Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-19

Cheap and abundant money is becom-
ing a decided factor. With call money
at per cent and the time money going
begging at 4 per cent there is clean
scalp Of two to three and half points
In buying the best standard dividends
with borrowed funds. Even Pennsyl-
vania, admittedly one of the choicest g
per cent stocks on the list. pays nearly
per cent on the investment at current
quotations. and Southern Pacific is even
better buy than ''Pennsy." AtchisOn,
Northern Pacific, Great Northern, st.
Paul. Brooklyn Rapid Transit, United
States Steel and dozen other sound
dividend payers yield around per cent
on the investment.
The situation was somewhat similar
from a money market point of view
when the late e. H. Hartman started
in upon that amazing hfteen-month bull
campaign in the early winter of 1908, ex-
were all to the bad. whereas now they
are at least normal. Then, as now, there
was to 313 per cent profit in buying and
carrying stocks with borrowed money.
Then, as now, the rich men with an JIM
side pull on the bank and trust company
surplus accumulated millions of shares
of the choicest stocks on capital that
would have otherwise rusted and mildew-
ed in the vaults. incidentally that won
derful stock market campaign impaired
tone and confidence to the business fab-
ric Of the whole country and set the
wheels going long ahead. Of schedule
time. The market has no such Ma
poleonic leadership as it had through 1908
present occasion does not demand heroic
management.
Heavy Shortage in Steel.
There is larger short interest in
Steel. probably twice over. than in any
other stock. 1t is stubborn abiding
short interest, and will be there should
the price rise ten or fifteen points. A
fighting contingent is welded to the idea
that Steel would be too high if it were
selling at nothing share. There is an
other powerful contingent equally "sot''
in its opinion mat the stock will go to
figure as a base line on a long upward
movement.
Between the two a never ending battle
goes on. and transactions run % to So
per cent of the total day after day. st.
Paul having taken its place in line with
other stocks Of its class, no longer pro-
sents the target for attack, and the
standing short interest is greatly reduced
IN comparison with former volume;
temptation. however. although a dan
gerous stock to get on top Of It is one
of the most adroitly handled of the
cuQued issues, and traders have a theory
that they might be right through twen-
ty-five-point decline, and still lose money
A bunch of big insiders in Amalgamated
are credited with having made dividends
in the market they could not get through
regular channels. Amalgamated is a
good COW to milk, although expensive to
keep.
Not Looking for Trouble.
President Winchelrs announcement that
the deal between the Frisco and South
ern Pacific was an offensive and de-
fensive" alliance was discordant note.
1t was out Of tune with bullish sentiment
on Atchison, Rock Island. Missouri Pa
cific and other competitive lines in the
west and southwest. These roads are
not looking for trouble, and the Winchell
proclamation tended to raise the goose
flesh.
The almost simultaneous Washington
bulletin that q minority report on the
railroad bill had been made and that
the Attorney General had been directed
to inquire into the truth Of the charge
that United States Steel Corporation is a
trust" furnished an excuse for savage
market raid, and also for a renewal of
shrill lamentations that the politicians
are "h-l bent on running business and
penalizing enterprise and success. Wall
street will lift its voice in a prayer of
when Congress puts up the
shutter and goes home.