Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-22

and Brandt Walker will hardly class as
chicken feed.
4
BY drawing on the resources Of their
auxiliary companies, New York Central,
Pennsylvania and other big railroad sys-
TENS will be able to pay their usual div
idends. 1t is a question. however. wheth-
er the extraordinary effort required to
raise the money with which to pay these
dividends will go far to restore conf
dence or to inspire new buying. The
New York Central is VIGOROUSLY running
behind dividend requirements and is face
to face with immense future demands
for the financing of improvements to
which 1t Is committed. The terminal
work in and about New York alone will
call tor the further outlay of possibly
$50 200, 900 to $4,000 600. and the case of
Pennsylvania Is quite as formidable. In
the latter instance, however. there will
be no real difficulty in raising the money
that will be necessary. That system is
the greatest Garner In the world. and it's
resources are beyond anything which has
yet been put into figures.
There Is q strong belief that New York
Central has before 1t a long period of hard
shedding and that in its struggles to
maintain dividends at the current rate 1t
rupture point There is likely to come
time when the subordinate companies
can no longer stand a drain such as is
now being impressed. The New York
Central is the most conspicuous American
example Of the inefnciency of long-dis-
months of every year official direction
of the road Is located in Europe and moth
Ing important can be done here while
the head of the corporation Is away from
home. Thus far rebellion against VIII
liam K. Vanderbilt has taken no stronger
form than disorganized protest and an
utterly demoralized board of directors
The periodic meetings of the directors of
by those who have been there to Donny-
brook fairs in point of strenuosity.
n \
The stock market during the last week
has not been especially eventful In an i'm
portant way. The money situation, while
slowly improving. is yet far from being
such as to give real encouragement to
speculation for a rise. The banking in
terests and corporations have been pull
Ing every string to get money into New
York. and where It could be checked upon
for the early January interest and divi-
dend disbursements. This process has
taxed their resources to the utmost and
kept down supplies of cash and credit for
speculation. There has been more or. less
manipulation Of specialties. but no real
buying movement of securities. Some
signs Of actual revival have been observ-
able in the bond market, and the floating
supply of high-class Issues is gradually
diminishing. Bonds with speculative
element in them are still In large supply
on a basis of 81 to 61s per cent. but in
time these will be taken care of. There Is
the standard dlvidend-paying stocks of
railroads. and some of the very best of
the industrials. Speculative ferver is
harshly repressed. except where groups
are strong enough to play their specialties
with their own money. The short sellers
have much the best of 1t, as they are not
put to the necessity OF raising large sums
OF money.
The market is consequently oversold and
the black horse cavalry Is necessarily at
serves as an illustration. The death OF
Mr.. Havemeyer was signal for the raid
ers to get busy, and ever since the great
sugar king breathed his last bear cam
that there has been very much selling of
real stock by real stockholders. but the
trading has been given as much the ap-
pearance Of liquidation as possible. The
actual sellers have been bears. leader
among whom is the redoubtabie Jakey
trader. Investment selling" of that sort
H. carried on far enough and on a large
enough scale oftentimes produces disas-
trous effects and dislodges holdings Of
-
From the west and south word comes
that the banks in those sections are al
most all In shape to resume full cash pay
ment and that they only await the word
from New York. Here the situation is
disappointing. 1t Is unquestionably bet
ter, hut not nearly as rapid as might be
desired. The drain upon the balances
in New York for the account of outside
banks and depositors is perceptibly slow
ing up, and by the middle of January mat
tiers should begin to approach the normal
American banking resources have been
tremendously fortified since the second
week Of the panic. There has been an in
fusion of more than $1O0, OOO, 600 of foreign
gold. nearly 100000. COO In new national
bank note currency. about $75,OOO.OOO in
government deposits. and at least $780,
OO0. 600 in emergency clearing house GER
tificates. In New York and most other
he ring }c fefn