The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-07-21
TRACTION STOCKS
GET GREAT UPSET
INTER-MET BREAKS BADLY AND
II. n. r. Is WEAK AT FIRST,
BUT RECEIVERS.
EUROPE GETS EXCITED
MOROCCAN AFFAIR NOT TAKEN
SERIOUSLY on THIS SIDE,
But Is FIRE BRAND
OVER THERE.
EUROPE GETS EXCITED
lBy Thomas G. shntuslIN


NEW YORK, July 2o.-wau street
traders got such an upset today in
the traction shares that all en-
thusiasm WIS killed for the seq
sion. fnterboro- Metropolitan pre-
ferred broke four points and the
bonds two. Brooklyn Rapid. Transit
was weak also In the early trading
but 1t recovered as did also its bonds.
Cotton broke wildly again but grain
Aas strong. The net result of the
days operations was a series of losses
ranging in many cases as high as a
point But the market had been
advanced sharply In recent sessions
and this reaction probably would
have come even without the Inter-
boro- affair
Developments OF the last few dav.
had attracted the attention of trad
ers to the traction stocks in way
that VIII probably make these is
sues active for some time Interboro-
Metropolitan Insiders are loaded up
with the stock and since they bought
II With the idea Of advancing 1t be-
cause IL was to get contracts for new
suhways they will now rest a while
and resume the advance later on the
ground that the stock witt be more
valuable because 1t did not get any
contracts for subway extensions 1t
must be admitted that. leaving the
public comfort out OF consideration
the lnterboro- Metropolitan is better
of without the extensions. for II
can use its old lines to It's utmost.
capacity without increasing operating
expenses. Being deprived OF any hope
OF new suhways 1t can also reduce
operating expenses by denriving the
public of some Of the few reforms
recently introduced. The big earn
ings that can thus be piled up for
the account Of the stock Will. IL sne
doas not look TOO far ahead. justify
very much higher prices and enable
IRE Insiders to md market Tor Their
stock.
Something Back OF It.
On the face OF the actual earnings
of the Brooklyn Rapid Transit Com
pany the stock Of that concern In In
a strong investment position. But
bankers are warning their clients to
be very careful about buying any of
the fractions until the subway sit
uation Is settled. There IL something
back of the whole mess that puzzles
bankers for the peculiar delays and
shifting positions of persons in au-
thoFity anntt be- accounted FOR on
ordinary grounds. Wall street has
decided that somebody is trying 10.
deliver something to somebody that
ought not to he delivered and the
banking fraternity wants to know 3lt
about II before letting investors tie
their money up with either OF the
concerns.
Europe got excited again to-day
over the Morocco AFFAIR which is TO
Europe what the subway problem Is
to New York City. Europe takes 1t
very seriously bur there is not the
slightest chance of IL becoming
hear argument on American stocks
There il no chance OF a European war
over Morocco but II such a thing
we're to develop il would be a ire
mendous bull argument on all Ameri-
can stocks for foreign capital would
take refuge in this country and Ameri-
ca would be called upon to arm and
feed Europe. Such a thing would
furnish big market abroad. for the
bumper crop OF cotton that II grow
ing la American this year -sag
In the early trading considera hle
activity developed In the Hill stocks
and st. Paul. These issues maintained
much OF the gain to the close OF the
day. The movement was due to
another belief that reciprocity would
be adopted by the American congress
Railroad reports from the Northwest
show a good growth In traffic.