The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-10
GOSSIP or WALL STREET.

GOSSIP or WALL STREET.
While conditions nov are very much tllf-
ferent from whht they were In the fall of
1909. when the Gates crowd tried to run pr Ices
into the skies. II s OF interest to reonll some
facts regarding money market copdition
then. The surplus reserves of the banks at
the end Of August were %. 100000 There
was the usual talk then. rs there has been
this year. about the ability OF Western bank
ing institutions to provide crop moving funds
without calling much on the East. The
next week the bank statement. corresponding
to that Issued Yesterday, showed the surplus
$4,000, 0U. The rates for call money were
nigh, ranging from to 20 per cent. There
was heavy professional bull speculation
going on. with st. Paul selling around 100.
On Sept Is the surplus had been reduced to
$4,000. The surplus was wiped out a week
later. when the statement showed deficit
OF $3.50. 900. On the Saturday that this
statement was issued st. Paul was advanced
to 1851. Its record price,. The, condition
OF the bank reserves did not give the Western
crowd much alarm until week later; when
ON Monday. following bank statement show
Ing the surplus reserves back TO $500, 900.
call money was advanced to rs per cent.
st. Paul sold down to 1884. 1t was not until
December. however. that the forced liQuida-
tton by the Western crowd had It's full effect
ON the market. In the middle Of the month
a bankers $50. 900. 900 pool was formed to
protect the money market. and st. Paul sold
as low as ice. There was some recovery
from the low prices in the weeks following.
but early in 1908 the liquidation was resumed.
and we had bear market for months. -.
The movement to cover shorts after tho
appearance OF the bank statement was all
over in few minutes. and It ives unaocom-
panied by any buying Of stocks In volume
for the other account The natural de-
duction was that both those who are COM
mitted to the short side OF the market and
those who are awaiting the opportunity to
buy stocks for the rise are looking for lower
range of prices before the upward move
ment il resumed.
During July and August We had market
that huctuated within narrow limits. with
a constant upward tendency. 1t was not a
market in which the In and out trader could
make much money. for whenever he sold his
stocks ne had little opportunity Of taking
them back at a profit. But in the past few
days we have had a very Irregular market.
which has given large opportunities to the
trader to make turns. On the basis Of the
average price of twenty railway stocks, the
mark ct In thu two days at the end of August and
the first day Of this month declined s.7s points.
In the next two days 1t advanced l.sl. In
next day showed . gain OF i.25. while on the
following day. yesterday. It declined again
i2e. The highly irregular tendency OF prices
the past few days 10 indication OF the varying
opinion as to the course Of the market held by
the speculative community. as well as the
prepondersnoe Of purely professional opera
tons. market Of this character Is not
one that attracts the outside public. The
average Of prices now Is about what 1t was
before the appearance Of the August crop
report.
MIR. Hill is taking great pride just now in
the Burlington earnings.
Every little while the report is circulated
that Southern Pacific is going to have move.
The stock Is always taken UP in the market
after the circulation OF one OF these tips.
and for q few hours II becomes unusually
active. 1t advances perhaps. two or three
points. and then the move fattens out Lon
don almost invariably takes part in these
Southern Pacific moves" and the informa-
ton the Wall Street community has about
them often comes from London. During
the last few days the tip went around that
the stock was to move mp 10 points right away
on the monthly report Of earnings. The
origin Of these tips on Southern Pacific Is
somewhat. q mystery. They certainly do
not come from the interests most prominently
for months spoken In the most conservative
way Of tho prospects for dividends on the
common stock. 1t has been the understanding
for a year that the stock would begin re-
ceiving dividends in 1905. and It is not believed
that there has been any idea OF setting the
date of tho initial dividend forward into this
year The initial dividend. II It Is declared
this winter, will be at the rate either Of Or
. per cent. The stock has been selling IN
the market for long while at about Its cost
to the Union Pacific. The speculative crowd
which has been largely Identified with the big
swings In; Union Pacific In the market has
paid very little attention to Southern Pacific.
Lambs have not been 80 scarce In tho New
York market for several years. Tho receipts
are 200. 900 behind last year. and prices are
correepondinsly high: r,, 49,.
The action Of Louisville and Nashville stock
in. the market leads to the belief that certain
interests Identified. with the control OF tho
property are endeavoFfng to discourage
speculation in the stock while they are.
picking It up. Various. efforts on the part
Of outside interests to make the stock active
in the market have failed. The company
islesrning more than II per cent. and Is In
a position either to increase its dividend rate
from Q to per cent. or to declare q stock
dividend OF 10 or Is per cent. II is believed
by those who are fairly well acquainted with
the plans of the leading interests In the COM
pary that within the next few months some
action will be taken as. to dividends which
will make the stock worth much more than
its present price. - .,,..
TO PROSECUTE TIMBER THIEVES