Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-22


The bull chorus was pretty strong toward
the end of last week, and was still noisy be-
fore the opening in the stock market this
morning. Nevertheless It would be untrue
to say that there were no Earring notes. In
fact, the discordant sounds were loud
enough to attract no little attention, and
there was lot of talk on Saturday after
noon and this morning about the necessity
and probability of smart reaction Tips
purporting to come from various eminent
operators to get out of stocks because they
could be bought back a little cheaper were,
one might almost say, even plentiful.
AS general rule, these philanthropic ad-
vices are followed only to make the dis
covery that the market has taken your
stocks away from you. There has been
heavy speculative profit taking lately, ana
the sellers would no doubt be glad TO re-
cover the sold-out lines at concessions or
from three to five points.
The automobile race meet in Florida and
the regular winter reactions of leading
financers and spectators are adduced as
arguments for reaction now.
Some weighty developments seem to be
almost inevitably indicated by the course of
the high-priced stocks by the heavy
accumulation that Is going on In them
at advanced prices. 1t Is intimated, Tor
example, tnal WHAT Is peIClHS All 1ASdl
Northern preferred will work out to divi-
dend or the equivalent of a dividend of 81
per cent on the present stocks, and the IN
timation comes from well-informed sources.
At the same time the price of these issues
is prohibitive for all except wealthy trad
ers. A few stock exchange houses, because
of the general advance level that obtains
throughout the market, are requiring 10 per
cent on all accounts, but as rule these.
houses have only men of means for custom
ers anyway. Most houses. however. re-
quire such large margins on trades in the
high-priced issues as to make the low-priced
stocks more attractive to the small trader.
1t may be stated as fact that underlying
the advances that have been taking place
lately in the international Steam Pump is
sues is an accumulation by Guggenhem in
terests, which are likely soon to take lead
ing part in the management or the com
pany'S affairs 1t is even intimated that
the prospects for resumption of dividends
in the common stock have improved mater
tally of late and that the introduction OF
new and aggressive and influential element
into the management will soon tell in the
prosaic fact of earnings. The common
stock paid per cent in 1901, 4 per cent
in 1902 and 1908, 49, per cent in 1904 and
per cent last year, the last dividend OF per
cent having been paid last April. The pre-
fered has always paid its per cent divi-
dend. High price for the common stock
was STA in 1902.
X
The fact that under the handicap imposed
by the stock stamp tax it would be imprac-
tcable. IL not impossible, to bring Lehigh
Valley stock to this city, that is to estab-
lish the principal market for it here instead
of Philadelphia, might be added to the list
of disadvantages resulting from the tax
on stock trading in this city A good many
nj like IN Iph{gh Valley
listed on the New York stock exchange and
in all probability the trading in the stock in
Philadelphia for New York account is many
times the trading there for local account.
1t is interesting to note also that the num-
Der of New York houses which have ac-
quired membership in the Philadelphia,
Boston and Chicago exchanges. or have es-
tablished branches in those cities, is stead
ily increasing. Before the enactment of the
stock tax law quotations in Philadelphia
Traction, Diamond Match, Cructble Steel
and Pittsburg Coal We're introduced upon
the New York stock exchange, and New
York promised to monopolize the market
for them They have practically disap-
peared from the local market. however. A
logical corollary of the processes at work
may be witnessed before long in the es-
Establishment of markets in other cities for
stocks that .have always or practically al
ways been New York stocks.
A*
If, as asserted on competent authority,
the American Locomotive Company direc-
tors decided recently to postpone further
consideration of dividend on the common
stock until spring. the position of the pre-
ferred stock would seem to be to that ex-
tent improved.
With the dividend declared last Thursday
the total payments of the Amalgamated
Conner IDTnDJny to Stockholders in