The Washington herald., 1907-03-10


them untrue, the day in this respect not
differing materially from every other day
during the week, when prices had gone
down at most anything Many brokers
thought the resumption of operations by
the rumor mill was good sign, for it
might mean thar the bears were endeavOT-
ing To cover. using every means that came
to their hands for the accomplishment Of
that purpose. The stories to-day covered
the whole range from the embarrasi-
ments Of individuals 70 ilI-feeling between
high financial interests anu the old yarn
about a recclvership for an important
fiduciary concern.
When corpses Of old rumors are paraded
il is WcH 10 turn away. and amid more
wholesome surroundings reflect that such
things are not dictated by the best senti-
ments OF humanity The rumor mongers
are not philanthropists, nor can they
bring ruin upon the business interests of
the country by bowling about calamity,
The head Of one Of the largest broker
age houses in the street. man who has
been notably. right in his attitude on the
market both on the recent decline and the
somewhat similar one in 1903. says that
IN view Of the extent Of the break and the
fact that prices are down TO a level where
stocks yield a handsome return on the in
vestment. he believes that purchases
made now Will show handsome profits
within a reasonable time even II ulti-
mately quotations should sink TO a level
still lower than that Of the present time.
Referring 10 the liquidation in the stock
market the weekly letter Of conserva-
tive house says.
This has been gone through without a
single failure. showing how true was our
view that If there were in the United
States any large speculative tying up OF
capital il was not done by the Wall street
community in speculative dealings during
/ the past year. It is plain that capital has
been fully employed all over the world.
Enormously rich men who are. we sup
pose the principal owners Of our railroad
/ securities. appear not 20 have realized
that in the state OF affairs prevailing there
would be- such 600 general reasons for
trying 90 borrow capital that its dearness
must cause spasms even IN commercial
prosperity based on the very soundest
foundation. They seemed 10 have as
stunned that with practically unlimited
amount Of property TO pledge they could
borrow all they wanted abroad. II not
4 here; but they seem 20 have found that
while borrowing was merely "a matter of
terms. Yet for them to take the money
. from the foreign markets would have
caused such a stringencv there that the
I cure would be worse than the disease. be
cause at the same time that they wanted
I the money there was a demand from Ar
geutina and Egypt and other places
caused by q very similar state Of things
TO that which was going on in the United
States and Canada. and indeed. most OF
the civilized world outside Of France.
where the high tariff applied 10 a compar-
atively small country has forced the own
ers of capital 20 go outside for their in
vestments
The Hill stocks. which had shown
strength for several DAYS. gave way to-
day. although there was no news what
ever TO account for their reversal Of
form. The bears, of course. did not fail
to draw deductions. and argued that the
only reason why the stocks had held
strong earlier in the week was that they
/ had been supported with "a view 70 their
effect on the money market The inter
ests that have lent the support, they said.
T became tired of lending it, and therefore
/ prices declined The probability is. how
ever. that the attempt 10 make an up
ward movement in the stocks on Friday
was about as Untimely and ill-advised as
/ the one 10 make a demonstration in
/ Union Pacific on the preceding day. and
I that the weak bull account formed on
+ that attempt became the object. if not
I the cause. of the latter decline. it is very
doubtful if any large interest has been
/ IN any way concerned in making North
ern Pacific or Great Northern appear
strong, although it is practically certain
/ that there has been good buying Of both
/ on the weak spots.
/ Reading acquitted itself in the way that
/ has become characteristic Of It. advancing
regardless of the course Of the general
market and Of all efforts to depress it.
and showing. in spite Of the general I'M
certainty, q substantial advance ON the
/ day. Repetition of the old rumor that the
stock was cornered brought the most en-
phatic denial from the interests that have
/ had most 10 do with Readings move
ments in the past few years, and it was
/ asserted that no attempt to corner the
stock would be made by those who have
/ been the heaviest buyers recently. and
/ that they would see 20 il that no attempt
made by others to do anything of the
kind could succeed. The buyers OF Read
/ ing believe in the future of the property
and are prepared 10 stay with the stock,
1 1t is for this reason they have bought IL.
rather than from any desire to squeeze a
short interest That there is a short in
/ terest in Reading there can be little
doubt but the large holders do not think
| that it is part Of their duty to provide
I for its retreat. The shorts may not get
! off scot free. but they need not have any
/ fear of corner.
! The liquidation Of speculative lines of
Union Pacific appeared TO be under way
/ all day, and various tales were told Of in
4 dividual spectators who had been cleaned
cut, and, assuming the best possible ap-
pearauce, said something about taking a
vacation until matters III the street re-
sumed their normal order There were
also stories about the alleged commit
ments of members of the Rock Island
party on the short side Of the stock. with
some circumstantiality Of detail OF how
these interests were waging a stock mar
ket war upon Hartman because Of the
alleged refusal Of the latter to take the
Alton off their hands when they found its
]
of denial. a repetition of the authoritative
/ statement that the government was pre-
/ pairing to bring suit to divorce the South
D.