South Bend News-Times, Volume 36, Number 152, South Bend, St. Joseph County, 1 June 1919 — Page 26

' srxn.w. .irxi: i. to to. THE SOUTH BEND NEWS-TIMES

'i (NEWS OF THE WEEK IN THE WORLD OF BUSINESS Stocks and, Bonds Manufacture Domestic and Foreign TrQ.de

BE BEADY The. Financial Outlook a NIT? Trend of the Markets Stocks Grain Livestock Cotton klLT i TO EHFORGETEflMS When Will the Turn Come in Stocks? Bargains in Preferred! Stocksand Bonds Railroad Situation Will Be Satisfactory Settled

MAY MOT REQUIRE i

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Liquidation of Stocks of War Materials and Equipment . Is in Progress.

WhethT rr not 0rmnny Mpn th r-ac trvaty, th futiir- of Kurop; i unttl'-d. Th aliifs must I prfpi'" to nforco thfir man-d,it-s ;t any' tim within- the p-rioJ jiK-in-fl for paymr-nt. Oormany will yeok mf-aSis (T evasion or r.isicf rc sitancv The recovery of busings? neurl not b Ion? d(!;iyJ in ppit of this uncertainty. The Kovprnmcnt in making pro-KT-k in thf .liquidation of Hurplu vnr materia!is .and -quipment. Th w.ir department has ?oM fcoods for 4 JCR.OOu.ono to- dato at per cnt. of th"ir orogln.ll cost with little dislocation to b u:in It has terminated 1C.000 contract". Claims in pettlmr nt of unfilled contract" .'iKKre-itinis' f.".5V,f.00,H'O barely reach J700.000.fjOO. Money I Iii' I !ahr. ; Money rates ha ben easier after the recent hrirp x&tnrn. Hankrrsj report no Imme.Kat need for restrictions on the use of money In I t-culative dealing, alttmucrh brokers' loans exceed $ 1 ,0 (j.t) fut.oo 0. The larg oversubscription to the Victory loan has given nancea halthy tone. I)i'idend and lnt'rr.-t payments next month will total f tT". 00,000, nearly $20,000,0-0 below a year a?o, due largely to the reductiom in I'nited States Steel dividend.--. Wall street U optimistic r grffir th dividend outlook. Humors are current that h number of luro- t orporations meditate increasing dividends. Huiltlin l'ncouragtsl. I'uilding reports afford encourage, merit. Many large cities made phenomenal gains during .May over a year ago, although as yt th movement has not attained largo proport ions, owing to hih costs and wage uncertainty. . ank clearings maintain their hich level and business failures are few and unimportant. The stock market continues very active and bullish.

Local Markets

GRAIN AND IT.fl. (rrrtrf Pally by O. tT. Brn, tt

Mill. Ildraul 4r.) , MIKLL riiltX Pn.vinp J1.50 OA IS iug Ii".-; elllnc S.V pr hu. i KHAN Selling 1 .V) bunlrl. j M!IDI.IN;--Sen: ii w0 hundred, j flJuri'i:i KKfcl --f Jl.ujc. ttuo per ewt. SCKATCII KKKD- Selling $4.00 peri ewt. I

HAT, STIIAV AND f KfD. (farrwUa Holly ry th We irr MllUr Hour m4 t d C .. 420 H Mkhlffan.) HAY Tajing $ to helliug

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M'KAW 1'ajing 3 to JI2. telUng 73c bai OATS Payiijg 7l' . t-fllin SO io h.V. SHI.LL i nl;.N'-r.i).wi; $1.U. helling II hi i to '.0 EAR i UK. Pajing f 1. 10; telling II. v t J.'J TIMU1UY SKLD- Pa;ioc f" Pr hu; CLUVKU SLIM Payin- t-5 tu.; aellIdj; t iO per bu. AlSVKH CmV'tU ALTAI. i'A (Miiitana grown $16.00. feUY KANS $1.0. IUW I'tAS i.UO.

