The Washington herald., 1913-12-09
MARKETS TONE
CALLED GOOD"
Gradually Widening Interest
Reported by Houses Deal
ing with Operators"
SEEK INVESTMENT BONDS
Capital Traction Securities Continue
Active on Local Exchange.
Mergenthaler at 2l0.
SEEK INVESTMENT BONDS

AlthougI. a number Of conflicting devel-
opments confused the stock market yes
terday, confidence predominated and
Union Pacific, Steel, and Reading held
their position as leaders at advanced
prices.
Tobacco issues were notably strong.
American Tobacco sold at 80, up points.
Lorillard rose 3. Canadian Pacific rose
IL, with active trading for foreign ac-
count on the rumor that a large melon
would be cut for stockholders.
Opening prices were firm, with advances
in Union Pacific, Steel. and Copper.
weakness in New Haven that carried
the price back to Is S-S unsettled the mar
ket temporarily and brought dullness
rather than weakness. New York Cen
trail lost "a points. Decrease in earn
ings is a sufficient explanation Of the re-
action in both stocks.
Heavy buying in Reading carried the
price to 164 IA There Is rumor current
that this company will proceed with its
plan for the separation of the coal COM
panies from the railroad without further
pressure from Attorney General Mercy
nolds.
Rig Traders Buy Reading.
Plans for the segregation of Reading
assets have long been under cOnsidera-
tion, and any distribution would undoubt
edly bring a sharp advance in the stock.
The lowest figure that the street is willing
to accept, in theory, Is s225 a share for
the old stock Some of the biggest
traders on the floor were conspicuous
buyers yesterday.
Southern Pacific maintained a firm tone
in spite of the report of flood losses along
its lines in Texas. United States Express
lost 3-4 points on the announcement that
the government would increase the weight
limit to fifty pounds January l for pack
ages by parcel post.
Amalgamated Copper was under pres
sure, with London selling. The increase
OF l5,30O,0O0 pounds in stock during No
VembeT was about as expected, but
break that occurred IN the London mar
kets upon the publication of the figures
gave the stock weak tone here.
American Sugar that passed out as a
trading stock some years ago is coming
back from investors far from pleased with
present earnings or future prospects. A
three-point drop yesterday represented
the marketing of shares that have been
held in strong boxes for years past. The
company will probably show that the
present dividend is not being earned and
numerous suits for damages are threat
ened.
London Houses Were SELLERS.
Except Tor purchases OF Union Pacific
in the early dealings and Canadian Paci-
fic later in the day. London houses sold
stocks The announcement that The So
COZ. 900 Dominion of Canada per cent
bonds bad been subscribed for TO the eX-
tent of only Il per cent. leaving So per
cent on the hands Of the underwriters.
depressed ne English market. British
consols were weak, selling around Il 3-4.
An easier tendency developed in the
money market. with renewals at 5 1-2
per cent. Investment bonds were in
slightly better demand, with inquiries
for high grade railroad bonds and NUM-
cipal issues.
Floor traders called the tone of the
market good. There is a little expansion
noted in the strictly commission business;
but houses who deal for operators, as the
semi professional trader is termed, re-
mort a gradually widening interest.
The dem nd for Steel common slowly
absorbs all the offerings as they come to
market The stock acts well Union PaCi-
fic climbs up steadily and with a fresh
speculative interest in Reading the three
stocks shOIld prove excellent leaders in
advancing the market.
Capital Traction Bonds Popular.
Buying Of Capital Traction bonds,
seemingly along the same line as had
been followed for several days preceding,
was the most notable activity on the
Washington Stock Exchange yesterday.
The buying Is believed TO be done for
apparently well satisfied local investors.
The fact that the company Is to issue
S92J, coo OF per cent bonds, which are
NOW in its treasury and are TO be sold
1;nder the direction of the Public Utili-
ties Commission, it was pointed out
yesterday. seems to cut no figure in
these securities.
No particular incentive to trading in
Washington Railway and Electric is and
Potomac Electric issues WAS apparent
Washington Gas stock well maintained
nrices at S4aS4 IL in fractional lots, but
here too. there was no apparent in
,.antive to either buying or selling.
WASHINGTON Railway common main
tanned an even bid around Sc IA, with
fractional sales at Sc 1-2
notable sale was that OF Chapln-
sacks stock at $50. There is rumor
that there is under consideration a
stoc, issue dividend on Chapin-Sacks
which. If ordered, would probably make
Yesterdays prices reasonable.
A small lot Merganthaler ex div. sold
at 30 1-2.
steel TIant Resumes.
The Maryland Steel Company resumed
operations yesterday morning at its steel
making department at Sparrows Point
after a shutdown since November Il.