Los Angeles herald., 1907-12-19
NEW YORK STOCK
AND BOND MARKET
BY Associated Press.


NEW YORK. Dec 1S.-Ths heavy congestion
of today's dealings in few stocks pointed
Enthusiastically to the professional character OF
the market. This was particularly marked IN
Reading, In which orders for many thousands
OF shares were executed from single houses.
The fact that action was looked for during the
day on the dividend on this stock added TO the
interest In the large transactions. Reading S
aggressive upward turn after early weakness
affected the tone of the wheat market in
sympathy and this was partly due to the
covering of a professional short account which
has been built up In the last few days in
connection with tbs talk Of the difficulties to
be met in conforming to the law against own
ership of coal mines by the railroad com
panles, which goes into effect May /. The
stock reacted the regular dividend decla-
rstion
New York Central was an Indifferent sharer
in the general upturn N sspite Of the refuta-
tion of recent unfavorable rumor5 by the
declaration of the quarterly dividend at the
6 per cent rate inaugurated at this time last
year. This action was foreshadowed by the
declaration of the extra dividend yesterday
on Lake Shore and Michigan Central, the two
principal subsidiary companies OF the Cen
tral. The good impression made by the main
tenance Of the dividend rate was modified
u some extent by consideration of the earn
cings statement of the companies.
Even in the case of subsidiary companies
the extra disbursement left the surplus show
ing much below the standards of those COM
panies without the expansion Of the parent
company's other income which resulted from
these extra disbursements the ability to
maintain the dividend rate out of current
earnings plainly impaired. Not only the
increase in operating expenses for the last
year far outstripped the growth in gross earn
ings, but the addition of new capital during
the year has enhanced the dividend require
ment an earnings even at the unchanged rate.
The effect of the dividend declaration, there
fore, was not notably favorable to the stock
The favorable effect on Pennsylvania Of the
increase in that company's dividend was
scarcely greater. On the other hand, more
particularly 1t was quite weak on the circu-
lation of rumors throwing doubt on the main
tenance of its dividend at the present rate
One of the days events that relieved the mar
ket from some pressure was the relaxation of
the tension I'm ths call money market The
high rate was IL per cent and there was q
recession from that in subsequent loans
There was less calling OF loans by the banks
and holders OF stocks were freed to that ex-
tent from the pressure to sell. Yesterday there
was an active demand for remittance by this
method which ascribed to approaching
obligations to be met at the end Of the year
in that market 10 foreign holders of stocks
and bonds for dividends and interest
A rebound of the London price of copper
and tin was of some assistance TO stocks
nected with the metal trades. The London
money market was helped by the release Of
funds held in the Bank of England. The
German money situation and the means to
meet the year end requirements in that mar
ket afforded anxiety in other financial centers
In spite of the activity and mobility of a
few stocks the mass of the securities was in
ert and neglected.
Bonds were irregular. Total sales. 81 1922. 000
Government bonds were unchanged on CALL