The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-15
FINANCIAL NEWS
AND COMMENT
Baltimore and Ohio Dividend
Action Has Optimistic
implications.
RATE CUT ONLY 1 PER CENT.

For the second time within n few
weeks Wall Street and the business COM
munty generally have been impresively
Informed that the outlook for values was
regarded optimistically by competent
financial judges. The first choice OF this
kind was given when the finance COM
mlttee of the United States Steel Corpora
ton voted recently to maintain wage
scales in expectation OF trade and indus
trial Improvement Yesterday the direc-
tors Of the Baltimore and ohio Railroad
announced q reduction in the dividend
rate from 6 to s per cent. a year on the
common shares, but their action consti-
tuted an encouraging expression OF finan-
cial opinion.
1T had been expected more or less COM
monty that the rate OF distribution on
Baltimore and Ohio shares would be cut
to per cent. The fall in the price OF
stock suggested this, and II had been I'M
derstood that earnings Ia the past six
months were not much more than enough
to pay a sem-annus dividend of per
cent.
As a matter OF fact the statement made
by President Willard shows that earn
ings were less than g., per cent on the
Willard cvinc,s the hopeful tenor OF cor
purate judgment. Reliance is placed by
the Baltimore and ohio directors on the
effect Of the freight charge increases
granted by the Interstate Commerce Com
mission to recruit earnings I'm the balance
of the fiscal year. but IL is apparent that
the board must have taken other facts
into consideration. II must have counted
upon the probability OF a recovery OF
traffic volumes, which could only result
from general business betterment
SO far as Wall Street Is concerned the
disposition last night was to construe the
Baltimore and Ohio dividend action as of
bullish significance. The decline which
has been going on In the shares had pretty
thoroughly discounted reduction in the
dividend to the rate Of per cent.
After some moderate forenoon activity.
with little display " Irregular strength
the stock market Of the day halted
Throughout the session there were some
firm TO strong Industrial features and
standard rails displayed steadiness. but
the market seemed. as In previous sessions
Of the week. to be awaiting the Baltimore
and Ohio dividend announcement because
OF the Importance which would attach to IL
as token Of. sentiment in leading quar-
tiers. The news was received a little be-
/ fore the close and was followed by some
nervous trading with eccentric nuctua-
tons In quoted values. Baltimore and Ohio
ended with a substantial net gain, with
other issues settling back. On the day as
a whole there were more advances than
declines
Whether there has been anything in the
idea that the Baltimore and Ohio dividend
meeting would make a new point of de-
| parture for the stuck market remains 10
! be seen. Nevertheless the share list has
given an account OF itself ia the last few
/ dlNg which has haAn al 10 tod tn. IND,
the adoption Of constructive attitudes
| toward commitments in securities. Yes
I terday's session continued the tendency
toward diminishing activity, but without
| any weakening of prices. on the contrary
the list displayed a firm UNDERGONE. As a
| result there has been an inclination t.
entertain bullsh views on the theory that
the scarcity OF domestic offerings of Sc
curities makes for rising strength which
| is not likely to he checked by any such
scanty trIckling OF liquidation as has been
coming from abroad.
There was little that was novel in other
matters which engaged Wall Street atten-
ton Foreign news relating to the war
and TO European politics did not point &c
any obvious change In the foreign factor
| The Italian earthquake could hardly add
to tho horrors of the European tragedy
but II might have the effect OF divertins
ltaly's mind temporarily from the wal
problem.
Foreign trade figures bulked largely II
Wall Street arguments on values All IN,
statistics Of cotton and grain show tha
more than a normal external commerce /,
under way and wheat sold at new higl
levels on an excited rise Foreign ex
change remained rather stationary and /
Is to be supposed that declining tendencie,
must be momentarily arrested by the ar
rangement of loans or credits for foreign
nations.