Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-05
BULLS AND BEARS
5 Id nlspateh q M st.r.

-'ial Dispatch 10 The star
NEW YORK. March 5.-The very extern.
stvs absorption OF securities. albeit a con-
centrsted absorption. both for cash ana
margin, which took place while securities
were dragging along the bottom for six
months from the fall Of 1903 10 the opening
of 1904. underiies the strength that the mar
ket has shown since and should not be for
gotten In any calculation as to the probable
course of prices. There are men today who
took on large quantities OF steel common
around 10 and steel preferred around 30
which they stIll hold. and these lines more
than amply cared for by the dividend Yield
of the preferred. are not likely to be DIS
iributed by the average rate for money In
the next twelve months with Industrial
conditions what they are.
-
Men whose Union Pacific lines are based
on stock accumulated around 10. where tho
present dividend rate Yields gu per cent are
similarly situated. Moreover. In the rise OF
the last two years averages on stocks
picked I'D in 1909 and 1904 have doubtless
been greatly reduced by IN and out trading
There is an Important difference between
speculative LIQUIDATION and inside distribu-
ton as the Wall street trader understands
those terms All the evidence obtainable
goes to show that what has taken place In
the stock market since the turn OF the year
has been unloading by spectators and large
speculative operators. rather than selling by
the so-called inside interests
IL would seem almost trite to say that II
the insiders had unloaded In addition to fhe
speculative liquidation that had taken place
prices would have fallen two OF three times
the decline that they actually show Who
has taken the stocks7 Not the public
surely. Such a public as has been In the
market was not large enough or voraclous
enough to absorb even the selling by pro
fessionals. both large and small The pro
fessionel traders have not taken the stocks
Tor they have been selling. and the profess
sionai contingent has been bearish. The
large majority of stock exchange houses has
discouraged purchases
IL seems almost impossible to esoape the
conclusion that the so-ealled insiders and
inside pools have taken the bulk OF the
leading stocks that have been sold not ag-
gressively, but they came out For a
month the market has moved over a mar
row price range without any great falling
of in business. and under ordinary circum-
stances one would infer that such a move
ment signifed accumulation or dstTibu-
ton. The average trader Is In possession
OF all the necessary data In the facts of
day-to-day experience 20 form a fairly ac-
curate conclusion as to which process 10
going on.
-
Some persons think that the Industrial
list will go little lower IL for no other
reason than to place the loans on such
collateral I'm a better position, and that
commitments in these stocks will also TO
some extent be shifted TO the standard
railroad list. In some quarters the view
obtains that some such shifting Is going
on from Amalgamated Copper to Union
Pacific. although the peculiar course OF
Amalgamated with reference to Union Pa
cihc Is otherwise interpreted elsewhere.
For instance, one theory is that the Anal
gamated and United Copper interests are
selling out on each other. Another Is that
the Amalgamated insiders are endeaVotinK
having induced him TO part with his trou-
ble-making mines In Montana.
Still another view is that Gates or some
other large operator is playing q lone hand
against Heinze.
all the pabulum that has been offered for
stock market consumption for a month.
The wonder Is not that prices have de-
clined but that they. have had relatively so
small decline.
=
One inference that might be drawn nom
the failure of the stock market to make.
a bullish response TO the announcement OF
Secretary Shaw that he would deposit
the money market have been exaggerated.
and that these fears rather than the actual
facts have been useful in causing specu-
lators to let go. .. ....