The Washington herald., 1907-05-08
WALL STREET NOTES
Bears in Onslaught Against
New York Central.
ATTACK RATE OF DIVIDENDS
Pencil Armed Spectators Try to
show Interest Must be Reduced.
Admitted that Statement Is Bad.
Advantage Taken of DiscOuragiug
Crop Reports.


Admitted that Statement Is Bad.
Advantage Taken Of DiscOuraginE
Crop Reports.
New York, May 7.-When Wall street |
spectators sharpen their pencils it is I
time to look out for some extraordinary /
Every once in a while the /
impulse 10 find out things from the re-
ports of railroads and industrial com !
panies drives the speculative element into !
a maze Of figures, and amazing indeed
are some of the things they discover.
The impulse was strongly felt yesterday,
and with pencils pointed to a most in
cisive point the figures Of New York /
CentraTs results were attacked ana con-
clusions drawn therefrom that would
surely astonish the heads Of the roads
department. who probably
fancy that they know something ef the
financial condition OF the property.
Nothing could elude the spectators
sharp pencil Here was one proof. there
another. and presently an array of proofs
dividend rate should never have been
adopted, and could not be continued. To
the primary individual these proofs were
not convincing, and the methods by
which they had been reached were so
obscure that some of the embryo stats
ticians in trying to enlighten others only
succeeded in bewildering every one
around. and themselves more than any
one else.
The New York Central statement for
the quarter ended March 81 was a bad
one. II is unusual for the road to show
much of a surplus for the winter quar-
ter, and indeed, 1t is quite usual 10 find
a deficit after allowing for the quarterly
distribution TO stockholders during the
period, This year the weather was un-
favorable and there were the factors OF
increased cost of labor and materials and
the congested condition Of traffic that
tended greatly 10 make the movement of
business difficult and expensive. Nor
were these all New York Central has
been engaged in great deal OF con-
stTuction work. especially in connection
with its New York terminal improve
ments, and as the money market has not
been favorable to the raising of new CAPT
tai. il is not at all improbable that tho
company has drawn upon earnings 70
meet part Of the cost of current work.
4 more reasonable subject Of discus
sion concerning New York Central than
the possibility Of "a reduction of the dIvi-
dend rate, is the probability that the road
will be obliged 70 undertake some new
financing before very long. IL this con
nection, an issue of car trust certificates
has been talked OF. This would be a new
departure for the road. but one with
which no fault could be found. Equipment
bonds have become popular kind Of in
vestment security, and, as New York
Central has, in the comparatively recent
past. received a large amount of new
equipment, there is no reason why this
should not be placed In "a trust and the
certificates made the medium Of restoring
To the company's treasury the money
spent in making the purchases.
With its great earning power and val
liable equities New York Central should
be able, under any sort Of conditions, 10
earn The SO $4,000 needed 10 pay 6 per
cent on its SlS9.0oooe0 stocks.
Next 10 new Itth &E44Ald&r A4AE EA-e-A
amount Of bearish sentiment seemed TO be
heaped on Delaware and Hudson, though
it was not easy TO see why this stock
should have been selected for such unde-
sirable attention. The chief rumor was
that the company would be under the
necessity Of raising money 10 provide for
maturity OF notes given in payment for
stock OF the Hudson Valley Railroad, but
except for the mention of the name OF the
latter company, there was nothing in the
story that had not been heard Of before.
After the bears had succeeded in giving
/ the market heavy tone by exerting pres
/ sure on New York Central. Delaware and
HUDSON and a few other issues, they had
recourse to the fruitful subject of crop
| damages as a means to further their
operations and before long, every broker
/ in the room had heard from one source or
another that the government report to be
/ published on Friday would show d con-
/ dition of only 70 per cent for winter
/ wheat
/ Of course. it was not TO be expected
/ that the bears would lose an opportunity
to profit by the decline in temperatures
over large area in the West, and coupled
with the predictions OF an unfavorable
/ crop report. intimations that the condi-
! tions at the present time were relatively
much more Unfavorable than those OF the
/ first day OF the month on which the data
I for the government report was gathered
helped TO increase the selling movement
and generally depress the speculative
sentiment. Bearishness was apparently In
the ascendency, but that its power was as
great as it seemed 20 be. a few shrewd
/ operators were inclined to doubt on ac
count of the effect which they observed
in the borrowing demand for stocks.
There was a singular absence of rumol
bearing on Union Pacific Perhaps II wa,
that the bulls had exhausted all their re
sources IN the line of caution on the re.
cent rise and that the bears found no in
spiratiOn in a reaction of about points
after a rise Of about 30 points. But what
ever the cause, the activity was unaccom
panied by any news or rumor whatever
Neither was there anything particularly
interesting in the transactions in the stock
AT first the bears appeared 10 have mat
tiers very much their own way, and if late
in the day the stock displayed a some
what better tone, the change appeared q
result wholly from a sold-out condition
and the efforts of some of the bears I,
gather in their profits. No increase In IN,
! Legitimate buying demand could be de
Itected.
Atohison showed notable firmness
partly because the semi-annuaI dividen,
OF per cent will come off in a few days