LI VI. STOCK Crr-til Dally Oy UJur Bia., ft. gas M.. MitbaiTaUa.) rlCAVY r'A'l ST KEKS r air to good. fftKV; prime. lCilUc.

Hti;s -l ;''7i:- p.s, vmj II.. lx-ic; 17."- up.

SHE l S. CTr-Ud 1 1 a I iTimrr Rroc. Se4 More. ZZS Michigan M. ALSIKK to $20 W. IU.I.K liIlASS-$;i.75 WH1TK CLOVUK-UVV) t. f.i5 J AI A.N LS K .Ml LLL i $ ."O to $3. sw KL r n.ti i;ii-$is.(c. M A M MOT II CLCVKU-$ JO.OO. ALKALLA $17.W. rn:i.i i'KAs-N:.; t $i;o "MV I'LAS $,t I i liw'! tl.oviii;1 1 m nn - $;..;. t . ih. (OK N--JS'l.7."ii I 00 KiIilKK m u N 70. KLI ImI $,TUo. M'Ki.V KYL $2 40. mv ki:ans $j.(hi t ..$i.-.o MM I.N i;kss .; jer t u s pi; LIZ 4 W WIN IKK OK 11 AI i; Y KKli:iI-$1200 HAK1.1A --Ke:irloi. $1 X O.MU.N SKIS N!,V t,, I ANK pr b:i MM- l.twi.i;s-:v

rOtl.TR AM MET! irrrertd lally tty .liminif'a MarUt, i 1ZS C. -fferofr Blil BKF.F- K avt. - : 1 ' lu g. 20: LA 1; I Vying. -" . .;.:ng. öö--.

I'KOIH ( I M ltkl.r. (( prrn Ini loii l Ihr Hrot hrr I no J C rvr . i3 N. lnin t. HI l'ILK ...Mi 1 ( ' i S r !!) r y hnit r. p. i) ltig .. ;! us t'l p. ;, i ; i -u!if r l.i.tt-r. i . t : i r " p-aifl. .V- i-.iiii.i; i.-cv ! v-s 'l-"'-n, m-I; :i.- ' ; t i!o.'! ll:tll AM lAltl.I . Ir.i T. ':. .ifi.riu.i (.aval I'Mnp-i ;. r .It..-n ; !t!.;i. .'. .1,.;. ;i ; t'.itlüJv lc I; i t .i t 'il'n; sin-; pm.if 1 !. :i :i . i ! ;i 't " J' :i it I 1111)1.' AMI T M.I.OU . l( rrnlfcl tilj !. v . . LI (ipiiuin. tJ N. Main 1. 1 i ; i s i.!fiiiv

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Th-lstok market continues to ad-

v;intfat a rapid rate, and the much sought for reaction has not as yet arrived. The average price of 50 sto ks, equally distributed between the rails and industrials, shows at present a new hUh record in the past two years, owing largely of course to the new high points for the industrials. Ne-w markets have been controlled by the public to the lgree tlhat this one is-, and the speculate e fervor has ' gölten them." t'alues in many causes are Uf-t sightof in the scramble to buy stocks. Th public is Jumping" from one section of the list to the other. Until quite recently the market was distinctly one of specialties, but of late the activity has turned to the more starsdurd issues. The steels have been i coring good advances. Motor stoiV.s are keeping pace with the steels; equipments are not far behind and the oils and tobaccos arc being groomed up for further adva nces. lind of .Advance Not Visible. No deiinite signs in the reversol the tuend are a yet descernible. The two chief causes of stopping bull marikets liquidation bv large interests and the advancing of the call money nale, can under these conditions no longer operate to their full extent. The wealthy are not anxious to4take profits with income taxation so high for they will have to share thv-m liberally with the government. The call money rate cannot be expected to advance appreciably as the discount rate of the federal reserve banks is now the real lever of the money marl. et and it is undesirable to raise this rate at present because c f the very large amount of government paper included in the rediscounts. Brokers' btans are now estimated at more than $1.000,000,000 wheh compare nth a level of about $t00.000.000 during the latter half of the war period when restrictions were in force. A possible, but Improbable, cure for this excessive speculation would be for the banks to curtail brookers loans on the ground of public necessity. The tendency of gtock prices in the future then should be generally upward, the scope and duration of the advance depending upon developments in the business and international, situation and upn other factors which cannot now be discerntd in the situation. frHill the present is a time for caution. A very wise course would be to gradually shift from the sprc'ilauve issues into substantlially secured preferred stocks and bonds. Preferred stocks generally have scored good advances but there are still a number to be had which arc cheap. Bonds continue the slow upward movement started at the close of April. We believe that this is the beginning of a gradual upward movement and that the present is the time to buy bargains. If discriminated chosen all classes of bonds offer a number of rttraxtive purchases. The second class rails are an especially interesting frrotf. , Kailroad Stocks. A late comer In the broad advance of stock prices has been the rails. A few weeks ago the average started elowly upward but this was due largely to speculative buying. A number of roads In the southwest were reported to have found oil on the lands they own, control or serve and spurred on by the enthusiasm for oil issues generally, the stocks of these roads were rapidly bid up. More recently a gradual advancing tendency has started, which i.i our opinion is the inception of a pretty steady upward movement in thu better prarie railway issues, and is har1 largely on investment buying. The average of 2 3 rail; is now at the high point for 1?10, though of course very materially below the hih points of previous years. The diagram herewith pres?nts the more important swings in railroad stocks since 1 30r. The high

