The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-17

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nrs apparent reason ud"f such ciforui.
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IN FsAHsRse ~ rauu.rs hat MAJ he wrong
he In encuu fo luisr that thoae Who know
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the turH nav bot I've very lar On
Expectation Of D drcreasr IN loans on ec-
count Of The Humiliation 10 the stock market
dur lnR the week was widespread. although
IN well Informed quarters tho opinion had
been entertained for some time that nper-
afions To- connection With the repayment NJ
mat foreign loans would tend ~ rrc-
vent such reduction In the lonn account Of the
saaociRted hhnkS M might he expected to re-.
suit from other crusrs. MANY OF the commits
sion houses, however, held firmly 10 the be-
lief that the bank statement would show n
decrease In loans aud deposits, and thai with
the indicate gain IN cash there would he n
considerable Improvement Ia the showing
OF surplus reserve. For this reason the actual
figures. although varying but little from
those presente ed Of the end OF the preceding
week, were regarded as disappointing.
Discussion Of the status Of the n~egotiR-
ions for the placing In Paris OF the peunsyl-
vania Railroad loan had some Of its edRe
rubbed of by the receipt OF unofncial cables
from the French capital TO the effect that the
whole matter had been arranged and the
amount oversubscrlbed. There was no
absolute confirmation OF this report. but In
conservative quarters IL was believed that
the transaction had been advanced to a stage
where nothing could occur TO interfere with
it's success and thus the one matter OF greatest
interest to Wall Street in connection with the
disturbed condition OF affairs In Russia was
practically removed from the region OF doubt
and uncertainty.
Bearish use was made OF the imposition OF
new conditions governing foreign life in
suranoe companies doing business in France
and OF the attitude taken by President Roose-
welt in regard to the regulation OF the packing
industry on the ground thai the one was the
result OF the Investigation of the New York
insurance companies last year and that the
other miaht lend TO such legislation abroad
as wo uld seriously interfere with our export
trade,
Once again James r. Keene is said to be
the leader OF an aggressive bear party.
Quite q few people In the Street think the
real explanation OF the recent bull movement
In Baltimore and Ohio is found in the prob
ability that the greater part OF the new issue
was subscribed for by large interests which
are now endea voring 10 make n market for
the stock. When the rights were first quoted
they sold at about ! x. but their value dwindled
until at the time OF the May break in the
market they could be bought at a nominal
price. When subscriptions were made the
rights were worth less than 81 q share. and it
il surmised that some large interests gathered
in a lot of them and subscribed for the new
stock. The efforts TO make a market for
part Of this stock, bou ght for speculation and
not for permanent investment, are materially
assisted by the current rumors about an in
crease in the dividend rate next fall which
are su ficiently plau sible 10 attract a good deal
OF attention.
Smelters suffered a decline in price. partly
the result OF liquidation OF stock bou ght
some time ago in expectation Of an increase
in the dividend and partly on account Of
scattered bear selling. The trading was
closely scrutinized for any appearance OF
selling by large speculative interests in the
property, but of this there wss no visible
sign.
One Of the numors started by the weakness
In Union Pacific was that a pool in the stock
which the managers were pledged TO wind
ND this month had been Obliged to sell rather
freely in order TO fulfil the terms Of the pool
q greement. This pool, II was said. started
originally with 800. 600 shsr res and succeeded
in selling a good part Of its holdings at a
handsome profit before the disaster in San
Francisco not only made it necessary to
suspend operations of that kind, but to lend
support TO the market in order to prevent
generalization such as was threatened on
MAY ?. No figures are mentioned as to the
amount Of stock which the alleged pool still
holds for sale or distribution to subscribers
before the end Of the present month. Taken
alto Rether the talk on the subject 10 80 vague
as to SUI ggest that it is more in the nature Of
a deduction from the recent selling than
anything else.
There is quite a little talk to the effect that
pools in a number OF stocks will expire during
the coming summer under agreements epeci-
fying that stock remaining unsold at specified
dates before the usual period of money strin-
gency should be returned to the subscribers.
II il said that not only have such pools been
making strenuous efforts to liauidate as
much as possible before the time set for ex-
pirstion, but that som subs cribers, fearing
the result Of the return Of pooled stock. have
been selling in anticipation Of a pro rata d!s-
tribution OF the POOLS remaining holdings.
This would leave them technically short of
the stock, and II is contended that a good deal
OF the present short interest in the market
ia Of this kind. which Of course could hardly
be forced to cover.
pen buying Of Reading by a well known
operator In that stock did not convince the
traders that the turn had about been reached
as they we're by no means certain that this
buying was not used to Disguise selling OF an
entirely genuine character. The same opera
tor was noticed on Friday bidding for the
stock, but apparently taking care not to get
any. and this cngcndered the suspicion which
the traders have not yet shaken of that the
bidding and buying were but parts Of manipu-
lation for the purpose OF facilitating the sale
pf nOol stock.