The Washington herald., 1906-10-16
WALL STREET NOTES.

New York. Oct. 15.-Next to the cor
pcration strength shown by the general
market, the most noteworthy feature Of
the trading to-day was that a great part
OF the selling seemed TO come from West
ern houses. The general tendency was
20 regard this selling as of no particular
Importance, although it was conceded
that the houses which were among the
most conspicuous on that side are some
times used to conceal the operations OF
very influential interests. Few traders
could see any reason to look for an inn
portant decline in prices, although many
expected the reaction TO go somewhat
further. and perhaps the greater ele-
ment of strength in the market at the
present moment is that large proper
ton of the trading element = waiting for
an opportunity to buy. The fact that
many are anxious to buy on decline
often furnishes.the reason why one does
not occur.
The sharp trader who tries to figure out
whether the buying of stocks at any
period for the account Of large interests
or otherwise often succeeds is some
times deceived by the tactics used TO dis
guise the most important class OF buy
ing. It is a recognized fact that the stock
market may be strongest when 1t looks
weakest
How much connection there is between
the action Of the market and the slow
ness with which subscriptions are coming
into the Republican campaign Is one of
the matters which the traders are trying
20 determine, but all they have so far
been able to clearly establish is that at
times in the past. when Wall Street
counted an election as sure thing, and
for that reason did little in the way OF
supplying the funds. warning not to be
overeonfdent was given in the way Of a
a reaction in prices or a contraction in
business.
so many people have been expecting
a political scare in the market" said a
welI-known broker, that it viii be ex-
cellent tactics to give an appearance Of
one, even II It has no substantial foun-
dalton, as traders who have been await
ing a profit from short selling might
thereby be induced to indulge their pro-
penssty. IF il should afterward appear
that there was no reason for the scare,
the market. strengthened by the short In
terest and the new buying induced by
the lower level Of prices, might Teboand
with very considerable degree OF elias
ticity.'
London bought quite a little Steel and
it was perhaps significant that the GER
tain houses which had been heavy buy
ers Of the common just before the an
nouncement Of the ore deal took a good
deal of stock on the decline. some appar-
emily having orders TO buy at every fTac-
l.
were inclined 10 recommend the prefer
red stock for its investment qualities and
the common for speculative opportuni-
ties. There was. OF course. no eontradic-
ton in terms In the statement made as
10 the relative merits Of the two stocks,
the preferred, with the certainty OF Z
per cent dividend rate. being recommend
ed to those who wanted a good invest
ment with a fixed yield, while the other,
with its prospects of market appreciation
and the probability Of an Increase IN its
dividend in 1907. was recommended 10
clients who we're willing to take reason
able chances with their money.
Among speclalties. Pittsburg Coal pre-
fered which advanced 1ss points on Sat
urday. crossed 50 for the first time in a
long while on a few transactions, but
WIKI very utltS Stuck TOT SAFE lEt l4ct
was attributed TO improvement in the
company's business. the tremendous &C
tivity ia the general Industry OF the cOun-
try having created an Increased demand
for coal
Union Pacific found strong support
around IS7, and it looked as il action
was IN progress. Only a week ago the
stock scored a considerable rise in ex-
pectati0n of the early publication Of the
annual report, and IS this document has
vet 10 be made public, and as the date
when X viii be given out is nearer now
than Il was then. selling at this price
cannot be based on the delay In max
ing the figures public. Neither can Il
be based on tho talk about a contest
over the land grants. for that has very
slight foundation. and II can hardly be
based on the investigation OF the roads
relations 70 the Union Coal Company, as
the latter concern is so small 2 factor
In Union Pacific affairs that anything
it might be forced 10 do TO comply with
recommendations of the Interstate Com
merce Commission could not have any
appreciate effect on the stock. The
coal company is capitalized at 100000
bonds and an equal amount In stock. but
the latter pays no dividends Altogether
il seems probable that the real cause
Of the decline IN Union Pacific was ma
nipulatiOn intended to afford some in
tercsts an opportunity to buy a 10 per
cent stock on d basis TO yield more than
IA per cent in the investment.
All that large interests in Reading say
about the stock at the present price, is
that there is value for every dollar rep
resented in the quotations. The fact that
Tennessee Coal and Iron and Republic
Iron and Steel have purchased the Potter
tract OF ere land at a price equivalent
to II cents or whereabouts in the ground,
has no bearing whatever on the value Of
the ores purchased by the steel corpora
ton from the Hill interests. The Potte.
ore contains a low percentage Of iron,
hardly justifying the cost OF extraction.
Another sharp raise was recorded in
the quotations for Copper in the London
market Il the local market also. a rise
was recorded in quotations, and conviction
was carried 10 the minds OF the few
dOubters that the trade position is very
strong. Under the circumstances the &C
ton of Amalgamated Copper stock was
regarded as very mysterious the more so
as ~ speculative quarters it was said
that the dividend would be increased at
the meeting of directors this week. Those
who made this prediction pointed out that
in sons instances in the past the stock
acted in u way TO create n wrong i'm
preston as to the probable action of the
board. and the necessity on the part IF
the trading element 20 change sides
quickly gave the kind of impulse which
the insiders wanted. Whatever may be
the action OF the dividend the theory
that the large interests are not inclined
to help the specializing in the minor