Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-24
BULLS AND BEARS


Special Dispatch to The Star.
NEW YORK September alt was gen.
orally conceded that money would be the
controlling factor In the stock market this
week. Opinion, however. was apparently
about equally divided as to what course
money would take. There seemed to be
considerable confidence that there would
be no serious disturbance in call rates In
connection with the necessary preparations
for the payment Of the large October divi-
dends. Those who held this theory claimed
that the preparations have been under way
for some time, and. in fact, are now prac-
tically arranged. and that any effect upon
the money market from this source should
be regarded as already discounted. On the
contrary, It was feared that call rates
would advance sharply this week and that
stocks would decline proportionately Those
who were Of this opinion were inclined to
believe that II money showed any further
tendency to tightness Secretary Shaw would
bring forward additional relief measures.
1t was reported that he had already re-
ceived numerous complaints from mercan-
tile interests which within the last ten
days have been obliged to pay or per
cent more for money than they did iast
winter. when call money was quoted IS
high as 125 per cent.
A favorable impre ssion was made by Sat
urdays bank statement, and the decline
I'm stocks was attributed by some observers
principally to selling by professional inter-
ests, which, they said, bought on Thursday
and Friday, on the theory that the market
would be more active and higher on sat
urtlay Inasmuch as 1t would not respond
to the bank statement. these observers pc
lieve that the professional operators deciueu
to sell out even at a loss, rather than carry
the contracts over Sunday.
One broker in a position to get good in
formation regarding the market IS lhchneo
to believe that large interests would not be
ayerse to a decline of several points in the
near future IL this would result in a lessen
ing of the speculative following which they
now have He believes that the street Is
yet to hear of important increases IN uiVi.
dend rates and that "coups' similar 10 tnat
reported to have been made in Union Pa
cific and Southern Pacific are being planned.
He is confident. however. that II such
decline should take place. 1t would De snort
lived. and that stocks would rally very
rapidly: rapidly. in fact. as not TO en-
tail large speculative following.
x
The quiet strength OF St Paul continues
to attract attention. 1t Is generally con-
coded that recently there has been no at
tempt to advance the stock. but. On the con-
trary a determined effort has been mace 10
check any advance that might be attempted
by outside interests 1t Is good opinion tnat
practically all the stock offered within the
last two weeks or more has been taken oy
inside interests sharply on important news
yet to be announced officially.
HA
Although the general tendency of Unlted
States Steel common has been downward
during the last ten days or more, men Ia
miliar with the iron and steel situation 90
not look for this security to go much lower
unless the general market should nave
sharp reaction. They express the opinion
confidently that the stock Is easily worth
present prices, on the basis OF the position
of the company and the extremely orIshe
outlook in the iron and steel trade. man
familiar with the trade said this morning
that, so far as he was able to learn, about
90 per cent Of the output OF the IRON 1ur-
naces up to next July is already sold.
X
The declaration of a dividend at the rates
OF 16 per cent a year on General Rubber
stock and the resumption Of dividends on
Rubber Goods common stock at the rate OF
per cent a year. is taken as clearly fndi-
eating the resumption of dividends on
United States Rubber common. Ofhcfal &C
ton on the latter matter will not De taken
until Thursday of next week. While few
interests have not given unqualified consent
to vote in favor of a dividend at that meet
ing 1t is understood that majority or the
large interests in the company Is in in ia
yor of ordering disbursement at that time,
and consequently the outlook Is pretty
bright for the common shareholders, VINO
have been obliged to go without dividends
for several years to soon receive return
on their Investment The plans. which have
been practically contaminated. for placing
the United States Rubber Company In an
impresnable position with respect to its
crude rubber supply are not generally APP
preciated. If the company acquires the
belgian rights in the Congo Free State 1t
will be in as strong position with respect to
crude rubber as the United States Steel
CORPORATION Is with respect to ore.