The Washington herald., 1906-11-01
STOCKS IN A DECLINE
High Money and Fear of Flee
ti0n Outcome the Cause.
HEDGE By BETS ON HEARST
Traders Carrying stocks and Fear
fuI of slump Are Taking short End
of Wagers-MOvement in Mexican
Railway stocks shows Great Pros
peFity Extends 10 that Republic.

New York. Oct 51-Wi1h call money
above Z per cent-the highest was Il pei
cent-and the betting orders shortened Il
TO l. il was no wonder that to-day's
market declined. The trading was very
professional. practically all the business
originating in the room, and the traders
were bearish almost to a man, SO that il
would have been almost miracle had
prices maintained their level.
The commission houses welcomed the
reaction, which they hoped would bring
them business. Most of them had a large
number OF buying orders under the mar
ket, but few OF these were reached, as
apparently d greater decline was antici-
Pated.
What had perhaps more 10 do with the
change in the betting on the election than
anything bearing on the political situation
in the State was that many of the traders
were anxious to place money on Hearst
rs a hedge The decline in the market
made a number Of stocks look like bar
gains. but many traders, fearful of a sur
sen the risk on purchases Of stocks by
taking the Hearst side in the betting
Hedging on Their Deals.
II they lost the former they might make
up their loss in the latter. They had no
such object in betting on Hughes as his
opponent. and so the Hearst end was
'faken by men who intended 10 vote the
other way. When they could not get TO
Z they tried for IL and finally took .
But they bought stocks, and this repre-
scented their real feelings on the political
outlook and on the market
The movement In the stocks of the Mex
lean Railway in the past week has served
20 draw attention to the uneXampled pros
perity prevailing all over Jhe continent OF
North America. Everybody recognized
that conditions in the United States are
aboU< as good as can he desired but as a
re/lnder that this country does not pos
ssss a monopoly OF prosperity in the
Western Hemisphere, the rise in the
stocks of roads operating in the sister re-
public is interesting. That the tip has
been passed on something substantial is
shown by the excellent reports Of earnings
Published by the roads, by the liberal div
idend declaration on Mexican Railway $
second preferred, and by the practical GER
tainty of an enlarged disbursement on the
1iIst preferred stock Of the National Rail-
way.
Canada Also Prosperous.
The prosperity Of Canada is attested 10y
the extraordinary Increase in the earnings
of Canadian Pacific, a road which is repre-
sentative OF the whole country-tle gross
earnings having crossed the Ss,01000 mark
Tor the first time in the month 0f August
and again reaching 1t in September not
withstanding the latter was only thirty
day month.
The increase in gloss Tor September was
in excess OF S1.-9o.03J or about - per cent.
compared with the corresponding month "a
year ago. ard only differed in degree from
every other statement issued by the COM
pany for a long time past.
T. additional evidence of the prosperity
81 homo could be needed, it has just been
furnished ia the report Of the Steel Cor
poratiou. showing an increase OF 1.Cs0.u0
TONS iI she volume of orders now ON hand
as compared with tae total Ut the end Of
the preceding Quarter.
Taking a superficial view of conditions
from Labrador 70 YUcdIau, it might ap-
pear as though Wall street was the only
blue spot in Jne vast territory. but to
suppose that The failure of Wall street
10 fully respond 20 the prosperity pre-
ValiiDg elsewhere is due 10 any degree
%. psssimism In thc financial center oI the
New World would be q great mistake
Conservatism l. Neeessary.
Sentiment here is ell right-cheerIul. but
conservative. The need OF conservatism
IS feit. not because there Is any doubt as
10 tho foundation OF prices on actual
values or as 10 further appreciation Of
values, but because the circulating me-
diam is ia such scaut supply that 10 tie
too mach OF !, Up ia speculation would
anger the commercial activities which are
not az present menoced by anything else
whatever. unless IL be the political irfU-
eHcc aj work iu this State ana which
seems likely To- be stamped ont ON election
daF or the kindred interest En- labor cir
cles.
Always interesting. the annual report
% Great Northern is even more so this
ycd~ than usual. showing "a reduction in
thc tou-miie rate, and in spite OF this. an
increase In the train-milc revenue. The
decrease in the tOu-uilC rate reflected the
reduction made I'm rates on humber and
other classes o. freight ard the gain in
2
freight rate testified 10 the increase in
efficiency which has always kept Mr..
Bill's roads in the very vanguard of
progress.
only in the most speculative quarters
was any disappointment over the earn
iugs OF the Steel Corporation. and the
aston taken by the directors in leaving
The dividend on the common stock uu-
changed. Il thc actual net earnings for
The quarter did not come up 80 cxpecta-
lion. tho reason was cIear-the extreme
heat in July and August had interfcred
with the operations 10 a greater extent
than had been supposed.
No other deduction was possible, in
Jew of the fact that orders in books
showed an enormous increase.
London Buys Mexicans.
London was fairly q large buyer of
Mexican Central. issues. but there was
some proft-taking by local traders. as
was natural in view Of the extent Of the !
rise within the past week Rumors that
negotiations FOR purchase OF control by /
The Mexican government were either con-
ciUded or likely 10 be in the near future. (
found some credeEce but ELECTED no direct /
confirmation.
That public interest in the market is
not entirely dead. was shown by the fact /
1nat man from uD tho State came into a !
large Wall street Office yesterday and
asked II he could 0Den an account with /
S2,5ya. On being told that he could. but /
that he had better wait for few DAYS 4
before beginning any. he said.
I don't want to buy; what I want, is
10 sell short on the break. and then sell /
long on the election. and bet s TO 1 on /
Hughes and make money both ways"