New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-04
TELEPHONE BOND BOOM
Harriman's Use of Phone on HIS
Roads One of the Causes.

The feature OF the bond market yesterday was
the activity Of American Telephone aho 80
graph per cent bonds. which contributed INC
bulk of the total dealings in the bond depart
rnent of the Stock Exchange, the sales amount
ing to s4ls7OOO. at prices ranging from 70 10
% The company's per cent stock was Aiso
active and strong. selling UP to 1917 after 0lei
ing al 1908. sales Of l4.oOo shares'
great activity IN these securities was allripu'eu
in we'll Informed quarters buying by the Har-
riman interests.
II was said that as a result of experiments
with the telephone in place of the Telegraph IN
dispatching trains, ETC. on some OF ms "es'eiii
lines f H. Hartman had decided 10 chahee Iiie
telegraph dispatchtng on his entire system 10 'he
telephone In the absence of Mr.. Hartman no
one could he found at the Union Pacific Offices
who would corroborate the report, but an olhcer
Of the company admitted that IT had been Trying
out the telephone some parts OF the System
with view to making such change put WHAT
the result Of these tests was he was not pre-
pared to state. The Lackawanna Railroad re-
Gently suppianted the telegraph with the tele-
phone. is said TO have found the ne" ms
patching system more satisfactory than the olo
method and also less expensive 10 MAINTAIN
Similar action is understood TO be contemplated
by other roads
Another reason advanced for the heavy transac-
tons in the American Telephone and Telegraph
securities was that the operations had been lhIlu-
enced by the syndicate which underworld Tie ISSUE
induce purchase, now tnaI the price hoo
a point where profits We're showing on the inquire
the syndicate paid for the bonds This syndicate
was composed of J. p. Morgan q Co ana Num-
Loeb & Co. of New York; hidder Peabody q Co.
Of Boston and Barring Bros & Co. of London II
was formed in February. 1906 10 purchase the
500 600 o0e per cent convertible bonds which the
American Telephone and Telegraph Company pur-
posed 10 issue, and did take the whole amount A
large part the issue. IT is understood, has re
rnained in the hands OF syndicate the price not
being such that they could dispose Of the bonds at
profit Yesterdays price of 90, however. repre-
sents II is said substantial profit for the under
writers.
National banks throughout the country have been
heavy buyers Of bonds recently, and purchases by
these institutions feature OF the bond mar
ket Yesterday. Bond dealers said that most OF the
orders were executed lover the counter. and that
they represented great variety OF issues at prices
returning approximately per cent on the invest
ment. Savings banks, which have kept out of the
market for some time, also reported as large
investors in bonds yesterday, most of their pur-
cha ses being rnuncipals In financial circles the
action Of the banks attributed in part to
the great cheapness Of money, which. # was said,
made bond investments exceedingly attractive for
these institutions The banks are also believed to
he acting the theory that the bond market Will
broaden sufficiently within the next two months
to insure a fair advance in the prices Of the best
securities after election.