Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-07

with money and stocks is an old familiar
play in Wall street. 1t has landed many
an imprudent or unlucky Speculation. They
tried to get John W. Gates that way and
thought they had him. At a critical
moment, however, he dug up So, 900, 600
in gilt edge securities which were in the
keeping of the Illinois Savings Bank and
supplied himself with the necessary forth
f1cation.
The market has entered upon a period
of cheap money. Local banks have
abundant supplies which they are willing
to le- out for the next sixty days at
cheap rates. They have put call money
down to 11a to per cent and are bring
ing in gold in large volume. Gold i'm
ports and engagements on this movement
have already reached a total of about
$4,000 600. This plethora of cheap
money will make it easy to finance a
formidable bull campaign in stocks. That
such a campaign is in an advanced form
alive stage few doubt. The only point
Of real uncertainty about the situation is
as to the time Of starting the ball rolling
Expect Cut in Dividends.
The transcontinental stocks have been
under pressure from an element which
has become imbued with the idea that
the next year or two must witness a
general scaling down of. dividends AS
everybody knows, the freight rates from
the eastern line of the Rocky mountains
to the Pacific coast have been and are
oppressive. The action Of the interstate
commerce commission in ordering cut in
some of these rates is taken as fore
warning of a general breakdown in these
oppressive tariffs. True, the commission
held up the order for a reduction. but
the move has served to turn. attention
to the situation out in that section of
the country and to the force of the
movement in many of the far western
states for cheaper transportation.
The fight has been going on for thirty
years, and at last it seems to be bearing
fruit. With increasing density of traf-
fic there is growing virtue in the claims
of shippers that they are entitled to bet
ter treatment at the hands of the rail
roads. If this idea crystallizes in gen.
eral cutting down in charges. then it is
more than likely that dividends will have
to suffer. Present prices of several OF
the great s-Mississippi systems may
be said to have already discounted divi-
dend reduction. The Hill stocks. ST
Paul. .Atchison and Southern Pacific,
would be worth the money they are now
selling for with the dividend rate l to
points lower and assurance that there
would be no further cut. Price read
justment seems to have been going on
with this in view.
Crop News Important.
Attention is centering more now than
at any time in crop and weather news
from the west and south. 1t is recognized
that cotton, corn, grass and fruit crops
have suffered impairment of condition
and that there is still room for further
damage. Every house with connections
or branches in the cities of the west
and south is loading down its news clips
with reports from the field. The dope
is demanded and must be supplied. The
cotton report this week has been gen.
orally given favorable construction
Leastwise 1t was not as bad as many
looked for. and that went a long way
toward satisfying the stock spectators
who have been gambling on crop condi-
tons.
There have been no new moves in the
copper situation. The gentlemen's agree
ment to curtail production went into eff
feet the first of the month. The first ef-
feet was to bull the copper share mar
ket, but insiders have done little to en-
courage bullish sentiment. They have
given it out that their main object in
life is to reduce surplus supplies and to
stimulate consumption, which latter can
only be done by keeping down the price
of the metal. Hence, with reduced pro-
duction and copper metal under Ii cents
there is little in the situation to bull the
share market on.