The Washington herald., 1907-06-05
WALL STREET NOTES
Tuesday UphOldS Reputation
as a Rallying Day.
BREAK IN RANKS OF BEARS
RumOr that Hartman Lines VIII
Not BE Prosecuted, Repeated on
Change, Gives Strength to Bulls.
Meaning Union and Southern Pa
cific Are Not Competitors.

/ Change, Gives Strength TO Bulls.
Meaning Union and Southern Pa
cihc Are Not Competitors.
! New York. June TUESDAY continues
to sustain its reputation as rallying day
/ in the stock market
| That a rally should occur to-day was
entirely in accordance with technical con-
ditions. The market had beome over
sold, and there was no longer evidence
/ Of liquidation from any quarter There
may have been an organized effort on the
/ part of large interests 20 turn the course
| of prices. or there may not, but there
/ certainly WAS an uneasy short interest
which found too much company on that
/ side and wonder where the stock could
{ be obtained 10 supply the large covering
demand that must inevitably follow any
/ favorable turn In the character of the
news. such as an Improvement In the
| crop situation, or real evidence Of a
more reasonable policy toward the cor
3
/ Seeking TO escape the consequences Of a
/ severe squeeze such as the extended
! bear position, left them liable TO, some o.
! the more conservative of timed shorts
began early In the day TO reduce their
commitments, The appearance Of this
break in the ranks Of the bears encour-
/ aged speculative interests working for
rise 20 greater efforts, and as the com
bined results. prices rose briskly. while
sumor adopted a cheerful tone in marked
contrast to that which had characterized
it for several days preceding
The rumor that proved most influential
/ in forcing the shorts into a covering
movement was that it would be an
uounced in Washington before long that
the administration had decided % drop
whatever plans il might have entertained
OF bringing suit % disrupt the Hartman
system. The rumor really differed but
/ little from one heard before. especially on
Friday last, when the section OF the
Presidents speech admitting the right OF
one railroad 20 buy the stock Of a con-
Meeting line was construed as a strong
intimation that no question OF the legal
ity Of Union Pacifc's ownership Of South
ern Pacific would be raised. the lines be-
/. ing regarded as connecting instead Of
parallel and competing roads
But whatever the story about an official
announcement from Washington origi-
mated, il Travelled quickly. Tor within a
few moments after 10 began 90 boz
whispered around the floor. it reached an
the brokerage offices and went speeding
10 the oUt-of-towu connections Of the
wire houses. Meanwhile. Union and
Southern Pacific stocks acted iu way 10
give il point and the traders who We're
skeDuCal regarding the alleged purpose
of the administration % make a definite
announcement. argued tEqt il important
stocks could Doe put mp without the aid
Of anything beyond scare of the short
interest there We're probably 0pp0rtuEi-
ties for buIlish operations I'm other issues
Before the cotton report made its ap-
pearance. the expectation OF the floor Of
the stock exchange was Of a condition OF
about ~ IF it fen below that it would
be regarded as disappointing; if much
better 10 would probably be made the
basis Of a movement against the shorts
IL did not fall belo~ and was but very
little above, being 71la. but on the largest
acreage ever planted TO the crop IN this
country
The figures came a little after p O'Clock.
and were at first imperfectly understood
the trading element apparently failing %
ef FFf d
acreage as compared with last year For
couple Of hours The market hesitated.
then il resumed its upward course. one
of the danger points had been passed and
the bulls began 10 hope that others might
be passed in due time with equal safety
With the cotton report out Of the way.
Wall street began TO take a hopeful view
Of the prospects for the grain crops and
to count on the possibility that the forth
coming statement of conditions on June I. I
20 be issued by the Department Of Agri-
culture on Monday next. would show i'm
prOvemeut as compared with that Of May
!. being encouraged 20 this expectation
by the figures I'm the Ohio report, which
showed a condition Of q for that State.
as compared with = a month ago.
Any improvement as compared with
May 1 would be regarded as satisfactory.
in view Of the fact that three weeks ago
it was everywhere expected that the
month would show further deterioration
on account of the unseasonably cold /
weather.
There was a bull tip on Reading. and F.
everybody got it. Il did not go by f8vors. /
Those who dispensed it were apparently /
filled with a universal beneyolence and
wanted 20 see everybody given a chance /
to make money, and everybody was urged /
to buy. but what was not made clear was /
if everybody turned buyer. where was the /
stock to come from to fill the demand? |
Perhaps it was not necessary that this /
should be made clear.
Those who followed the advance, acting |
upon il early, were in n position TO secure |
a handsome profit before the close, and /
whether they hived this or not they all 4
agreed that there was no appearance Of /
any effort on the part of the dispensers /
Of bullish information. or Of any large
interest. TO take advantage Of the good .
feeling created by the rise to market a /
line of the stock. Some traders said that /
while they were skeptical as to the cur |
rent estimates of Readings value. there T.
was no denying the fact that the stock I.
appeared to have been gathered into |
strong hands since it dropped down to /
about par in the early part of last week
The bull tip ON American Smelling and |
Refining made good. and the stock held .
its advance better than any other issue
on the list during the period Of sagglng
dullness which followed the publication