The Washington herald., 1908-05-02
PRICES MOVE HIGHER
Effort to Depress the Market
Proves Decided Failure.
PENNSYLVANIA CUTS DIVIDEND
Reduction from Seven TO Six Per
Cent Has No Effect Except Bene-
heiaI-LOndOR Market Is Closed.
Sc. Paul Common Makes Large
Net Advance for the Day.

New York. May 1.-The greater number
OF professional spectators in the security
market impressed with the wavering tend
ency OF the market shown yesterday and
the day before and convinced that the
reactionary tendency would run to a con-
siderable extent. again sold stocks with
not a little freedom this morning
But discovering that their attacks were
not inducing any further liquidation. and
were only serving 10 increase commit
ments for the fan to no purpose. they be-
gan to buy back the stocks that they had
sold. and this hurried covering process
resulted before the end of the day in
second violent upward movement in prices,
which lifted the average level Of quota
tons TO a point nearly as high as that
touched In the early part Of the week.
Pennsylvania reduced its dividends to-
day and the stock advanced on the news.
So did the general market for that mat
ter. The reduction was from per cent 10 6
per cent a year. and some of the traders
faceuously asked how much greater would
the rise have been had the reduction been
TO 8 per cent instead of 6 per cent What
occurred in the market was entirely natu-
raI The change IN the dividend policy has
been generally expected, and when It was
officially announced the shorts were left
without any bear argument, and were
forced into covering movement This
extended through the whole list
London Market Closed.
y l.
stock exchange holiday. and the only de-
velopment OF interest in foreign financial
circles was a sharp rise in sterling ex-
change in Paris, which, coupled with
decline in sterling. put an end. for the
time being, 70 the possibility OF gold ak
ports. Time money in this market to-
day was again distinctly harder; but all
these matters were only academic so far
as their effects upon values were con-
eerned, in view OF the existing general
lower range Of money rates and the fact
that despite the loss of funds through
sold shipments another large cash gain
by local Institutions had occurred mainly
through disbursements OF money by the
national Treasury and through remit
tances to this city from the West.
The course Of prices to-day was admit
tedly determined not by any news de-
velopments whatever, but by purely
speculative considerations. The buying
Tor the rise centered In two or three
leading stocks principally the st. Paul
common shares, which were easily the
feature Of the market in the afternoon,
rising BY leaps and bounds in the last
few minutes of trading, and making
large net advance.
Others Are BuOyant.
Chesapeake and Ohio, Northern Pacific.
and Union Pacific were also especially
buoyant, and the only general explanation
gossip offered for this strength was that a /
very prominent capitalist who has long
been a leading director of the Chicago, /
Milwaukee and st. Paul directorate. and
Is well known for his incessant specu-
lative proclivities. had enlisted himself /
with great fervor on the rising side OF /
the market.
There was more or less talk to-day, /
naturally, Of the methods likely to be /
taken by the government TO secure fu- /
dicial construction Of the Hepburn bin, in |
force for the first time to-day, prohibit |
ing railroad companies from carrying I
coal and other mineral products mined I
from land owned by the railroads them /
selves