Well-founded gossip in Wall Street has had it that early rises in the stocks of munition-making concerns were occasioned not so much by the acquisition of war orders as by efforts of German agents quietly to buy up control of these companies in the open market. These devices failing, it is said, orders for ammunition and other supplies have been placed by Germany with no hope of receiving the goods, but merely to clog the channels against the Allies. With the General Electric and other co-operating companies pledged to the Allies this danger will cease to exist.
The concerns selected to join with the General Electric for what will thus amount practically to a combination of resources for rapid manufacture will be those whose equipment, with a few alterations, can be adapted to the new work.
The General Electric Company, according to a Director, is in a position to begin turning out shells at a high daily rate, and, under present plans, the company will not sublet any of the $100,000,000 order. There are facilities available in the plants at Schenectady, Lynn, Harrison, Pittsfield, and Fort Wayne to carry on the work rapidly and without interfering with the ordinary electrical manufacture now being conducted.
Wall Street offered one of the first evidences that things of moment were occurring in the war supply situation. Bethlehem Steel shot forward 10 points, to 165, a new high record, although Mr. Schwab's company was not mentioned in connection with fresh contracts.
It is believed that when the proposed concentration of munition making occurs the Bethlehem Steel Corporation and other companies which already have booked sufficient contracts to keep them busy for some time will not be included.
Stock of the Studebaker Corporation was in large demand as the result of reports that about $7,000,000 of additional war orders had been taken for artillery wheels, motor trucks, and harness. Tennessee Copper shares were strong after it became known definitely that the concern had arranged with the du Pont Powder Company for an increased monthly supply of sulphuric acid. Toward the close of business stocks generally reacted, being influenced by the desire of many traders to keep out of the market until the tenor of President Wilson's note to Germany was known.
But despite the many physical manifestations of unusual activity, officers and Directors of the companies mentioned as those on which Germany had set her eyes were uniformly non-committal when they did not positively deny that there was truth in the story.
William J. Bruff, who is President of the Union Metallic Cartridge Company and a Director of the Remington Arms and Ammunition Company, said:
"I don't think there is any truth in it. Yes, I am certain that no offer of any kind has been made by Germany to buy the two companies. I would know if such offers had been made and I haven't heard of them, except such reports as I have read in the newspapers."
Henry Bronner, a Director of the Bethlehem Steel Company, said: