The Washington herald., 1907-10-18
WALL STREET NOTES
United Copper Trouble Clears
Up the Atmosphere.
STEEL COMMON AT LOW MARK
Rumor that Standard Is Purchaser
of Union Pacific Not Verified.
RendinE One of the Weakest Is
sues in Railway LiSt-ActiOn of
AmaIgamated Directors Approved.

New York. Oct. 1.-THE market still
suffered to-day from the effects of the
miserable United Copper affair, but its
recuperative powers We're such that il
was able TO make progress in spite OF
that adverse factor. What occurred real
ly tended to promote the financial health
Of Wall street
A canker spot had been removed with
out leaving much of a wound, and the
healing process had already begun. OF
course. holders Of United Copper stock.
fortunately they are few in numbers, are
likely to retain for long time bitter
Irecollecuons Of recent occurrences, but
outside Of this. the financial community
viii soon forget the whole matter
The very interesting point was made
that United states Steel common sells
on basis where its prices do not greatly
exceed the amount OF cash working capi-
tai now owned by the corporation. The
cash working capital has now crossed the
Sl0O 100000 mark, and at 20 for common
stock, the aggregate market value of this
issue would be but little over $100, 600. 900,
while the other assets, ignoring good will,
exceed by far the par value of the bonds,
the preferred stock and all other out
standing securities A good deal OF the
buying of steel which held the stock
relatively strong through the break,
caused by the United Copper disturbance,
may have been for the covering Of shorts.
f,rrr 80 f,o "a, MT rarca~c
why this issue might not have been
wholly neglected by investors.
There was a good deal OF talk about
Standard oil buying in Union Pacific,
but some Of the traders doubted II the
buying orders, supposed to have come
from 26 Broadway, really originated
there. The theory OF the doubters was
that there was manipulation to force the
short interests 10 cover, and that one
Of the devices OF those in charge OF the
operations was to place orders in way
that would give the buying very sig
nihcant appearance.
Rumor took its cue from the supposed
character for the buying Of Union Pa
cihc. and asserted that Mr.. John D.
Rockefeller had bought a good line OF
Reading and other issues, but very few
traders were inclined TO believe these
stories
Reading was. during the forenoon. one
Of the weakest OF the railroad issues, as
a result Of liquidation by SPECTATORS. who
had Joined the premature attempt 10
make a buIIsh demonstration in the
stock earlier in the week. Those who
were forced 10 sell. endeavord to stlffen
the market for the stock by circulating
oil sorts Of favorable rumors. but no ar
gumeut they could bring to bear had the
least effect, so long as the selling
pressure continued undated. About
noon the liquidation appeared to have run
Its course, and thereafter the stock gave
better account Of Itself
While the bulls talked of Standard Oil
buying IN the first hour. the bears conn
tered by predicting that the dividend on
Amaig3m3ted Copper would be passed
This was q wrong move for il practi-
caIiy put a time limit on bearish opera
ticns. The meeting of Amalgamated
Copper directors for action on the divi-
dend question was scheduled for 2I5
o o'clock in the afternoon. and this left
ample time for the announcement OF the
result TO be made before the market
closed But it was not necessary &c
wait for the official announcement. for
before the meeting actually convened il
became pretty generally known that the
directors were in favor Of a declaration
at the rate Of 1 per cent a year, and
therefore, when after the meeting il was
officially stated that distribution OF /
per cent for the quarter had been au-
thorized the publication of the fact found
rally in the market already in fun
swing. The activity on the upturn was
greater than on the previous . advance
for quite some time, and, altogether. the
rally was the most vigorous seen re-
Gently.
The action Of the Amalgamated Copper
directors in making the dividend rate /
per cent was everywhere commended as
conservative. and the general sentiment
was that this would not have been done
unless it was confidently expected that
the new rate could be maintained under
almost any circumstances that need be
apprehended. II, following the announce
ment Of the dividend. the stock reacted
slightly, this was probably more the
effect Of realizing on the news than of
disappointment over what the directors