record during the period came In l A igut of that ear when the aver-j use reached about HO. a point never j touched again. Then ftaited a prac-j tically steady declining tendency', which continued until May 1010. ( ynd brought the average down to !'.". Following this th- trend turned) quickly upward and advanced until I Mav, Un, b it the top was about 14 I points below th lio-;. hi-h. After ai ! j .t r decline pric s again turned upward untul the i ecord figure of : : 1 1 wa auin torched in August.! j I'ro:n that month tr.e average bcm . virtually vinl-roken dflnie !-i low of s;.o jn November, l'.'ll.j Th dcvlii'e ilurinjr the lato part of' the p. rio 1 was undoubtedly due i.1

some measure to the heavy liquidation by foreign interests. However, the more fundamental cause for this decline and in fact

t li a .wr'te JrtTintrirrl CrVJL i tn r c ' n T . '

1V03 was th beginning at about that time of the many difficulties from which the roads have been suffering since. Commodity price bad r-eon moving upward during th?se years, .and the costs of railroad operation had advanced. In 1M0 the roads made their first combined appeal for increased rate? which had been turned down. The many laws regulating or more properly put, stiftling the roads, started to i!ow thick and fast around this time. The roads about then wert initiated into difficulties under which they have been operating since, and which have been the basic cause in the ruthles pressing of the market alues of railway ibues. Treiul sine December, 191-1. From December, 1914 to about August, 131), the trend was irregular but on the whole upward. In the latter period the average rose to 112. The advance was not due, however, to any marked improvement in the railroads. The inter-state commerce commission had granted a slight increase tn rates and th? roads had been temporarily benefited by the extensive prosperity enjoyed by the country due to conditions created by the war. Again there was a strong bull market during the most of this period and the rails undoubtedly moved in sympathy with the industrials. Heginning with August, 191o, railroad stocks went on the most severe sdump in their history. By February, 1917, the average loss was about It points, then moved up six points, but by December, 1917, had rapidly declined to 70:75, the lowest point on record. An advance started in December, 191V, which continued until October, 191S. The roads had been taken over by the government under apparently favorable conditions for most of them. Few roads, however, earned the standard return guaranteed them and the conditions of most of thejn had haj-dly been very materially benefitted under federal operation. In November the armistice had been signed and counting upon the possible early return of the roads to their owners the prices of railroad stocks began to discount all adverse possibilities in the return of the roads to private ownership and operation. At the beginning of the current year an irregular but slow upward tendency started, reflecting undoubtedly that railroad stocks had already discounted the worst and something would have to be clone to improve the condition of the railroads. ltailroad-3 to Get "Square Deal. Tres't Wilson has announced that ' the rail.-oads will be handed bac'K to their owners at the end of the calendar year" though the actual date of the return depends largely upon the time when the legislation will finally be enacted. All parties are agreed that the roads cannot be allowed to return under the old conditions but that radical changes taking into consideration the wide future of railroading and its development in this country must be made. Considering the vital Importance of the solution of the railroad problem to our economic and industrial life and the vast interests affected, its solution has received considerable attention by personages in all walks of life. Excepting the plan of the railroad b rotherhoods, all others argue for private ownership and operation. Merges of the present companies into a few large s stems is sought for by all parties. These are urged in the public interest and would simplify the task of regulating the railroads. Everybody of course desires that the roads should be assured a fair return on the capital invested in them and wants rates to be so adjusted that this will be possible. Matters of control ard regulation also take a prominent part in the suggested plan. Discussions as to the joint use of terminals- and the conciliation ot w iges have also been plentiful. Prospects for 4 letter Grade Kails. As vet the suggested solution of the railroad problem is not specihe enough to formulate definitely how h oUlcis of railroad securities will be arfected bv the legislation finally cn:u ted. It is becoming increasingly clear, however, that the railroads are to be KiVfn a "square deal" and that the unal outcome will materially improve the position of substantial railroad securities. We b lieve that th hctter grade rail? have sooil prospects for improved market and investment position.

