The Washington herald., 1907-05-22
WALL STREET NOTES
Bulls on Smelters Spread 10
Per Cent Dividend Story.
MARKET TENDS TO Low LEVEL

/ Prices Decline Under Onslaught of
Those Who Believe Conditions Are
Not Favorable for Bull Attacks.
FnIrIy Good Strength shown Until
| Steel Weakens Before Attacks.
/ New York. May 4.-Undismayed by the
/ fact that the stock was the weakest on
! the list. the bulls on Smeltors cheerfully
reiterated the most optimistic kinds Of
views on the stock The situation in the
market. they said could have no bearing
/ on the matter of an increased dividend
land Il was practically decided that the
rate would be increased when the dircc-
/ tors meet to take action on the question
next month. The highest rate ever
/ talked of, Il was asserted, would be
/ adopted There would be no compromise
on an per cent rate as had been ru-
mored. but the stock would be lifted az
orca from a Z to "a 10 per cent basis All
/ this was very alluring bui the traders
naturally asked why. if it was So the
stock did not receive better support. To
/ this. the answer was that there was real
| ly the best kind Of buying but that the
insiders did not want TO advertise the
/ fact being more desirous of securing a
bargain than Of advancing the price.
/ II the insiders in Smelters did not want
]
ing. there was no reason why they should
allow il 20 become known that il was the
/ intention to place the stock ON a 10 per
cent basis IN the near futIre. I've are
/ buying but do not want it known WAS
not very consistent kind of assurance.
and vet It passed very well with some Of
/ the traders who prided themselves on
being made the recipients OF n quiet
and confidential tip from the inside.
/ But while section Of the trading element
/ was impressed with what they heard,
the majority of the fraternity made little
/ secret of their scepucism.
/ What most impressed them. they said.
was that there was a good volume Of sell
/ ing. the source Of which they Were unable
/ 90 locate Either bear selling or liquida-
/ tion ON "a pretty large scale was iu prog
/ ress and they were not able 20 determine
/ which. Nor did it make such difference.
according 10 their views If liquidation.
I either some interest knew Of some reason
why the stock should work lower. or was
/ compelled by some necessity To convert ils
/ holdings into cash. TT bear selling. tIre
must have been some strong reason rs iu-
q .rr# 4 fHH.
/ freely 90 the short side of such narrow
and heretofore well protected specially.
/ Reasoning this way. quite a good proper
/ tion of the professional element took the
/ bear side. although the more general dis
position was TO leave tna stock alone.
/ Assuming the entire truth Of the huu
rumor about "a l0 rer cert dividend rate
/ fer American Smelling and Refining. prob
ably am utterly unwarranted assumption.
/ the question arose was 'ls 10 worth while
/ for the bun interests tr IRE off their ann
muniti0n 40 the stage Of the fight reached
/ this morning. when IL could not possibly
save the day for them ana when the only
effect would be TO leave themselves with
cut supply for the time when good use
. could be made Of it.'
Considering the matter wholly from the
standpoint Of speculative utility. answer
60 this would probably have been made in
the negative. There was. of course. ON the
other side the advis4 biEty OF notifying
/ holders If the stock of a matter of great
. interest which might encourage them 20
retain their holdings 10 time when en-
. couraCement wag especially needed on ace
q I'D.
such notification wouIj Doe as praise
worthy as .t is unusual but that the pre-
dietion regarding tls dividend rate was
not of that kind, is clear, for it was
made TO speculative interests instead Of
90 the legitimate holders OF the compauys
securities and it lacked the hallmark of
official sanction.
At the end Of the first hour. quite
little comment was heard around the
street of a nature favorable 90 the bun
side of Union Pacific based on the fact
that under 1885, the stock seemed % find
good support, on the indications of a
broadening demand for IT, despite the
further rise in the grain markets II was
the first ray Of hope some brokers said
that they had seen in the market I'm a
couple Of days. but it proved "a trarsitory
hope that made the disappointment all
the greater when Just about midday. the
prices wavered and then tumbled
The support that had been expected 90
stay the decline proved Ineffective, and
the pent-up force Of inCessant hammering
made itself felt in downward rush that
carried the whole market down So close
to- the low levels Of AiaTch last as prac-
tically 20 demor3lize the few remaining
bulls. Stop orders We're caught on tho
way down. and many insiders. who bad
been advised when the stock last sold at
about this level that an important up
| ward movement was about to be under
taken. and who had Overstayed their
market with purchases made. then threw
over their holdings when their profits
had about been wiped out and they found
themselves confronted with possibilities
OF losses.
Southern Pacific acted but little better
than Union Pacific, being affected by
liquidation Of speculative accounts. opened
some weeks ago when there were rumors
that the stock would be placed on a 6 per
cent dividend basis in August. Since that
time. a statement of the estimated gross
earnings for the fiscal year has been is
sued, which was not Cf a kind 10 sustain
! expectations Of increased disbursements TO
stockholders and the directors have de-
parted from their original policy Of declar-
ing dividends only semi-annuslly and have
declared cne for the quarter az the regular
yearly rate a very fair intimation that
an enlargement of the regular dividend
need not be expected
Il has been pointed out that the addition
Of rights worth more than one per cent of
the years regular dividend win give the
stockholders in the present calendar year
the equivalent Of more than 8 per cent on
their stock, and this may pave the way
fer the establishment of fat 6 per cent
a year hence, but the Spectators who
fought the stock in the expectation of an