The Washington herald., 1911-05-11
WALL STREET NEWS
DAVIS Close Shows Decrease
in Volume.
RAILWAY DIVIDENDS LOWER
Boston and Maine and Vandalia
Lines Show Reduced Earnings.
Erie Made Stronger ShowinE-Tex-
tile Depression Alleged Cause Of
New England Roads Falling on.

New York, May 10.-Only desultory con-
ditions again prevailed to-day in the
stock market, the volume Of business
was appreciably less than on the day pre-
ceding. The undertone of the market,
too, was weaker, the Erie issues pre-
senting substantially the only exception
among the active stocks For some time
past the Erie stocks have shown particu-
lar steadiness, and this may be because
the Erie is beginning to display the
effects at last Of the large amount of
money that has been put back into the
property out Of the earnings in recent
years. Erie is now making a strong COM
parative showing with other railroad con-
Germs. In addition to this there are re-
current rumors that the Erie stocks are
being accumulated in the interests of
another railway organization. and specu-
lative gossip has fixed upon the Canadian
Pacific as the company that is doing the
buying.
Two reductions in railway dividends
were announced to-day-those Of the Bos-
ton and Maine and Vandalia companies.
The action Of the Boston and Maine di-
rectors was. in fact, taken yesterday but
did not become known in Wall street
Boston and Maine stock is only dealt in
on the Boston market, where the stock
fell at the outset to-day over nine points.
In this market the stock Of the New
York, New Haven and Hartford Rail-
road Company, which owns a controlling
interest in the Boston and Maine, and
pays per cent upon the stock. issued
in order to acquire this control, fell over
three points.
t..
by the Pennsylvania company, being one
of the Pennsylvania's small subsidiary
companies.
Textile Dullness Blamed.
AS regards the Boston and Maine, a
curtailment of its dividend has long been
considered inevitable by students Of the
railway situation. The depression In the
textile trade, whose home is in New Eng
land. had long been a matter of common
knowledge. The Boston and Maine has
found 1t impossible to keep up dividends
at the old rate, while earnings from this
important quarter We're so curtailed and
while operating expenses. owing mostly
to increases Of pay granted to employees.
have enlarged.
There was further news OF strikes
among railway employees, and the state
ment of untitled orders of the Steel Cor
poration at the end of last month and
the weeks review of iron and steel trade
conditions by the trade journals were
rather discouraging. The tendency OF
prices seems to be distinctly lower, but
with buyers SO Indifferent as to make
it seem unlikely that they could be at
tracted by any concessions at the mo-
ment. except those of extraordinary ma
ture. The Steel Corporation report of
untitled orders on April 80 showed a de-
crease of 22S,ooo tons being repogtssst,o ogtsto
tons had been anticipated.
Iron and Steel Dull.
No doubt at the moment the prospects
NJ the iron and steel business are more
dubious than at any time since last fan.
While the Mexican situation seemingly
was only a small factor in the movement
of stock exchange prices. conditions
there are obviously becoming worse, and
from all superficial appearances the al
fair will grow worse daily until President
Diaz resigns There is no idea that the
situation is one that may be called dan
gerous from a stock market point o.
view. vet it is undeniable that the whole
affair is, as it stands, a source OF po-
tential trouble and annoyance 10 Senerdi
financial interests
To-day's deyelopments were such as to
make 1t altogether probable that the
greater number of trust companies In
the city will accept the requirements I'M
posed and apply for membership IN the
clearing house association. A certain
number of conservative trust companies,
whose business is strictly that OF an old
fashioned trust organization, will doubt
less not enter the clearing house nor Is
there any particular reason why thep