Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-28
TRADE IN STOCKS
HITS ZERO POINT
Dullness Reaches Climax Under
Dearth of Interest and
Offerings

altogetner, deserted. The quotation
boards were often at the mercy Of the
board boys. In several instances the
principals had evidently taken a holi-
day.
A broker whose firm keeps tabs on
Reading remarked that there is con-
siderable speculation in certain quarters
over the eventual fate of the general
mortgage joint 4s. It looks, he said,
as though there will be complete seg-
regation of those bonds, in the dissolu-
| ton process as ordered by the court,
now that the Supreme Court has re-
fused to modify its instructions to the
lower court.
The Reading Co. he said, wanted
modification Of the original order,
making a strong point of the desirabiity
of maintaining the existence of the
joint obligation. which. 1t is now feared,
in view of the Supreme Courts refusal,
will be ignored by the lower court as
not in line with the purpose Of the Su-
preme Courts opinion, and. conse-
quently may order their redemption.
| He said there will be found ways OF
getting around such a proposition. as It
would work a great hardship IL new
bonds are to be issued under two sepa..
rate mortgages at current rates. and
would involve the exchanging of
per cent security for one at Z or 3 per
cent.
A plan, he said, has been spoken Of,
namely, the substitution Of bonds bear
ing the same rate Of interest, with the
same maturity, but issued under sep
companies, with instructions to the
trustee to exchange for the joint As now
outstanding.
In any event, he said, he was certain
a satisfactory solution Of the difficult
problem would be found.
There is a plan being suggested which
would require the railroad company to
take over all equipment and properties
owned by the Reading Company, but not
connected with the coal company. thus
wiping out of existence the Reading
railroad company and coal company, re-
spectively, which could be exchanged,
one each, for each $1,000 bond now out
standing.
Below are opinions of financiers and
financial institutions on current events
which have a bearing on the security
Ninth National Bank-The Ninth
National Bank review says: 1t must
be conceded that the situation as it ex-
and 1t cannot be too often said that
{ now If ever all persons need to use a
e reasonable prudence in their expendi
lures, to make no relaxation in their
efforts toward production and to lay by
store for less prosperous days which
may not unreasonably be expected to
follow in the course Of time"
West & Co.-For the longer future
, we believe railroad stocks generally offer
very attractive possibilities. They are
, selling at or near the lowest prices ever
recorded there has been no speculation
in them; they are not inflated have not
increased their capital stock; in fact,
many have recently been reorganized,
and have had their capital brought into
T line with their supposed earning ca
} pacity. Oil and metal shares, too, are
. low. Industrials alone are compare
lively high, and even among these are
many that have conserved their assets,
and paid moderate dividends, and there
fore have large equities behind their
stock. Others have capitalized their
, assets by stock dividends, and have
increased disbursements, and therefore
invite criticism that they are being
made attractive to the outside buyer.
In few words, 1t is time for great
discrimination in purchases, but also
of great opportunity.
Paine, Weber & CO.-In times OF
panic or depression, such as we have
been passing through, stocks and bonds
Of every class suffer. Perfectly good
securities being sold to protect less
marketable ones or loans maturing or
being called, such issues are forced for
sale at whatever price they will bring
in a falling market.
This affords an opportunity which
!, should be taken advantage of to ex
change securities of doubtful future and
asset value into those selling way below
intrinsic value and having more aggres-
sive sponsorship marketwise, for when
the turn takes place, about rs per cent
of all the advance of the following three
to four years should occur during the
first six or seven months; thus it is
important to hold securities which in
all likelihood will move first.
The greatest advances do not occur
In high priced dividend issues, but in
potential values back of them, such as
Atchison, Northern Pacific, Union
Pacific and General Electric after the
1893 panis Crucible, Bethlehem Steel
Studebaker, General Motors, after 1914
depression, and more recently Linseed
. Corn Products the Cuban Sugars,
American Woolen, Endicott, Rubber
International Paper, Stutz, Chandler
and Cleveland Motors.
1t would appear from present indica
tions that among the first issues to
advance will be the equipments, Goals
and petroleum.
Chandler Bros & Co. Georg,
Cohan had a couple of lines in one oi
! his Cohanesque productions, "If you're
rich, you're the smoke; If you're poor
you're a joke" which have special ap
plication to the present sombre days oI
the stock market which emit the doubl,
of being stupidity dull and insistently
heavy. The rich man with a liberal
bank balance commands the situation
the poor man can lose his money either
by the process of further decline or BY
the absorption method Of paying pro
hbitive money borrowing rates. Mean
/, while, there's the middle winning chanc,
of George Harvey's "Only 257 days
more" or the removal of the bid fol
, one or more friends to give opportunity
for those soon to seek retirement
Eleven per cent money was the answer
! flashed on the screen this week whe1
an incipient rally was threatened Mon
day morning. That is almost the con
tinual retaliation method whenever any
!; good news seems in the process Of In /.
J. cubation.
The Annalist-The foreign situation
is interesting. Following the close q
hostilities, the allied countries were
loaded heavily with copper. This was
especially true with relation to Italy
EnoIanH onI Troppa alan hoH haau1