The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-14
GOSSIP OF VAL sTREEr.

s"' npuVulALoh p7oolhn8 lankniu ana nh-
less again for want Of any new inspiration.
81. Paul and Union Pacific fell back per cent
eaoh' while Northern Pacific. Great Northern
preferred and Northern Securities we're ad-
Yanoed. Price movements elsewhere In the
list were uninterosting. The professional
bear Gro Wd that had been lighting the reoov-
cry stubbofnly for two days sold stocks down
In the American quarter Of the London mar
ket before the opening here Union Pacific was
quoted from tho other side at q decline Of
per cent from Fridays closing price and
other stocks AZ declines OF y 10 y per cent
from New York parity. No selling OF any
consequence Tor either local or foreign 40
count resulted from this demonstration.
The market opened In q very stupid manner.
On slight price Teoesslons all around the trad
ing became dull. The bear element was
evidently taking advantage Of small oonoes-
sions 70 cover short contracts. and lts buy
ing about onset scattered realizing on the
other aide. Even the definite announcement
that the st. Paul would build TO the Pacific
Coast was treated With indifference.
Brokers as a rule Expect the market 10 b.
narrow and Improbable FIR q while. and eE-
press that view Of the situation 90 freely -
probably TO discourage outside Interest. but
they would be willing enough 10 hold out
inducements II satisfied in their own minds
that operations for the advance had seriously
been resumed under the proper auspices. 1t
IL not good business for q broker 70 get q lot
Of his clients hung up with stocks In dull
market. II IL better 10 wait. he tells them.
until live opportunities are at hand. This
waiting attitude on the part Of brokers is
the part rather Of conservatism than Of bear
ishpess. Brokerage sentiment as . rule 10
not hostile to the market. Toward the end
OF last week there was exhibited. Indeed, on
the part Of a number OF influential Arms .
NgFa 49,. ~ 49,
shown before the break. Several very promi-
nent Western houses unAhhllAted with the
Gates leadership have taken positive position
on the bull side and are advising clients to
take on stocks conservatively. Several such
houses have addressed personal letters 70
their clients calling attention 70 the conditions
that have resulted from the recent liquidation,
citing the sold out status Of commission
houses the presence Of a large short Interest,
the accumulation OF stocks In the hands OF
the stronger Wall Street interests and the eHse
OF money as reasons why the tendency OF
prices from this level should be rather upward
than toward a lower level In this way the
market is being favorsbly advertised.
AZ soon as the market 10 right for II bull
campaign will be undertaken in PittsbuTg
Coal. hitherto traded In exclusively on the
PittsbuTR Exchange. II was introduced here
last week. The house that has charge OF the
stock In this market is one that has recently
managed several similar campaigns success
fully.
A conservative operator who has recently
taken a new position on the bull side OF the
market. after having looked the situation
over very carefully. says: This IL not going
20 be year for bearing stocks, In my judy
ment. except now and then as the short side
may be made attractive 20 the professional
crowd by a too rapid advance OF values.
am counting on big crops and easy money
There Ia an abundance OF moisture In the
ground and that. think. will insure Ne big
harvest, barring some great calamity Whlch
cannot be foreseen There Is room Tor
considerable deterioration and still Dig
crop Of winter wheat With rich harvest
and cheap money | don't see how you are
going 20 bear stocks probably from this
level You must member. besides, that the
actual investment values OF a number Of
prominent stocks here win be permanently
increased before the end OF the year. eT-
pect the dividends 20 be increased on Union
Pacific, AmAlgamated Copper. Baltimore and
Ohio, Reading, Norfolk and Western. and
perhaps some others. and then other stocks
that have no actual Investment value at the
present time because they yield nothing viii
begin soon 70 return dividends to their holders.
notably Southern Pacific. There is room for
all OF these things 70 be discounted in the
stock market. There has been some friction
here between men Of prominence, and We
shall probably hear more about IL from time
70 time but you cannot do any more than 70
be sure OF your fundamental conditions. and
II they are good other things have a different
perspective.
IL is the opinion OF some bankers that the
Pennsylvania rot It's money on very favor
able terms.
The feature Of the bond market yesterday
was the activity aud strength Of the Burling-
ton Joint -. which sold up TO iOlk. Anything
that might be q clue 70 the scheme Of read
justlnE railroad Affairs In the Northwest IL
curiously scrutinzed nowadays. II is pro-
provided that on Jan. /. 1905. these Burlin e
ton - may be redeemed at iO6 and Interest.
The survey for the Western Pacific CROSSES
the Hartman lines at three points, 90 that
the problem OF transporting construction
material Is greatly simplihed, IL may be
seen on the map that no important railroad
in the West has ever been built under condi-
tons equally favorable in that respect Con-
struction may be begun at several points
simultaneously with the material laid down
by a railroad with which the Western Pacific.
when finished, will compete.
Suppose. said q WAN Street conservative
you were carrying. say. 100 900 shares OF stock
accumulated last year AZ much lower prices,
and then suppose that you read the papers
every morning. a. OF course you would,
and found columns about railroad rate legis-
lation, columns about the deficiency OF
moral sense In the conduct Of financial Anairs,
disturbing cables on foreign politics and
fugitive paragraphs reminding you that
the navies Of two great powers az war we're
loose upon the waters, wouldn't II make you
feel like scaling down your holdings on every
rally in pricesi think II would, and think.
too, that one thing the matter With the market
ia that a number Of persons feel that way
Several Wall Street men once were Gssoot-
ated IN financing the construction Of large
ONCE building A. private enterprise. IL was
at a time several years ago when the steel
business was In a great way and nobody
could get any steel. These men were no more
nor less impatient than others, but they were
wiser than some. and while work on their
building was at a standstill for want Of struo-
tural material which the companies could not
deliver, they got bearlsh on Steel and Iron
eocurities and went short Of them The pros
perfty Of the steel and iron companies. they
thought. was too great 20 last. The time
20 sell stocks short. they had learned from
- Uhar thin l00kad