The Washington herald., 1913-09-21
WEEK Of ACTION
and firm TONE.
Wall Street Wakes Up On
Reading Showing and Ex-
pectation Of Melon.
OREASONFOR OPTIMISM
Only $l7,eOO,OOO Crop Money Given
Out of the $4,000, ,OOO-Utli-
ties Prosper.
NOREASON FOR OPTIMISM
BY /. A. FLEMING.

There were two important factors that
were partially responsible, the excellent
report of Reading and the belief that
the directors of the Union Pacific would
throw conservatism to the winds and
declare a big cash dividend for the
shareholders. payable from the millions
received for Southern Pacific stock for
which the company had issued many
bonds.
The directors of the Union Pacific have
not decided as yet just what they will
do, but the chances for melon even
Of moderate size. are growing remote
every day. About the only argument in
favor of this action is found in the be-
lief that a 7 per cent dividend would be
less Objectionable to the community than
the 10 per cent now paid. The company
has paid the 10 per cent distribution for
years. nor was there much criticism, but
the wish for the cash payment so much
desired has inspired the theory that 1t
would be well to cut the dividend, and
do it by distributing fat cash checks,
reducing the assets of the corporation
materially.
On every advance there was rush
= Of prOtit-taking; on every run-in of
shorts new lines of shorts were made.
But the bull movement, whether ILL
timed or not, was not gwen mucn snow
OF being something real
That there is anything in the enact
Inent of the tariff bill on which to boom
stocks seems to require a large amount
Of faith in an intangible asset, else have
the claims of the requirements of pro-
tective tariff TO foster American indus
tries for years past been all bOsh.
And vet II was announced that with
the advent of the tariff bill from both
houses a boom would be given stocks
and the boom appeared on schedule
time.
Another movement followed the enact
ment of the currency measure by the
House. on the theory that it was an
opportunity
Opportunity To Force Activity.
lore than likely it was just the oppor-
tunity that the big traders were looking
ior. for one excuse would have been as
good as another, and the street, tired
Of ing nothing. of marking time and
kite flying, undertook to wake up the list,
and were fairly successful in doing so.
OF the important gains of the week.
Cotton Oil preferred moved up points;
Steel Foundry. 8: Snuff. 3; Canadian
southern. 3: Central of New Jersey, a:
u. and H.. l.: Denver and Rio Grande.
21-4. Buffalo Rock Island and Pacific,
IL -: Central Electric. 21-4; Great
Northern Ore. 3-S; 500 Line, 21-i;
Lehigh Valley, 25-S; Nickel Plate. 3; Big
-Four. @I-S: Reading 5l-2; Sears-Roe-
buck. 61-2; SIoss-Shefield preferred. ;:
Steel and TnIon Pacific but a fraction:
Southern Pacific barely held its own.
the final closings of yesterday wiping
out much Of the earlier gain. Western
Maryland advanced points, and Wool
worth 3. while there were many more
0r less important losses.
Not the Time for Advance.
1t is admittedly not the time for expan-
sion in the stock market. and that such
4 comparatively small part of the ad-
vances were held throughout is an evil
denCe of the fact that the selling improved
on the advance, that il was a sCalping
market, where profits were frequently
taken and where another effort was made
on the part of the street to inspire pub
lie following. which did not come freely
although some of the Wall Street publi-
cations admit that commission houses
have made office rent and are feeling
4 bit cockey.
But Wall Street fears too much regula-
tiOn. continued antipathy on the part of
ill-advised lawmakers in Congress. and
more than all this, the money market
has not shown sufficient signs of let-up.
Wall Street doesn't like the administra-
tiOn and understands that it has three
Years, five months. and fifteen DAYS vet
10 SerV,
Frank A. Nanderlip president of the
National City Bank. of New York
pa ssed through the city on Friday and
spent some few hours with friends. He
Is reported as not being especially
favOrably impressed with market condi-
tiOnS.
Ncaterday's Action.
Business was extremely light. London
was closed. New York markets will not
open Monday until midday. being ad-
jOurned for the funeral obsequies of
former Mayor Gaynor.
Inactivity was the feature Gossipers
expect the bull talk on Union Pacific
and Reading to continue and that Steel,
too. will be made to look well so that
the life in the list. IS per cent profess
sional. will not pass away and acute dull
ness return.
With the opening there was a gem
-raI. but slow. weakening movement
leading to 1-2 point declines. some more
important Then very slow recovery
and in the final dealings a creeping up
TO or within small fraction of the final
figures of Friday. And most OF the
business was in the four leading stocks
which ali closed Is under the previous
final figures,
The first hour disclosed sales of 81 200
shares and but 5000 for the session,
emphasizing the dullness. There was
much profit taking early and some short
selling. covering of which gave the list
the stronger closing.
.,0oo.OOO Paid Out.
OF the much advertised $500 900 crop
money. for which bankers from the
South. East lin spotsI, and West, made
journeys to Washington, met in con-
ference and discussed the currency bill,
and told just what they needed, $1,000. 900
is said to have been disbursed among
the interested bankers. 1t is surely
descending into case of much ado about
nothing.
In the meantime the crops are moving
marketward, aided by rediscounts by
Western and Eastern banks. after the
habit and custom of many years stand
ing.
Just why other millions have not
reached the seat of war is a matter of
comment among bankers.
Either the favored bankers do not care
10 have the funds, do not need them. or
have not the proper security to offer. or
else the department must be holding
them back and conserving it's free cash,