Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-05
BULLS AND BEARS
Special plsp.tch to The Star.

Special Dispatch to The Star.
NEW YORK, December 5.-The profes-
sionaI element In Wall street continues
bearish, principally because OF the high
rates for call money. but shrewd stock mar
ket observers, including international bank
ers, confidently believe that Secretary Shaw
will soon come forward with a eomprehen-
sive relief measure. From the confidence
displayed by some interests it would seem
that they had received direct fnforma ton
that such action will positively be taken In
the near future. An international banker.
in discussing the monetary situation, called
attention to the fact that the rather heavy
Withdrawals for inerfor points could not be
charged up to Wall street speculation and
that, on the other hand, the demand for
money from those centers could reasonably
be construed as representing the Legitimate
requirements OF general business aoout
which the Secretary OF the Treasury mas
had $50 much to say. 70
It is generally conceded that while most
OF the trading recently. has been of a highly
professional character, the head of COM
mission house which has important foreign
connections says that the buying OF Che
standard stocks for foreign accounts for
some time has been large in the aggregate.
- I
Those who take an optimistic view OF the
stock market base their opinion not only
upon the belief that the money market is
to be relieved, but on the idea also that II
the issues Of new securities about which
there have been persistent rumors are actu-
ally to be made general, conditions in
financial circles are almost certain to be
favorable. In addition to the rights, which
it is believed will be announced on Great
Northern. st. Paul. and Canauian stocks.
it is believed that the Atchison stockholders
will have the right soon to subscribe either
to an additional amount of convertible
bonds or common stock. While it has been
generally rumored that the next Increase IN
the authorized capital of the Atchfson would
be in the shape of convertible bonds, rail-
road men are inclined to believe that COM
mon stock will be put out instead of bonds.
1t has been the theory of some well-inform-
ed interests that such action would not be
taken until the common stock was established
on per cent basis. Some railroad inter-
ests still cling to this theory, but others are
Of the opinion that because the demand
upon the traffic facilities of the Atchison
has increased at such an unexpectedly rapid
rate, the new issue may be put out before
the next dividend period comes around.
X y
The sharp advance in New York Central
in London this morning tends to make
credible the statement made by many OBJ
servers Of the market yesterday that had
it not been for a sharp and sudden advance
in money rates yesterday New York Cen
trail. on the increased Lake Shore and
Michigan Central dividends. have
closed higher. The action of the Lake
Shore directors has called attention to the
potential value of the assets in New York
CentraFs treasury. Many important inter
ests confidently believe that within another
year the Lake Shore dividend will be made
Is per cent more. r- F-
The company's real earning power Is es-
timated at around 80 per cent, so that
ample margin remains for a large increase
in that dividend.