Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-11
BULLS AND BEARS

Speclai Ot8potch 20 Inc star. =.
NEW YORK. May 11.-Representatives Of
commission houses say that lot in long
time has there been % little regular COM
mission business as Of late. Although the
transactions as recorded on the tape. ag-
gregate one hundred thousand shares or
more on the average daily, they say that
any one not actually In touch with the fact
would be surprised to know how small q
proportion Of the total h. represented by
regular one-eighth business.
HA
Not for long time have brokers ON the
whole been 10 much disheartened over the
outlook AZ they are just now The more
conservative have maintained for some time
that the bond market must show consld-
cradle improvement before sustained up
ward movement could be looked for In the
tinued ease in money and the probability
OF q slowing down IN business little later
on, they were reasonably confident of q ma
teriai increase In the Investment demand
very much afraid that the Hartman fnanc-
ing and similar issues by other large cor
porations, which they regard as practically
inevitable, viii very adversely affect the in
vestment market and quite likely stiffen
the rates for both call and time money.
OF course, the sentiment with respect to
the stock market Ia made more pessimistic
day by day by the continued unfavorable
4 =
In spite Of the latter fact, a well-known
western railroad man, in discussing the
whole situation this morning, said that 1t
Will not be well to become too pessimistic
for time at least over crop conditions
Although the season Is advancing rapidly
hot 10 ut 400 InAo 60.
much of the damage to be made up by the
planting of other crops. He suggests, Also
that II the temperatures Of the season are
averaged, as they always have been, we
VIII have warm summer, and q late fan,
both of which would be highly favorable to
the development of and maturing Of the
belated crops. He Is also of the opinion
that whatever damage has been done thus
far viii be largely made up to the producer
and to the railroads by the higher prices
that will be obtained.
Thus far no formal official statement has
been made as to whether the $50, 600 600
new Southern Pacific preferred stock which
1t Is proposed to issue, will carry the re-
demption clause which the present issue
bears. Last Thursday, when Mr.. Harri-
man made the original announcement re-
gardlng the Southern Pacific and the Union
Pacific financing, he was asked at what
price the new Southern Pacific preferred
would be offered to the shareholders, and
replied at par. and Immediately added:
You know It Is redeemable at lis at any
time
81
Apparently the street, as whole, does
not fully comprehend these new financial
plans, and opinion is about as much
divided this morning as it was soon after
the first announcement was made One
well-knOwn Wall street interest, in dis
cussing the matter. said that on the basis
Of the showing made, both as to the preb-,
able earnings this year, and as to the csm-
panys free assets, Union Pacific common
stock is entitled to sell at ZOO.
Others maintain that the earnings for
The current year and the company's fnan-
cial position generally are not as good as
they have been led to believe could be
shown.