The Washington times., 1911-07-23
SPECULATION IN NEW YORK STOCKS
DOES NOT SHOW MUCH INCREASE
Granger Stocks But Local Middle
Hurts Specuaton-Cop Are Factors Investigations
by Majority in the House of Representatives

NEW YORK, July 23.-Stocks were
somewhat more active during the week
and displayed a generally strong under
tone which features the trading element
took pleasure in attributing to better
weather and improved crop conditions
Such, indeed, may have been the case
for crop advices were better, but the
appreciation of this fact, so far as spec
ulative operations were concerned, did
not extend far beyond the professional
element In other words. dealings were
of the concentrated character and were
confined to comparatively few issues.
suggestive of traders operations, and
important commission houses reported
no expansion of outside interest, and no
increased participation by the public in
the market.
But on the other hand there was moth
ing that in any way suggested general
or disquieted liquidation, and this was
well illustrated in connection with
Thursdays violent break in the Inter
borough metropolitan issues. The trad
ing element in the market was much
elated over the sharp advance of the
preceding days in the Interborough
securities, and the whole Street acted
as though at last 1t had found some
thing in which a little money could be
made Sentiment was hopefully inclin-
ed, and men who had not ventured a
dollar in a speculative security for
months bought Interborough bonds with
great confidence.
Disappointing to Spectators
1t was a sore disappointment to very
many brokers and spectators when,
over Wednesday night, the whole local
subway situation was revolutioniZed.
Various city officials. the president OF
the company itself. and leading bankers
had definitely stated that the Inter-
borough had secured the contract. The
ma jority of operators was caught wholly
unaware by the sudden shift. but the
heavy selling of the various Inter
borough issues. with declines Of and
points which followed. had a very slight
influence on the general list, and none
which was enduring. for Fridays re-
covery more than made up for Thurs
days declines.
One may say, of course, that there is
no special reason why a granger rail-
way stock. for instance, should decline
because a local traction security breaks.
but that is not the way, usually, with a
speculative market, and for the very
well-knOwn reason that the holders Of
the local traction stock are holders OF
other securities and the enforced lGui-
dation of the one stock may WeakeI
the entire speculative position of nu-
merous men with consequent decline IN
issues in no ether way concerned with
the weak feature. In the present case
however, nothing OF the kind happened.
and this was regarded as indicating
general market strength.
Unpopular Traction Stocks.
The disappointment of Wall Street
over the local subway matter was in no
way concerned with any particular
sympathy for the company directly in
terested Interborough-M metropolitan IS
not popular security, for no one can
disassociate it from the underlying
properties in which so much money was
lost. 1t was simply that a most widely
circulated tip upon which countless men
had acted went wrong That the final
award of the contracts to the SrooklNn
Rapid Transit Company was greeted
with no enthusiasm is not surprising.
Not because 1t, also, is an unpopular
and disappointing stock in which Wall
Street has lost much money, but be-
cause there was no market tip on the
issue.
Aside from purely speculative con-
siderations, however the financial dis
trict cannot bring itself to believe that
the Brooklyn company can hnance the
undertaking, either d~ireTtiy ~ ~ tho inqn. tb.
company will be permitted to 10 sc.
after Mayor Gaynor's bitter, and, as
many persons think. unprovoked assault
uDon the companY'S credit. The fallure
Of the Rrooislyn Rapid Transit securities
10 make any material response to the
great victory is an accurate measure OF
Wall Streets opinion of the 1nalr. ~
cannot believe the award final or; II
final 1t does not believe 1t benenclal 10
Oh
Absence of Liquidation.
What the final outcome of the sub
u-av muddle will be is difficult at this
time to determine. One may foresee IN
II the elements of bitter controversy,
a veto by the mayor against the action
Of the board of estimate in making the
sward, litigation of an individual no
ture, taxpayers actions, and the. like,
and perhaps a reopening Of the long
drawn-out controversy with a COM
promise and something favorable to the
Interborough in the end.
In the stock market of the week the
subject, without doubt, occupied place
entirely disproportionate with its impor-
tance in the general situation, but 1t
was none the less the chief topic OF dls-
cussion in financial circles, and a consld-
erable market factor. The break in In
terborough issues also served the good
purpose, already pointed out, of dem
onstrating the entire absence Of dis
quieting liquidation in the market.
Cotton's Violent Break.
From the standpoint of actual influ-
ence in the general situation the better
crop and weather news Of the interval
was of vastly more Importance than the
subway matter, and in banking circles
the violent break in staple cotton was
regarded as the most favorable single
development of the week. Naturally, the
weakening of the technical speculative
position in cotton, through an apprecia-
ton of the fact that in consequence OF
the enormous crop the price of the
staple was altogether too high, had
much to do with the decline. Liquida-
ton, in both old and new options was
incessant and resulted in declines rang
ing from 20 to about 100 points, or
from So to $6 bale.
Advfces from the wheat and corn
belts were not as uniformly favora BILE
as these which reached the markets
from the cotton States, and this was re-
flected in the price of wheat and corn,
in marked irregularity, as the news ap-
reared favorable or otherwise. To Wall
Street. perhaps. the crop news appears
more highly contradictory this year
than In the past, but 1t is doubtful II
such is the case, and the only differ
ence between this season and others, in
This particular. is that with little to, oc-
cIInv it's time in securities, Wall Street
is having more attention to the harvests
than on previous occasions.
Conflicting Crop Reports.
The rather stubborn resistance shown
bv Grain prices and the quick recoveries
a. hot, corn and wheat are taken by