Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-13
Fifty Per Cent of Losses in
Values Are Recovered.
BEARS ARE NOT ROUTED
Still Insist Market Is DIE for a
Reaction.
N. Y. CENTRAL's BAD MOVE
Increase in Dividend Declared to
Have Been Ill-Advised-Wall
Street Gossip.
BY w. G. Nicholas.
(orresno,donco or Thu Star

By w. G. Nicholas.
Special Correspondence OF The Star
NEW YORK, March IL, 1910.
The low level Of prices was touched
Just about a month ago and during the
intervening period the market has been
steadily working up, until about half the
losses of the previous four months de-
cline have been recovered. Technically,
there should be moderate setback, but
this is by no means sure to occur. as the
swing Is now unquestionably upward
For several weeks these letters have
called special attention to Che large buy
ing for inside ACCOMPLISHING not then
for the purpose Of putting prices up, but
for accumulation. The big interests hav-
ing secured their lines, began to feel
about for company. By the usual wiles
and Vaccinations the public was gradual
ly let in, and now there is witnessed an
increased outside interest in the market.
Commission houses report very marked
Improvement in the volume and diversity
of business. Their old-time customers
are getting active again, and erywhere
may be seen signs Of the renewed hustle
and hustle incident to the early stages
of a bull campaign. The sap is beginning
spirit OF man Is surely reviving.
1t by no means follows that the bear
party or the bear sentiment has become
extinct. Neither is the market one-sided.
Far from 1t. There Is large and very
important element in Wall street firmly
welded to the theory that stock prices
are too high and that they will be lower
six months or year from now than the
current range. This is in large part
honest conviction. It is based on q be-
"a cit mill he
disturbed and depressed both by politi-
cal and labor agitations by international
complications and by the bad conse-
quences of over-speculation and prema-,
ture bursts of enterprise not warranted
by existing real conditions.
Recovering Too Fast.
The feeling is strong in this quarter
that the recovery from the panic OF 1907
has been entirely too fast, and that
halt of at least another year is inevitable
in order that the real improvement may
catch up with the speculative discount
as reflected in stock market advances
and over-enthusiastic trade adventure.
The bear party is sufficiently powerful
and sufficiently stubborn to make itself
felt on any and every weak spot that
may develop 1t is not likely to go into
retirement at any stage of the proceed
ings, and may become stronger and more
influential the higher the prices go.
The marking up Of the New York Gen.
tral dividend from per cent to 6 per
cent is the incident of the week which
has provoked the most lively discussion.
On the one hand it Is held that the in
crease is decided bullish factor and
will lie strong and permanent help to
the market. On the other hand is the
contention that it was a very Ill advised
move at this time, In view Of the fact
that the company has enormous expendi-
. lures Immediately ahead of 1t. and that
1t will be certain to be used by the labor
organizations as lever and weapon in
their fight for raise in wages This
feeling seems to be growing. especially
among the interests back of the other
important railroad systems of the coun-
try. 1t is all well enough. is the argu-
nent, to play for Wall street favor by
making dividends as high as POSSIBLE,
but it is all wrong to forget the re-
dictionary effect of playing too hard on
that key and Of trying to present
false appearance of overmuch prosper
i.y-a prosperity which does not go deep
enough. to be genuine in all respects.
Adds Fuel to Flames.
New York Central had no right to put
itself on per cent dividend basis at
this time, and that by SO doing it has
luIlllSifcu luCt " b lldIll0 JlldI IL MAKING
altogether too much heat for the COM
fort Of those who have the pay rolls to
meet and who at the same time are,
obliged to satisfy investors 1t is true
that New York Central Is doing tre-
mendous business and there is nothing
upon which to predict a reaction in its
operating department, but nevertheless it
Is continually straining to make good
and has before It heavy financing in or
der to carry out improvements already
ND <hnS $1.n
action OF the directors in increasing the
New York Central dividend leaves q bad
taste In the mouth which is liable to
get worse before better.
Union Pacific and allied stocks felt
strongly the impression that the govern
ment had failed to make good in its suits
to destroy the Hartman combine. This
feeling seems to be entertained quite as
tangibly In quarters friendly to the gov
eminent as in tho railroad circles. The
prediction is freely made that the litiga
ton will result in an utter fall down and
that no further attempt will be made to
separate Union Pacific and Southern Pa
cit1c control and management. It may be
bridled and unlimited buying Of railroad
shares by other railroads, but not to the
serious Inconvenience of arrangements
and combinations already entered into
That Is one Of the reasons for the ad-
vance In New York Central, whose pos
session OF West Shore and Nickel Plate
seems to be no longer in slightest
jeopardy. This, at least, is the pro-
nounced sentiment of those identified
with the big trunk line.
Wisdom of Pennsylvania.
Pennsylvania shares to some extent in
the same wave Of favorable sentiment. It
Is largely interested In an ownership way
in several competing lines. and would
its holdings. Pennsylvania has always
been strong for the right to have a voice
In the management Of lines doing BUSH
ness in its territory, although for some
years past it has not aimed at actual ma
jOrity control. 1t was one of the first Of
the great railroad corporations to appre-
ciate the disadvantage Of playing the hog
too much and thereby inflaming the pub
lie and giving demagogues something to
howl about.
Of he 1>ol,