The Washington herald., 1907-07-18
WALL STREET NOTES
Interest of Market Centers
in Union Pacific.
SHOWING FOR YEAR Is GOOD
Steel Turns Weak and Forces At
tentiOn TO that stOck-Demand for
Many Operators Sell Accepting
Modest Profits and Covering.

New York, July 1.-THE traders in the
forenoon said Union Pacific was the
whole smarket, and there was little exag-
geration in their remarks. That stock
was in every sense the leader, except that
al times there were practically no fol-
lowers, and as its quotations changed so
changed those Of almost every other stock
on the list In the amount of transac-
tions, the attention it commanded, and
the influence it yielded. Union Pacida not
only led the market, but came about as
near as any stock ever comes to being
the whole market The afternoon brought
out new set OF conditions.
Rumor became buey with Union Pacific
right at the start of the days business.
Nearly all the stories told were Of ine
kind favorable TO advance. but they fail
of stock was coming upon the market,
although the offerings were so accurately
measured 10 the demand that they were
absorbed without seriously checking the
advance in the price
Perhaps the particular rumor that at
tracted most attention was one whien
dealt with the earnings, alleging 5hat in
the year ended June 60 the road earned
20 per cent on it's stock-a figure far
above anything indicated by the monthly
statements so far published
Compared within the preceding year,
the figures would mean an increase of
about S-7.cl000o in gross. S26OC00O) in net,
and s.. 10000 in surplus, after allowing for
a full years dividend on Southern. in
stead of the single semi-ennual distTibu-
tiOn made from the earnings OF the 1905
and FOR the full increase in the Union
Pacific. which figured in the second half
only OF the year prior to the one just
closed. The statement did not seem to be
very well balanced. for il was hard 20
see how practically all of a $4,000 go in
crease in gross could b. saved in net.
but the traders who had the figures
seemed TO place great faith in them, and
if what some Of them said as 10 the
source from which they had been OBJ
talned was true, there could be little rea-
son to doubt the substantial accuracy of
the report made. The trouble. however.
that too many estimates OF the earnings
Of the Hartman lines, alleged to have
been obtained from Mr.. Hartman, had
proved in the last year or so to be rather
wide Of the mark
As for the source of the selling Of Union
Pacific, opinions differed widely among
the keenest observers of the transactions
on the floor; but It was worthy OF note
that quite a few Of the orders were exc
cuted by recognized bear houses. though.
Of coSyse, this was by no means conclu-
sive evidence that they did not represent
real stock
Assuming that the Insiders sold a line
Of Union Pacific the fact might not mean
that they were doing anything more than
conducting their bull campaign on scien-
tlfc and safe lines. BY selling stock on
buiges, they not only make intermediate
profits, but they place themselves in a
position where they can buy freely u
support he market or give II additional
impetus at later stage of the game. Ii
might look very wcll to keep on accumu-
latlng stock and sending the price con
stdntly toward higher levels but Il might
prove very difficult 70 cash in the ac-
cumula Led paper profits at the top.
~ 4 20 dispute Union Pacidcs domi-
NJ act o. ,--e trading. United States Steel
= T~G TX about midday, drawing at
TO . anew 10 reports that the demand
this me year ago. Little that was
new figured in these rumors. and the
general belief regarding the action Of
the stock was that it had no special rela-
uon 10 any developments in the trade.
Professional operations probably had most
20 do with the decline
The traders were not able to make nm
their minds as TO whether the strength in
Union Pacific was designed to conceal
selling elsewhere in the list or the weak
ness II Steel was intended to cover buy
ing operations elsewhere. However. as
there had been five days Of advancing
prices, 1t did not call for any extraordi-
nary courage on the part Of professional
operators TO engage in a play for a reac-
tlon Many Of them who sold early SEEM
ed to be satisfied with modest profits. for
they covered moderately just before the
close.
Notes.
American stocks in London irregular.
mostly rather below parity
Exports Of copper TO England in June
were the smallest in three years.
Trade reports show consumers Of iron
1ut OF the market and business at
standstiH.
London expects rather easier money
next week, and does not anticipate 4nate-
-ial hardening before September.
The government has redeemed s19.46,-
90 Is
Birmingham authorities consider South
arn iron production should increase in the
present half year.
COTTON MARKET.