New-York tribune., 1906-06-20
POOL PEG" PULLED.
"INTER-METp' TUMBLES.
Common Stock Breaks to 42 IS. Re
coUer1pg Slightly at Close.

The stout peg" which for many weeks has
prevented Interborough-M Metropolitan common
stock from declining below 80 either broke or
was pulled yesterday morning. and the stock
dropped to 421s. subsequently recovering small
part of its loss. The issue has been supported
by a pool, at the head of which are the power
full banking interests identified with the com
pany and included in which are many Stock
Exchange houses. Even during the panicky
days following the San Francisco catastrophe
"Inter-Met." the Street knows it, was kept
pegged" at 90. and 1t the only stock on
the list which did not suffer a serious decline
AS recently Monday morning an offer to
take 10000 shares at 80 was made on the floor
Of the Stock Exchange. At and fractionally
above that figure nearly 10000 shares were sold
on Monday the pool presumably being obliged
to take the entire amount.
Where all the selling came from. and where it
has been coming from in heavy volume of late. is
not known. A good deal of 1t has undoubtedly
been short selling, for the bears, at first shy of
the stock because of the serni-off1cial announce
ment when the merger of the local traction
companies effected that the common stock
would not he allowed to drop below so. have
lately become emboldened with the spread and
persistence of reports that the peg was weak
ening. But it has within the last day or so been
rumored that one of the pool members has been
selling out the pool and it reported
yesterday that the verihcauon of this suspicion
was the reason for Withdrawing pool support
from the stock. Whatever the cause of the
change of policy, 1t is declared undoubted
authority that it Will remain mystery to the
Street.
Bankers interested in the pool management
declined yesterday to discuss the subject, be-
yond saying that 1t was - pool matter" and
intimating that the withdrawal of supporting
orders st the level of so did not mean that sup
port would not be extended at a lower level
Indeed, it was apparently the execution of sup
porting orders at around 43 which prevented the
price yesterday from going lower than 1t did go.
Pool members deny that any pledge was made
to hold the stock at so. One OF them said: 1T
pays better to take stock at Al than it does at
80, if you get it.
The first sale Of "Inter-Met' common yester-
day was at 1875, no effort whatever being made
at giving support and this transaction was
hailed with a cheer by the thrOng OF brokers
post Nearly 100000 shares were sold in the
course of the day, the bottom price 421s, being
registered about l o'clock The close was at
49,. net decline of Ga points. The shorts sold
heavily throughout the session, and the extern
sion of the short interest in the stock is under
stood to have been not unpleasing to the pool
which may be able TO turn profit by and by
in engineering squeeze"
A leading Interborough- Metropolitan interest
asked yesterday afternoon about q rumor thdt
an Injunction was TO be sought to prevent the
company from paying further dividends on its
preferred stock, answered Anybody might get
such an injunction. but don't attach any i'm
the dividend it's preferred stock, and will con-
iDIlR a