The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-06-06
GOSSIP OF wALL STREET.

Most Of the railroad stocks which ad-
vancsd most sharply on Friday lost q part
Of Fridays gain yesterday. while Steel
common. rea~otionary on Friday. recovered
more than half Of Fridays loss, and Copper
and most OF the other industrials were
also strong. The sctlon OF the market
might thus be regard ed as q natural result
or reaction Of nan movements OF the
previous day. for the advance In many OF
the previously rather inactive rails was thon
50 sudden and pronounced that profit TAX
Ing was to be expected on the week end.
Similarly 1t was to be expected that the proht
taking In Steel. profit taking which fol-
lowed a continuous advance Of more than
10 points. would run It's course. and that there
would be covering OF short contracts made
while the realizing was In progress. To a
considerable extent, accordingly, yester-
days market stood for On evening Of both
long and short accounts. and In this respect.
In the opinion of many brokers, they
Strengthened around for the resumption Of
activities tomorrow.
There was no decrease in the activity.
On the other hand the hourly average Of
transactions was greater than the hourly
average on any Of the preceding days Of
the week, Approximately 7s5. 900 shares
changed hands In the two hours. which Is
at the rate OF close 10 1900, 900 shares for
q five hour session. Those who have long
criticised the movement insisted that this
pronounced activity marked a elimination
Of the boom. but the same people we're first
convinced hat Steel common. for instance.
could not maintain a price above so, and
later sconed at the idea that 1t could hold
above 90. In most of the commission
houses there was noted an increase rather
than a decrease In public interest. and the
prediction was that until there Is an abate-
ment In this respect the boom should
continue
A great many transactions In odd lots
were reported in the latter part OF the week.
Business Of this character usually stands
for investment buying and there was very
heavy investment buying In the months
following the panic. when the odd lot bssi-
ness was remarkably large. The same kind
OF buying latterly has not been comparable
TO that then. for 1t appears that there has
been more selling than buying ~ odd lot
men. The motive for this selling in a great
many cases has been the establishment Of
] an account with which to trade on margin.
Our odd lot business has been selling on
balance Iatterly-. said the head OF an i'm
portant commission house yesterday. In
the great majority of cases the sellers have
opened accounts on margin. Partly as a
result OF this circumstance We are doing
more 100 share business than at any time
since the panic"
This development is nothing new in mar
ket history. 1t has been noted in the years
following every panic or other period OF
acute market depression. On the heels OF
the panic has come the bargain hunter pick
ing up odd lots at low prices and laying
them away for investment. subsequently,
prices have risen. at times steadily and then
rapidly In an outbreak OF bullish enthusi-
asm. and the bargain hunter has had plenty
Of opportunity 10 figure on the enormous
fortune he would have made had he bought
on margin In the first place and followed the
market up. By comparison his profits
have looked trivial. and eventually 1t has
occurred to him that the advance Was by
no means over ard that his opportunity,
though neglected. v az not gone. Thus the
investor OF yesterday becomes the specu-
lator OF to-day.
And this investor Of yesterday and specu-
lstor Of to-day remarked the broker above
quoted. will be the bankrupt Of tomorrow
II he pyramids his stocks and does not
keep them safely margined.' incidentally
the remark was q comment on the weak
ness Of every bull market. the pryamiding
OF accounts until the number Of them makes
the market top heavy and Vulnerable.
Atchison, though Il Loaf nearly . point
yesterday. has advanced Q points since
BILE bond issue with rights to stockholders.
The gain has made the rights more valu-
able, and II there was ever any doubt thai
the issue would not be fully subscribed
IL appears to have been removed. The
stock sold of . little Immediately after
the announcement of the issue. The argu-
ment has since been that the financing
meant the capitalization OF new construc-
ton and thus relieved the management
OF all necessity Of divertinG any part Of the
earnings for this purpose.
st. Paul il another stock which has ad-
yanced in expectation OF rights. The COM
pany built the Pacific coast extension out
Of the proceeds OF the big stock issue in
January. 1907. but has mortgaged the ex-
tension for 500. oOo. 900 and has the bonds
in the treasury. The new construction
embraces the building Of branch lines and
those who believe that the right to SUBJ
scribe for bonds will be given to stock
holders think that some Of the bonds will
be sold for construction Of branch lines
II for no other purpose.
One OF the largest banks and one the con-
troll Of which Is associated with fnanciers
out OF sympathy with the bull market in
its early stages reported yesterday an in
crease Of 81 900 900 In loans and a decrease
of Sio.ooO.o0o in cash.
The resumption Of dividends on Republic
Iron and Steel was the first increase OF
dividend by a steel company since the panic.
II not the first by any industrial company.
Also It was the greatest increase OF the few
enlarged declarations since the panic day. 1
for it raised the payment from nothing
to 7 per cen per annum. with :. OF i per
cent. extra in back dividend. The stock
was selling above par before the declara-
ton. seemingly in anticipation Of II. but
went II; points further up yesterday. That
the increase was justified was indicated
by the rema rk Of John W, Gates. one Of the
directors. that April was the best month for
the company's business since the panic.
The report that Judge Gary Is TO 60 on
the Erie board was generally credited and
was associated with the continued gain in
those shares.
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