The Washington herald., 1907-02-26
WALL STREET NOTES
Market Is PeSSimistic, and
Stocks Break as Usual.
HARTMAN IS A POOR WITNESS
Union Pacific President Fails TO Give
CIear-cGt Answers to Questions
lie Knew Were Coming from Inter
state Commerce Body's Attorney.
Baltimore and Ohio Sells Low.

couple of weeks before had argued that
particular stocks were earning at least
double what they paid out in dividends.
turned round to-day and asserted their
/ belief that the very same stocks were
paying out in dividends more than they
really earned
/ The average trader has no qualms about
expressing opinions to suit his personal
ends If he is long of a stock his views
on it are likely to be tinged with a very
/ cheerful optimism; if he is short they are
sure to be the reverse. As fast as he
/ transfers his interest from one side 10
the other his views change. and As he
sometimes changes sides several times
within a month, his opinions are not
characterized by any remarkable degree
of stability. As a matter of fact the
leverage trader has no established opinions
and knows comparatively little OF values.
/ His so-called opinions are put on and off,
ike d coat.
/ When a couple of weeks ago the traders
were so bullish on the market they were
/ but surmisiug as 20 the possible causes Of
effects which they observed. these being
advancing prices and a more hopeful
view Of the outlook on the par Of large
/ interests. when a particular stock dis
played strength, credence was given 10 the
most optimistic Estimates Of the values
of the equities represented by it. But
when the inside buying that had started
/ the advance tagged, the traders took
their profts. Had they done no more
than this they might be little more con-
sistent In their views regarding the
values, but after they sold out their long
stock they kept on selling with the re-
suit that even after covering some stock
+ to-day they are now short 10 q greater
extent than they usually commit them
/ selves to this side of the market.
+ The trader who says one week that
Amaigamated Copper is earning % per
cent on its stock and the next week that
/ the earnings do not exceed 10 per cent,
I is not in either case wiIlfuuy stating what
: he knows TO be untrue He simply knows
nothing about il. All his attention is de-
voted to watching the transactions in his
/ ondeavor to trace the buying and selling
/ the one article In his creed being that
/ ten ticker tells the tale and that the ROAD
( to wealth is the ability TO anticipate what
The ticker VIII say next.
For many weeks the street had been
anticipating the resumption OF the inter-
state commerce investigation of The Har-
riman system. and traders very generally
fixed upon that event as a favorable op-
pOrtunity 10 cover shorts. But the open
ing Of the session gave little indication
Of the bad break that was 20 occur be-
fore the close. and the bears believing
/ that something had to be done started the
rumor mill on the double turn Baltimore
and Ohio and Reading were to do new
financing, it was said, and good author
tiles at Washington were alleged 70 have
expressed the opinion that the prospect
for passage Of the Aldrch bill at this
session 81 Congress was far from bright
while FOR the Hartman Investigation
well, Mr. Kellogg was reserving the sen
sGtiOnal feature for the end 50 as %
wind up with truly dramatic effect that
could not fail to be felt throughout the
entire financial world.
About the most discouraging feature
from the bull standpoint in a market that
offered very little in the way OF eneour-
4 gement, was the fact that a number of
the leading stocks made new low records
for this year, dropping below the levels
touched on the decline at the beginning of
the present month. At times there were
appearances Of support, but as this in
no case sufficed TO stop the decline, the
effect on sthe few remaining bulls was
most discouraging.
There was quite a little covering of.
shorts in the last hour OF business. but
those who wanted stock for that purpose
had no difficulty whatever In getting It,
The supply was sufficient for all needs
and it was easier to borrow stock at the
end of the day than it had been for the
forenoon, a fact which indicated that the
liquidation more than cOunterbalanced the
short selling. But for the covering Of
shorts, the conditions az the close which
bordered on Generalization, might have
been even worse than they really were.
Mr. Harriman's lapses Of memory were
not liked by Wall street, as in view Of
the pains that had been taken to inform
the witnesses on all matters that were
likely to he touched by the investigation
1t was expected that answers would be
promptly made to all questions and that
the star witness at all events would be
able to say in effect. There is the whole
st0ry-make the most of it." What the
commission failed to get from Mr. Har-
Timan it will probably get in some other
way. and the only effect Will be to pro-
long the period of doubt and uncertainty
As for the evidence actually given the
street did not relish it. and almost every
4
p. H. Hartman last week that he would
come ont with flying colors had been
founded on.
Pennsylvania, when it sold the greater
part Of its holdings Of Baltimore and
Ohio to Union Pacific interest last sum
mer, did not reserve the right to take the
stock back at later date, according to
the testimony of Z. II. Hartman. and it
did not need to. Union Pacific paid 30
for its holdings of Baltimore and Ohio
common, and to-day the stock sold down
to 10S5s. If Pennsylvania wanted to buy
back some of the Baltimore and Ohio now
il could do so in the open market on a
basis to Weld handsome profit en- the
sale and reDurchase. 1t is now supposed
that Pennsylvania does not intend to do
anything of the kind, but the spectacle of
an important trunk line stock selling
under lea. although paying per cent, had
a decidedly depressing effect or senti-
ment.
The Hill stocks could not have been
weaker if Mr.. Hill instead of his rival, |
had been getting fiayed by Mr. Kellogg. |
counsel for the Interstate Commerce Com |
mission. No particular reason was given
for the weakness in the Hill group. ex-
cept the one bearing on the ore certifi- |
Gates. which had been heard at the end
of last week. These certificates broke be-