The Washington herald., 1907-08-24
WALL STREET NOTES
Bears Take Heart in South
ern Dividend Reduction.
FRESH LIQUIDATION DEVELOPS
Interest in American Mar
ket Subsidies - Western Bankers
Have Difficulty In Arranging for
More Money and Find Financial
Situation PerpIexing-AltOn Deal.

New York, Aug. 23.-The reduction Of
the dividend on Southern Railway pre-
ferred was taken by professional Oper-
ators yesterday as an occasion for
sharp attack on prices.
The raid was begun in the last hour,
was accompanied by liquidation, and was
successful IN sending the list down close
10 the low average OF last week. @Every
active stock declined sharply and there
were noteworthy losses in every stock
in regard to which there had been a de-
crease or suspension of dividends That
the predictions of a cut in the dividend
on Southern preferred had made good.
enables traders TO attract believers by
talk Of the delicate position OF many other
dividend rates Almost without excep-
ton, the last sale was the low sale of
the day, bear operators feeling so secure
in their position that no short covering
was attempted.
The great cause for their satisfaction
was the appearance Of fresh liquidation
in the last half hour. Much of it, no
doubt was speculative liquidation, due
TO disappointment over the early termina-
ton OF tha rally and the smallness OF
the recovery from the low prices of last
week But there was also liquidation Of
a more discOUraging nature and 1t was
evident that the bear talk was attracting
few of the more credul0us investors.
The market was much more active IN
the last hour than at any previous time
Of the day. Prior 10 that time it was
dull. with the trading confined almost en-
tirely TO professional operations and de-
void Of any interesting incident. The
general trend of prices was reactionary.
but price movements were of narrow
range, and the market appeared TO be
working toward a position OF greater
stability than has been in evidence Of
late.
The reported disappearance Of Metro
politan Street Railway records is as mys-
terious in manner as the disappearance of
the peg on Interborough- Metropolitan
common a year ago. This occasioned re-
newed liquidation Of local traction stocks.
though many traders who considered
themselves d bit shrewd. said they looked
on the loss of the records as a bull argu-
menL
London manifested not the slightest
interest in the market, neither buying
nor selling. If the lack Of interest there
is an indication that the liquidation for
London account Is over II was remarked.
1t IS an encouraging sign, for London
has been altogether too deeply interested
in recent developments here Unfortun-
ately it has been interested TO the point
of very heavy selling Of stocks in this
market, and thus both weakening the
purchasing power in New York. and dis
turbing the balance Of trade No trou-
bic need be expected from London to-
day, il being a holiday there Some
brokers here are desirous of following the
London example next Saturday, and
taking a vacation from next Friday until
after Labor Day. petition 10 that
effect was circulated on the floor
Many western bankers have been in
the city in the past few days endeavor-
ing TO make arrangements for money.
They have found It difficult TO secure
any definite assurances that the custo-
mary supply would be available for
very few bankers cared to conclude ar
rangements until IL became definitely
known just what Secretary Cortelyou
was 10 do. and equally important. the
length Of the continuance Of the London
demand for gold. The money situation,
in other words, continues 10 perplex the
best minds in the banking business.
Except in Hartman circles, where moth
ing was kEa-n OF the transfer of the
Alton 10 the Clover Leaf until official an
nouncement of the transaction, satisfac-
ton was generally expressed over the
deal \ continuance of control by the
Rock Island, il was realized would have
constituted a perpetual temptation for
the institution of suits on the ground
that the Alton and the Rock Island are
competing lines, and the transaction thus
removes one cause for disturbance
What the Union Pacific is to do with its
minority interest in the Alton. remains
the same interesting question that il has
been since the Rock Island took control
away from Hartman.