The Washington herald., 1907-05-10
LOCAL FINANCIAL GOSSIP.


| Capital Traction IS again attracted
much attention on the Washington Stock
Exchange yesterday. While about 5000
Of the bonds were eagerly taken. It was
evident that the supply is running short.
and between the highest price paid on
Tuesday and the highest price yesterday
a full point intervenes. Many of the
4 sales yesterday were above I09 One
noticeable feature of the days work was
/ that Capital Traction stock was bid up to
the real selling price and recorded at 1885,
/ Considerable attention was paid 10
Washington Gas. but at fading prices
It was evident pretty soon after the
/ issue was called that there was some Of
it for sale. and several attempts appar-
entity were made 10 force the price up
again, but CO.'S was the high price for the
day, with some options at 81. Naturally
/ the alleged gas pool came in for much
buheting as the brokers discerned the
tendency Of prices 10 tumble.
Mitchell Mining was in good demand at
about ~. and Graphophone stocks We're
called for In larger lots than could be
supplied.
Opinions on the New York Market.
G. Bowie Chipman, Of E. r. Chapman &
Co.-"The action Of the Union Pacific
directors to-day hurt the market. I be-
lieve its effect will be felt for some time
10 come, though, possibly, the immediate
effect may not cause any further decline
than we have seen to-day. l ana still OF
the opinion that the market is a sale on
all rallies
Herbert L. Jones. Of A. 0. Brown &
Co The announcement Of the Union
Pacific financing plans was not favorably
received, and brought out flood Of sell
ing. despite Mr.. Harriman's figures on
surplus earnings. However. the general
market lost only about point net on the
average for the day. indicating a fairly
firm tone. On any further decline the
good stocks should be bought"
Benjamin Woodruff. Of Post & Flagg.-
The market showed light trading and
littie change until the announcement Of
and Southern Pacific directors, when a
sharp reaction set in, especially IN Union
and Reading. followed by irregular fuctu-
ations. AS yet no specific announcement
Is made as 10 the purposes for which the
Union Pacific convertible bonds are 10 be
issued. or the Southern Pacific preferred
stock. In the former case II is assumed
that the bonds are for the purpose Of
partially financing the purchases Of
stocks Of other railroads made by the
Union Pacific some time ago. and. also,
TO provide for future Improvement; and
the growth Of the Southern Pacific sys-
TEN Is also taken TO be the reason for
the Increase in the preferred stock Of that
road The public is not in a receptive
mood for the announcement Of the issue
OF new securities. It brings too vividly
- mind the deluge Of these announce
ments at the close Of 1906 and the subse-
quent decline in prices. The earnings
however OF both the Union and Southern
Pacific properties are so large and the
expansion Of the system so rapid. that II
Is only fair % recognize that provision for
additional capital from time TO time is
necessary. Nevertheless, the decided
slump In Union shows that the announce
mont was by no means considered a bull
point on the stock Recent crop reports
have been somewhat more favorable The
fractions. notably InterborOugh- Metro
politan, have been heavy on the prospect
of the passage of the public utility bill
The market as a whole. while rejecting a
narrow and professional condition Of
trading also indicates uncertainty as to
the immediate trend OF events"