The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-10-05
MARKET LEADERS
LAYING PITFALLS
SEEK TO TRAP PRoFEssIoNALs
AND STOCKS ARE IRREGULAR
IN CoNsEaUENCE
ST. PAUL GOES DOWN
ITS LOWEST PRICE SINCE 1907.
WESTERN UNION ADVANCES
OWING TO REPORT OF
NEW DIVIDEND.
ST. PAUL GOES DOWN
BY THOMAS G. sHorwELI..

NEW YORK. Oct. 4.-s,ocks closed
duh and irregular to-day with losses
OF about point In standard issues.
Two stocks 10 attract attention were
- Paul and Western Union. The
former was broken to the lowest price
touched since the panic OF 1907. and
the latter advanced to a new high
price Tor recent weeks Steel and
Union Pacific declined stubbornly.
and It was evident that they were
being sold by professional traders.
Inc big people are doing nothing
much IN the market except laying
traps for professionals just now
"hiie there is nothing to justify lib
eral buying OF stocks on fundamental
grounds, the technical condition
makes a rally much more proba BILE
than decline for the imm ediate fu-
tore.
st, Paufswwcakness was due to a
Widespread belief that the stock Ia
now diseounting a reduction of the
dividend to per cent. at the next
meeting. St. Paul under par will
look attractive with a per cent. divt-
oend. and IL the directors believe they
can maintain It on 5 per cent. rate
the decline must be nearly over. The
insiders sold the stock enormously
90 points higher. and they kept SELL
ing 1t until 1t had broken 100. Per-
haps the new low levels are due to
manipIiatiye movements designed to
discourage small stockholders and
make II easier to get the stock back
Western Union Advances.
In western Union the strength was
due to report that the stock would
be put on per cent. dividend
basis at the naxt meeting. This state
ment Is not official. for nothing could
be obtained at headquarters. The re-
port. however. Is believed In conser-
vative quarters. and the earnings and
management OF Western Union tusti-
~ the confidence that the stock mar
ket displayed to-day in the report.
AS American Telephone and Tele-
graph owns about 80 per cent. of
the outstanding stock of Western
Union. an increase of the dividend
to per cent. basis will mean the
addition OF nearly 100000 to the
income OF the telephone trust avail
able for dividends on its stock. This
10 equal to ] per cent. on telephone
stock. That stock improved only
fraction to-day, but 1t has been one
Of the stocks that remained strong
through all the recent smashing of
records In inc street.
United States Rubber common
stockholders may be surprised to-
morrow with dividend at the tate
change their minds over night 1t will
be declared, for formal decision has
been reached by the executive COM
rntttee TO begin the payment.
Reduction IN Steel.
A reduction by the Steel trust of
81 ton in the price OF finished steel
material sold out OF warehouses dts
couraSed trading 10 the stock. Per-
haps the most remarkable thing
about steel, however, was tho fact
that rumor OF a dividend reduction
found many persons ready TO believe
II. The Steel trust 10 ore of the Germ
panies that need not reduce its divi-
demo even In year OF real trade
depression except as q matter OF pol
ley. 1t has gone through some pref
~ bad years. hut has more than earn
ed its dividend rate even in the worst
times.
Steel is worth what II is selling for
even Il 1t Is going to be torn TO
pieces by the government, and not
even the government authorities be-
lieve that complete disintegration Of
the trust is possible. Reports from
responsible authorities in the steel
and iron business seem to indicate
something Of revival In business.
The plan for readJustment OF the
American Tobacco Company securi-
ties will be filed Tomorrow or Friday.
according to report. Some profession
al traders insist that they know the
plan OF splitting the concern into
three companies has been turned down
by the government. but bankers iden-
titled with the protective committee
say that there has been no hitch.
Atehison Shows Gain.
Atchison responded to Its favorable
annual statement, and closed with a
slight net gain. The company seems
to be In about the best shape OF any
of the big railroads.
designations OF II. G.; Frtck and w.
+. Corey. from the board OF the United
States Steel have been expected for
several days. In Justice to these two
men II should b. stated that while
both Of them probably made money
on the decline In Steel around the end
Of September they are not the ones
whose names figured most in the street
gossip OF raiding directors. Their
friends believe that both OF them
would have retired anyhow. and whats
ever selling they did early last sum-
mer was probably due 70 their assiro
IA ~At nnf n foEnnanv IN whfNh thASf