The Washington herald., 1907-03-17
WALL STREET NOTES
Z. P, Reading, and Copper
in Quick Recovery.
ST. PAUL IN UPWARD MOVE
Good Demand for the steel Issues,
Due Partly to the Excellent Report
for the Last Quarter-RumOr That
Hartman Is Out Has Little Weight.
Gossip and General Comment.

New York, March 16.-There was a COM
plete change to-day in the character of the
rumors regarding the possibility of fail
ures, for, instead of stories OF trouble re-
sulting from the break in prices on Thurs
day. tales were told Of the difficulty some
bear side would have in securing enough
stock TO cover their contracts. It was
whispered around that they were after
this house or that, although nobody
seemed to be able to identify the parties
to whom the prOnoun related 1t seems a
little late TO talk Of running houses that
have been operating on the short side for
weeks past, for there can be little doubt
that opportunities were not lost to cover
a large part of outstanding short lines
when the panic offered them. as they are
not often offered in a lifetime. If such
houses have found II necessary TO con-
tinue covering in the face of advancing
prices. there is no reason to believe that
this involves more than the sacrifice of a
relatively small part of profits that even
now are very large.
Il IS by no means improbable that some
of the most aggressive bears in the mar
ket have been helping the rally along with
a view to putting out their shorts again
at as high level as possibe The be-
lated bears, those who joined the move
ment after it had run a considerable part
of its course. are the real sun erers by the
rise in the past two days
The rapid recovery in the p,ice Of Union
Pacific has brought recurrence Of as
surances that the dividend on the stock
will be maintained on a 10 per cent basis
Il IS very hard. however. to' reconcile
such assurances with statements made
not very long ago by certain officials Of
the Union Pacific system, supposed 10 be
in the confidence of Mr. Hartman, that
no director Of the Union Pacific Railroad
ever showed that the 10 per cent rate
could be permanently adhered TO. The
view taken Of the dividend by those Of
hcials was that the per cent paid from
earnings was a fixed rate, but that the
( per cent from income from investments
was the result Of an exceptional year,
and that under normal circumstances its
continuance would be a matter OF uucer-
tainty. The rights on the Great North
ern stock issued fourteen months ago
were worth about SBS a share, and IL Is
not likely that stocks bought with the
proceeds OF the Hill issues will yield
equally handsome returns, nor Il it prob
able that the very large dividend prices
~
repeated
The highest point Of the recovery in
Union Pacific thus far was reached about
half an hour before the market closed,
and its attainment was largely the re-
suit Of urgent covering Of shorts. al
though there can be no doubt that there
was also a good deal of buying By some
Of the strongest interests in the property.
Naturally the traders were indisposed to
follow the stock in rapid upward flight,
as most OF them fear the possibilities for
reaction in a security that was pushed
up 81 points from the previous nights
close to a level 24tz points above the low
Of Thursday. a rumor was industriously
circulated 10 the effect that z. II. Har-
riman was down and out and attempts
were made 10 construe this as a bull
argument, but those who studied the
transactions in the stock said the dealings
gave the lie directly 10 all such stories.
for TIE feature of the trading that stood
OUT most prominently was what is gen
orally characterized as Harrimsn buying
In connection with the rumors of the
alleged passing of Hartman. il was re-
called that about three years ago. or at
The time Of the Silent panic" there had
been rumOrs Of a similar kind which
ceased, however. just as soon as the finan-
cial and commercial conditions improved
1t was inferred that the same might occur
again. The popular supposition in Wall
street is that Hartman is exnected to
take all the blows aimed at any Union Pa
cific interest. and that he does not mind
them 50 long as they do not hurt his
pocket.
St. Paul, like Union Pacific. furnished
one of the sensational features in the list
of advances. the one being a natural ac-
compartment of the ether. seeing that the
buying and the methods followed to drive
the short interest in were substantially the
same in both. 1t was a matter by no
4llt-<AtA@ uAANO4 lily III llUAt lllal Mllll9 81
Paul stock was selling at 13S, the certlf-
Gates of subscription to the new issues
were selling exactly twenty points lower.
the difference in the price being much
greater than any one seemed able to salts
factorily explain Had it been a time for
optimism. it might be argued that there
was a possibility CT some kind Of melon
which would benefit the stock. but not the
holders OF the subscription receipts How
ever, as il is hardly conceivable that any
thing of the kind is in prospect now, il is
probably a fair assumption that the rea-
son the stock has advanced so much more
rapidly than the receipts Is that there has
been large short interest in the former
and none at all in the latter.
There seemed to be no end to the de-
mand for United states Steel. The largest
buying came from one of the active floor
traders. but it is now recognized that
transactions in the stock By this particu-
lar broker often represents something of
much more Importance than a mere trad
ing position. II was plain that study Of
the annual report had Influenced senti-
menJ favorably toward the stock for in
dAl4lDSt every ANci AtA II NdS tbiteQtu LiitL
the company could in all probability main
tain the present very conservative divi-
dend policy through any adverse condi-
tions that might reasonably be appre-
hended That great amount of Steel has
been taken out of the street for perma-
nent investment within the last few days
there is absolutely no reason to believe,
and, according TO the testimony Of trust
worthy authorities. the trade outlook is
really better now than it was few weeks
ago
Leading all stocks in point OF activity,
excepting only Reading, Amalgamated
Copper, after being no better than steady
in the first hour. became one of the
StrOu e-est featst-as aftar tte ,,,,t,tfo, .,