The Birmingham age-herald., 1910-12-25
FAIRLY ACTIVE
 CHRISTMAS WEEK Prices in Wall Street Show No
 Material Change DIVIDENDS ARE LARGE More than s225,00O, ,oo0 Will Be Paid Out January 1. An Incrense of
 About s25.0oo,o00 Over
 Former Periods
DIVIDENDS ARE LARGE
BY ". G. NICHOLAS

mas week In the stock market. Prices have not changed materially, but the sit- uatlon has been encouraging rather than otherwise Investors with real money to invest in real stocks and real bonds taken out the floating supply a good many securities of one kind and another to fatten their strong boxes.
 compilation by one of the best Wal, street statistical authorities shows that on or about the first of January there will be paid out in dividends and inter- est S226, 0o0 an increase of about s25,- 000,00o over the amount disbursed at the corresponding period a year ago. This increase is accounted for in part by the addition of a number of companies to the list used last year but aside from that there has been a very considerable en- largement in the dividends on the basis of the old list The interstate commerce commission makes a contribution along the same line and the annual report of that body for the fiscal year ending June last shows an operating income of sSS7, coo 900, which is ss7. .000, ,OO0 more than for the year ending 1909.
 The commission Is at pains, however, to supplement this annual report with fig ures for the first quarter of the current fiscal year showing a net loss of $12,0oo,0O in operating income. as compared with the corresponding quarter of the preceding year This Is very kind of the commis- sion and shows tender regard for the feelings of the railroad. Representatives of the railroad interests find considerable comfort in this gratitous statement and profess to think that it has some bear ing on the decision which Is to be rem dered by the commission about the first of next February on the question of whether or not to allow an advance of $50, ,000 900 to $75,0O0000 in freight rates.
 The commissions figures for the firss qurter of the year show a decided turn in the income accounts of the transpor- tation companies and its willingness 10 have that fact advertised might possibly be construed as indicative of a purpose to help the railroads out by giving them chance to soak the public for the amount of the big deficiency. It is only natural for the railroad people to ex- perience pleasureable emotions over the publication.
 Commenting on the railroad situation as 1t is now found, the president of one of the big middle class systems is quoted as saying: Should the commission turn down the railroads, and I am inclined to think 1t will. in part at least the car rers will be obliged to start In upon policy of drastic economy. There will have to be a heavy cut in operating ex- penses and every part of the great rail- road establishment of the country will have to bear Its share.
 hax fO ha aifhar in the wage scale or in the number Of men employed. The latter would result In an impairment of the quality of service given and would be likely to be followed by nationwide chorus of complaint There will also have to be still further cur talment of plans for new equipment and for the replacement of old rails and other materials that go to make up the plant. Should any such situation continue over any considerable period of time, there will arise demand from the public which cannot be ignored that stockholders must bear their part of the burden
 There will be ground for such demand. as there will be really an injustice in starving the railroads in order to continue the payment of larger dividends than are Justified. Many of the railroads will be able to keep on paying dividends at the present rate. but they are exceptionally situated
 Supplemental to the foregoing frank statement Of the situation by one who is broad gauged and fair minded enough to look the facts squarely in the face it may be said that a sentiment is grow ing among the men who are responsible for the financial management of the great railroad systems of the country, that there will have to be a scaling down in dividends during the next year If times do not improve and If the government does not come to the rescue of the railroads. Indeed, it is an open question with them whether the stock market situation would not be improved if such a policy were adopted.
 The idea gains ground that it would be the safe and sane thing to do and that such course would meet with the ap-j proval of the stockholders themselves. This great body of men and women real ize that it is the opposite of conservatism to drain their properties by the payment of unearned dividends at the expense of plant. Many railroads are today, paying out money to stockholders they should put back into the property and the quota tions in the stock market represent the real condition.
 When the stocks of great railroads are
 
 under what they should sell if presens dividends were justified, the meaning is obvious. The prices of today reflect the general belief that the dividends will have to be cut, and the sooner this is done the better 1t will be for everybody. Tak- ing existing stock exchange prices as a guide, Baltimore and Ohio. St. Paul, Atchson. Great Northern, Northern Pa cific, and several other roads are in line for the pruning knife. Union Pacific has not as yet shown sufficient recession in prices to be catalogued with the others, but inasmuch as the bulk of its earn inzs come from dividends In other roads which it holds in it's treasury, that com pany also cannot be expected to escape general siashlng.
 The industrias show less hesitancy about cutting their garments according to the cloth. As rule they do not strug- gle and strain as much as the rail- roads do to keep on paying dividends after the income account runs down be- low the safety line. With them the rule Is to scale down dividends unless earnings keep up.
 The big Steel trust is an expection to this rule and although 1t is now notori- ous that it is barely earning dividends on the common stock, it is In a position to defend continued payment because of it's stupendous reserves. It could pay out of that fund for year or more with out impairing its standing, or crippling itself in the least degree.
 Tn the light of current conditions those canned interviews handed out by Judge Gary and others about the brilliant pros- poets for the iron and steel trade ap- rear ridiculous. The great captains of seemed to feel that they were obliged to misrepresent the facts until