Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-05-14

into the future, and farmers who may be
fearful that with the arrival Of bumper
crops will come a big break In prices
can take out insurance by selling for for
ward delivery. The option markets give
them thS opportunity, and doubtless
many of them are awaiting themselves OF
the chance.
few small railroads are cutting divi-
dends The Vandalia, a Pennsylvania
subsidiary, and Boston and Maine this
week reduced payments from 0 per cent
basis to per cent. A few weeks ago
the HawIey group of roads in the middle
northwest reduced dividends. st. Paul is
paying per cent and earning about 4.
It's management, however, believes 1t will
be able to maintain the Z per cent rate.
although not explaining how the dehcit is
to be met Baltimore and Ohio was also
under suspicion of paying more than II
could afford to. For years New York
Central has been barely able. to meet
dividend requirements out of current
earnings.
The Pennsylvania margin Of safety Is
smaller now. than 1t has been in years.
Railroads are very generally economic
ing and pairing expenses down 10 tne
bone. This may help stockholders, but
will be hard on the steel and equipment
companies, which are in desperate need
of orders from the railroads. They would
prefer to see big dividends cut In oroer
to benefit by receipt OF new business. II
is not in the cards, however, that every
body should be satisfied.
New Ravens Heavy Load.
New Haven is one Of the railroads that
is loaded up with a mountain OF obliga-
lions incurred in the purchase Of opposi-
ton railroads in New England, OF troll
ley car system in Massachusetts,, Rhode
Island and Connecticut. and in. an ex-
tensive campaign Of physical reconstruc-
AZ 80 To- tho This great work
has been done under the direct manage
ment Of President Mellen and his man
Friday. Tim Byrne. Both OF these men
are graduates of Jim Hills school for
have been in control of the big New Eng
land railroad system for about six years,
and in that time have added hundreds OF
millions Of dollars to its Indebtedness.
They have managed in some miraculous
manner to maintain the per cent divi-
dend. The price Of the stock has run
down from nearly 200 to IA.
The ill-tempered opposition OF high
officials to the Brooklyn
Rapid Transit plan for the construction
York does not harmonic with the theory
that PENNSYLVANIA interests control the
Brooklyn company, which many supposed
to be the case. The objection OF the
Pennsylvania railroad people to the
Brooklyn Rapid Transit plan Is that 1t
contributes nothing to the railroad COM
pany's business. and that 1t fayors New
York Central in that respect. The kick
had the appearance Of being genuine
protest However, It will always be in
the power Of the Pennsylvania interests
to actually buy control OF the Brooklyn
company and amend its plans to suit,
providing the contract goes to the Brook
Ign combination as now seems probable
The projected subways will cost In the
neighborhood of $4,000, COO
Banking Monopoly Completed.
Eleven trust companies of New York
have been taken into the clearing house,
thus making the banking monopoly COM
plete. Several of these trust companies
withdrew from the clearing house four
or five years ago under con,pulsion. the
point being made that they were not
carrying sufficient reserves. Under state
laws they have been obliged to increase
the percentage OF reserves and thus be-
came eligible to renewed membership In
the clearing house. into whose fellowship
they were invited to return.
w. E. Conner. Jay Gould's former brok-
er and partner, Is reported to have Joined
forces with Frank A. Munsey, the multi
millionaire newspaper and magazine pub
Usher, for q speculative campaign in the
stock market II the story is true they
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