Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-07
buy CHEAP STOCKS
Real Investors Are Making
Their Influence Felt.
WINTER TO BE QUIET ONE
Many of the Markets Leaders Have
Gone for Vacations.
STREET TALKING POLITICS
By w. q. NICHOLAS.

NEW YORK, January 6.-The stock
market has settled down very quickly after
a bright and sunshiny start following the
birth Of the new year. Considerable money
Is going into new Investments. but on a very
quiet scale and with no pretense or de-
sire to mark UP prices Real buyers of
real securities. who take hold for income
returns, try to get the gooos as cheaply
as possible. It is the spectators who
make q hoot and hurrah every time there
is any good buying going on; that. in or
der that they may make a market upon
which to unload.
The situation this week has undergone
no particular change excepting that there
is q manifest toning down in publicity
efforts to talk up values. There is also
acknowledgment that Industrial condi-
tons are not quite UP to expectations
and predictions so freely INDUCED in dur
ing the last month of the old year. The
CONSPICUOUS feature of the moment is a
tendency to let prices down by withdraw
ing artificial support from the specialties
and desisting from open man pulation.
Several of the most important figures in
the financial and industrial world have
gone on their winter vacations or are pre-
pairing to do 50. Mr.. Morgan led the pro-
cession by a somewhat hasty and en-
tirely unannounced sailing for the old
world, and others are going on every
steamer or taking trains for Florida and
California. Indications point to a quiet
winter in the stock market.
Business on His Vacation.
A desire to avoid spotlight performance
under the stage management of congress
siOnal investigating committees may have
been one of the reasons for Mr.. Morgan s
secrecy, but that is not the real cause of
his trip. Neither is he going abroad al
together for pleasure. He usually COM
bines business with his foreign amuse-
ments. This time 1t is held by Wall street
bankers that his chief object on this trip
Is to put through some heavy financing
for the New York Central and New Ha-
ven systems. He is personally heavily
interested in both Of these railroad COM
panies. and 1t is understood will enlist the
active cooperation of London. Paris and
Berlin bankers In a plan to provide new
capital required.
No definite statement has been made as
to the amounts which will be needed, but
ments for the year at between $2o0.OOOOOO
and $500. 900 900. Both of these vast trans
portation enterprises are being carried on
with intentionally thin margins for OPP
erations. They are confronted with the
absolute necessity Of borrowing more
money to spend on property and facilities.
New York Central has schemed to ra Sc
its new capital under cover of grand
consolidation Of Vanderbilt properties
New Haven is sloShng around in an aim
less sort of a way, and so far as the
public can .see is getting nowhere except
ing more deeply in debt.
Railroads Are Punched.
Railroads as a rule are having a hard
and pinching time of it to make both
ends meet Many of them are obliged to
cut heavily into maintenance expenses in
order to keep up dividends. This policy
can be pursued by majority of the going
roads for a year or even longer without
serious impairment to property, but pur-
sued for a longer period it means rum
down rolling stock car
PASSENGERS. New York Central is making
q very deep cut into maintenance The
average OF eastern trunk lines spend %
per cent to 81 per cent of gross earnings
in Keeping I'D their plant. New York Gen.
trail has reduced expenditures for that
account down to % per cent, as shown by
the reports fled with the interstate COM
merce commission for the first five months
Of the current fiscal year.
New Haven has cut Its outlay for main
tenance down to c3 per cent. Pennsylva-
MIA baltimore and Ohio and Erie are the
three roads which are conspicuous for
having put back into property the full
In cost Of operation, but not at the ex-
nense Of property. West of the Missis-
ssnni ali the roads excepting Missouri Pa
cific and burlington are making heavy in
roads on the amounts which would ordi,
en,,inment. The Hill group have made an
awful slash, Northern Pacific only spend
ing at the rate Of % per cent and Great
Northern 2 per cent. Union Pacific is
hettet showing is 2Sk per cent. This cx-
hihit is not particularly .reassuring for
the investor. It represents a borrowing
rom capital to make up dividends: As