The Washington herald., 1907-06-19
WALL STREET NOTES
Market Starts Off Briskly
Under Good Influence.
ADAMS MELON AIDS PRICES
of Big Dividend on
Express Company stock Acts ns
BuIIish Factor-Rumors of Jersey
CentraI's Increased Rate Bursts
when Directors Met at Noon.

tentrafs Increased Kate bursts
when Directors Met at Noon.
New York, June 1S-The market started
off briskly on the up-tack this morning
under two favorable influences, one of
which was real, though the other was not
The first was the Adams Express melon
which was the strongest kind of testi-
mony to the success Of the company in
reaping the benefit Of the years of pros
perity that have been enjoyed by the
country al large and 20 the belief held by
the management as to the continuance OF
prosperous conditions in the future This
was real influence. whose effect in the
way Of reassuring sentiment was not TO
be judged by anything that occurred in
the market during the day II had come
to stay and 20 take an important place
among the factors tending 10 promote the
growth Of better feeling in Wall street
The other influence felt at the opening
of the market was Of "a far less substdn-
tiel character, being the revival of an old
and discredited rumor about an increased
Jersey Central dividend. This story
proved 10 be entirely without foundation.
for at about noon the directors met and
made the declaration for the quarter at
the usual rate The traders professed to
feel greatly disappointed because an in
crease was not granted, although it IS
probable that had a change of any kind
been made it would have elected gem
uine surprise from almost every quarter.
Such interest as there was in the Jersey
Central dividend was really in the indiCa-
tion which this afforded OF the probable
action of the Reading board tomorrow.
and that this was small must have been
manifest from the almost perfect unauim-
ity of anucipati0ns recently that no
change would be made az this time IN the
dividend policy OF the latter company.
At about par. the buying Of Reading ap-
peared 20 be Of good quality as had been
the case on former occasions, when the
stock dropped to that level. but 1t was
very doubtful if the buyers wanted 90
rally the price. their purpose apparently
being 70 obtain as much stock as possible
al what. 80 far as could be judged from
their attitude. they regarded as an attrac-
tive price from the buyers standpoint.
Disappointment was expressed even by
the bulls over the action of Union Pacific.
The sto k remained strong only as long
as the shorts were covering and as soon
as this sort Of support was no longer in
evidence. heaviness succeeded the appar-
ent strength There was no news 10
account for the lack Of support. and in
the absence Of other legislation. the
traders turned 10 the grotesque stories Of
contemplated suits 10 restrain the COM
panv from carrying out its financial plans
and Of alleged serious differences between
important financial interests in the prop
erty. Il was hardly supposed that these
stories could have had anything TO do
with the reaction In the stock, but II they
had. better proof could not be desired
that Wall street was still in such a highly
nervous state that il could be scared by
a shadows shadow
Southern Pacific showed relatively
Elfdhfl FA-fAAs7L Lti t.A0+A NUN AH4AAHr tfH4h
the reason given-that the former had
not been made the repository Of
stocks bought at too high a price-was
hardly sufficient 10 account for the dif-
ference, for as long as the two companies
remain under the dominance Of the same
interest, what has already been done in
the one may be tried in the other as soon
8s the road gets into condition 90 finance
purchases Of stocks of other properties.
There was quite a little buIlsh talk
on St. Paul in the forenoon. but after
comparatively small advance the stock
became heavy and subsequently reacted
The rumors which accompanied the early
buying movement were all OF a kind re
lating 20 the technical position Of the
stock. but they covered this subject well
purporting to give estimates Of the extent
of The snort interest Of the floating
supply, and Of the amount that was ac-
cumulated for the rise by Standard Oil
and other prominent capitalists That
there is a short interest IN st. Paul is
fair assumption from the character Of
the comment which has been current in
the street for some time past
Traders who last year talked all sorts
of high prices for the stock have re
Gently been talking as Il they believed
that the road would have difficulty I'm
maintaining IS present per cent divi-
dend rate.
Pathetic is the complaint Of the bond
man There Is absolutely no business in
his department. he says, and he keeps on
reiterating II as Il II consoled him in pro-
portion as it wearied his hearers. Not a
single important trade has he made in
weeks, and, as ffar as he can see, there
IS no prospect Of any improvement. He
seems to think it is a sort Of duty to
travel around and talk with others no
more successful than himself, apparently
for no other reason than that misery
loves company" and, perhaps. if half
the time was devoted TO drumming up
business that he wasted in bewalling the
absence Of IT, hts house would be able
to report a little more doing in its invest
ment development.
Ordinarily. an investment demand for
stocks waits upon an investment for
bonds. This, however, IS NOD the case
TO the usual extent at present and it is
well it is not for if stocks had to wait
for investment attention until after the
bond market had been stimulated into
activity. certainly nothing could be eX-
peCted in the way Of an investment de-
mand for stocks for a long time to come
The reason why the investment demand
for stocks does not wait upon the bond
market TO the usual extent now is that