The Washington herald., 1907-05-15
WALL STREET NOTES
RumOr of Reading Financ-
ing Takes Another Turn.
MUST HAVE CASH FOR WORK

MIST HAVE CASH FOR WORK
for Elevation of Tracks I'm
philadelphia viii Make a Loan
Imperative Sooner or Later-Penn-
syIvanIa the Principal Bull Card.
Union Pacific Heavily Bought.
New York. May 1.-THE rumOr about
new financing by Reading took a new
turn to-day. and instead of concerning
itself about the alleged intention to issue
bonds, boldly asserted that
the company had borrowed here on Mon
day. or arranged TO borrow, 100000 for
a period Of thirty days. This. Of course.
was a very different matter from the big
bond issue talked of at the end of last
week, and small as the amount was, well
informed interests would not admit that
there was even that much foundation for
the rumors that for nearly a week past
have been a factor in the dealings in the
stock. They contented themselves with
pointing TO the fact that Reading has no
pressing need. and that such equipment
as it has bought could be paid for as
other equipment has been paid for, with
out calling on the money market to sup
ply the funds. When the company buys
equipment. 1t usually forms equipment
trusts, but takes the certificates into It's
own treasury, and If temporary borrow
ing must be Tasorted 10, these certificates
would prove most acceptable collateral
to offer for loans.
Underneath all the contradictory re
ports about Reading financing, there IS
the fact that sooner or later the com
pany will be obliged to make arrange
ments 20 defray the cost of track eleva-
tion in Philadelphia. Last year an agree
ment with the Philadelphia city authori-
ties was reached for considerable track
elevation IN that city, the city agreeing
10 defray half the expense of the work
the remaining half and the cost Of con
structing additional tracks and other Incl
dental necessary work to be borne by TN,
company. The additional tracks ant
other incidental necessary work MAY
mean good deal in the way Of increasing
the company S facilities, and may involve
the expenditure of a fairly large amount
of money. Herein perhaps IS the basil,
Of the present rum0Ts about bond issue
although as the funds for track elevation
viii not Of necessity have to be provided
ia the near future It seems probable tina
the present rUmors on the subject are a
least premature.
II would have been impossible for tn,
operations in Reading to have been NOR,
professional to-day than they had beer
on the preceding day. but they were quit,
as much so, and were far less interest
Ing. becg use conducted In a far les
spirited way. On neither day was ther,
a single transaction that was in an,
sense significant but certain traders
re,eling in the reflected light derive,
from q supposed connection with promi
nent interests in the property. yainly al
tempted 90 blaze the way for a move
ment that would rcvivify the public IN
terest, that. for the time being. If no
entirely dead. was very soundly sleeping
Ii was all OF no use. however. and unit
some prominent interest takes hold an,
makes the little stars hide their "dimin
ishing rays" there Will probably be littl
interest IN the stock. Leaders who sci
out when they see two OF three points
profit are not the kind that the outside
loves 10 follow.
There was no Disgusting the fact tha
London sold Union Pacific on account o.
a considerable scale. For "A coupIe O.
days previous the real attitude OF N,
foreigners toward the announcements o.
the roads financial needs had been nor
or less successfully disguised. but whe.
the efforts TO accomplish this were re
leased the transaction I'm the stock 10
foreign account showed a heavy pre-
p0ndeTanCe Of selling orders
Reports as to the extent Of foreign par
ticipation in the underwriting syndicat
were contradictory. but apparently Ia
| most trustworthy information on the sub
ject was that While the announcement o
I the roads needs caused something of
shock among foreign investors. the bond
were looked upon with considerable favo
on account Of their speculative features.
A house which for many months ha
shown a decided preference for the bea
| side, was a heavy buyer Of Union Pacif
| In the first hour or so, principally throug
other brokers, but 1t got stocks so easil
that traders wondered where Fhe suppl
| came from. When the price went dowI
/ IN the face Of a heavy demand from III
/ shorts, It was reasonably clear that ther
/ could not have been much Of other bu,
| ing. The exhibition Of the ability Of III
/ shorts 20 obtain what they needed witt
/ out being obliged to bid the price up di
/ not tend to increase the popularity Of tn
/ bull side. although there were quite fe-
/ operators VINO continued to express bell,
/ that the insiders would not withdra
/ their support from the stock before Ii
/ closing Of the books for the payment
| the first subscriptions to the new bonds
! The house which covered a large liz
1 Of Union Pacific was also credited wit
the purchase Of considerable amounts
! Atchison, Amalgamated Copper. an
! United States Steel, presumably for Il
purpose Of covering shorts. \ single en-
/ toner Of the house was said to have bee
! short to the extent of about $4,000 share
| but whether the purchases made durir
/ the forenoon, and which possibly aggr
/ gated as much as that. represented II
retirement Of his contracts, or were {,
the account Of other customers, was.
course, a matter of which the street ha
/ no knowledge. The principal intere
taken in the subject by the trading con
/ munity concerned the ease with which II
stock wanted had been obtained, a fact,
/ which certainly was not conducive TO II
! growth Of bullish sentiment
Pennsylvania was the principal bu
card. The stock tipped for a rise earl