The Washington herald., 1907-02-14
Railroad and Industrial Lists
Both Show Strength.
ANACONDA SETS A NEW MARK
CopDers Enjoy Boom and Still
Higher Prices Are Looked For.
Union and Northern Pacific Buying
Is Well misunderstanding in
Sugar Causes No Surprise.

10 tO-day's stock market. 1t was almost
exhilirating, and its influence may have
helped TO make the brokers feel cheerful.
At all events, they were inclined TO take
an optimistic view of things. and there
were a number of matters that looked
very well In that kind of light First,
there was the expectation that Congress
would enact wholesale currency legisla-
ton and that the members would then
betake themselves TO their homes with
out doing anything to mar it, as much
from lack Of time as from lack of intent;
then the statement of exports for January
made a very good showing, on account Of
the enormous volume of cotton ship
ments. while the announcement that the
differences between the Pennsylvania
Railroad and its trainmen had been ad-
justed, removed a cause Of uneasiness
that, although never acute, was still by
no means to be disregarded as long as it
remained.
With the burst Of strength in the rail-
road list, in the afternoon came revival
of the story about an advance in railroad
rates. with the modification that those
into whose charge the matter of devising
ways and means had been instructed
We're making good progress toward a
solution OF the difficult problem. Opera
tors who have been contending that the
next movement in the market would
favor the industrialS TO a greater extent
than the railroads, were inclined to mod
ify this view and TO admit that a fair
prospect Of an increase In rates would
F1 oil 90. hi
place in public popularity.
A very interesting statement was made
on seemingly good authority to the effect
that one of the New York banks had
loaned s500G00 in London for sixty days
at > per cent A higher rate than this
could be obtained AT home. but it was ex-
planned that the bank had intended to
purchase gold for import. and that the
change of purpose indicated a feeling
Of confidence that imports would not now
be needed. Rates for time money We're
easier than on Monday and the cali rate.
after being as high as about per cent
early in the day, dropped of to per
cent before the close.
The broadening to-day Of the market
was one Of its most encouraging features.
several issues that had been dormant for
a long time coming in for their share OF
strength and activity One of the most
notable of these was American Locomo-
tive which was tipped for a rise early
and made good to an extent that was
anticipated by comparatively few of those
who had ventured 20 play it, and the
trading element We're much encouraged
by the way the stock and the others re-
sponded to the bull information.
To-day was an anniversary I'm the his
tory of Anaconda stock, and the occasion
was apparently appropriately celebrated
On February 13 1906. the stock sold at
$50 for the first time. and that remained
the high record until on Feburay 49, 1907,
the present movement carried the price
TO 800 Ia. There was considerable profit
taking at the high record level-for some
traders are superstitious. and did not like
the date-but the stock appeared to be
well taken, SO that bullish sentiment in
stead OF becoming discouraged. seemed to
Increase. Some brokers said they could
not see the reason why Anaconda should
sell on q basis where the yield on the
market price was greater than in the case
Of Amalgamated COppeT-a sure sign that
up To the point of enthusiasm. Anaconda
has never sold as high, relatively to the
dividend paid, as has Amalgamated-
probably never Wiil-but whenever sentf-
ment becomes well worked up. the street.
or a large section of it, is ready TO be-
leve that precedent does not count and
that Anaconda may get to a point where
the yield on the investment would be the
same as on Amalgamated Copper.
The sort Of reasoning referred to above
may possibly have been followed by
Thomas ". Lawson when he predicted
phenomenal rise in Anaconda stock. At
all events it would lead to the establish
ment Of 400 as the right price for Anacon-
ia in order that this stock might sell on
the same basis as Amalgamated. The s !
per cent divided on Amalgamatcd is equiv |
alent 20 a return of per cent year on /
the market price of about rs In order /
that the yield on Anaconda should be the /
same, the latter stock should sell at 400
the magic figure in the Lawson dispatches /
But mining stocks do not as a rule sell on 4
basis TO yield only per cent. and the 4
reason why Amalgamated Copper sells |
there is that the cOmpanys properties are /
so extensive that they are not liable to all I
tons Of an ordinary mining concern.
The bond market has been particularly /
active for a long time past, and the bond /
dealers have been at their wits ends how
10 stimulate a demand for their wares.
but it has remained for a Boston banker /
10 devise means that has the merit of /
originality and the more important one /
that il promises success to the extent to /
which it has been applied The bonds I
that are being worked off are those of the |
American Telephone and Telegraph Com /
pany, for which the public does not seem
to hare tumbled over one another. al R
though there can, of course, be no doubt /
as TO their absolute safety.
The Boston banker who owns a block of 1
these bonds has. however. made an offer
20 buy stock OF a steamship company and
10 pay for it in the telephone bonds The
holders of the steamship stock have held /
Il for investment When they give it up
they VIII get bond that they can safely
keep for investment and everybody will
be satisfied
The rise in Northern Pacific was rather
overdue. and when it started II showed in
dications of making up for lost time. The
peculiar thing about it was that the in
spiration for It seemed TO come from TIar-
riman. rather than from Hill, sources.
The rise was not accompanied by any
news whatever. except that well-informed
interests said the stock was cheap. and
that some shrewd operators said they had
observed very good buying of it for some
time past.