The Washington herald., 1906-10-17
WALL STREET NOTES.

New York. Oct 1.-two diamerically
opposite views were expressed as TO the
character of the buying of Union Pacific
one that It represented action, and the
other that It was IN large part the cover
ing Of a short account put out at higher
prices. The former view was based on
the observation OF traders who closely
scrat!nized the transactions. the other
was expressed By brokers who said they
were in possession Of substantial facts
to sustain It. The result OF the conflict
Of opinion was that one set OF brokers
became quite bulIish, while another con-
tended that the reduction Of short in
terest removed an element Of strength
leaving the stock where It might drop
lower under any influences of a generally
unfavorable kind. One thing was plain,
however, the amount OF stock for sale
was not at all large.
The theory that the recent decline in
Union Pacific had no reference whatever
to anything connected with the property
and that Il was wholly the result of
manipulation intended to influence the
tenor of the market now meets with the
most universal acceptance. The annual
report when submitted WIFI undoubtedly
show a very satisfactory state OF affairs
and prove conciusively that the directors /
were entirely Justified in placing the
stock on a 70 per cent basis whatever
may be thought OF the method followed
In making the announcement Of their ae-
ton. When Il becomes clear beyond the
possibility Of controversy that Union Pa
clfo is permanently on a 10 per cent
basis and that earnings are in excess Of
even double the requirement for the pres
ent rate II viii have to be conceded
that at prevailing prices the stock is
not too high. 1t IS. OF course. not TO be
expected that the report Will throw any
light on the purchase OF an interest in
Baltimore and Ohio. this transaction not
having occurred until after the close
OF the fiscal year, but for all that the
document will be one OF the most inter
esting Of its kind ever issued.
Speculative interests campaigning IN
the general market could scarcely select "a
more favorable weapon than Union Pr
cidc or one which more readily lend
itself to the purpose OF manipulation. /
The stock has the backing OF some Of t,.e
most powerful interests IN tho st"e,
hence Il tends 10 influence sentiment. J.,
is regarded rs comparatively cheap with /
its present price. bur in view OF its large
rise IN the past few months IL Is cOmpaI
lively easy to create the impression thu.
a profit taking movement is under way
and therein is the quality which gives this
issue its invaluable quality for manipu
iative opportunity.
Sentiment on Amalgamted Copper was
bullish in view Of the near approach of
the dividend period, and some brokers
said they saw evidence Of a better class
Of buying in the stock than they had OBJ
served there for some time. The special
list took a considerable line. but outside
the ranks Of the professionals the vol
ume of new buying was small. 4 further
advance in the price OF metal in London
passed almost Unnoticed. and the predic !
ton Of q substantial advance in the price /
of the commodity here attracted little at /
tention the one matter Of absorbing i'm I
terCst being the possible action OF the d. I
rectors on the dividend on Thursday. II +
speculative circles the belief IS widespread /,
that an important Increase will be made 4
ia the rate. although a rev conservative 4
brokers still cling TO the contention that /.
while earnings fully warrant a substan-
tial increase. none or Only very small .
one viii be- approved lest the effect /
should be to stimulate the boom In the 4
curb Coppe7s.
Nobody could deny the strength Of .
United States Steel, although there was 4
some difference Of opinion as to the cause I
Of IT, The most notable point Of differ i
encc IN the views expressed concerned the i
dividend possibilities. the opinion being
accepted IN some quarters that The Itt-
would be increased to per cent az taa
forthcoming meeting. where the contrary
was held few days ago. This change Of f.
sentiment was founded on The belief that 4
Standard OIL interests. from which the 4
most important opposition to an enlarge
ment of the rate Of disbursements was ex-
pected to come, had changed their atti- 4
tude. and that this change was evidenced I
in the reduced buying of Amalgamated 4
Copper as well as Of Steel common. /
Whatever may have been the cause Of .
the conservatism displayed in Standard .
Oil quarters a little while ago. a mOdifi- /
cation Of it seems to have taken place.
Northern Pacific was the subject OF q 1
bull tip, which was received with a good f.
deal or favor, especially as most brokers \
have come to the conclusion that there /
is substantial truth in the stories Of an 4
extra distribution. either In cash or scrip,
on account of the sale of the roads ore 4
holdings TO the United States Steel Cor /
poratiOn. There is a marked change of I
sentiment as TO the relative value Of 4
Northern Pacific and Great Northern.
many conservative brokers taking the
ground that whereas the latter has al
IA erI n Of
crop, the formers melon patch is suil /
untouched Making full allowance for the
Great NOrtheTn's large interests in the 4
ore deal, the relative merits of the two
stocks considered purely from the stand
point of the earnings of the roads. must
in time II is asserted, bring their prices
closer together.
Interest in the dividend possibilities OF /
Pressed steel was stimulated by the way
in which the stock jumped from the level |
at which it had hung so long. and while
there was nothing of a definite charac-
ter in regard 10 a declaration at the
end OF this month. the evidence of doing
something was sufficiently strong to make
many traders believe that directors would
probably resume payment on the COM
mon at the rate Of per cent
Commission houses, as a rule, are in
cl!ned to advise their customers to buy
stocks, bat the customers for the most
part show an inclination to remain out at
present. The bankers, of course, have +
their eye on the main chance, every pur-
chase Of 100 shares of stock for a client
meaning a commission of $3.50 for them:
but the customers seem to think that
pending the election the market is not /
l-l-nl- Ln ln1-nIarl ra1,ch Of ,.r,r--..,- |