The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-08-17
TWO STOCKS SUFFER
AlliS-ChalmerS and Metro
pOlitan Take Drop
TAFT SPEECH IN WALL STREET
Pears Use Alleged synopsis of Sec
resary's Address to Renew Attack
on Prices-RearrRngem of Trac-
tion Relations in New York Now
Believed TO BE Under Way.

New York. aug. 16-Prlces at tho open
ing Of the market to-day were generally
higher than last nights closing level,
advances in a number of issues running
10 a point or over, and with the ex-
ception Of a few stocks. the tendency
during the forenoon was upward, not
withstanding considerable diminution in
activity as compared with some recent
sessions.
The most notable exceptions TO the
general tendency Of the market in the
first two hours were furnished by the
stocks of the Allis-Chalmers Company
the preferred dropping from p to l5l4
and the common from 10 to 4. while
Metropolitan Street Railway opened al
%, a decline of 40 points from the last
previous sale on July ?; and Tor some
time after brought 10 better bid than
2 The decline in the Allis-Chalmers
stocks was accompanied by rumOrs re-
hecting on the financial position of the
company. but these were officially denied,
the assertion being made that the COM
pany's assets were equal to double the
liabilities and while the working capital
was hardly equivalent to the require
ments of the present enormous volume
OF business, the situation in this respect
was about to be relieved through the
payment of u subscription by the syndi-
cate which underworld the company's
bond issue about year ago and through
receipts from other sources on account Of
s14arhfrar,- and anna TINS sold
RumOrs About Metropolitan.
The amount of Metropolitan actually
sold was very small, but there was an
almost total absence OF buying power. and
the sensational declines IN the stocks gave
rise 10 a reoccurrence Of rumors pre-
viousiy heard TO the effect that a read
justment OF the relations between the
various traction systems in this city was
under consideration. The Metropolitan
Street Railway is leased to the New
York City Railway Company under terms
which Oblige the latter 10 pay TO the
former a rental equal 10 Z per cent on
Metropolitan Street Railway stock, and
there has been some question whether
the terms Of the lease really constitute a
guarantee Of the Metropolitan Street Rail
way per cent dividend. although in most
quarters it has been cOntended that it
did.
On account of the weakness in the Al
disclaimers issues and in Metropolitan,
and the fact that there appeared to be dis
tribution of stocks brought on Friday for
the purpose Of protecting the market, the
traders thought the early advance could
not be maintained and seized upon what
purported 20 be a synopsis Of the speech
10 be delivered by Secretary Taft at Co
iumbus on Monday as a preJext for d
renewed attack on prices on the ground
that the rumOTs of a change of the gov
eTnments policy toward corporations were
wholly unfOunded.
Prints Alleged Synopsis of Speech.
This alleged synopsis of BIr. Tafts
speech was published by one of the Wall
street news agencies at about noon and
was so detailed as to leave little doubt
in the minds of t!4e average trader that
it was based on acute knowledge of the
points to be made in the Secretary's ad-
dress.
Another factor making for the decline
in the market was the reduction in the
rate dividend on the common stock of the
Federal Mining and Smelling Company
from > per cent to 3 per cent for the
quarter, the result probably of the decline
in the markets for lead and silver and
the change in the rate Of distribution was
regarded as an interesting side light on
the weakness in the stocks OF the Ameri-
can Smelling and Refining Company.
which indirectly controls the other con-
Germ.