The Washington herald., 1906-10-27
WALL STREET NOTES.


New York, Oct. 26-The bargain hunter
was more in evidence in Wall street to-
day than in many a day He was to be
found closely watching the ticker or the
quotation board. or earnestly comforting
with some one whose opinion he valued
and breaking off from time to time to
write his orders 10 buy stocks at the mar
ket or as much under as he thought the
reaction would carry them. What brought
him down was probably the fact that The
stocks had gone off on an election scare
which was hardly warranted. and that
the relation of prices TO values was never
more favorable to the purchaser than
at present. The new factor in the may-
ket encouraged brokers 20 believe that
there might soon be notable increase in
the amount OF public interest.
Reading sustained its reputation as a
speculative football. bouncing about in
very lively way. according TO the mood
of spectators. The source of the selling
which broke the price to 1SS was hard TO
trace as il was very much scattered, but
as nobody seemed 10 know much about
it, there was no apparent reason why il
a rumor that certain houses had been
warned By the banks that they must
reduce their lines. but it is doubtful II
this was anything more than m inren-
ton of the bears TO promote uneasiness
at q point where public confidence was
not very strong
The public are not in Reading fail
to see value in it FOR the level OF prices
around which Il has ruled in the last few
months. and have grown distrustful of the
kind OF manipulation carried on i'm the
stock and OF those who have conducted H.
The accumulation BY large interests has
created situation very favorable FOR
the operations of bold spectators. and this
has been grIsped in a way which has
deprived the movements in the stock OF
all significance. as Indications Of tie real
conditions surrounding the property. y
conservatiye broker. speaking of Reading
said 1T might 30 10 10 or TO Toto
the one as easily as TO the other-and The
man who buys IL or soils il short is merely
gambling on what q crowd Of spectators
may decide TO DO next
What should happen does not always
occur. but 10 did when the general market
TO "a notable extent ignored the break In
Reading ut about the end of the first
hour ana This act was regarded with
satisfaction by most conservative inter-
+ ests. II WAS but right that the opera
tlons Of Jsman band of SPECTATORS
should not avail 20 disturb confidence in
+ the general market
/ At the time when the traders were SELL
ling Pennsylvania on rumors Of the i'll
health cf President Cassatt that gen
tleman was working at his desk at the
Broad street terminal at Philadelphia.
1 This was fair specimen OF how we'll
informed the selling of the market was,
and under tho circumstances rally was
inevitable
/ Little has been heard recently regarding
/ the probability Of an increase in the Penn
sylvania dividend. and yet the time for
action on the question is less than a week
away. The road has been making great
progress ia the matter of earnings. and
/ there is TO doubt that influential inter
! eSts in the company are iu favor OF distTi-
button oi q larger proportion Of the avail
I able surplus than Is represented by the
present C per cent rate
The placing Of the stock on a per cent
basis would naturally tend To bring ab9u,
. Tie conversion Of The bonds Of 1912. wIich
/ :rc convertible 1T 80. but until the l5l
level had been reached the Sl0G099.gjJ con
va -lbic OF 1913 would not be affected.
/ Conversion is made only on interest days.
which correspond with the dividend pay
montS. so that there is no adjustment of
interest. The probability. however. IS
that instead OF making a fat Z per cent
rate. the directors win declare fer the
7 nj hl III frgVs.
cent distribution. adding an additional
I half Cf one Der cent as IN extra dividend
: close observer Of the trading in
1 AuaIgamatcd Copper said that on the de-
cline the stock was absorbed by the pub
lie In a way which indicated appreciation
Of tine strong position Of the metal mar
keL What was supposed 90 be a weak
fduN account ne said. proved to be some
thing entirely different. and not hereto
fore suspeCted-the establishment Of an
investment demand for the stock which
could not be scared away by any bearsl
operation 80 long as the intrinsic merits
OF the property remained unimpaired.
! just when tlc market was weakest IN
the forenoon. "A Broadway house sold 10
600 shares of Steel common. and other OF.
feriEgs were heavy. but good support
I FOR the stock was constantly maintained
under &c, and as soon as the selling press
ure was removed the price quickly rec0v-
cred Go that figure, or over. The meetine
for dividend action will be held next
Tuesday, and while there is no longer ex.
pectation that the dividend on the com
mon viii then be increased. a fact whicl
does not receive the attention il deserved
is that a highly favorable statement oi
/ earnings for the quarter xviii be made
showing not only good returns fer III,
past three months. but a large volume OF
orders on hand as the basis Of activity
foI the future.
Delay in completing the ore deal Wa.
: given as the cause Of the selling of Great
I Northern although OF course that matter
is in such shape now that what remain.
70 DE done is only routine. 1t was bc.
cause the interests directly concerned
\ recognized that the arrangement OF all de
tails would require a good deal of tim,
that they decided. for the purpose of al
laying anxiety. Ia make an announce
ment. rs was done weeks ago. of the bar:
fact that the deal had been completed
although ~ was then, as il would be now
) impossible 20 give fun particulars.
From start to finish there was neve
a minute when Union or Southern Pacif
] could be called weak. and when the rail-,
started they We're among the leaders O
/, the advance. At first they maintained Ii
J equality based on dividend yield. whicl
] was so notable upon the preceding day
but in the afternoon the latter stocl
/ gained an advantage apparently for tn
! reason that IL cost less than the otht.
3 and. therefore, involved a smaller carr,