The Washington herald., 1907-07-17
WALL STREET NOTES
Union Pacific Shows a Gain
Of Several Points.
DIVIDEND TO BE MAINTAINED
HarrimRn's Estimate of the Earn
ings of the Road Found 10 BE I'm
Figures-Great Northern May As
sumo Control of Burlington.

New York. July 16.-When at the end
of the first hour Union Pacific was sell
ing at about I42. one of the traders
offered 20 bet that the stock would sell
at $50 before 1t again sold as low as
lSS. The offer may have been only a
bluff-such probably was the case. but it
found no takers and the fact was re-
garded as significant by the speculative
element
Betting on stock movements is a cheap
way of manipulating prices for the
maker of the bet may safeguard hts
position in that transaction by an opera
tion in the stocks and the advertising
us obtained without any risk whatever.
Had the trader who offered to make the
bet on Union Pacific been taken up he
could have protected himself against risk
of loss on his bet by selling the stock
short as a hedge.
At the time the offer TO bet that
Union Pacific would advance 10 $50 with
out any material setback from prevailing
prices was made the stock had already
risen a full point from it's opening quo
tation and within an hour it gained
another 20 Mt. This display Of resiliency
encouraged the traders 10 believe that
the member Of their Paternity who at
tracted so much attention 10 himself aud
the stock knew what he was talking
about and sentiment among the profess
sionals became more bullish on the Har-
riman issues than Il had been az any
time on Monday
The covering of short lines put out on
that day became pretty lively and per-
haps the apparent unwillingness of the
shorts to maintain their position was one
Of the most notable things in the whole
market. The confidence which weeks
ago had induced the bears 10 combat an
advances by further short sales was
lacking, although there was stin n dis
position on the part Of some operators
to play for moderate reactions whenever
after a sharp rally they found a new
opportunity.
The belief was quite widely entertained
that large interests in Union Pacific. II
not the prime movers In making the ad-
vance in the stock, were at least in SYM
pathy with H.
Not long ago the street was fun Of
rumors that the Union Pacific dividend
could not be maintained at the 10 per
cent rate, but there no longer seems to
be any doubt as 10 the company's ability
to continue its present rate of distribu-
ton. It Is even asserted that the earnings
of the road are really better than they
appear from the monthly statements. on
account Of the inclusion Of the cost Of a
good deal of Improvement work In the
Item OF operating expenses.
Mr.. Hartman. at the time OF the decla-
ration Of the last quarterly dividend. made
an estimate Of the earnings for the year.
and it is said, that while the actual re-
suits are really much better than that es-
innate. the official figures will precisely
conform TO it, on account Of the policy
of drawing on earnings for betterments.
The dividend question is disposed of by
assurances from well-informed quarters
that there is no more likelihood OF re-
duction than Of an increase.
The most interesting Of the DAYS rumors
had reference 70 the Hill roads and
was 10 the ERECT that a change In the
status of the Burlington would be made
sooner than was generally expected. In
detail. the story that the dual control OF
the Burlington would be changed for ex-
elusive control by Great Northern, lust
as the dual control Of Alton was recently
set aside, and that Northern Pacific would
receive for its equity in the road large
cash consideration which would be made
the basis Of a special distribution 10 its
stockholders. An ex-dividend from this
course as large as 20 per cent was spoken
Of by bulls on Northern Pacific.
While the market acted in a way 20 sua,
gest that there was some truth in the
stories current, brokers. as a rule. were
inclined to doubt If the matter had been
put In such shape that an official an
nouneement of the plan could be made in
the near future.