., 1919-05-06
IL. WATSON'S
 WEEKLY LETTER

Influenced by the discontinuance of the extra dividend disbursement on United States Steel common stock, realizing took place in the stock market after the announcement by the directors. As a whole, the market has absorbed this selling with evil derce of underlying strength, and in a number of instances advances in special groups took place account of specifically favorable conditions in the industries concerned. This devel- opment suggests that future activities are likely to be largely of the group order, i. e.. when special attractions lie in certain lines of business, their securities will reflect it, whether or not the general stock market moves in accordance. We therefore continue to believe that conserva tive and selec- | tive purchases of sound stocks in the industrial list will give satisfactory results if made during reasonable re- sessions; while the railroad depart | ment would seem to offer good buying | opportunities on declines.
 General commendation has met the | conservative action of the directors of
 the United States Steel Corporation in
 conservation of resources. It should | be remembered that the company has just as much money, and will perhaps
 carry to profit and loss a little more | than if the extra disbursement had 1 been continued. Stockholders are no | poorer; on, the contrary, they are | better protected; and we believe pur-
 chases of U. S. Steel common made | on breaks during market reactions
 will later prove profitable It is we'll known that the current quarter earn ings are not up to the first quarter returns thus far. Based upon the quarterly report, the corporation is earning at the rate of slightly under S9 share annually. The steel price
 situation continues unsettled, but a
 meeting is to be held next week which
 Is expected to change conditions, and
 may bring activity in steel lines.
 A good demand continues to be re- ported for the sugar stocks, and it is
 said to be based on the prospect for
 a large demand for a year or two
 until the German industries become competitive again. Buying of other food stocks is understood to be of a character that looks ahead. SpecuIa- ton in oils has been over-extended to some extent, but the low priced is-
 sues are in request. It is rumored that Southern Pacific and Reading are well bought. Speculative opera
 tions are expected to be conspicuous
 in the motor group, including rubber shares.
 The recent advances in rates by
 Washington for the N. Y. Telephone Go. and Western Union Tel Co., have been declared illegal. It is expected that the Italian crisis will be adjusted soon. The League of Nations Coven- ant is to include a clause providing for an eight hour day for labor where possible. The sliding scale advance
 in brokerage commissions recom- ,l,~gQ l,-~ A1..z M Governors is in keeping with the tend
 ency of the times and increased ex- pense attendant upon higher rentals , wages and other costs, as compared , with those obtaining years ago when l the original rules were made. The Governors have been conservative ) They gave serious and long Considera-
 ton to the subject, holding meetings
 at which members interested in pri- vate wires and other facilities, receiv-
 ed and exchanged views on the sub- , ject of higher commissions The in.