The Bridgeport times and evening farmer., 1919-10-08
I. |. WATSON'S
 WEEKLY LETTER

l Heeh uH0eF Lle 2nI1ueGce Of eVlQence 1 indicating that the strike for power" by the steel unions was not making
 headway, and also encouraged by the | steadfast adherence of Chairman 1 Gary to the principle of an open 1 shop, which. translated, means equal opportunity for all," guaranteed by 1 the Am erican Constitution to our pursuit of prosperity and happiness. l The outlook suggests & continuance | Of strength, with special groups that
 have Jagged behind displaying ten | dencfes toward betterment under in-
 vestment buying as well as short cov- l ering.
 | Investment is partly due to signs | that money rates may become easier i SlaclSening of industrial activities, due
 to strike holdups, generally operates l for an accumulation of "business
 money" at financial centers, and this 1 seeks employment in Wall Street i We We impressed by the activity l of UnitSd Retail Stores, which seems 1 to offer attractive speculative-invest i ment opportunities during recessions. i In an analysis of the position of this i company, Coming Events says: "Re-
 tail Stores is likely to be one of the 1 greatest selling organizations in the 1 world, covering miscellaneous busi- i ness and possessing a management whose salesmanship and good judg- l ment have become famous in f1nan- | cial circles.
 l Announcements of mergers pend l ing and absorption of other concerns l are features to watch in connection with Retail Stores, which is not as l yet paying dividends.
 1 The United Retail Stores Corp, the 1 world 'ECh3i iT'' wifi "a United Cigar Stores and other tobac- co interests allied with or controlled 1 by 1t in conjunction with the United 1 Retail Candy Stores, Inc, stands to | benefit enormously by the prohibition 1 law on account of the fact that for : mer consumers of liquor are turning ] in great volume to tobacco and 1 sweets.
 The successful Whelan organ1za- l ton, the United Cigar Stores Co.,, | forms the nucleus of this Retail | Stores Corp, and rumors are persist 1 ent of absorption of important Duke 1 Whe1an tobacco properties and new 1 candy concerns. The financial inter 1 very powerful" A new stock of the
 Whe1an group, American Tobacco i Securities, was brought out Friday
 on the New York Curb Market It is 1 considered one of the very best of 1 their properties, and we look to 1 see the stock sell at higher figures It opened at 7S-79 Friday
 1 Southern Pacific has displayed 1 strength on the issuance of a state
 ment by the Association of Railway 1 Executives, addressed to the Inter i state Commerce Committee of the | United States Senate submitting ob- 1 jections to the Cummins Bill for the ! reconstruction of the railroads Part 1 of that statement says: ''This problem l must be considered from the stand 1 point of stockholders as well as bond l holders.
 l Bond interest comes before divi- 1 dends of stock, and a limitation of l net earnings ample to provide in 1 terest, might still ruin the stock 1 holders; whereas the stockholder can not protect his holdings without at
 the same time protecting the interests | of the bond holder.
 A limitation on earnings which l bondholder could perhaps regard with | equaninity might be destructive of | the interests of the stockholders. The 1 limitations provided for in the bill would in our judgment effectualIy 1 defeat the apparent desire of Con gress and of railroad economists, to finance railroad improvements par 1 tially by the sale of stock rather than solely by bonds, since it requires the 1 risk of the business, while denying
 him the right to profits made from reasonable rates, thus making his re- l turn uncertain in bad years. and yet little, if, any, greater than the return 1 on bonds in good years"
 Interstate Commerce Commissioner l Clark favors the Warfeld plan for railroad rate-making. President Req | of the Penna. R. R. expresses the be- lief that the Cummins Bill if enact ed into law, would be detrimental to
 the progress of the railroads.
 Hon. Charles E. Hughes says that ! provision of the Cummins Bill taking excess earnings for the Government i is unconstitutional. A big gold
 stream is headed for the United States, says the National City Bank ous times to come. Great Britain I and France are reported arranging i large loans here. The United States 1 Supreme Court Is expected to pass l this month on the question whether 1 stock dividends are taxable, and if its
 verdict be that they are not, some | 'srneIon-cutting'' is anticipated among | industrial concerns.
 1 Senator Owens says among the 1 principal features responsible for the | high cost of living are gold, Federal Reserve and credit expansion, dislo i cation of peace industries, hesitation of capital, labor unrest, war ta-es and l extravaganza.
 l Sinclair Consolidated Oil is at l tracting a good deal of favorable 1 comment on account of the influen- tial backing the ompany has and the | great facilities collected for handling 1 oil from the well to the consumer. A big market is expected for it 1 later. Tobacco Products has been strong and active in connection with rumors of absorption by the United Retail Stores enterprise. Shipping
 from the United States to Great
 Britain has been suspended pending
 settlement of the railroad strike in | that country.
 Senator Edge of New Jersey, who
 is for peace treaty reservations has 1 urged the Senate to speed action to
 remove uncertainties in the business | world.