The Washington herald., 1910-03-10
WALL STREET NEWS
Aea ERIK Central Increases
IS Dividend Rate.
OTHER NEWS ENCOURAGING
Favorable Developments Come with
Largest Days Business Since Feb
ruary S-Prosperity in Industrial
Lines Also Observation-Disclosures
by Investors Aids Bond Market.

New York, March News Of market
Importance and developments of strict
ly financial character were more abundant
to-day than on any previous day of the
month, and generally these market fac
tors were much more favorable. Never
theless in the afternoon the market,
after a buoyant advance to the accom-
paniment of enthusiastic trading. sold OF
more sharply and became softer than on
any previous day since there set in the
long advance following the big break
early 81 January.
By a curious coincidence the turnover
was In excess Of 100000 shares for the
first time since February s, when stocks
sold at the low prices of the year, and
this coincidence was made all the more
striking for the reason that the days
favorable developments were as numer-
Gus as were the unfavorable developments
and opinions then,
Increases Dividend Rate.
By far the most conspicuous OF these
favorable developments was the increase
of the New York Centrars annual divi-
dend rate from TO per cent. which I'M
doubtedly had the greatest stimulating
effect upon the trading By spectators
the dividend was unexpected. for It had
been forecasted or predicted very little
IN the street rumors and reports for the
previous week.
But the published statements OF earn
ings for several months past have fully
disclosed the ability of the management
to increase the dividend rate without
deviating a particle from the staid con-
servatlsm policy long pursued. and the
increases of dividends by subsidiary COM
panies have so added to the company's in
come that its dividend could be increased
without taking a penny from TIE operat-
ing expenses.
The companys income from the extra
dividend declared by the Lake Shore and
Michigan Southern last week is Of itself
sufficient 10 meet the additional payment
caused by the Increase Of dividend by the
dominant company. The increase was
thus regarded all the more favorable
since it could not be subjected 20 the
criticism that the management was d.
verting earnings of the railroad from the
moneys required for the important i'm
provement work which is under way. As
an expression OF confidence in the future
by very able and conservative hnanciers
the action OF the New York Central di-
rectors was also considered noteworthy
IndustriaIS Also Advance.
And as their action indicated the pros
perity OF the railroad business. so the an
nual reports Of the American Tobacco
Company and the SIoss-Shef1eId Steel and
Iron Company indicated as abundant
prosperity In industrial lines The former
showed an increase Of $4,000 in net
earnings over 1903. and earnings equal to
501h per cent on the common stock as
compared with AZ pc. cent in the previous
year. while Sloss-Sheffield reported earn
ings equal to 6.5S per cent on the common
stock as compared with 495 per cent in
the previous year. Western Union earn
ings, as officially estimated for the cur
rent quarter, we're also considerably in
excess Of those for the corresponding
quarters last year
That these and other and minor demon
STATIONS of the earning proven Of the
big corporations were appreciated by in
vestors was shown not only by the heavy
purchases OF stocks. but by a decided ad-
vance in the recent Improvement in the
bond market. An Offering Of sf1. OOG .O00
jamestown. Franklin and CIearheId bonds.
which are guaranteed by the Lake Shore.
was absorbed two hours after the sale
was opened.