The sun., 1906-01-07
GOSSIP OF WALL STREET.

| The strength OF the market at the opening
Yesterday was almost sensational and not
| wlthstandlng good deal Of profit taking
by traders and the professional element
| the early characteristic was well maintained
| TO the close. There were very few active
stocks which did not score advances which
| IN many Instances were quite substa ntal.
The volume Of trading was phenomenal
for short session. exceeding a million shares
In the two hours Of business The heaviest
transactions and the largest advances were
as rule In the standard railroad stocks.
| the most notable exception to this rule being
| the great strength and activity In United
States Steel. which for months has shown a
| disposition to cut away from the industrial
group and move with the railroad list. The
| copper stocks were active but moved in an
Irregular way. their opening prices being
| nearly the highest OF the day. while the final
| changes from the previous nights close
were not important. The bank statement
was something OF a disappointment but not
much OF factor In influencing tho course
OF prices. as the return flow OF money had
assumed such headway that there was little
apprehension about money conditions in
the oming week. A factor which now re-
ceives good deal Of attention Is the in
| creasing export movement In cereals. which
gives promise OF turning foreign exchange
| In our favor, and the fact Is not lost sight OF
that heavy exports OF farm products have
generally accompanied or preceded most
| important bull movements In stocks. Aver
age prices are now at the highest point on
record. but relatively to earnings and In
trlnslo value this level Is not regarded as
too high.
There was good deal OF guessing az to
tho reason why Sugar stockholders were
| 80 strongly urged to attend the coming
annual meeting, and the opinion was gem
| orally expressed that unless President Have
meyer had something Of Importance to dis
close he would have let the call go In tho
| usual form without the additional para
graph urging personal attendance. The
most common surmise was that some ar
nouncement in regard to the cutting of
| melon or acquisition OF an interest In Amer!-
can Beet Sugar would be made. but there
was another theory which. being original,
was not unworthy Of notice This was that
some modification Of the policy OF secrecy
which has been charact eristio Of the manage
ment OF the company might be In contempla-
| tion. but that Mr.. Havemeyer wanted it
understood that he would make such change
only In response to the expressed wishes
of stockholders. He has always opposed
the publication Of earnings or anything
| beyond a few remarks Of the most general
character in regard to business conditions,
and at the annual meetings in 1904 and 1908
| he adverted to the attempts Of the Govern
! ment to secure Increased publicity and ended
| with the announcement that the established
| policy would remain unchanged Mean
| while the agitation for greater publicity
has made headway. and 1t Is believed in some
quarters that Mr. Havemeyer. partly In re-
| sponse to q growing sentiment among stock
| holders and partly on account OF fear that
sooner or later the Government would exer-
else compulson. has decided to leave the
matter OF change OF policy In the hands
| Of holders OF the company securities. Should
| II be decided to make annual statements Of
earnings and financial condition the first
report could hardly fail to Increase bullsh
sentiment
The accumulation Of Pennsylvania, which
| has been in progress for many months Is
| Understood to be connected with a scheme
| for the Introduction of the securities Of this
company to the French market. Under the
regulations governing the admission of for
eign securities TO the Paris Bourse it would
| hardly be feasible to secure the listing Of
| Pennsylvania directly, but a plan has been
matured which will bring practically all the
advantages without the heavy cost of having
| an American security listed. This scheme
| contemplateS the organization of a French
company, which will purchase large amount
| of Pennsylvania. capitalize these holdings
| with its own securities and have the latter
| listed and traded in on the Bourse This
this time but for the disturbance in French
financial circles account Of the Russian
situation, but on the return OF conditions
calculated to secure a favorable reception
for the new securities the scheme will be
launched, and tho result is expected to be the
sale Of q large amount OF Pennsylvania stock
or its equivalent In another form to the French
public.
Atchison was one OF the strongest and
| ENa - ln,- i.
and there is no doubt that considerable
following was secured IN the advance. Credit
for the movement was largely given to +. J.
Berwind who certainly knows the property
we'll and who has expressed lately some very
bullish views on the stock As it is contended
that the road has now an earning capacity OF
between 8 and 10 per cent. in normal years,
while the current year is expected to show
more than 10 per cent. for the common stock.
the report OF an increase In the dividend rate
to per cent. finds some credence.
Bullish sentiment on Cnted States Steel
common more than keeps pace with the
advance in price, and the volume of public
buying appears to increase from day to day.
This is not a strange development as the
situation in the iron and steel trade IL probably
souuder to-day than at any previous time in
the history Of the industry In this country.
and the fact that the public appreciates this
discrimination, the lack Of which In the past
has been responsible for the collapse OF many
bull markets, Speculation in United States
Steel at these prices Is a very different matter
from speculation in other stocks OF 10 greater
merit selling at a much higher level, or in
cats and dogs" at any price. II is, in fact,
one Of the most wholesome factors in the
present market. being essentially sound and
an indication that the buyers of stocks
using Judgment rather than blindly follow
ing the advice Of tipsters. In circles where
only conservative views are allowed to pre-
, vail predictions are made that Steel common
! will double In price within a year. and that
IN the next period Of depression this issue
will hold above the highest level az which
1t has ever sold up to this time.
| The continued great strength in Union
| Pacific naturally served to keep alive tire
| rumors of a substantial increase in the divi-
| dend and OF the possibility Of rights on the
| companys holdings OF Great Northern and
Northern Pacific. but lest there should be
any disappointment or delay in such favor
| able developments conservative interests