The Washington times., 1922-07-20
gsl BUSINESS AN Fl NANCE oA4Aas#asE
Market Comment
By w. s. COUSINS.
(copyright. 1879. by Cosmopolitan News
Service.)

Service)
NEW YORK, July 20.-One of the
,incidentals of the forward movement
In the stock exchange Is the quiet
accumulation of good dividend paying
Industrial and public utility stocks In
lots of from two 90 ten shares, by
conservative investors of small
means, who do not relish the idea OF
having their modest fortunes swept
away by marginal purchases Of spec
ulative stocks, or by the failure of
unstable brokerage houses. Some Vt
the investment organizations 10 a
thriving business In small lots Of
hlgh-grade stock on order dire It.
without the usual formality of pro.
motion" or. unsolicited suggestion.
Dealers In bank stocks, which con-
stitute "a conservative high. priced
investment prices running as high
as $1,000 a share) have on their
books a large number OF customers
who are in the market for few scat
tering shares of these stocks.
A few weeks ago, the New York
Telephone Company made a special
offering~of $25 ,O00, 900 of 6 " per cent
cumulative preferred stock. announc,
ing a preference for subscribers 10
the services of the company. Nee
less to say, the financial department
of the company was deluged with
orders, and the final compilation OF
these orders Is extremely interesting
as indicating not only the apprecia'
ton of a high grade Investment, but
also a bounteous supply of surplus
cash in the hands of American in
vestors. The total applications were
about three times the amount offer
ed. More than 20 per cent of the
applications were for ten shares or
less and more than so per cent for
five shares or less. More than 22.00C
applied for one share. 1900 for two
shares, and $500 for three shares
There were $4,000 applications for
the maximum allotment of twenty
shares.
The proverbial thrift Of the
French nation has been built up on
the natural instinct OF the Wrench
man to invest his modest surplus
In high-grade securities, preferably
the bonds of his own government
On this side of the water the
tendency has been TO burn up
rather than place surplus funds In
a position to expand and multiply
But this Is a new country. and II
takes time to learn.
Theoretically. at least, the move
ments OF prices in the stock market
should jibe with important develop
ments in the business and economic
situation Of the country. This rule
however, seems to have been upset
during the past week, for the mar
ket tickers have been clicking along
nerrily while news Of adverse char
acter has been flooding the finan
cial district. At the present time
railroad and steel stocks make ab
solutely no response to the fact
that both these industrials are
closely tied up. the current weekly
summary Of the iron trade authori
ties being anything but compli
mentary.
There are a number Of plausible
explanations for the situa ion al
mentioned. One is that the pool:
who take a liking" 10 a particular
stock can do as they wish with II
and frequently move II up or dowr
in defiance of the general trend oi
the market. The other is that Wal
street is looking far beyond The
present unsettled period to season
of unprecedented prosperity which
10 soon to be ushered in and which
no temporary embarrassment car
frIghten away.
To enjoy the advantages oi
cheaper transportation Of raw ma
terial. a greater diversification oi
products. advantageous location oi
plants and cheaper selling and ad
ministration costs, because of larger
, operation under one mana cement
such as had enabled the steel cor
poration to earn profits while the
independent companies were pilins
up losses, the smaller steel rompa
| MES must bpild plants supplemental
to their own in different localitie.
throughout the country or cornbint
their properties, or some OF them
| under one management; this is IN,
reason outlined by the representa-
tives Of the Midva1e-Republic-I -Inlant
Steel merger before the Fedcfa
Trade Commission and which It /,
expected will be accepted as suffi
| n. -f- l.,