The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-09-16
Wall Street Questions Ability the Hill Roads Maintain Dividend Rates
ACTIVE ERRATIC STOCK MARKET
WITH BEARS IN CONTROL
LATE IN SESSION.

NEW YORK, Sept. 16.-EverythinE is
up in the air on the street and traders
are seeking information from every
available source, and getting it, in
sort of disjointed fashion, with no two
stories alike and with bull and bear
talk intermingled and jumbled in
disractins fashion. one thing is certain
and preem-inent-it Is a dangerous mar
ket and the trader attempting TO fol-
low it will probably get a jolt whether
he buys or sells
Just at present the Hill shares are
the "Jonahs'' Of the list. the old re-
tables. tried and found true, are be
ginning to wobble, indeed, they started
it yesterday and kept it up for some
time this morning, only steadyinS them
selves along toward noon, when the
bunch Of shorts started in on their daily
evening-up process
A rather peculiar condition has de-
veIoped, nothing less than = feeling OF
doubt that is growing, regarding lie
ability of many Of the leading railways
10 maintain their dividend rates IN Ihc
face of continued losses n receipts and
this suspicion extends TO many old time
1aVOTiJes. such as the Hin STOCK shares
that were considered just Is SOOu IS
Government b1uuS Tor investment puT-
poses.
one of the REASONS that inspire this
lack OF confidence Is found IN the tact
that new issues Of stock put cut AZ
times of prosperity, are about que 10
receive their share Of the annual dlVl-
dend distribution. Northern Pacific has
Sg3OO0.U 900 new stock on which To pay
dividends. and St Paul 500, Ogp,O0O-
New York Central declared its reSu-
lar dividend. even though the earnings
through the quarter were not sufficient
To pay interest on its funded debt, and
the dividend VIII have 10 De PAD from
the proceeds OF recent bona sales. Yet
the fact that the dividend was paid
caused some demand for the stock
There are many usually well-posted
people who do not believe that the dlNl-
dend on the Great Northern or Northern
Pacific VIII be cut. even though IL should
be necessary TO touch the surplus
There are also those who believe that
the Standard OIL crowd wants TO get
back the stocks they have been selling
on hard spots and that they are willing
10 see the market go off. The Street
did not like the fact that Mr.. Harri-
man utterly failed 10 confirm any one
OF the numerous rumors upon which the
market was advanced. He did declare
that his position prevented him from
being a director OF the Wabash or Mis-
souri, Pacific" For all this the latter
stock presented the strongest front Of
anything on the list, while the high
grade rails, like Delaware and Hudson
and Illinois Central were very weak in
the early dealings.
Some wise observers thought that the
technical position of the market could
not he very good when an explanation
of a two days drop had To be eN-
planned, after "A ten weeks rise, without
explanation.
The general run of well-informed
brokers admitted the strained appear
ance of the market but asserted that
they belieevd that the plans of the ma
nipuiatOrs called for higher prices and
the extension of the short interest was
move 10 broaden the market. They
advised lnactiOn pending a well deVel-
Oped indication Of further advances, i
when they might be followed
After the opening break there was a
goo rally throughout the list. This car
ried Great Northern. Northern Pacific,
Nipper, Union Pacific. Reading. Fries,
and number Of stocks above the
closing of yesterday The weaklingS
that did not respond to the general inn
prOvement were Atlantic Coast Line,
Shelters, Canadian Pacific. and Sugar.
with a few minor stocks Pressed Steel
Car was off Il on the story that the
directors were divided on the matter
of a dividend declaration It is evident
that Locomotive directors sold most OF
their holdings before the dividend meet
ing as seems to be no rush of stock
for sale at this time.
In the noon hour the stock list started
on another slide down the tObOggan.
under the lead OF the Hill shares, Great
Western bringing ~. and Northern Pa
cific Is below yesterdays closing Weak
ness developed all around the board and
the bears, telling elated at the course
of the market, gave it another push
doWnhin.
The low prices Of the session on Hill
stocks I'D to ! o'clock were sustained
on the leaders. and the whole market
seemed about TO be following suit.
The slump came abruptly and was
started by Northern Pacific selling from
IA 20 40 and then to 139. After the
break the market steadied, and when
the bears started covering, recovered
slightly.
ReadingC which hadsoId at 1861. drop