Bulls' Pride

No intelligent pessimist, seeking omens and portents of business depression, will allow himself to glance at the recent history of U. S. mail order houses. Balance sheets of Sears Roebuck and of Montgomery Ward are the particular pride of bulls, the dull despair of bears. In 1921, Year of Deflation, Sears Roebuck admitted an operating loss of $16,435,468. And Montgomery Ward showed a loss of $9,887,396. But in 1922, both companies declared net profits of about $5,000,000. By 1927, Montgomery Ward could show profits of $13,127,431, and Sears Roebuck nearly twice as much. Estimating 1928 profits, analysts see large gains over 1927 figures, with Montgomery Ward fighting desperately to narrow the gap which separates it from its rival.

Equally astonishing has been the skyrocketing of Montgomery Ward securities* on the New York Stock Exchange. From the beginning of the great bull market, Montgomery Ward has been well in line with the leaders. Its record:

HIGH LOW

1923 26 1/4 18 1/4

1924 48 1/2 21 3/4

1925 84 1/4 41

1926 82 56

1927 123 1/8 60 3/4

But in 1928, the stock began a sustained, sensational rise. Its low for the year, 117, was reached on Jan. 19. By Feb. 8, it had hit 149 1/4. Responding to the two brief periods of market weakness, it lost 20 points in the last week of February, won them back, then lost 10 points in the week ending June 16. Sharp and spectacular was its recovery. It soared :

July 7 (week ending) 159 7/8

Aug. 11 199 3/8

Sept. 15 264

Oct. 13 282

On Monday, Oct. 15, the exchange opened with Montgomery Ward the centre of all eyes. Rumors flew fast. Traders heard that good news was on the way. Monday saw Montgomery Ward leap to 304 3/4. Tuesday added 1 1/4 points.

And on Tuesday the good news came. From Chicago, President George B. Everitt/- wrote stockholders. Interesting was the promise that Jan. 1 would see 200 chain stores in operation. But transcend ent for traders was the common stock increase from 1,285,000 to 6,000,000 shares, giving stockholders the right to buy two new shares, at $17.50 each, for every share now held.

By the end of the week, when the stock had gone to 352, traders were swamped under an avalanche of orders. In a single day, 58,900 shares changed hands. Many a fortune had been made within the year, within the week. Jealously guarded, names and specialties of pool operators are known to few stockmarketeers. But Arthur W. Cutten and the Brothers Fisher did not deny they had scored again in a market dedicated to bulls.

* Sears Roebuck stock, less spectacular, has not lagged behind the advance. From a low of 51 in January, 1927, it climbed to a 1928 high, last fortnight, of 162 3/4.

/- South Dakota-born George Bain Everitt was first accountant, then cloak-and-suitman. He went into the Encyclopedia Brittanica Corp., dropped it for the textile business. In 1921 he went to Montgomery Ward, becoming president in 1926. At forty-three he is representative of Chicago's clan of young, debonair, clubmen-executives.