The Washington herald., 1907-12-19
WALL STREET NOTES
Favorable Stocks Strong in
Divided Market.
MUCH INTEREST IN RAILROADS
Dividend Announcement of New
York Central Greatly Pieases the
Contracts that ROnd Has Assumed
L. $. Steel and RendinE Up.


New York. Dec 1S.-The market to-day
divided itself into two groups-stocks
that were under suspicion and those that
were not. The latter were strong. the
former We're otherwise
This division of the market disregarded
the unusual lines, dividing the railroad
stocks from the industrial issues. and
assembled in one group all securities that
were in no danger from dividend reduc-
tions.
United States Steel, Reading. and the
Hill stocks. none OF which was under
suspicion of a dividend reduction, were
the strongest features, and their influence
in time became so great that even the
weakest members of the other group
could not entirely resist It.
The most important news Of the day
was the announcement that the directors
of the New York Central had DECLARED
cash dividend for the quarter az the
rate that has been in effect during the
past year
Some of the bears tried TO make capital
out OF the argument that the good news
on the New York Central was now al
out and that before long the company
would be obliged 70 announce a plan 20
raise new capital TO carry on the various
enterprises in which the company has
embarked.
To their modification, the bulls made
no attempt TO contest the point, 5ut
merely took the ground that as every
| body knew the road was engaged in max
ing tremendous improvements. calculated
to enhance its efficiency and increase its
revenue, presumably everybody knew that
the work would have TO be paid for.
While the immediate cause OF the mar
ket's advance was its oversold condition.
there was a substantial underlying factor
known only 20 a few that would have
caused rise before long. even if the
technical conditions were not as strong
as they were at the opening Of business
to-day.
This was the loosening up Of funds In
the hands Of out-of-town institutions. in
creasing the supply OF money available
for Wall street operations. This has not
progressed very far, but that IL has
begun is fact testified TO By the highest
financial interests in Wall street
Leading bankers do not seem to share
the popular apprehension Of very high
money rates at the end of the year. They
do not expect that conditions will change
greatly before December 81. but while
they do not believe that rates should
decline much they have at present no
reason TO anticipate furry.
OF course. a good deal will depend
upon the extent 80 which speculation IN
stocks may be revived, but, assuming
that this should be Kept well within
bounds, the year would probably pass out
without recurrence or the stringency
that marked the end Of December in
recent years.
The announcement OF an increase of a
dividend Of the Pennsylvania removed
one of the weakest features in the mar
ket- This company occupies the position
similar TO that occupied by Lake Shore
in the Vanderbilt system, and all its
stock is owned by the Pennsylvania Rail-
road which IS, therefore. the sole bene-
ficiary from the change in its dividend
rate.
Pennsylvania was one of the weakest
stocks on the list in the first hour. but
responded to the favorable news. the
effect on sentiment being proporrioned
TO the prominence which this issue OBJ
tains from representing the premier
American railroad. and a body Of stock
holders larger than any other American
corporation with the exception of United
States Steel
Reading contributed nearly 40 per cent
of the business. but beyond the evident
fact that there was good deal Of cover
ing Of shorts the source Of the enormous
demand for the stock could not be deter
mined
For days past Reading has figured in
the dealings 20 an extent that cannot
be explained by any known circumstances
nor has the reason been suggested by
any rumors IN the street.
Such enormous operations mus, mean
something Of consequence. but among the /
traders opinion is divided as 70 whether
there has been accumulation in anticfpa- |
ton OF some favorable news, Or the stock 1
has been made active in order that
liquidation could be conducted on a salts I
factory basis.
declared the regular semi-annual diyi- /
dend on the common stock.
Atchison keeps so close to its low rec
ord for the year that rumors of a reduc- /
ton IN the dividend have become a kind /
OF continuous performance. but the divi-
dend period is so far of, it seems un
likely that apprehension in regard 10
that matter can be the real cause OF the
weakness in the stock at this time.
Notwithstanding some rather heavy
covering of shorts, Amalgamated Copper.
which was about the weakest stock in
the early dealings. responded in only a
very moderate degree to the general
strength during the afternoon.
Il closed without net change on the
day, although some other industrials.
like Distillers and New York Air Brake
scored very substantial gains.
H0TT0N MADUEn