The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-04
WALL STREET NOTES
Traders Deeply Concerned in
the Hartman Inquiry.
G0ULD's TRIP BRINGS CONCERN
Missouri Paciac stockholders Fear
System VIII Feel Effect OF Being
Railroads Are FacinE-LOOk for
Strength in the stock Market.

New York. Jan. S.--Traders who thought
the market had had about all the advance
It was entitled to for the time being sold
Union Pacific on the ground that the
fishing inquiry" 20 be begun by the
Interstate Commerce Commission to-mor-
row might yield very unexpected results.
Nobody knew what would be the scope
of the inquiry. and the fact that there
seemed 10 be no limit to it was one OF
the most unsatisfactory features from the
stock market point of view in the whole
affair
Wall streets view of the commission s
plans is that an answer may suggest a
new question. and that the new way thus
opened up may be followed as long as It
gives promise OF leading to anything In
teresting. Some brokers asked. not so
much of way Of inquiry rs Of intimation
that they think 10 the contrary, If the
Investigation viii affect values. To this
the bears replied: You can never tell.
We thought when the insurance inVesti-
cation started that il would result in
nothing, but Il gave The market some dis
agreeable sensations before il was ended "
In one respect the selling movement
in Union Pacific may be probably a good
thing for the market What the stock
lacked more than anything else was a
short interest. and this deficiency has
now been made good 70 a very consider
able extent The leading bulls IN Union
Pacific have rarely failed 10 grasp tech
meal conditions favorable TO their opera
ton. and have rarely lost an opportunity
10 encourage the development Of such
conditions
They show no particular aversion 10
baarish operations when these aid their
purpose. and thls probably is the case in
tho present instance. When a gOod-sized
bear account has been formed when con-
dltions become ripe for a squeeze Of
slorts-it will. If precedent can be taken
as a guide. be made reasonably clear why
the present selling movement has not
been resisted.
George J. Could intends. after making
a tcn-day tour Of the Gould lines, TO
spend the winter cruising on his yacht in
West Indian waters. That is a very nice
programme. but the stockholders Of Mis-
souri, Pacific. Of which MI Gould Is pres
ideat. and Of the other Gould roads as
well. are wondering who will look after
the affairs of the big system during a
season that IS expected to bring forth
some Of the most difficult problems in
transportation. and IN other phases Of the
railroad business as well, that American
lines have ever been called upon TO Crap
PIE with.
Early in the present year the street
heard numerous reports OF rich finds Of
new ore veins in the Anaconda Mine and
others controlled by Amalgamated IN the
Butte Mountain. Now comes another re-
port Of the same kind concerning new de-
velopments in Anaconda, and as nothing
has for many months been said of the
other alleged finds brokers are asking !f
those bodies Of ore have merely been put
away for future use 20 be found" again
at an opportune tine TO help along q
stock-markct movement-the only kind Of
use they seem to have been put. FOR
they have not figured 1T all n increasing
production. although the demand IS SO
great that increase in output would be
very timely.
Reports Of new discoveries Of ore IN the
Amalgamated properties always have the
effect OF stimulating bullish activity in
the stock. although apparently the real
matter Of interest from the standpoint OF
the ability OF the company to profit
through an increase of sales IS not the
extent Of the available supply OF ore, but
its ability TO sAlelt what il can easily
produce. Production has increased bur
little In the past year. not because the
mines cannot turn out more ores, but be
cause the shelters are now working to the
limit OF their capacity.
There is plenty of ore in various parts
of the world. but much of it cannot be
used because il cannot be smelted either
because there is no smelter near at hand
or because those in existence cannot han
die more than they are now treating
Shelters at a long distance from mines
cannot be awaited Of TO treat the product
Of these because the transportation Of
the ore would be TOO costly. although re-
fined metal, which IS less bulky, can pay
its own freight for almost any distance
The point Of immediate interest IS. there
fore. one of smelling capacity. although.
Of course. keeping in mind the distant fu-
tuTe. every new discovery of ore in an
existing mine has bearing on the value
Of the same.
Bulls IN New York Central base their
attitude toward the stock on the fact
that its price is now lower with the divi-
dend on per cent basis than the
average for last year, when the dividend
rate was only per cent In other re
spects, they say, the situation is the
same as it has been for years past Cen
tTal has generally sold higher than its
cash dividends entitle it to sell but there
is a reason for this in the fact that the
road finances its needs with issues OF
stock. each Of which is made the vehicle
Of rights Of some value TO stockholders.
and these are given at such times and IN
such moderate amounts that the average
stocisholder can exercise them without
straining his resources. New York Cen
trail has never been guilty of making the
time between the announcement of rights
and the closing of it's books so short that
its stockholders everywhere were left
rrrfF hon ~, -~-1r