The Washington herald., 1906-12-13
WALL STREET NOTES
Too Many Melons Are Now
Being Cut to Suit Brokers.
CHIEF COMPONENT IS WATER
Heavy Calling of Loans by Prom
inent banking House - Disturbing
FactOr-Stringency in Money Is
Feared by the End OF the Week.
FrIek and Schwab Discuss steel.


New York. Dec. 12.-'No, there is moth
ing the matter with the Great Northern
melon" said a prominent broker this
morning As a melon 1t is a fine luscious
specimen. but the trouble is we have had
too many melons recently. They have be-
gun TO disarrange our digestion and we
must have fewer of them. OF course the
melons we get are Of the water variety,
and their very name has an ominous
sound, which the street does not like.
For years the railroads have been squeez-
ing out water at slow but firmly steady
pace. Now they are putting it back in
quantity, cunningly disguised in melons.
which the street devoured at first but has
just begun to show a strong aversion to.
The present trouble is not the result Of
repletioH but of fiatulency."
Traders who sold Great Northern short
on the theory that II would be an attrac-
tive operation to sell the stock against
the rights, made money in some instan-
ces, although their theory was wrong
The stock is sold short in sufficient guam
tity to take the bear position worthy OF
attack. and there may be very interesting
developments before the new issue be-
comes a good delivery.
The case is essentially different from
that Of New York Central for instance.
which was heavily sold by large opera
tors on the announcement of the rights
few months ago. the sellers of the stock
securing their position by buying the
rights. thus insuring their ability to re-
tire their contracts.
In Great Northern, the new stock will
not be issued until April, 1889, and the
temporary certificates which will mean
while represent the payments on account
cannot OF course constitute a good de
livery for contracts in the paid-up stock.
Apparently Mr. Hill desires to discourage
speculation, and the probability is that
the rights will not be traded into any
great extent but that most holders Of the
stock viii avail Of them 10 secure an in
crease OK their holdings.
II is, Of course, quite possible that some
holders of Great Northern may sell their
stock with a view 10 buying it back
through purchase Of rights and subscrip-
ton 70 the new issue, but this cannot
prove a factor in the market at all com
parable to what the short selling Of the
stock against the rights as a hedge would
have been had not the plan to extend
payments over sixteen months and defer
issue Of the regular certificates until the
spring OF 1905 practically eliminated H.
The Northern Pacific melon will be SINH
lar to that Of the Great Northern.
The TIiH interests have always believed
that Of the two it would be greeted with
by far the greater satisfaction. and they
do not alter their opinion now. 1t will
be so good they say that it will taste ike
more. and the Northern Pacific patch
which has only just begun to bear after
many years Of cultivation, viii probably
yield more fruit in 1907.
Northern Pacific's business Is increas-
ing very rapidly It has now reached n
point where it practically overwhelms
the road. That the line may keep pace
crease its facilities enormously, and un-
less ali signs fail Northern Pacific Will
be the first company To own a double
track to the Pacific Coast.
The holder Of Great Northern who sells
his sock buys the rights and subscribes
for the new issue in accordance with the
terms Of the circular, will have the use
Of considerable money during a period
when that may be the most desirable
kind OF property.
There is not much interest in the prom
ised Reading melon as there was a few
days ago. Somebody has sold large
line Of the stock.
RumOrs Of heavy calling of loans by a
prominent banking house were among the
disturbing factors in the market, for
although other rumors state that money
was TO be used for the purchase Of
stocks. brokers were more inclined to
deal with the present circumstances than
anything Of a favorable kind which in
the future might grow cut Of it.
Banking interests say IT is not at all
improbable that money will work tighter
toward the end of the week on account
Of the dividend payments around the mid
die OF the month. of which the principal
are those Of Standard Oil. Consolidated
Gas. and Delaware and Hudson. all pay
able on Saturday. The Standard Oil divi-
dend calls for approximately S10,0C0.O00,
which is in itself an item calculated to
cause no little disturbance under prevail
ing circumstances. As. however. most of
this will be distributed to residents of
New York, the money will again be at
the disposal of the banks early next week
While call money was in demand at
13 or Il per cent a large national bank
went through its customary farce of lend
ing small lots at per cent without any
aPpTeciable effect on the quotations regll-
larry established by the law Of supply and
demand Brokers have become a little
timid of the frequent repetitiOns of this
performance. and unless the bank is pre-
pared TO lend considerable sums il had
better keep away altogether, so far as the
general feeling is concerned, than add to
the irritation which its action has already
given to borrowers.
1t is not often that Wall street is given
in a single day opportunity to hear an ex-
preston of opinion on the steel trade from
two such competent authorities as Henry
c. Frick and Charles NJ Schwab. But
although the trade is in as fine condition
as IS desired. 1t is very unlikely that
the dividend on Steel common will be
Increased this quarter The probability
that the greater part of the earnings will
be put back into the property is one
reason for the advance in the preferred
the position Of which is, of course
strengthened by the Improvements made
out Of income.
St Paul being in such small supplv IN
the street that small amount of money
is sufficient to move it, the great strength
which the stock displayed, even when
money was very tight, need not be q
matter of such wonder, as many peopIe