The Washington herald., 1911-05-03
WALL STREET NEWS
Market Sustains Slight Rise
in Stock Prices.
RAILROADS PLAN CHANGES
Increase in Volume of Transaction".
Cotton OIL Offers Regular Divi-
dend-Coal Companies to Separate
from Raflvays-Corner in Wheat.
Options Rise-Reaction Overdue.

New York, May AFTER seven days
rise in stocks, which yesterday assumed
the form Of a decided increase both in
the volume Of transactions and in the
extent Of the advances made, a display
Of reactionary tendency in the market
was logical enough and was certainly
looked for by the majority of expert
enced spectators. Indeed a reaction
has for some time been overdue according
to established precedent, and the seven
days continuance movement of the mar
ket in one direction, even II the ground
covered was not greatly extended, has
been unmatched before the present year.
Considering all this. the fact that
stocks declined to-day only slightly, TAX
en- as a whole and that many prominent
stocks advanced speaks rather well for
the present general stability OF market
conditions.
There were two rather interesting an
nouncements. one that the American Cot
ton Oil directors had declared the annual
seni-annual dividend of Ne per cent on
their company's common stock and the
other that preparations are making by
some Of the leading anthracite railroads
that will be substantially segregation
of their coal lands.
The Supreme Court has plainly indi-
Gated its view although not in the shape
Of direct formal decision, that the
present coal company Of the Lehigh VAL
ley Railroad Company is a dummy or
ganization which must be radically
changed if the company desires to avail
itself Of the privileges held out to the
coal-caTying railroads under the gen.
eraI scope Of the construction Of the
law previously adopted by the court in
the so-called commodities case"
Form Separate Firm.
AS stated in the news columns this
morning, the only question to be decided
by the directors OF the companies con-
cerned is whether their companies shall
in each instance place the business CT
carrying their coal in the hands OF an
entirely separate company or shall make
a sale outright of their coal lands to
separate coal mining organizations IN
the one case the new company would be
merely a merchandising company; in the
other, it would do a coal mining business
out and out. Both forms would be un-
doubtedly legal under the law.
There are railroad companies. like the
Lackawanna, that have already taken
the necessary steps toward arranging
their coal business-so as TO comply with
the Law. 1t may be accepted as fact
that all other similar railroads in the
same position must sooner or later, and
low the same path; and it is also true.
disp!te any denial that may be made.
that the lawyers of nearly all these COM
panies are now engaged IN bringing the
matter TO a conclusion.
There were far more interesting &C.
velopments to-day in the produce markets
than on the stock exchange; and these
had reference 10 the operation of small
corner in the May wheat option In !
Chicago It Is well known that one I
powerful speculator in grain Is In con-
troll Of a large amount of wheat avail !
able for immediate delivery in Chicago !
or nearby places. and this individual /
to-day accepted delivery of considera- |
Bile further amount OF May wheat re- |
Gently pure hassd by him.
May Options Rise.
Therefore. to-day. the price of the May !
option rose to a heavy premium over
those of more distant months and the !!
price of the distant options sympathized
with the movement 10 some extent |
The actual crop news to-day was in no
way unfavora BILE, although there was a
speculative effort of the moment TO
make out that the weather had become |
too cold in the Northwest. The growing |
wheat is. however. too far advanced to |!
suffer from frost at this time in all ex
cept a few isolated districts.
The basis of the action taken by the !
directors of the Cotton Oil Company in !
making a regular distribution of their !
stock was something OF a surprise to |
speculative Wall street inasmuch as a |
recent sharp fall in the price of this !
stock has been taken as indicating that |
there was a possibility that the dividend |
might be reduced. II is understood that |
the business of the Cotton Oil Company |
in the first half OF the fiscal year. just |
ended. was not entirely as profitable as |
in the corresponding period a year ago |
The prospect is however. improving. and |
the company has a large surplus in its
treasury. which the directors felt justi-
fed in dra wing unon slighflv for the nay