Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-17
BULLS AND BE AIRS
Special Dispatch to The Star.

Special Dispatch to The Star.
Nv YORK. January 17.-Whatever M y
have been the real cause of the weakness
In the stock market as a whole yesterday,
1t was generally expected in some quarters
this morning that at least moderate i'm
provement would be noted in today's
transactions. While 1t was acknowledged
that there was more or less liquidation
Of weak accounts. 1t was maintained by
most interests that a large part Of the SELL
ing was for the short account, and that
there was little or no liquidation on lie
part of large inside interests. 1t was be-
lieved that the reduction in the Bank Of
England discount rate would create IA
vorable impression as to money conditions
abroad. but. of course. 1t is a question as
to what extent this action on the part of
the bank governors has been discounted.
Apparently 1t has not become general in
formation in Wall street, tIt 1t is fact
that ten days OF two weeks ago the Erie
convertible underwriting syndicate, which
was formed year or more since, was dis
solved and the participants received the
bonds to which they were entitled In some
circles the weakness In the Erie issues was
attributed to the failure Of the syndicate
to sell the bonds which 1t had underwritten.
1t Is understood that the Erie railroad re-
ceived a large part II not all, Of the pro-
ceeds of the bonds which 1t sold to this
syndicate. Consequently 1t Is not easy to
construe this transaction as a bear factor
with respect to Erie particularly as the
bonds OF even larger railroads failed to find
a ready market during the past year.
The strength of Atchison common stock
is attributed chiefly to buying by inside in
trests, who believe that it will have an ad-
vance of approximately ten points on the
understanding that the dividend is to be
Increased to per cent basis next spring.
1t is argued that on the basis of its earning
capacity that Atchison is entitled to sell as
high as Baltimore and Ohio.
1t is taken as practically a certainty that
no change will be made In the Amalpa-
mated dividend today, except possibly in
the form of the announcement. BY some II
is still believed that a fat quarterly rate of
per cent. instead of IA and one-haIf of 1
per cent extra, will be ordered Many in
terests. however. do not expect even this
change. The most conservative interests
think that it would be unwise for the
directors to declare more than an eauiya-
lent of 2 per cent for a quarter.
The strength of the Hartman issues in
an otherwise weak market was attracting
considerable attention. The intimation
comes from various sources that q market
Of the character Of that of yesterday may
be followed by a sharp rebound In which
the Hartman stocks will take the lead. A
prominent railroad man expressed the opin-
ion after the close Of the business yester-
day that the transactions Of the day might
be the beginning of the end Of the severe
decline that has been recorded during re-
cent weeks.
While an attempt was made in Boston
advfces recently to convey the impression
that the United States Rubber Company
was not enjoying q large business in rubber
footwear this winter. 1t may be taken as
fact that this class Of the company's trade
has been fully up to the average. The
storms In the northwest have been unprece-
dentedly heavy and have come sufficiently
early in the season to produce large
amount Of fresh business. Outside of the
trade itself It Is not generally realized that
storm like that In progress today IL
worth many thousands Of dollars to the
rubber industry. There II good reason for
believing that the estimate Of inside inter-
ests that the increase In the companys
prices for the current year Of 3 per cent
will result In an expansion OF 1.500 900 in
edly the returns will be considerably in ex-
cess Of that amount