The Washington herald., 1907-06-13
President MeiIen, of New Haven,
Credited with Securing Immunity
for that ROHd-Prices Rise When
Attempts Are Made 10 CoVer-NO
Change Anticipated In Reading.

/ versaries should try the same thing over
again. The demonstration of the entire
completion Of the liquidation that had for
months been a factor Of weakness i'm
the market vas not the only advantage
/ derived by the bulls from Tuesdays de
cline. for when the bears tried to cover
they found that the supply Of stocks was
small. the technical position being so
strongly against them that they could
make only slow progress with their
| efforts % retire their short contracts.
/ Commission houses were rather impressed
| with the showing Of underlying strength
made by the market but found little in
clination on the part of their customers
20 buy stocks, and were. on the whole,
rather discouraged over the outlook
Everybody in Wall street had known
for about a week Of the intention Of the
| Department Of Justice 10 bring suit
against the anthracite roads on the
ground that they have maintained com
bination en- restraint Of trade. so nobody
was surprised when the suit was actually
filed The general impression was that
the companies We're we'll prepared 10
meet whatever action might be taken by
the Federal government. having had am
pie warning I'm the frequency with which
action had been threatened for years
past and the knowledge that it was one
of the most earnest purposes Of the ad-
ministration 20 dissolve the alleged coal
trust in the interest Of the plain peo-
pie"
As 10 what plans would be allowed the
road 10 protect itself from the new
attack. many different opinions were ex-
pressed, the wide divergence of views
arising possibly from the fact that aE
the roads did not intend 10 pursue the
same course and that plans which only
applied % one road were accepted by a
section Of the street as applying 20 ALL
As suits have been brought against sew
eral companies and explanation IS found
Of the different rumors. apparently CON
Trajectory because true only In individ-
ual instead OF general application.
President Mellen. of the New Haven
which controls the Ontario and Western
received the credit for using some per
suasive argument in some Of his frequent
conferences with President Roosevelt to.
show that the latter road was not a
party 90 any coal combination. Pr0mi-
Heut Pennsylvania interests We're mem
toned as having performed a similar ser
vice for their own companies, but what
the street failed TO make out was where
did the credit belong for making it clear
that tue Delaware and Hudson does not
reach the Scaboard and is therefore en-
tilted TO immunity from prosecution.
As a rule brokers who at the opening
Of the market made any prediction as 20
the effect Of the suits against the am
thracite companies on the course of tho
days prices, took the view that the hard
coal stocks would probably Doe attacked
by the bears and that while they might
not yield far. the prospect was that
temp0ra riIv they would be made the
weakest section Of the market IL could
hardly be said that even this qualified
prediction was fulfilled The course Of
business showed that there was apathy
everywhere, but weakness neither in the
hard-COal stocks nor IN any other import
ant group The whole thing had been
discounted and the bears were more con-
cerned about getting back the stock they
had sod on the first receipt Of the news
about he administrations intention sew
eral days before than adding 20 the size
Of their outstanding short lines.
When they attempted 10 cover. prices
rose. If they suspended this operation.
prices fell back To bid for stocks
brought out none: On offer them down
forced none out. II was waiting mar
ket. waiting for something that would
furnish the bears with an opportunity to
improve their position or that would send
them flying 20 the woods without standing
on the order Of their going. It seemed to
be an even chance which would come
first.
Pretty definite statements that Reading
directors would make no change I'm the
dividend rate At their meeting on June
70 had no effect on tine stock, the passing
of hopes Of an increase having been re-
sponsible for much Of the selling that
had occurred on Tuesday. Considering
that there was no longer any expectation
Of an advance I'm the rate of distribution
10 stockholders. and that the government
had begun its antitrust suit, it was gen
orally conceded that the stock did not act
badly.
u quarters where there had been early
information in regard 10 Gov. Hughes
intention to veto tha 2-cent-fare bill it
was said to-day that news Of a character
equally favorable TO the market would
come from Albany within the next few
days. These intimatious probably re-
ferred to the appointment of commits
sioners under the new public utilities. in
connection with which names were mem
toned that certainly would prove accept
able to banking and railroad interests.
That rumor about the alleged troubles
of a mercantile house was fairly worked
to death, and even before the close there
seemed TO be a disposition everywhere
to forget it. Another story, which, how
ever. retained a certain amount Of vitality
mp to the close, was that the equipment
companies were steadily reducing the
volume of orders on their books, and
were in some cases going after export
business on terms much lower than were
quoted to the home trade
Some Of the orders received from
American roads and published as new
business, it was said, were of the most
tentative kind; in fact little more than
a promise Of orders dependent on the
continuance OF the present volume Of rail
road traffic and there was talk Of can
collation. Of orders already placed, one
Eastern system being mentioned as hav-
ing decided to do without a large num-
Der of cars ordered months ago In bank
ing circles, where these stories of falling
off and cancellation Of orders were men
toned the opinion was expressed that
this was the very sort of condition that
the market had already discounted,
only II was added, we have dis
counted a great deal more Of it than we
can see up to date. more perhaps than