The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-13

They overplay the Bear Side and
Lose on the Re-
action.
special to The Journal.

Special TO Inc JouIna1'
New York, May Histories Of heavy
losses taken by the short interest are
now making the rounds Of Wall street,
It being no secret that many OF the trad
ers overstayed their market, with the
result that their profits on the, decline
were badly cut into. A case IN point
was that Of successful speculator VINO
was short a considerable block OF
Brooklyn Rapid Transit at II, which he
friends suggestion, arguing, that this
issue was intrinsically worth only 40:
He failed to take account, however,. OF
The fact that three pools were working
in the stock, which included such 1nt1q-
entail operators as Henry Frlck, +. >.
Berwind and Norman 3; beam.
+ Some of the best market judges state
the covering Of Dig blocks, the short
interest in the market is still large. and
chat only a comparatively small proper
tion OF it has yet been covered: They
also bslieve that considerable difficulty
will be experienced by the shorts when:
they attempt to retire their: contracts:
As an example Of this, the. action OF
Brooklyn Rapid Transit is cited. It is
believed that similar conditions will be
found to prevail in other standard
stocks. A feature which the bulls con-
slider most encouraging is the tact that
banking interests are more optimistic
as to the future Of the market. THESE
interests, it is asserted, stand ready to
check any further serious setback.
indeed the only source of apprehen-
sion in speculative Wall street, at pres
ent, is the possibility Of the advance
being carried on at too rapid rate.
In TIL sevent it is believed that some
recession in prices and possibly sharp
temporary breaks in certain stocks are
likely to occur, but there is the utmost
confidence on the part Of the success
full bulls that at current quotations
they have little to. fear, The more con,
sentative element indeed, is not inclined
TO encourage extremely active bull
speculation for a few day, believing
that moderate activity with prices
gradually hardening would be much
more desirable state.
1.-THE proposition once entertained TO
: retire the Burlington& &Quincy joint
As has been abandoned, for the present
at least. The motive for retiring these
bonds was originally that the Great
Northern Railway might take over from
the Northern Pacific it's undivided in
tsnest in the darlington 3 QUINCY eBKe re aafs
or lease Of it's ore lands being off, the
Great Northern will hardly be justife ed
in taking the step. It would require
raising an enormous amount Of capital.
It is to be doubted, however, whether
plan for retiring the joint 4s was ever
near contamination. The price OF the
bonds never came within per cent OF
the retirement price.
London has been a seller for teehni'
!. carrying aar London, all the stocks on
which they are inclined to borrow
money. They still dislike to buy more
for Iondsn account and welcome: an
opportunity to sell. Notwithstanding
sharp advance in sterling exchange
which may somewhat curta1l the
amount of fresh gold imports, the best
need give no further uneasiness. Tht
money situation is now in position tt
become decidedly easier in the near fu
ture. The return Of funds from Sal
Francisco is expected to reach consid
cradle proportions next week, and il
the meantime imports OF goldI fro y?
tory monetary condition forthwith.
The president s message and Commits
sioner Garfield s report on the Standar
Oil inquiry, of course, continue to b
much discussed in speculative quarter!
The consensus Of opinion, however,
that their influence as an adverse NAL
ket factor was spent even before publ
GaG1On, duu GuC ItCOulu1OAue1oAoAo WI
tanned therein are not Of such a natur
as to cause any uneasiness If rebatin
actually exists, as alleged in the r
port, but denied by the Standard O
company. it is pointed out that sto]
page Of the practice could have onl
beneficial results for the railroad 60
porations. Neither are the indictment
returned against the American Sugs
Refining company and the New Yo1
Central & Hudson River Railroad cor
pany regarded as in any way seriol
menace to market values.
European investors have been buy1r
heavily and the stocks have bee
shipped abroad. It is understood th'