New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-22
ALLAWAY'S REVIEW

Yet, except at the very close 80
week. the stock market has hung h.s
stolid-nothing doing.
OF public participation sueeu,,.,
there is not the faintest sign ~
Of transactions is az the rowese al.
corded in recent years. Even 49,.
siona1 transactions dwfndle n -.
minishing point II is. Of course. ts..s.
TO produce quick spures or quick -
by hasty bids or offerings. In. ~
actually mean nothing. There IA 49,
tiative Of influence on either the s,.,,
or the selling side. Neither bnn
bear shows any sign Of vitality.
A disquieting feature IS the prot-,..,
weakness Of the bond rnarksf IT..
time money around 4 per cent II ia.
encouraging that good bonds paying -.
rate are not salable much IL anv 49,.
90-at which price they yield Az -
cent. II is hard 20 find plausible 49,.
nation Of this bond market slsus.,.-
Many fancifui theories are advancsa g.
none IS satisfactory or conclusive. r.
fact stands out that capital ia shv =. q
bond investment And this Is in sin,-,,.-.
contrast with the prevailing auota,,,.
for dividend paying stocks NAM !.
which can be bought at prices vlae,r,
them above the bond value level Ts,
is ACKNOWLEDGEMENTS
There is little change in business. con.
ditions. Crop prospects are good Rna.
ness maintains a sturdy development,
The country at large is pursuing lts VA,
with absolute Indifference 20 what Var
Street, thinks or does From one mir.
of view this is encOurag ing enough. BIZ.
Il fs not inspiring narketwise. There &,
no Wall Street comfort in the fact tha.
the public ignores the security market
What weighs upon the security marks.
or at least upon it's speculative side.
with increasing Oppressive effect Is II,
continuing revelation Of the financial IT,
cessitfes Of our railroads. Company af,sr
company floats. or attempts to float. new
bond or note issues which aggregate
hundreds Of millions IF dollars. Tia
question naturally arises how this VIII
influence the quotations for existing Sc
curfties. II matters not whether such
loans are placed at home or abroad
Though IL NAV be noted that they can
not lust now be placed at home). the OBJ
legations so created become prior liens
as regards stock capitalization. This IS
a disouieting element The excuse is
that the railroads out Of their pressns
earnings cannot continue 20 pay existing
dividends. increased wages and increased
cost Of equipment How 70 raise trafas
rates 20 a point where the deficit point
can be met certainly is a serious prob
lem. Realizing this the railroad CON-
panies choose the easier method-pursEs
the primrose path Of borrowing To ali
such performance, whether individual o.
corporate. the day Of reckoning must
come. Debt piled upon debt is not ths
foundation Of prosperity. Pnenomelai
good luck can extricate the INDIVIDUAL o.
fbe corpOratio from situation so cree
ated but IL is unwise 70 predicate 0pe-ss
tfons for the future upon rainoows.
The fact stands out that our corpora
TiOnE.
osssine through a trying period OF re-
adjustment 10 political and social and
economic conditions Of which the outs
come cannot yet be computed
Prominent in the news Of the weeA
the increase of the dividend from pes
cent. 20 5 per cent. on Chesapeaks anu
Ohio stock-an increase long since Iors-
cast in this review. Edwin HaVisS
makes good-keeps his pledge-perniis
shareholders in his properties 70 get tass
fair share Of earned profits. bui 10
pubIic seems 70 care nothing aoo1t IL
chesapeake and Ohio Ianguidly moves Up
a point or so Just in sympathy Win tne
rest Of the week end market O0serVeis
will recall that no enthusiasm folo'e'
the recent advances in the dividend Istes
OF New York Central and BlooSyH
Rapid Transit Chesapeake anu UIllO
follows these precedents Were IN
rronitious such dividend acton 49,
Stimulate speculative enthusiasm. IH0
very fact that nothing or the hI.I :,
ours is testimony 20 public apaLa.s;,
public distrust No other expianal..,sA - :.
possible Wall Street bargains .
begging
Little that can be regarded as authei"'
comes from the other side as TO 'ne HO1-
ton of American securities IN EulOV"
We have daily promises-daily postum
rnent. Accomplishments OF some Guns
cuence are nearly ready for annoanI
u1ent. but IL seems 70 be certain 'AA'
trfb,1ted forecasts have been exasse
lions There is no reason Why
American Hallway bonds should hO' -
a ready market in France or at -
and Berlin-certainly no reasOH !,
there should be hesirant purcnA''
them in view of offered CONCESSIONS
Guiding special banking cofiii''sS. So,
special taxation. special 'cn2lse'
can include a variety OF certain 80
Pear snecuIators denominate this l0s'-
bond program as a pawn brokerass =
Torrance. Bear spectators aie -.
diced. Bull operators see IN the -. -
tions what close approaches tno "a
az ths millennium Bull operators =
preiudiced. The truth is that 'ilo -.
business Of marketing s15O,oo0eoo -,
rites in Europe is rather coh'i'''- "A.
undertaking ALI commissions - 4
cred. Europe is practically -
American stocks. has been s0'+ -.
long time. To rsbuy on m"'N Ia
scale than current proclamatioll.' Ia. "a.
will be no very great feat The h.-e -.
BUYER will find value. equal 70 ~ -.
that anywhere else in the woFlu -. s.,,,lE
vided, and value at ratio ii.' '..g,srg
below what is the average for ST. -.