The Washington herald., 1906-11-06
WALL STREET CALM
Market Not Disturbed; Trad
erS Feel Sure of Hughes.
READING STOCK ON BULL SIDE
Little Interest shown in Prospective
Change Of Illinois Central Manage
viii Tend to Increase business and
Revenue Thus VIII Not he LesSened.

New York Nov 5.-NaH street TOOK Il
for granted to-day that Hughes would be
elected. Tomorrow the voters viii de-
eide Many commission houses have ad-
vised their customers that the election Of
Hughes had been discounted. and that if
Hearst should be elected the market would
suffer a severe setback What. however
viii enter largely into consideration of the
markets future course during the remain
der Of the week viii be the result in other
States and the indication afforded by
those of the possibilities Of the Presiden-
tial campaign two years hence. For the
time being the money situation may be
forced into the Observation-Disclosures
some brokers doubt whether il viii stay
there-and political influences seem likely
20 determine the movement of securities
prices.
A large Western house sold consider
able line of Steel and Union Pacific. but
Tor all stock sold by this firm and for all
stock coming from any source there was
at all times during the day d good market.
Reading Tips Are Frequent.
Usually when a certain speculative
clique is active in Reading. tips on the
stocks are freely distributed, and, as from
the opening to-day there were predictions
that the price would cross 80 before the
end Of the day, it was inferred that this
interest had a good deal to 90 with the
movement.
As a reason for the bullish prediction on
the stock il was rumored that the direct
ors would meet on November p and act
on the dividend, raising the rate on the
common from 4 to 8 per cent a year. This
would put action on the Reading a week
ahead Of the declaration on Lehigh Val
ley and take from the latter q great deal
of the interest now attaching 20 it.
The general expectation, however, Is
that the Reading dividend viii not be de
clared this month. Last year nothing was
done until the December meeting of the
board, and the same course will probably
be followed this year The meeting of
the board this month is not likely 10
transact anything more than routine busi-
ness. for as the dividend viii not be paid
until February l. 1907. there can hardly be
any necessity for declaring Il in the pres
ent month. In the ordinary course the
dividend question should come up on De-
cember 10.
The old rumor OF a separation of the
Reading coal properties from the railroad
was again brought into service. One
broker said it gave him the same kind of
whose sinister expression. notwithstand-
ing his white locks. made one think of the
electric chair should long ago have claim
I'd him The report. he said, might 90
harm and could not do good.
May lie Perfectly Legal.
Perhaps before settling the means by
which Reading may have TO comply with
the law prohibiting railroads from oper-
ating mines and selling coal it would be
we'll to make sure that the present ar
rangement is not in entire conformity
with the law. The Reading Company is a
holding company which controls the Phil
adelphia and Reading Company and the
Reading Coal and Iron Company-separ-
ate COmDanieS-dnd as il autedates the
new rate law and was not formed for the
purpose Of evading any statute, there is
10 certainty that the courts would not
uphold its right 10 retain the stocks al
ready in It's hands and to receive revenues
from its investment in other companies
just as L has done all along.
Bulls on Reading are not merely con-
tending against Il condition where they
strive 10 put the stock 70 new record
prices in the face of earnings which, by
comparison with those Of last year. are
only about stationary. The gross earn
ings Of the railroad and coal companies
Tor the first quarter of the fiscal year
show a falling off Of about 100000 In
gross earnings. The movement in most
railroad stocks have the benefit Of the
other kind of change
Net Earnings show Decline.
In the matter of net, the comparison is
less favorable to the bulls on Reading
stock. the falling off in this item being
as much as S5S5,37l. or L "a Der cent
The decline in net may, OF course. be
attributed 20 special causes, ike the
charging OF betterments 10 income. but
the fact that gross earnings are not
maintained cannot So easily be explained
away. The increase in the wages of the
employees may be Offset by a reduction
IN other items of operating expense. but
fer the present viii not add a great deal
TO gross earnings.
At first sight IT may appear as if the
additional payments involved in the in
Creases OF wages granted by. some of the
railroads can be set down as so much
clear loss 10 the company Pennsylvania
has shown, however, that TO treat il so
IS mistake. In every instance in the
past where important increases IN wages
were granted by larger railroad systems
the resultant increase in the prosperity
OF the territory involved added a great
deal to the business of the roads.
Freer circulation of money has created
new business and stimulated enterprise
and while the effect was not felt at once.
Il almost invariably became quite no
ticeable later. Unfortunately the effect
on increased wages In business Of the
railroad making the increase is not sus-
ceptlble Of accurate measurement. bat
that il amounts TO a great deal fin the way
of new business and in obtaining faith
ful service from employees is testified to
by the heads of several large roads.
President Mather, OF the Rock Island.
does not seem to be alarmed over the
drift Of population from the farm to the
towE. A dispatch received from Chicago
by one OF the news agencies quoted him
as follows:
There is an amazing demand FOR
farms In the Southwest On one day re
Gently q homeseekers' excursion on the
Rock Island carried over 1900 people
Copper Shows Advance.
All the news on Amalgamated Copper
was bullish In London spot copper was
quoted at an advance of e1 ton over
last weeks closing figures. and Rio TInto
shares were active and strong.
At home the trade situation was entire
y favorable TO producers of metal. and
the likelihood Of higher prices was con-
ceded in well-informed circles. AS for
Amaigamatcd stock, close observers on
the floor said the floating supply was
small and that the advance made during
the day was almost entirely the result Of
2 legitimate reason being conspicuOusiy
absent The tendency or speculation to
shift into this stock from the mining is
sues on the curb was more pronounced
than at any other time recently.