The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-02
WALL STREET NOTES
LOndOn'S Buying Has Little
Effect OH Our Markets.
SELLING ORDERS NUMEROUS
western Interests Follow Bear Party
and Add to DepressiOns-Break I'm
SurpriSe-Bear Tips on COaI Roads
Result in Lower Prices.

New York, Feb. suspicion, feeling
that is always present in Wall street, and
that az this time predominates over all
others. was intensified to-day by the quo
tations of American stocks sent over
from London before the opening of the
local market These prices were in all
cases higher than our closing quotations
of the previous day. but instead of deriv-
ing consolation from the fact. the street
made up its mind that the London market
had been manipulated from this side in
order to give operators here better
basis TO sell on Consequently. flood Ct
selling orders was met with right at the
opening. which prevented our market
from rejecting the full extent of the ad-
vances scored on the other side.
Every trader who had a profit on the
long side tried TO have it before it get
away. and as there was renewal OF
liquidation in certain stocks prices yielded
easily without any appearance Of agrees
sive support on the decline.
One point possibly significant about the
bearish tips so plentiful was they did not
come from the most important bear party.
bat from a minor body trading on the con-
ditions that the other had created. The
Western interests, which were yesterday
SO liberal IN dispensing bearish informa-
ton only embraced the bear side after the
downward movement had assumed con
siderable Roadway, and when they became
convinced that the party working for
lower prices was strong enough and skill
full enough 20 make the market movement
the way they wanted Those Western in
terests apparently took their cue from
others in the matter Of selling. and appar-
emily they are again taking their cue from
the same parties Ia endeavOring TO reduce
their commitments on the bear side after
the others have already done SO.
Nobody wondered at the break in Re
public Iron and Steel The general opinion
was there was never any good reason why
the stock should have been sold as high as
il had beer pushed by a group Of specula-
tors who, disregarding all essential con
sideraU0ns OF value. put the price above
60 some weeks ago, although there was
not even a remote possibility Of the com
mencement Of dividends within the pres
ent year.
The very fact that the difference in price
between the preferred and common stock
was not greater in the case OF Republic
Iron and Steel than Of United States Steel,
although the common stock Of the latter
is on a dividend basis, while there are still
back dividends amounting TO per cent TO
be paid on Republic preferred before the
common stock Of that company car re-
ceive any distribution. bespoke the need
of adjustment such as to-day's decline
tended to bring about.
Bear tips on the stocks of the coal
roads were freely circulated in the first
hour Of business, and those who heard
them conceded that IL this group Of stocks
gave way in price the whole list would
have to decline. In the group Of coalers
the tipsters included Pennsylvania, and
they certainly made good 10 an extent
that was very dlscOuraging TO bulls who
were nearly disturbed over the ease with
which the per cent stock Of the leading
American railroads was put down 10 a
level 30 which the yield became more than
81 per cent on the investment.
Had the ZIP on the coalers been made
to include all the trunk line stocks il
would have found even more justification
than it did for New York Central and
Pennsylvania The selling Of Peunsyl-
vania was attributed TO the dominant in
terests in one of the large Western rail-
road systems which are said 10 have been
bearish on the market for long time.
and the break in this stock pTecipitated
the decline in New York Central, as the
street argued that there was no good
reason why the two stocks should sell al
nearly the same price in view OF the
| difference Of their dividend rates.
Right from the fountain head Of the
days supply of bearish rumor, there
came. soon after the opening. story
1 that Amalgamated Copper was just OF
| the brink of a severe decline, and that
/ i'm order that the tip might not be dis
/ regarded, story went with il to tho
/ effect that large interests were in favor
Of letting the stock drop down so as tc
/ get even with Boston operator who
was said TO be staggering uno : a heavy
| load Of IT, accumulated on the advance
/ TO 12ii4 a few weeks ago, when there was
/ some expectation of an increase to II
/ per cent in the dividend rate 1t did not
| seem however. as if the decline in thu
/ stock caused liquidation of a large &C
/ count. for while there was, of course, q
good deal of real selling In the stock, Il
was of the scattered kind representing
/ the closing out Of many small accounts
| rather than of concentrated holdings
/ London had a TumOT of impendin;
/ trouble in New York, but this did no
! prevent It from buying a large amoun
/ of American stocks. The buying was
sufficient REPUTATION Of a rumor for whicf
! the foreigners could hardly be blamed
/ in view Of the stories that were circu
/ lated here regarding the condition o
/ certain London houses previous TO tn,
/ recent settlement.
COTTON MARKET.