The Washington times., 1930-07-29
The Amusements

hitting a new low for the year
on the renewal of ru1nors that
the $4 dividend would be cut
when directors meet August 6.
This column has consistently
warned of the pressure against
the stock and advised against its
purchase. The advice still holds
good until the situation clears.
The company has been expand
ing rapidly of late and the sharp
drop in earnings raises the pos
Sibility of new financing despite
official denials.
The break in Warner failed to
have much effect on Fox, Para
mount, Loew's and Radio-Keith.
Paramount's earnings for the half
set, new record, and the other
three are making money. I be-
lieve these four will work their
way higher on their merits and
prospects, and recommend their
purchase on further reaction.
Coming to Life
The utilities woke up with
bang yesterday and set the mar
ket pace throughout most Of the
trading. It was notable that
Foreign Power, Electric Power,
American Power and National
Power were in the forefront of
the advance, indicating renewed
activity by their sponsor, Electric
Bond and Share. The utilities
have been behind the rest of the
market, and the move brings
them more in line. I wouldn't
follow them too far and advise
profit-taking on further bulges.
see nothing in their earnings
outlook for a sharp run-up, and
large-scale mergers aren't likely
with the club Congress inquiry
still hanging over their heads,
even though suspended for the
summer.
The steel report at the close
of the market today, as the
steel is concerned, is already in
moth-balls and hanging in the
closet. Estimates of about $3.50
for the half have been accepted
and even the most ardent optl-
mist isn't expecting dividend
extra. 1t would be complete
surprise if the latter occurred.
Placing Morgan unqualifiedly in
the bull pen and the market
would certainly see lot of
fireworks" Wednesday.
Two Coppers
Continued heavy buying of
Copper for foreign account found
reelection in better market
for the red metal shares. I am
still bulliSh on the leading cop
pers despite the sour note from
overseas that African mining in
terests are planning a huge re-
finery near Liverpool to supply
Great Britain and the dominion.
The Rhodesian mines with their
low costs of production may be-
come a menace to the American
producers, but I believe that ex-
panding use of the metal in in
dustry will take care of surplus
output. American Srnelting's ad-
ditional acquisitions in the foreign
field add to the stocks attractive
ness, and I wouldn't ne5fcate to
buy Smelling or the other
leaders for a pull. And the old
theory in buying copper stocks
still seems sood, buy them when
the red metal is selling below II
cents a pound, sell them when
copper crosses Is cents a pound
and let someone else worry about
the rest of the profits.
I hear of wellinformed buying
IN United Electric Coal on the be-
lief the stock is under priced at
current levels of a round SO a
share. The company's earnings
for the past four years have aver
aged better than 50 a share, equal
to more than 81 on the old stock.
Better earnings are expected as a
result of the recent freight rate
revision.
Here and There
hear insiders have been buying
Union Bag and Paper, and there
are merger rumors. SkepticS,
however, point out the stocks
erratic career and its failure to re-
spond to similar reports in the
past.
Goldman-Sachs is attracting
speculative buying on the theory
that all the bad news is out and
thai the stock should do better.
The next report is expected to
show a book value of over $50 a
share. but investment trusts have
long way to go before they win
back public favor.
Expiration of American rsle-