The Washington herald., 1907-02-19
WALL STREET NOTES
Bears Make Attack After
Gloomy Predictions.
HILL STOCKS ARE IN FAVOR
suit Brought by Minnesota Not
Feared, and Brokers Are Finding
Inherent Strength In the Speciality.
Prospective Railroad Financing
starts Many RumOrs.

starts Many RumOrs.
New York, Feb 1S-On Saturday an
/ operator who made a good deal of money
on the bear side during the break in the
market two or three weeks ago pre-
dicted that another severe break would
occur within the next few days. This
/ forenoon similar predictions were made by
other bear operators and these at once
began the attack that they hoped would
/ help to send the market along the course
which they said it ought to travel.
/ Not a few commission houses showed
a disposition to embrace the same side,
arguing that after an advance had
continued for about ten days d reaction
/ OF some proportions was due. All the
good news they said was out and it was
time the resumption of the Hartman in
vestigation should begin to figure as an
/ influential factor. The needs OF the rail-
roads for money to finance Improvements
/ also constituted a matter of market con-
/ Germ. it was argued and altogether there
was a disposition among the commission
/ houses and the speculative interests TO
look only at the darker side Of things
financial.
/ Regarding the argument that the re-
sumption Of the Interstate Commerce
Commissions investigation of the Harri-
man system would prove a disturbing
factor in the market. # was said on
apparently good authority that Nj Harri-
man regarded this matter with perfect
equanimity, expressing complete con
! fdence in the entire legality of the
/ Union Pacific's position.
/ A New York lawyer who was in St
Paul at the time the suit to prevent the
issue Of stock by Great Northern was
argued says: 4 attended the hearings.
although not directly interested, and al
though had no preconceived ideas as TO
the merits Of the case. it struck me that
the counsel for the State made rather
weak argument The five judges seeIaed
/ to be clean cut men who were con-
| scieutiously bent on giving the matter a
fair hearing and deciding it entirely on
its merits. but the counsel for the State
1 instead OF advancing arguments in sup
( port Of its contentious spent most OF It's
time I'm criticising the officers OF the road
and did not distinguish itself ia the an
swers il made to the questions from the
bench. The judges asked many questions.
and while. Of course. ] have nothing to
/ base an opinion on beyond the train OF
/ reasoning that these questions suggested.
/ / rather expected 10 ser the verdict OF
/ the court unanimously in favor Of the
railroad
An operator who has made a speciality
/ OF the Hin stocks says Great Northern
rights even at the present level of prices
offer better speculative medium than the
stock Of the road. His argument is chat
/ IL the decision in the suit brought by the
attorney general Of Minnesota should be
decided in favor of the State the rights
would be invalidated and the buyer would
/ get his money back. while in the event Of
/ 4 decision favorable to the company the
rights would be almost certain TO score
an advance in sympathy with the stock.
! There is thus. he says. fair prospect
/ for profit without the risk of loss in tie
rights. while n the case Of the stock the
chance for profit may be relatively
/ greater. but the risk Of loss is not entirely
absent OF course, it Is not correct TO say
that there is no risk OF loss in buying the
rights. for these. like the stock. might
/ decline as a result Of something entirely
apart from the decision on the suit now
before the courts.
Rumor busied itself with the question
1 of prospective railroad financing. and had
a number of improbable tales about the
amounts of new capital that were wanted
and the rates Of interest that the roads
might be obliged to pay in order to obtain
what they needed.
/ There was talk of a note issue by Read
+ ing and a sale Of car trust certificates
/ by Pennsylvania, but the former was de-
MED and the latter was deprived OF any
Importance by the fact that financing in
some form by Pennsylvania has long been
anticipated, and while II is not vet
known what shape this will take. It might
/ as well come in the form of car trust GER
tifeates as anything else The important
question is whether such new securities as
PENNSYLVANIA may have to offer will be
disposed OF abroad or placed upon the
market at home.
[ In the one case # would mean for
Wall street an inflow of money. in the
other case an outfow-the former being
bullish in its effect. the latter otherwise.
The general opinion-and it is stated in
the best quarters-is that the greater
part of Pennsylvania's requirements will
be supplied In Europe.
An international syndicate has been
! formed in Paris to float the SO, 900. 600 for
eign loan Of the New York, New Haven
and Hartford. The loan viii be issued
simultaneously in four countries. and
will yield. according TO Paris informa-
tiou, per cent. free Of all government
taxes. the latter TO be arranged privately
between the bankers and the railroad.
Some Of the traders who talked glibIy
about an offering of bonds By Pennsyl-
vania did not even know that the stock
holders have not vet authorized the in
crease of capital stock and bonded in
debtedness for which authority will be
asked at the annual meeting. Car trust
certificates could be sold and are a pop
Ular sort Of investment to which even
the speculative trader can offer no obiec-
ton because when they are issued thsre