Douglas daily dispatch., 1928-01-01
Cattle Bring Douglas Area Over 81 OOQ 900 in 1927
BUSINESS FACES COMING YEAR
WITH STEADFAST CONFIDENCE
FUNDAMENTALS REGARDED SOUND

discussion as to their effect upon
interest rates.
Stock Market
Unlike the stock market OF 1926.
which was upset by drastic react
ton in March, the rally in prices was
accompanied only by moderate re-
cessions in January, June, October
and December, extending the dura-
ton of the rucrent "bull'' market to
lnearly four years. The average of 20
leading industrials compiled by The
Associated Press moved within a
lrange OF 43 points and the average of
I20 leading rails within range of
80 points, both closing the year
within a few points of the higher
levels.
Prices Of steel shares followed close
lily the trend of trade conditions
which showed considerable promise
lin the Spring, became disappointingly
dull in the Summer and Fall and
developed signs of improvement as
the year closed. U. S. Steel common
Twas bid up. to a new high following
the declaration of 40 per cent
stock dividend, which preceded by
few months the death of Elbert H.
Gary, for more than Is years head
OF the corporation and recognized
I spokesman of the industry.
/ Talk of steel mergers was. rife, but
the absorption of Trumbull by Re-
public was the only important de-
velopment. Some disappointment was
caused by failure of Bethlehem Steel
to resume dividends on common, al
though such action, barring unex-
pected business depression, is widely
predicted for 1928. Sensational gains
were recorded by Midland Steel Pro-
ducts preferred, American Machine
and Foundry and American Steel
Foundry.
Railroads
Railroad shares, particularly those
of investment merit, enjoyed a
substantial advance Failure of the
Interstate Commerce Commission to
approve pending major consultations
and decisions against the railroads in
the lower courts on the disputed
'recapture clause" of the Transpor-
tation Act had a tendency to chill
speculative enthusiasm. Despite the
lSet-backS, the promoters of the Van
Sweringen and Southwestern rail-
road mergers continued efforts to
organize systems which would meet
with the Commissions approval East
ern railroad executives also held a
series of meetings in an effort to
iron out differences over division of
lines along the Atlantic seaboard
The st. Paul reorganization was ap-
proved by the U. S. Supreme Court
after long and bitter fight by
minority bondholders.
Dividends were resumed on Chi
cago, Rock Island and Pacific COM
mon. The annual dividends on Bang
or and Aroostock, Chesapeake and
Ohio and Southern Railway were in
creased. Directors of the Missouri
Pacific appointed committee to
consider elimination of an accumu-
lation of nearly $50 in dividends on
preferred stock The New Haven rail-
isrOad paid its debt to the Government
! through the proceeds of a preferred
stock issue, and early resumption of
dividends on the common is looked
for.
AutO1nOtive
Shutdown of the Ford plants,
pending the introduction Of new mo-
dels in December, generally was held
| Irresponsible for the decline in auto
mobile production Unusual prosper
| ity was shown by a few companies,
particularly General Motors, whose
sales and earnings broke all records,
and ChrySler, Nash, Studebaker, Hud-
Ison, Hupp and Packard, but many
smaller companies made poor show
ling. Automobile executives have pre-
dicted record breaking production in
1928
Copper shares developed unusual
activity and strength in response to
the improved trade outlook, now
considered the best since the war.
Greene Cananea, the sensation, more
than quadrupled in quoted value up
on the discovery of rich ore body
on its Colorado property.
Oil shares continued under the
depressing influence of over-product-
ion. Discovery of prolific oil fields
in West Texas followed the tremen-
dous output in the Seminole area in
Oklahoma, which, however, later
showed signs of petering out. Agree
ments to curtail production, though
successful in some localities, failed
to influence greatly the general sit
uation. The decisive stand taken by
the American Petroleum Institute to
conserve oil resources, approved by
Government authorities, aroused hopes
of a better outlook for 1928. Several
Oil companies were forced to reduce
or omit dividends
Rapid progress was made in the
development of the South American
oil fields, particularly in Venezuela,
due to pRactical shutdown in
Mexico because of the controversy
over land laws. A Mexican supreme
court decision in favor of the Ameri
can Oil companies held out hope of
settlement Purchase of Russian
Soviet oil by the Standard Oil COM
pany of New York started bitter
controversy between that corporation
Continued on Page Three)