The Washington herald., 1907-12-19
STOCK PRICES RALLY
Market Becomes Firm After
Period of DullnesS.
MANY DECLARE DIVIDENDS
Railroads Furnish Pleasing Sur
prise and Securities Respond Ac-
Per Cent, hut LOOsening of Money
Is Expected i'm the Interior.

New York, Dec. B.-After considerable
irregularity at the opening. the market
to-day hardened on the announcement
that the directors of the New York Cen
tral had declared cash dividend for
the quarter at the rate which has been
in eftsct for the past year.
Previous 20 the announcement. there
had been trength in a number of lead
ing issues ike Reading. Union Pacific,
Great Northern. and Northern Pacific.
and it was evident that the short inter
est was taking measures to retire some Of
its contracts from a very general feeling
that for the time being the market had
become Oversold.
Amalgamated Copper was weak. but
some other industrials that had been de-
pressed in the past few days showed a
distinctly better tone. Disullers' Securities
recovering materially on the announce
ment that while the dividend would prob
ably be reduced, il would not be passed.
New York Air Brake rebounded on the
shorts, although the directors decided 10
defer action on the quarterly dividend.
Help Rally OF Market.
The directors Of Reading. Lehigh Val
ley and Pittsburg, Cincinnati. Chicago
and st. Louis declared dividends on these
stocks at the usual rates. while an in
creased distribution was authoized in the
case OF the Pennsylvania Company. all Of
these favorable occurrences materially
helping the rally in the market
In the last hour a slight reaction oc-
CURED on profit taking by traders. with
out, however. disturbing the undcrtone.
which continued fairly strong. Call money
rates fell from j. per cent at the open
ing TO . per cent at the close.
Generally speaking, the rise in prices
that occurred to-day was due to the
practically universal feeling in the finan-
cial district that stock market rally
ought in the nature Of things 10 take
place after a period of depression that
had lasted uRTelieved for nine business
days The total decline in this length Of
time was not large, and the market was
dull rather than weak
Interest Il Increased.
The genuine liquidation that went on.
save in the case of a few Industrial
stocks. seemed to be of dribbling charac-
ter. Yet there had been recessions Of
from to points in many active issues.
and there were not a few signs that the
short interest in the market had been
considerably Increased
The news. too. bearing upon the mar
ket has not been altogether bad. In ad-
dition to yesterdays announcements Of
the enlarged dividend distributions Of the
Lake Shore and Michigan Central Rail-
road. came the increased Sefni-annual
dividend to-day of 4 per cent upon the
stock of the Pennsylvania company lines
West Of Pittsburg. and also the action OF
the New York Central directors in leav-
ing the quarterly dividend upon their
company's stock at an annual rate OF 6
Per cent.
Opinions as to the merits of this last
named policy are, of course. OF diverse
nature On the face Of things it certainly
seems az if the New York Central Com
pany had better use for its money at
present than in continuing dividends at
rate which, when it was fixed in jan
uary of the present year. was commonly
thought TO be too high.
May Make Bond Issue.
On the other hand the business and
money-raising exigency Of the company
have TO be considered. If the manage
ment, for instance. decided to follow the
plan RECENTLY successfully practiced by
the New fFaven company. and make an
issue of debenture and convertible bonds.
the scheme might be marred by such
reduction I'm the dividend on New York
Central stock as would further depress
the price of the shares: and it may be.
too. that the financial resources of the
New York Central have been the sub
ject OF UnderestimatiOn.
Further, to-day, although the prevail
ing rate of call loans was Z per cent.
and the judgment in the best quarters
was repeated that no substantially lower
rate would obtain during the remainder
of the year, it was said at some Of the
leading hanks that there were stronger
sicns fhaf there had hean q lnnco.,tr..- -