The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-25
WALL STREET NOTES
COppers Show Strength, but
Others Fail to Respond.
MONEY FLOWING WEST AGAIN

! Out-Of-tOwn Institutions Can Place
Funds TO Advantage-U. 5. Steel in
Demand In London, but Little Pros
, pect of Advance in Dividend Rate
This Quarter-InterbOrOu Pool.
New York, Jan. 4-The only fault that
any bull had 20 find with the action OF
the market was that the response in other
stocks 10 the strength in the CODpeTs was
not as great as might have been expected
In view Of the prominence Of the interests
that were supposed to be buying the lat.
ter In some circles it was said the
strength of the Copper stocks was not as
great as IL seemed TO be. Those who eX-
pressed this view were bearish, and made
little secret of the fact. In view Of this
fact their reasoning was listened to with
little more than the curiosity that might
be well INDUCED in on a very dull day.
Their argumsnt-if such il could be
called-was that manipulation of Anal
gamated Copper is in progress for the
purpose of distributing the stock before
a break occurs in the copper metal mar
ket. and that this manipulation is in the
hands of one Of the most adroit operators
in the street. who is able TO give an ap-
pearance Of strength. even though the
stock figures in every brokers' loans, and
is quoted at a higher rate in the loan
crowd than the average for other issues
all Of which would imply that the float
ing supply is large instead OF small as It
is generally supposed to be. The bulls
in reply said the best answer 10 this kind
Of talk is the steady gains made by the
stock. and the equal in steady advance
in the price of metal
Some bankers express the opinion that
the present ease in money will not con-
tinue beyond the end Of this month, as
funds attracted to New York by the very
high rates which prevailed here a few
weeks ago may be withdrawn now that
the out-of-town Institutions can probably
make better use Of their funds near
home than by lending in Wall street at
per cent or under.
The trust companies. too that often
hold their funds until they get an oppor-
tunity TO put them out at high rates are
said to be reducing their loans so that the
associated banks will be called upon 10
finance q larger proportion Of the street
operations than before the drop occurred
in the money market Opinions differ as
10 what would be the effect II Secretary
Shaw should adhere 10 the intention at
tributed 20 him Of Withdrawing before he
Tetires on March 4. all the special deposit
he placed with the banks al times OF
strain in the last year, but the consensus
is that the Secretary viii shape his policy
according 10 the conditions in the money
market.
! London continues 20 look with favor on
the United States Steel stocks, although
there, as here, the expectation is that the
dividend declaration on Tuesday next viii
be at the present rate of , per cent a year
It is argued that there are good reasons /
why the directors should allow the ques-
ton Of an increase to 60 over until April
/ The present rate will then have been In
effect for a year-a reasonable period for
the corporation TO demonstrate its ability
1 to pay at a higher rate.
! In Ap~iI, too. it viii be possible to tell
something about the prospect for winter |
wheat and to gauge Of the years outlook |
I
material have begun to come into the /
/ company itself.
II the outlook is then rs good as IS now
anticipated, the directors may see their /
way clear 20 advance the rate TO a higher I
\ basis than they would care 10 adout /
now, so that proposition in a change 1
/ in the size Of distribution is by no means 4
/ looked upon as near argument by those
VINO think they know the real facts in the 4
| case.
/ It is said that a strong pool has beer
formed in Interborough TO advance the
/ price TO a level more in keeping with the /
prospects for 4 company which controls 4
/ the entire traction situation IN New York 1
/ The pool. according 10 report, has been
I the packing OF substantial interests in the 1
company, and while nothing Is said on 1
/ this point in the inner circles. it is as 4
serted With good deal Of confidence that
the stocks are worth much more than 4
/ they are now selling for.
When InterbOrough-M Metropolitan broke /
sharply on Monday, and then quickly re- /
/ covered its loss. the traders came TO the /
conclusion that the decline was engineered /
with a view to eliminating whatever weak /
. !
the stock preparatory to an upward move /
ment Of some dimensions. and a few keen /.
observers. who studied the operations in /
the stock, were struck by the resemblance
which they bore to the usual Gates /
methods.
I At the time they could not accept
the conclusion that the Gates house had /
been selected to take charge Of bullish |
3 ~, r. n
has always been supposed that there was
no love lost between August Belmont and
John w. Gates since the latter. with Ed |
win Hawley, executed his memorable coupl
in Louisville & Nashville Hatchets are
| buried sometimes, and some traders think
the Mcdonald is not the only one that
has been hidden away by Mr. Belmont
recently.
John w Gates not very long ago an
nounced that he had project of his own
to build a new subway to compete with
the InterbOTOUgh lines, and there are suU
some people who believe that he has not
entirely given up the intention of doing
So The election of Theodore P. Shonts.
however, as president Of Interborougb-
Metropolitan seems to put a new com
plexlon on the matter. Mr.. Shonts and
Mr.. Gates live in the closest terms of
friendship with one another, and it is alto
gether likely that If Mr. Gates had been
asked to name a successor for Mr.. Bel
mont Mr. Shonts is the man he would 1
have named The circumstances is suffi-
ciently remarkable to induce brokers who
refused at first to accept the evidence
which they observed of Gates manipula-
ton in the Belmont stock to come to the
conclusion that Old-time differences bnvo |