New-York tribune., 1906-07-31
STOCK MARKET OPERATIONS.

In the forenoon the stock market showed uni
form strength on a moderately active volume OF
business which was followed in the afternoon
by irregularity and decided recessions, while at
the close there were more net losses than gains
The check to the upward movement was due
20 the announcement that the Brooklyn Union
Gas Company which is controlled by the in
terests which are the dominant factors in the
Consolidated Gas Company, had passed the
quarterly dividend a reflection Of which
presented in a sharp break in the stock of the
latter company and selling OF the bonds Of the
Brooklyn corporation. This action the Part
Of the Standard Oil people is in line with their
policy of creating sentiment in favor OF a repeal
OF the S0-cent gas law but it hardly appears
probable that the movement will appeal TO the
lawmakers OF the state, for the good reason that
the Consolidated Gas Company cannot show that
its property is practically being confscated as
1t AYERS, or that an S0-cent tariff means falling
off in receipts warrantng the reduction and
passing Of dividends. "Doctored' figures in the
books of the company may snow, when the law
actually becomes operative, a decline il earn
ings. but common sense suggests an Offset to
the reduction in price by increased consumption.
While the law directs a rate Of so cents. the
Consolidated company is still charging and
ceiving the old rate under an order Of the
court, pending a decision on the constitutionality
of the measure. and at present at least. there
will be no possible excuse for the passing of its
dividend, unless the company admits that for a
long time it has been paying dividends not
earned It IS thought probable that at the next
meeting Of the Consolidated directors the divf-
dend which was reduced at the last quarterly
meeting also will be passed. as further object
lesson to consumers and politicians.
Commission houses were not active in the
dealings, either in the morning advance in
the afternoon reaction, but there appeared TO
be some support Of an excellent character, while
sentiment rule was bullish the i'm
mediate future of the market Russian bonds
and British consols were weak and foreign ex-
change strong. factors which do not make
for a bull market here though local traders
who have been converted to the bull side are
putting forth the opinion that foreign develop
ments cannot hurt markets in manner
just as positive as that exercised a few weeks
ago, when they saw in Russian developments
the gravest kind of danger for home securities.
There is doubt that certain strong interests
are working for better prices, and as a conse.
quence. it is not unlikely that the market will
present an advancing tendency perhaps until
the demands for money from the interior be-
come urgent. SO far rates Of exchange at out
Of town points have not indicated an immediate
need for funds from New York but it is quite
probable that by the second or third week in
August there will be an active movement Of
currency from this centre. Last Saturdays
bank statement was disappointing, but reserves
however, are much stronger than they were
few weeks ago. and unless there should be seri-
Gus selling of American securities for foreign
account incident to upheaval in Russia there
soon ought to be imports Of gold a mod
erately active scale. especially as the supply OF
bills this fall will be heavy account of large
shipments Of breadstuffs and cotton. Prices OF
grain a level which ought to attract
active foreign buying. While there were some
recoveries from the afternoon low level before
the close there was no indication Of heavy pur-
chases. and the general appearance of trading
was decidedly unsettled.