The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-16
GOSSIP or WALL STREET,

osity than 70 attract business. The Nrofes-
siQnals Joined In the special movements.
but the rank and hle OF the customers Of
commission houses looked on with wonder.
aRhast at the boldness Of what many Of
them regarded as manipulation with a reck-
less disregard Of consequences. They, heard
rumors in endless variety. some Of which
would have suficed. II, confirmed, TO clear the
whole atmospnera from the clouds OF doubt
and uncertainty. and to send practically
the whole clientele OF brokers' onhces In a
wild scramble to get In their buying orders.
On whether these reports. In the next Few
days, will receive q greater appearance OF
probability or improbabiiity the immediate
future Of the market must largely depend.
Reading and Baltimore and Ohio. which
were the subjects OF most OF the gossip. fur-
nished between them nearly half Of the days
total transactions.
One report which stood ont prominently
from the mass OF rumor about Reading and
Baltimore and Ohio on account OF the re-
sDectful consideration with which II was
received In high quarters vas that the Hnrri-
man interests had goJ control Of both proper
ties. Bankers who two weeks ago would
have taken little pains to conceal their in
credulity regarding such a story now become
thoughtful when It is mentioned. or express
at least hkif belief in IL by some such rejoinder
as Il shouldn't wonder" Indeed, seine
interests unaccustomed to mAStng rash
statements uneduivocally assert their enCire
belief in the report. although At a loss to
furnish a probable or plausible motive Tor
the alleged acquisitions. Neither Baltimore
! and Ohio nor Reading joins on to any OF the
Hartman lines, unless st. Paul or Illinois
Central ia included In this category, so that
II It IL intended to form n through system
from ocean to ocean the middle link seems
to be still missing.
Another rumor about Reading and B1lti-
more and Ohio. which found perhaps a. much
Credence, was that the latter road would
lease the former, guaranteeing 7 and possibly
! 3 per cent. a year on the common stock. The
two stories were not inconsistent. The
action Of both stocks was significant. There
were stories OF big stop orders In Reading
At $50. but when that price was reached the
expected stops did not materialiZe; yet the
advance continued. II was then said the
stops had been raised TO Isl. but even at that
figure or IS2 enough were not uncovered to
account for the rise. and close observers
were forced 10 admit that there wss probably
q, good deal more than mere manipulation
TO account for the days movement.
When brokers begin to talk Of q guarantee
of 7 or 8 percent. on Reading common It To-
evident that they have begun to appreciate
the great earning power Of the road. and TO
realize that those who put the price up to Its
present Ievel-had sound reasons for doing so.
Under the circumstances the talk OF A'corAer
has no terrors.
The rise in Distillers was very spirited and
the stock about fulfilled the predictions made
nv its friends early in the year, when the bill
to take the duty OF denatured alcohol was
before Congress. Even at that time the pool
had the market 80 absolutely In its control
that it could have marked the price up to
.Irost any level.
-
IL IL sara that plans are uhuer way :, ~
granting OF important Ilsh.s u 9Tun'"nrn
rent report, the outstanding preferred stock
~in be redeemed at IFS. plus the dividend.
The provision by which the company now
has the right to such redemption viii then
be cancelled and the so0. 900. 900 preferred
4 now in she treasury will be sold without
any conditions as to retirement on a OASIS
to yield valuable rights TO the hoiders OF
the common. The alleged intention 70 re-
deem the present outstanding preferred De-
fore cancellinR the provision Tor retirement
At IFS is given as the reason why the prospect
for cancellation Of the clause In question
, has not caused asnarp advance III s'0eS'
showing Is per cent, esrneu on ~.
STOCK oeIore u ~, "a 80
betterments. where onH opuI
- N.~RaaaiAR aNA
Locomotlve maue q ~ a .mc1oisn,
would IN NseI pao o ,,Wi.h s,,antion % ths
inducemenC 70 y 1"o, -, 49, rov
STOCK Inc - 80. ranroaS.
new edulpmehI !" -.nsn,i, .c,sd
have been unusuAny nGa ~ huUtuG
however as IuL'ue' sozS Is.
with the IesuN .nA. 49, 80 ,in,s ~
shown oy thls se'u"s "a
many months
- ho,d.- ~ American Iocomotiv,
INeS - rdv. for him.eIf whether OF
sooox a -.o,or. wsro ;nstjned In placinu tn,
NOV - en-, ha.i.
common o" P' 49,
yell known steel interest credited with
- imnortant part in negotiations concerning
p.I,irsore and Ohio and Reading was also
- 20 have had A good deal to do with the
T;.s in Norfolk and Western. 1t has for q
-. vvbIle been believed that this interest
n,cSsd mo- a large amount OF the last named
stocE early In the year in the confident e1'
nsc,s,ion Of an increase in the dividend rat'
IN the fall. The annual report issued recent,
.howed earnings OF ~ per cent. on the stock
nv almost exactly the rate shown on SoutherI
---on rhich has been placed on