Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-09
BULLS AND BEARS

NEW YORK: February 9.--In view of
the rally that has taken place in the
stock market this week. and inasmuch
the large interests do not favor a rapid re-
covery. 1t was generally assumed that
prices would recede somewhat today on
further profit-taking and short selling. 1t
was believed. however, that any ag-
would meet with considerable opposition
The pessimfsm that has been so noticeable
for some weeks was gradually disappear
Ing, and there was q greater disposition
to buy the standard stocks than there has
been for month or two. The buying was
apparently of a much better and more
conservative character than has charac-
terized the upward movement during the
past year. There was little or no dis
position on the part of operators, both
large and small to plunge. but there
seemed to be a steadily increasing DISPOSE
ton to buy stocks moderately on the basis
Of earnings, values and dividend returns
"a
The head of a large stock exchange
house said this morning that the buying
In the aggregate of odd lots of stock for
investment during the last few weeks has
been much larger than was realized until
the printing on the tape Of this class of
change. He intimated that at the pres
ent time there are large buying orders in
the market for ffrst-class bonds. He
added that a canvass of the bond market
has clearly proven that first mortgage
bonds in underlying securities are ex-
trenely scarce. Out of a very large or
possible during the last week to secure
only very small amount. He added. Also
that guaranteed stocks are very closely
held. Other observers of the market are
~ toe ,Nrlr
easier, the investment buying will in
crease proportionately. and to such an ex-
tent that the first-class Investment Sc
curities will be practically out of the
market.
The statements that the Atchison dividend
will be increased next month are not quite
as positive as they were a few weeks ago.
Interests closely connected with the COM
pany, however, have recommended to their
friends the purchase of this stock on the
positive information that the dividend to be
paid in April will be at the rate of g per
cent a year. In view of the information that
has come to hand within the last few days
that the railroad has decided upon general
retrenchment policy, 1t has been rumored
that the Atchison would not offer within
the next few months any part of the issue
of convertible bonds recently authorized by
the stockholders So far can be learned,
the management still contemplates putting
out about S2J.GO0,CO0 Of that security as
soon as it regards the monetary and market
position favorable for such Offering
The question has been raised in connec-
ton with this retrenchment policy as to
whether the Chicago and Northwestern
would proceed with the construction of the
S20,UG0,GOD passenger terminal in Chicago,
plans for which have been fully worked
out The information comes from good
sources that the management Of that COM
M has tpfn NJ ix-tr,
portant piece of work. 1t is pointed out
that funds for the undertaking are already
in hand and that there is no reason why
the work Should be abandoned, particularly
the demands upon the present facilities
are extremely large.
1t is learned that there has been some
quiet buying of Missouri Pacific at the low
er figure on the belief that the company
will he able to maintain it's dividend at the
full rate indefinitely. 1t is not impossible
that within comparatively short time the
management will announce some sort of a
financial plan, but SO far as can be learned
nothing of a definite character Las been
decided upon. \ man thoroughly familiar
with the earning power of the Missouri Pa
citic recently made the statement that
few years ago, when the company was
obliged to contend with the heaviest Hoods
in its history. 10 per cent on the stock was
actually earned. At that time unusually
heavy expenditures were Beng made out OF
earnings for improvements. He says that
now with aggressive management there is
no reason why the company should not be
earning much more than 10 per cent.
1t is intima;ed that carly next week the
street will hear OF another issue of short
term notes, but so far as can lie learned it
may not he sufficiently large to cauie any
In view of the fact that the
railroads have decided not to undertake any
ney; work that viii involve the outlay Of
large sums Of money. it is assumed tuat
whatever Issues of notes are made in the
near future will be simp.y to take care of
wo!!, aireauy under way which cannot be
abandoned as for instance. the elaborate
terminal in this city OF the New York Cen
trail lines.