Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-12
BULLS AND BEARS

per cent refunding bond issue the more
clearly 1t appears what a wonderful piece
| OF fnanciering 1t Is and what trans
cendentaliy high credit the Delaware and
Hudson has. These bonds. which are be-
ing dealt In now at III to 116 on the curb.
20 per cent paid-the highest price at which
a 33a per cent bond ever sold-win not be
fully paid up until next spring. after which
they are a ten-year call on Delaware and
Hudson stock at 30. being convertible into
the stock at that price.
For whatever other reason the stock Is
selling now at from 215 to 22s. 1t seems
likely that an per cent dividend rate will
be established In the next few months and
that will come very close to guaranteeing a
quotation for the shares which will insure
early conversion. which means that by the
| rounding of the and per cent bonds and
the conversion Of the 81 bonds, the Della
ware and Hudson will save 100000 a year
In interest charges at cost Of $4OO.OOO
year in per cent dividend on the S.,
900 stock to, be issued In conversion. q
net saving of $23o.0oo year with 5000, 600
o: stock liability substituted for $4,000, 600
of mortgage liability.
In the last analysis the Della ware and
Hudson will refund $10.O0O.O00 of bonds
bearing interest amounting to 100000 an
nually by the issue of $5,OOO.OO0 of 8 per
cent stock, which Is equivalent to refund
ing the bonds by per cent stock issue.
and means that in the case Of the Delaware
and Hudson at least the dream of every
railroad man for his property to do all
needed financing by the sale of per cent
stock al par has been realized.
The high ruling which the market has
seen given to the Delaware and Hudson
credit this year is almost sufficient in itself
to account for the heavy dealings and rapid
rise in it's stock in the last two weeks.
The few stock exchange houses which
have branch offices at Saratoga are doing
splendid business In the market this season.
1t is nice, clean business for these con-
Germs, too, for the bulk of the orders exc
cuted are for customers of dozens of houses
which are not represented at The spa, and
all that the firms whose branches take the
orders have to bother about Is to execute
them, giving up the names of the houses
where the buyers and sellers have their ac-
counts and collect their one-sixteenth Of
per cent commission. They do not have to
bother with the stock which Is delivered to
or received from the firm given up, which
also receives one-sixteenth of 1 per cent
commission. the customer paying the full
eighth. g..
Probably the Saratoga business so far this
season has run from $1,000 to 1900 shares
a day. An interesting fact about it is that
it begins to come in early in the morning
and comes to an end about 2:15 o'clock in
the afternoon. Racing is on then and the
rotaries OF fortune turn their attention to
that field OF speculative endeavor SO long as
there Is anything doing there. Following
the races there Is the card table and the
numbered wheel.
Atwood. Violet & Co.'S weekly letter
says: THE trend of prices continues up
ward. but the makers OF the market are not
disposed 70 renew wild advances in the
general list Neither are they inclined to
permit recessions to extend very far. With
the market thus held within bounds 1t
seems as If the errors of recent bull move
ments are being avoided and advances &C
complished in a moderate and convtsScing
way. This does not apply to high-priced
issues, in which there is no general specu-
lation and which move independently. Spe-
ctal movements this. week have been in
the coal stocks The accommodating period
is not yet over in Erie. Two weeks ago
thirty points in thirty weeks was predict
ed by some knowing ones for the stock.
We see nothing at present to cause more
than a temporary setback. Stocks will
respond TO the continued unusually good
fundamental conditions"
A. O. Brown & Co. say: Observers on
the floor said yesterday afternoon that
heavy buying orders were given out In
various hitherto comparatively inactive
stocks. which Is interpreted to mean that
the banking interests are assuming active
control Of the upward movement, and that
hereafter professionalism will be less in
evidence Higher prices are generally pre-
dicted for next week, but, in view of the
recent substantial advance. we advise TAX
ing profits on any good bulge and buying
again on receSsonS.'
Dick Bros. & Co. say: For some time
past We have been advising the purchase
Of stocks. and we are now less confident of
continued improvement in the GENERAL list
During the past two days. however tie
market has become somewhat excited and
1t may be wise to wait for some reaction
before making new commitments on the
long side"
The foreign exchange market started the
week with rates shade higher but a down.
ward tendency kuickIy developed, carrying
demand sterling as low as 4s3a4S3 on We'd
nesday. decline Of NC on the pound from
the quotation prevailing on the previous
Saturday. Offerings up to the middle of
the week had been quite liberal. made up
to large extent of finance bills. SUISSE
quently, however, the London discount rate
began to harden. which fact ma terialIy cur
tailed the further drawing of bills by local
bankers against their London correspon-
dents. Consequently under a moderately
large demand for remittance toward the
end Of the week to cover maturing obli-
cations. the market advanced quite sharp
ly during the last two days.
Yesterday developed particular strength
demand sterling rising to 4.86. T0a4. S6N at
the close. recovery Of 1-6 Of per cent
from the weeks low level and comparing
with 4S6. G6a4.66.65 at the close last Fri
day. The net gain for the week therefore
amounted to about 1-32 OF 1 per cent for
demand sterling. Long bills naturally did
not participate In the advance to such an
extent, and while they showed a consider
able recovery from the extreme low price,
sixty day bills closed at AS. 65a4. S4% COM
pared with 4.s4 sea4 s4.9o at the end of last
week.
c. Schumacher g. Co. say: Exchange il
very high, and we think that the market
would probably have broken very sharply
during the past week had not the japanese
movement come In as such a large buyer