The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-08-05
oossIP on WALL sTREET.

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too darlnaiy and said Q little shaking out
BIZ scalpers would 90 no harm and would
leave tho market In healthier shape for prog
ress the coming week. An analysis Of the
developments Of the week. they commended.
could not fail TO convince investors that q
higher plane OF values was sure 70 come this
year, and they considered tho reaction u
blessing. as separating the movement from q
lot Of bull talk that was getting hilarious.
II was the purpose Of the banking interests
behind the movement, they believed. to
demonstrate that the action Of the market
was normal and was based on actual apprecia-
tlon OF intrinsic value and not on excltable
and wild stories Of melon cutting, tremendous
deals and the like.
The bulls called attention TO the Financial
Chronicles compilation OF railroad arnIne
as the sort Of sound stun they depended
upon. The compilation was for the first six
months OF the current year and a ashow-
ing. bulls said. that was emphatic proof OF
their argument Of appreciation OF Intrinsic
value. The compilation showed gross earn
.inss to have been $1i7. 54s.76i, or f4-T per
cent. In excess Of the same period OF 1905,
when. In turn, there was an increase OF $685.
$50, oe0, or 7.S2 per cent, over the correspond
ing period Of 1904. over the corresponding
period Of 1908 the figures showed a gain OF
about ssi5 .ooo. 900. The figures tell the
story was the prevalent bull reference to
the compilation.
Quite az much stress h laid by bulls on the
good prices maintained for wheat and cotton.
Notwithstanding the assurances Of enormous
crops Of both. The prospect OF q large ex-
port demand for both staples. they contend.
keeps up prices that are extraordinarily high
In view Of the indicated enormous production.
Cotton. always the great importer OF foreign
Ill -trA ,a AkAx 0Nn n
credits abroad than the crop has ever sup
piled In the past. and these credits will be
greatly augmented by large exports Of wheat
at high prices. This argument bulls use to
counteraot the bear predictions OF a serious
money stringency during the crop moving
season.
The reaction failed TO weaken the upward
tendency In American Ice Securities. which
gained Y point. -
Ice wes the theme Of a novel discussion
In the Financial Chronicle. That journal
said: According to the stories told by some
old tars recently reaching this port. unusually
large belated iceberRs are afoat outside our
harbor. The question 10 seriously asked.
What reason have they for being there at so
late q date In the season. disturbing our
usual summer temperaturef A falrkassump-
ton Is that they are ser wing o wise purpose.
Tho DefRB, We a6BuIn6, may 10 cuh w
represent the surplus Ice product withheld
from a considerable portion Of the country
and piled UP in useless masses In sight. bu
lust outside the reach Of suffering humanity.
II 80. a teaching lies In these facts which
may be Of service II needed
The lesson drawn by the Chronicle is not. as
might be presumed, the Incorporation Of a
company to bring the bergs to town, but
investment In the artificial Ice business The
Chronicle considers that this would do more
to keep down the price Of Ice than all tho
grand juries in the United States.
Southern Pacific. In contrast to most OF
the railroad stocks active recently. held
strong yesterday and closed 4 point above
Fridays closing. whether 1t was held up
to facilitate profit taking In other issues or
whether holders Of the stock still considered
It cheap the Street could not determine with
any unanimity. There we're comments to
the effect that II would be no higher II a 4 per
cent. dividend had been declared. and there
were comments that It ought 10 sell. as -h4gh
as Atchison. Union Pacific. which reacted to
ISsL, failed to Justify the sanguine Of the
two beliefs regarding the minority company.
The Union Pacific meeting takes place next
week and there will be much disappointment
in the Street II the directors fail then 7" put
the stock on Q I per cent. basis. There. Is a
prospect that dividend action on Southern
Pacific may be taken at the same time.
One prominent brokerage house yesterday
expressed the opinion that "on the actual
announcement Of important deals 1t Is sd-
vlsable to sell stocks. but until then 1t Is best
to buy The advice was q deft way Of ex-
pressing the current belief In the Street that
important. deals are seldom made public
until the market has been worked up by
insiders who proceed to unload their holdings.
to the general discomfort OF the majority OF
traders, as soon as they are ready to an
nounce the details OF the transactions Profit
taking of this kind has folio wed about all
the many dividend increases of the veal
with the result that the various stocks directly
affected have reacted rather than advanced
Immediately after the announcement Only
those traders who have made a close study
of earnings and other circumstances tending
70 induce probability Of dividend increases
have profted from themwhen declared.
Sometimes insiders bolster up prices and
unload before the time set for the an
nouncement OF the particular transaction.
Speculative pools almost invariably fol-
low this course for the quite obvious
reason that the spectators forming the
pools cannot be certain that the develop
ments they expect are to come out. Brokers
alert for signs OF profit taking on this account
insisted yesterday that they saw indications
OF such a, course Of action In st. Paul. Their
charts, they said. demonstrated very en-
phatlcally a wide distribution Of st, Paul
on Friday and yesterday and seemed to show
the unloading Of by far the larger quantity
OF pool stock upon other traders. Nothing
was heard Of st. Paul's going to 200 yesterday.
but any number Of brokers were willing to
bet that Il would touch $50 before 1t reached
100. and some brokers were willing to take
a chance that It would touch the low figure
before again 1t advanced to iss.
The coll for the st.. Paul annual meeting
came out, but contained no notice of any
special purpose such as the distribution OF
the treasury stock. and speculative holders
may have been discouraged on that account.
Others contended that the cali would not be
likely to mention such a matter and that the
meeting was quite as apt to vote rights as
before the cali was issued. They said that
the question Of giving rights remained a
good betting proposition.
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