Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-11
BULLS AND BEARS

1 NEW 1OktAs August il.-1t WAS 8enctd 4iy
| admitted that the stock market would be
| quiet and somewhat irregular today and
| perhaps on Monday. Brokers who have be-
iieved in the present movement from the
| outset said today that during the last few
days large interests have bought stocks
again and that they saw no reason for tax
ing anything but an optimistic view with re-
spect to the market for several weeks to
come at least. Tney seemed to be confident
that the stock market would not be Sc
rfousiy disturbed by monetary conditions,
and they asserted that In view Of the enor-
nous crops promised business in Wall street
! would undoubtedly be better this fall than
has been generally predicted.
Prominent fnanciers studying the earn
ings Of the large corporations incline to the
opinion that within the next year there
will be q general increase in divi-
dends by companies which have been piling
up earnings, but which have declared only
a small proportion of the profits in the
shape Of dividends These students of values
say that even the high priced stocks. So
called, are easily worth the prices at which
they are selling simply on the basis Of
earnings that have been reported by the
corporations which these securities repre-
sent.
They assert further that undoubtedly
practically all OF these railroads and in
| dustrial companies have made larger earn
ings during the last two or three years
than has been indicated by the monthly and
annual statements OF receipts and disburse-
ments.
l. The annual report Of the Delaware, Lacka-
wanna and Western Railroad Company has
shown earnings equivalent to twenty and
eve even twenty-hvs and thirty per cent &, on
/ IN the coal trade says that the actual earn
ings for 1905 were nearer so per cent on
the stock than any other round figure. For
the last fiscal year 1t is understood that the
earnings were even larger. This company
has declared q small extra dividend in ad-
dition to the per cent that had been paid
for some time. The management has pur-
sued the policy OF paying for extensive Inn
provements out of earnings instead of is
suing new securities and giving to share
sholders the right to subscribe to them: on
favorable terms. "a -, s,=a @,-.a;
great deal has been heard with re-
spect to the probability OF another melon
being cut by the Great Northern Railway
Company From limitations that have been
made 1t looks as though the Northern Pa
cif1c shareholders would before very long
receive very substantial bonus. The earn
ings of that company are far In excess OF
the dividend being paid and the company
also has valuable ore lands which will I'M
doubleday participate in any deal which
may be made with the United States Steel
Corporation.
l..
1t Is known that for some years tho
actual earnings Of the st. Paul have been
about three times the rate Of dividend paid
to the stockholder. The company has NOT
made any extra disbursements recently to
to the stockholders. The company has not
used the surplus fund toward the con-
struction Of the Pacific coast extension
The Union Pacific Is another large railroad
corporation which Is paying only a meager
| rate Of dividend in proportion to the actual
earnings.
X x
Men of prominence whose opinions are
worthy OF attention say that, although the
movement which is under way for larger
dividends may fail in individual cases tenn
porarily. as, in the case Of Wells-Fargo &
Co., they still believe that the time is not
far distant when the cry of the stockhoJd-
ers for larger share of the profits of the
companies whose securities they hold will
be heard and obeyed. 20
~
dispatch from Butte says the Pitts
burg and Montana company has flied with
the county clerk mortgage on It's prop
erty to secure bonds amounting to 5000
600. with which to raise money to further
develop the mines and to enlarge tho s,nelt-
er II the showing in the mines warrants.
Certified copies of the articles of incorpora-
ton show total assets of $50 81. BOG. but
the actual cash value of the property Is
placed at T.5O0.0O0. with liabilities of
s2,6O0000. The original capitalization was
100000 IN fifty shares but in 1902 It was
X
The Keystone Telephone Company of
Philadelphia is increasing the capacity of
its main central station to its full capacity
Of 1900 lines. This has been made neces-
sary by the addition Of many new sub
scribers and the increased business from
several long-distance lines the company
has recently absorbed.
The weekly financial review Of J. g. Bache
& Co. says:
THE special feature Of the week was the
assumption Of leadership Of the Pennsylva-
MIA groups and the activity and strength of
the stock. The price Of Pennsylvania was
marked UP In the face of the sagging tone
Of the general list. Whether a persistent
obstinate short interest was being driven
news has been bottled UP in the minds of a
few insiders, who are taking advantage Of
the situation. is hard to tell.
1T was limited at In banking circles that
possibly pennsylvania directors might IN
crease the dividend rate this fall. and this
would be only in line with the several in
creases in other members of the Pennsyl-
vania group in the last three months. This
may, or may not, be true, but as a matter
OF business policy it can be questioned. In
the face of large expenditures and heavy
borrowings the Pennsylvania directors, it
is believed, would hesitate about distribu-
ting any increased dividends just now"
X
Carpenter. Baggot & Co. say in their
weekly stock review:
Two elements may contribute toward re-
lief Of the money market as demands for
crop moving appear. One Is possible relief
from the government to the extent of forty
millions or more by the retirement Of per
cent bonds due next year. Another very
important influence is the decided falling
of in real estate speculation all over the
country. This has not only absorbed funds
which would otherwise be available for the
stock market, but has diverted interest
from speculation in securities. There is ex-
cellent authority for the statement that i'm
portant bull cliques have made arrange
ments with foreign bankers for funds over
the crop-moving period.
Pennsylvania railroad stock Is not rela-
tfyely high considering its speciIativa ord