Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-20
BULLS AND BEARS
Special Dispatch to The Star.

| Special Dispatch to The Star.
| NEW YORK, June 2O-Wall street is pay
| ing more attention at the moment to none
| tary conditions and the probability of q
| scarcity of funds and Of higher rates a
| little later on than to the outlook for this
| years crops. The banks are inclined to
| be cautious with respect to money. and are
| indicating to their clients and others that
| fairly stringent conditions are likely to OBJ
| tain two or three months hence If not at an
| carrier date. 1t is known that collateral Is
| thing except gilt-edged securities 1t is diff
| fcuit, IL not impossible, to obtain loans at
the rates quoted recently.
| Il
Another question which is receiving con-
| slant attention Is the probability of a fall
| ing off in business during the rest of the
year. Representatives of widely varying
lines OF trade who are coming to this center
daily continue to maintain that so far they
nave been unable to note any change or
any indications of a material change.
One Of the largest wholesale dry goods
merchants west of Chicago. who is here,
says that there has been no change in his
business, except in the way Of steady in
crease. and he does not believe that there
will be any marked diminuton during the
rest Of this year. 1t is known. however,
that some of the most prominent bankers
III tiiS city III discussing the question WIN
important mercantile interests who are ex-
| tremely hopeful regarding the situation
have asserted in positive terms that there
must be falling off in business. other
wise it would be impossible to go on with
out serious trouble.
Mercantile and other business people
throughout the country seem to be in a
practical deadlock with the banking inter-
ests the former maintaining that general
conditions do not warrant or Indicate a
slowing down. while the latter claim that
less business must be done. Inasmuch as
the bankers are depended upon to furnish
the necessary funds, it Is believed that their
opinion will prevail.
X
The point Is made that the failure Of the
Reading directors to make any announce
ment regarding the common stock dividend
could not have been due to the lack Of a
quorum, inasmuch as officers could not have
been elected without quorum. 1t is ru-
mored this morning that certain powerful
interests in the board desire to have the
rate advanced to 5 per cent and that others
are in favor of keeping 1t at per cent.
This rumor includes the statement that &C
ton has been postponed until the arrival
from Europe Of a very prominent banker
closely identified with the Reading. This
fea ture of the rumor is not generally cred
tied. because 1t is pointed out that there
has been ample time to reach this individ-
ual by cable and to get his opinion and
wishes regarding the matter.
-.
Opinion is divided as to the ACCESSIBILITY
Of increasing the ex-dividend at this time
in view of the litigation that has been be-
gun by the federal government. Some
maintain that until this litigation is out
of the way it would be the height of folly
to raise the dividend Others insist that
this legal action should have no influence
| upon the directors with respect to the divi-
dend question, particularly because 1t Is
known that the earnings applicable to divi-
dends are equivalent to much more than
per cent on the common stock, and that
the stockholders are entitled to larger
distribution. 1t Is even claimed that the
latter assertion might be used as an argu-
ment in the company's favor in the present
litigation, as it might be argued that a
dissolution of the present arrangement I'M
der which the company operates would
work hardship to the stockholders and de-
prive them of the dividend which 1t is now
possible to pay.