The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-30
WALL STREET NOTES
Bank Statement Not as Fa-
VOrable as Was Hoped.
STRENGTH SHOWN BY PENNsY
Hartman Stocks Show Slight Weak
ness, but southern Pacific is Doing
Better Than UniOn-HiiIs Retire
rnent. II True, VIII Not Affect Bis
Lines, as lie VIII Remain In Touch.


New York, Dec 29-Vague rumors
of more trouble accompanied the de-
cline in Reading. but it was believed
that there was no large quantity Of
weakly held stock hanging over the
market As on Friday, talk was for
the most part about a Western house
the identity Of which no one seemed to
know. but in a few places mention was
made of one or two traders the condi-
ton of whose affairs could never be
more than a very transitory factor in
the business of Wall street.
Undoubtedly Individual customers OF
houses have been hurt. and such are
apt to grasp opportunities to liquidate
on rallies so as TO escape in the future
anxieties like those they experienced
in the past week. If IN addition one or
two operators should be obliged to pay
the penalty of overtrading, the street
as a whole will be none the worse.
Expectation of a very favorable
bank statement was not entirely full
filled. although ehe presentation was
not by any means a bad one It's least
satisfactory feature was the increase OF
upward of 100000 in the loan ac-
count. which was expected TO show
shrinkage as result of the liquidation
in the stock market during the week.
The explanation of the expansion IN
this item is probably found in the
transfer of a number Of loans from
London to this side as a result of the
comparatively poor statement made by
the Bank of England and the steps
which the managers Of that institution
have taken 10 strengthen fits position.
1t has been known for some time that
q number of loans obtained abroad by
New York operators were TO mature at
about the end of the year, and as
result of the discrimination now prac-
ticed in London against American col
lateral these have now TO be provided
for at home
Contrasted with Union Pacific, Penn
sylvani8 showed decided strength. and
the belief gained ground that certain
large interests which were prominent in
the bUlliSh operations in the former dur
ing the year have now turned 10 the
latter as affording the best opportunities
for profit on the side of higher prices.
Apparently. it is taken for granted that
a movement could be made in Pennsyl-
vania, even if the testimony IN the inter-
state commerce investigation of Union
Pacific and its allies was Of a kind 20
restrict speculation in the so-called Har-
rman stocks. Pennsylvania has had no
rise Of consequence in a long while, al
though the effect on sentiment of an
important movement in the stock OF
the premier railroad Of America could
hardly fail to be considerable.
1t is notable that Southern Pacific has
acted relatively better than Union Pa
cife of late. in the break about three
months ago. when Union Pacific dropped
TO $50, Southern Pacific, Of course. dropped
TO 80, but on the present occasion. as on
the one earlier in the week, Southern
Pacific has held at q. when Union broke
we'll below 17g. The difference in the
action of the stock is probably due TO
liquidation Of speculative accounts in
Union, this stock having been much
more of O favorite than the other with
the trading element
On the subject Of the attempts to limit
railroad rates by law, the weekly letter
Of a conservative house says:
Rates ought TO be limited by com
petition, and, therefore, bona fide com
petition should be f0stered in every pos
cibIa NOV nv OIL GOD ,;tf-o-r. -. III
roads will not De well run unless they are
profitable, nor unless they are profita-
BILE will the necessary capital to bring
their capacity up to the demands OF a
rapidly growing population be found; and,
therefore. whether the well-meaning al
lies of demagogues like it or not. any
successful attempt TO make railroad rates
lower than is really profitable must re-
suit in the business Of the country not
being done. In such a case Il would
not be only a few scattered communities
who would find it difficult 10 get coal.
but the big cities of the country would
rapidly run short of both coal and pro-
visions.
J. J. Hill, in announcing his intention to
retire from the presidency of the Great
Northern on July /. says he has completed
his life work. This has been accepted in
some Wall street circles as an intimation
that Great Northern stockholders have
received their last melon. Such a conclu-
sion does not seem to be 1t all justified.
Mr.. Hill is still strong and vigorous. and
It IS extremely improbable that he would
retire if he did not feel sure that in the
hands Of his sen the road could maintain
the record which, under his own direction.
it has made in the last quarter of a cen
fury. The president of the Great North
ern is not the kind Of a general that would
retire under fire, and the assurance that
he viii relinquish the active management
Of the roads affairs next summer is tanta-
mount to an assurance that he expects
| that all matters relating to the proposed
! capital expenditures and the entrance of
other lines into territory heretofore exclu-
sively his own, viii be cleared up by that
time.
| If there was even remote possibility
/ of a fight between st. Paul and the Hill
roads over the formers extension to the
Pacific Coast. Mr.. Hill would not think
/ of retiring while it remained. But there
never was a possibility of trouble over