The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-05

ison dividend and the drop in the rates
for money failed TO send prices up at a
lively pace, there was nothing in sight
that could be of much use to the bulls.
To-day's response to the favorable fac
tors In the situation, hOWeveT,Sleft Moth
ing TO be desired from the bull standpoint.
Advances were general and IN many
cases of such large proportions as to
make the traders forget their pessimistlc
talk of a few days ago and freely turn
to the side which was evidently favored
by the most prominent and best-informed
interests.
One of the principal factors in the mar
ket was the news from Chicago concern
ing the railroad labor situation, which
was of a reassuring character during the
time the exchange was in session,
amounting almost to a definite statement
that there would be no strike. Such a
change in the tenor Of the reports con-
corning the difficulty between the West
ern roads and their employees had been
anticipated by many prominent bankers
and brokers who. never anticipating a
strike had regarded the action OF the
Atchison directors in increasing the dlVl-
dend as practically equivalent 10 an an
nouncement that no serious labor trouble
was apprehended by the railroad inter
ests. Still. of c0uTav, there We're great
many operators. not well informed. TO
whom the reports that the danger OF a
strike declaration has passed came as a
surprise, and these supplied large part
of the buying, although il would be abb
surd TO suppose that they contributed all
of IT, for there was a continuance OF the
accumulation by strong interests that
had been seen IN the market on preceding
DAYS and In addition "a large volume OF
covering by shorts OF all degrees OF mag
nitude.
Lots of bears tumbled over one another
in their rush 20 cover shorts. but others
braved it out. their hides being too well
covered to feel the crack of the whip.
Obstinacy IA a bear is the sort OF quality
that the bulls profess TO admire in a
market such as the street saw to-day, for
/ they know that it viii serve their own
ends i'm the long run.
After a wide and weak opening, Union
I Pacific became one of the strongest and
most active stocks on the list During
the forenoon il became known that the
earnings for the month Of February
would be published during the day, and
[ the room had II that the showing would
be very favorable. COincidentally with
these anticipations. a tip was circulated
/ that large short interest on the assump-
/ ton that the controversy between PIesi-
dent Roosevelt and Mr.. Hartman would
. sat
road could probably be forced TO cover.
/ and that a vigorous effort would be made
TO bring this about. Just at noon thu
expected statement of earnings was give
out. but proved 10 be neutral affair an
! increase in gross OF not remarkable pro-
] portions being more than offset by an in
crease in operating expenses, 50 that the
net returns were slightly lower than those
/ FOR The corresponding month in 1906. But
the other bull argument-that about a
/ large and not very intelligent short inter
I est-seemed TO be Well founded. for on
! the rise there was heavy covering. and
quite few bear stop orders were caught.
! As a counter-blast to the bull talk on the
stock the bears circulated a story about
/ surrender of the coal lands in wyoming
that were the subject of Investigation
/ by the Interstate Commerce Commission
I last winter. but soon found their position
untenable and retreated rather precipi-
lately.
/ It is not quite clear why 1t should have
| taken Wall street days to see that Mr..
RooseveIt's opinion of Mr.. Hartman or
Mr.. Harrlman's opinion Of Mr.. Roosevelt
had nothing to do with the value Of Union
Pacific stocks.
! Even If Southern Pacific had not been
regarded as intrinsiealIy one of the cheap
/ est stocks on the list, It could hardly have
failed to reflect such remarkable state
ment as that issued for the month OF Feb
ruary. For several months past this road
has been running far ahead Of Union Pa
! cifc in respect TO the extent Of increases
/ both in gross and net earnings, but the
latest statement is perhaps the most re-
markable yet ISSUED The street Is at a
/ loss to account for the growth of earnings
on this road. apparently forgetting that
la prosperous mining population has
sprung up in Nevada, that a city is in pro-
cess Of rebuilding at the western end of
the line. and that a swamp region in the
South has been converted into productive
rice fields
Inc SLDAg dUOuI the IGuuEI Oh Union
Pacific coal lands was accompanied by
another TO the effect that Colorado Fuel
would be obliged to do the same, and this
In the first few minutes of trading caused
a sharp reaction in the price of the indus
trial company's stock. which was, how
ever. followed by quick recovery that
carried the price slightly above the closing
level OF the previous day.
Manipulation to compel the saving OF
short contracts had a good deal TO DO with
the advance in Reading, and that it did
not entirely fail of its object was evident
from the extent to which brokers who
had been among the largest sellers under
par We're found on the buying side, A
curious feature Of the manipulation was
the placing of orders in the hands of sew
/ eral brokers to sell amounts of stock al
12i. or above these being good only for
the day. and apparently designed as an in
tmation that a sensational advance was
expected within the limits OF the session
In the first hour it looked as if the stock
might score one of the advances of large
/ proportions that have become more or less
/ familiar in II. but substantially the high
l est prices of the day were recorded before
II O'Clock, and thereafter changes in quo
tations We're of no particular significance
Time money was in good supply. witt
/ an easier tone to the rates than at any
time in a long while. and the bond house.
was greatly encouraged over the outlook
for the business, when many issues could
be picked out to yield a better return
than the interest on money loaned out foi
long periods Considerable improvement
in the demand for the best class of bonds
was reported. and it was also said thai