Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-20
Bulls AND BEARS

NEW YORK, December 20.-One con-
struction, ana-apparently permissible one.
that is placed on the announcement that
the Peoples Gas directors have decided 80
reduce the dividend rate to 5 per cent.
basis. made necessary by the orfer to re-
duce the price of gas to so cents" IS
that there is reason for believing that the
city Of Chicago win accept the companyss
offer. If 1t is accepted 1t will mean inn
munits- from municipal hold-ups for sew
eral sc $ to come and Peoples Gas stock.
as a !, per cent dividend payer under
these circumstances would be in a better
position than when paying Q per cent sub
ject to the attacks OF politicians and dema-
gogues.
There is reason to believe that the city
authorities in Chicago have at least seen
light and that public service corporations
there would SOON be able to make arrange
ments with the municipality that will ke
OF benefit and advantage to the city and
10 the corporations. AT all events, a new
bullishness tn sertain well-snforrned quar-
ters has developed with regard to Chicago
Union Traction and this bul1ishness is
based on some such intimatiens as that af-
forded by the action of the Peoples Gas
directors-that the stock will soon sell ex-
municipal antagonism.
Some curiosity has been expressed in
various Wall street quarters as to the rea-
sons for the abrupt rise of more than fifty
points in Delaware and Hudson this year in
view of the recent cessation of activity in
the stock and something of sagging in
price. In the first place ii may be stated
authoritativeiy that there have been some
important changes In holdings in the last
twelve months and that at the next annual
meeting some changes will be made in the
directorate.
In the second place the stock Is relatively
as active now and It's tone is as
firm as that of the other anthracite
coalers, which are all more or less affected
by the possibilities of labor troubles in the
mine fields next spring. As for the reasons
which caused the stock to make SO remark
able rise this year and which are ex-
ment OF considerable proportion at no dis
tantsday. this is what a large stock holder
SAYS:
I'll, my opinion and / think the course
of prices for the last year has proved 1t.
the high priced stocks are the cheapest.
They sell web above par because they have
recognized vallse. In the case Of Delaware
and Hudson; this years rise was undoubt-s
edly owing in large part to a better appre-
citation of its value by capitalists already
interested in the properly and by others
who were not. In the view of those who
agrees with me. the present actual value of
the property is: very great One has only
to go beneath the surface facts of the COM
pany's reports to discover that.
"Its prospective value in the near future
is, however. the important thing. We who
believe that Delaware and Hudson has
rich future are not looking for any imme-
date increase in the dividend rate: expee-
tations of that kind have cut no figure in
the considera tons which impelled the ex-
tensive accumulation of recent months (and
I would say that this of itself seems to
stamp the movement in the stock meri-
tofiousl. We do, however, look for some
important developments in the course of
the next year in regard to the Delaware
and Hudson's very valuable iron ore lands
and in the company's relations with other
railroads. l cannot say more along this
line. j can, however, say that due atten-
ton should also be paid to the improved
position of the railroad coal departments
of the company. The anthracite industry
Is firmly established now and we do not
look for q strike next spring, although a
strike would affect prices only and not val
ues. This was shown three years ago.
again. a great deal of money has been
put into the railroad and the period
of heavy charges on earnings Is about over.
Add to these considerations the fact of
confidence inspired by the progressive and
alert policy of the present management,
which was so cleverly shown in that bril-
liant piece of financing, the Albany and
Susquehanna bond issue, and you have, /
think, suff1ctency Of reason why wealthy
men regard Delaware and Hudson today as
one of the cheapest stocks on the list along
with Lackawanna, Northern Pacific, Great
Northern Pacific and the ike"
Unified orders on the books of the United
States Steel Corporation are said to be
about 100000 tons-of course record