The Washington herald., 1907-12-05
WALL STREET NOTES
Activity in Reading Puz-
zling to the Traders
LEADER AMONG COAL STOCKS
RumOrs of Segregation of Railroad
and Mining Interests Find Little
Credence in the Street-Large short
Interest still Manifest In Market.
Bank Statement Call welcomed.

New York. Dec. 4-The great activity in
Reading Is as mucn Of a mystery now as
when il first became feature OF the mar
ket at the beginning OF last week Yes
terday the company made highly ia
yorable statement of earnings for the
month of October. and further testimony
to the prosperity OF the coal trade was
afforded by an equally good report OF
Delaware and Hudsons results for the
same period But this. of course. did not
explain why Reading has been in so
much greater favor in the market than
the stocks Of the other anthracite COM
panies. Other explanations have been at
tempted. such as the alleged plan for the
segregation Of the coal properties from
the railroad, Involving the distribution TO
stockholders Of some form of security 10
represent those assets. There was also a
revival OF the rumor about an increase in
the dividend on Reading common stock
But the segregation yarn has already
been discredited. and in good quarters it
is said that while general conditions re-
main as they are, the question of an in
crease in the dividend is not likely TO re-
ceive favorable consideration from the
board.
In the market as a whole. there is still
a large short interest. Rumor says 9TH
erwise, but investigation shows that ru-
NOR is wrong. Almost every broker ap-
pears 10 be OF the opinion that the shorts
have been driven In. but when it comes
to saying how his own house stands he
is more than likely to make the admis-
sion that some OF his customers are short.
adding with an air of confidence that
some of them have only taken that side
on top Of this rise, and that while the
others have been short from the consld-
erably lower prices they are not worry
ing and can afford TO wait. There is un-
doubtedly large short interest of both
these kinds in the street, and so long as
this remains the case. so long will opera
tors on the bull side find the means and
the incentive 10 continue their operations.
As expected American Smalung and
Refining directors declared the resulor
dividend on the stock. but the announce
mont produced an unexpected effect. the
price quickly dropping to 7i4 "a decline
Of points from the highest Of the morn
ing. and of points from the high figure
Of the preceding day The decline ap-
pc5red TO be helped by a bear raid
The Hin stocks that had been Iaggsrds
for day or two became the leaders on
the advance. and acted in a way that set
almcst everybody in the Street guessing
as 10 the cause of their great strength
ana unwonted activity. Under the cir
cunistances it was not unnatural that a
great many gave credence 10 a rumor
that the long talked Of distribution 10
stockholders Of Northern Pacific would be
made before long A % per cent extra
dividend. paid In cash was what Was
spoken Of. and the bulls on the stock did
not fail to remind all inqulrers that ere
tofore Hin melons have generally been
distributed about Christmas time
The Street welcomed the call OF the
Comptroller of the Currency for a state
ment of the condition Of the national
banks Of the United States Of December
3. 1t was expected that the statement
would show a very strong condition. and
that having made their reports institu-
tons that have been boarding money
would adopt n more liberal policy. q : n
result OF which the premium on currency
would soon disappear. Whether from this
cause or some other. the premium on cur
rency was lower than on Tuesday. and
the money situation showed a marked
terdency toward greater ease.
Probably the most definite OF The days
rumors was one to the effect that New
York Central would soon ask the consent
Of its stockholders TO an issue OF pre-
ferred stock 10 an amount OF SlOOOoO.O coo
The matter. it was said, was IN the
hands OF the legal department. its gem
eral outlines having been approved BY the
management OF the property.