The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-24

needed, The reserve stock OF this Kind -
now quite large. and when paraded. A. II will
be by and by, Ia sure to make q strong i'm
preston on popular sentiment. The Great
Northern and Northern Pacific melons are
stun uncut, though ripe, and there Is believed
to be something OF a similar kind In store for
Southern Pacific stockholders. TIL final dis
position Of the Baltimore and Ohio stock
bought from. Pennsylvania has not yet, been
disclosed. although in . general way it is
believed that virtual control OF the property
will turn up in the hands Of Union Pacific.
These and other interesting Developments
will come at the proper times.
On apparently good authority the state
ment is made that Pennsylvania did not re-
ceive full payment In cash for the Baltimore
and Ohio stock which it sold some weeks
ago. A good part OF the price 1t is said was
paid In securities Of various kinds. The
statement is further mad that these securi-
ties are Of such character a. to indicate that
the stock bought has already passed into the
possession Of Union Pacific. which not having
cash avaiA blep put up colAteralto be redeemed
when the full financial arrangements are
completed.
william NJ. mbrie had an order to sell
1000 shares OF Steel common. which he eX-
ecuted for the most part in 5000 share lots,
OF which four were taken by j. ]. Manning.
The latter IL a large trader and il is supposed
that the stock taken 81 him was for mis- own
account, but opinion differed widely as to
VII Mr.. Imbris's principals were In his very
large selling transactions Some OF the
traders attributed the selling to important
interests" while others. remembering that at
about the time Of the announcement OF the
ore deal certain spectators accumulated a
large line In the belief that the stock would
be put on q 4 per cent. basis at the end OF the
present month. argued that what has now
occurred marks the closing 'out Of the &C
count then opened. In good quarters n has
been believed for some time thst no change
in the rate Of distribution would be made
this year. a, &
In the afternO Don the buying Of Steel became
so good as 70 attract general attention, which
called to mind the fact that the last rise was
made in response to the completion OF the
ore deal, the effect Of which has never been
fully discounted. rather than to expectation
OF an early increase in the dividend. which
never had much prospect Of reslization.
As a freak rumor the report that the heaviest
selling OF stocks was by two Senators from q
nearby State is worth preser wing in the Wall
Street cabinet Of curiOsities.
The name Of Mr.. Frick, which has been
mentioned in connection with almost every
important buying or selling movement in
Steel this year. was hardly heard yesterday.
IL has always come so handy to the traders
that the wonder is they disregarded II in
this case.
The broker who was the heaviest seller
of Steel common sold a rood deal OF Anal
gamated Copper. which he offered down,
enc0unterinR little opposition above us,
Notwithstanding that the stock will sell ex
dividend tomorrow. The speculative bull
account appeared to be large and not very
strong, while the short interest. 30 far as could
be Judged from the fact that the stock loaned
at 4 higher rate than most others in the loan
crowd, was OF comparatively small dimen-
sions. In spite Of the apparently unfavor-
able technical position. however, there was
a good rally in the afternoon and the close
was in decided contrast 20 the early weakness.
Once again the traders found that there
Is not the making OF q market scare in the
local political situation.
Mexican National FIRST preferred stands
preeminent as the stock which in the past few
weeks has made and shown ability to main
tain under not very favorable market condi-
tions q substantial rise without the aid or
any particular news beyond the continued
increases In the monthly earnings OF the road.
Speyer A Co. never had any misRtvinss about
the future Of the property and never con-
I cealed their belief that the first preferred
stock would eventually turn up a trump.
On August I the first dividend OF I per cent.
was paid ON the first preferred stock, putting
il on a ? per cent. basis, but conditions have
so far improved that when next the matter
is taken up a higher rate OF disbursement
will in all probability be authorized. Con-
seryatism is the keynote OF the management
policy, but the rights OF stockholders demand
consideration In view Of the extent 20 which
the property has been improved out OF sur
plus earnings which really belonged to them.
On Monday there was q good deal OF hys-
terical questioning as to whether New York
should force a panic in London-w whether
advantage shOuld be taken Of the favorable
/ exchange situation to force England to send
gold to this side or to continue its high money
rates in order to interfere with the natural
movement. Secretary Shaw may have fallen
under this influence, for at all events some
bankers contend that the measures adopted
by him are not only uncalled for. so far as the
situation here is concerned. but hurtful In
| setting a dangerous precedent. 1t rs hard
10 see what right an onicial Of the United
States Treasury has to act With q view 70
| easing money conditions in q foreign country.
and many in Wall Street can SEQ no other
grounds whatever for the action just taken
by Secretary Shaw. Anything that might
nave been dons by the Treasury at this time
would have failedto arouse enthusiasm. for the
need Of relief was not felt and it h not too
much 10 say-fOr the ticker said II at the open
! ing of the market-tha the course followed
has not met with general approval.
A rood deal Of harm 10 often done by med
dlesome interference.
Congress will now be likely 10 act 90 thu
currency question. and tbs action thst 10
needed before ala other kinds 10 along the lines
OF strictly defining the limits Of the Secretary
of che Treagury's discretion In dealing With
the natural conditions in the money market.
The present incumbent OF that orioe has
found Ways Of exercising great pover and In
the present instance the question V raised
whether at all times he can be depended upon
TO exercise 1t wisely. A more serious question
might arise when there was q Secretary 10
once who could not be depended upon TO
exercise 1t honestly. 1t 10 likely that Con
xress will be asked to draw hard and fast
lines beyond which the Secretary must not go,
and this could be effected IN connection With q
permanent measure Of relief by ena ting that
all Government funds beyond a fair working
balance should be deposited with the bank
just as soon as they are collected instead Of
| being stored up In the vaults Of the Treasury.
Whatever difference Of opinion there may be
- a.. .~laAEaHNa