The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-11
GOSSIP or. WALL STREET.

is confsoatory and therefore unconstitutional.
An appeal on such grounds, II was argued,
could be successful only II II was shown tina
the owners Of gas stock we're really alarmed
over the possible consequences Of enforce
ment OF the measure. BY pointing 10 the
existence OF such alarm. counsel for the COM
pany could materially strengthen its case.
Otherwise 1t would be a fair conclusion that
the stockholders had a general knowledge
OF the conditions governing tho gas business,
and II they displayed no uneasiness on the
matter, 1t was because there was, no reason
for any. Under the circumstances, II seemed
hardly likely that the large interests would
make any special effort to protect the stock
pending q decislon by the court, and the prob
ability OF immunity from the ordinary CON
sequences OF. short selling in q stock OF the
character Of Consolidated Gas ENCOURAGED
some of the traders to sell 1t with q good deal
Of confidence. In the belief that. the dividend
would be cut to 9 per cent. or over.
1t was at the end Of the frat hour that Con-
solidated Gas began to display marked weak
ness. and the effect was at once felt by the
general market. Previous to that time there
had been pretty free offerings Of stock prac-
tically throughout the entire list, but In spite
of this prices held with moderate frmness,
which induced quite a few people to venture
predictions that the decline would not be OF
greater range than a point or 80. But as soon
as Gas broke the old rumor that Standard Oil
people had assumed a beariBh attitude toward
the market was revived. and the whole list
gave way. even an Unexpectedly favorable
bank stateme emit being without influence in
arresting the decline. which was not checked
until Just before the close and then by cover
ing OF traders shorts.
Another reason for the decline in Console
dated Gas was the increase in the assessed
valuation OF the company's franchise as the
basis of taxation under the franchise tax
law. The effect Of this, however. was secon-
Diary and might have been negligible had 1t
not been for the other development. The
amount involved in increased taxation was
only 5000, or approximately one-tenth Of
1 per cent. on the stock.
The fact that the independent bituminous
operators had determined to support Mr..
Robbins Of the Pittsburg Coal Company
in resisting the alleged demand Of the Steel
Corporation for a settlement with the miners
increased the belief that a strike In the soft
coal regions. at least. was likely. and some
traders who had from the first found fault
with what they called the attempt to bull
doZe" Robbins could not resist the tempta-
ton to remind every one who came within
their circle hat they had said So" But
the prevailing impression was that reports
of the alleged interference Of United States
Steel officials had been exaggerated and
distorted. and that there was very little be-
yond gallery play in the strong stand taken
by the operators against compulsion from
the outside.
Few stocks commanded such attentio as
Reading. The impression created by the
strength in this stock was that the outlook
for continuance Of peace In the anthracite coal
fields was by no means hopeless. but here
and there there was a disposition to regard the
movement with suspiclon-as being engineered
possibly with a view to creating a moro favor
able sentiment than the facts in the case
warranted. There was. perhaps, a little
too much ostentation In the buying. 1t was
suspiciously good. so far as appearances
counted for anything. There. was no reason,
II was argued. why most Significant buying
should be done openly. without the smallest
attempt at concealment Of it's source. Such
buying was calculated to attract. and did
attract, a considerable public following.
a consummation not especially to be desired
in the initial stages of any bull movement.
A public following IL q good thing for large
operators to have when they are distributing
stocks. but not when aocumulating. For this
reason II has always been good policy to
keep the public In the dark most Of the time.
and some shrewd operators ght there
had been no departure from the general
rule IN the Reading movement.
As an indication OF the probability Of a
strike of the union miners In the bituminous
coal regions the strength OF Norfolk and
Western could hardly be ignored. The
significance of the advance In this stock lay
in the fact that the miners In the Norfolk
and Western territory are not organized
and that as their loyalty had been proved
In the past they could probably be depended
upon, no matter what might OCCUR In other
fields. The more serious the strike situation
became elsewhere the greater would be the
demand upon the mines along the Norfolk and
Western, and as a direct result the greater
would be the tonnage OF that road. A factor
which to some extent detraoted from the force
Of the argument based upon the strength
In this stock was that Norfolk and Western
on Its present earnings was not particularly
dear, so that any reasonably strong interest
wishing to create in this way an impression
that a soft coal strike was imminent could
do 80 with comparatively Little risk OF loss.
One OF the Western houses got credit for
the sudden squirt in Atchison. which was
the feature of the market about the middle
Of the session. London was q seller at the
opening, but as soon as this selling ceased
the stock was taken In hand and run up
sharply. with the unlocked for effect OF bring
ing q large VOluIHe VI Tcdiisiub paiCo- cScp-
ticism as to an increase In the dividend at
the time of the next declaration was wide
spread, and while II was pretty generally
conceded that there was a fair probability
OF the adoption Of a 6 per cent. basis In the
fall q great many brokers were inclined to
argue that the advance in the stock had
already proceeded far enough for the time
being, II founded on nothing more than a
development of this kind so far In the future.
While the loss In cost v1s larger than had
been expected. the bank statement was, on
the whole, regarded as favorable. since on
account OF the heavy increase In loans and
deposits the surplus reserve allowed 2 fair
gain. While the decrease in loans was largely
the result Of the liquidation in the stock market
at the beginning Of the week and the closing
days Of the week preceding, there was a
general disposition to believe that the placing