Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-04
GOSSIP OF THE STREET
OPTIMISM FELT
IN STOCK CIRCLES
Bond and Investment Houses Ex.
periences Big Selling-Other
Financial Items


/The pessimlsm of Thursday In the
financial district gave way TO a pro-
nounced wave of optimism yesterday.
Especially was this changed condition
noticed in the bond and investment
houses, many of which reported the best
selling day they have had for some time
past. and with a deluge of inquiries
which they contend usually precedes
selling wave.
On the stock exchange the oils fur
nished the spectacular movements OF the
day, particularly Mexican Petroleum
Customers in some of the brokers' off,,
ces were confused over this situation.
especially as internal conditions In
Mexico at present are not considered
particularly favorable toward outside
interests.
There was well defined rumor in
the Street yesterday that the L. G.. /.
would in all probability ask for re-
newal OF the issue of notes which are
coming due shortly, and the general
opinion Is that there would be no diff
Guilty In carrying out such a plan. One
banker. however. said that If the notes
are renewed IL would baye to be on a
71s per cent yield basis.
There was some talk in the financial
district yesterday. in n confidential way.
about an issue Of 100000 per cent
preferred stock of the Donner Steel Com
pany. Inc. This company. It is said.
purchased the New York State Steel
Company, of Buffalo. y. V. The stock,
1t Is said. will be offered at % and ac-
crued dividends. The Donner Steel Com
pany, It was reported. is thoroughly
equipped TO manufacture everything in
the form of steel. has its own mines and
docks, and Is located on three leading
railroad systems. Bankers and brokers
spoke very favorably OF the concern.
There was little comment on the state
ment by Director General of Railroads
McAdoo yesterday before the Senate In
terstate Commerce Committee. Bank
ers and brokers who expressed opinions
said that as far as the condensed news
pa per reports OF the matter were con-
cerned there was nothing new which
had not already been surmsed from the
various fragmentary statements made
by Mr. McAdoo on the subject from time
such opinions as were given was that to
do the subject justice it would be neces-
sary to read Mr.. McAdoo's statement
in full.
In few cases where the New York
Interboro was the subject Of discussion
| Yesterday the statement made in Sep
tember. 1918, by President Shonts when
the Interboro notes were being sold, and
| the one made by him in connection with
an increase in fares "A few days ago
were the subject of comparison, and the
question came up as to whether the In
terboro is as badly off as the latter
statement would indicate.
Major Thomas Johnson Ward, OF the
banking house of Cassatt X Co., after
an absence Of about two years, has don
ned civilian clothes and is at his desk
again trying to pick up the tangled ends
which he left behind when he joined
the general staff of General Peyton
c. March in Washington. u. c.
Speaking of the much condemned and
abused term RED tape the Major said
that II Is also n very much misunder-
stood term. Ile said he found 1t always
| the shortest and quickest way to re-
suits. A man, however. he said. must
have his nerve when II proposition is
nut up to him to decide at once 1t is
| Tho nassing of it along to the other
| fellow. who in turn also passes it along
| that has given the socalled red tape
IT'S black eye. Red tape he said is all
right and IL absolutely necessary but
| the thing that is wrong is what, IN the
yernacular. we call Passing the buck.
| Considerable surprise was expressed
vest sterday when it was announced tha'
| following an executive meeting or the
| American Telephone and Telegraph COM
pany there would shortly he new
| financing. totaling $4,000, as it seems
a very brief interval since their last
| issue.
| II was said the new financing would
ta,,e III, form of s25.00O.O00 New
| York Telephone debenture 6 per cent
bonds. and S40.OOo.000 five-year pei
cent subsidiary notes of the American
Telephone and Telegraph. OF this, $40
| O0O. 900 will take care of per cent notes
due February ! and the balance vii
he utilized to finance new extensions
equipment etc The issue or Sfo'ooo'oo'
notes. which mature on February ]
was loated a year ago by five sub
sidiary properties.
Eypressons of opinion in the hnancia
district yesterday over the announce
ment of the sale Of S25,000.0OO ten
wear 6 per cent bonds of the Anacond;
Copper Mining Company to the Ma
tional City Company and the Guarant!
Trust Company, of New York. were vir
tually all favorable. The bonds ar
offered to the public at 9sH and inter
est, yielding close to 6l4 per cent. tn
bonds offered as above are part o
an authorized issue of s50.000,000 ant
will be known as Series A.
In speaking of this issue. banke
who is largely interested in copper Sc
curitles said he considered the bond
ampIy secured, although he did no
agree with all of the statements mad
by John u. Ryan, president of the com
many, especially his forecast as to tn
probable future earnings. He said tina
Mr., Ryan had very wisely said In
statement discus-sAg the copper outloo
that at is difficult to predict the imme
diate prospect of the copper business,
but in making his calculations for tn
future he evidently bases them on con
ditions of cost prevailing from 1911 I
1913 and other pre-war conditions whic
even the most optimistic do not dar
to hope for. especially that large tier
which enters into every such calculato
today-the question OF wages. But
said, the security back OF the bonds
all that could be desired by the mos
conservative investor.
The following is Mr.. Ryan's oplnio
or the copper outlook above referred to
"It is difficult to predict the imme
diate prospect of the copper business
but there is no sound reason for pessI
, mism In regard to it, after a fe'
, | 80 papaecarV a1instmant from