The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-15
MARKET IS WEAKER
Decline in Leading Stocks
Due to PrOit-taking.
LONDON A HEAVY BUYER HERE
Selling Movement Follows Failure
of Southern Pacific tn Raise Divi-
dend Rate Anaconda TumbIeS
from High Mark Set Wednesday,.
Gas stocks show Greatest Strength.

Gas stocks show Greatest Strength.
New York. Feb. IA fall in prices av-
eraging something less than a point in the
case OF the active and leading stocks Oc-
Cured in the security market to-day
This was caused not by the influence OF
unfavorable developments, for no adverse
factors appeared that could be credited
with this result. The decline was due
manifestly, 10 mere miscellaneous realizing
sales on the part of recent spectators for
the rise
At the close of business yesterday quo
tations for stocks were materially above
their low points touched nearly two weeks
previously, and buyers of stocks at these
low levels had in many cases handsome
profits awaiting them.
The stock market is still admittedly mar
row, and there is very little doubt that it
is rot the desire of the larger financial in
terests TO bring about in the immediate fu-
ture any violent resumption Of action for
higher prices. Reactions like those wit
messed to-day are inevitable under such
conditions as now exist, and these may
take place without diminishing at all tie
confidence now generally felt in high
quarters in the financial district that pur-
chasers of the better class of stock at the
prevailing range of prices viii not repent
OF their bargain.
Opening prices were in the main about
the final ones of yesterday, and in the
morning hours of business, houses with
London connections were again purchas-
ers of a fairly large quantity of stocks.
The current estimate of these purchases
for London account made during the pres
ent week is in the neighborhood of 75.C00
shares. A hesitant tone soon asserted it.
self in the trading, and values declined
rather continuously until the end of the
day.
Total Transactions Small.
Liquidation was not, on the other hand,
at all of an urgent character, and the
total transactions in stocks were 100000
shares less than at the preceding session.
The selling movement in the market to-
day was most noticeable. perhaps, imme-
CiateIy following the announcement of the
declaration of the semi-annual dividends
upon the common stocks OF the Union Pa
ciic and Southern Pacific Railway Com
panics. Very few people expected that
any other action than this would be
taken. but there We're those who had in
dulged in some hope that the dividend
rate on Southern Pacific common stock
might be increased. These hopes. it must
he confessed, were not at all unnatural in
view OF the immensely strong financial
n.
that has recently been made plain. The
company during the fiscal year ended on
July last. made net earnings amounting
TO &c per cent over and above all charges.
the payment of fun dividends on its pre-
ferred shares and the first payment OF a
21a per cent dividend on its common stock.
In the first half of the present fiscal
year the company has increased its net
earnings nearly S5.0Gl.O00. and as every
business in the Southwest Is more -four
ishing than in any other part of the
country the fair presumption Is that at
the end of the fiscal year the Southern Pa
cifc's Increase in net earnings will amount
t. at least 100000. making earnings Of
over Il per cent applicable To distribution
on the company's common stock. II may
at least be said. therefore. that this rem
dgrs decided enlargement Of the COM
pany's per cent dividend rate on its
common shares inevitable later IN the
year
Heavy Fall in VI. o. p.
The general market gathered some de
gree of weakness to-day. no doubt. from a
particularly heavy fall in NJ o. P.
stock. and as a rule break of 6l5 points
in the Anaconda mining shares. But the
reaction in Anaconda in view of the rise
OF over 30 points in its price in the course
of the last fortnight was not at all
surprising.
Toward the close of the stock exchange
an advance of TO 81 points in Consoli-
dated Gas stock and in the Brooklyn
Onion Gas shares attracted no little at
tention. but were unexplained by any
matters that were made known during
business hours.
A slight advance in caIl-money rates
during the afternoon also possibly con-
tributed in some degree TO the declining
movement in the market. and this might
naturally enough have been brought about
by the knowledge that there would be
withdrawn from the local banks to-mor-
row something over $10OO,000. representing
their share Of the payments made under
the final intake by the Treasury Of the
remaining half of its $l2O000OO special de-
post funds. Conversely. there were plain
indications that, broadly and generally,
the money situation in the country was
working toward greater ease.
Time money displayed distinctly weak
ening tendency, the out-of-town baIs1s
pressing their money for employment on
lOng-teTm periods.
The Bank of England to-day made a
very strong weekly statement Of condi-
tons. although it did not reduce its dis
count rate. The banks proportion Of re-
serve against liabilities now stands at
Bog per cent. against 1856 last week. and
As per cent at this date year ago. The
banks relative reserve holdings have in
fact. only been exceeded In quantity at
this season on two or three occasions in
the last decade.