The Washington herald., 1907-01-11
WALL STREET NOTES
RumOrs of Past Few Days
All in Favor of Bears.
STEEL IS STILL STRONG
Question as TO What VIII BE Done
with Dividend nt Next Meeting of
Directors on January 29-PriceN
Seek LevcI-Big Traders Make No
Move 10 support Stocks.

I
Move 10 support Stocks.
New York, Jan. 10-Most of the rumors
in the past few days have favored the
bear side Of the market This may mean
that there is a bear party at work. or,
what is more probable, that efforts are
being made 10 encourage the growth OF
a short interest
Except as an indication that the bears
were still feeling for soft spots. the de-
cline IN Missouri Pacific in the afternoon
had no significance. The suit brought by
ghe attorney general OF Missouri to dis
solve the alleged Gould combination was
the ostensible cause OF the selling of this
and the other Could issues
Some brokers think that during the
period OF respite between the completion
of taking of testimony in Chicago to-day
and the resumption of the inquiry in this
city, Union Pacific may turn on the
shorts. The short interest in the stock is
said to be considerable, although it does
not show itself to any particular extent
in the loan crowd.
Reports Of weakness in various branches
of the steel trade did not receive ere
deuce in wcll-informed quarters. and the
statement was made on competent au-
thority that the outlook was never better
for a big twelve months business at the
beginning Of any year in the company's
history than It is to-day. As TO the divi-
dends on the~stock. 10 one IN authority
Will commit himself. and il is still doubt
ful whether the present per cent rate
VIII be adhered 10 until April, when IL
would have been in effect for year. or
whether an increase viii be voted al the
next meeting OF the directors on Janu-
airy -
BY waitHg until April. the directors will
be in position TO take e clear view of the
prospects for the whole year and. based
on this. might be able 70 adopt d dividend
basis higher tLau they would be disposed
to favor az this time.
Apparently, the large interests are max
ing no effort 10 support the market at
present Prices must 9nd their own level.
and week-kneed holders of stocks who
want 20 sell must do the best they can
without any one 10 hold the umbrella for
them while they get in from the shower
that after all. may prove 10 be only a
very light affair. If the traders want 10
work for lower prices. there IS no serious
opposition 20 their designs from iufIuen-
tial quarters, for so far the selling has
not done the market harm, but good.
When impulsive selling like that which
started this afternoon on account Of the
Missouri suit against the Gould system.
reported in the morning papers and dis
regarded as a market factor until about
the last hour Of business, IS sufficient to
bring about a considerable decline in
prices, IL Is fair conclusion that the mar
ket is not yet in shape for a sustained
bull movement
Traders did not know how 10 reconcile
the rum0r Jhat II. Fl. Rogers was about
TO take "a prolonged vacation with the
very bullish view attributed to him in
many quarters. If he really was as bull
ism as he was said 10 be. they argued
he could hardly afford to 20 away from
his market interests, and as for the Inter
state Commerce Commission Investigation.
chair that he would not take great trouble
TO avoid being placed again in a very ia
miliar situation
Pennsylvania declined under bear pres
sure 20 the accompaniment OF rumor
that the company would make an issue Of
|Jo.3oo0J0 short term notes in the near fu-
ture 10 get the cost OF current improve
ments- The story was described as defs-
Gedly premature ia well informed quar-
ters, The opinion being there expressed
that the circulation Of the report az this
time was probably designed to forward
bearish operations in the market. while
the influence of the Investigation Of the
Hartman lines still favored that side.
y has long been believed that Pennsvl-
vania intends 20 announce a cCmprehen-
sive scheme OF financing next spriae
should the money market be favorable,
but the best Informed opinion is that
there IS no urgency in the matter and that
for the present no new issue Of securities
by the road Is to be apprehended.
With the reappearance as a buyer Of
Reading Of broker who has made this
stock speciality. and who has achieved
some notable successes in its quickencd
interest in the stock in the more specula-
tive circles, has caused some dealings in
the stock This broker handled the bulk
of the buying orders for the so-called
original pool which was not a pool N
al, but q party of rich capitalists who.
after satisfying themselves as to the
value Of the stock-its price being then
only about 4o-made up their minds that
in buying for investment they had better
act as a unit than bid the price up in
competition with one another.
When the buying by this pool had put
the price UP 10 about its present level at
the end Of 1868, d Chicago capitalist who
could not see the value to justify such a
level of quotations sold the stock short.
with the result that a year ago a mer-
chant who had already obtained some
n0toriety as a speculator engineered a
squeeze which drove the price up to 164.
The same broker who was employed 10y
the capitalists that had practically coral
led the float tins supply was used to bring
down the short interest, and the fact that
he has frequently taken a prominent part
in movements on the long side in the
stock since has induced q certain class
of traders to attach Importance to his