The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-07-24
7BEAR SIDE OF MARKET FAVORED
OPERATORS IGNORING GOOD NEWS
Quiet Absorption of LOwPrced Stocks Dividend
Explained Loan Expansion Facor-Crops and
By JOHN GRANT DATER
Especial Financial Munsey Pubcatons


| iusted at once. OF some very serious
complications VIII assuredly result IN
connection with financing The movement
Of the cotton crop. Probably the near
solution Of the intolerable situation,
which has placed a premium ~ fraud.
rests II the fact that It has become 50
serious that a way out must be found
mighty Mixed Developments.
The weeks developments have been
OF highly mixed variety. II Wall
Street were not dealing with q. condition
Of mind. more attention would doubt
less have been paid to the favorable
DEVELOPMENTS. but. as II was. good news
was ignored, and its influence was mini
mized- while any unfGvCrabIe feature
was maSnifed beyond all due proportion
or influence The reduction Of the Ma
tlonal Lead common stock dividend is a
case IN point. Take the matter for what
it is worth and il IS cutie clear mat
the reduction Sas the result OF excep-
ticnal conditions arising out Of the high
cost or Iinseed oil. an article essential
to the company in the production OF it's
principal product white lead. This
high cost is the direct result Of q short
age II aaxseed. which crop. according
70 the Agricultural Department re-o~f
cent against 81 Der cent q year ago
Wall Street acted as II the National
Lead WAS wholly and solely a metal
stock and set about selling all indus
trials. out particularly the shares Of
metal and smelling companies. 5 q re-
suit Of the dividend action OF a c Jrpora-
ton which owns some lead mines. chief
~ for the purpose o. obtaining the ma
terial from which IL manufacture white
lead
The performance reminds che verv
much Of the old story OF the man who
IN years gone by. bought and sold Can
ton Company stock, as the price Of Tea
fuctCated IN the commodity market nm
mindful OF the fact that the venerable
Baltimore Land and Improvement Com
pany was located some 5000 miles avyav
from China, and was not engaged in the
tea trade, as he thought Il must be
quite apparent even 20 Wall Street ooe~-
aJors that the high cost Of labor and
material IS reducing manufacture mo
fits everywhere, and Il Is no more s11--
prisins that II should reflect in a white
lead manufacturing company, through
an advance in Hnseed CT growing out Ct
high prices and prospective crop short
age than that Il should result in cruel
losses 20 textile manufactures, the DRY
goods industry, and 10 thousands Of coz
ton operators in the New England mills
because q group Of spectators have
taken advantage Of a cotton crop srorE-
age 10 squeeze the life blood out OF one
OF the country's great industries. The
cotton SITUATION Is today the most dis
uTplnE single feature in the entire In
dustrial and commercial situation Tor
II IS estimated that not more than 50 ue-
cent OF the textile machinery IN the
country ls IN operation and the loss 20
u !
drySoOds industry is inCaIcuIabIe.
lndouDteoly the decline IN the indus
trial issues on che exchange at the close
OF the week reflected uncertafutv - 10
the possibility Of these companies main
tanning their present rates Of dividends
N the face OF high cost OF labor ard
raw material during an interval OF I'M
pending trade reaction But 81 should be
recalled that The industrials did remark
ably well during the intervals .5f lessen I
go business activity N 1913 and 1915. and
that companies like United states Steel. I
international Harvester, and many
oLneFS nave made line reports Of earn
reason now 10 aDpTeheud much Inherent
results IN the near future than in past
PERIODS or contraction or course the
lead company has been severely critics.
co Tor acting upon its dividend reduc-
ton so far in advance OF its payment. I
on October 7, but Wall Street was en-
gagged in attempting 70 stimulate G
rather foolish movement in copper
stocks, and IL would have been equally
as critical II the action had been de-
ferred until the company had diminish
ed its resources below a point OF safety
II would have ben still more critical
than now had the dividend reduction
been preceded By an active selling move
ment in tie stock Considering all the
circumstances in the case, the action
seems TO be singularly free from evil
dences of stock jOb5ery, and 1t may be
positively asserted that II was prompted
by prudent business considerations
alone
Politics Looming Up.
The bank statement today made an
other highly favorable showing, as
Wall Street knew It would large
" increased reserve and cash holdings
and in loan COntraCtfOns, but the kuOwi-
edge that such would be the case did
not prevent q heavy selling movement I
and some Of the lowest prices Of the
year to date resulted in the general list I
Uncertainty stiu prevails as TO the act
ual condition Of the corn and cotton
crop, and that must be the case for
some time yet to come, but private ad- /
wees, which came to hand in recent
days from the West. are certainly more /
hopeful OF the spring wheat harvest /
than they were at the time Of the Gov
eminent report, but, OF course. very
much OF the injury TO spring wheat in /
Minnesota and the Dakotas j. 5eyopd /
repair
IN banking circles, apparently 7,oTft7- /
cal considerations are recefv r70ra 4
attention. and Il cannot be 7euied thai
activities in the direction OF OYSTER Pc
IN the political situation everywh ere. - I
eXert1ng an unSettling influence upon
Wall Street sentiment