Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-01
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
| NEW YORK, July Even those who
have been pessimstically inclined have
| been favorably impressed with the stronger
| tone OF the stock market in the face of not
few unfavorable developments It is
known that the character Of the market
Tor the greater part of last week inspired
considerable confidence. Some highly
| speculative interests became unduly en-
thusiastic, and assumed that the advances
marked the beginning Of big bull market
| No one who has looked over the situation
at all carefully expects any such develop
| ment as that but 1t Is very generally be-
lieved that the corner has actually been
| turned. and that from this time on i'm
provement will be the order OF the day. But
all conservative interests predict that It
will be. or should be at least, decidedly
gradual Those who are familiar with ac-
| tual conditions in the monetary situation go
80 Tar as to say that 1t will be practically
impossible to have an active speculation in
stocks for any considerable length of time.
would establish within short time money
| rates that would be practically prohibitive
| or general participation in the market.
81
There Is growing disposition to buy
quietly some Of the lowest priced railroad
| issues. on the theory that they would not
decline seriously from the present level In
| the event of any development Of a striking
ly unfavorable character, and that in view
Of large earnings that are being made
these securities are practically certain to
have very substantial recovery. It IL un-
derstood that most of the buying of this
character Is not on margin, but outright,
because Of the low prices at which the
| stocks are selling and because the buyers
for their profits. It Is learned that Rock
Island common and to some extent the pre-
rerred stock have been special favoriteS
with buyers Of this class
The earnings for the fiscal year Just
closed were equivalent to a substantial
dividend on the common stock, but every
one familiar with the plans of the manage
ment knows that distribution on that is
sue is not likely to be ordered during the
fiscal year beginning today. A prominent
representative of the Rock Island says,
however. that II the earnings this fiscal
year compare at all favorably with those
Of last year. 1t Will be impossible for the
directors to hold back dividends on Rock
| Island preferred after July !. 1908. With
the greater economies in operation. which
the directors of many of the railroads.
both large and small, are planning to bring
about it Is believed that the showing for
all common stocks will be proportionately
better during the next two years than 1t
| as been for the last two years.
On the other hand. It is learned that there
has been a quiet absorption Of the pre-
ferred stock of both the railroads and in
dustrial corporations and Of the longest es-
tablished common stocks. on the theory that
not for some time will it be possible to buy
these issues on a more attractive basis than
at present. Those who have investment
securities to sell over the counter say that
there is growing disposition to buy stand
,k~ o1x- fl1r& I, ho, 10 hmm nrrn
small conservative investors are no longer
satisfied with 4 per cent return on their
money. The head Of an investment house,
when asked for his opinion as to the cause
of the failure Of the city bond sale. said
that it simply showed that the investor
wants more than per cent for his money.