The Washington herald., 1907-10-06
WALL STREET NOTES
Reading the Strongest, with
Northern Pacific Next.
EXTRA DIVIDEND EXPECTED
Market Fails to Live Up TO It's
Early PrOmises-Charges Made by
Stuyvesnnt Fish Not Yet Refuted,
Hence Causing Hesitation on Part
of TraderS-COmment and Gossip.

New York, Oct 5.--Reading was one
of the strongest of the active stocks
In the first hour to-day, but the most
interesting transactions In this issue
occurred not on the New York Stock
Exchange, but on the consolidated, ia
miliarly known as the Dole Board.
These transactions embraced the pur-
chase of between 5000 and 5000 shares
of stock without affecting the price
TO any great degree.
The accumulation Of so much stock
in a quarter where it escaped the notice
Of the large traders practically cleaned
up the floating supply and opened the
way for the rally that ensued On the
advance the stock displayed a strong
technical position. and as its intrinsic
merits have since the publication Of
the annual report begun to receive
recognition the professional elements
showed an inclination TO follow the
movement. although in its initial
stages il took them completely by sur
prise.
Northern Pacific took rank with
Reading in the forefront of the mar
ket's premature advances. The stock
was scarce and the traders were fOr
that reason well disposed toward it,
even those among them who knew of
no other on which 70 base expectations
OF q rise.
That there were other and more
weighty reasons was believed IN quarters
usually well informed, though the exact
nature Of these was not disclosed by
any one competent u speak with au-
thority. The supp0siti0n was that at the
forthcoming meeting the directors would
declare an extra dividend in addition TO
the regular quarterly distribution of is
per cent but there were different versions
OF this story. some asserting that the
extra would be OF pretty large size, 20
represent some special transaction. while
others said that it would be made sup
Elemental TO the regular per cent. so
long as the business Of the road justi-
fed payments at a higher rate than
that N present distributed
The method Of increasing the amount
OF distributions 20 stockholders by add
ing an extra dividend 20 the regular
rate has been followed by many com
panius at times when earnings were so
large as 10 eutitle the holders of the
stocks 20 larger returns but such uu-
certalutes surrounded the business sit-
uation that directors thought il q part
OF conservatism 10 make u clear that
maintenance OF the increased payments
would be contingent on the continuance
Of existing conditions in the business
situation,
The market did not live up 10 its early
promises. From the start IL was a fore
gone conclusion that it could not do so
That any interest tried TO start a bull
movement under the circumstances was
rather a serious oversight. or a strong
misunderstanding of the facts III the
United States. Allegations had beeu
made by StuyytSant Fish which were of
q serious kind, and while these had not
been substanuated. neither had they been
refuted and so long as they went unre-
futed It was impossible that the market
could ignore them for long
That it seemed 70 ignore them In the
first hour may have been due 20 cxpecta-
tion that official refutation w0uIG be
forthcoming, for it seems hardly admis-
si0ie 10 attempt 10 argue that the street
had failed TO notice what Mr. Fish had
said, or 10 grasp its seriousness. Wall
street is in no mood 20 eondone such
abuse Of official power as Mr. Fish
charged, and If the charges could be
proved. the effect on sentiment would
undoubtedly be very disturbing
One Of the principal considerations that
induced investors to buy stocks In the
past few months was that whatever
might have been the faults of corporate
management IN the past the events Of
the last year or two had taught the ne
cessity Of reforms, and that there was
now entire freedom from all sorts Of ir-
regularities.