The Washington herald., 1907-06-07


were inclined to admit to-day that the
trading resembled an early stage in a
creeping bull market. They said they
could not detect the sources of the buy
Ing orders, but that nevertheless there
appeared 10 be quiet absorption Of stocks,
and that there was every indication that
liquidation had been completed for the
time being.
What some brokers called the "dilatoTy
tactics" of the administration in regard
to proceeding against the Union Pacific
interests. and which for the better part
of the day. az least. was considered in
dicative Of a determination 10 let the
whole matter quietly drop out of sight,
probably had a good deal 10 do with the
quick advance in prices during the fore
noon, when the highest quotations of the
day were scored. But that this was not
the sole factor became evident when the
advances were fairly well held in the
afternoon despite the fact that dispatches
came from Washington stating that there
would be a meeting at the White House
to-day for consideration not only OF the
Hartman affair. but OF plans for an
active antitrust movement during the
summer months. For some reason there
was a better feeling all around, and the
traders showed an increasing disposition
to take the bull side regardless Of such
news The public did nothing, but the pro-
fessiOnals did not seem 20 be dauuJed by
this fact The public, they said, never
came in until the market had advanced
several points.
Bond houses handling the Delaware and
I Hudson equipment notes report that they
have found a good investment demand
for the securities. and in some cases they
have not only succeeded iu disposng of
their original alIotments. bat have also
been able to market a considerable ad-
ditional supply obtained from the bankers.
The absorption OF these notes by in
vestors is one Of the brightest features Of
the bond market
American Car and Foundry recovered
/ its dividend on the first transaction, open
ing ex-dlvidend at szi2. as compared with
a closing price Of i-is on "Wednesday
when it sold with the ! per cent dividend
included in the quotations. The advance
i'm this stock since the dividend was de-
Cl8red has been strong testimony 20 the
approval with which Wall street received
the announcement of an increase in the
rate or disbursements 20 holders Of the
company's common shares.
/ Car and Foundry is probably earning at
/ the rate of 20 per cent this year for its
common stock. and is amply supplied
with working capital. h8t AS the man
/ 1gemeIt has q reputation for ConserEa-
/ t.sm, IL is certain that IL there was any
/ reason e. aUpreheud serious falling of
/ in business no increase iu the dividend
/ rate would have been made az this time
/ The action taken on Monday last fer this
/ reason has been regarded as very signif-
/ cant in a broad sense. The continued
/ prosperity Of the company depends on the
/ continuance Of r heavy volume Of railroad
/ business. and unless there are reasonably
/ good assurances on this point. the in
/ crease in the dividend would not have
/ been authorized On this account the Car
/ and Foundry dividend has become an i'm
/ portant factor in molding a more conf
/ dent sentiment regarding the future OF
/ the stock market
| That American Locomotive should sym
( pathize with the strength in American
/ Car and Foundry was entirely natural
+ The business of the one is the complement
/ of the business Of the other. and the same
/ set of conditions suffice for prosperity in
/ both. The practical guarantee for the
/ continuance Of good business for the car
/ building concern was a guarantee equally
[ strong OF a continuance of good business
/ for the locomotive builders. There was "a
pool in neither. no extended short interest
and no liquidation I'm either; both were Of
7 the respectable class that even the most
/ conservative trader could ba induced 20
speculate IN. Car and Foundry had the
| advantage I'm entering a new dividend
/ class, but Locomotive benefited from
/ having its present rate made 10 appear
/ more secure than formerly.
On the day when the Union and South
ern Pacific companies announces their
plans 10 raise new capital. T. IT. Harri-
man made estimates of the earnings Of
the two systems for the year ending with
the close Of the present month, and in the
case of Southern Pacific. at least. the es-
innate was distinctly Disappointing. Mr.
/ Hartman said however that his esti-
mate for this road was minimum, and
that it was likely TO De exceeded. The
| statement just published for the month Of
April makes il look as if II would not be
According to AR Harrimans figures the
net earnings for the fun year would be
| about S6.900000 over those of last year.
which might seem large were it not for
the fact that for the eight months ending
February 2S the item showed a gain OF
more than 100000. The record made up
TO the end Of February was reduced by a
! decrease Of more than $4,000 as n result
Of floods and other adverse conditions in
March and now comes the statement for
the month of April which shows that out
Of a gain Of S1,61,572 gross only S273 is
saved in net. The month undoubtedly suf-
fered from conditions similar TO those felt
in March. and higher wages may have
coatributed TO the increase in operating
! expenses. but while the estimate made a
month ago by the president of the road
may be exceeded, il seems too much now
to hope that il viii be largely exceeded.
Il would be very nice hair splitting cp-
GRAFTON 10 reckon what the possible excess
would amount 90 in percentage on the