Evening star., 1905-09-26
BULLS AND BEARS

NEW YORK, September GA theory OBJ
tains in some quarters that the important
problem of the present stock market is the
necessity of repressing 1t and keeping its
upward tendency sufficiently in check In
order TO prevent bear panic.
The one striking fact OF all the reactions
this year has been the failure of the floating
supply OF stocks to increase on the de-
clines. If anything, the market movements
and the course of prices have seemed to
show In the successive reactions that the
floating supply was growing steadily less.
and such condition would make 1t very
difficult for any considerable short interest
to cover except at rapidly advancing prices.
The rather trite comment was made this
morning that yesterdays aggressive selling
did not look as though 1t came from the tin
boxes nor from the inside.
Almost two pages were devoted by the
Statist of London in its issue Of September
III to analysis OF the Lehigh Valleys re-
port for the year just ended, and in con-
Guiding the article the following interesting
comments were made: 1T Is somewhat
diHcuit for the general investor to appre-
clate the solid reasons for the present level
OF american shares. But when we recog-
nize that secret rate cutting was the chief
cause of the relatively small profits OF
american railways until few years ago,
that recovery in rates has been brought
about by methods which are likely to In
sure ermanently higher level and that
trafnc Is being handled with unprecedented
sk1ll and economy. we are obliged to admit
that the higher level of prices is fully war
ran. ran.eu py the changed economic conditions
now governing the prosperity of the rail-
way INDUSTRY. A price of $73 for the $50
shares of the Lehigh Valley would. of
course, not be justified by the mere payment
of per cent dividend The relatively
nigh price in proportion to the dividend
PAID mas been brought about by the knowl-
edge that the company's profits are equal
10 dividend of Is per cent, and that a
much higher dividend than per cent NAV
be distributed.
Part of the cause for the Gould interests
IA tne nght Tor control of the Wabash in
sttuted by President Ramsey was tersely
put as follows today: The Wabash joins
the Missouri Pacific system at ST. Louis
and Kansas City. At st. Louis 1t Joins
the iron Mountain and the st. Louis South
western, which, in turn, stretch away to
Ine far southwest and connect with the
Iexas and Pacific. The Missouri Pacific
ltseif connects with the Denver and Rio
Trance uaad. ana Rio Grande Western. which
penetrate the west as far as Salt Lake
CITY. From this point the Western Pacific
IS under construction. 1t will carry the
LIQUID lines to the shores of the Pacific
Ihese western Gould lines gather up an
enormous quantity of business for the
Wabash. If the Wabash fell into hostile
hands this traffic would certainly be lost
to 1t.
The opening of the Western Pacific will
add largely to the traffic of all of the
Gould western lines and to that OF the
WaDash. IL this western connection, how
ever were lost to the Wabash 1t would find
itself In most disadvantageous position.
II could not get more out of Chicago than
II Is now getting, whereas great traffic
that comes to 1t at Kansas City and St
the mercy of fierce competition against
powerful eastern rival lines. such as the
pennsylvania, Baltimore and Ohio, Lake
shore ana Erie Something of an answer
10 thls might be made If it could be learned
with whom the large Rockefeller interests
IN the Gould properties stand to say moth
ing OF the attitude of the controlling inter-
ests IN other railroads outside the present
Gould system.
American interests are beginning to buy
Ensilsn IRON. Purchases so far are said to
aggregate about sixty thousand tons
The statement is made that the capacitv
OF the combined plants of the United States
steel corporation is about 35 per cent
larger than 1t was three years ago, and that
the cost Of production Is on the average So
ton less than 1t was three years ago.
Bears in Erie because of the Cincinnati
Hamilton and Dayton purchase apparently
iall 10 consider the positive genius that
has been shown by President Underwood
OF the Erie In the direction of organization
and economy In the Erie he had in the
nelghborhood of $500 miles of railroad in
which to exercise these talents which he
admittedly possesses The acquisition of
the Great Central route, adding almost 4 900
miles to the Erie system, means greatly
enlarged opportunities for combination con-
solidation and saving
Dividend and interest disbursements In
October will. II Is estimated be about STl.-
ooooOo, an increase of about S1,0O0,GO0 over
the distributions in the corresponding month
a g "