The Washington herald., 1907-06-01
WALL STREET NOTES
Traders Are Not Worried by
Speech at Indianapolis
THE MARKET IS PROFESSIONAL

Profits scaIped Between Conferences
on Presidents Remarks as Applied
10 RaiIroads-None of the Brokers
Read Such Addresses in Full, Be
ing Content with synopsis.
New York, May 31.-ProfessionaI opera
tors, and they were all that displayed
any interest In the market to-day. pro-
fessed satisfaction with the Presidents
indianapolis speech. Since Wednesday it
had really been a foregone conclusion that
they would do so. They had then found
the technical position of the market
favorable TO operations for an advance,
and made up their minds that nothing
should be allowed 10 interfere with plans
for a movement against the short interest
II mattered little, they argued. If the
President said something more radical
than before, its effect could be minimzed
by giving aspect to trading in the first
couple Of hours.
As a matter of fact, they knew pretty
accurately just what the speech contained
before they went home on Wednesday
TT will not be liked, but the market can
stand It" was the view Of one Of the most
prominent floor traders. and his diagno-
sis proved TO be approximately correct
II was a short interest market and II
was nothing more, except for the usual in
cidentals Of professional operations. first
on the bull side to profit by the covering,
and then on the bear side. when there was
no longer a short interest TO give support
The Indianapolis speech was almost the
sole topic around the commission houses
and among the traders on the floor when
not actively employed trying to scalp
profits. and perhaps the most impressive
fact brought out by these discussions was
that e comparatively small proportion of
those who do business in Wall street read
the Presidents remarks in full
Nearly all satisfied themselves with a
synopsis from some morning paper. or one
OF the Wall street agencies. which made
il plain that less attention IS now paid
IN the financial district 20 the remarks
Of the head Of the nation on the subject
Of the corporation legislation than was
the case six months ago.
The Presidents sentiments have grown
familiar by repetition and. Wall street.
thinks. tiresome. on a day when there
is nothing else 10 talk about. the street
talked Of the speech in a sort Of lanEud
way, without taking the trouble 10 thor
oughly famIliarize itself with Its subject.
and there was a notable absence OF the
uncasiness that similar remarks from the
same source would have caused last year
One large operator expressed the opiu-
ion that the talk in the speech had oc-
CURED as far back as Monday, or posi-
bly, the end Of last week "The market
really sold cN-1ndianap0lis' he said. "On
Tuesday last"
Of gossip on individual stocks, Amerl-
can Car and Foundry absorbed the largest
share. The principal subject Of discussion
in regard 20 this Issue was the alleged
probability Of an increase in the dividend
from 20 per cent a year. The most
specific rumor on the subject was that
such an increase would be authorized by
the directors at their next meeting next
week.
In some conservative quarters doubts
were expressed as to whether the man
agement Of the company would approve
an increased rate Of disbursement IN view
Of the necessity Of maintaining a large
amount Of working capital AZ a time
when there is so much activity IA the
car-building industry and no little diff
Guilty ir obtaining accommodations at rea-
sonahie terms ia the money market
On :he other hand, IL was C0ntended in
quarters hardly less conservative that
with the fullest consideration Of the ne
cessity Of keeping strong in working cap
ital. the company could well afford 70
pay per cent on its common stock.
which would represent only a fraction of
what IL is at present earning.
In all quarters il was conceded that the
Company's management is conservative.
and whatever course il adopted would
meet with tie approval Of the stockhold-
ers and Of the financial community.
Estimates of what the Car and Foundry
Company Is at present earning indicate
that this years results viii be equiva-
lent to about % per cent on the common
stock, after payment Of the full Z per cent
on the preferred. It IS also figured out
that the common stock has a book value
Of about $50 a share. which will be IN
creased by the addition Of the years sur
plus earnings over and above what is
paid out i'm dividends.
If the company earns 20 per cent and
pays ( per cent in the next year. the book
value will be raised 70 $50 or above. so
that. irrespective Of whether the dividend
(. is increased or not, the stock will still
have many friends among those looking
for semi-investnlent opportunities I'm Wall
street.
A sharp advance i'm Reading was the
feature of the forenoon trading. this stock
deriving benefit from the excellent state
ment of earnings made by the company
for the month Of April Taking all COM
panies together the Philadelphia and
Reading Railroad, the Reading Coal and
Iron Company, and the Reading Com
pany, the gross earnings surpassed all
previous records. Compared with the cor
iespOhuiH6 HioHIh q year dSo' tllt state
ment showed very large gains, partly be-
cause last year the mines were closed for
several days on account Of the wage con-
troversy. and there is every indication
that the month just closed will make
a very favorable comparison with May a
year ago. for the satisfactory reason that
the consumption Of coal was heavy for
the season.
The present condition Of the trade war
rants expectation that the anthracite
roads will he called lIDOn IN rnova n