NGC ce il 
WEEKLY MARKET LETTER 
W. C. Langley & Co. 
Oceanside Hotel Magnolia 
Members of New York and Boston 
Stock Exchanges: 
Again we have had a week re- 
plete with war rumors and political 
unrest at home and abroad. The 
Moroccan situation has been aggra- 
vated by the attitude of England 
which seems to promise France 
something more than moral support 
in case Germany persists in her high- 
handed demands. Naturally Eng- 
land is jealous of the steady prog- 
ress made by Germany in pushing 
her colonization schemes and en- 
larging her spheres of influence. 
Should her demands in the Congo 
be granted she would become the 
dominant factor there and probably 
be able to acquire the Belgian prov- 
inces which it was more than half 
understood that France was to fall 
heir to. We do not believe, however, 
that the German position is any- 
thing more than a huge game of 
bluff. She will probably accept such 
concessions as she can obtain and 
then retire as gracefully as possi- 
ble ‘‘for sake of the always-to-be- 
sought and ever-to-be-desired world- 
peace,’’ as Emperor William will 
probably phrase it. Nevertheless 
the situation is serious enough to 
cause speculation as to what effect 
such a war would have on our pros- 
perity. Beyond the fact that we 
would probably be called upon to 
buy back large amounts of our se- 
eurities from European bankers who 
would need the cash to finance their 
respective countries, we think that 
we would benefit by such a state of 
affairs. Certain of our exports 
would enhance greatly in value 
abroad, and especially would our 
merchant marine be given a wonder- 
ful stimulus since we would be prac- 
tically the only important power not 
likely to be concerned, and thus able 
safely to carry merchandise in neu- 
tral bottoms. 
Another rumor that had a_ dis- 
quieting effect was that the Reci- 
procity treaty, which has occasioned 
our legislators such an unpleasant 
summer might be rejected by Can- 
ada. So far there is no confirmation 
of any serious opposition, and we 
should be much _ surprised if any 
such developed. 
The only really material event. of 
the week was the decision of the 
Interstate Commerce Commission as 
to rates between the Rocky Moun- 
tains and the Pacific Coast. While 
the commission in this decision still 
further shows its belief that the 
railroads are not in need of higher 
SHO (RGAE 
rates, and while this cuts very seri- 
ously into the prospective earnings 
of such roads as St. Paul, and the 
Hill stocks, nevertheless all of these 
seem to be able to hold their own 
under present conditions. On the 
other hand, we have the _ benefits 
accruing to such of the industrials 
as are large shippers into that terri- 
tory. Among those to profit we 
would mention especially American 
Beet Sugar, whose prospects apart 
from this even are exceptionally 
good. 
In spite of all these factors the 
bears were unable to make any last- 
ing impression on prices and_ the 
present level is about the same as at 
this time last week. The quarterly 
statement of earnings of the U. S. 
Steel Corporation was somewhat 
better than had been expected and 
current reports indicate a further 
gain in business. The Copper situa- 
tion while statistically satisfactory 
has not yet reflected the improve- 
ment in iron and steel, but, we are 
confident this is only a matter of 
time. 
Last week we called your atten- 
tion to the Pittsburg Coal Co., and 
at the present writing the preferred 
stock has already risen some six 
points. There are unconfirmed ru- 
mors of the retiring of this issue by 
a 5 percent bond but we are inclined 
to think the funding of the accumu- 
lated dividends the more likely so- 
lution. In this event the preferred 
stock would receive at once its full 
7 percent dividend and we believe 
this makes the stock a_ safe pur- 
chase even at the present price. So 
far the common stock has only risen 
a point or so; but we feel confi- 
dent that once the back dividends 
on the preferred are disposed of the 
common will be selling much higher 
than the present price of twenty-one 
dollars a share. 
The developments with regard to 
Brooklyn Rapid Transit have not 
yet been appreciated by the public, 
principally on account of their gen- 
eral apathy towards the market. 
But even under present management 
the subways in New York are show- 
ing net earnings of 17 percent on 
the capital invested and the new 
tunnels to be operated by this com- 
pany will mean vastly increased 
earnings for Brooklyn Rapid Tran- 
sit. Further than this there is ev- 
ery reason to believe a report we 
have heard that the Pennsylvania 
railroad has bought into the stock 
until it now has practical control, 
and that these are the interests that 
will finance the building of the new 
subways for the B. R. T. The econ- 
Be Reb hah 33 
omy and excellence of Pennsylvania 
control does not need to be dwelt 
on. Under their management the 
future of B. R. T. looks very brill- 
iant. Even apart from this there 
was every prospect of an increase in’ 
the dividend rate. 
We think the whole market is 
likely to emerge from the present 
stagnation much sooner than is gen- 
erally expected. Congress will 
probably adjourn some five days 
earlier than the date spoken of and 
we think this will be the occasion 
of the beginning of a bull move- 
ment that will carry the level of 
prices up from ten to fifteen points 
before the first of December. 
MAGNOLIA HOTELS. 
Mrs. Dorothy Potter of Philadel- 
phia, who is spending the summer at 
the Oceanside, and her guest, S. 
Roberts of New York, lunched with 
Mr. and Mrs. Randolph Tucker last 
Saturday at their beautiful summer 
home at Coolidge Point. 
Mrs. F. Taylor Pusey of Philadel- 
phia, who is spending a few weeks 
at the Oceanside, Magnolia, had as 
her guest to dinner on Monday, Col. 
and Mrs. Harry E. Russell of Man- 
chester. 
Miss Solari of New York, who is 
stopping at the Fuller c¥ttage, one 
of the Oceanside connections, looked 
very charming last Saturday eve- 
ning in a gown\of red crepe de 
chene. 
Mrs. Charles A. Spofford and Miss 
Barbara Spofford of New York, have 
joined Mr. Spofford at the Ocean- 
side. 
Owing to the disagreeable weather 
last Saturday evening, the guests at 
the Oceanside amused themselves by 
playing bridge. Among the well- 
dressed women was Mrs. Michola De 
Teresa and Miss De Teresa of Chi- 
cago, Mrs. De Teresa wearing black 
satin and Miss De Teresa black net 
over black silk. Mrs. MeArthur 
wore white silk with trimmings of 
Trish lace. 
An unusually attractive girl at the 
Oceanside, is Miss Alice C. Helm, 
daughter of Mrs. Wilbur Helm of 
Baltimore. Mrs. Helm and daughter 
will remain here until September, 
when they will sail for Europe to be 
gone a year, when they will be wel- 
comed back to Magnolia. 
Mrs. Dorothy Potter of Philadel- 
phia, one of the Oceanside’s most 
popular guests, looked charming 
Wednesday evening in a most be- 
coming gown of black and white 
chiffon with trimmings of King’s 
blue, and large black hat with 
plumes, 
