The Washington herald., 1906-11-03

New York. Nov. 2-Short covering in
he forenoon, proht-taking toward the
elose-these were the features OF to-day S
market The short covering was caused
oy the more hopeful political outlook, the
subsequent profit-taking by the fact that
here is still something of q political sit
,ation left
Those -he see good profits ia the long
side between now and November are
not likely Ia protect themselves. With the
nigh interest rates traders do not care TO
carry stocks over election II they think
ne result has already been pretty well
discounted. The heavy loss Of cash sus-
aimed by the banks. Indicating an IN
favorable bank statement, was another
reason why many holders Of stocks were
not disposed to hold on very long,
4 broker who has reputation for his
ability to size up the Importance of mat
1ers political expressed himself as fol
ows regarding the situation in this
state: Roosevelt and Root have saved
he country; Croker has saved the city"
Cause of Higher Dividends.
Necessity" said a cynical broker. '1s
he mother of increased dividends" Par
ocular necessity alluded to was on the
part OF banking interests to make a
market for Pennsylvania convertible
bonds and on the part OF the railroad
% get the bonds out Of the way prepare
-0Ty 10 the arrangement OF a comprehen-
sive financial plan next spring
TheOrizing as 10 the probable market
movements OF Pennsylvania as d : per
cent stock has become a serious business
with q good many brokers. The consensus
s that the stock viii be raised 20 2
higher level Ultimately. and this View Is
Entertained even where the action Of the
directors in increasing the dividend does
not meet with approval
K is supposed that as @ great proper
lion os the convertible bonds Of 1915 are
still in first hands the banking interests
which hold them are likely 10 give their
support to movement TO advance the
stock and then when the market IS made
sufficiently strong ana active, they w3n
ell the stock rather than the bonds
aking q position technically on the short
side. but always protected by their abil-
~ to convert the bonds so as 20 retire
contracts Tor delivery Of the stock. The
bonds Of 1915. which IL is desired To get
id of, are convertible aJ any time in
stead OF merely on interest days. as is
he case in the other issue, and this makes
he operation ell the easier. The suppOsi-
lon that this course viii be followed is
-ounded on the fact that the public can
le Induced 70 speculate more freely iU
tOcks than in bonds, no matter what
,peCiaI features may be attached 70 the
after
Employees May Get Restless.
Anxiety as 10 the effect ola the railroad
4nployes Of the country is not the least
lC the feelings engendered by the IN
crease in the Pennsylvania dividend
Bull tips or Readinh began 10 circulate
rom the time the market opened. and
brokers' who have a PartiaIity for the
stock advised their customers that there
ras an appearance Of good buying in Il.
Suck talk does not mean very much. as
what is diagnosed as good buying IN
Reading is generally Of the most specu-
ative kind, coming from operators vino
work on one side or the other, just as the
general market conditions or the techni-
-al position of the stock itself favor.
With transactions out Of al proportion
% the volume OF floating stock. Reading
.an be moved quickly. and the spectacu-
ar movements always attract the amount
II following necessary to contribute the
stock bought or sold is small. the profits
1n this must be large TO pay the cost Of
he whole operation
According to a report from Philadelphia
he dividend on Lehigh valley viii be in
1roased from I to g per cent, and the
tory was used as a bull argument on
III the hard coal operators Reading. it
vas said. might follow suit at the end Of
he year, while in tne case of Delaware
md Hudson the dividends TO be paid in
g37 might be at the rate Of per cent .
instead of : per cent, which has been in
fleet for some years past.
Strength in Copper.
The most tangible reason for the
ltrength in Amalgamated Copper was the .
epOTt that Calumet and HecIa was on
-ho point Of concluding negotiations for
ne sale Of about 20009,000 pounds Of
.lecColytic copper at 21ia cents a pound.
The bearing. Of course. is only indirect .
m Amalgamated, showing that tho trade
conditions continue to gain in Strength,
put il was sufficient TO serve as a remind
p Of the increase in dividend announced a
couple % weeks ago has not brought
any adequate response in the market.
There were rumoTs that the Standard
satisGsd themselves about the election
outlook had sent their own heavy con
ubuuOns into the Republican cam
Daign; but all these were Of the irTespon-
sible kind which generally follow mar
,Eet movement Of note and in this in
stance they were as freely applied to
5rooklyn Rapid Transit as 90 Amalga-
mated Copper. because Of the activity of
certain brokers IN both stocks.
Rumor said the rise in the Hill stocks
vas based on the prospect of rights in
ne near future. 1t was not The reason
OF It was found IN the annual report OF {
Great Northern. so far as the stock of
hat road was concerned, for the more
he statement was studied. the more evi-
dent IL became thar Mr.. Kill has created
an extraordinary machine for the COM
llete and efficient transportation of
-reight.
For the present the question Of the prob
ability OF rights of both stocks might be
answered by the hacSneyed expression,
Not yet, but soon i
steel Report Favorable.
in view Of the dlsap apDointment which
raiders expressed over the steel state
nent, the following extract from the No
-eElber letter Of a wen-known house is in .
.eresting:
"On Tuesday last the steel company
made the most favorable quarterly report
2. its history. It is true that earnings Of
he previous quarter were larger than for
he quarter ended September 80, but the
ic nifcant feature of the present report is
ne enormous total of untitled orders on
iand. aggTegadng nearly S,09000G tons, be- J
cause this item is generally assumed to be
a fairly safe guide 10 the future business
sf the company
During the nine months ended Septeu-