The Washington herald., 1908-03-19
WALL STREET NOTES
New York Central Goes Back
to Five Per Cent Basis.
LITTLE EFFECT ON MARKET
Bears Seek TO Stampede Traders by
Giving Publicity to RumOrs of Re-
ductiOn I'm Dividends of PennsyI-
vania, b. a. o., Atchison, and the
PaciGcs-Readins Also Bearish.

New York. March B-Fifteen months
ago New York Central increased its divi-
dend from 5 per cent to per cent ard
company went back TO the old per cent
basis. and, although the stock In the
afternoon reacted with the general list.
the immediate effect on the price was
small
In both cases the news had been dis
counted IN advance Of its publication-so
far as concerned the stock itself-although
at the time the increase in the dividend
was made IL came as a complete surprise
to the rank and file of Wall street opera
tors. The wisdom Of what was done a
year and a quarter ago was doubted IN
a great many quarters. but to-days ac-
ton met with general approval.
The fact that it has been found neces-
sary to revert TO the old dividend basis
fifteen months after II was departed from
does not prove. conservative interests say,
that the increase to 6 per cent was not
justified. 1t proves nothing that needed
proof. and merely recalls attention TO the
well-known fact that conditions in the
railroad world have changed materially
within the past year
Following the announcement Of the New
York Central. dividend the bears began to
dance gayly all over the market. perform
ing some rather surprising antics 10 the
accompaniment OF rumor regarding the
alleged imminence Of dividend reductions
in the case OF such stocks as PennsyI-
van.a, Baltimore and Ohio. Atchison.
and, at a somewhat more distant date OF
Union Pacific and Southern Pacific. They
were untiring In their exertlons, but
whether it was these or operations OF
another kind that depressed the leading
railroad issues was a matter on which
| opinions differed widely
couple Of weeks ago American
Smelling and Refining stock advanced on
the announcement that the rate OF divi-
dend on the stock has been cut in half.
The New York Central reduction to-day
produced no great effect on the stock
subjected to 1t. and. while two instances
do not make rule they at least suggest
TO the trader that II is time 70 consider
whether the decline in the prices Of
securities within the last year and a half
| has not discounted about everything OF
an unfavorable nature that sas been a
subject of rumor within that time
Baltimore and Ohios statement for the
month OF February made a bad impress
sion. showing a decline OF 81. 256.S45 or
more than p per cent from last years s
fxr-tta taof1 49,
an extra day TO bring UP the total The
stock was heavy, and II seemed 10 be
regarded as a foregone conclusion that
the dividend would have TO be reduced.
Reading was not among the stocks
whose dividends were spoken of as likely
to be reduced. but the professionals were
bearish on it, nevertheless, their attitude
ton that the statements for February
would make an unsatisfactory showing
The bulls on the stock admitted
that the. figures would be considerably
smaller than those for the corresponding
month last year, but figured that as 1t is
a matter Of general knowledge that for
several weeks this year the mines were
worked only five days a week. the reflex
Of this condition in the statements should
cause no surprise. II II had not been for
this falling off in earnings, bulls on the
stock asserted. the price OF Reading. would
probably have gone up the past week to
the high level touched in January.
Union Pacific was called upon to with
stand the effect of number of adverse
circumstances-so many and of so i'm
portant nature that the operators OF
long experience said that X was little
wonder that the stock went down. Among
these were the fact that the company
Is a holder OF New York Central. the div
idend on which has been reduced. and
that company is siso heavily interested in
Baltimore and Ohio, whose common stock
dividend must almost inevitably be cut.