The Washington times., 1909-12-19
MARKET CONDITIONS
FAVOR BULL SIDE
Growing Confidence in Abil.
ity of Financial Interests
to Hold Values.

! NEW YORK. Dec. 19.-Con6dence in
the ability Of the big financial interests
10 so manipulate the market so as to
! give ii a gradual advance, is becoming
| very general. While there Is no belief
in a runaway bull market, and the
| taking OF prOhts viii be continued on
large scale. yet the situation is so close-
" IN hand that the bears are not pre-
I pared TO take many chances on iheir
side unless they are encouraged by hap
| peningS not yet IN sight. The manner
| In which the market has been held for
some DAYS, with just modest I'D vances
/ has encouraged the belief that the mas
| tiers have plans for a Janu1ry rise.
| when the millions of interest and divi-
| deno moneys shall seek reinvesrment.
] Europe has taken material interest in
I the recent happenings with references to
/ tho change in control Of the Equitable
Assurance Association, and Is of the
4 opinion that the position held by ]. Pier
| pont Morgan will be even stronger than
ever.
| Wan Street has always accorded to
| Mr.. Morgan due recognition OF his posi-
! ton as 4 market leader They have
| called upon him TO StTaighten out the
most didlcult OF financial tnngleS and he
/ mas never failed. The Street considered
the late r Il Hartman as a daring
speculative leader and manfpulator hut
/ they give credit to Morgan for both
courage and conservatism. and the trad
ing element viii follow him more or
/ less GnTeservedlY-and the story is that
Morgan has promised a bull market for
Christmas
Bull Side Favored.
Whether This prediction comes true or
hot. II is reasonably safe to take the
ouI side OF the market on anothe the
ory. and this, on the strength CT the
l nlaTEpf no. "a
any impression on il, and Their reticence
at taking The short side When II annears
as well balanced as it is TODAY
We will be fortunate If We "a, s,.,,s
sOid exports, indeed the conditio, of tba
iofeiSn exchange market is Les:JedIv
against the United States and lilo ,,l.;o.
u e@cnShgS IS very near the god ex
49, bOHI me general theory is fnat
Sold shipments will commence iror,elit
ately out that they will be onI Rode
Hte Inc great Improvement i'm orr hus5-
ness mas been responsible for the very
d ,5Sd'y lhllportat lions of foreign merchan-
use while the high market vanIes of
wheat, corn. and cotton have been
against our export trade
England mas not been a large buver
OF our securities although re nj lv LARGE
blocks Of stocks ana bonds q ere niscs5
privately on the other side and Mi N
any noticeable Improvement tae foreign
TTpsih a., WI likely show A good increase. |
Iuhate, inasmuch as il has enabled the !
financing OF the bulk OF the croD move /
ment, and when they do commences. The
nnanclsl condition will have been i'm
proved by the return of crop funds
Railroad Earnings Splendid.
The earnings Of railroads end Of in !
dustrial corporations are making i'm
portant gains right along ana the res,,It |
Is evident in some rather prominent adj !
vances in dividend rates. DuriDe inc
iast week the Reading directors raised
tlelf dividend 10 per cent basis
theIepy giving warrant 10 the strong
nlaI hel Ior the stock on a basis much
700 hlgn when based on the old divi-
dend rate During the month Atchison
mas gore from a per CEN to a = ner-
cent stock; Atlantic Coast Line from 5
10 ., Central of New Jersey iron, & 10
10. Louisville and Nashville from, : neT
cent to Z per cent; Norfolk and West
ern from 70 ,, and the St Louis and
ooulhW esteTn preferred has made a > !
peI cent declaration versus nothing in
iSN. II vas only recently since Chess-
peake and Ohio increased its rate from,
10 per cent and Steel common wag
put on per cent basis.
FOLLOWING a cute little way thar IL !
mas wan street discounted THESE raises
before their declaration. and when the
announcements were made they were
met with lower figures
wall street discounts everything on
me good side: il is only the unexpected /
that mas drastic effects. The Presidents /
message was 80 mild that II was a
poWerlul bul influence, although IL is /
generally known thai he will treat rail |
foau legislation recommendations in 4 !
separate message While he may rec |
ommend some drastic action the Stree
reefs confident that Congress viii not I
make any drastic laws at This time
Many railroad companies are tal<ins, no
chances Of Federal regulation of ccpi- !
taliZatiOn, and for this reason 20 i.iI /
ing care of Gngneincr
ume TO come. II is confidently prp- /
Hlcted mat Baltimore and Ohio because !
OF us large betterments, will soon have
TO bring out an issue Of new stock.
NoOre-Hawley Looming.
The Moore-Reid party. with the Rock
Island system and some allies. and the
Hawley combination, both loom nm as /
factors IN the Southwestern rerrifor,' /
Both factions appear to be working on
i'altllonlous INES but they seem 10 be |
certain 10 advance the interest Of their
speci2ltieS, all OF which are now favor
ites. Fncre are some Indications OF an
understand ~ between the Moore and
the Gould interests. Stocks iu .Lase
groups should be- closely watched as
they are likely 10 play an mporttlt
part III any bull movement along the
That the public is not in the cool,
market IS just as much Of a facf To-
day as II has been for months MAST
u seems impossible to re-attract thcir
attention TO the opportunities OF the
market As a result there has been bl,4
little actual distribution OF stock Room
traders do not buy stock in expectation
Of taking IL up: they a re i'm and ont. Inns
they pay their losses and take their
profits, so that the big financial inter
ests have the bulk Of the securities
still IN their strong boxes. This is one
reason why the Street does not Iool,
TOR a decline-this and the fact that
some Of the pools have plans I'm pirLIe
that VIII give them higher prices.
Rumors Of copper combinations, huh
talk on Smelling and a promise OF I
higher prices FOR Stcels encourages .
traders in these stocks. LabOr's plant
against the Steel Corporation has had
no effect. the profit-sharing plan be-
ing counted on to hold the army or
workers in line.
L-a one cnn.ar-aLlL-a unLa IN LLn IL !