Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-09-07
BULLS AND BEARS


Special Dispatch TO The Star
NEW YORK. September lit Is the opn-
Ion of somewhat conservative observers
that the market viii continue strong until
after the outcome of the city bond offer
Ing is definitely known. If this turns out
we'll. some people are disposed to believe
that general profit-taking and renewed
short selling will bring about very fair
sized reaction. Banking interests, while
much more hopeful than they were two
weeks ago, are strongly opposed to any
plan for advancing the market sharply
from the present level. They point out
that the active list has had a very sub
stantial and pretty RAPID recovery and
that reaction of several points is due,
and would be beneficial to the market. Most
bankers think that money will continue to-
work easier, but say that for some months
monetary conditions were disturbed that
the Improvement should be allowed to go
on for a long time, and not be checked
Dy undue speculation.
Considerable is being said regarding the
new method of accounting outlined by the
interstate commerce commission for the
railroads which has been in effect
since July 1. In some circles attempt
has been made to convey the impression
that the provision of the new rule requiring
the setting aside of a certain proportion
or the earnings each month for a special
depreciation fund Will tend to drive would
be investors away from the securities be-
cause they will observe an apparent falling
Off In net earnings Officials of large rail-
road systems point out. however that while
the balance applicable for dividends will be
reduced, SO far the public statements will
show. the money set aside in this special
fund Will not be lost. but will be applicable
for purpose which has not been given due
consideration by some of the railroads.
Under the ruling the railroads will
always have on hand funds with which to
replace their WORKOUT equipment, and,
consequently. will keep 1t up to higher
standard than some Of them have been
accustomed to do. 1t is understood that
the Rock Island lines will set aside an
average of between and per cent OF
their earnings for this new account. Dur
ing the month Of July this amounted to
about $S50.000 on all of the Rock Island
lines taken together. On the Atchison 1t
amounted to approximately 100000 for
the same month.
Those best informed say that they do
not look Cor the declaration in the near
future Of extra cash dividend Of Is per
cent on Northern Pacific stock. as it was
rumored yesterday that the directors were
considering. They point out that the only
way that such large cash dividend could
be arranged for would be through the sale
of the company's equity in the Burlington.
While plans for doing this have been I'M
der consideration for many months, it Is
considered unlikely that they will be
brought out In the near future. The pro-
ceeds Of the extra Burlington dividend and
the surplus earnings in the company's
treasury would easily make possible the
declaration Of an extra cash dividend of s
or per cent and those who are in a posi-
ton to get the best information say that
nothing more in the way of an extra dis
tribution Is likely to be announced in the
near future.