The Washington herald., 1907-03-01
STOCKS MAKE GAINS
Firmer Tendency Is Shown
After Early Weakness.
HARTMAN HEARING IS ENDED
Feeling of Relief Among Operators
Over Adjournment Of Interstate
Commerce COmmissiOn-Lega Pre-
ceedings Expected to FOIIOw-The
street Hopes for AIdrich Bill.

New York. Feb 2S.-AfteT q period of
early weakness this morning the stock
market became decidedly firmer and, save
for a slight depression in the second
hour of business. steadily advanced
throughout the session, closing buoyantly
with net gains approximating nearly two
points. as a rule, in the case of the active
stocks. The foreign markets also showed
Improvement, and the day was clearly
attended with a more cheerful feeling in
al the worlds great financial centers.
Whether. however, the rise in prices on
our own stock exchange to-day was due
10 any deep-seated and essential change
in current financial sentiment or to
covering" purchases Of stocks made by
spectators for the fall remains very
open question.
At the close of business yesterday the
market was ut the lowest level witnessed
in considerably more than a year, with
the natural result Of the creation Of the
speculative trading of very large short
interest. II is, of course, manifest that
the parallel of a cooled spring applies
with more or less pertinenCy 10 the spec
tacle of any market in which a long
continued decline takes place. The more
prolonged the fall, the greater is the
resistance presented by the market 10 the
forces that are pushing il downward, and
the greater become the chances OF an
ultimate and perhaps sensational rise in
values.
What was manifestly operative in the
market to-day was great feeling OF
relief on the part Of spectators over the
adjournment of the sessions OF the In
terstate Commerce Commission in this
city. which We're daily provoking, one
after another, causes that We're extremely
unsettling 10 security prices. It is obvi-
Gus that the last has by no means
been heard Of the matters disclosed at
this investigation. Legal proceedings OF
various sorts viii almost certainly result
from the revelations that have been
made, and a blow has been dealt TO gen
eral confidence in railway stocks as in
vestments that the security market viii
feel for a long time TO come.
Street Breathes Easier.
Nevertheless. the storm cloud of the
moment has passed away and Wall street
breathes easier. There were few. If any,
features of the trading to-day deserving
Of special comment, and the rally in quo
tations that occurred was naturally most
pronounced in the stocks upon which the
greatest amount of pressure has recently
been brought to bear.
In the fore part OF the day the paTtic-
ular weakness OF the American Smelling
and Refining common shares attracted
attention and was accompanied by rumors
that legislation against the American
Smelling Company was about 30 be pro-
posed in some one of the Eastern States
But whatever sympathetic effects there
were from the fall in this stock were
largely Offset by the particular strength of
the Missouri, Kansas and Texas common
and preferred shares. especially the for
meT.
The reason for the advance i'm this quar-
ter. which has been long maintained. is
undoubtedly, that an accumulation of the
stocks in the interest OF larger railroad
system Is going on; although the earnings
of the Missouri, Kansas and Texas sys-
TEN are such as TO justify, in the opinion
OF conservative observers. the ruling for
even higher prices for the shares
At the sO-called Hartman iuvestiga-
ton to-day il was developed that there
had been in the case Of the Chicago and
Alton Railroad. as in the annual report Of
the Union Pacific Railroad Company for
1893. Justification OF the books of the
company Testimony was adduced that
e the Alton Iedgers had been kept as they
should have been they would have shown
% the company Of S700.o00. instead of the
surplus OF S2s100o that was exhibited.
Legality Is Questioned.
Grave reflections were also cast upon the
legality Of the disbursement OF the famous
90 Fer cent dividend upon the Chicago and
Alton stock ordered by the Hartman
management and paid out Of the proceeds
OF a bond Issue that sought to capitalize
various expenditures made upon the road
as lar back as 1863 and previously prop
e-ly charged 10 income account. Il win he
interesting to see what the law officers of
the State of Illinois have TO say 10 all this
More or less encouragement was felt IN
the financial community to-day over the
prospect Of the passage tomorrow
through Congress of the AIdrich financial
bin. This bill. it may be said, viii not
materially, or at least for the time being
change the existing financial status unless
The new Secretary Of the Treasury. Mr.
CortelyOU chooses to make a wide depar-
ture in the fiscal operations Of the gov
eminent. To make the bill really and
directly effective would require a practical
abandonment Of the subtreasury system
throughout the country. it is believed TO
be improbable that Mr. CorteIyou naedi-
tates any such change. Call money rates
IN logical consequence Of the approaching
disbursements on the first of the month
were somewhat firmer while time money.
If anything. was a little easier than il re-
Gently has been.
The Bank Of England to-day. for the
second successive week, showed q reduc-
ton I'm its surplus reserve. The continual
large transfers of money from England
10 Argentina appear to be the matter
principally occupying the attention Of the
London financial market at the present