The Washington herald., 1908-01-29
WALL STREET NOTES
Big -Four Reduces Dividend,
but Market Is Strong.
ADVANCE IN PRICE OF COPPER
street Takes This as Good Sign.
Rally in Smelling FOIIows-North-
ern Pacific Prospects Not as Good
as They Appeared Few Weeks
Ago-SteeI Also Hoves Up.

/ New York Jan. 2S-TO-day at about II
o'clock the announcement was made that
the Big Four had reduced its dividend
from IA { per cent to a per cent basis.
| Half an hour later the market showed
one of its bursts Of strength-the greatest.
| perhaps. of the day-and more than one
facetitious trader began 70 ask the ques-
/ ton around the room If the market goes
up at this rate on the cutting of a
| dividend what would 1t do if a dividend
I were passed"
OF course, such "a movement was not
natural-it was all forced.
The reduction in the Big Four dividend
| came as a complete surprise. The stock
| had been on a I per cent basis since 1892.
and the earnings had not prepared tie
/ street for tie cutting IN half OF the rate
10 which II had become accustomed. The
| first sale Of the stock was made soon
after the opening of the market and
showed an advance Of 2 IL point over the
| last sale on Monday.
The second transaction, however. was
/ at a decline Of 4 poiats-the dividend an
nouncement having intervened-and the
| price continued TO drop of with each sue
| ceeding sale until it touched IS. as COM
pared with IS 10 at the start, but it
subsequently rallied points from the
lowest
After the street had heard many fanci-
ful reasons for the recent strength in
Amalgamated Copper, the substantial
fact underlying the stocks action was
disclosed by the advance Of a quarter Of
a cent "A pound in the price Of copper
made BIZ the United Metals Selling Com
pany. I; was said that al the new price
level several sales were made, mostly 70
home consumers, and rumor had il that
the advance would be followed by others
until the metal went back TO a 17-cent
basis Such predictions were regarded
! in conservative quarters as too optimis-
| tic, but even with the slight advance in the
price OF the metal there was sufficient
L assurance as 20 the outlook 10 explain not
only the strength in Amalgamated Cop
per but the rally I'm American Smelling
* Refining from it's low level of last
week
Northern Pacific was the weakest Of
the active stocks. As on the preceding
day, IL was the subject of q good 0eaI Of
manipulation for a rise. but responded
badly stock being met with on every lit
tie bulge. The loan crowd afforded a fair
Indication of what had happened. the
borrowing demand being small and the
stock plentiful.
The optimism felt in Northern Pacific
circles regarding the outlook for bust
ness is not by any means as rosy now
as it was a couple Of weeks ago. II Is
not dead but the bloom is off it, In the
general slowing down Of business the
road must suffer with the others but
the changed conditions have already be-
gun TO make themselves felt.
A few minutes before the close a rumor
gained currency that the United States
Steel statement would show net earn
ings for the quarter ending December 81
Of S360009, and this was used TO force
short covering ami lift prices az the end
OF the session. The actual figures were
published soon after the close Of business.
and while they did not come up to $50. 600
o9l estimate, they more than justified
earlier forecasts. which had placed the
net az not more than SO. 10000 and the
untitled orders on the books at about
4,500 CO. tons.
Reading was a tower Of strength in the
market resisting every attack Of the
bears directed against itself. and serving
as warning that attacks delivered
against other points might result differ
emily from what those making them in
tended.