Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-23
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, January 23.-wall street
does not expect any deal in the anthra-
cite railroads to account for the level
which the stocks of those properties have
| attained. It admits that these issues
| have advanced on merit indicated by alb
sorptfon for important interests, but 1t
refuses to be anything but uneasy every
| time one of these stocks, especially
Reading, makes such a demonstration as
that of yesterday. Friends Of Reading
| predict that 1t will sell at $50 in year
or SO, but the street as a whole is in
clined to regard the processes which put
1t up by leaps and bounds as the mani
festation OF a reckless gambling spirit
which cannot help the general market.
1t stands to reason that there must be
| good-sized short interest in the mar
ket with stocks at their present prices.
There has never been a bull market
which did not accumulate such an in
terest as prices rose. There is short
covering from time to time but recruits
are gained steadily. and shorts unques-
t1onabiy paid the cost Of Readings adj
vance yesterday. On any good manipu-
lation theory Of the market it would be
sound policy to endeavor to impart such
Oh oppOHA oACS W IH0 CTdnSaCI1OnS ana
prices as would encourage outstanding
shorts and traders Of bearish proclivities
to extend themselves, and 1t is not too
much to say that the market has acted
ment to bears was being given by de-
sign and purpose.
Dlscard1ng the manipulation theory 1t IL
almost inevitable that when a bull market
q ftv&<V -,l-lz
not be preliminary to further advance
the short interest should grow. In such a
market as this every development that
promises an opening for q raid that may
mean prices will be utilized by the bears
This was unquestionably the reason for
the course OF copper last week. It also
serves to explain the heavy all around
selling when the squeeze in Reading dis
turbed speculation sentiment in the last
hour yesterday.
Much Of the talk that Is going on about
distribution that is taking place in the
high priced stocks, especially those that
have made in the last year and a half ex-
traordinsry advances to unprecedented
levels, Is tomfoolery. If nothing else goes
to prove 1t then the reluctance Of the aver
age brokerage house to allow its customers
to carry these stocks, to one who knows
what the effect Of this reluctant attitude
49, II Is more or less convincing evidence
that accumulation by each individual and
powerful interest rather than distribution Is
still In process.
Apart from the fact that brokerage
houses live by commissions and that an
account tied up with high-priced stock or
stocks means less in commissions for the
broker than accounts with the same amount
of money carrying lower priced issues,
brokers are, as they always are, unwilling
to stand the chance of being hung up with
costly shares.
Bartlett, Frazier & Darlington say: I'VE
have one piece OF advice to give in regard
to Union Pacific and that Is to keep clear
Of the short side of the stock. All offer
ings of Union Pacific are readily absorbed,
and when the stock resumes its advance it
will cross 100 quickly that there will be
no chance of covering with comfort. There