The sun., 1906-02-25
GOSSIP or WALL STREET.

strenRtn OF Union racine was as prominent
feature OF yesterdays market As II had be.
come at the close of business on Friday.
The denial OF the rumors regarding tho
cutting Of melon at an early date induced
those who had expressed the opinion that
tho strength of this stock was designed
merely to facilitate selling Of other stocks
to reterate this theory with increased ve.
hemence and effect.
II was contended that there had been
tardy recognition OF Union Pacincs merits
and that for this reason the stock had be-
come popular short sale. On the declara-
tion OF the dividend II was asserted some
pretty large lir-es OF short stock had been
put out until tha technical position became
engineered without difficulty 50 long as It
did not exceed the limits at which the very
large holders might be tempted to part with
some OF their holdings. That these would
DO 20 around current prices was regarded a.
unlikely since intrinsicslly Union Pacific
mad merit to Justify Q considerably higher
level under favorable conditions as to money
and other temporary rnarkes influences.
IN the belief that the siren 9Th In the stock
was the result Of man ipulstion. based on its
technical position. for effect on the general
list rather than OF a leg itinate demand. traders
as . rule took a bearish attitude. and It was
standing some coverin In the first half hour
the net result Of the day. 3 business was to
add to the size OF the short interest.
While II might not have been possible to sell
much stock under cover OF the siren 9Th In
Union Pacific there could be little question
that this factor served to counteract the effect
OF the sen sational decline In Consolidated
Gas. which under ordinary circumstances
might b We bee" expected to unset le Q
whole market. The price OF Gas dropped to the
lowest poin touch ed sin ce 1907 neither the gas
war nor the panic Of 1901 havin been sufficient
to put 1t down to so low a level. The close
was at the lowest point Of the day. There
was a pretty widespread belief that tenn
porarily at least the dividend might be reduced
to per cent should the company be COM
PEELED to obey the order Of the Gas Com
mission reducing the price Of gas to so cents.
but In many Quarters 1t was asserted that
even should such a reduction be made II
would soon be found that the increase in
business following served to counteract the
decline In the margin of profit on each foot
Of gas sold and that this wouli permit restora-
tion at no far distant period Of the rate Of
dividend at present paid
In considering tn. dividend outlook for
Consolidated Gas stress was laid on the fact
that since the reduction in the price Of elec-
trio current 'he demand bo'h for power and
lighting has so greatly increased that this
branch of the Consolidated Gas Company
business Il now more profitable than ever
before. But notwithstanding this fact. the
New York Edison Company. all OF whose stock
IL cwned by Consolidated Gas. has not yet
begun to turn over any part OF It's profits to
the parent company. go that there Is here
source Of revenue which. II drawn upon.
might easily make up any imnairment OF
c,ir rr,l, m IN n IN Rfnck from tho A.
duction OF 20 cents a thousand feet. When
the dividend on Consol' dated Gas stock was
reduced from 10 per cent. to per cent. last
year the change anticipated reduction In the
price Of gas although the expectation at that
time was tta' the reduction would be made
gradually. That { cut in the div idend was
not a consequence Of the reduction In the
charges for electric current seems clear
enough since this branch of the industry had
never contributed anything to the dividend
surplus In view OF these circumstances.
It was contended that Consoli 'ated Gas had
elready CHANGED it's dividend to meet a re-
duction in prices and that the only question
was whether a reduction made In anticipation
OF low erihs Of charges at the rate OF cents
n year until the price had reached rs or so
cents would suffice In case dro p to 90 cents
at once should be enforced.
IL was rumored but denied that Fl. H.
Rogers was in Ill health. This class Of rumor
Is of frequent recurrence-only varying as
TO the individual referred to-when the
traders are at loss for an argument to de-
press prices. The fact that Mr. Rogers was
probably the most prominent fnancier left
in town was perhaps the only reason why
his name should have been selected in this
instance.
The rumor regarding the health OF X. H.
N for n hon in
Amatgamated Copper stock in the first hour
but the early heaviness gave way to fair
display OF strength when 1t became known
that there was no ground for the current
story. An effort was made to create the
impression that on account OF the alleged
III health of Mr.. Rogers the scheme to har-
monze the leading copper producers would
meet with serious check.
An operator who has for years ma de
specialty of Wabash got credit for the move
ment In Wabash issues but beyond the rumor
that the Gould interests. were In sympathy
with the rise there was nothing else TO ac-
count for the strength and activity. Other
Gould stocks sympathized moderately and
IL was intimated that as these had not par
ticipeted to any great extent In the last up
ward movement In the market an effort might
now be made 70 bring them into line.
Was a colorless document. As market
factor 1t had no influence.
PEOPLES Gas was affected by the break in
Consolidated Gas. although no one seemed to
know why this should be SO in view OF the fact
that in Chicago the price OF gas had already
been practically fixed at IS cents, the company
willingly agreeing to this price.
One, Of the most remarkable features of
the market was the inactivity In number OF
stocks which generally contribute good
proportion of the business. There was not.
for i,stance. a single share of Erie in the first
half hour. and the total for the whole session
in this generally active stock WAS only 1900
shares. Rock Island and Chicago Great
western. only 'contris uted 100 shares each.
while Chesapeake and Ohio, Louisville and
Nashville, Norfolk and Western, Ont ario
and western and number OF other ea ually
prominent issues fell under the 1000 share
mark.
speaking OF the low prices at which rights
on some stocks have recently sold one trader
said that where stockholders expected
melons. they got only small potatoes"