The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-25

1t will be seen that at current quo
tations all these stocks on their pre-
sent dividend rates, show abnormally
Z high income leturns. Indeed, the
yield would be normally generous
even were rates lowered one or, in
certain cases. two per cent
Wall street always fears uncertain
ties more than ceftainties. Visions OF
what may happen are more disturbing
than anything that has actually hap
pened. Moreover, the stock market
prOverbially anticipates events several
months.
When 1.-The news is OUT and the
public's fears are aroused as to its ef-
feet Wall street operators are usually
ready to buy up the securities thrown
over by outsiders who could not see
so far ahead. Thus it comes about
that dad news very often acts upon
quotations as if it were good news.
And good news time and again fails
to put a stock up. much to the mysti-
fication of the public. The reason is
that students of conditions-and
sometimes also insiders-have acted
forehandedly, and are ready to sell
shares they had accumulated before
the development eliminated in a for
NAL announcement.
Unappreciable Influences.
While, therefore, the outlook is that
the interstate commerce commissions
change of heart has come too late to
save the slaughtering Of important
sarily follow that when the payments
are actually reduced there will be a
stampede to sell and Generalization in
| prices.
dividend reductions which had no ap-
probable influence upon the quota
tons of the shares involved.
| Suppose, for example, Baltimore
and Ohio were to pay four per cent
instead of six. The stock has been
|
! yield from a per cent rate would be
| So per cent-a very good return on
standard railroad issue having be-
hind 1t a sound property and able,
honest management
Pennsylvania shares Wednesday de-
clined to within . or 3 points of par.
Were the dividend lowered one per
would be five per cent, quite a good
| incor e on a security of the Pennsyl-
venia's standing and record.
| Southern Pacific could shave one
| per cent off its present rate and still
give the stockholders, at Thursdays
| quotation, full six per cent on his
! investment.
| Last lIonday morning I ventured to
utter word of Wall street caution
and the weeks events have justified
the opinion then expressed about the
probable action Of the market. The
decline has been marked.
| But just as the chances of a boom
were then derided, so would I fout
| any idea of a debacle.
| Well in Hand.
| 1 was asked some alarmist Ques-
tons after the close of yesterdays
market. Now, as far as my judgment
| goes. the situation is well in hand and
! there is little occasion for pessimism-
| Such liquidation and readjustment as
remain to be carried out should exert
no undue pressure upon the market
And did you notice that the London
stock exchange has decided not to
permit dealings in American stocks
| below our July 80 minimum quota
| tiohs~
| This is both wise and encouraging
at tbs stage of the process of rehabil-
! itaticn. Incidentally, I believe the
New York stock exchange is follow
| ing the right course when it refuses
| to at once remove all restrictions upon
prices. That can come after the turn
| Of the year. lis better to be safe
| than sorry.
| Don't forget that. despite ups and
| downs in day to day quotations. the
best American stocks are today on an
abnofmally low level and can be Sc
| lecte | to insure an unprecedentedly
| generous income on the capital in
vestment.
rs is time. however. when
small and inexpert investors should
4sss5