The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-26
GOSSIP or WAL STREET.

colnoident with the sensational rise In Reading.
and continued yesterday morning. bore
some evidences OF having the assistance
OF a bear clique which has relations with n
large bucketshop combination. but 1t Is
probable that the real check " the advance
came from conservative quarters. Certain
banking interests did not like the way pro.
fesslonal operators were bulling particular
stocks. especially Reading, and they placed
| large selling orders over the market When
the traders saw this good selling they hastily
turned sellers. and unloaded stocks. Yester-
day morning. when II appeared that the big
professionals were going In again to put up
prices. the same selling by banking interests
checked the market. The temperance
OF this selling scared some people, and several
OF the large speculative wire houses began
4 unloading stocks. They advised their fol-
lowing to get out Of stocks. One Of the
largest sellers OF stocks was Western house
whose members have been more interested
In horses for several weeks than In stocks
The selling movement was helped along
| by houses which often execute orders for the
bear party. and just at the moment when the
| market looked worst Boston operator. pub
licly committed for many months to the bear
side OF the market. telegraphed to many rew
York brokers predicting a panic. Reading
broke from l241f to 1901. Union Pacific from
1871 to 1914. Steel preferred from los to io4.
| Erie from SIX to 4ex. Missouri Pacific from
] iOsX to lO7 and Amalgamated Copper from
ssH to s8H Tho volume Of trading on the
decline In these stocks was heavy. although
Union Pacific broke from 1850 to las on sales Of
less than 1000 shares. The same banking
interests who had put selling orders over
the market to check the advance put sup
porting orders under the market at the end
OF the first hour. and the aggre ssive ceiling
was checked. The stocks which ba | lei the
decline recovered a part Of their loss very
sharply. much to the discomfort Of some
of the wire houses who had expected to re-
cover their stocks at lower prices The
tone OF the market during the remainder
OF the session was uncertain. although there
was no further pressure to sell stocks. The
volume OF trading contracted in the after
noon and the business OF the last two hours
was merely nominal.
The number Of people who are praying
for a 10 point reaction on which to load up
with stocks Is daily growing larger.
The slight furry In call money rates near
the close Of the market was without effect
on prices. Some loans were made at per
cent. Most Of the loans for the day were
made by a powerful banking institution.
whose call loans are said to amount to sIO0.-
600. OOO This bank. which at times exerts
a very decided influence on speculation. has
it within its power to place a check on the
speculation for the rise whenever Y cares
to call loans. The most prominent interests
connected with this institution are conf
mitted to higher prices. but they have been
known to temper the enthusiasm Of their
followers when they did not like the character
of the trading in the market.
The buying of the International Mercantile
Marine ~, per cent. bond Is OF excellent
character
The New York bank reserves will be closely
watched by the speculative community for
the next six or eight weeks. The reserves
are very much lower now than they were at
this time last year. when call money was
loaning at less than per cent. The move
ment Of money to the West this season has
begun earlier than usual and there is every
likelihood that IL will attain at least it's usual
proportions. The loss OF cash by the New
York banks during the crop moving period
may usually be. estimated In the neighbor-
hood Of go, 200. 900. Some rof the Western
bankers have been saying That they would
need less money from the East this year than
usual, because of the condition OF their own i
reserves But a study. of their most recent |
reports to Washington rather shows that |
the reserves In Western banks are lower |
than usual and that the movement Of money |
to the interior is more likely to be above the !
normal this year than otherwise. The crops /
call for more money to move them. The fact |
that the harvest is so large that New York |
must send many millions Of cash to the West |
to aid the agricultural community In gathering !
the new wealth from the earth does not dis
turb the investor who has some of his capital |
employed in Western railroads. 1t is only
disturbing to the speculator In securities whose
operations are dependent on the ability Of the |
banks to finance him.
THE higher stocks SELL" says the New
street philosopher. the less YOU hear about
dividends and the moro about surplus earn
in gs.
At the beginning Of the year two Wall
Street men took their bearings. They made
a list OF ten leading dividend paying rail-
way stocks. Five of them were selling
above 4 per cent. basis and the other Ave
were selling below this basis. The five
dear" stocks and their prices we're Union
Pacific IA: Reading. SO: Now York Central.
iaz; Baltimore and Ohio, iol: Illinois Central.
1857. These five stocks were selling on an
average z points above 4 per cent basis.
They had advanced during the year from
their low prices an average OF 30 points,
The high prices OF four Of them were In anticl-
patton OF increased, dividends These 1--WE
stocks. which had advanced an average Of
IS points. show on yesterdays closing prices
a further advance averaging 81 points. The
sol ri Pacific. 1O7; Pennsylvania. $50; st.
Paul. IT.: Louisville and Nashville. 40 These
stocks had advanced an average Of 10 points,
and they averaged 10 points below a 4 per
cent. basis, The advance in these fve stocks
since the beginning Of the year on yesterdays
closing prices has averaged only 8 points.
and all Of them, with the exception Of st.
Paul, are still selling below +per cent basis.
None Of their dividends has been increased
1t would have been a bold prophet who would
have ventured to say at the beginning OF the
year that Reading would advance more
than 40 points and Union Pacific and Illinois
Central each more than 20 while Atchlson
was advancing points and Missouri Pacific
. single point. ,. 80 ',-.t
Europe Is buying the Pennsyivanis oon-
vertible SIS. The bankers who under
wrote these bonds hope to place large pro-
portion Of them abroad. Blocks Of them have
been sold In London. Amsterdam.
Paris and Berlin. An order for $500. 900 was
received by cable yesterday from London.
These bonds are convertible into Pennsyl-
vsnia stock at $50. and the foreign bankers
who have been buying them apparently
regard them As very attractive call on the