The Washington herald., 1907-12-18
WALL STREET NOTES
Active Stocks Weak, with
Reading in the Lead.
WATCH NEW YORK CENTRAL
Extra Dividend Declarations by
Two of It's Subsidiary Lines Make
Prospects Look Brighter - Sharp
Decline in Air Bake Due 10 Fear
of Reduction In Dividend.

New York, Dec. 1.-THE active stocks
were weak at the opening this morning
with Reading the weakest OF all For the
special weakness in Reading a reason
was found in the fact that in compliance
with a provision Of the Hepburn law the
anthracite roads may be compelled to.
dispose Of their coal properties before
May l. next. The companies believe that
the section of the law covering this point
Is unconstitutional. but naturally there
We're holders of Reading stock who did
not care to take chances on a law suit
where the matter at stake was of such
great importance.
As a piece Of legislation, the clause in
question was spoken of as about the
worst muddle that had ever been pro-
duced by any legislative body. but the
fact could not be disregarded that il was
6n the statute books, that the time
allowed for compliance with its provisions
had nearly elapsed, and that heavy penal
ties would be incurred for noncompliance
IN case the railroad lawyers We're not
able 10 prove their contention Of its un-
consututionality.
Although not conspicuous In point Of
activity. New York Central attracted as
much attention by its movements as any
stock on the list. The principal interest
in the stock concerned the dividend pros
poets, and was heightened by the declara-
ton Of extra dividends on the stocks OF
two such important subsidiaries as Lake
Shore and Michigan Central
Apprehension of a reduction in the
dividends was said TO be responsible for
the sharp decline in the price of New
York Air Brake, but unless al signs
failed the movement resulted almost en-
tirely from a bearish attack, the lack OF
support, however, being so entirely COM
plete as TO almost convince the street
that to-day's declaration would make a
reduction OF the per cent rate. which,
for many years past, has been distributed
70 stockholders.
1t is understood that the business Of the
New York Air Brake Company is highly
prosperous, but OF such volume that a
large amount Of working capital IS
needed 10 run It, and it is the latter
factor that will have 20 receive the great
est amount OF consideration from the
directors before they decide what portion
of the earnings should be distributed 10
stockholders when all or the greater part
Of them could be used to- advantage BIZ
the company itself.
Dlstillers' Securities made a new low
record on apparently good selling, a large
part Of which came from a house that
had been a member Of the pool until
a few months ago. All the talk on the
stock concerned the dividend outlook and
was Of a pessimistic character.
Great Northern and Great Northern Ore
were weak on liquidation that probably
reflected the necessities OF some lndi-
vidual who apparently was not interested
in Northern Pacific. this stock continuing
firm in spite Of the weakness in kindred
issues. Elsewhere in the market there
was evidence of a dribble OF LIQUIDATION
which in some inactive issues resulted In
heavy declines even on a small volume
Of transactions. Morris and Essex. for
instance, dropped l6la points from the last
previous transaction on the sale OF 100
shares. and Federal Mining and Smelling
preferred on a transaction Of equal vol
ume lost go points