The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-09
GOSSIP or VAIL STREET.

hNAANANt WV VI wv
pOtcrsd out after affordinS some speculative
clique an opportunity 10 scalp q very moderate
pront. The large interests did rot want
activity, and probably would not have per.
mItted II. The traders and spectators
conld not make anything out OF inactivity.
and a. very little stock came out they found
little Encouragement to work for q decline.
What they could do was to engineer special
movements In individual stocks TO the &C.
compartment OF rumors OF various kinds
and this they did with some profit. At the
end the market appeared to DO sinking into
a rut, With nothing In sight which could be
counted upon to pull II out again.
Since announcement was made Of the ore
deal there has been q steady stream OF sell
ing orders In Steel common. which has held
the price down to about the level touched
on Friday afternoon before the of1cIal states
ment OF the terms was made public. The
stock coming on the market appears 70 be
supplied by speculative interests and In
readily taken without affecting the price 20
the extent Of more than a fraction Of q point.
Where IL goes L. not easy to trace, but
IL Is evident that when 10 much can be sold
without causing Iany apprecla bic recession
In the price there must be q demand from
strong interests. II these disclosed their
identity IL might be argued that the pur-
pose was to check a decline, but as on tho
other hand the buying Ia executed 30 as to
appear Of very Indifferent quality Il IL q fair
surmise that those who are taking the stock
have no other object than to get as much
as they can without bidding for IL. Even
! q moderately large trader can succeed In
shading the price II he wants to, but those
who have tried to figure out what becomes
OF stock sold are not disposed TO sell until
they can solve the mystery OF the source Of
the buying.
The sharp ADVANCE in General Electric was
made to the accompaniment OF a report that
an allotment Of new stock at par would soon
be offered TO stockholders. The allotment
It was said would be 20 per cent. OF present
holdin gs, which at the current price Of the
stock would give the rights a value equal to q
dividend OF about Is per cent. II such an
allotment Is to be made it will first be neces-
sary TO obtain consent Of the stockholders
TO an increase In the authorized capitaliza-
ton OF the company. as the present limit OF
stock In 900, 600. 900. OF which $50. $780, 90 is
outstanding, so that the unissued balance
would not quite suf1ce to give the privilege
OF subscribing for even 10 per cent. Of present
holdings. A 20 per cent. allotment would
call for so. s7l, 200 additional stock and would
brin 9 the outstanding amount up to Sos. 227. 900.
The General Electric Company has been
making great progrees and probably will
need new money to provide for further en-
largement OF its facilities.
Smelters. too. according TO rumOr is to
get rights on a lew issue Of stock at par.
In some quarters IL was believed that the
rise in Shelters was as much designed for
the purpose OF helping the market in ANAL
gamated Copper as for anything else. The
large interests do not seem to have heartily
Cooperated with the upward movement In
the latter stock. although apparently doing
little to discourage il. Their position at the
moment appears TO be a waiting one-wait-
ing for the dividend declaration on October IS.
which. some OF the bulls say. will put the stock
on an 8 per cent. basis. but which many be-
lieve will make no change from the present
rate. 1t IL perhaps significant that the
greatest bulls on Copper at present were
the greatest bulls on Shelters just before
that company issued Its annual report. which
sent the price OF the stock down rapidly, 10
the deep lisa appointment OF quite a large
circle OF speculative traders. The proba-
bility is that advantage was then taken OF
cheerful anticipatlons regarding the Shelters
report to sell stock and II may be that the
same people are now taking advantage OF
the widespread expectation of an increase
In the Copper dividend for Q similar purpose,
The advance IN the price of the metal
figured in the rise in Amalgamated Copper
stock and one broker. who Ia said to have
received assurances that the dividend will
not be increased this month, said that from
the action Of the stock he Ia prepared to
hear Of something tavorable-a new ore
strike or anything OF that character to
Offset disa ppOintment over the dividend.
The latest rumor is that a deal OF some kind
nature not mentioned-is pend ing between
Amalgamsted. Unite Ell and Butte Coalition.
Apparently the discoveries OF new veins
have gone from the region OF butte Till to
other districts. They are still active, but
in another Aeld. and they keep Wall Street
fully informed about their new finds. IL is
an established fact that the reports never
lose anything in the transmission.
Many brokers spoke OF the rise in Erie
as significant, but what its special significance
was none Of them seemed to know. They
would like to see the stock move-that was
made plain by the tenor Of their remarks
because little money suflces to carry 1t and
il il about as meritoriOis a. anything In lie
class. As a rule Erie ia popular with the
traders on account Of its broad market, but
its action yesterday indicated that the larger
interests we're not inclined TO encourage an
active campaign just at present.
Conservative interests in the Rock Island
company say OF the movement in the stock
only this: that a buyer at these prices who
nuts even the common away will make a
handsome profit within the next few years
The position Of the stock Ia compared with
that OF Southern Pacific a few years ago and
IL Is predicted that after the property has
been built up dividends can be paid and main
tanned permanently. This IL. OF course. a
long look into the future. hut there Ia reason
10 believe that some we'll informed interests
have become so much Impressed with the
prospect that they have recently bought q
good deal OF the stock for permanent in
vestment.
Reading from the tape 1t looked as II Chesa
peake and Ohio directors might increase tbs
dividend on the stock at their meeting to-day
although the weight Of opinion in well In
formed quarters seems to be against IL. The
road is doing we'll in the matter Of earnings
hut needs money TO carry on betterments
necessary for the accommodation OF III
growing business.
In anticipation Of a very favorable showinG
In the annual report which will be published
in A few lays Union Pacific moved up sharply
in the fret hour and with ltful bursts OF ac-
tiyity maintained fair strength throughout
the day. One rumor had II that the report
would show earnings Of II per cent. repre-
sentinR a profit Of ~ per cent. from opera
ton and q per cent. from investments. This
would OF course be considerably better thar