The Washington herald., 1907-09-05
REACTION In MARKET
Prices of Active Stocks Near
ly ALI Show a Decline.
HEAVY AT CLOSE OF TRADING
Smelling one Of the Weakest Issues
Despite Excellent Report just Made
PubIic-Advance in Price OF Wire
Products AnnOuRced-UnfRvO
Weather Causes Rise I'm Wheat.


began in the market this afternoon con-
Jinued during the session, reducing the
price OF nearly all the active stocks con
siderably from their recent high level
Irregularity was displayed in the Amer
lean department in London, aud the ini-
tial quotations here showed the same
characteristics.
Almost from the opening the course Of
prices was downward with some OF the
houses that have achieved notoriety by
their operations on the short side Of the
market most active among the sellers of
stocks. Shortly after midday prices
hardened somewhat and a moderate de-
gree Of frmness was maintained until
near the end of the session. when a
further reaction occurred. The close was
heavy.
The only item Of news of an unfavOr-
able nature which came out during the
day was the announcement OF the ap-
pOintment of a receiver for the Union
Iron and Steel Company. a small and
UnimpOrtant concern which never was a
factor OF any consequence in the trade
and whose credit never was high. The
failure. however. was availed OF as a pre-
text for the circulation of rumCrs Of
other troubles to come, but while the old
story Of difficulties in the wholesale dry
goods trade in New York was reiterated.
il was stated that this contained no more
truth In its newest form than when il
was first put forth. many weeks ago.
Smelters show Weakness.
One Of the weakest stocks on the list
was American Smelling and Refining, the
decline apparently being the result OF a
professional profit taking. as no cause for
il could be found In the aanual report
since the figures were regarded in all
good quarters as proof that the company
is not only enjoying highly prosperous
business. but is in all respects in very
strong condition
The years earnings amounted 10 3d.
25045S an Increase of Si,5S4,173 as com
pared with the preceding year The in
crease in net was S1,34S.311, and the sur
plus after the payment CT the dividend
on the preferred stock was equal 10 12S2
per cent on the common. Another es-
pecially weak feature was Interborough-
Metropolitan preferred, this issue being
affected by the resumption OF the public
service commissions investigation Of local
traffic affairs.
The declaration of the regular divi-
dends on InterbOrough-Ra Rapid Transit
stock was misunderstood by some OF the
traders, who mistook it for dividend on
Interborough-Metr preferred, and
began bidding for the latter, causing a
sharp rally, which, however, was quickly
lost again when the mistake was dis
covered.
Perhaps the principal reason for the re-
action was the realization that the re-
ports Of easier money conditions on which
Tuesdays rise had been largely based
we're somewhat exaggerated. The rate
on time money was reduced but the
amount Of funds put out at the lower
level was comparatively small, except.
possibly in the case of one institution
which loaned as much as S1,OO0,0OO for
six months at the rate of 8 per cent
Money is still hard to get and the time is
by no means at hand when even mercan-
tile interests can count on obtaining their
fun requirements at moderate rates.
Fear Tight Money Market.
In the prevailing circumstances any
prolonged activity in the market on the
side Of advancing prices would speedily
bring a recurrence Of the worst conditions
felt in money last month. and make the
position Of those engaged in speculation
rather uncomfortable. Regarding the Al
ton matter. the opinion is strongly enter
tanned by interests in the road that the
company will yet be granted complete I'M
munity, their view being that the present
delay is IN difference to the wishes of
Judge Lands. without in any way COM
promising the Department Of Justice in
the attitude which it has heretofore taken
that the road and its officers are exempt
from prosecution on account Of the evil
dence furnished In the case against the
Standard Oil Company
A matter OF more consequence as bear
ing on the iron and steel trade than the
failure OF an insignificant concern was
the advance in the price Of wire products
by the steel corporation, and the report,
apparently well founded that orders for
rails were coming IN faster than a month
ago.
The weekly weather report was rather
unfavorable and resulted in further sub
stantial advance in the wheat market
The ease in exchange and the low open
discount rate in London testified 10 the
improvement in the situation abroad and
the probability That New York might be
able 10 arrange loans in Europe.