The Washington herald., 1906-11-04

pected 20 Raise Its Dividend Rate.
New York, Nov. S-Out of d total of
100 shares dealt in to-day. Reading
contributed $4,000 and Pennsylvania 55,-
90 shares, t ese two making more than
half of the day s transactions. When al
lowance is made for this Il viii be seen
that the volume Of business in the mar
ket as d whole was very small.
In no other stock did the transactions
sUtal $4,000 shares. Union Pacific taking
next place. with $500 shares, while
Amalgamated Copper was the only other
issue which crossed the 2o,00 mark.
Many of the traders were away, and the
outside public showed no disposition 10
take sides, preferring to wait until after
election.
The only effect OF the bank statement.
which was not IS bad as had been ex-
pected. was 70 Increase professional oper-
atoms to some extent, but TIE traders
who had prcfits on the long side were in
clined 20 shave them at the close.
There were Two distinct moves in Read
ing-a decline and a recovery. The first
was for the purpose Of inducing short
selling. the other was a squeeze OF the
snort interest There were rumors, but
these were merely incidental, for the talk
u an increase in the dividend rate 10 10
Der cent. or Of an extra distribution in
1ome torm equal 70 about 10 per cent on
the stock, had practically nothing 10 do
with the rise in the second hour.
Speculative Clique Sells.
The preceding breaa was largely the
result OF selling by trader, bat
whether he vas acting for another trader
of larger calibeT or Tor one Of the large
commission houses opinions differed wide
IS, and subsequent developments made
it rot improbable that the stoch came
from a speculative clique whose object
was 10 encourage the growth Of short
interest as the most effective means Of
raising the price higher.
Lshigh Valley, whose dividend VIII
probably be raised to 8 per cent at the
end OF this month. is net listed on the
New York Stock Exchange, and specu-
'stive interests which want 20 use
.he bullish force o. the prospective
Increase for market effect apply II
10 Resding. arguing that the points OF
so numerous that from the dividend ac-
ZION on the one the dividend action on
tAc other may reasonably be inferred
Pool in Reading Formed.
The old pool was said to have resumed
aperatious in Reading. but this was prob
bly q Eiscoucepti0u- II vas true. how
ever. Thai operators Who had frequently
formed pools in Jhc stock had formed
another and begun operations over again.
These operators never stick very long,
n-it vaen they arc at worl, there Is gem
,.-Ty plenty oi business. They are gen
.-o-, dispensers nf tips. and as ii costs
-I more 10 predict movement 90 Ia
f-aU % 17a they usually choose the
higher iiEGr1. Ierilaps some dav they
EEE G8i ID short interest big enough
Hud ~-ulHn-n C~r-Ea I'D give tHcm inc
opportunity to make good
What Hr-le selling Of Brooklyn Rapid
Transit resulted from the remarks OF AIR
IGahes regarding his attentions % tEe
u7muJgr i elected governor did not suf-
'.-a tC mold Ihc stock down. and m uhC
e.psa thg cGviy loss was not only re-
covered. G-t &. fractional gain was shown
.r Hte dag.
-A broker l0 ,oU-a with the ea-r.Hy-s
.
NOT in politics. Jts management is doing
81 s. can -o give good recommendation
H lis patrons. ana 70 Air Hughes can
sHpw ."F greater facilities can bc given
-t tho bridge or elsewhere The company
-"iii zsr.y make tb- chlHge. Brooklyn
..--r.. Transit wants only q square deal.
n.- IT'S management is roo progressive 20
-Hore intelligent suggestions OF IutelIi-
sent criticism
PeHHsy "a Ragrc wages.
Bulls oa Pennsylvania said The an
Hounceaent tiat the company intended TO
--aaJ voluntary increase IL WAGES 10
-,s employees was the best kind OF an an
sv-r 90 those who Rad argued that the
putting OF the stock on a : per cent divI-
dcnd basis was hardly JusuneL Cons.d-
Grafton was not only given 10 cause but
90 consequences. and il was asserted tnat
the utmost confidence gas felt in Official
slorters tha5 the new rate could ba main
tsiaed pending the completion of work
"a PItJsDurg, and when this began tn
bring IN revenue a higher basis could be
adopted
Ii the stock mad not made au ADEQUATE
response 90 The acti-n taken ali the bctte-
recse interests COnteuded. for th,. force
was reserved for a time when clear Of
political consideration and the obstacles
imposed by comparatively light money
market. Pennsylvania might be used as
thc leadr- OF no small proportions. IN
raising the dividend TO Z per cent. the
Pennsylvania directors at once commit
he company % the distribution OF an
additional S305J.000 a year on the outstand-
.ns stock.
further effect however. viii be 10
bring IN the so 10000 convertible s1-2 Der
cent bonds o. 1872 for conversion. and
after the stock has crossed loo. the StG1,-
100000 cOnvertioles of 1915
VIII Mean s3,5OO,OOO siore.
Conversion Of the first-narled al JAG
VIII involve the payment Of practically
$l,0oo,0J0 q year in dividend on the new
stock, against the s7O5Ooo now paid in in
1erest on bonds. Conversion CT the 1915
issue viii mean the substitution Of Si-
f5590 I'm dividends Of S2500.000 q year in
interests. Conversion OF both issues will
therefore mean an additional outlay OF
about Sl,i65,000 a year
The road viii thus incur an immediate
Increase OF $3.5oa0c0 year In dividends
On the outstanding stock. a prospective
increase OF Si.f65.Gg0 on account of the
conversion OF bonds. and q large amount
on account Of increased wages.
So far the Plan OF Pennsylvania 10 in
crease wages ere very tentative. and il is
believed that the report OF Il horizontal
increase of 10 per cent for all classes OF
employees is Incorrect When an increase
u 10 per cent On all salaries of less than
s-i0 q month vas made in 1862 the amodnt