Evening star., 1920-03-16
SPEC|A[T|ES LEAD
ABETTER MARKET.
BY STUART r. WEST,
SpcciaI COrresDOndent of The Star

WALL STREET, New York. March
16.-The collapse of the latest Ger
man revolution. as indicated in this
mornings press dispatches. is reflected
in prompt recovery in German ex-
change and in higher rates for ster-
ling. Mark exchange. which had got
as low as 1.05 yesterday. rallied to
1.33: sterling once more got above
$40 1t was a question. however.
whether the rally in sterling was not
due quite as much to the confirmation
OF Argentina'S willingness to lend to
Europe as It was to German news.
Except for the Improvement in the
foreign exchanges there was not
much that was new in the outside sit
uation today. Call money held at 9
per cent which was no surprise. be-
cause no relaxation is looked for un-
til toward the end of the week. when
release of the income tax money be-
gins to be felt Left without any
fresh incentive. it was simply a ques-
ton in the stock market of whether
prices had gone high enough for the
time being to bring out realizing
lies in quantity sufficient to check
the advance.
Realizing Partly Checks.
In parts of the list profit-taking was
large enough to produce such a check.
This was true in the Steeis, most of
the equipments and various other IA
vorites of preceding days. But to Off
set the hesitation in these quarters.
there were many new leaders. partlcu-
larIy during the early part of the ses-
sion. All the motor shares were in
active demand at new high prices for
the current movement.
In the oil group. Pan-American and
Texas Company were the features of
the jump. in the latter fitting in with
reports that another stock dividend is
in prospect.
a similar motive was back of the
advance in American Wool Atlantic
Gulf and in United Fruit although it
may be said in the case of Atlantic
Gulf that the present intention is not
to make distribution of the stock
until next year.
Some Extremely Strong.
From this selection of individual
shares for leadership it was evident
that the possibilities following the
Supreme Court decision in the stock
dividend tax case were still the prime
consideration in the market move
ment. International Paper was ex-
tremely strong. in anticipation of
highly favorable annual report due
very soon now.
Industrial Alcohol. on which senti-
ment is very enthusiastic, continued
its advances.
American International. American
Can. the Sugar stocks, United States
Realty and Hides and Leather prefer
red were among the new specially
features for the day.
The coppers We're bid up sharply
tor no apparent reason except that
the failure of the German uprising
makes the outlook for the contin-
uance of the German demand for cop
per metal rather brighter than it was
Il-h ii 10 hpp nf int tor n
war.
International Paper.
1t is pretty near time now for Inter-
national Paper to come out with it's
1919 report. This report has been so
often forecast that it will occasion no
surprise when it is published. The
expectation is that. after all taxes
and other charges. the surplus for the
common stock will be at least $25 a
share.
AS already printed here it is COM
puted that the company will double it's
1919 earnings under the new price scale.
If this proves true we shall have the
astonishing fact at the close of 1920 that
International Paper will have in the last
FIVE years earned and Saved-that is put
back into property-a sum equal to
nearly twice the present selling price Of
the common shares.
American Can.
The persistent accumulation that
had been going on in American Can
since the unfavorable report for the
year 1919 was issued is now explain
ed by the fact that there is every rea-
son to believe that shareholders will
There is also another reason for the
buying, which has been largely for
inside account The figures for 1919
indicated about $3.50 share earned
on the stock. but this did not in
clude earnings from war contracts.
Earnings from war contracts of
100000 would be equal to about $40
a share on the common. and the high
er figure would be $12 a share. In the
four years. 1916-1919. the company
earned an aggregate of $47.26 share
on the common, without paying divi-
tai increased from s22, 2,626.00O to
$3s. $780, 900 or from $55 a share to $94
share.
Pierce Arrow.
The annual report of Pierce Arrow.
which is expected to be made public
shortly, will show net profits of ap-
proximately $1,S0O,000 after federal
taxes. it is learned. Dividends on the
preferred will take $800.000 of this,
leaving a balance OF $1;ooo,ooo' or -
a share for the 260.oo0 shares of COM
mon stock. The 1918, net profits on
the common. after all dividends and
taxes, were $7.S6 share. The 1913
earnings of the company were the
poorest in it's history, this being due
to the fact that a large part of ca
pacity was devoted to war work.
which was not completed until the
end of the second quarter.
Remington Typewriter.
Buying of Remington Typewriter
common, which has been quietly going
on for some weeks past, has been ap-
parently for the account of people who
are anticipating the publication of the
annual report, which is due in week
or less. When. in burst of specula-
tive enthusiasm, Remington shares
sold at 1O5 last fall, good deal of
outside commission house buying
came in from 95 up. 1t was the sell
ing out of such purchases which sent
Remington down when the general list
of industrials declined in February.
The report for 1919 will show more
than 21 per cent earned on the junior
shares, but more than this. it will re-
veal an aStoniShingly strong cash posi-
ton.
The early market having shown
how much it depended upon the stock
dividend settlement, 1t was not sur
prising that even a very remote Sug-
gestion that last weeks decision
might be nullified as the result of ac-
ton by the radical element In Con-
sress should have disturbing ef-
feet.
Nevertheless, the market having had
enough of a rise to make it some
what vulnerable to any development
however unimportant, it was not sur
prising that the agitation of this trick
tax scheme should have caused a good
deal of speculative selling and abrupt
unloading of some of the recent in
dustrial leaders. The decline starting
in the early afternoon was sharp
enough to carry the list back for the
most part Well under last nights
final