The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-09-24
WALL STREET NOTES
BeariSh Tendency More Mani
fest in the Market.
WEAKNESS IN METAL GROUP
RumOrs of Reductions in Anaconda
and AmaIsamated Dividends More
NumerOus-SteeI Trade Preparing
for Reaction I'm PrIces-Gross Earn
ings of Hartman Lines Increase.

New YORK, Sept. 1.-Two things of con-
siderable market import became evident
soon after the opening to-day The first
and most important OF these was that
the manipulation for higher prices was
discontinued. while the second. and
scarcely less interesting, was that the
professional sentiment had begun to take
notice Of the unfavorable factors in the
situation, which, although equally ap-
parent last week. had then been totally
disregarded.
1t would be difficult to determine with
any degree Of accuracy what circum-
stances or set OF circumstances was re-
sponsible for these changes. but the proba-
bility Is that as the market has been
very largely professional for considerable
time past. the reversal IN its apparent
character represented nothing more than
shifting Of professional operations from
the one side 10 the temporarily more
favorable opportunities on the other. The
bears expected 70 have their position i'm
proved by the speeches Of the President
on his Western tour.
one rumOr. which everybody heard and
nobody believed, was that bear selling
OF the New York City bonds had broken
on large scale. The story sought 10
confirm similar one heard a week ago
that the bonds had been sold heavily for
short account at about IO3. and added
that those who had sold short at that
level were still on the same side en-
deavoring 10 average their selling price
1 by putting out further short lines al
prevailing prices.
Weakness was more IN evidence IN
! the metal group az the outset of trading
| than In any other part Of the market.
For this there were reasons OF some
length. RumOrs Of reduction in the Ana
conda and Amalgamated Copper divi-
dends had crystallized into seml-ofIiclal
/ acknowledgements. and the market for
metal IN London had suffered another
rather severe decline.
II was asserted that a decrease in the
production OF the mines would mean q
relatively heavier cost Of the metal and
altogether II seemed to be regarded as a
practical certainty that II the metal
having dropped 10 about y cents a
pound, should remain there for q long
/ period. the companies could hardly af-
ford 70 pay dividends even at half their
present rates. Every argument heard on
! the metal trade showed that prssimism
was on the increase at least so far as
/ II regarded the copper situation.
II could hardly be said that the ex-
PLANTATION Of the decline I'm American
I Smelling and Refining as sympathetic
with that IN the copper stocks was en-
urely satisfactory. for the weakness was
more marked in thu former than in the
| latter, and. as a matter Of fact II pre-
ceded in Shelters that from which the
advocates Of the sympathy theory argued
| that Il had been derived. 4 weIl-in-
I formed copper man. who was asked II Il
was true that the metal was selling
on the basis Of - cents n pound. re-
piled: 1T would be more correct TO say
that 1t is quoted by the producing inter
ests al the equivalent Of IS cents. for
have not heard Of any sales at the
new price"
4 bealtsh construction was put upon
the news that the contract fog the sup
ply OF steel bargrs for work upon the
Panama Canal had gone To Independent
manufacturer. whose bid was materially
under the tender submitted by the United
States Steel Corporation. the inference
being that some interests were willing
20 cut prices In order 70 obtain business.
This, II was argued. they would not do
If they saw a prospect Of obtaining bust
ness on the basis OF prevailing quota
tons. The general belief was that there
would have 20 be a readjustmcnt OF
wages 10 conform 10 the reaction that
has already begun to make itself felt in
the trade.
The more the traders looked into the
showing Of earnings made by the Harri-
man roads for the month OF July. the
less satisfied they professed themselves
to be with the results. The extraordinary
Increases IN gross earnings without any
improvement 20 speak OF in net earnings.
was thought TO mean that the higher
cost OF labor and locomotive fuel and
the change in accounting methods neces-
STATED by the new rules OF the Inter
state Commerce Commission had oqualed
the increase in earnings The theory
gained wide acceptance that the faciIi-
ties OF the road We're hardly equal 10 the
economical handling of the present
volume OF traffic, and that unless bust
ness was 10 fail of some further pro-
vision would soon have 20 be made for
new capital On the ground some of the
professional element turned bearish on
Union Pacific, although, Of course. there
was really nothing bearish fn conditions