The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-09
WALL STREET NOTES
Bull Tips on Pennsylvania
! Fails in Their Purpose.
U. S. STEEL COMMON IS HEAVY
Attack ON II Successful for Time,
as Large Interests show No IneIi-
Traders Make Fair Profits In Scalp
fnE-Pressure on Union Pacific.

TRADERS MIKE FaAf bEStitH th scalp
inE-Pressure on Union Pacific.
New York, April s.-The traders were
more than a little suspicious Of the bull
tips on Pennsylvania that were distributed
in the first hour. and instead of being
convinced by the early strength OF the
stock, regarded it as a delusion and a
snare. and determined 10 tight shy of it.
They had. OF course, recollections Of hav-
ing been deceived IN the past by tips with
a similar guarantee. and being suspicious
Of the tip on this occasion. were very
much inclined 20 question the guarantee
which was presented with it in the form
OF buying by some very strong houses.
The house whose operations attracted
the greatest share OF attention was one
that is usually credited with executing
orders for Z. II. Hartman, but while it
was not clear just what inference the
street was expected TO draw from this,
there can be no doubt that It was ex-
pected that a bullish construction would
be placed upon H.
Those who gave out the bullish tips and
who apparently placed buying orders in
way that would be most likely to secure
for them a bullish Interpretation, did not
however. continue their efforts 10 sus-
tain the stock after it became evident
that the leading elements were IN no mood
to follow the lead, and prices dropped
down a point OF more and did not recover
to its high level during the rest OF the
session
The bullish tips on Pennsylvania were
founded on stories about the size Of the
short interest, although the opinion among
some Of the snrewdest operators was that
this factor had been greatly reduced in
the past week. It was hardly reasonable
10 suppose the traders argued. that the
bears had allowed the stock 10 advance
from ia. the low point on March Il, 10
l2S without covering good part of their
contracts, and arguing this way they were
not impressed by the talk about a tight
squeeze of the shorts. There seemed to be
fair supply of the stock for sale, which
tended 10 confirm the belief that the dis
semination of the bull tips. instead OF be-
ing the purest kind OF philanthropy. was
intended to prepare the market 10 take
realizing sales.
The action Of United States Steel tended
| to depress sentiment just after the open
ing and before the market as a whole had
developed any definite tendency. The
stock was heavy without any apparent
Treason, for the expectation In the best
quarters is that the statement 10 be issued
on the last day Of the present month viii
make very satisfactory exhibit. both in
respect to earnings for the quarter ended
March 81 and the volume Of untitled or
ders still on the books
Possibly the bears working for a reac-
ton seized upon this stock, recognizing
how widespread would be the effect in the
first hour, may have been strictly in ac-
cOrdance with the programme. That there
has been good buying of Steel in the past
few weeks there Is the best OF reason to
believe. but that it has been accumulation
on as favorable terms as possible instead
of aggressive operations for a quick turn
/ is a matter of equal certainty. The fact
/ that the large interests did not seem dis
posed TO pursue any aggressive tactics in
spired the bears with confidence that they
could pursue their operations within Ger
tain limits. They tried but did not find H.
/ A surprise came in the afternoon to the
shorts in Steel. when the stock loaned
/ fiat and was wanted on that basis. Those
who tried TO cover found that the stock
was scarce, and that a comparatively
small demand sufficed to send it on the
up tack al "A pretty lively clip. The COM
/ plete reversal Of form from the early
weakness was not conducive to the
growth Of bearish sentiment either on
[ the stock itself or the general market
| Boston was credited with selling a large
amount of Amalgamated Copper but
/ there was no conclusive evidence that the
stock was really supplied from the New
/ England capital An interesting fight
appeared to be waged round Amalga-
mated Copper. The bulls were strong and
/ the bears neither weak nor lacking in
courage.
/ Operations fcf the decline to-day made
little Roadway. and the market displayed
/ at times ability TO rally quite sharply. to
the discontinue of the leaders, who were
trying to scalp profits on the short side.
/ AS the day wore on, it began to look as
! if those who wanted a reaction would
/ have 10 content themselves with a period
U
great changes in quotations. Fluctuations
We're wide enough for some of the floor
/ traders to make fair profits on both sides.
and these had no hesitation in announcing
/ their satisfaction with what they de-
scribed as a good trading market.
Bearish pressure was concentrated on
Union Pacific during the greater part OF
/ the forenoon. a determined effort being
made 10 drive the price of this issue
below 40, but without success, The price
dropped to that figure. but refused to go
further in the same direction, and some
| Of the shorts, on the evidence Of good
support, covered up. In the belief that the
operations for a decline were rather pre-
mature, their buying to cover contracts
! helping along the recovery that carried
the quotations again above al There
was no news on the stock one way or the
other, and. except that the bears We're
/ frustrated in their design to break the