The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-20
osaass % WAEL srMEEE.

NJ tsssts III NJ fgsasys vaaf VI mess
Wsta asay ~ slfeHd ths ISL eaefe H Rsstaa
aad laatf a6as1ea fesaFed N sImsst eutns
esefe sfseHstieH fhegs go NJ eaaieh
aHtnistieH ~ nesp Ne iss feetatuina tfsd.fs
afaUHd iHaif eRisl pYsfa faf atnfe thaH q few
hylrutea " . w WHits msftefs Frfe IN ~
IHfafeeliHu 4 eHadfisH eH ne HHHf y faa hHt
" ~ WsHdrfet hff Wtr fgteHIinN 80 rstd
Nv lhe esufss ~ pfiFss ~ fts feW customers
M hfaRafT gHleea. sHs Fsfs ihefs nHHfe ~
secrua, N habf taaa n aHg rnsts,ss y ~
bdslHeas fhs tiesef, silent mus' W ne iifHe
haa w fsis Nv feii shish eruht iefefeF fHY
afe eteert faftfa M minHte NJ ~ shes y
tiehed eut NO haWses N me tsnt statement
M no ttrhsHes. IN ne hfHtsgf seltes and ~
thfBues me 4fFeat tkSfa Wss 4 hsfiessheas
Nteh ~ 10 safy fsfsty aeen N th~ hHaarisl
fnsstHH aNd thsHah shsn me haNE Ma,eNen,
Ntade NJ aersaesesr thefe w. a silah, fslly
fH1fe eyea atafNHA ~ 30 dlfFeteH tHWHfd I'VE
ttsch thaa trws,d NE tles"'
rfadsns we eodaasd ~ 4 eeFrrstadveiy
fee laades and aufne asorns tauaiiy sr'lyt
vefe haciiy hHeHtloHNf " the co,ifse W we
daya bualhassl hmona tha st0uha that did
aof Furnish q sinela transaction 10 tho ffst
halt hour wefp Nev Yofh CeHtssl Illinois
Central, Caasdtau Pscinc. Northern Pacific,
tSflavIlls a0d Nashville. Mls4ord Pacific,
N. Ptat Horh island ragirnon and pfsfeffed .
efeaf, arnsiteFs, Psdrles uas " Central
tNsehaY fh~sp ars ~ In he Glass ~ issues
usually active, aad Tho llss might be stea'iv
added n ~ Tho inclusion " others, witch ~
A rule are traded In IN q moiefats eHtent.
Tho contraction ~ TRADING into such very
nsgr6w limits showed. ~ coufae. The almost
oornpiete absence Of everything except pro.
f~eealonal dealings
Perhaps with view 10 emil venins . very
dun day circulation vas given 10 q predlctlon
made by q speculative operator that facka-
wanna woutt sell a t.000. Delaware and
Hudson AZ an. Reading az so1. and Erie AZ
10 or better, The prophet In this caae. how.
ever. having In mind Mother shipton's fatal
mlatake In setting q time limit on hsr famous
prediction. was determined that the FLIGHT Of
years should not rob him Of the honor due 20
the making Of suoh q remarkable forecast
and 20 he named no period for the fuihlment
Of hla Representation THIS fact made the
prediction the subject Of quite q little Jest
among the brokers. some Of whom said they
would be willing to bet on Il either way with
bets on IN the event Of death. In such Q
transaction the stakeholder would have q
clnoh.
One trader asked what was the srudge
against Delaware and Hudson. which only
got q maximum limit OF 300, AGAINST i.0O0 for
Lackawsnna- From his point Of view there was
q very serious lack Of sense Of proportion In
che relative figures assigned 70 these stocks.
-
Some conservative houses. noting the
complete absence Of public interest In the
market and the apparent apathy Of the large
interests, were inclined to favor the view
that until more was known shout the years
crops business In Wall Street was lk ely
20 continue Of small volume. There was no
reason. they said. why there should be any
considerable decline In prices: but az the BUSH
ness would be almost entirely In the hands
Of the traders they thought that prices were
likely TO swing within narrow limits In re-
Spouse to professional operations for mall
turns.
Baltimore and ohio's rise was apparently
designed to counterfeit the effect Of the recent
decline In Pennsylvania resulting from the
revelations at the Interstate Commerce Com
missions inquiry. Pennsylvania practically
controls Baltimore and Ohio and ls infuen-
tial In shaping the latter's policy. What
Affects Baltimore and Ohio Indirectly affects
Pennsylvania. so that q substa ntial rise In
the stock Of the subordinate might cause
uneaainess among the shorts In the stock
Of the parent company. That the rise In
Baltimore and Ohio might appear the more
aignihcant q good many Of the buying orders
were given through houses with London
connections. but few II any Of those had their
origin on the other side. as the London curb
was practically deserted and no interest
whatever was manifested In Americans.
The reason for giving the mo vement an ap-
pearance Of London support was that the
foreigners were disposed to take the Penn
~syivania matter much more seriously than
people on this side, and to show an incllna-
ton to await the institution of the promised
reforms before taking q bullish interest on
! that stock. II 1t could be made to appear
that their distrust did not extend to Balti-
more and Ohio the public might soon forget
their attitude toward the other company.
What contributed q good deal to the success
| of the movement In Baltimore and Ohio was
the fact that there was O fair sized short inter-
est In the stock, Most OF this short interest
however, was technical, as 1t arose from the
selling OF stock against the rights. This is q
common operation In cases where rights on q
stock can be bought to secure spectators
against the usual risk attending short selling.
Those who thought Baltimore and Ohio was
likely to suffer from having the fioa ting supply
increased through the issue Of new stock
bought rights to subscribe to the new issue,
| and then sold a corresponding emount Of
stock Of which they are technically short
pending the issue OF the new certificates for
which the rights entitle them to subscribe.
A short interest Of this kind Is usually very
stubborn, as, no matter how high the stock
may be forced, the risk Of loss lie limited by
the purchase Of the rights, except In the ex-
| treme case Of o corner before the new certlf-
| oates are issued.
Distillers Securities was q strong feature
of the Industrial list. and there was q good
deal Of bullish talk based on the theory that
| relatively to National Lead. another 4 per
cent. issue, the stock was very cheap. Some
traders thought the buying looked good and
for that reason took hold on the bull side,
but the following secured was very small.
There seems to be q pretty general dispositl on
to await the Senates action on the free alcohol
bill before doing anything in the stock.
The passage Of the rate bill by the Senate
had no influence whatever as q market factor.
except that 1t paved the way for the appro-
priation bills and the final adjournment OF
Congress. This. 1t was said. would probably
occur about June 8. The payment OF
preparations will tend to bring about still
greater ease In the money market. and with
| congress out OF the way II is felt that the
market will before long attract q larger share
OF public interest.
The bank statement about met expectations
with q reduction Of 81, 7e5 1926 In the amount
Of surplus reserve. Loans showed an In
crease Of a little over SIS, OIL 600. partly due
to the return to the banks OF the securities
deposited with the Sub-Treasury to secure