The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-21
ENGINEERS.
GOSSIP or WALL STREET.

GOSSIP or WALL STREET.
Prior to the publication of the southern
Paciic earnings there was nowhere an 81.
pectation OF ar Increase in the dividend RAJ,
this year. The theory most generally &C.
cepted vas that the company. having given
to stockholders preferred stock subscri puon
rights worth a bit more than a dollar a share.
was actually paving them o per cent this
year and would defer the increase IN the
dividend rate from ) TO 9 per cent. until 1908
at least. For all that is known that MAJ sim
be the intention Of the management, but the
showing NJ ~ per cent. earned on the common
stock provided a temptation that maLy bulls
found irresistible to predict an Increase IN
4 per cent. at the meeting next month. The
tip was extensively circulated yesterday and
was exploited for market success with good
results. Southern throughout the session dis
playing the create est strength of all the active
stocks. The cement, IL vas NAN.
tanned. would be pursuing no more than
very conservative policy by accepting the
time worn plan OF a dollar for the stock and ,
dollar for the road. There we're many yho
direred with this prediction. but II was pr
forward with sufficient aRGressiyencss ~
indicate that the tip is TO be used AS a maI.cj
lever.
Southern Pacific vas the only active ,tocg
TO display particular strength PRIOR to the
publication OF the bank statement Mos
of the others barely held M until that tine
subsequently there was a fairly iEpressNs
display Of activity and strength. the bull
party taking the increase in surplus as an
occasion for expressing its confidence in tho
money situation.
The bank statement showed a gain Of g. IN.
900 in surplus reserve, making that item
50. Oss, 600. In the corresponding week Of last
year the surplus was $40. 39i 600. so tina, ~
comfort could be secured from a comparison
with last year. II was argued. however. thai
the surplus reported Yesterday was very en-
ging in that it showed a gain for the
third week in succession. The statement.
therefore. was generally considered favorable
Another favorable development Of the day
was an announcement that the General Elec-
trio convertible bond issue had been success.
full. stockholders having accepted the chance
TO secure the Sl3. 600. 900 5 per cent. bonds
convertible after four years at par. General
Electric stock. which has been heavy since
the announcement OF the financial plan.
moved upward briskly. The depression. Il
appeared, had been caused by the selling NJ
stock by holders who wished to take the bonds
instead. With this pressure removed from
the stock it became buoyant and scored a net
gain of 2S points. The success OF the bond
R'o AoN aAc ~ N a1AO AAAo III HtANlnA
sentiment. for it combined with several other
successful note and bond issues Of the hs'
two weeks to renew attention to the gradual
Improvement in the money situation.
Western Union scored a gain OF ~ point,
on purchases OF 700 shares that may have been
for the account Of some Of those stockholders
who w~ereimpelled TO sell several days ago by
the legal proceedings instituted against the
company.
There was not n single transaction in either
Inter-MS. common or Inter-Met. preferred
a circumstance trat was considered singular
in view OF the imminence OF the Public Service
COMMISSIONS investigation into the organi-
zation and operation OF the For
that matter il was pointed out that the com.
pany's shares had sustained practically no
loss in a week in which its affairs had been
very much under discussion. The reason,
a man largely interested in the company said
was that the company's officers were conn.
dent that he courts would ultimately hold
the organization to be legal and that the
company would gain rather than lose from
the discovery OF methods for Improvement
or scceleration Of the service. Very likely
quite as good a reason vas suggested by a
trader. The company has been attacked
so often. he said, that most OF the timid stock
holders must have sold out long ago. The
remainder PROBABLY nave mAOe up tnelr
minds TO pay no attention to legal proceed
ings Affecting it.
Az a general proposition 10 is undoubtedly
true that Investigations or other ~anti-cor.
poration proceedings at the instance OF pub
lie officers have now much less effect in de-
pressing market quotations than they have
had recently. The impression 10 growing"
a broker said yesterday. that the market
has ebundantly discounted all anti-corpors-
ton proceedings that may be brought and
that II has sold on altogether too violently on
actions against corporations in the past
Six months ago traders in my Of e rushed 10
put in selling orders on every fresh announce
ment OF national or State proceedings against
railroads or any other corporations. In
most cases these proceedings have amounted
TO nothing In the way OF affecting intrinsic
values. and traders and stockholdcrs now
realize that they were more scared than hurt
by them. The result is that there Ia much
less selling on an~ti-corporation action than
was the case several weeks ago"
There is a difference OF opinion as 10 the
amount OF outside investment buying in ths
week. some brokers insisting that there has
been no increase over the weeks immediately
previous. others coDtending that there hss
been improvement. IL IL everywhere ad-
mitted, however. that whatever improve
ment there may have been has had little effect
in bringing about the upward movement
On the other hand the position of the market
has undoubtedly been benefited by purchases
from wealthy financiers and investors In this
city. They with others have believed thai
scores OF stocks were selling. below intrinsic
value. but were quite willing, largely on &C.
count OF the one situation. TO defer pur-
chsses until a later date. The opportunity
TO get in at or near the bottom, they felt, would