The Washington herald., 1907-08-22
WALL STREET NOTES
Trouble in Inter Net. Is
JeOpardizing Dividends.
STOCK TAKES FURTHER DROP
Stringency in Money Market Causes
Big Firms 10 CurtaiI Expenses and
Reduce Pay ROIIs-Day's Trading
Is Very Light-GOId Exports Com
tinue with Exchange Strong.

New York, Aug. 21.-The aftermath OF
the talk over President Roosevelt's and
Secretary Taft's speeches was of second
airy importance to-day to reports of
changes in the organization of the Inter
borough Metropolitan Company and OF
decreases or suspension of dividends on
Interborough-M metropolitan preferred and
Metropolitan Street Railways.
The tape sometimes tells the truth, and
II it did to-day it indicated that the
dividends on both stocks were in jeopar-
dy. Interborough-N metropolitan preferred
again sold on about q per cent invest
ment basis, and Metropolitan, dropping
down lower than ever. changed hands
on an IS per cent investment basis. Both
stocks sold, IL not on a receivership basis,
at least on a nondividend basis. The re-
ports and rumOrs accordingly could not
be stayed. The tape talk was too strong
for the street to put credence in denials
of all the reports
In very well informed circles it was be-
lieved that some changes impended, but
the change would not destroy the present
organization Of the Interborough-Metro
politan Company.
The market early set out TO demonstrate
the fact that the rally OF the previous
afternoon was not caused by any reas-
surance over the utterances from admin
istratlon circles. It sold off very sharply,
and thus gave convincing proof of the
proposition that the rally Tuesday after
noon was due principally to short cover
ing.
The volume of trading showed that little
activity. al any rate, had been instigated
by any cause whatever. The aggregate
Of sales was but $4,000 shares as com
pared with more than 70O,O00 on the pre-
vious day, and more than a million on the
corresponding day last week. II was the
lightest days trading since the disturb
ance began two and a half weeks ago.
Brokers said that there was inside sup
port in the morning which protected most
Of the active stocks. and some OF them
were of the opinion that It was of consld-
cradle strength. 1t furnished to the ma
jOrity, however. the same indications that
such support has provided latterly. Il
seemed TO show that it was aimed 10 pre-
vent decided s ump rather than to bring
about substantial upward movement
With the liquidation seemingly at an
end, considerable more attention was
given to the odd-lot buying. These IN
vestment purchases continue steadily in
considerable volume, and some brokers
yesterday were Of the opinion that they
constituted the healthiest buying power
in the market They proved. at any rate.
an indication that people are willing 10
take a chance on owning some stocks
even if they have not come to a point
where they have complete confidence ia
them.
The foreign exchange market was again
very strong with demand sterling up
twenty points at 4S7S5 and 4S79O at the
close. The probability of further gold
exports increased accordingly. The pos
of imports from London at any
time this fall has practically passed out
Of consideration.
The stringency in the time money
market. it was reported, has affected two
quite pUminent mercantile concerns.
Few were inclined to attach any import
ance 10 rumors that either firm was in
any serious difficulty, but authority SEEM
ed ample for the statement that each
had found Il advisable very largely TO
cut down its working force and other
wise curtail operations, Notwithstanding
the proximity of the fall season.
For that matter. banker said. there
is likely TO be a considerable reduction
in various lines Of activity this fall on
account Of the high money rates. Many
and manufacturers, whose
credit is Of the highest, it was said, have
determined 10 reduce expensAs rather
than make efforts for increased business
on borrowed money.