The Washington herald., 1907-09-20
WALL STREET NOTES
Advance of New York City
Bonds Encouraging Sign.
U. P. AT A NEW HIGH LEVEL
All United States steel Issues show
StrcuEth-GOOd Judges See in Rise
vestment mnnd-RcHding'S An
nuaI Report Is satisfactory.

New York Sept Bone Of the many
encouraging features of she market to-
day was the advance in the New York
City 4l-2 per cent bonds. The price Of
these rose to 105 rs. new high record
and an advance Of about four points from
the average realized by the city. There
was talk of asshort interest but it is
doubtful if there was any ground what
ever for reports of that kind.
The probability is that if there was any
short selling, the amount was very small
and that the present buying represents
almost wholly a legitimate demand. com
ing from investors large and small, from
institutions and individuals.
Rumors to satisfy all tastes accompa-
MED the advance In Union Pacific 10 a
new high level for the present movement;
bur perhaps the most interesting of all
because il vas in the highest degree orig
inal, was that prominent banking house.
not heretofore connected with the prop
erty, had taken over from a member Of
the Standard OF party a block Of $1,000
shares Of tie stock. the transaction being
arranged through another banking house.
always regarded as Union Pacific IN
slider In explanation Of the alleged
transaction. IL was said that the Stand
ard oil man referred 70 had dlvested HIM
self Of an Eis speculative stocks, using
the open market for the most part in
making his sales, and this was offered
as an explanation of the heaviness dis
played a couple Of weeks ago but from
which the market has recovered, now
that the cause no longer operates.
All the United States Steel issues. the
common stock. the preferred stock. and
the sinkingsfund bonds, made Substan-
tial gains on the day, and while the
advance IN the first named might have
been largely due 20 short covering, this
could not be- said for the others. BY
some good judges Of the market the rise
in the Steel bonds was one Of the most
important Of the day II shows not only
an extension of the investment demand.
which had formerly been restricted to
the New York City issue and a few 9th
ers. but mistaken confidence in the fu-
ture Of the Steel trade. Notwithstanding
the recent attempt Of spectators to
cause apprehension by attacks on the
common stock.
Northern Pacific did not recover its de
cline from the high point Of the preccd-
ing day, Notwithstanding stories Of buy
ing by a pool. but Grea. NortherRs dis
played much strength, and in this sway
the Street WIS encouraged 10 believe that
something d. importance was about TO
transpire in -he affairs OF the Hi roads.
The favorite theory was that the Bur
ungt0n deal was nearing the point of con-
summation. but nothing new in the way
OF detail was anywhere heard.
Readings annual report was regarded
favorably. and even the bears were forced
90 admit that 3 per cent dividend paid on
the common stock was not a fair meas
uTe of the intrinsic worth Of the security
This fact being recognized-that the stock
had greater real value than il had gem
orally beer credited with possessing
was natural that there should be Consid-
erable covering and il was perhaps
equally natural that there should be
pTofit-taking on some of the stock acCu-
mulated I'm the past couple of weeks.
Uncertainty rs 20 the action of the
Ama-gamated Copper directory on the
dividend question has deferred many
houses from taking a definite attitude on
the market The general expectation Is
that the dividend viii bee reduced but by
how much, few brokers attempt 10 guess.