The Washington herald., 1906-10-09
FINANCIAL NOTES.

New York. oct. s-Readlng from the
tame IT looked as II Chesapeake and Ohio
directors might increase the dividend on
tbe stock AT their meeting to-day. al
though the weight Of opinion In well-in-
formed quarters seems 20 be against IT,
The road is doing well in the matters
of earnings. but needs money TO carry
on bctterments necessary for the accom-
modati0n of its growing business.
Everything about the market bespoke
its professional character. There We're
rumors galore and sharp movements
which for a time looked as II they would
20 considerable lengths, but most Of
them petered out after affOrding some
speculation clique an opportunity 20
scalp a very moderate profit The large
interests did not want activity. and
probably would not have permitted it.
The traders and spectators could not
make anything out of inactivity. and as
very little stock came out they found
little encouragement in working for Il
decline. What they could do was 10
engineer special movements in indi-
vidual stocks, TO the accompaniment Of
rumors Of various kinds, and this they
did with some profit to themselves. At
the end the market appeared TO be sink
ing into rut with nothing in sight
which could be counted upon to pull il
out again.
Since announcement was made Of the
ore deal. there has been a steady strain
Of selling orders in Steel common. which
has held the price down 10 about the
level touched on Friday afternoon be-
fore tho official statement IN regard TO
the terms was made public The stock
on The market appears 10 be consumed
by speculative interests. and IS readily
taken without affecting the price to the
extent Of more than a fraction Of a
point Where it goes 10 IS not easy 20
trace. but il IS evident that when so
much can be sold without causing any
apprceiable recession iu the price there
must be a demand from strong inter
ests II these disclosed their identity
it might be argued that the purpose
was 10 check n decline. but as. on the
other hand. the buying IS executed 50
as 10 appear Of very indinerentJ quality
It IS q fair surraise that these who are
taking the stock have no other object
than to get rs much as they can with
out bidding for IT, Even u moderately
large trader can succeed In shading the
price If ne wants 10. but those who
have tried 20 figure out what becomes
OF stock sold are not disposed 10 sell
until they can solve the mystery OF the
source Of the buying.
The sharp advance in General Electric
was made 10 the accompaniment Of a re-
port that stockholders would soon be Of
lered an allotment Of new stock at par
The allotment, IL was said would be 70
per cent Of present holdings. which,
az tho present price of the stock, would
give the rights Il value equal TO q divi-
dend Of about Is per cent. II such an
allotment is TO be made, It will first be
necessary 70 obtain consent Of the stock
holders to an increase of the authorized
capital Of the company, as the present
limit of stock Is $5500.0l9. Of which
81. sc. go Is outstanding. so that the unis-
sued balance would not quite suffice 10
give the privilege OF subscribing for even
10 per cent OF present holdings A ,
per cent allotment would call for Sl0,-
10 900 additional stock and would bring
the outstanding amount UP 10 SIS, 227, 90.
The General Electric Company has been
making great progress, and probably
needs new money % provide for further
enlargement of its facilities.
SmeIters. too. according to rumor. IS TO
get rights on a new issue Of stock at par.
In some quarters IT was believed that the
rise in Shelters was as much designed for
the purpose Of helping the market in
Amalgamatcd Copper as for anything
else. The large interests do not seem TO
have heartily co-Operated with the move
ment In the latter stock, although doing
little to discourage Il. Their position at
the moment appears to be a waiting one
waiting for the dividend declaration on
October is. which some Of the bulls say
viii put the stock on an S per cent basis.
but which many believe viii make no
change frora she present rate. It is. per
haps, significant that the greatest bulls
on Copper Ut present were the greatest