Evening star., 1920-03-25

ers were able to make some head
| way was not so much because the
| money rate ran up again to Il per
| cent. but because the share list had
| not had its proper amount Of reac-
| ton and REORGANIZATION of StOcts
| sold at the recent high prices was not
| complete.
United states steel.
The completed income account o!
| the Steel Corporation for last yea'
| was no news to Wall street. 1t mere
, ly agreed with the preliminary figure
| issued some time ago showing the ba J.
ance available for common stock OF
a little over $40 a share. Interest
centered upon the balance sheet and
| especially upon those items which 90
| to make up the intrinsic value of the
common share capital.
Originally this junior stock was
pretty much all water. Bonds and
| preferred shares represented a fair
valuation of plants. equipments
mines. etc. but a value had TO be ere
ated for the common out of undivided
! surplus earning. The current state
/ ment shows how remarkably surcos--
| full has been the upbuilding process
| for working capital at the close OF
last year-stood at $515. 100000. Tha;
! is. the total of quick current assets
over liabilities was greater than the
! total par value of Steel common out
| standing. The meaning of this is. OF
course. that the intrinsic or asset
! value of Steel common is definitely
established above par-that is. at its
| current selling price.
| The statement so often made that
| buying Steel common around 500 a
| share is very much Ike buying gold
| dollars may be better understood in
the light of these latest figures 1t is
/ also to be noticed that. despite the
| heavy falling off in earnings during
! the year the corporation was able to
! add S26 100000 to surplus provide
| S3S. 200. 900 as special fund against in
ventories. and appropriate for depre-
citation. replacements and sinking
| fund on bonds of subs sidiary compa-
nes $31 100000, or nearly $4,000, 900
more than was appropriated for the
! same purpose in 1918.
| Copper shares strong.
| While copper stocks did not resist
! the general decline of sterday, they
| We're very we'll bought on the way
down. and this buying. which look ed
| to be a genuine accumulation. was
| very noticeable again during the early
| unsettlement this morning. When the
| market turned upward the coppers
| Joined in readily. OF course, the whole
| outlook for the copper trade would be
| radically changed if the plan extend
! Europe goes through. as now appears
| certain. Given a chance to buy freely
| in this market. the central empires
! and France alone would take enough
| to clear away the entire remaining
| American surplus. Moreover, an in
! crease in home production would then
| be certain.
| At present the copper mines are
| operating at about two-thirds Of ca
pacity. one reason why they have
| not expanded more is because of the
| difficulty in getting labor. But this
| obstacle will not stand in the way
of very considerable increase ir
! operations. once Europe begins to buy
/! on large scale. The confidence fell
/ by dealers in the metal is reflected il
4 the reluctance to accept orders fol
Il any period beyond June and the re-
/; fusal to enter upon any such con
tracts except with the preferred lis
/ of customers. Small sellers were
asking 10 cents for copper today. al
though the prevailing quotation OF
larger lots remained at lSa4 cents
Pittsburgh and West Virginia.
| The Pittsburgh anI West Virginia is
i one of the railways which did mo-
have contract with the government
/ the road claiming that it was entitled
to much more than the government
] guaranteed on its property invest
ment. Efforts are still being made t'
/ settle this claim. and il is said tha
I should some sort of solution be ar
rived at it would most certainly be
/ much more than the original govern
] ment offer. However. the railway
/ business is only small part of the
(. Pittsburgh and West Virginia rail
] way, its big revenue coming from its
coal properties and placing the rail
I wav in the same class as Reading.
i Neither Pittsburgh and West Nir.
| ginia nor its subsidiary West Side
/ Belt railroad had a contract with the
] government On behalf of both roads
about S1000.000 compensation addi-
tional to the certified standard return
is being sought and it is said that The
I, company has a good claim. The com
pany in its most recent report showed
| slightly over, per cent earned on The
! 100000, 900 common stock but will
! situation. it is said tkat these earning:
have every possibility of mountins
! much higher.
4 The stock. which has looked to b,
under accumulation recently. has beer
| bought. it is report ed. on the coal out
/ look due to the government lifting O.
its price restriction the first of mex
month The coal properties of thu
company are extensive and very val
liable. The Pittsburgh Terminal Rail
road and Coal Company. Il subsidiar!
which owns the coal mines has abou
vania and FIVE complete and moderr
mining plants are being worked
/ National EnameIing.
National Enameling. il was report
ed today, earned in the month of Jan
uary alone enough to pay all of it:
hNed charges and the preferred divi
dend for the year. 1t was also sale
that the officials expected the earn
ings to continue at, the same rat.
|; during the rest of the wear but tha
the earnings for the remainder of tn,
year would be placed to the credit O
the common stock. National Enamel
ing is one of the companies which
were made by the war and is still con
tinuing to benefit greatly because o
the absence of foreign competition
The company stepped into the trad,
formerly held by the big foreign
| makers of enamelware and is now ;
| large exporter of this class of good
to South America.
Wall street sentiment was decided,
|. mixed today before opening Som
of the writers of market opinion wer.
of the belief that stocks could b.
bought on all weak spots today for {
sharp recovery of prices: others were
of the belief that the break which
came yesterday with The run-up in tn,
money rate was only the start of de
! cline which would go some days fur
ther. However. it can be said thai
these latter writers were much in the
! minority. Those who took the posi-
ton that the market was Il purchase
on all weak spots said that the break
! was simply normal reaction in d
F.; bull campaign and that stocks would
| go back at least to their former highs
! before any serious break could be
expected.
| One of these letter writers who ha.
| been very correct or the action of the
g1-.,