The Washington herald., 1907-09-05
WALL STREET NOTES
Upward Movement of Week
Probably at an End.
PROFIT TtKING IS EXTENSIVE
One Large Interest Leads in Check
Ing HiIarity and Smaller Traders
Take Warnfng-smeIters Lose Half
of It's Previous Gain, but Investors
Are still Buying the stock.

New York, Sept. 4-The failure OF the
Union Iron and Steel Company and an
announcement that work on S2,oO0,e0C
Central Of Georgia Improvement had been
abandoned again attracted attention to
the business recession to-day.
Neither incident had direct bearing
on Wall Street, but each was considered
of Importance as aGording additional evil
dence Of the general trend Of business and
indicating, perhaps, that the curtailment
of business activity is going on quite as
rapidly as any one had anticipated or
prophesied
The market effect was shown rather in
chilling OF the enthusiasm Of the pre-
vious day rather than In any feeling that
the market had not abundantly discounted
very extensive trade setbacks. The few
men who had thought that the market
was on a hilarious upward movement
were given something TO thing about and
changed their opinions.
The trading was almost entirely pro-
fessional with price movements governed
principally by shifts in the technical po-
sitiOns of various shares.
Technically, most traders considered the
market a bit top heavy after the ex-
tensive short covering Of the previous day.
While willing to admit that a firm un-
dertone would be found for the market.
they nevertheless contended that the
strength was below rather than at the
surface. Most OF the in and out traders
accordingly closed out long contracts aud
put out shorts for a quick turn.
In the majority of the daily market let
ters brokers advised customers to buy
only on recessions. Not one of them
gave the impression OF a belief IN a con-
tinuous advance In market prices. Re
iterating the advice that stocks are still
cheap, :hey nevertheless Insisted that
they would be cheaper than the level of
Tuesdays closing
SmeIters lost exactly half of It's 42
gain OF the preceding day. The decline
was generally attributed to profit taking,
for the opening price, lo25s, was 12s
points above the low OF week before
last, and undoubtedly many operators
had profits good enough to cash in.
At any rate. it was agreed. nothing but
bull points on the stock came out of the
annual meeting. The directors declared
a continuation Of the new dividend rate
Of s per cent. and gave out an annual
report showing earnings OF more than
l2l2 per cent on the common stock after
the appropriation Of more than S2,O00, 90
for betterments, repairs, and new con
stTuction. 1t became known after the
meeting, also, that Smelters is one of the
stocks most fancied latterly By investors.
According to one of the officers OF the
company, the number OF stockholders has
increased. 20 per cent in the past sixty
days
The copper stocks reacted from the ad-
vance in the prices made on the an
Of a breaking Of the dead
lock in the metal market the preceding
day.
Prior to to-day's opening there had
been in six trading days a gain of fifty
cents a share in the average price Of the
statistical rails Many OF the shorts had
either been forced or frightened into
covering. and the time was ripe for
sales on the part Of those with
paper profits on the long side.
PToht-taking was conducted on a large
scale-larger than would otherwise have
been the case, probably. for the reason
that reports were circulated to tho ef-
fecE that one large interest, after encOurag-
inc FhA advance IN n
quietly unloading its stocks. If the men
in this cOrterie think II a good time 10
take profits il was argued, II is no time
for the smaller fellows to stay in and let
the market slip out from under them.
In some banking quarters It vas said
that the selling by this important interest
was not prompted so much by a de7ire
to secure speculative profits as by the
Of giving spectators a practical
lesson in prudence and moderation The
lesson, it was said. was made necessary
by the hilarity displayed in market opera
tions the preceding day.
The Wells Fargo Company has not yet
been hit by the business recession. 1t
was reported to-day that the net earn
Ings equal 81 per cent on the common
stock.
D. & II. was one OF the few standard
stocks to resist the reactionary movement.
It closed with net gain Of 10 points.
Much of the strength appeared to be
impaired by al estimate that the net
for the year would range be-
tween Is and IS per cent.
There was a renewal OF the encouraging
reports regarding New York Central.