The Washington herald., 1907-05-11
WALL STREET NOTES
Efforts to Give Strength to
Z. ?. Shortliyed.
AS A WHOLE WEAKER
Bears Attack Other Stocks tn Try
ing to Disiodge Hartman Issues
and sueceed-GOvernmen Crop Re-
port shock to the HuIIs-Frfcix Said
TO BE 81 Buyer Of Reading.


10 BE 81 Buyer of Reading.
New York. May l0-About the greatest
surprise in to-day's market was the ap-
pearance Of London buying orders in
Union and Southern Pacific. It may have
/ been. however. that the appearance was
deceptive The evidence that large inter-
/ ests were giving support TO these issues
was plain enough for any one 20 see, and
Of course. such efforts derived support
from the indications that the foreigners
We're favorably impressed by the plan of
financing which produced a feeling OF
profound disappointment here.
When the Hartman financial plan was
announced. the general belief among
houses with foreign connections was that
it would meet with an unfavorable recep-
tlon abroad. The few buying orders that
seemed 10 have been sent over here to-
day, even assuming that they represented
buying for foreign account, would not be
conclusive evidence that the announce
ments made Gu Thursday by Ar. Harri-
man had met with any considerable meas
ure Of popular favor IN England. In the
first place they were too small, and IN
the second place they might represent
covering on the ground that the bad
news was all out.
While the traders were bearish on Union
Pacific. they were afraid TO take a posi-
ton on the short side OF the stock The
evidence Of support during the. forenoon
was too plain TO permit Of any doubt that
operations for the decline would be re-
sisted by some Of the strongest interests
in the street, and no trader or group Of
traders dared to enter directly into a con-
test with them. At first there was a little
liquidation, but this did not attain suf3-
cient volume 10 count as factor. and in
the absence Of any real selling the bears
were disineiined to venture far. as the
technical position was such that the
shorts might at any time be subjected 70
a pretty severe squeeze
They resolved. therefore. on a flank
movement. and attacked other stocks. be-
lieving that the Hartman news was OF
sufficient general Importance to become a
factor in the market as z whole The
ftf9NAF4t1 "a tAEt1 LItaL7N HAH HEta4 III N4tE
suits achieved in issues where there was
no such organized support as was met
with in Union and Southern Pacific. and
ultimately in these also, 1t did not prove
a difficult matter to Isolate the compare
tive strength OF the Hartman issues. and
this done they could not long hold up The
face of an otherwise heavy market
OF Southern Pacific's floating debt OF
$50. COO. GOO. nearly half. or $l42oOooO. is pay
able TO Union Pacific for advances. Union
Pacific, as the owner OF S90Go0.000 OF
Southern Pacific common and slS.0o0.OoO Of
Southern Pacific preferred. viii be entitled
10 subscribe for Sl6. 10000 new preferred
stock of that road al par With ihe
amount that Southern Pacific owes Union
Pacific the latter win have 10 put up only
S2,0oo.000 to pay for its pro rata Of the
stock. 50 that really the subscription TO
the new Southern Pacific issue need
hardly be included at all in the items to
be covered by the S75.000,9o0 bonds Of the
Union Pacific Railroad.
The surprise which has been expressed
over the fact that Union Pacific has now
] .69S miles Of completed railroad uumort-
gagged only showed how prone Wall street
is 10 forget, for the old / per cent con-
vertible bonds were a first mortgage on
that mileage which, when the bonds were
all converted into stock, became an un-
rledged asset The mortgage and the
per cent bonds that they secured disap-
peared, but instead the company was bur
dened with an equal amount of stock Oh
which it now pays 10 per cent. The mis-
take Of having so much road unmortgaged
-f..
supply Of stocks and bonds will be large
enough TO 90 around.
In the face Of the government crop re-
port, and with wheat prices making new
high records for the season, IT was hardly
10 be expected that the stock market
could continue to display frmness. The
traders who had been searching for weak
spots found a sufficient number Of them
10 inspire them with courage, and as a
result their operations became more ag-
gressive and more general Instead of be
ing directed against a few issues the sell
ing movement was carried all along the
line. and even the supporters Of the Har-
rimaa Issues were unable. or unwilling, 10
oppose a solid front TO II. Activity in
creased as prices declined.
Rumor said Henry Clay Frick was
buyer OF Reading Few of the traders /
believed II. Mr.. Frick has the reputation
of being a very shrewd man who knows I
about as well as anybody when the time
is opportune for a successful operation in
the stock market and when it IS other
wise. The principal buying of the stock
appeared to come from the shorts.
Had not Tennessee Coal and Iron (
passed almost completely out OF the field |
Of speculative activity, the announcement |
that the Hartman lines had placed an
order with the company for 10000 tons Of
steel rails might have been followed by a
movement in the stocks. but as It was, /
the announcement, while regarded as in !
teresting in a way. had no marked effect |
whatever.
The weeks movement of currency in |
dicated something ike stand of IN the
item Of cash, as there were no special
transactions, so far as was known, to |
disturb the loan account and as the busi- !
ness in the stock market has been on a
small scale the general ex- /
pectatiOn was that the bank statement
would be rather a colorless document
The most persistent Tumor regarding |
alleged prospective new financing con (
cerned Reading but, as on the last occa- !
sion when it was circulated, met with |
a direct and unqualified denial Penn /
sYhania was also spoken of as q pros !
pective borrower. but denial in this case /
was hardly necessary in view OF the as /