The Washington herald., 1907-04-18


New York. April Il, - Almost every
trader had a story to-day OF some brok-
erage house curtailing expenses by re-
dueing the number of It's employees, or
closing up its branch Offices. Some of
these runlors probably had basis IN fact,
but many conservative interests expressed
the opinion that the very best thing that
could happen 20 the street would be to
encounter a period of dullness until con
ditions-distgrbed by the happenings of
the past month or two-had chance to
right themselves. Brokers who believe
that a period Of inactivity is due are
likely in some cases to dispense with ex-
pensive branches and TO cut out some OF
their private wires. or even to reduce
their Office forces In order that they may
be able to figure a margin between their
incomes and their expenses. This hap
pened three years ago. and it viii prob
ably happen every time the public dis
plays such a lack of interest in the Sc
curity market as is shown to-day.
Judging merely from the total lack of
transactions on the stock exchange on
any day this week, no idea could be
formed of the almost complete absence
Of commission-house business. The ticker
continues to record a fair volume OF sales.
but tie business is almost wholly profes-
sional If the transactions which origi-
nate within the four walls OF the ex-
change were deducted from the total. It
would probably become evident that there
Was hardly enough business left to pay
tie rents of the Offices Of the commission
brokers. There is no help for IL, and the
broker who has 10 business may spend
his time swapping stories on the exchange
with others similarly situated.
For be can find lots Of them or sit in
his ofilde reading the morning paper over
for the third or fourth time. waiting for
something TO turn up.
From the point OF view of the profes-
slonal trader. the market is all right
There is just enough swing TO it to afford
him frequent opportunities for profit on
both sides II the movement Is down
ward. II fails TO force much liquidation;
II it is upward. there is so little really
good buying that he feels its extent viii
be limited 20 what is caused By the cover
ing OF shorts. The professional trader
is a good Judge of technical conditions. for
he helps TO make them, and then he sees
that swelling pressure fails 70 disl0dge
stocks and goes long. On the other hand
when IN market that Is almost
wholly professional he sees that the COW
ering OF shorts has been about completed
he sells out and takes the side of declin-
ing prices tor a turn The one who knows
the game best makes the most money:
bat. of course, none OF the fraternity.
however alert, catches the turn always.
or secures the fun possibilities Of any
Of them.
i was said in quarters where accu-
rate information in regard to the af-
fairs Of the Hartman roads has often
been found that while the Interstate
Commerce Commission was scheduled
to meet in this city tomorrow. the tax
ing of further testimony in regard to
the affairs of the Hartman system
would probably be put on until the fan.
This view was not generally, accepted
I'm the street. where. on the contrary.
the expectation that Mr.. Hartman
would be put on the stand tomorrow
was strongly entertained. and concern
was expressed al to whether he would
acQUit himself in "a way 10 keep the
matter from becoming a market factor
favorable TO the bear interest But
though the street doubted. the interests
which said the taking OF testimony
would be postponed TO the fall reitcr-
ated their statement and refused to
qualify in any particular
II the taking of testimony in the
Hartman investigation is not resumed
before the fan. then there is hardly
any possibility that the report OF the
commissioners viii be completed be-
fore the end of the year Under such
circumstances, interest in the matter
might peter out during the summer
This expectation seems to be enter
tanned in certain quarters. which per-
haps explains the buying of stocks at
tributed TO L. ii. Hartman, but there
is, Of course. no real evidence that the
buying I'm question was really what
it appeared to be. Il goes without say
ing that if Mr.. Hartman wanted TO
cover up his tracks in the market he
could have found means OF doing so.
and il is a pretty safe rule to be sus-
picious of buying that looks signin-
cantly good.
The decline in Union Pacific brought
out a rumor that the company had Dor
rowed el0,0OO,00O in London, but the story
was afterward modified TO make the
amount 100000. or about one-hfth OF
the original total, ard later the whole
story was denied. At the present time
Union Pacific has no need of borrowing.
although it will later in the year be
obliged to arrange for the maturity Of the
notes accepted by the Pennsylvania in
payment for the stock Of Baltimore and
Ohio. bought by TIE Union Pacific In 1906
If. when the time comes 10 provide for
the notes, Union Pacific succeeds in sell
ing bonds or notes abroad. the effect
on the market should be helpful instead
OF hur;ful. Union Pacifc's necessities are
understood, or possibly exaggerated, and
If the company satisfied them through
sale Of some kind of security or ohiiga-
ton abroad, the transaction may be the
means Of bringing money into this coun-
try at a time when funds win be leaving
Wall street for the moving Of the coun-
try's creps.
The strike of miners In Alberta was a
factor in causing the decline in Canadian
Pacific, but probably of greater impor-
lance was the fact that the technical 20
sition which caused the stock to de-
cline will be relieved by the arrival, about
the beginning of next week, of a con
siderable consignment OF the stock now
on the way here from London. Those