The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-12
GOSSIP or WALL sTREET.

-a~ - " NOuNHtg nQNUlnK UIyCOlEANInK
In the fact that bullish activity does not
embrace the whole list at this time. We're
~ Otherwise there would indeed be cause
LOT concern. The one factor which IL not
entirely satisfactory from a stock market
point OF view Ia the money situation, although
this Is improving and will continue 70 Inn
prove so long AZ the large interests succeed
IN holding speculative operations In check.
An outbreaks OF bullish activity in the general
INST would seriously endAnGer the rood that
mas oeen accomplished In the way Of restor-
ING normal money conditions, while q con-
tinusnce OF the present condition Of restrained
enthusiasm will not only result in accumu-
iAuon OF the sinews OF war. but an increase
IN the ardor for the campaign which IL il
felt will be waeed on the side OF advancing
prices later In the year. 1t IL not that the
public refuse 70 Join. but that they have not
yet been invited to come in.
On enormous transactions steel common
rose to so at about noon yesterday for the
nrst time since 1901. and at the high figure
mere was heavy covering OF shorts. A
single transaction OF 10. 800 shares was re-
corded between 1 and q o clock, an unusually
large block even for this stock. The highest
point ever touched by Steel common was
IS In 1901. and in 1901 the stock sold down to
va the sinking fund bonds selling at the same
time as low as SSH. There are still a good
many Investors mo hold bonds and stock
bought at about those prices, quite a number
having bought bonds at about 20 and taken
ten shares Of common with every bond, maxi
ing a price OF about 90 for an investment
paving 5 per cent.-the price Of the bonds
ana the stock combined. being a very low
basis on which TO secure the inter est return
on the latter security. The bonds have
now crossed par besides having paid their
. per cent. interest right along. and the com-
mon stock has increased its price six fold.
ThnGA NnSAANAs@ ~ --I. H.
stock for nothing. but q profit Of 20 points
on their bonds in addition. and many Of them
are more determined to hold on to the two
securities to-day than at any time in the
last two years.
The big block Of Steel which chan ved hands
at so was taken by an operator who IL often
prominent in the manipulation OF Reading,
and most brokers believed that the purchase
was made for long account and did not rep
resent the covering OF q short limo. A num-
Der OF large traders came into the stock on
the bull side at the high level. and IL was prob
ably to discourage their operations that the
recession OF about half a point was allowed
to occur in the late afternoon.
Southern Pacific took the place OF Union
Pacific az the bull card among the Hartman
issues, as there was an appearance Of heavy
realizing by traders and others who had
followed the lead In the latter when IL was
reported that the annual report would soon
be given out. There was no great display
OF enthusiasm over the new bull leader, az a
movement supposed TO be designed for the
purpose OF facilitating realizing In another
stock does not possess the kind OF foundation
which IL even to speculative
traders. In some quarters II was said. how-
ever. that the bullish talk on Southern Pacific
really proceeded from knowledge that some
new financing would be announced before
long. and that this would be made the medium
for conveying important rights to stockholders.
The most plausible story Of this kind was a
repetition of one heard before to the effect
that the outstanding preferred stock would
be bought in, In accordance with the pro-
vision for its retirement. and that after
ward the entire 800. 900. 900 Of this issue would
he sold at par. the company no longer holding
the option to retire 1t at lIS. In that case
nearly one-half would go 70 Union Pacific
and the remainder to the other stockholders
OF the controlled property. No attempt
was made to forecast the uses 10 which South
ern Pacific might apply the new funds. and the
story made no mention OF the time when
the matter would DO taken up for onlclal
consideration.
while Southern Pacific really closed lower
than IL opened. brokers who watched the
trading closely said they could see evidence
Of a very good class Of buying in the stock.
A good deal Of Union Pacific was undoubt-
eddy sold during the day, and in the last hour
the price dropped through 100 on a revival
OF the report OF q suit to test the company's
right to retain the land grants. This story
when first heard SONS weeks ago had no effect
whatever. but its revival. being timed to catch
a weak, bull following, brought the desired
result. and the probability is that the technical
position Of the stock is now stronger than it
was at the commencement Of the days bust
ness. The story in its most tangible form
was that a suit would be brought by some
Western interests against the Union Pacific
Railroad Company TO contest it's right to
lands granted for the purpose OF settlement
to its predecessor. the Union Pacific Railway.
which was sold in reorganization In 1897.
The contention appears to be that the lands.
being given for settlement and not for strictly
railroad uses. did not pass with the railroad
property. and the pretext Is regarded as so
nimsy that had it not been for the weak bull
account the story would not have affected
the price OF the stock to the extent Of even q
small fraction Of a point.
Rumor still says that the annual report Of
Union Pacific will make its appearance
within the next few days. IL is not unlikely,
however, that expectation Of the kind is
rather premature. The report of this road
10 usually a very voluminous document. its
wealth Of detail involving great labor and
expenditure OF time In compilation. Last
year 1t was not finally given out for publiCa-
ton until the first week Of December. al
though ready for distribution a couple Of
weeks earlier, the delay being caused by
the efforts OF the officials to trace a leak
through which the essential facts in regard
to the earnings had been made public. It
has been the rule. rather than the exception.
for the roads report to be delayed con-
siderably beyond the date OF the snnua
meeting, on account OF the amount OF clerical
work involved. so that. although the stock
holders meeting vas held on Monday last.
there will be nothing unusual in the case even
II the full details regarding the years results
are not given out for some weeks.
The ~manipulators of Missouri Pacific no
doubt expect TO derive material aid here
after for their operations from the annual
report issued on Tuesday. That report
was very favorable. apparently. IL was
almost too good. the results being 10 fatterinS
as 70 arouse suspicious as TO the means by
which they we're accomplished. An increase
Of S3, 400. $50 in gross earnings made at an
additional cost Of only tI64, lie for conducting