The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-28
WALL STREET NOTES
Rush to Take Profits Follows
Opening of Market,
HARTMAN CLOSELY WATCHED
street Declines 10 Accept ExpIana-
ton, which Masnate Was Unable
vestOrs Grow Weary When Scan
dnIs UnfOld-StOcks Are Inactive.

New York, Feb. 27.-When the market
opened to-day above Tuesdays closing
prices there was a grand rush 10 take
profits by those who had bought stock on
the prospect Of the passage of the Aid
rich bill. and who came to the concur
sion over night that this measure could
not at all be regarded as a eompensatIng
factor for the damaging effect of the
Hartman investigation, The bears
hammered the market right and left.
and by the end Of the first hour It became
clearly evident that liquidation. heavy
and urgent, was again under way in a
number Of stocks.
Figures were printed. apparently by
putting a more favorable COM
pleXion on the Alton matter than Harri-
man had been able to give il under oath
on the witness stand. but the street was
in no humOr TO accept any such eXplana-
tons while the real facts were still fresh
in the memory of all who read the testi-
mOny. The general sentiment seemed 10
be that the less the insiders said IN eX-
tenuation OF the facts disclosed the bet
ter il would be from every point OF view
What had been expected was fun and
free elucidation Of ali important matters
on which the commission sought informa-
ton. and if this had been made on the
witness stand the decline IN the market
might have been much less severe.
u is always well 20 be wary of the sort
Of argument that says when some pecu-
by the Investigation of the Har-
rlman lines are made that everybody in
Wall street knew Of these things and that
the mere repetition Of old stories fur
nished no grounds for the selling Of
stocks.
That kind Of argument was used at the
time Of the insurance investigation. and
has again been used in the past few days.
But it is idle to attempt to conceal the
fact that the foreign holder Of American
stocks had his confidence shaken by the
insurance investigation. and that the out
of-toWn investor was similarly affected.
From that time 20 the present there has
been good ground for complaint on the
part Of brokers about the apathy OF the
public and a speculation IN real estate,
rarely equaled. sprang up beca use great
Of people came 10 the conclusion
that the affairs Of large corporations were
not conducted on the high plane Of
that they had formerly supposed.
Brokers felt somewhat envious over the
fact that the bankers who sold what prac-
tically amounted TO "a controlling interest
in Southern Pacific 10 Union Pacific re-
ceived a commission Of 2lz per cent, or
$3.50. on every 100 shares OF the stock. while
the ordinary commission paid to a broker
for buying or selling 100 shares c. the
floor of the stock exchange is only 81 50
and when stock is bought or sold by one
member Of the exchange for another mem
Der the commission is only 3 for every 100
shares.
The feeling has become widespread that
the Department Of Commerce and Labor
might do a good deal toward aHaying
popular distrust by setting forth at length
and at the earliest possible date the re-
suit Of its investigation into the affairs
of the United States Steel Corporation
Nothing could now DO as much good as
uncontrOvertible evidence that fun inyes-
LEGATION of some big corporation failed 10
disclose anything that could be regarded
as q matter for criticism.
Yesterday a new legislation for the
weakness il. Rock Island was advanced in
the theory that an investigation might
be conducted into the deal whereby the
stock ct the old Chicago, Rock Island
and Pacific Railway was exchanged for
the securities of the new companies The
exchange was made on the basis Of Sli1
ia per cent bonds OF the Chicago. Rock
I II. c-a
preferred stock and 800 in the common
stock OF the Rock Island company for
each Sio0 share of Chicago, Rock island
and Pacific Railway stock.
The sarcastic reply made by Mr.. Hill
whom interviewed regarding Mr. Harri-
mans assertion that if the Union Pacific
interests had been allowed to retain con-
troll Of Northern Pacific the prosperity
OF Northern Pacifics territory would
have been advanced by ten years had a
bad effect on sentiment. as il was con-
sidered indicative Of strained relations be
tween the leading railroad interests IN
the Northwest. 1t was recalled that on
a former. occasion when Mr.. Hill sarcas-
tiCally referred to a remark OF Mr.. Har-
riman's-that being on the occasion of
the latter's reference to an era OF COM
petitive railroad building following an
era OF competitive railroad buying-the
market had a pretty bad time for day
or two.
The bear operators who for some time
had been predicting a break to 10 in Read
ing, saw their prediction nearly fulfilled
when the price dropped to 112lz-or within
a fraction of point OF the low level
touched or the break in May last year.
There were no new Tumors to account
for the decline, and none was needed, for
the cause was plainly descernable in the
liquidation that with little interruption
continued all day. There was, of course,
the usual amount of bearish manipula-
ton accompanying the forced liquidation
an operator who has made the stock
his speciality being particularly active IN
this way-but traders who sold short in
the first hour said they had no difficulty
in getting all the stock they wanted To
cover contracts at any time, their Obser-
walton being that the amount Of stock
that had come into the street more than
sul6ced TO provide for the Increase In she
size of the short interests.
The volume of trading in Reading was
enormous even for that issue, amounting
to upward of 10000 shares, or more than
one-third Of the days total transactions
The weakness of this stock and the ap-
parent eagerness on the part Of some
holders 20 get out of it as quickly as
possible. eXerted a decidedly depressing
effect all around, and. next to the testi-
mony in the Interstate Commerce investi-
cation, was the principal factor in pro-
ducing the decline in the general list
There was a report Of buying on a scale
down, but the keenest observers said