The Washington herald., 1907-07-04
WALL STREET NOTES
Union Pacific BOND Syndi-
cate Is Boosting Market.
NICE PROFIT is IN SIGHT
Underwriters Expect to Sell Bonds
for 90 and Collect S2O on Each
Transnction-VoIum of Transac-
tions in U. p. Lead All other Lines.
Banks Have Trouble in Discounts.

New York, July 3.-No one can blame
the members Of the Union Pacific con-
vertible bond syndicate if, as is now al
most universally believed, that syndicate
has taken the lead In the active market
manipulation of the past ten days.
Business is business. and the profits de-
rivable from a substantial advance in the
market value OF the stock are alluring
enough to justify the expenditure of fore
ing an upward movement The movement
is as practicable as every previous display
of love and affection for Union Pacific.
At first sight, II seeme- TO many who
sought for the source Of the upward
movement that the syndicate must ad-
vance the price Of the stock above 154 in
order to secure a profit. and the chance
Of obtaining such a big upward swing
was considered too hazardous even for
this venturesome party 10 attempt.
The syndicate gets It's bonds az IS, which
makes the parity Of conversion 14, and
since Union Pacific was at 1872 when the
movement started, manipulation for an
advance Of more than p points might
we'll have been considered too expensive
We're profit attalnable only by accomplish
ing this big increase In market value
But there is another reason. The syn
dicate UNDERWRITERS the entire issue II
takes all of the S75.0O0.O0O bonds. so that
those stockholders who exercise the
right" to subscribe for their pro rata
share Of the bonds viii receive them
actually, If not nominally, from the syn
dicate Since the price 20 stockholders IS
20. the syndicate. without expenditure on
its part will receive a profit of go on
every bond taken by q stockhOlder out
side the syndicate The subscription Pc
riod expires July TO-
The volume Of transactions in Union
Pacific to-day was greater b. a wide
margin than on any other stock. The
stock was kept more active than any
other The engineers Of the movement
however, displayed the same keen per
ceptioa as on the previous day. and made
other market fayorites the leaders.
On Tuesday it was Steel that was made
TO look most aggressive. To-day the po-
sition Of prominence was awarded the
Copper shares.
Amalgamatod and Anaconda moved
along like d well-trained team, and at the
close each had registered a gain Of IA
points.
with the revival Of the gold export
movement and the constantly increasing
demand for money for speculative pur-
poses. many Of the banks are experience
ing difficulty in keeping down their lines
Of discounts.
A great many, and perhaps al Of the
banks have been obliged 20 curtail loans
TO old customers. even in cases when the
security was ample and Of excellent
quality.
The most impressive demonstration Of
strength was reserved for the last hour
Prior TO that time the market. though
firm. had been narrow Suddenly the
range was greatly extended. and activity
was injected, not only In all the active
speculative stocks. but IN a number OF
ow-priced stocks and a number Of spec
ialties.
Transactions in single blocks Of from
! loo to 5000 shares were frequent and
the highest average price Of the move
ment was reached.
Active stocks, almost without exception.
participated In the advance 10 a new high
level and a favorite was brought forward
in St Paul Il was in no sense a drive
on the shorts. but essentially. traders
thought, q notification that the bull party
had the market in absolute control and
possessed reserve strength which il in
tended 70 use for a further advance.