The Washington herald., 1906-10-14
WALL STREET NOTES.

New York. Oct l3.-TO-dayS market
was absolutely without news. and the
best that even the best-informed brokers
could tell their customers was that they
believed the political situation had some
thing to do with it.
From Washington came dispatch to
the effect that Chairman Prouty. of the
Interstate Commerce Commission, would
soon commence work on report cover
ing his investigations into the relations
between Union Pacific and the Union Coal
Company, which, it is alleged. the rail-
road owns. The investigation has been
under way for several months, and at no
time has it been regarded as a matter OF
market importance. Mr.. PrOu;y's report
when ready will be sent to Congress, the
investigation being carried on in response
to the Gillespie -Tnlman resolution, under
which the relations of Eastern roads TO
coal companies along their lines has al
ready been concluded. Probably the re-
cent rumoTs about a government suit TO
contest Union Pacific's right 20 the land
grants represented a blending Of the coal
investigation with another matter of no
/ consequence whatever. When Wall street
wants a reason for a movement in a
stock Il generally finds one, even, as in
! this case. If it has 10 dig up something
So old as to have almost dropped out OF
memory.
Union Pacific was conspicuously strong
among American stocks in London. but
I the poor showing made on this side sug-
Bested that local operators had impaired
the strength to the foreign market with
view TO the effect on sentiment, so that
advantage might be taken of this llquida-
ton. It was comparatively easy TO brace
up the price Of stock I'm London. when the
market was quite narrow, even for Sat
urday.
rumor crediting TO James J. Hill
prediction that Steel common would cross
the preferred within a year. has recently
gained circulation. There is a strong rea-
son TO doubt the authenticity of this
story. Mr. Hill always scrupulously re-
Trained from making predictions on the
stock market. He may give his opinion
! as to the probable course of the market,
nor is there doubt as TO Mr. Hills appre-
citation Of the investment value of United
States Steel, but that he would attempt
to forecast how long IL might take the
| public TO recognize the stocks merits. or
make any prediction involving the tenn
/ pOTaTy conditions which might Interfere
with the markets movements, is entirely
doubtful, to say the least. Mr.. Hill is 4
solid builder. and does not count on real
Izing his hopes within a year or So He
is an investor always, never a speculator.
In spite OF the heavy pressure on United
States Steel common the stock was taken
in large volume at forty-nine and It was
considered, even by those who were not
/ bullish on the stock, that it showed re-
markable power OF resistance consider
ing the extent 10 which the speculative
/ bull account must have been increased
on the rise during the week AS, in the
best-informed circles, the belief is still
generally entertained that there viii be
no increase in the dividend. the enormous
accumulation of the stock becomes all the
more significant of the cheerful feeling
entertained in high quarters as to the
future Of the property.
As for several days. Reading has failed
70 respond 10 the optimistic prediction re-
gIrding it. and there is reason to believe
that some large speculative interests have
marketed q good deal OF their stock on
the strength OF reports concerning the
present prosperous condition of the prop
eUty and its future destiny To-day. the
tone Of sentiment changed in some quar-
ters, where optimism was particularly
rampant week ago. and instead of YER
teal rise TO 10 Il perpendicular drop OF
about an equal number Of points was
spoken Of. The first prediction did not
make good. and there can be no earthly
reason why the contrary one coming from
the same source should be received with
any consideration whatever. There are
certain enormous interests in the specula-
tion in Reading, and until these can be
eliminated or restrained the movement in
the stock is more likely to represent the
attitude OF a clique toward the general
market than Of others affecting the value
OF that security.
When a market becomes utterly profes-
siOn2l il is Of no great moment TO in
vestors, whether the talent is working FOR
a rise one day and q reaction the next. OF
vice versa. The game may fatten while
dog eats dog
Business in Atchison was light but the
stock maintained a firm ndertcne which
disclosed a sold-out condition. There is
still q large short interest in this stock.
put out al the time Of the dividend
declaration in the belief that on a > per
cent basis the price should drop to par.
This argument lost sight OF the substan-
tial fact governing value that earnings
last year were equal 10 fully I2j5 per cent
in common, and that this year they run
materially higher, giving promise Of II or
Is per cent available for the junior stock
from the twelve months business. With
such results AtChisOn's prospects for
q per cent rate next sprins is by no means
q negligible factor.
The probability Of an increase in the
Pennsylvania dividend from to per
cent is regarded in Wall street from two
widely different points CT view. PeThape
the one most generally entertained is
that. if the change is made it will be
in obedience TO the demands of banks and
ether large holders Of the convertible
bonds to make the securities more sal
able t,lan they have proved to be so Ear.
The other view is that as the earnings
continue to grow and the company has
practically reached the end of its ca pital
requirements il is but just TO the stock
holders that they should be given al least
an extra distribution from the proceeds
OF the present prosperity, as they have
had no right Of value or anything more