The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-08
WALL STREET NOTES
Traders Seek Cause Of Mar
ket'S Change of Front.
ATCHIsoN FIRST TO MOVE UP
Expectation that the Dividend viii
BE Increased to q Per Cent Given
"a ReRson-Katy May be Placed on
Dividend Basis SOOn-Canadian Pa
ciHc sells Block at Good Figure.

New York, Feb. Among the mat
ters that We're discussed by traders to-
day as afrording the best explanation
of the markets change of front prom
inence was given to the prospect for
permanent relief for the money market
through passage of the measures en-
hodying the proposals of Senator Al
drich to increase the maximum amount
Of circulation that tle banks may re
tire in a month from $4,000, 900 to S15,-
G90, 900. and to authorize the Secretary
Of the Treasury to deposit customs col
lectjons with the banks the same as is
done in the case of internal revenue.
Next to that the subject of an in
crease in railroad rates to recompense
the roads for their increased OUTLAWS on
account Of the rise in wages and in
supplies of nearly every kind was dis
cussed with the greatest amount of in
tcrest II was said that the rate ques-
ton would probably be discussed in
formally at a social gathering to be
attended by a number of railroad pres
idents and that it had already been
discussed in the same way at a similar
gathering some time ago. so that lines
Of policy were already beginning to
take definite shape. Few seemed will
ing 10 predict the outcome. but il was
said on very good authority that rates
were never better maintained or more
free from anything Ike special con
cessiOus 10 big shippers than at pres
emit
,-,-,.,.si,- strera-,t, a.. ,,,C.,,o,,,.,,t a.,
mis- Issue being started bv brokers that
often execute orders for M Frick. who
is one Of the most influential OF the
roads directors.
AII'Hs tii' 't'"vIS '"S 'V'S''' 6i>ei i''
lHe S''ei's'" an q ''ii-9oi y" a9 'N'' ''ie
dlNiuehu "ouiu 0e eie''seu 70 per cent
""eH 'le ""eCIoIs tooh up 'ne q''9'io'l
next sp''ls' II - W. "o" o's'' ID
TINS Was t"e sole DaSls Io' ,He auN"iioe al
tht S'0eA' lHoSe VINO Soiu SAof1 III '"'
expectation OF covering on the announce
ment of an issue OF convertible bonds now
find themselves confronted with the GER
tainty that the company VIII not an
nuuncc any scheme Of financing until the
money market improves, and, bereft of
their only argument for lower prices. the
bears find themselves under the necessity
of covering their stock i'm "a rising market
or remaining short for the Indefinite
period until the money market inn
proves"
A curious story advanced for the rise in
Erie is being told 10 the effect that a we'll
known sn.c,iistor after LOSING, heavily On
SUN Sloi VI q" i'' - '''S % II - ''i ''''
nope OF recovering part OF ms loss me
story was that the operator IN question
had closed out his Southern Railway at
about the bottom. and had no better luck
in selling Erie short Traders said than
bi. fudgTnent was had in botb ventures
ma 'alNeu oA 'uS ''ls II ~ "'' lLe 'ei-s' 4"
"a ''.s ''l',''',' ia, ''''' ee''7 ,'o''' '-'''
''''.''1',,u ~ 10
-
5sl. 80 - ~
~ ~, 80, y,tore ,bl r,i,s l,.,,5 Iir,1e ~
no relation IN rho vaIue of the stock
Erie is doing well in the matter Of earn
ngs. and the work OF improving the physi-
a
far advanced that comparatively small
expenditure of money and time viii now
suffice to place the road in the place il is
entitled 10 occupy in the trunk line family
So far as the buying of Erie could be
traced. it seemed 10 represent accumula-
covering of short or the operations for
speculative rise by pool or body OF
traders When the rise started the float
.ns Supply was quite shidh-a TACT thaI
-5 49, =, -. -
,IiDa s+ro1r- iDtereet. had bel5 . bso q,
receive all stock thrown upon the market.
Naturally. as the price rose little profit
taking was met with, but the opinion of
the closest observers OF the trading was
that the stock acted very well.
From London came rumor that
Missouri Kansas and Texas would soon
he rlaced on a dividend basis with tba
i-,{+{,t ,7aoI.r,+;<.r, .+ tt,n zoe. 90 y ~
-. -. -, - -, - .--..---l.-l.e
IN % ''.-i Gu
'h"' Ho' ioHS ago i'ti'iie''lohs were gwen
10 sood quarters thae there were dividend
possibilities in the stock that should not
be entirely overlooked. although those
intimations were more in the way Of
attention to the fact that the
road was earning dividends on its COM
mon stock than that there was any imme-
date intention OF declaring them. Earn
ings continue to show up wei, and the
outlook Ior the future is encouraging.
only Dullisn construction could be put
upon the announcement that Canadian
F1gnTEn hg cold q hIno1- of I
stock, IN London. at 1912. The stock pays
only per cent and is noncumuiative, and
as many American roads have been
forced TO raise money by sale Of notes
on a basis to yield the investor > per cent