The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-16
WALL STREET NOTES
Tip on the New Haven Bond
Sale DeceiYes Traders.
ANAC0NDA'S ACTION HARMFUL
Brokers Do Not Like
Wide Fluctuations and Favor Re
turn 10 Old system of Quoting
stock on Basis of Price Per share.
BuIIishBess of y. y. c. Explained.

tEru TO OfO system oI QuOAfnS
stock on Basis of Price Per share.
BuIIishBesS of y. y. c. Explained.
New York Feb. 15.-For some time be-
fore the market closed a few operators
had an mixing Of the New Haven bond
sale, but not knowing that the bonds
would be placed abroad, they concluded
that the effect would be bearish. and
proceeded to put out stock, causing a
reaction in prices. AS the official an
gives the matter an entirely
different complexion, Instead of with
drawing money from Wall street. the sale
al the bonds will bring funds from abroad
toward this center. it would appear as if
those who had the early. out incomplete,
Information on the subject are worse of
than those who only heard OF the transac-
ton after the market closed
Brokers who on Thursday described the
market as good one for the traders went
further to-day and expressed the opinion
that the strong undertone indicated that
the large interests felt encouraged over
the outlook for the enactment of currency
legislation. the continuance Of activity in
general business, and the placing Of Sc
curities abroad TO enable the roads TO pur-
sue their present plans Tor the develop
ment of their properties.
The real strength in St Louis South
western" said one Of the traders Ties in
the weakness in Missouri Pacific. Both
are Gould stocks, but the Sage estate.
which may be selling Missouri. has little
or none of the other, and Southwestern
preferred is not far from dividends"
About the beginning OF the month Mis-
souri,. Kansas and Texas sold as low as
S5ls. Since then it has risen more than
eight points. or practically % per cent,
which is very good advance within a
period Of about two weeks. To-day the
buying did not seem 10 be as good as
yesterday-and no wonder. in view Of the
extent To which the floating supply had
already been cleaned up. The interests
that have been accommodating the stock
are not anxious 20 advance the price
quite the cOptrary-so when the market
gets so well cleaned out that they cannot
get more without bidding up the price
sharply they drop out and wait for a re-
action. or until spectators. getting tired
Of paying into their speculative stock.
throw it over, adding that much 10 the
floating supply But the accumulation Of
the stock by strong interests makes
a condition favorable 10 the
operations of traders who see an OppOr-
tunity 10 squeeze the short interest Such
an opportunity has just been found and
utilized and weakened technical posi-
ton Of the stock is just what IS wanted
by those who are buying for permanent
investment.
Traders who sold Missouri Pacific down
to the lowest point touched by the stock
since il was placed on a per cent divi-
iend basis drew attention TO the great
difference in the action OF this stock and
Kansas and Texas as an indi-
cation that some developments not of
favorable character were pending IN the
affairs OF the former. The rumor that
the Sage estate was converting its stock
holdings into bonds might, however, con-
tain the legislation.
Conservative brokers do not like wide
fluctuations in Anaconda which they re-
gard as hurtful 10 the general market,
and for this reason they are in favor of
a return to the old system Of quoting
the stock on the basis OF price per share.
On Wednesday the stock sold UP 90 3O0l4
On Thursday it dropped 10 292. and to-day
IN a way that was hardly less than vio-
lent. IL rose to a new high record OF 502lz
Had the stock been quoted on the basis
OF its share value, the equivalent Of the
quotation OF go would have been - In
the same way the lowest point on Thurs
days decline would have been % and the
break of points would apparently be
moderate reaction of > points. As for
fractions Of points the stock so seldom
moves by mere eighths that It would
make very little difference If the facility
which is now given for trading within
small fractions Of a certain price was
altogether.
4 prominent Western house was said
to have resumed activity on the bull side
IF the market, particularly in its own
specially and in view of this report the
strength and activity in Republic Iron
and steel was regarded with quite a lit
lie interest. Most brokers cannot un-
ierstand why if the preferred, with 4 per
cent in back dividends yet TO be paid. is
not entitled TO sell above par the common
IS worth anything more than its present
prices. The company is said to be going
well In the matter Of earnings, but as the
asst of the back dividends on the pre-
'erred will not be paid until midsummer.
ma as, meantime, the common cannot re-
'eive anything. il is odd that there
should be no speculation 10 speak OF in
no fl-r A.
little activity in the other. The probable
explanation is that there is a pool in the
common which has an object in making
p market for this stock, but has no in
-erest in the preferred.
Bullish sentiment on New York Central
appears to be more general now than at
my time in Il long while. There are no
rumOrs TO account for the
'hange in sentiment except that the road
having arranged its financing is in posi- !
ion to 90 ahead and develop its fra |
There is. of course. no |
ioubt that with the equities in Lake
shore and the other controlled conpanies
he per cent dividend on New York
CENTRAL stock is entirely secure, or that
wen d higher rate could be paid without /
tfaining the roads resources. The stock. |
however, mas made no notable response |
o the predictions of bull movement /
although there is an indication Of a re- /
sumption of activity in some of the CON /
rolled stocks, notably Big Four. such as /
Usually accompanies movement in the 1
took Of the parent road.
One OF the strongest stocks in the
ist was Cresapeake and Obio for ,,biio