The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-22
GOSSIP OF VAIL STREET.

but many We're inclined to think that it would
sell OF on profit taking by those who bought
on Thursday and Friday either for the purpose
OF protecting prices or because they believed
a rally was due. II was argued that from
the extreme pessimism of Thursday TO the
optimism Of the following day the change
had been entirely too sudden TO endure.
There was too much emotionalism The
traders. IL was asserted, turned from one
side TO the other haphazard and at random,
making no serious effort to find their bearings.
The expected happened on the publlcatl II
OF the bank figures. that Is. 1t occurred with
the lessened effect resulting fir IN the fact
that 1t had been expected. In other words,
prices ra off fractionally where they were
expected to decline very materially. aud
then hardened just Def re the close. The
rally in the last few minutes was largely due
to the covering OF traders shorts put ont in
anticipation of a renewal of liquidation, but
the continued support given to the market
which compelled this covering afforded
further evidence OF the underlying strength
which withstood the events Of the past few
days.
The market showed that It contained an
important element OF strength in its techni-
cal position on account of the sold out con-
dition of a great number OF commission houses
and the fact that many OF these and OF the
traders and professionals were arrayed
on the short side. If the short interest could
be forced to cover the operation would carry
prices up smsrtly, after which, shorn Of the
strength which that factor now gives it.
the market could only decline. The large
interests would like to see the short interest
retained. but the professional operators,
who care only for opportunities to make
profits on either side of the market. may
OF ganize a squeeze. driving the shorts In
and selling on the resultant rise, The talk
heard In some quarters Of the IRENE ndous
stimulus to the general business of the coun-
try from the rebuilding OF San Francisco
suggests that something of the kind 10 in
contemplation, But no amount OF argument
can conceal the fact that the country has
suffered a great calamity, and every effort
to bull the market on 1t cannot have more
than q qualified measure Of success.
The so-called estimates OF the property loss
from the California disaster are hardly esti-
MATES at all. They are little more than
euesses. 1t will take weeks or months to
estimate with anything like accuracy what the
actual loss In property was and another
| item Of loss can never be determined at all,
This IL the loss OF profits on the everyday
operations Of the city as it existed a week
ago, the depreciation in land values on &C.
count Of the timidity or inability Of the owners
Of some Of the destroyed properties TO re-
build. the possible diversion Of business to
other oentres-all these and many more
will tend to increase the losses cons lderably.
In any city Of similar importance anywhere
outside of the United States the contempla-
ton OF such q loss would prove overwhelm-
ing. But San Francisco is determined to
recover her past greatness, Recovery, how
ever, Is a different matter from expansion.
and the difference should not be lost sight Of
by those who seem to think that the recent
calamity was a blessing in disguise.
There was considerable discussion Of the
possible effect of the sale Of securities by IN
surance companies in order to realize the
means for meeting the losses sustained in the
San Francisco FIRE. The prevailing opinion
appeared to be that such selling had already
begun and would figure as a factor In the
market FOR some time.
Perhaps the most logical Of the bullish
which some people tried TO con-
struct ont of the disaster was that the recu.
p~eration would strongly attract foreign atten-
ton toward American affairs and create a
favorable impression Of the energy and reso-
luton which had opposed themselves TO a ca
tastrophe without parallel In modern times.
San Franoisco's misfortune, 1t was argued
would thus become the whole country's best
advertisement
Pacific Coast was I he feature OF the mar.
Ket. IL was not tne KIM OF sJoCh Nll'H
could ever become aleader shaping the general
tendency, and in this chse it moved without
~exertinR any influence whatever on prices
generally. There was. of course. a reason
for the special strength in this issue, The
company has been known to be prosperous.
and there Is q belief that some OF the large
interests would like to secure control fol
Great Northern, st. Paul or perhaps UniOr
Pacific; but a new factor has crept In since
the burning Of San Francisco in the practica
certainty that this company, which has lone
been established in the coasting trade be
tween Puget Sound aud California, will con
vey an enormous quantity OF the lumber
which Washington will be Gale d upon tt
supply for the rebuilding OF the burnt city
Pacific Coast has railroad lines leading m
into the lumber country, while its terminal:
at Seattle arc ample for all requirements o.
the new business.
1t was said that the price Of copper would
be advanced within the next few days and tina
before the end OF the month electrolytit
would be quoted at 10 cents q pound. Thu
was the principal bull argument on Anal
9amated. as, should the advance be made
an increase In the dividend to the origlna
8 per cent. rate could be counted upon witt
practical certainty. Those who are wei
informed on the trade said that condition.
we're excellent, and some conservative inter
eHt9. NHu6 NV az ~ inv eNa''A ~
the market, were inclined TO make a reserva
tlon In favor OF Amalgamated, United State
Steel and one or two other industrials. !
was thought quite probable that such con
Germs as General Ele% ctric, Westinghouse
and Otis Elevator would obtain a large amour
of business from San Francisco. and thes
companies, especially the first two. use
great quaint ity of copper in their business.
Naturally, there are sceptics who sheer a
the talk Of rebuilding San Francisco in stee
TO overcome the effects Of earthquakes. Their
are always sceptics when any radical innova
ton is proposed. Many people in the hnancla
district recall the scepticism with which tn
announcement Of plans for the first skeleton
building was received. That building wa
completed only seventeen years ago, ant
to-day the type established then is REGARDED
az the safest for ell ordinary purposes Tn
Tower Building. on Broadway below Ex
change place, was completed in 1850, 1t wa
the FIRST OF its kind. The architect, Bradfor'
Lee Gilbert, when he announced his plans
was regarded, as. a dreamer. All sorts Q
direful consequences were predicted. I!
violent wind would make the structure toppl
NJ. A.. .rnhifant and NnnIrlp NJ nj