The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-26
GOSSIP OF WALL .srREEr.

Nv AAoihtAihOud 1911 bouhUihUCS OF bEduiueBSI
but the unexpectedly food showing made
by the associated banks was avaIled for a
renewed outpouring Of stocks that carried
the whole list considerably below the high
points OF the recent rally. No reason was
assigned for the renewal of the selling move
ment beyond the general one that liqulda-
hon was still In progress and that the bears
we're doing their utmost TO make the effect
on the market as great as possible. That
there was real liquidation could hardly, be
denied even by those who on the preceding
day we're inclined to argue that 1t had been
completed. What had occurred on Thurs
day and Friday was merely a temporary sus-
pension of liquidation to allow the market TO
right itself and AFFORD an opportunity for a
rally against the shorts. How much liqui-
dalton, yet remains to be accomplished is
a matter very difficult of determination.
and the guesses on the subject are about
as wide as guesses usually are where there is
nothing tangible 10 afford a basis of estimate.
II the short interest was as great as 1t had
been made to appear by the demand for stocks
In the loan crowd on Friday the shorts dis
played a wonderful tenaoity in retaining
their position under circumstance that
seemed to threaten them with determination
But of course 1t is practically certain that
the short interest was OF no such proportion
as the borro wing demand for stocks was
made to indicate. There was as much manipu-
lation Of the loaninE rates for stocks as there
had ever been Of prices, and all for the purpose
OF intimidating the short interest and forcing
II into a covering movement. Many houses
having stocks that they could lend have
made no effort 70 lend them because they
have all the money they need for the very
small ar1ount of business they are doing
at present and because they do not wish TO
help the bears. The number Of houses offer
ing stocks In the loan crowd Is small. while
the hNErn u,fr1 AapaapH In haaNy loNnoly
1t Is supposed, because some sellers Of long
stock are borrowing in order 70 avoid making
deliveries OF certificates in their own names,
which would Of course make 1t clear that
they had liquidated.
Assuming that there Is a large short interest
In the market, lie position IL already easier
than 1t was on Friday, the renewal of llauida-
ton having increased the supply Of stocks
from which the shorts may obtain their
requirements for the covering OF contracts.
United States Steel was the centre Of in
terest In the market. II was one of the frst
stocks to display weakness and II continued
notably weak to the end. For this chatac-
t~eristic there was no explanation-all the talk
Of n bond issue having become totally dis
credit ed-aud all that the most intelligent
observers on the floor could say as a result
Of their obs ervations was that liquidation
was in prog ress or hat there WAS a bear
party at work in the hope of forcing out
stock. That a bear party such as IL now at
work in Wall Street should make p vigorous
attOck on Steel is not unnatural Ia view OF the
fact that this stock Is generally regarded
as the king pin Of the market. II Is playing
for u big stake, and while Tia" chances are
against Winning the prize il 30 big that
daring spectators are willing IN take a heavy
risk in trying TO secure II. Holders Of steel
held through a period at the end Of last
,f,,.. a, I., tI,, na,,a- ~ II.tr ~ |
were pot so bright a. they are to-day. and
III will he strange Il they let 40 now when busi-
\ is coming In TO the company ut Ii better
rate than any one anticipate ed a couple OF
months ago. The Spectator may lie forced
to let 20. but The int rStor should not he
disturbed.
Ere was affected bv the announcement
that a humble of machiniStS employed by
the company had gone on strike. the traders
arguing that II the road was left without
machinists for any considerable length of
time the efficiency OF It's motive power would
soon Diet eriorata. The argument in one sense
was logical. as deterioration Of motive power
would increase the relative cost OF doing
business. besides reducing HE roads ca
pacity for the handling of traffic. but where
il was entirely illogical was In assuming that
the strike would continue long enough 10
cause any real deterioration of the kind
spoken of. The old precept Never sell
stocks OF a strike" seemed to he forgotten.
although it is u good one.
on the subject Of the renewed outbreak
Of foundation in the stock market the weekly
letter Of Il conservative house says: The
Street Ia full Of theories OH the subject, any
one of which, might be correct. the tHvoTite
being that spectators helped over d couple
Of months ago have lately been compelled to
assume their own burdens and. unable to bear
A.. I..l la,ta tIrhyNn nrn NJ tlair fn.L. \
upon the market. This is reasonable enough,
and there is nothing unreasonable in the
supnositiun that other speculatorn who passed
scnthalass through the hreal: CT March -
have become discouraged over the lack OF
support 10 the market at this time and have
begun TO unload their holdings, rearing a
worse break than We have yet seen. The
names Of some very prominent men have
been mentioned as among the sellers of stocks.
but we re always suspicious Of such reports.
for there are so many ways BY which the
large interests can conceal their operations
that the outsider sees only lust what they
want him TO see. II they are willing TO con-
yey the impression now that they are selling
stocks it is entirely possible that their pur-
nose IL to encourage the rurthe- growth of
n short interest that to our thinking has al
ready assumed unwieldy proDortions. Noth=
is more notable on the floor Of the
than the lumber OF brokers that are
bOrTO wing gOOu lines OF hlOths, tNttDl " ne
the extent to which som firms not rated
as very important have been borrowing
beyond the general estimate OF the amount of
business they could handle with reasonable
safety. We venture to predict that il an
organized effort was made by strong interests
TO advance prices the covering OF shorts
would suffice to lift the market well above
its present level. Whether any attempt will
he made at present is the question, and the
answer must depend upon the amount Of
stock yet to be liquidated."
Curiosity is keen in some quarters as to the
OF the seller OF a large block Of st.
Paul allie ged to have changed hands recently
at private sale. The amount OF stock figuring
in the transaction is said TO be 10000 shares.
made up OF 10000 shares OF the preferred
and 10, 900 shares OF the common. There are
circumstances which point TO well known
speculative interests about TO retire from
business as the possible sellers. That these
interests are about to retire from the active