The Washington herald., 1907-04-12
Union Pacific Forced Down
by Prolonged Pressure,
PRAISE SELECTION OF LOREE
Railroad Men believe New Head of
the Delaware and Hudson VIII BE
Able TO Increase Earning Power
of That Line-New Records Ex-
pected in March Statement.

by many of the arbitrage
houses on Wednesday, the action of the
Bank of England in reducing its discount
-ate TO ~ per cent was followed by an
advance in the prices of American stocks
n London to-day. and strong opening
here. Nor was the reaction that followed
The strong opening entirely unexpected
The market had had big rise and a
part of the short interest had
been driven in If new shorts had been
put out these were not likely 10 be forced
to cover by further rise of a few points
and as the traders were Of the opinion
that all the good news was out, the bull
leaders apparently thought the time op-
perfume for a reaction that might restore
technical conditions to the strong position
In which they had been before the weak
shorts had become scared and bought IN
what they needed for the covering Of
In view of the kind of buying that had
been seen in American Smelling and Re
dning earlier in the week the stock stood
up well under attack to-day. The bears,
believing that there was a vulnerable bull
account in this stock, sold it quite freely,
but after a drop Of about points good
support was encountered, which went
long way toward sustaining confidence in
the prospects for an increase in the divi-
dend rate The attack on Shelters was
part Of Il general raid on the metal stocks,
and the fact that it met with only quail
ined success discouraged the operations
against the others. notwithstanding that
in Amalgamated Copper the bears We're
again given the benefit of whatever aid
their operations might derive from re-
duction in the speculative quotations for
copper on the metal exchange. The effect
of this reduction, however. seemed 70 be
slight, for the street had apparently begun
to realize that the quotations in question
did not in any sense Indicate the market
position Of the actual metal
Union Pacific was supplied in large
volume all day long. although nobody
seemed 10 be able to identify the exact
source of the never-failing supply That
the selling had nothing 10 do with the
value Of the stocks was the general be-
lief Either there was profit taking on
stock bought at the low levels last month
or liquidation checked then was resumed.
Whichever it was, there was a large vol
ume OF 1t. Traders tried TO explain the
selling to the new phases of the Inter
state Commerce Commissions inyestiga-
ton presented this week, but brought out
nothing that had not been considered be
fore The more they talked the more
they seemed mystlfed. There We're cold
facts-the stock went down and stayed
down, except for "a little rally that did
not seem TO represent anything more than
the covering of few shorts. Union Pa
cihc is as heavy as lead, said one broker
although 1t is as cheap as anything on
the board. and as long as il remains heavy
do not see how We can have much of q
rise in the general market"
About the most interesting item ol
news brought out during the day was
the report that d. O. Mills had retired
from membership in the Southern Pa
cifc board of directors, and that ". 3
Crtting had been elected as his successor
The announcement Of the change Wa.
accompanied by the explanation that MIR
Mills intended to retire from the boards
of number of companies I'm which IA.
now had membership, but this did not
explain why, if this was the sole reason
his place was not taken by his son
Ogden Mills. who had been associate
with him in business for many years. Thl
view taken of the matter was that Mr.
Mills has not had a large stockholdinf
interest IN Southern Pacific for som,
time past, and wanted to be rid of respon
sibiities that in these days of indis
criminate criticism are more arduous thai
formerly.
Speaking of the appointment OF L. Z
Loree as president of Delaware and Hud
son, a railroad man himself, one of IN,
ablest in the United States, says: Il holC
/ no brief for Mr.. LOree, but I know wha
/ he accomplished on the Baltimore an,
Oaio, and I have my opinions as to Ia,
sort of difficulties he was confronted witt
on the Rock Island, and ] know that i
properly sustained and backed up h
would make any railroad progress. Thing
/ have been said about his ability tha
were not complimentary, but he has neve
} replied. Talking Is not his forte, bu
when there is something 10 be done
well. there is always something dOinl
/ if he is around. Loree is a first-cias
/ railroad man, so big. in fact. as to ex
cite any amount Of Jealousy, and s.
sensible that he will not resent it.
/ A good deal WIS heard to-day about tn
owing down of commercial activities
and in some quarters it was said tina
this had already begun TO make itsel
felt in many directions. No one cared
however. to make a definite statement L
the effect that the traffic of any particu
lar railroad or the business OF any par
ticular industrial corporation would b
smaller for the current month than 70
the corresponding month a year ago, Oh
the contrary. it was admitted in all well
l informed quarters that the statements o
/ earnings for March, soon to be publishe,
/ by tho leading railroads, will make
very good showing in the matter Of gross
/ IN many cases this item will reach record
breaking proportions Operating expense
were of course high. but a way may sool
be found 20 bring this TO normal proper
tiOns.
Reading did not oppose any very grea
amount OF resistance to pressure, the eyi
deace of weakness IN the technical posi-
ton Of the stock being more in evidenc
than on the preceding day, and. indeed
with the notable exception OF Unite
states Steel. the stocks that had been tn
] leaders on the advance last week wer
lacking IN the quality of strength.
Those who talked of a business reactioi
attached a great deal of Importance to
statement attributed to President Earring
of ST. Paul, that the road might not pres
construction Of the Pacific extension thi
year, Notwithstanding the money 70
the work has already been provided.