The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-12-29


which caused the advance that the size Of
the short interest figured In the discussions
OF the traders to a greater extent than all
other subjects combined.
-fhey have got them on the run"-"thsy"
meaning the bulls and them" the bears
was what the traders said In explanation OF
the advance In the nrst hour. and this de-
scriptiOn was reiterated with such 'tiresOme
mOnOtOny As 10 depress sentiment rather
than 70 arouse II to some degree OF enthusiasm.
what was lnfended Al a built argument beCOm-
ing In cOnsequence'R RactOr--mOrs or less
potent on the side Of decline. The calihre
OF the principal operators working for an
advance WAS indicated by their failure to
direct attention to the subst bntial factors
In the situation aud their reliance on a purely
technical consideration. which they hoped
by manipulation to turn to their advantage.
Had they accumulated the prospect OF linz
prOvement in the money market for instance.
they might have attracted the notice OF some
part Of the general public, hut when they
failed to rise above technical considerations
that had little interest except for tho spsou-
latOr ths natural result followed, and the
only interest aroused was among traders In
the room. who clutchsd at an opportunity
10 scalp even very small profits aud lost no
ttnls about chan .sing their position an soon 40
the advance seemed to them to have about
run It's course.
The dOOr traders never make the best kind
Of following for a bull movement. They may
give IL quite q little impetus. but another kind
OF folio wing IL necessary TO sustain an advance
and ultimately AFFORD the insiders a chance to
get out with proft. The trader loses no time
about getting In. but when once in he gives
very close attention tO his position and is very
prone to jump out suddenly II he thinks he
can detect any signs or selling by those who
inaugurated the movement. The bright floor
trader 10 seldom caught with the goods on"
He In content with small profits. but has a
great aversion TO losses. and although he will
join In q movement while II looks vigorous
and healthy he quickly puts himself in a
position Of safety just as soon az he begins to
suspect that all IL not a. II should be.
Up TO about II O'Clock the traders we're
VoCirerOus bulls. After that they were too
busy getting out Of their stocks TO say much.
but what little they did say was not In keep
Ing with their actions. In all probability II
was what they did rather than their asser-.
tiOns OF confidence in the bull position that
showed the real state OF their feelings. Some
OF them felt sore. They had been stung and
even their pride was wounded. The latter
injury they could stand IL they had not been
hurt In pOcket-a very sensitive place with
most Of them nowadays. They had always
Dridsd themselves ON their ability to get out
A. quickly as anybody else. i" but with all their
agility they failed to land on their feet when
the sudden reversal OF the markets form
compelled them 20 jump on. The bull move
msnt had been wholly professional. and when
the professionals tried to take profits there
was an end OF II.
Reading was the arst stock that betrayed
the change OF front OH the part OF the bull
operators. BY the middle Of the session,
when this stock had risen 60 0S. the selling
began. The most alert of the traders neither
sought for explanations nor stood upOn the
order OF their going. They went az once
not only out or this stock but out OF every
other in which they had commitments They
knew that IL was manipulation and a squeeze
OF the shorts that had caused the rise, and
when they saw that those who conducted
the manipulation had begun TO realize profits
they took the cue and did likewise. This net
result of the operations in Reading was a
decline OF nearly q point. this being one OF
the few active railroad issues that suffered
a decline on the day.
Union Pacific opened more than a point
above the level Of the preceding nights close.
IL rose In the first hour TO HOS, or Within a
point Of Its highest for the current month.
but reacted to the extent OF ? points in the
second hour of business. and closed without
net change on the day. The bulls had made
IL one OF the principal mediums of their opera
tons. but found that when they relaxed
heir efforts on the side Of advance there were
few buyers to take their stock. 30 that their
exertions in forcing an advance had been
labor in vain. In this stock as In others there
Is inherent strength TO resist a decline below
a certain level. but this strength did not
prove sufficient for an upward movement
yesterday. II rightly used il may become
a most important factor when money be-
comes easier and the general outlook clearer.
but under existing circumstances Il looks as
- -
Of the whole object of which
IL to AFFORD spectators an opportunity to
profit by the easier money conditions at the
risk OF couneeracting the present tendency
toward regeneration in the financial situs-
ton.
Pennsylvania rose rapidly and relapsed
quickly. Neither the buying that caused the
early advance nor the selling that produces
the later decline could be said to be Of good
quality. Both appeared to be OF the same
professional kind. one group OF traders appar- ,
emily forcing smother to cover and taking
advantage OF the strength created in hat way
to put out a line of shorts OF its own. The
argument on Pennsylvania. which has made
many OF the professionals bearish. is that the
company will before long announce a plan to
raise new capital. and that the issue Of q con-
siderable amount OF new securities may nave I
an important bearing on the question OF the
maintenance OF the present dividend rate.
which was adopted in the fall OF 1905. just
before the road made large increases In wages
and before Il began to feel the effects Of the
two cent passenger fare law which took effect
in the State OF Pennsylvania last October.
How the stockholders view the outlook for
their company 10 indicated by the fact that
the floating supply OF the stock in the Street |
10 smaller now than at any other time in recent
years. and according to the testimony of con- !
servatlvs interests the aggregate OF invest
ment orders keeps Ip as well In this issue as
In any other on the LIST. o.,
The bank btatement made It's appearance
lust at the close OF the market and gave gen
eral satisfaction. Its influence. 10 was Thought,
might be felt tomorrow in a better tone to
prices.
An artificial appearance was given to the
movement, in United States Steel by the fact
that houses which had been lending the stock
called In their certificates. adding 20 the Dor
rowing demand and the troubles Of the short
interest. The supply had been none too plen- |
tiful and when II was reduced covering ensued.
Live SHOn1r Market.