i t i i i

Increase in Volume Handled by Railroads to Wipe Out Deficit.

rmproved business conditions have been without effect upon the volume of traffic, and Director Hines suggests that heavier freight movements and stringent economies may yet wipe out the railroad deficit without an increase of rates. Attention centers In the heavy movement of wheat that will soon begin. Last year the farmer's haste tn realize his earnings caused a serious congestion at seaports and many inland markets. .The permit system was invoked with good results, and will probably obtain again this year. It still applies to seaports. During the nine months August 1 to May 1 a totl of C,UO,:'36,000 bushels of all grains passed through the elevators and mills, although the highest point of storage any any one time was only 480,000,000 bushels. The necessity of keeping the grain channels open can thus be demonstrated. Port Situation Good. The port situation is favorable. For the week ending May 21 there were 28,448 carloads of export freight on hand at north Atlantic ports, against S0.710 the previous week, exclusive of bulk grain and coal. Deliveries exceed receipts by 2,616 cars. Carloads of export food totalled 7.S90. against 8.367. Considerable improvement was noted in the terminal situation at New York. Operating deficit for the first four months of 1919 is estimated at $250,000,000 by the railroad administration, and congress is asked to appropriate a grand total of f 1,200.000,000 for the needs of 191S and 1919. Director Hines ascribes the deficit to cumulative high costs, the abnormal decline of business following the armistice, and the winter's general state of hesitancy. The concensus of opinion seems to favor returning the railroads to private ownership, but not without financial safeguards.

STOCKS Saies totalled nearly 2.000,000 as the market entered the sixth consecutive million-share week. It has passed the 100.000,000 share marks of the year, which was not achieved until October 8 last year evidence that trading has reached a permanent new level. Only three 3,000,000-share days are recorded, two in 1901 and one in 1916, but many hint that others will be added soon. The present seems unquestionably a rising market. Shippings, oils, and motors have made the greatest advance, wellsustained. Ralls have a stronger tone. Metals and equipments show considerable strength, steel reaching new high points. Copper stocks are relatively cheap and should rebound. The only disquieting feature is the rush into new oil flotations, some of doubtful character. Reactions should afford new opportunities Instead of occasion for discouragement. Victorv ; bonds were traded in Monday for the first time nearly par. The bend market in general is showing quiet strength.

ment of Elbert II. Gary that production would reach new levels this year imparted an element of strength to the iron and steel markets, reinforced by the growing conviction that buying orders have accumulated and will soon descend in volume. Present buying is not large, but railway and foreign orders have given the trade some assurance. Copper remains quiet with prices around 16 l-2c. Producers liv in hope of foreign demand after signing of the peace treaty.

CHICAGO GRAIN' AND CHICAGO. Maj 31 CORN-

PROVISION.

