The Washington herald., 1906-12-02
WALL STREET NOTES
of Money Expected
to Influence Congress.
IS DULL ALL DAY
Revival of RumOrs Regarding AtchI-
son, but Nothing Definite Is Given
Out-Cheaapeake and Ohio shows
strength-HiII Denies Having Pur-
chased the Katy-NOtes and Gossip.

chased the Katy-NOtes and Gossip. |
New York, Dec. LIN some conserva-
tive quarters the view is expressed that
the tightness In money is not an unmixed
evil at this time. since it serves as u
strong object lesson to Congress on the
hcondition Of currency, which il is be-
lieved the President will urge in his mes
sage. The reduction in the surplus re-
serve, which is again down TO near the
vanishing point, discourages expectation
that the banks will be inclined to lend
freely, and as it has been frequently
shown that when the item gets as lew
as at present it is apt to disappear alto
gether before an Improvement sets in,
there is strong feeling that the condi-
! tions Of the associated banks will become
worse before 1t becomes better
| When the surplus disappears and the
banks are forced to retire from the money
market the necessities OF borrowers at
/ tract funds from every quarter. and the
! situation reacts itself. A good many Of
/ the traders were away yesterday, and
/ most Of those In attendance were disin-
Clined to commit themselves far on either
/ side of the market. their apprehensions
/ regarding the Presidents message pre-
venting them from buying. while the un-
/ mistakable strength of the market dis
couraged them from making short sales
/ OF public interest there was practically
! none, and as the professionals hardly
| know what 10 do a very uninteresting
market was the natural result. AS usual
/ in Suph qircuTugfau ucag fbara v-nra move.
ments In some specialtes, ike National
Biscuit and Virginia Coal and Coke, both
/ Of which made new high records, but no
1 following OF consequence was obtained
/ for either. There was feeling that In
the early part of the coming week, at
least, money would rule strong, but the
| weakness in exchange gave some slight
hope of a possible resumption Of the
| gOld-impOTt movement.
While there was a revival OF the rumors
about buying for contract in connection
with the continued advance in Atchi-
son the opinion expressed in conserva-
tive quarters was that there was moth
Ing mysterious in the rise. as the reason
for it was easily found in the earnings
of the road. Keeping in mind the re-
markable showing in the October state
ment. published a few days ago, it was
clearly a case OF cause and effect and
the only reason why the latter did not
follow the former was that the street
was more concerned at the time about
the money situation and the meeting of
Congress than about considerations OF In
tTinsic value.
Next to the movement in Atchison the
rise in Chesapeake and Ohio was the
most notable feature Of the days trad
ing. For the buying Of Chesapeake and
Ohio no very definite reason was given.
but It is worthy of note that the stock
has been selling in the past two or three
weeks below the average price Of the
year, which suggests that with the pres
ent upward movement that on the talk
OF an increase in the dividend rate early
in the fall insiders took profits, but sub
sequently bought back on the decline.
which followed the announcement of the
declaration of the usual > per cent yearly
rate. The annual report showed that in
the year ended June 30 last the company
earned fully per cent on its stock, and
as earning power rather than what the
directors at any one time may feel jus
titled in distributing TO stockholders in
the tremendous value IN the long run
many conservatives interest class Chesa-
peake and Ohio among the issues that are
not dear at prevailing prices.
As Chesapeake and Ohio possesses
earning power far above what the direc-
tors have chosen to distribute in divi-
dends, the inference is that the kind of
Improvements to the property is respon-
sible for the policy Of conservatism TO
what is In force regarding the size of
the disbursements to the stockholders
but there IS a more speedy way OF pro-
viding the means for improving the prop
erty than by devoting earnings to that
purpose. The money situation, however.
has not been favorable TO the raising OF
new capital but in view of the growth
OF business and the necessity of ade-
quately providing for it, the company can
hardly afford 10 temporize, so the proba-
bility is that plan TO finance the com
pany's Improvement projects VIII be per
fected before long. The announcement Of
such a plan would be regarded as tanta-
mount to an assurance that stockholders
would in the future be given an enlarged
participation IN the company's prosperity.
and not having to wait until next fall for
another dividend, one would be declared
IN the spring. marking the beginning Of
seml-annual distributions
Brokers who have argued that the mac
ton of Amalgamated Copper in the past
few weeks has been due to a desire on
the part of Standard Oil interests to dis
courage speculation in mining stocks on
the curb now say they can see evidence
Of a removal OF the restraint put upon
, the stock Of the big companies. since a
damper has been put upon the market for
the smaller ones.
II am firmly convinced" said an active
} trader. that the poor Standard Oil Com
pany deserves the sympathy of every pa
triotic American in the United States to
} uphold one branch of the country's trade
In the markets of the world. 1t is a pity
we did not know long ago that the com
pany was the guardian angel Of our in
terests. The disinterested statements now
emanating from 26 Broadway show how 4
prophet may be without honor in his own
country"
James J. Hill, in denying that he has
bought control of Missouri, Kansas and
Texas, is reported to have said that he
would rather build a road than buy one
Yet Mr.. Hill bought the Burlington, and
has always been highly pleased with his
purchase. At various times and in differ
ent places within the past few months
Mr.. Hill has asserted that the need OF the
railroads is not a shortage Of cars and
equipment, but of more tracks and termi-
nails, and that the great difficulty is to
get the latter. But after all. there is