The Washington herald., 1907-05-03
LOCAL FINANCIAL GOSSIP.


Capital Traction 5s. Of the 1897 issue,
were listed yesterday on the washington
Stock Exchange, ana Immediately there
was a scramble for them. Bids for the
bonds and the rights started IN with
vim The bonds started az about 1oz.
being rapidly bid up 10 1o7, and finally
to 1854. This brought ont a number OF
offers and sales were effected, bringing
the bid price down TO i07, At the prices at
which the bonds were sold yesterday the
holders win realize about sl6S on each
Slo0 invested According TO the plans Of
issue each holder of stock. 10 the amount
of about twenty-five shares, viii have the
right TO take one $3.50 bond. Yesterday
scrip upon these rights also was exten-
sively dealt In by the brokers,
Aside from the excitement attending
this cutting Of the melon. little was done
on the exchange. Few orders were
filled in the other issues of railway bonds
and some Of the listed stocks.
Opinions on the New york Market.
G. Bowie Chipman, of T. r Chapman x
Co.-''To-day's was by far the best mar
ket for some time. Prices showed more
resistance and the upward movement was
resumed Ia many securities recently more
or less dormant Union Pacific was again
the leader, with Southern Pacific the Hin
stocks, Reading, Shelters, and some Of
the other speciaIties as good followers.
The closing level shows considerable inn
provement over last night. the final prices
-fg 90 T.sr-
To account for the activity and advance
in Union Pacific may be mentioned that
of rights, in which both the common and
preferred would share. and on this the
preferred became active and advanced
about seven points. There was talk Of
holding company. with an issuance Of
either participating stock or bonds. gratis
10 holders Of common stock, and a rumOr
that the dividends on Union Pacinc com
mon would be declared and paid quarterly
instead Of semi-annuauy. the rate remain
ing the same as al present For several
days prices of almost all active stocks
has been swaycd largely by the course OF
Union Pacific. Should developments take
place OF sufficient Importance and magni-
tuds TO warrant considerably higher
prices for that stock. the market would
respond quickly with further gains
Herbert L. Jones. Of A. 0. Brown d
Co. There is still a fair short interest in
several OF the principal stocks, and 1t
looks as If covering would be forced at
higher prices"
Benjamin Woodruff. Of Post & Flagg-
THE market again showed a firm tone
with decided strength and activity in
Union Pacific, which continues 10 De a
loader Various rumors are ahOat regard
ing the property. Many believe that the
strength IN the stock foreshadows imme-
date steps IN the formation of a holding
company to take over the treasury stock
OF subsidiary corporations with c0nse-
quent valuable rights 10 the Union Pacific
stockholders. Others believe tuat il Is
merely manipulation under Mr. Keene's
adroit handling for the purpose Of the ben
ehciaI effect Oh the rest OF the market
and 10 force the shorts in Union TO cover
Il is hardly probable that any holding
corporation VIII be formed. Such an cut
come might result from an adverse de-
clsiOu of the courts on the right of the
Union Pacific 10 hold Southern Pacific
stock, bur this would be long In the fu-
ture. and it Is not probable that the con-
trolling interest I'm Union Pacific would
now make such a move as the formation
Of a holding corporation. which might in
the end prove unnecessary. Whatever
the cause. Onion Pacific has made ad-
vance of u points IN two weeks, with
hardly any reaction on the way up. which
shows that there is no large supply OF
stock 20 come out on any improvement
The advance IN 9'ni0n Pacific preferred
was made chiefly by two traders on the
floor. and W8s not difficult in q closely held
investment stock OF this character. Its
purpose may have been TO lend color 10
the story of the holding corporation.
Southern Pacific was strong in sympathy
with Union Pacific. Reading and Copper
continue 20 be the two other active stocks.
The latter is strong on the recent high
price for the metal in L0ndcH and the
undimiuished demand for IT, The market
continues 10 look Ike d purchase on re-
actions"
J. b. Weed. Of Dick Brothers & Co.
'''rhe 0nening market was irregular and