May 173 179 172 lTO'i July H4 1(37 Pi3; lG6i Si-pt. l"t i:Q 15 ' OA IS j May Vi2 fts ftS' I Julv tili, ttt ',71 fl7U. Sept. r5 64 4 I'liIIKJ Muy Nominal MOO i .fulr 4t 7 30 2. 49 W 50.25 : lai:i May 34 50 34 50 34 35 34.50 .luly 32.23 32.:.7 32.J1 32.50 Sept. Sl.flO 31 .W 31.50 31.50 K1HS ! May Nominal 30.00 1 July 27.70 2v00 27.45 27.45

GKAIX -The conspicuous factor in giains is the low corn visible, j which fell below 2.500.000 recently.! Weather conditions and planting exerted bearish influence pi'ior to j the mid-week. May corn touched! now liifh nnints rinrinr it la I

Oats follow corn.

LIVESTOCK The tendency to weaken has been unmistakable in the hog market, prices receding to their early April level around $20.00 with sporadic rallies. Receipts have been liberal and packers hesitate to pay big prices. Hogs v n the farms during March increased more than 6.000,000 in excess .f the corresponding period last year. Warehouse stocks are large despite the foreign demand. Cattle remain weak under heavy receipts. Sheep have improved slightly in tons over recent weeks.

CHICAGO CASH GltAIN. CHICAGO. Mv .ll.-COKN-Nn 1 yellow. ?1.73f?.1.73-"i ; No. 2 yellow. M '.i &1.7tP.j No. 3 yellow . 1.71$U.74.j : N. O yellow, Sl.tiy; No. 1 mived, ?1.72'.. : No. 2 mixed, $1.73; : No. 3 mixed. Sl.7fv 1.74: No. 4 mixed. $1.70li: No. 5 mixed. 51.71; No ; mixed, Sl.r.V-.r-l .;:; No. 2 white, ?1.73-''fil.77a: No. 5 white, 51.70; No. li white, Jl.WS'-jf'f-l.W-OATS No. -t white. iT7:;ictfi ; No. 4 white. iMcOfiW: standard, tt.-r7 70. ItAKLEY M.mn.Srt. KYE No. 2, $1.51.

COTTON Unfavorable weather reports Infused new strength into cotton and all futures climbed above 31c. Reactions followed, but the dominant note, is strongly bullish. Old factors prevail, among them potential export demand, the strong cotton goods situation, and firm cables. Like tho stock market, the cotton market is discounting the future. Its confidence seems reas-onablv-well founded.

MKTÄLS The amazing state-

EAST ni FFALO LIVE STOCK. EAST BI FFAEO, N. Y.. May 31. CATTLE Receipts. 1.300: market dull, weak; prime stefrs, $1.00(317.00; butch er grade?, SIO.OOQ 15.25 ; cows, $4 OTKJ M 1 .75. CALVES Receipt, 1,000; market active, steady: cull to choice, $5.0017.00. SHEEP AND LAMBS Receipts. 3.O0O; market active, nteady: choice lamh, SIG.OOfr. 13.25: cnll to fair, fS.00rl5.50: yearlings, $12 00x13.00; cheep, $5.00 12.oo. ROUS Receipt . 4.000; market 50o up: Yorkers, $1.75: pigs. $20.50; mixed. $21.75; heavr. $21.75: roughs, $17.00'?7; PJ.OO; stags. $13.XKj2. 16.00.

TEXAS OIL Indiana-Texas Oil Syndicate (Now organizing) Local management. Large acreage. Low capitalization. No inflated prices. Brilliant prospects. Founders subscription list closes June 4th, 1919. For particulars apply in person or write to Syndicate Manager, 210 Dean Bldg. Bell phone 1774.

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Pdn. Up

Your Screens should be careful at tention no.w. Those troublesome flies Till soon invade, and it's best to be prepared. Let us help ou light them. C. E. LEE

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IF WE PUT IN A WHITE ENAMELED SINK

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. t'

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us v. ((ni.w .. MM I II Iii s I. INI.