Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-21
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 21.-The very favora-
BILE developments which occurred yester-
day. taken in connection with the reduction
In the Bank of England minimum discount
rate this morning to 3h per cent led to the
belief in certain financial quarters that
there would be a further appreciation in
stock market securities in the immediate
future. The decline in the Bank OF Eng
land rate was particularly Significant be-
ing not only reflection of the easier mone-
tary conditions In Europe. but also clearly
indicating that the managers of that in
stitution were in nowise disturbed over
the Russian situation. Were the internal
troubles IN Russia Of such a nature as to
threaten serious disturbance to the Euro
pean money market It was taken as
foregone conclusion that the Bank of Eng
land rate would have been maintained at
its previous level. 1t was consequently
believed that the foreign political situa-
tior may now be eliminated as an adverse
factor on our markets.
It was confidently expected by the best
informed interests that the increase In
the Baltimore and Ohio dividend would
be followed by an advance In the diyi-
dend rate on Chesapeake and Ohio to 3 per
cent, and an increase in the Norfolk and
Western common to per cent was also
regarded as entirely probable. The plac-
ing of American Locomotive common on
per cent basis was so generally expected
that the action of the directors had been
fully discounted and no surprise was oc-
casioned by the recession In the price OF
that stock following the dividend an
nouncement. Baltimore and Ohio, however.
as per cent dividend payer. It was be-
Heyed, should make further decided i'm
provement in market quotations. The adj
vance might not be abrupt. as q good
deal OF profit taking would be encountered
from those who bought the stock from to
nearly 10 per cent lower. but 1t was be-
lieved that the stock would gradually find
a higher level.
The latest reports from the crop regions
did not give much ground for anxiety. In
asmuch as the best authorities declared
that the wheat yield would be entirely sat
isfactory and conditions were promising
In the corn belt though 1t Is of course, too
early to gain any accurate idea as to what
the actual corn yield may be. That there
viii be falling off in oats was generally
CONCEDED and shortage In that crop was
regarded as already pretty well discounted.
Some Of the best authorities declared that
1t would be about 20 per cent less than last
years outturn
The disruption of the Southern Furnace
Association and the lowering of prices for
southern iron was not considered as in any
way indicative OF a weakening In the iron
and steel situation. Some very well-in-
formed men, however regarded 1t as OF
considerable significance In its bearing up
on the southern steel and iron companies.
There were limitations that the final up
shot of this would he he ahSornfinu
OF the Sloss-Sheffield Steel and Iron Com
pany by the Republic Iron and Steel Com
pany, official statements to the contrary
Notwithstanding.
The continued heaviness of the United
States Steel stocks was rather disappointing
to the bull followers. The failure of these
stocks to experience any pronounced ad-
vance was partially attributed to the heavy
liquidation which has been In progress in
that quarter. 1t Is generally understood
that block of nearly 100000 shares OF
steel was sold out by one individual. The
knowledge that the corporation will also
issue $4,000 600 bonds In the fall had some
adverse influence on these shares. There
were limitations now. however. that, IN
asmuch the liquidation seem to be pretty
nearly over in the steel shares they would
soon be taken In hand and advanced. IL
was stated on good authority that more
month by the corpora ton that in any other
similar period In its history.
4
Considerable interest attached to the
meeting of the Louisville and Nashville d.
rectors, which Is scheduled for today. Elk
cellent information was to the effect that
an advance would be made In the dividend
rate in the not distant future. though It
was doubted by some Of those In close
touch with the company's affairs that an
advance would be made today. 1t was be-
lieved that the chances were in favor OF
continuing at the present rate until the
next dividend period.
x+
The state railr Dad commission of Ken
lucky yesterday ordered a reduction of %
per cent in freight rates The matter of
freight regulation has been under investiga-
ton for six months past. The opinion of
the commission sustains the contention of
shippers In all sections of the state-that
the shippers have been Disseminated
against and that the entire state has SUI
fered
Company, which operates the greatest num-
Der of miles of road in the state. was taken
as q basis The commission orders q re-
duction of the Louisville and Nashyille's
mileage scale by Is per cent on all classes
of freight on the main line. the Knoxville
division and the Cumberland Valley divi-
sion in order to make the rates uniform
with those in effect on the Kentucky Cen
trail and Lexington division.
All the other roads In the state are
brought down to this basis. The order af-
fects the Illinois Central railroad mainly on
its short haul rates. which are even greater
than those of the Louisville and Nashville
Company.