Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-31

early in the spring, must be upon
stiIl higher ircome basis.
The Treasury has intimated-and such
intimation Is tantamount 70 n command
that 1t Is desirable that all large ap-
plications for capital be first Submitted
for the approval of the Treasury before
being publicly offered. Meanwhile Il
becomes obvious that the only way in
whicn securities can adjust to the new
rental rates FOR money Gas determined
from time to time by the rates paid by
the Governmen) is to reduce the prices
for the securities until the return on the
investment rises to correspond to the
new rates.
In the case of bonds and notes, etc,
where the interest payment Is a fixed
quantity, the only method of readjust-
ment Is the one noted. namely, q reduc-
tion IN price In the instance of shares
OF course the natural way to adjust se-
curities to the higher returns demanded
by investors would be to increase tn.
dividend distributions. But all will con-
cede that In current circumstances for
many stocks the current outlook sue.
gests a reduction in dividends
BIG BOOST VoR RAILROADS
The railroad situation was one of dis
pibtl ultil .laSt week, when President
Wilson took over the control OF the rail-
way systems of the nation and gave as
surance of net incomes equal to the
average OF the last three years. And IT
was natural. with the increasing ex-
penditures for operations. the delay in
action by the Government authorities
on the demands for increased freigh,
rates and the always present prospects
of Federal control without any indica.
ton as TO what shareholders could ex-
pect when such step was taken. that
values of such securities should he i'm
paired. Stockholders were worried as
to what the Government would name as
Just valuation of their holdings and
were uncertain as to whether they could
expect smaller dividends or no divi-
dends when the transportation lines
came directly under the supervision of
Washington.
When the President named Secretary
McAdoo as sole dictator Of all the rail-
roads and at the same time gave assur-
ance OF large net incomes the fear was
eliminated. and Immediately many inn
portant interests began to buy. Some
, of them had unloaded in large uuanti-
ties when the extreme low prices were
reached. being fearful that still greater
losses would be recorded before aid
came while others saw in the Presi-
dents proclamation increased prices a
continuance of dividends and prospects
of resumption of payments by several
of the railroads which had become non.
dividend ISSUES
OTHER STOCKS SOAR ALSO
The speculative element was quick to
see the opportunity for big profits and
flooded the exchange with buying orders.
Il and the tin1p hears hurried n
cover, with the market last Thursday
twhen the announcement was made--one
tpf the widest in the history of the big
Snarket. Gains ranging from to IS
apoints were run up soon after the open
wing and, while there were some recess
nsucns later as offerings appeared on the
lie ise. the memorable day ended with
ecord-breaking advances for virtually
u the railroad shares.
THE strength in the rails naturally
p Nped nearly all other stocks and the
ed tire market became stronger than It
he d been for many months. There were
'se rther advances last Friday and, while
OF IRE was a wavering tendency Satur-
vn I. prices stffened before the close
ch I confidence was expressed that fur
n improvement would come during
es first part of the new year
Ten ne of the DEVELOPMENTS at the close
Irt- DE year was the impression contained
er- interviews with representative men
te- vhave recently returned from abroad
III II the war is to prove a protracted
seq o. T,mn'as W. Lamont of :. y
I've Man & Co., for example, in an in.
IN teew speaks of the necessity Of pre-.
IL psg for campaign extending wei
al iip192O, and other authorities. who
es- base of their positions may be re.
an gad as possessing first-hand informa.
as tic are likewise confident that tn,
tad peace enanating from Berlin ha!
nosponsible foundation,
,,,r ear ago the technical market in
de- mus of peace was altogether differ
der entm what il is accepted to be a
my these of 1917. At that time peace
mn. meahe sudden termination Of the ex
,.r- ceepy profitable orders for war mate
oo,, ria thich our Manufacturers were re
,ha. ceiY from abroad. Therefore, It wa
ests ward not peace which at that Tim,
: n was ''bulr' argurent
n In Wwas not decl by Presiden
ests Wilsintil April G, and the decline II
the the hal market price levels was. will
and yer,y reactions constant thereafter
OF At tthere was a disposition To argu
TINS that entrance as war participant
tnat mearStill further pressure Of actiVi
abu. ties some of our Government Officials
be not t,ntion banking interests. In pub
not lie inews tried to explain that thl
were incre! activity meant corresponding
tons expaA of prosperity. 1t soon de
fer velopt owever. and became plain l.
'hich sae nsuperfcial minds That II was
differtuestion when Il was our owl
Sc wealth man power and property tina
pres was sa wasted--quite n differen
,sary matteeu when the waste materia
tally in thet had been such as had bee
scess purchs from American marufictur
rofits ers, frs and miners at wonder
king fully liable prices
theirs But worth while noting that al