Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-28
BULLS AND BEARS.


NEW YORK. June 2s.-The short inter-
| est which contributes so much to the
strength Of rising market Is being re-
cruited daily. For the last two weeks there
has been fair borrowing demand for
stocks in the open loan crowd. but the pri-
| vate borrowing from house to house Is very
heavy and much more significant OF the ex-
tent OF the abiding commitments for the
1ali Inquiry made today indicated that
more stock was being loaned now than was
loaned a month ago before the present rise
started. The head of a conservative COM
| mission house said this afternoon:
Night after night We loanihg prac-
tically every share of active stock that we
puy. We overloaned Union Pacific last
night and had to borrow some this morn
ing ourselves. AS a result Of our lendings
| haven't cent Of call loans today. l paid
on more than half million dollars of cali
Ioans with the proceeds on last nights
STOCK lendngs Steel preferred seems to
! De an especial favorite with the bears We
have large block of it here but for
months there has not been more than 1900
shares OF II IN the house at any one time.
= x
An advance of VI of 1 per cent In the Def
aware and Hudson Fights to subscribe at
par to the new Albany and Susquehanna
iSiuiiuAH5 DcHu issue Oh NlU,VOUU OF SL2
per cent is equivalent to an addition OF
about per cent to the price of the bonds.
IL Is inquired that the bonds purely on their
merits as a gilt-edged issue legal for in
Vestment by savings banks in this state
should sell at about 1O5 and interest but
1t Is difficult to compute the worth of the
call which purchasers of the bonds have
on Delaware and Hudson stock at 200 for
the next ten years.
The Delaware and Hudson has paid per
cent dividends Annually for no Loci
years, and its very rich condition aside
from the brilliant prospects of all the an
thracite roads. would warrant confidence
mat 1t would be increa sed to 10 per cent
at least in the coming decade 1t was
wholly unnecessary for the company to add
10 the bondssthe feature of conversion into
Dei i and Hudson stock in order to
reallzc par for the ISSUE for the bonds
would have sold al good premium on their
investment merits alone That the COM
pahy expects that there will be sufficient
i.uucelneht TO convert the bonds into
stock-thus reducing mortgage obligations
oy sl'ooo,o0 at a cost of only S5OOOOOO in
Increased stock obligations, the stock Itself
nenehting by the increased equities, to say
Oh s.sooCO year In interest by the retire
ment or the bonds for which the new issue
way made-is foregone conclusion.
~ would seem to be altogether In the
range of probability that Delaware and
Hudson stock will sell at go at least and
may be great deal higher before the call
privilege that goes with the present bonds
expires An addition of 10 per cent to the
market value or the bonds an investment
would apparently be an insignificant nrice
10 pay for this call. considering the length
OF time which 1t will run and the Droba hill
i.ies IN meanwhile. Such extra premium
~ouiu amount TO paying l per cent a year
LOT the call and at rs the bonds would
Sieid 10 the purchaser more than 3 per cent
year In interest. All in all, the New Al
pany ana Susquehanna bonds are a remark
able issue. ~
r.; n. Harriman's departure for Japan
WIN ms family in about two weeks, is ex-
pected to be more or less coincIdent WITH
some important news developments favor
aDle TO the stock market. Conjecture as to
the nature OF the news ranges all the vav
from the dividend action of the directors of
the Hartman Pacifics to announcements
concerning the western and northwestern
ranroad situation. and includes expectation
that something will transpire with regard
TO liiinois Central. That there is likely to
De quite crop of real news this summer
bearing on the market there is eminent
banking authority for saying
1t Is believed that the accumulation of
ERIE common in one quarter that has been
gong on from the tWentieS I'D amounts tn
100000 shares or more now: that 1t is not by
any means over and that it is for distribu-
ton among the treasures of several rail-
roads. 1t is further believed that, with this
stock permanently lodged, the COMPARE
tNeiy small boating supply remaining will
render easy operations to advance the price
to a figure that will make the convertible
bonds very attractive. and so enable the
Erie to obtain all the money it needs for
the extensive improvements
Predictions that sound rather wild are
maze that Erie Will cross 60 by fall but
while control of Erie may not have been in
the market. 1t would appear that enough
stock could be obtained there - concentrate
control permanently, and if purchases for
TINS purpose have been Ia nd
tinuing bold predictions about Fries price
may not be as fanciful as they seem now
rms is a consideration entirly apart from
those dealing with the rank which the Erie
will be able to take a trunk line railroad
when its Improvement scheme is completed
x y
The failure of knight, Donnelly & Co. the
! Dig chicago grain house that went into a
receivers hands this week is taken in some
| circles to indicate that the Gates pool did
not lose so much money on the May wheat
deal. western firm says about the Knight.
| Donnelly Co. house:
| 1t had 100000 of Gates wheat turned
| over to 1t from other houses and it lqul-
| dated 1t in the last of April and throughout
Way. IL mas always been the gossip OF the
trade that the close connection existing be-
| tween Donnelly and Gates caused some Of
| the members of the firm to get line Of the
| high-priced May wheat. which they had
| when the break came, no advance tip hay
ing been handed to them"
| X X
The semi-annual dividend on Baltimore
| and Ohio will be declared about July a. 1t
| Is generally reported that the rate will be
| advanced to per cent. The quarterly divl-
| Gend on Jersey Central will be acted on at
| about the same time, and there is some
talk of an increase to 10 per cent rate
X
| Holders of voting trust certificates for
| SOB ,2OS shares Of Seaboard Air Line railway
| stock out of total representing sos, UyU
| shares outstanding. being more than S2k
| per cent thereof. have aSsented to the
| modified financial plan prepared by the
| committee Of which Thomas F. Ryan Is
| chairman. The committee, having declared
| the plan operative and practically COM
| pleted its work. will accept no further de-
| posts.
Holders of Morton Trust Company certifi-
Gates of deposit who have not surrendered
| their certificates for exchange are notified
! to surrender them to the Morton Trust
| Company of New York the Continental
| Trust Company of Baltimore. Md, or the
| Old Colony Trust Company of Boston,
| Mass. and receive their new securities.