The Washington times., 1922-06-08
MARKET COMMENT
BY w. s. COUSINS.
Copyright. 1924, by Cosmopolitan News
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NEW YORK. June S.-SInce the
development not only in the invest
ment market, but also in the com.
mercial and Industrial lines as well,
have been closely linked up with
money rates and money supplies. II
is important to correctly appraise
and interpret the movements in The
money market.
Just now the majority opinion,
not only in Wall Street but in the
commercial centc-s Of the South and
middle West, leans to the conviction
that rates will remain low for some
months TO come for the double rea.
son that the resources OF the banks
are swollen to Unprecedented fig.
ures, while the demands from the
commercial and industrial sections
OF the county are not up to normal.
The coming crop movement period
will, OF course. make its seasonal
demandk II would be much better
ior I.Ie country to have our capital
supplies busily employed At high
rates than to have them idle and
competing at low rates In the tax
exempt investment market.
In order TO offset the erroneous
Interpretation OF the proposed plan"
OF the Republic c-Midvale-1nland steel
merger. the heads Of the steel COM
panies affected have authorized pub
lication OF q formal statement out
lining In detail the agreement reach
ed by the stockholders Of the va.
rious companies. Upon the consum.
nation of the plan, the issued ca pital
will consist Of 379.l73. 500 bonds and
other fixed charge obligations, $780,
33l,475 new preferred stock OF 500
par value and 3.30s,6l2 shares Of
new common stock without par
value.
The s5o.33l,475 preferred stock is
to be per cent cumulative, and IL
to be convertible until July /, 1894.
into common stock at the rate OF
four shares Of preferred stock for
five shares Of common. 1t is TO be
redeemable at the option Of the
company at 115 per cent and &C.
crued dividends.
The 3,309,612 shares of no par
value common stock are to be issued
as follows:
To Midvsle shareholders 1.5oo. 900
shares.
To provide in part for the acouisi.
ton OF the properties NJ the Repub-
lie Iron and Steel Company, $4,000
shares.
To Inland shareholders Toe,2si
shares.
To be sold for cash. $40, 1891 shares.
Complete returns from the class
one railroads of the country show
that the net income Of the carriers
for the month Of April amounted to
3.93 per cent on their valuation com
pared with over 5 per cent in March.
The next income for the carriers for
last month was S50,26s,s0O against
$50 3,51l 400 in March and $2e,SIs, GOO
in April of last year, in which month
the roads returned 2.33 per cent on
their valuation. The net operating
income for April Of this year fell
short by $25, ,4S7 900 Of the amount
necessary to realize a return or .
per cent on their valuation and t2S,'
| 2Se, 400 short OF the amount neccs'
sary for a 5% per cent return. the
rate recently decided by the Inter
state Commerce Commission to be
fair. The tabulations ara based on
the reports filed by 201 class one
roads. having a total mileage of $780,
1877. OF these roads, fitty-nine re-
ported deficits in April, twenty-cigh'
being in the eastern district. two IN
the southern and twenty-ntne In the
western district. In March only
thirty.six roads reported operating
deficits.
Car Ioadings Of revenue freight on
the railroads OF the country, for the
week ended May q, record another
remarkable increase over the pre-
yious week. The total OF S2l ,l2l
cars IL an increase Of 2S,662 coEl
pared with the previous week. The
increase over the same week In 1921
amounts to 25,7S6 cars.
Improving business conditions, az
compared with the first five months
OF 1921. are indicated in the repor: OF
the r. w. woolworth Company, just
issued May sales increased Is per
cent over the same month OF last
year, or slightly In excess Of the
average Increase nt 122 per cent az
shown in the comparison OF the
corresponding five.month period
May sales totaled $12,SS3,SS3 against
s1l ,2O3,1s0 last year, while sales for
the first five months Of 1922 agsre
gated $57,7s4,6 sos, against S51, ,4s7,
052, an increase Of s6,297,656. The
sales of S. II. Kress & Co. for May
1922, amounted to S2,610.967, an in
crease OF s400,S0S over May. 1891
For the first five months Of the year
sales stood at $lo,507,4 as against
$1O,367,262 for the corresponding