The Washington herald., 1912-03-20
WALL STREET NEWS
Usual Tuesday. Reaction Causes
Stocks to Swing Downward.
Coal Strike Scare Subsidies.
BY THOMAS c. sHoTwELL.

New York, March l9.-The reaction that
always comes on Tuesdays when stocks
are on a swing upward came in waIl
street to-day. The result was slight
setback in these shares that have been
most active recently. New orders were
pushed to the front in the shape of
Southern Pacific and AmaIgamated Cop
per. The three things having most in
huence on the constructive side are IA
miliar. The first was further evidence
that there would be no coal strike in
America; the next was an admission by
Judge Lovett, president Of the Hartman
lines, that the Panama Canal will help
the railroads more than II will hurt
them, and the third was official con-
firmation of the announcement of ST.
Paul plans for big expenditures this
year.
While Erie maintained its mysterious
character more light was thrown on the
recent activity in the stock. 1t seems
that the board of directors either has
passed or promised to pass a resolution
setting aside all surplus earnings for
the next three years to be used for dou-
BILE tracking and other improvements.
The road has already obtained $4,000, 900
for that purpose, and IL this new policy
is to be adopted II Will mean total eN-
penditures of more than $4,000 900 in the
next three years. The necessary result
will be dividends on the common stock
in four years. II can also be said on
the highest authority that the reason
for the rise in the stock is not much
the buying as the refusal of the big peo-
pie to sell. A pool, perhaps the largest
ever formed in Erie, has taken the stock
10 hold for the dividend. The stock
costs the pool nearly the present market
price and prices recently recorded fur
nish no temptation to sell.
Cheerful statements by President Lovett
and Vice President Kruttschnitt. of the
Hartman lines, helped Southern Pacific.
The break in Illinois Central stock has
not worried them. Business on the lines
in the West is good. Even in California,
where the absence of rain was becoming
a serious matter, there has been relief
in recent storms. Snowfall IN the noun
tains is far short OF the normal, but
il is stated that there will be enough
for the irrigation.
President Tafts determination to look
into the coal miners trouble has, no
doubt. inspired President Baer, of the
Reading, to announce that he will recon-
slider the matter. Thus the coal strike
is becoming less and less menace.
Strikes Help Virginia Road.
While the strike lasts in Europe it is
helping Americans. There were to-day
thirty-five ships at Newport News wait
ing for coal for Europe. The demand
for coal is so great that the Il. II. Rog-
ers road, the Virginian, has borrowed
81. 100000 in London to spend for equip
ment. OF course, the equipment cannot
be secured in time to do any good in
this particular rush, but the coal strike
l,,- ~Hn Of hn
bankers 10 the possibility Of the Rogers
road. Steel Corporation has also, it is
reported. secured some very important
contracts for steel in South America,
because the British and German mills
that would naturally have secured the
business were unable to make definite
bids owing to the strike.
Northern Pacific and Rock Island
were suspiciously active and looked as
though being prepared for upward
moves. Both systems suffered last year
from the dry weather. the one in the
spring wheat belt, the other in corn.
This year conditions are ideal in both
territories. and it will be strange IL the
ultra-conservative interests back Of
them do not make some demonstration
OF joy in the stock market. American
Can has given a signal to the faithful
for what is coming. American Sugar
also is looked upon as possible cele-
brant because of the remarkable earn
ings OF the last year.
Beet Sugar people are beginning to
talk again OF an extra dividend of 5
per cent on the common stock. Strength
OF the New York Central issues was due
to circulation Of advance copies of the
report for the last year that is published
to-day. The company earned above
per cent on the stock and has large equi-
ties in subsidiaries