Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-30
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, January 30-Highly specu-
latiye quarters which have been openly or
have been suspected of being bearish for
turn. at least. seemed to have almost a
clairyoyant knowledge that congressional
attack was to be made on the Pennsylvania
railroad yesterday. John w. Gates. who
was in Washington on Saturday attending
the Gridiron dinner that night, and on
Sunday. returned to this city yesterday,
and after the close of the market gave out
rather buliish interview. saying among
other things: I'VE have been eight months
on the upgrade. and have now come to a
little knoll in the road, and have got to
back little to go over it. After good
| shakeup stocks will go higher than ever
K
1t is recalled that C. G. Gates q Co.
SAID in market letter about the middle of
last week that they would not advise pur-
chases of stocks until the market had
quoted down or had reached a lower level.
The Gates crowd is credited with having
had very much to do with keeping the
market in an excited state, and with opera
tons designed to bring about lower level
X
An eminent judge of the securities market
says that whatever the cause of the re-
action which one chooses to assign, there
can be no doubt that it has improved the
speculative situation greatly.
A good reaction is hard to bring about
unless the market is ripe and fit for one.
Edward Sweet G. Co. say: I'm the best
informed quarters it is maintained that any
thing like permanent bear market is not
to be looked for until the general condition
of the country is less prosperous than at
present.
Dick Brothers & Co. say: SIN our opin-
ion, this break in the market will materi-
ally improve the speculative situation.
There has recently been overtrading on
the bull side of the market and in many
stocks there have been unwieldly bull ac-
counts which have constituted menace
to the safety of the general list. Reading
has already shown this Further forced
selling may follow the shock given to
bullish sentiment and the damage done to
margins. This selling, however, should put
the market in a position where good stocks
can be Bought safely
4
Bartlett, Frazier & Darlington say that
1t must be remembered that the selling
movement had been going on for more than
a week and that 1t had it's origin in GER
tain big speculative quarters who are
very well informed on Washington develop
ments. 1t is useless to try to explain the
reasons for the seeming decentralization in
the market. That there has been a very
powerful clique operating Is obvious. and
1t is also obvious that 1t has been fur
nished with excellent information from
some quarter or other. 1t is also certain
that the SfOc0tS sold DURING the acf
have found a resting place In stronger
hands. Furthermore, there has been no
change In the excellence of general con-
ditfons. The technical position of the mar
ket is vastly improved and on the next
advance we believe that now high prices
will be established. 1t is obvious that Union
Pacific is regarded as key to the market
and for that reason 1t was made special
object of attack"
The congressional demand for an inquiry
into the Pennsylvania to discover If it's
interest in other roads constitutes a COM
bination In restraint of trade was not in
| Itself sufficient to cause the heavy outpour-
| ing of stocks in the last hour Yesterday.
The liquidation was started by violent SELL
| ing on the publication of the Washington
news, but it was very apparently selling
that was designed especially to- start iiuui-
dauon. The inquiry will come to nothing
- ioui ioduS named IN the resolution of
inquiry, the Pennsylvania owns control of
but one directly or through other com
| panies which it does own.
me total holdings of stock by the Penn
| sylvanfa system in the chief roads named
| bear the following relation to the capitaIi-
| zation of those roads:
Total capital. Penna owns Pet
Baltimore Ohio. .S1S4, 25S, 524 S67, 67S 300 SO
chesapeake 50, 100. 400 Is, $3.50, 900 249
Norfolk ...... 81 457 a0o "a $40 o0o as .
Northern Central. II, 1873, 425 9,401 $50 81 6
The PENNSYLVANIA railroad has earned
| about $1,000, 100000 gross since 1861 In
| wages. expenditures for improvements. ex-
tensions and additions and in dividends
| and interest, it has paid back to the public
| all but a small percentage of these enor-
nous receipts.
ARRAIGNS FORESTRY pupEAu