The Washington herald., 1912-05-10
WALL STREET NEWS
Action of Market Irregular, But
Illinois Central Is the Only
Weak Feature.

New York, May s.-Sunshine and thun-
derstorms took turns during the stock
trading hours to-day in Wall Street and
the market was strong and weak in
sympathy with the weather. The day
ended with more clouds in the sky, and
the bears accordingly sold freely. In
spite Of this irregular action Of the mar
ket several issues made new high rec
ords during the day. and many closed
with important net gains. The one weak
feature of the day was Illinois CentrsL
and that went to a new low record price
FOR the movement. Il had a depressing
influence on Union Pacific, which owns
25,ooo shares of Illinois Central that
cost rs, and which now show a loss Of
So share. or sl2.S75.0Oo.
Reduction OF the English bank rate
was next to the low prices OF steel ma
terial, and the remarkably good outlook
for crops was the most important fac
tor making for higher prices Of stocks
Foreigners viii turn buyers now, espe-
oially as the low bank rate makes Amer
lean railroad stocks look attractive from
an investment point of view.
Steel Encourages Bulls.
The low price of steel is particularly
!; will probably remain at low levels for
a couple Of years, while the railroads are
expending several hundred million dol
lars for new equipment The low price
os steel viii do for the railroads and for
manufacturing companies that consume
the finished product exactly what cheap
copper did for the electrical manufactur-
ing companies. The activity Of the steel
business caused fresh buying move
ment to-day in copper metal. and some
large transactions were made a shade
above is cents pound.
Reduction of the Illinois Central divi-
oend was rumored, but the directors will
not act on # for more than a month.
Ihe company has lost heavily in earn
ings the past year, partly because of the
strike and partly on account Of the
weather. In the last six weeks its losses
have been severe in the Mississippi food.
The company has surplus enough 10 con-
tinue its dividend and there is no official
warrant for the rumor Of reduction.
But the price of the stock on the ticker
says that the dividend win be reduced.
A reduction would be advisable this year
because the company will need all Of its
surplus to provide facilities for hand
ling the record-bresIing crops that will
be produced in its territory-if IL ever
stops raining.
Rumors came from the anthracite le-
gions Of fresh demand for a real strike
on the part OF the miners. The best
information from operators is that the !
men are anxious to return to work and
that after a little more palavering an
ofhcial settlement of the labor trouble |
will be announced.
Specialties were prominent in the trad
ing particularly American Can preferred. |
Beet Sugar and Ice, all of which made |
new high records. Ice advanced on ac-
count Of the bond sale. Beet Sugar was |
moved up when announcement was /
made that the acreage planted in sugar |
beets this year is Is per cent greater |
than that of last year, with crop condi- |
tons as good as ever known. Besides, |
the Mississippi floods have DESTROYED |
considerable acreage Of cane sugar in
the lower Mississippi Valley