The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-08-28
STOCKS ARE STRONG EARLY,
BUT TURN WEAK LATER ON.
REACTION IS DUE TO REALLY
ING UNDER COVER.
Reduction of Reading Dividend
Has Pronounced Effect on
the Entire Market.

New York, Aug. H.-To-day's early strong
market was a repetition of Yesterdays
but on a smaller scale. The resemblance
extended to the reactionary tendency caused
by the heavy realizing in progress under
cover Of the sustaining strength of a few
stocks, but 1t was not until the announce
ment of the reduction OF the dividend on
Reading first preferred mat the weakness
OF the whole market became acute anu
prices broke all around to well below last
nignt- There has been an impression Tor
many weeks that the Reading dividend
would be reduced in orQer 10 extend the
voting trust. which under the terms OF the
trust would be dissolved by the payment
of one years full dividend on the nrst pre-
terred STOCK. I'm announcement last week
that the Southern hallway Young trust had
been requested by stockholders TO defer the
! dissolution OF the trust by the postpone
, ment or the dividend on the preferred stock
was a strong corroboration OF the eXpecta-
ton of similar action in the case OF Read
ing.
Reading Stocks Pushed Strongly.
1t is improbable. therefore, that the mere
fact OF the reduction OF the dividend would
have shocked the stock market had it not
been for the determined way in which the
Reading stocks were advanced this morning
on the purchase of enormous blocks OF
stock. The sudden tumble in those socks
caused by the announcement of the dividend
reduction gave rise to a chilling apprehen-
sion that the bold spectators VINO are Lead
ing the operations Tor advancing prices are
acting without the best in all
NoSC5 oA4N may 10 80 - NA HAANN-
simply by the force OF abundant funds and
without substantial grounds for the higher
range of values. the dimensions of the
selling to take profits which was going on
yesterday and to-day was an additional
factor in a%rousing uneaSineSS as to the solid
ity of the demand wnicn has made the
higher range of prices. The favorites of
yesterday and day before pretty generally
suffered from realizing. Even the headings,
illinois Central ana Colorado Fuel were ad-
Vanclng most buoyantly.
Additional neavy transfers of currency TO
the West were a contributing factor to I'M
settling confidence. The deposits OF curren-
cy at the SubtreaSury To-Day for transfer
amounted to $40, eco, of which S500,0O0 was
for Chicago. SlDO, 900 for Cincinnati and S40,-
60 for New Orleans. Without counting this
movement, the SubtreaSury mas taken from
the banks up to yesterday S,652,eJ1, which
just figured in Saturday 5 bank statement,
and the .Subtrsasury to-day had a small
credit balance at the clearinghouse.
Revenue Deficit Grows Smaller.
The Treasury statement from Washington
to-day showed q surplus in revenue for the
day of Sl.2S9, AZ, thus bringing the deficit
since the beginning of the nscal year to be-
low &,0eo,0a- Doubts are felt in Wall street
as to the extent OF the measures for relief
OF the money market which the Secretary
of the Treasury Will be willing to take. An
other disturbing influence was the report of
a decrease in net income of the Atchison for
July of $3i5,511 which was the more erect
i've on account of yesterdays heavy specu-
lation in the stock. The unfayorable char
aCter of the Weather Bureaus weekly crop
bulletin. especially in regard to cotton. was
a disturbing influence. All unfavorabie in
fiuences were disregarded in the early at
tempts to put up Reading stocks on the
ground that the end of the coal strike was
near. The movement in Illinois Central was
unexplained. that in Colorado Fuel seemed
TO be due to intimations that the parties
TO the dispute for control We're in a concili-
atory attitude, which was followed after the
close by the giving out of a statement show
ing a renewed phase of the contest. United
states Express, General Electric and Sloss-
Sheff1eld Steel made conspicuous advances.
The market closed irregular and slightly
above the lowest.
Speculative bond issues yielded In sympa-
thy with stocks. Total sales. par value.