The Washington herald., 1907-05-28
WALL STREET NOTES
Bears Rule the Market and
Force Down Prices.
STEEL COMMON HAS SUPPORT
Holders Able to Dispose of Any
Signed Lots without Swapping
Market-Large Holder of smeiteFs
Forced to Sell HeaViIy-ROck ISL
and's Earnings Satisfactory,

W ANh AHA-
and's Earnings Satisfactory
New York. May o7.-Frost in the wheat |
belt, unfavorable weather in the cotton !
growing section, a failure in London, and |
talk of other failures TO come, heavy
selling Of American stocks for foreign
account and engagement Of gold for eX-
port a vigorous onslaught by the bears. |
and a recurrence Of liquidation were the
factors in to-day's market. and
it could not be said that the result was
otherwise than what might have been
expected in such circumstances. A heavy
volume Of transactions and an all-round
decline in prices were the natural result
of the conditions noted
with the reports Of unfavorable crop
weather and the wild opening in the grain
markets came a heavy volume Of selling
orders in stocks which the market could
not very well absorb. Whether the sell
both WAS largely a matter Of guesswork. /
but the way it kept on made It inevitable
even before the end Of the first hour that
prices must give way. At very few points
was there any support 70 speak Of. the
large interests having apparently made
up their minds that the only way to clean
up the situation was to let the liquida-
ton run its course and allow the bears
10 sell the market TO q standstilL En-
couraged by this lack of support. the
bears continued their attacks with great
vlgor, taking ~ first Union Pacific and
Reading. finally broadening the field Of
their operations until there were few
stocks on tho list that successfully re-
sisted their efforts to break down prices.
United States Steel met with better sup
port than perhaps any other active issue.
and, considering its enormous volume and
tho extent to which rumor had busted it,
self with stories of liquidation by large
holders, the total of transactions in the
stock was not particularly large. No
holder Of Steel, whether for speculation
or investment. can complain that he cam
not find a market for his stock even on
the weakest days in the stock market
To-day. as I'm the March panic. thousands
Of shares could have been marketed with
out depressing the price by more than
fraction Of a point and though the bears
brought out new Tumors 20 aid their op-
erati0Gs for lower prices, they were ur-
able % make much hoadwuy. Their latest
rum0r. which concerned alleged friction
n the management had little foundation
as those tried earlier. and il is not easy 10
see what they can turn 20 next
Apropos Gf the rum0r about disagreement
in the Steel management, it is interesting
20 recall that toward the end Of last week
there was a similar rum0r regarding New
York Central. and that since that time
Central stock has been fairly steady. Il
may have been the last shot Of The bears,
and apparently it failed 20 take eject
The similar shot at Steel certainly went
Wide of the mark.
That the talk Of an increase in the
Shelters dividend had been awaited OF
for liquidation Of a line Of the stock was
the general opinion among the traders.
The name Of one large holder was men
toned IN connection with the supposed
liquidation There may, Of course. have
been nothing but surmise on the point.
but the talk current derived a certain
amount Of plausibility from the fact
that the individual mentioned was tied
up in q number Of inactive stocks. some
OF them immensely valuable. although
temporarily unstable except at a great
sacrifice.
Friends Of the capitalist in question
could not say positively that he had not
sold stock. but they had no hesitation in
speaking Of him as a rich man who. even
If forced 90 sell every share Of the active
stocks which he holds. would still be
rich. even at the lowest estimate, for The
securities that could only be sold now far
below their intrinsic worth. Considering
the volume Of the liquidation that had
taken place it was asserted by shrewd
observers that the stock had not acted
badly.
The story that the New York Central
has not been prompt IN making large
payments received wide circulation yes
terday. and although in form differing
but little from reports that have been In
circulation for months past, IL seemed 20
be accorded a good deal Of significance
Too much significance might easily be
given 10 IL. II has long been rum0red that
New York Central has given notes in
stead Of cash for new equipment
But assuming that I'm all IT'S aspects
the story is correct, all it really amounts
to is that New York Central is COM
pleting an expensive scheme Of improve
ments. and that the money market IS not
at present favorable % the raising of
new capital The improvements are per
manent; the money conditions may only
be temporary.
4 highly satisfactory statement OF earn
ir-s for the month of April was put out
by the Rock Island system, and with the
excellent return made by AtchisOn for
the same period. served TO draw atten-
tion 10 the fact that If any falling off In
business has begun TO be islt in the
Southwest it must be of very recent oC-
currence. But the principal interest in
the Rock Island statement was in the
light which it shed on the conservative
policy that for the last couple Of years
had been in effect in that property. The
first real indication Of that was i'm the
passage Of the preferred dividend when It
became evident that the money which.
under other circumstances, might go TO
stockholders had better be used for the
Improvement Of the road.