Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-10-31
Coppers Surprisingly Vulnerable

Since the market turned tail, weak
ness has cropned our ~ surprising
quarters. revealing the fictitious char
arter of much of the recent strength.
One Of the surprises IN this connection
Yesterday was the cOnsriruons hnnr!
ness OF the entire copper group. Ana
conda WAS offered in large blocks and
seemed 70 be friendlcss. According 10
the Street theory. pressure on the group
resulted largely because Of the failure Of
the red metal shares to participate more
extensively in the recent rise.
For some days, however. there had
been hints of shading prices in the
metal market. the technical position OF
which apparently was no stronger than
that for the securities.
The only known reason for the de.
clining tendency was the falling off in
demand and the attitude toward the
market. which has been spoken Of in
past weeks on the part Of the South
American interests. notably those con.
trolling the Chile Copper Company.
Apparently some one in the trade Is
unwilling to permit prices to be ad.
! vanced or even firmly held At the mo.
/ ment.
There Is considerably more talk in
! the trade regarding this condition and
a
| mentary nature. II is contended opera :
| tions at the Chile properties have re e
! Gently been increased mainly for the
purpose Of discouraging the American
products and preventing any conIdera
| ton of possible increase IN output
in this country.
As matter OF fact. the leading
t1merican companies are not likely to
make any plans for enlarging their op-
erations mt this time. Officials Of the
big producing organizations know the
situation and will not take steps which
may lead to any disturbance. Therefore,
an increase in production in this coun-
| try Is out Of the question just now.
Become World Mart
"Tt Is &, ing to take New York H..
! lie time to realize that II Is becoming
mart that deals with world issues"
/ SAYS one Of the big New York commis.
! s!on houses. ''and not with its puny
J local considerations which make spr-
| cialty stock movements Of great sig
Lificnnce.
The London market even Of tiftrer
wears ago could break badly IN one
| quarter and enjoy a boom IN another a.
the same time. We are growing through
slow educational process Of develop
ueut !nro n similar situation, with I;
market fully the equal of London .,
, We are gcttirg 70 be u world market,
in which d floor trader may learn tc
admit thai even II he can knock hall
point from the quotation for n mInol
Industrial issue II does not qualify hin
for a sent IN the grand jury OF the
world. The ultimate Judgment of po'
l,tical activity is OF necessity reserve
for six moLrhs after election, when per
fOrmanccs may be considered, but 1t !:
felt thar the interest of the owner o
public issues L. concerned with main
tenance of the present political balance
IN State and Nat!oD.'
Pere Marquette
Considering capital structure Of Pcr'
MarGuet'a Railway Company and ~
proven ability to show good earning
under II, the ) per cent preferred stort
seems 70 warrant an investment rating
Prior preferred has already ATTAINED
that statue, as indicated by the 6.i PEI
cent Weld AT current price Of GroWu,
IS, The preferred yir'dg about - pei
cent at ~ after allowing for per conf
hack dividends still UnpalV. Earning
have been sufficient TO pay tn, IL.
emulation. bur after paying Of 10 pei
cent in January management pursue,
the conservative policy Of paying / pei
cent each dividend period.
Pere Marquette has slightly more
than S43. 900 600 bonds outStanhir. /.
Including equipment issues. Follow!n.
these is Sl1 .20O.ODO prior prcf,rrN,
stock. So 400 900 preferred and Si5,
O4G.O 900 common. Less than 40 pei
cent Of capitalization IS funded debt, {
rare percentage under present condt
tons. As to property security the pre-.
ferred stocks are in relatively stron.
position. with road and equipment in.
vestment items on the balance sheet a
aobut Sl23 000 900
Since reorganization in 1917, exccrt
In 1920. earnings have been ample
giving both preferred issues large mar.
gins Of safety. After deduction for in
terest charges net showed the following
percentages on prior preferred 1917.
11.05; 1918 1888; 1919. 43 ~: 1920
90: 1921. 27.Tl. After dedurtion for
prior preferred dividends, percentag %
earnings on preferred were; 1917. J.4J
1918. LEY; 1919, 1865; 1870, 90
1921. 90
No div vldends have been paid on the
ii, 600 900 common stock Outstanding
Instead earnings have been turned into
improvements to property and enuIp .
ment and 10 building up surplus
which as OF December 81, 1921. stool
at SG,77s,426.
| IknoJ N1..,r..,.