The Washington herald., 1907-02-09

quarters. it would not be entirely safe
10 assume that the rise had eliminated
/ The insiders in Union Pacific have often.
on the most notable upward movements
in the stock. checked the rise when it
showed signs Of becoming too rapid. with
the result that instead Of Il sensational
Jump a steady advance occurred that en-
lcouraged rather than scared away pub
lie following
/ The method Of the insiders in Union Pa
cifc seems to make the stock a leader at
the beginning and again al the end Of an
upward movement in the general list. The
stock is usually one Of the first 10 show
real strength when the market starts upon
an upward movement. but after it has
made q rate OF very moderate proportions.
it is just barely sustained at it's new level,
while other stocks are taken in hand and
moved upward
FluCtuating within narrow range, it
disappCints alike the bull and the bear
trader. but the latter. having no interest
10 pay is the more likely 10 maintain his
position until he is fairly swept away by
|a resumption Of bullish operations which.
finding the technical position favorable.
succeeds Tar beyond the earlier effort in
whirling the stock upward. These ag-
gressive movements generally attract "a
public followine-for the public like 20 see
snap in a moycment-and the result is
that the insiders are not only enabled 10
sell out their line of this particular stock,
but under the cover - lis apparent
strength 90 sell Ulelr holdings of other
stocks as well
1t is entirely possible that there is just
the same kind Of manipulation iu Union
Pacific now that has been seen ia IL be-
fore. and that the present hesitation is
only the usual breathing spell TO be fol-
lowed later by q resumption OF the ad-
vance at more speedy pace.
For several months Southern Pacific
has shown remarkable steadiness. huctu-
ating within a narrow range of five or
six points, never dropping 90 % and never
rising TO o.. In the same period last
year the stock acted in just the same
way within the range of about 6S 10 =.
There is little doubt as 10 what occurred
a year ago The stock was mquesuon-
ably accumulated Ga great volume by in
terests which had means Of anticipating
even then the dividend action that came
as such a surprise To the street in gen
eral last August.
As there is now said to be a possibility
that the rate may be- increased TO per
cent next August the similarity Of the
action of the stock 10 the course which
il followed q year ago becomes very in
teresting indeed.
That the earnings would Justify an in-
crease i'm ths rate of distribution is clear
ly apparent from the statements for the
six months ended December 81. and it is
said that the returns for January viii
make as good a showing as any so far
seen in the present fiscal year.
One of the rumors Of the forenoon was
that the President intends To issue within
a few days "a letter assuring capital that
little more was TO be feared in the way
of attacks on corporations and alto
Tfthcr indicative of a change OF front
on the part Of the Executive toward cor
pOration interests. The story was dis
credited I'm the best quarters. and the
opinion was expressed that all talk of
that sort cmauated from the bears who
were anxious TO foster a belief that the
large interests We're alarmed and in their
extremity had made appeals 20 Wash
ington. The rumor however aroused no
false hopes and there viii be no disap-
pointment If it prove to have no foun-
dation Whatever-indeed the real disap-
pointment might come if the President
should decide TO make n ''Re-assuring''
statement for then some people might
be inclined to believe the perfectly alb
surb stories about appeals 20 Washing
ton I'm behalf Of Wall Street
John d. Rockefellor's gift Of S32.000000
TO the board of general education it was
hoped would go long ways toward
checking the class hatred that had be-
come one of the most disturbing elements
in the situation, and the various rumors
accompanying the Advance in Standard
OIL on the curb. to the effect that the
sum donated included a large amount of
this stock, and that assurances had been
given that there would be a let-up In the
prosecution Of the company for alleged
Infringement OF laws. State and Fed
eral, were listened to with some little
show Of interest.
The announcement of the sale of Sc
00eG00 one year notes Of the Quebec, Mon
tTeal and Southern on a 6 per cent basis
had little effect as a market factor The
notes are guaranteed by the Delaware
and Hudson. and such comment as there
was on the transaction was that the
Quebec road had obtained its money on
better terms than some Of the roads that
have borrowed recently
This notice seems to have been the only
foundation for the rumors circulated a
week ago which attributed to Delaware
and Hudson an intention to raise about
$50, 00e,000 capital in the near future.
The decline in the last hour found the
trading element bearish and ready to
join in a selling movement, and the prob
ability is that the slight setback to prices
caused more short selling than actual
realization OF liquidation of long stock
\ large amount Of short stock has re-
NAMED uncovered since last week, and
the bull interests have made no agrees
sive movement to force covering recog-
nizins that this was a force well worth
conserving Instead of reducing the
amount OF the force, efforts have been
directed toward encouraging the growth
of it, with the result that the short in
terest is possibly larger now than it was
at the beginning Of the week
Several prominent houses report that
others are borrowing a large amount of
stock from them privately. so as not to
figure in the demand in the loan crowd.
and the inference from this is that the
regular loaning rates do not show the full
extent Of the borrowing demand or of the
short interest.