Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-09
BULLS AND BEARS

tUULLO MU OLHnl
Special Dispatch to The star.
NEW YORK, August 9.-An indication Of
feature OF the market that has been FREE
Quently commented ON Of late--the scarcity
OF good stocks for speculative purposes
Is Afforded by the growing interest in ~
curities whose principal or sole market II
in other cities. Recently a large stock
exchange house thought it worth while to
send Its extensive wire system the follow
ing message from Pittsburg house:
I'VE think crucibie steel preferred pur-
chase for a long pull The revival OF
business in the iron and steel trade has
yet room for greater Improvement. Old
mills that for several years have been idle
are being started and large orders for
high-grade steel are being received. Scare
tty OF labor is noted in all mills in the
Pittsburg district. Crucible Steel preferred
has $14 back dividends and we look for
a resumption OF dividends by the end of
the year. or In the first quarter OF 1905.
1.-THE bonds voted by the directors year
ago have never been issued, and as largely
increased earnings since that time have
enabled the company to lquidate out
Of these bonds will be made. Under the
able management Of pioneer steel manu-
facturer. William G.. Park. its president,
the property is now in first-class dividend
paying shape, and will return good profits
to the investors.
This Is only an illustration of the point
that It is desired to make here. Another
is the considerable interest which New
York takes in Lehigh Valley and securities
dealt in in Boston and Washington could
hn 70 ba or 10 pof n
conceive a time not far distant when the
variety of securities in which New York
speculates will be as great as. If not great
er, than those which are now offered for
market, London. The fiotation Of about
$3.50, 600 600 worth of Japanese bonds here
in the last year is a sign Of what the future
OF the market IS likely to be.
From about the time a fortnight ago,
when the Union Pacific directors declared
an increased dividend on the common stock.
until this week the Union Pacific convert
ible bonds were dealt in on the board at
slight premium. Allowing for the adjust
ment of interest in conversion. the bonds
should sell about y Of per cent under the
stock, and this Is the difference that has
obtained this week Last week, however.
and the week before the bidding for the
bonds was so strong that their price was
generally within one-eigfnth of that of the
stock, and was frequently Identical with 1t.
This fact puzzled some close observers.
and the sudden restoration of the differen-
tial this week is quite as puzzling. The
premium disclosed a strong demand for the
bonds from some quarter. yet although the
total of the convertibles outstanding was
more than $200oO.O00. the amount of bonds
dislodged was comparatively small.
A large trader In a nrOmfnpnt stock eY-
change house said yesterday: $50 and So
(naming partner In a leading banking
house, has been making a fat dividend for
his firm out OF Union Pacific every week for
the last month by selling the stock on q
scale up and buying 1t on scale down over
a range Of ~ to points.
I The statement was reported to the banker
bin question. and his only comment was: If
1t were SO you wouldn't expect me to tell
you"
He did not say, however that his house
did not speculate, as he might have been
has been going on as Is suggested 1t would
go far to explain the peculiar behavior OF
Union Pacific lately.
THE productive capacity Of the country
1s so great at the present time that in the
absence Of congestion On the railroads the
extra tonnage that can upset all measures
OF price policy soon put out. 1t must be
said that the>prospects are good for rail-
year. The corn crop is practically safe and
promises to be a record breaker.
This means not only great tonnage for
the railroads to haul, but Is a sign of that
prosperity which induces all articles of
commerce to move in greater volume. And
ii Is a matter of record that the high-class
merchandise naturally takes precedence
over coal traffic, impartial though some Of
fcers may try to be-"
The conference held yesterday afternoon
between representatives of western lines
running to the gulf ports and the eastern
trunk lines, with the view Of adjusting the
westbound sugar and coffee rates, resulted
in only preliminary steps toward a settle
ment Of the differences between the sew
eral roads concerned Arrangements were
made for formal meeting to be held at
Niagara Falls next Friday.
X X
Real bulls on Erie common are talking Of
rs for the stock before the end OF the year.
&
The Coal Trade Journal says:
III the soft coal trade could only get rid
Of that superduous ton In every twenty pro-
duced. IL the bugbear of overproduction
could be laid low for even a month, there
would be a wonderful Improvement and re-
covery. but quite naturally In the absence
o. any broad and comprehensive agree
ment. every producer wants the other fell
low to be the one to shut down for a few
days. and as long as this policy prevails
there Is not apt to be much restriction ex-
cept that which is brought about by the
stern fact of being unable to sell coal
I'm this way there has been some re-
striction practiced during the past few
weeks, but the policy will have to be car
RED further to give a genuine strong tone
to the market before cold weather comes
on. and even at that time restriction must
n hQ lnSf 10Th nf - oII f,4