The sun., 1908-02-09
GOSSIP OF WALL STREET.

GOSSIP OF WALL STREET.
The bears had matters all their own way
yesterday. The market opened heavy, made
for short time some feeble show OF resistance
to attack and finally broke badly. The bulls
were utterly discouraged-the more so be
cause the course Of prices was at variance
with the news. the general character OF which
was bullish-and fearing that something OF
an unfavorable nature was hanging over the
market they lacked courage to increase their
commitments until better informed as to the
cause of the decline.
It would be hard to say which Of the active
stocks was weakest. but there could be only
one opinion as to what issue opposed the
most successful resistance to pressure
Everywhere It was allowed that United States
Steel was entitled to this distinction. Some
of the leading bears admitted that they were
astonished at the strength of the stock.
Steel they said. proved itself worthy Of
its name" That the industry has begun to
show substantial Improvement was quite
generally believed and il was asserted in some
quarters that while il is not to be expected
that the current quarter, now nearly half
elapsed, can make a good showing, II il
asserted that in all probability the last month
of the period will contrast very favorably
with the last month of the quarter covered
by the statement published less than two
weeks ago.
As a group the stocks IN which there il a
Hartman interest were the weakest on the
list. This refers not only to Union Pacific.
Southern Pacific. Atchison. Delaware and fIud-
son and Baltimore and Ohio but to st. Paul.
Great Northern and Northern Pacific, Of
which. according to rumOr. Union Pacific has
been disposihg of its interest with a view,
possibly. to recovering IL through purchase
Of the part paid certificates at a lower price.
The lack OF support. especially in what arc
more particularly the Hartman stockS
Union Pacific, Southern Pacific and BaltimoEc
and Ohio. was decidedly disconcertinR -
indicating that the leading interests in theIs
properties are more concerned about tbs
| Governments attack on the Union PaciDS
| combination than they had ever expressed
| themselves.
Delaware and Hudson, which was perhaps
| the weakest vI lIl the stocks in which there
| is a large Hartman interest. was sold by
! the principal bear traders, VhO apparently
had no other ground for their operations
| against il than what was furnished by the
| threat OF a suit by -stOckholdeT
| to be one of the most notorious professional
| litigants in Wall Street-tO restrain the pay
ment OF dividends for the alleged reason
| that they only be paid by borrowing
money. The annual report Of Delaware and
Hudson was published only a couple Of weeks
ago, and showed that in the year ended De-
cember ~ the company earned more than
l2's per cent. on its stock. this Of course
leaving a good but not extra liberal margin
beyond the dividend requirements
For the first time in nearly eight years
Missouri Pacific sold below ~. OF news
the tock there was none beyond the reeuT-
renee of rumors. circulated at different times
| since the direct OTs decided to pay the winter
dividend in stock instead Of cash. to the effect
! that unless business improved very mRteri-
ally no disbursement Of any kind would be
made next summer In line with this II was
said that some other stocks owned directly
or indirectly by Missouri Pacific. such
Denver and Rio GTandc preferred, would
hereafter pending Improvement in the market
for bonds. pay their dividends in some form
of security instead Of cash. but il was not
easy TO figure ont from this, some Of the
traders tried TO do that Missouri Pacific could
not continue to put out stock for dividends
| II It's directors saw 1T to do so.
>irrr the Presidents message and the an
nounccment OF the Offering of $4,000, ,OOO
/ bonds of the city of New ! ork took the edge
of the general bond market there has been
| a substantial Improvement in the demand for
commercial paper. institutions in New York
state. Pennsylvania and adjoining territory
especially taking "a large supply of good name
stun on a ; a per cent. basis. IL is a question
whether this Improvement in the commercial
paper market is not even more important in
'substantial Improvement in the bond market.
Many brokers whose business s directly
helped by activity in bonds but who are not
directly benefited by the dealings in COM
mer,ial paper, say they are better pleased
to see the invest ment demand switch into the
latter than continue in the former. The de-
mand for paper bespeaks the restoration Of
confidence not only in the great corporations
but in the financial integrity OF the mercaD-
tile community. and with this assured the
other kind Of investment will follow &c a
matter Of course.
The expectation in banking circles IL that
the forthcoming issue OF New York city bonds
will be largely oVersubscribed. Nowhere
does any doubt seem to be entertained on this
point. As regards the matter Of price the
belief is that the sale will be made on q basis
to yield between $40 per cent. and ~ Der
cent, to maturity. This would mean an aver
age price Of between 1903 and iO4. OF from to
? points above the price realized at the last
big sale. Ia ease the sale proves to be more
successful than this, H. will, In the opinion Of
conservative interests, give an important
stimulus to the general bond market and 20
long way to revive interest in all classes OF
securities.
The statement OF the associated banks.
published after the close of the market, was
supplemented by the statement of the non
member banks and trust companies and was
less favorable than had been anticpated.
partly for the reason thai the outside institu-
tions reporting for the first time had with
drawn funds and thrown some OF the burden
bers In order to mako good showing 10 their
own figures. Taking both statements TO.
getheT the presentation was regarded as a
strong one.
Business Troubles.
AcreditOrs' petition in hapkrup, cy b,a h..,