The Washington herald., 1906-11-02
WALL STREET NOTES.

New York, Nov. l--G0Od OLD Sir Isaac /
Newton wondered why the apple fell I
down instead Of UP, and the traders are !
now wondering why the market went up I
to-day when they thought it should so /
down. The philosopher discovered the /
force that pulled the apple down, and /
when the traders discover the force that 1
put the market up. thcy will find that 4
they themselves were part of it. They 4
were short when they had no business to /
be, and the rest was inevitable. No rea-
sons were given for the advances in indt- /
vidual stocks other than PENNSYLVANIA, /
and none was needed beyond tho one I
which was Of general application that the 4
market had become Oversold-
4 rumor brought out by the markets. /
rise was that the Standard oil Company !
had received from its agents over the /
state reports of the election, and these /
indicated a landslide for Mr. Hughes. The !
trouble with story of this kind is that |
the Standard Oil Company is not in the
habit of giving out such reports as a
rule
From the very start Pennsylvania was
the feature Of the market, even in the
first hour transactions were on an enor-
NOUS scale one house taking between 2o- !
100 and 30,el0 shares, and individual lots
Of loo 10 200 shares frequently changed
bands, while the ticker recorded few as
large as S,0e1 There were all the evi-
1ences OF a heavy short interest, and
increases were reported where traders
had gone on a canvass of houses known
TO have the stock ia an effort to borrow
12,oo0 shares or even more Such scar
city OF Pennsylvania had not been seen in (
Il long while, put the heavy covering
movement served in a measure to restore [
something like the natural relations be
tween demands and supply.
The Pennsylvania dividend came as
surprise, as few brokers counted on any
thing better than the addition Of an extra
feature To the regular Semi-annual rate.
Had the directors merely declared a semi /
annual dividend of 3 per cent. and an
extra cne-half OF per cent Wall street
would have been ready 10 argue that the
added feature was in the nature Of Il
special distribution which might not be
-epested six months hence, but the max
ing Of d fiat 3lz rate left 10 ground for
such argument. and the conclusion had to
be faced that Pennsylvania j. in the class
Of ! per cent dividend payers with Great
Northern and St Paul. although for the
present lacking such benefits as the 9TH
ers derive from the possibility of va
uable rights in the next year or two.
To facilitate great interchange OF traf-
dc between the Pennsylvania and the
Delaware and Hudson. the former road
viii doubtless track its line from SUnbury
10 Wilkesbarre, and the latter VIII put
il four tracks for a considerable distance.
The object Is 10 eliminate the trouble
some delays caused by bringing the
Jrafic over the crowded line through
Nilkesbarre. and the new construction
viii not only reduce the distance from
Delaware and Hudson. but by giving
better grade viii enable the road 10 haul
much heavier train loads. The outcome
VIII be an increased traffic ar a relatively
."wcT operating cost.
Hardly a word Of comment was brought
out by the declaration OF the Reading
dividend OF per cent on Chesapeake and
Ohio, which for weeks past had been
accepted as a foregonc conclusion that no
increase in the rate would be made at
his time. y few spectators who held
comparatively small amounts hoped that
he directors might spring a surprise, or,
doubling this good faith Of the assur-
;ince frequently given that the rate would
not be changed, threw over their holdings
pn the announcement of the action taken
at the meeting, but around s. the stock
met with good support, as it had iuva-
lIably met with az the level on every
decline tor many months past. Based on
Held Chesapeake and Ohio is high, but
Wall street has learned 90 apply better
est to value than the dividend ratings on
q stock, and the earnings of Chesapeake
Ind Ohio, which last year amounted 10
nearly PEI cent. afford full justifca-
ton for The present price.
Not the least interesting part OF the
Great Northern annual report is the
showing that IN the nine months In which
ne voluntary reduction in grain rates
lad been In effect on the road-the new
schedule having been introduced. on Octo-
Der /, 190j-the road sacrificed to shippers
lie sum Of $4,000.
1t is not the Great Northern's policy
10 fix rates ''as high as the traffic VIII
bear but To encourage every kind Of
industry along its lines by making the
charges for the transportation as low as
possible, and offsetting this by low cost
"i operation. In this way the road saved
10 shippers many millions by voluntarily
rcducing the rates from 1851 to tn
of 1905, fiscal year, and the new item of
Nl5o@o must now bc added to the total.
There was It queer misappTehension Of
facts in the rumors that the directors Of
The Bank OF England next time they met
would have raised the rate from 10 7
Der cent The sUppOsition Was apparently
that 70 meeting had been called on ac-
count of the bank holiday" But All
Saints Day although d holiday on the
continent, is not d bank holiday in Eng
land. The London Stock Exchange closes
on that day, but the bank remains open.
The reason for the closing OF the stock
exchange exists only in the Establishments
respect fer established customs, this one
dating from the time when the exchange
transacted its business in the courts OF
The Bank Of England, and the brokers
were driven out on Nav !. and November
J.. so that the clerks and accountants at
work IN half yearly accounts might not
he disturbed by the noise and excitement.
If the Bank OF England's return for the
week was not 50 strong as some predict
ri, IL was because the usual autumn
movement cf money to Scotland had or
set the gains from other directions. The
proportion of reserve to liabilities was
little lower than week ago, but the re-
duction was much smaller than I'm the
week covering the shipments to the
North. should the bank succeed in cor
railing the larger amount of gold on the
way from South Africa it would be ia
II