Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-02
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK. March 2.-Some of the
largest commission houses continue to take
an optimistic view of the stock market in
spite Of the fact that the rallies are short
lived. Representatives of these institutions
express the opinion with considerable con-
fdence that the buying of late has been of
a considerably better character than the
selling. It Is understood that several rep
resentative houses within the last few days
have received deposits of large sums OF
money from wealthy clients to be used In
the purchase Of standard stocks on any
further decline.
4
In opposition to these statements 1t is
fact that the speculative contingent to
great extent continues pessimistfc and be-
neves that in view Of the legislation
against large corporations expected from
both the federal and state governments. 1t
will be practically impossible to bring
thermore these interests believe that the
large holders of securities will sell stead
lily in order to be well prepared Tor any
unfavorable exigency of an important char
acter that may develop.
80
AS to the extreme weakness in Reading
yesterday forenoon, it is stated positively
by a representative of large commission
house who should be in a position to get
excellent Information that it was found nee
essary to liquidate two large accounts in
that stock He adds that this fact was
known prior to the opening yesterday and
consequently no effort was made to adj
vance prices until it became known that
those accounts had been cleared up. He
further states that the weakness in Anal
gamated Copper two days ago was due al
most wholly to the compulsory closing out
of some $4,000 or 10000 shares Of that stock
held in a weak account. This man believed
that the technical position of the market Is
now more favorable for sustained re-
covery than 1t has been for some time. He
believes that the stocks now held specula-
lively are to a very large extent well pro-
tected and that unless q further severe
break in the general list should occur, it
will not be necessary to Hquidate any &C
counts of Importance.
IS
1t is claimed by stock exchange interest
who is in a position to get frst-hand in
formation that most of the buying of Read.
ing on the declines this week has been for
the account of the First National Bank and
the men who dominate the affairs of that
institution. He believes that the specula-
tors who were largely instrumental in ad-
vancing Reading to the highest figures on
record were obliged to let go Of their hold
ings some time ago and that the floating
supply of the stock is now held almost al
together by powerful banking interests.
Persons who have investigated the matter
carefully in high official circles say that
they have been assured positively that the
Reading management does not contemplate
issuing regular short-term notes, but the
statements are not SO positive as to the pos
sibility of the company putting out an issue
of equipment notes or bonds in the near
future.
Brokers who have been watching the
transactions in st. Paul for some weeks be-
lieve that If the market has a substantial
rally in the near future that stock will be
one of the first to turn upward sharply.
They base this opinion on the information
that at the lower prices a considerable
amount OF the floating supply has been
taken by large capitalists for investment
1t is even claimed that man who devOteS
a large part OF his surplus funds to build
ing libraries not long ago bought 1900
shares of St. Paul stock purely as an in
vestment.
The best informed stock exchange inter-
ests have maintained for several weeks that
important buying in the market was chiefly
for the account of Standard Oil interests
and that the Morgan party was doing little
or nothing. 1t is now stated that within
the last two or three days the latter group
of capitalists have been buyers of the securi-
ties with which their name Is most correct
ly associated to very fair extent. 1t is
claimed that they entertain a considerably
more optimistic view of the situation than
they have for some time.