The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-22
WALL STREET NOTES
RumOrs from Bears Had Gar
Twice AsSasSinated.
HILL PREDICTS SHOWDOWN

Railroad MaEnatcs All See Proba-
biIity OF DiminutiOn of Prosperity
on All Lines but Their Oyvn-Atch-
iSon Highly Lnuded Ia Circular Is
sued by Brokers Dealing in stock.
New York, Feb. I.-The Gar was as
sassinated twice to-day, in Wall street
rumors. The first time was at about 1870
o'clock. and the second was about the
middle Of the last hour Of business. The
reason for both was the same-the attempt
to find an explanation of the weakness
in Russian bonds that could be made the
means of depressing securities generally
The real reason for the decline in Russian
government. obligations was probably 10
be found i'm the threat of n resort to
reactionary measures on the part of the
bureaucracy. but as this could have no
bearing on the price of Americans. a more
useful one had 70 be found. or made. and
the reported aSsassinations were the re
suit
received more attention than the earlier
one. although the very fact that hours
had interviewed without bringing cOnfirma-
ton should have served as a sufficient
refutation. The change in speculative
sentiment increased the Teceptivity of the
street for unfavorableness. and in the
last hour anything OF that kind would
have been accepted without much ques-
ton.
A broker who took the trouble to ascer-
tain the trend Of sentiment among the
floor traders said. after the close. that he
found the most considerable of these
operators bearish. as rule, although
short of but little stock.
At about the end Of the first hour the
traders seemed to realize that James J.
Hin had, on his return to New York, said
something about the probability of a
slowing down Of the tremendous activity
that has prevailed in general business
during the past year, and with strange
perversity proceeded 10 attack Mr. Hnls
own stocks. from the prices of which
they cut of a couple OF points. Perhaps
they failed 20 observe that in predicting
q contraction in business the president of
the Great Northern had made a TeseTVa-
ton IN favor Of the roads whose opera
tions he directs
He had. in effect said: Others may
suffer but we viii continue 20 grow. and
as we shall be able 90 get labor and sup
plies cheaper than at present. why, you
can see what IL viii mean for US" There
was nothing very bearish on Northern
Pacific. for instance, in all this and those
who regarded IL as "a signal for further
attack on the stocks and a renewed out
break of liquidation soon found that
they were reckoning without their host.
One Of the peculiar things about the
talk Of contraction in business is that
railroad men see evidence OF 1t every
where except along their own lines.
Every official sees this, that. OF the other
line Of traffic that is sure to keep up so
that his particular road will not suffer.
and in this respect interviews on the
subject bear "a striking resemblance 20
those that were given out four years
ago. before the spasm occurred in some
lines Of business that was caused by a
decline la the price of securities. Yet az
that time railroad earnings did not fan
of. but kept on increasing. so that in
every case the reservation Ii will not
effect our road came true. and all that
was wrong was the anticipation Of a fall
ing on in the earnings of the roads Of the
country at large. The same may be the
case again.
After the traders had done some think
ing, they came 90 the conclusion that If
business was TO contract, the steel trade
would be the first TO feel IT. and so they
sold SOME United States Steel. Finding.
however, that the demand for the stock
was very good, they began to think again
and arrived at conclusion. as follows.
The steel trade will never again en-
counter any such reactions as II has *
FeTlenced in the past The United States
steel Corporation has strengthened its
position To such an extent in the past
Iour years, building up au enormous sur
Plus. rev plants. and new business. with
ouI ADDING anything 10 its capitalization
thaL Jhere is little possibility Of the per
manency OF the common stock dividends
over being seriously called in question
IN other words. the corporation has given
up TO its capitalization. But Great North
ern IS new creation, capitalized. not
on the condition of years ago. but on the
basis OF those at the time of greatest on
umism last year, and here. therefore
is the stock that should be the first tn
feel the effect Of a decline i'm prosperity.
especially as I'm the event that the steel
corporation needed to keep down its OK
penses to the lowest possible figure II
would use as much as possible of its own
cheap ores and draw us little as possible
under the terms of its contract. from the
relatively dearer supply that came to it
through the deal COnsummated last year"
Here was something fairly logical. and
when the attack was made on the ore
certificates they yielded a much greater
extent, relatively, than had the other Hill
issues of steel
The heavy selling of Reading. which
broke the price to near the low level
touched early in the current month. was
accompanied by a revival of the rumors
about new financing, but there was