The sun., 1905-11-26
GOSSIP or WALL STREET.

bVh'iHlcHt III y'bleTuHy market, Dut tnerD lB
no doubt that previous TO the publication OF
the bank stateme mt the movements In both
stocks led to selling of the general list Re-
gardlcSs OF the heavy decl ne already suf-
fered by Rock Island tho Street was inclined
to regard this stock as a very vulnerable point
In the market. and the fact that no substantial
reason for the break had transpired only in
creased the fear OF what might happen in
stead Of revivinR confidence, as every further
recession increased the mystery In Ten
nessee Coal tho movement had too much she
appearance OF manipulation based on the ex-
istence OF short Interest to enttle the rumors
Of early contamination OF merger scheme
TO attentive consideration. The action of the
stock gave rise TO rumors Of possible cor
ner. development which always exerts a
| preJudica influence on the market ae n whole.
The story OF corner was by we'll informed
people said TO be entirely groundless, and IL
was pointed out that the price had crossed
liz early in the year when the conditions In
! the trade were by no means as good as a
present, On the publication Of the bank
statement which was better than had been
expected. the mar ket broke away from these
! influences and there was free covering OF
shorts practically throughout the list Ten
nessee Coal closed near its top figure, while
Rock Island recovered fractionally from its
! lowest. Reports of the probability of sub
stantial increase in the Tennessee Coal dlvi-
! dend furnished q more satisfactory explana-
| ton OF the movement in that stock than any
| OF the stories which had been current earlier.
| The sensational advance in Tennessee
| Coal and Iron. while accompanied by rumors
| that merger plan involving this and other
! southern iron concerns would soon be an
nounced. had probably as its more immediate
| cause the prospect for an increase In the
| dividend TO be declared In January. There
| had been some expectation of an increase to
per cent. blt re hold nut
| nope or even higher rate. According to some
| OF the bulls on the stock Tennessee Coal and
Iron has value far above what is repre-
sented by present quotations on the Stock
Exchange, and some of the predictions as to
the price movement within the next year are
extremely optimistic. Perhaps the most
logical argument heard on the stock is that
the company has a splendid property, which
has heretofore been only slightly developed,
but which must benefit immen sely from
the awakening of the South and ultimately
from the construction Of the Panama Canal
The rapid advance in Southern iron markets
In the past few weeks has indicated that
the demand for iron Is likely to call for a
great increase in production. and Tennessee
Coal and Iron not only has the greatest
quantity OF raw material susceptible OF cheap
production but the best facilities for turn
ing it into the finished product. Millions of
earnings have been expended in improving
pidut anu tne company s property,
and now stockholders il is said, are to reap
some of the benefits. Among the largest
buyers were F. W. Savin 4 Co., H. Content
Co., and Judson 4 Judson.
The selling orders in Rock Island were said
to have come in large volume from n house
which has frequently been known to handle
business for some OF the largest interests in
the property, and this fact. added to the open
ness with which intimations were given re-
garding possible suspension of preferred
dividend payments, tended to increase the
mystery enshrouding the stocks decline
The story that some Of the large owners OF
Rock Island sold out part of their holdings
of this and other stocks some months ago and |
were using Rock Island to depress the market
while they repurchased their lines did not |
satisfy the bears and brought no consolation |
to the bulls The bears said II looked as II |
this report had been put out to foster the idea |
that absorption and not liquidation was in |
progress. while the few remaining bulls took |
the view that If the stock was used in this way |
the end might still be a long way of The |
question as to tho value of Rock Island pre-
ferred. which exercises the entire voting |
power in a company controlling OF the !
largest railroad systems in the country, was |
answered differently in various quarters, |
though there were many who thought that |
the line Of value might not be much under the |
present price.
Various rumors OF an approaching merger |
Of the local traction companies were current.
the most tangible OF which was that Brooklyn ,
Rapid Transit was about to make an offer to |
lease Metropolitan under guarantee of per |
cent. on the latter company's stock This and |
other forms of the merger story have no pres
ent foundation, although the buying of Metro
politan in the last week has been significant |
of harmonious relations which, withoutA ctual !
aOli6atiOn anablp these m n IN
cooperate for mutual ben eft in the handling
OF trafio between the two Dor roughs.
Postponement of date Of issue of the Union
Pacific annual report had the effect of shaking |
out good part of the speculative bull account
and placing the stock in stronger hands.
Had the document made its appearance on
Friday as expected, these spectators mi ght |
have been enabled to make a considerable
profit by bidding up the stock and selling to
the public before the latter had an oppor-
tunity to grasp the significance of the leading
items The fact that this design was frus-
trated left the market still in expectation of
the stimulation of q healthy public interest
by the publication of what is expected to prove
one of the most favorable railroad reports
issued this year.
Regarding the terms of the Lead merger
which was generally believed to he practI-
cally assured rumor was discreetly silent,
hut the aggressive buying of the stock indi-
Gated that the market had not yet fully dis
counted the benefits TO National Lead stock
holders OF the proposed combination 1t is
understood that previous attempt to
effect deal terms were allotted to National
Lead which would have given its common
stock a valuation of appro imately 500 a
share and II is said that in the present instance
the price can be figured somewhat higher
fairly bulsh sentiment on International
Paper was created, and in many quarters
1t was argued that as earnings for the common
stock last year exceeded ~ per cent. this
stock was probably cheaper AT present market
quotations than any similar stock on the list.
The preferred has received its per cent.
dividends egularly since the formation of the
company and the fact that this dividend is
on-cumuative and might be discontinued
In the unlocked for event OF a serious trade
depression is regarded as giving additional
speculative value to the common stock
surplus earnings after the payment Of pre-
ferred DIVIDENDS have since the suspension
nj M YIN nj Ia on the common gone back into