The Washington herald., 1907-09-06
WALL STREET NOTES
Banking Circles Not Sur
priSed at Watson Failure.
BIG BOOM IN HILL STOCKS
Burlington Dividend Sepds North
west Issues Up-SmeIters and Della
In vnncc-Harriman Again Re-
ported TO Have Lost Control of L. p.

New York, Sept 5.-The Watson failure
was generally considered the most i'm
portant OF the year. but traders who sold
stocks on 1t only got another reminder
Of the theory that Il is inadvisa5le to sell
stocks on news which may well have been
anticipated in banking circles. That
prominent bankers knew the failure to be
impending is, at least. a fact, and in the
most prominent financial circles the effect
Of it had undoubtedly been carefully con-
sidered and discounted.
Very likely it came more as a surprise
in coffee and grain houses than in bank
ing quarters, In which the solveney OF
the houses is closely watched.
Those traders who sold the Hin stocks
IN the belief that the Watson failure
meant the liquidation Of big blocks OF
Great Northern and Northern Pacific had
an unpleasant experience, for no such
liquidation was forthcoming, nor is any
likely.
The accumulation Of a short interest
in the Hill stocks upon the announce
and fortunate for those who bought them
on rumors of developments in connection
with the Burlington, for the covering Of
short contracts proceeded rapidly i'm
mediately after the Burlington dividend
was announced.
The squirt in Great Northern and
Northern Pacific after the dividend decla-
ration, with Great Northern gaining Is
and Northern Pacific s3-4 points re-
minded the street OF the old-time move
ments In the Hin stocks. and was about
the most encouraging movement since Mr.
Hin cut his melons last December.
In the Hin following there was feeling
that the extra Burlington dividend and
the increase in the regular rate Of divi-
dend marks the planting OF a new Hill
melon patch.
In Union Pacific there were transactions
IN EO,V00 shares. that stock supplying
more than . per cent Of the transactions.
as on many days Of late. The shares
were as strong as they were active. scor-
ing net gain Of rs points. but neither
the activity nor the strength was compH-
mentary 20 Mr. Hartman. Both were
stimulated for the most part by reports
that the control of Union Pacific has
passed from the Hartman party to other
hands
The reports were a revival OF a story
often heard in tie past two months. but
they attracted greater credence than ever
before.
Apart from the HiH stocks and Union
Pacific Shelters and Delaware and Hud-
son were most prominent in the advance.
Smelters, with gain Of "a points. re-
covered practically ali Of the loss Of the
preceding day. Delaware and Hudson ad-
vanCed 10 157. and closed at the top with
a net gain Of 3l-2 points.
The stock has gained ten points in six
trading days, and there Is said to be still
a short interest which was
there before the advance began. Techni-
cally. the position Of the market looked
weak 20 q majority Of traders Ia the
early dealings to-day. The London mar
ket has been dull and heavy. and there
was an impression that the market, weak
ened by extensive short covering of pre-
vious days OF the week, would be further
weakened by realizing sales.
Many lines Of shorts were accordingly
put out even before the announcement Of
the Watson failure The action Of the
market subsequently gave many brokers
the impression that banking interests
with an advance knowledge Of the failure
took steps 20 support the market before
the announcement. and had the ma
chinery I'm good working order by the
time the chairman's gaveI descended in
the exchange.