The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-19
WALL STREET NOTES
Extreme Dizziness Prevails
in Stock Exchange.
VOLUME OF SALES IS SMALL


Weeks OF Depression Is Reached.
Professionalism Believed 10 Have
Covered Multitude OF Good Buying
Orders-Rumors of Borrowing.
New York, April 1s-Extreme dunness
prevailed to-day on the stock exchange
except for about ten minutes before the
session closed. but it was evident that
the market had been sold TO a standstin.
so that a very little effort suaiced to
bring about substantial rallies just at the
end OF the day. The total volume Of bus.-
ness was the smallest in long time, and
apparently by Tar the larger portion OF
Il originated on the floor of the exchange.
although there were a few who doubted
If all the buying was OF the purely pro-
fessional character that It seemed to be.
Large interests appeared to be willing 10
have it believed that they were not buy
ers Of stocks and that they thought the
best thing for the market would be a
period Of dizziness; but some Of them.
nevertheless. We're not averse to express
ing the opinion that prices could hardly
work much lower So-called professional
ism has often covered 6. multitude OF
good buying orders in the market, and
possibly it does now.
In view OF the inactivity IN the market,
some brokers began 10 make tentative
plans for a spring vacation. but the
strength that marked the close Of the
days business made them doubt the wis
dom Of such a course. especially as many
of them had reeollecuons of going away
at a similar time in the past, and thereby
missing a period of activity.
II was rumored that Southern Pacific
might enter the market as a borrower
Of S40.OOO0OO or $5O,OOO.OOo within the next
few months. The rumor appeared to be
founded on the fact shown in the annual
report-and therefore so Old as 10 have
been almost forgotten--that the company
last year ordered new locomotives and
other equipment, including three steam
ers, to an aggregate of about 81 000 000
and that a considerable mileage OF new
lines is under construction both in the
United States and Mexico. This does
not imply that the company Will neces-
sariiy be obliged to raise funds just at
present or under conditions in the money
market as unfaVorable as those that have
prevailed for months past.
The growth OF business OF Southern
Pacific has attracted favorable attention
toward the property from all the nnan-
eiaI centers Of. the world, and if the read
found Il necessary 10 raise capital. there
is little doubt that it could draw funds
from abroad to further augment his
earning power.
Apropos of the rumors about Union and
Southern Pacific borrowing, the state
ment Is made on apparently good au-
thority that arrangements mad been prac-
tically completed abroad for the raising
of 100000 for the joint use of the two
before the revelations in tie
Hartman inquiry induced the banking n
terests 10 suspend the negotiations Tor tine
time being. The construction work that
the two companies have under way AZ
present amounts 10 about 300 miles OF
new lines, every mile of which win be pro-
ductive Of business
The money will undoubtedly come from
-uIbpt AAtiltNti Ailf SfldiiGE Eto NrElNt IT'D
dispose Of the matter Of financing. unless
there should be such change in condi-
lions here as to make II desirable TO place
the new securities at home. In the case
of Southern Pacific, at least, all the money
raised viii go for equipment and new con-
structions. and will not only add to the
gross earning capacity of the system. bat
greatly increase it's relative efficiency.
As the funds may be obtained abroad on
easy terms. the effect on
the stock cannot even temporarily be
bearish, and must prove TO be bullish In
the long run.
Light was thrown upon the weakness
of Baltimore and Ohio on the last decline,
when it was one Of the most fnexpIicabiy
weak stocks in the market. by the publl-
cation of the earnings for the month Of
March, which were decidedly unfavorable
The item of gross was smaller by $4,000
than in the corresponding month last
year, and this reduction being accom-
panied by an increase OF $4,000 in the
operating expenses, the net results were
smaller by approximately $50 Than those
for March, 1905.
Such very unsatisfactory showing
was explained by the fact that the COM
pany suffered a loss Of business on ac-
count OF the floods in its territory and
was obliged 10 charge operating expenses
with the cost of making good the damage
resulting from the same cause.
Nobody expected any change in the
Amalgamated Copper dividend, and when
none came there was no disappointment;
nor. on the other hand. was the declara-
ton Of the Reading distribution regarded
as a reason why the stock should ad-
vance. Other copper stocks scored add
vances. perhaps because they lent them
selves more easily to manipulation. and
the traders tried to rally Amalgamated in
sympathy with them, but without success.
There was quite a little talk about the
significance of the present price Of Anal
gamated as indicative of a pending reduc-
ton in the price of the metal. and from
the start stock sales werer on the whole.
of a kind that might be expected to ac-
company efforts of a short interest to
cover its contracts.
If the buying wes not significant, the
selling surely was not impressive. and
close observers of the trading expressed
satisfaction with the action of the stock
from the bull standpoint