The Washington herald., 1907-06-20
TRADE IS DEPRESSED
Foreign Markets as LiStleSS
as Those on This Side.
READING COMMON IN DEMAND
Directors Postpone Action on Diyi-
dend Until July I7-MissOuri Pa
Island Issues Firm, as the Earning
Power of Line Is Considered Great.

New York, June l9-Inertia was again
to-day, as it has been throughout the
week thus far the prevailing character
istic of the security market, and dealings
in stocks were less than they have been
at any time since Monday. The foreign
markets were like our own, neglected and
apathetic, and there was nothing in the
days developments in any quarter to
modify that utter llstlessnsss Of specu-
lative temper that has for several weeks
been the dominant feature in financial
affairs.
The market was depressed here in the
early part Of the day. but rallied later.
leaving a final exhibit of advances and
declines in the prominent stocks, which
We're in few cases more than fractional,
and nearly half the days total business
was composed of transactions in the
Reading common shares. A special pre-
text for the days dullness commonly as
signed IN stock exchange circles was. of
course, the fact that the directors Of the
Reading Company were 20 meet during
the day for the purpose of declaring
dividends on the companys different
stock.
Interest naturally attached only TO the
probable character Of the declaration as
regarded the Companys common shares,
and as it was understood that news as TO
tie directors action would not become
public until late IN the afternoon, a reason
for some real moment was perhaps 70 be
found in the circumstances foT hesitation
in market ventures by professional oper-
atOrs
Dividend Matter Postponed.
Some months ago confidence was gen
orally felt that at the present time the
semi-annual dividend on the Reading
common shares would be advanced from
2 10 3 per cent. These anticipauons were
afterward generally dissipated, it being
presumed that the Reading management
would not, under existing conditions, /
choose TO enlarge their dividend distribu-
ton. although the company's earnings
amply warrant an increase.
There was, therefore, very considerable /
surprise in the financial district when /
just before the close of business hours, II I
was made known that the Reading direc- /
TOTS had taken no action on the dividend 4
question az their meeting to-day. but had 4
postponed consideration Of the subject /
until July IT,
This obviously implied, what afterward 1
became established as a certainty, that /
there was a party in the Reading direc /
t0rate favOring an increase in the divi- /
dend on the common stock. and left it an /
open matter whether such an increase !
would be ordered a month hence.
While no one would describe the days /
stock market as other than torpid, indi- l
cations were not wanting Of a change Tor .
the better in the general financial under
tone. An unusual degree Of resistance !
was presented by the market when efforts |
were made to break it i'm the morning,
and on the succeeding rally stocks showed 1
a good deal more residence than they /
have done previously tOr some time.
It became apparent upon this recover
ing movement that IN certain stocks, at
least, selling orders were not present in /
the market In any quantity. while there
was continual evidence Of slight signs Of /
the progress Of an investment demand /
for various classes of securities.
Missouri Pacific Advances.
Missouri Pacific stock, a security which
might not be supposed TO be in small
supply in Wall street. closed to-day at
net gain of 12s points on purchases Of but
$50 shares. Union Pacific stock was alb
sorbed in quantity when its price touched
131. Orders to buy a relatively small
quantity Of the Chicago, Burlington and
Quincy joint 4 per cent bonds advanced |
the price Of this issue a full point, and
Ha 9th (
that has been in evidence for several
DAYS past In the various Rock Island
bond issues.
The strength Of the Rock Island secur-
tiles is doubtless due 20 a growing i'm
preston that there has been an under
rating lately Of the actual earning power
Of the Rock Island system. Compilation
Of the results Of the company operations
for the current fiscal year show that
nearly II per cent has been earned upon
the common stock of the old Chicago,
Rock Island and Pacific Railway Com
pany, whereas only a little more than
one-third Of these earnings are necessary
20 pay the interest on the collateral trust
bonds now outstanding covering the 1
stock
In the case Of the Chicago, Burlington
and Quincy joint 4 per cent bonds an
idea is extending that the same reasons
that led TO the abolition Of the control of
the Chicago and Alton system by the
Rock Island and the Union Pacific COM
panies may operate 20 cause a similar
REIMBURSEMENT of the joint ownership Of
the Chicago. Burlington and Quincy Rail
way system by the Northern Pacific
and Great Northern Railway Company.
The engagement Of S7.500001 gold for eX-
port 20 Paris attracted but small atten-
tion, although it was doubtless response
bic for an advance in the call money
rate to 3i5 per cent. Wheat prices
fuctuated nervOusly to-day, weather re-
ports from the agricultural section be- /
ing uniformly favorable
i is becoming more and more plain,
however, that factor whose influence
viii be largely determined as regards the
price of wheat this year viii be the ]
shortage in the foreign crops.
Finally. much more cheerful views were
expressed to-day in high financial quar-
tcrs regarding the probable outcome of
the semi-annual foreign financial settle