The Washington herald., 1907-05-14
WALL STREET NOTES
Commission Men Bearish on
Union Pacific Stock.
FIND CHANCE FOR PROFITS
Reverse Position of Few Days Ago.
Banking Houses Inclined TO he
BuIIisb-Reason Ascribed to Fact
that They Have Underwriting of
New Bonds-LOndon Heavy Buyer.

tnhk 1nEF
New Bonds-LOndon Heavy Buyer.
New York. May 13-Large commission
houses which, al the end of last week, had
been very bullish in their views regarding
Union Pacific sent out directly contrary
opinions this morning The views ex-
pressed on Saturday were founded on in
! formation received. or alleged to have
been received, from high quarters. 10 the
| effect that the stock was to be moved up
ward with a view to encouraging the
stockholders to subscribe for the new
/ bonds
The contrary opinions expressed yester-
| dav were said 20 have resulted from
more mature consideration of the danger
| Of allowing railroad systems 10 embark
/ in the business Of buying and selling
/ stocks Of other companies But, perhaps
/ if the exact truth was told, it would be
/ found that the rise of 3 points from
Saturdays low to to-day's opening quota
tions for the stock had a good deal to do
] WIN the NudnEt VI sentiment ilAo Nti1
not a large rise, but, small as it was it
afforded more opportunity for a quick
profit than the commission houses had
been accustomed to for some time past,
and. consequently, those in a position TO
take profits did so.
/ Having taken their profits, they began
/ 10 see the whole matter in a new light
and to throw the weight Of their argu-
/ ments against a further advance in the
stock Being = longer committed TO the
/ bull side they would like TO have seen
! a reaction. hoping that a decline Of a
| couple Of points might afford them an
| other opportunity 10 do a little business
| The consequence was that when the bull
wagon started, they We're not aboard
But If Union Pacific lost the support IF
! the commission houses. it seemed 70
/ have gained in the esteem Of bankers and
other influential persons. whose associa-
/ ton with any movement would prac-
/ tically insure it's success. The reason why
/ these interests were found on the bull
side Of the market for the stock was
probably that they had been taken in on
/ the underwriting Of the bonds. and that
as the best means OF helping the market
/ for the new securities. were themselves
! expecting to advance quotations on the
stock. There were rUmors Of the forma-
+ ton Of a strong pool 10 put up the price.
but it was doubted if there was a pool
/ in the strict sense of the word, although
, il was generally believed that the under
/ writers both collectively and individu-
/ ally. were using all the means al their
/ disposal 70 attract favorable attention
! toward the stock.
/ London was again a buyer Of Union
Pacific but the suspicion entertained on
/ Saturday that the orders sent over from
I ue other side really had their origin
/ here, in a purpose 10 make It appear that
( the foreigners were favorably impressed
with the Hartman plan Of financing,
/ deepened to-day into something like con-
| victi0n that such was the case, for several
/ of the houses which had buying orders
1 from certain London quarters, also had
/ assurances from their regular connections
/ in that city that the proper Interpretation
of tie recent announcement was not
/ favorable.
/ With the elimination Of the commission
house bull account. Union Pacific was able
to respond in the last hour TO the inlu-
|ence of the aggressive operations of the
strong inside party and the apparently
favorable attitude Of the foreign Contin-
gent. and moved up brisEly TO about the
level az which Il sold on Thursday, Just
as the announcement Of the new financing
was made and before the disappointment
over this resulted in a downward move
ment of about six points.
Of course. the general influence of a
sharp reaction i'm wheat prices following
the sensational advance Of the forenoon,
when the September options had crossed
1.-The dollar mark. was felt here and else
where TO this being added the effect
which came from the bullish operations Of
some Of the strongest financial interests
in the street
| Viewing the results OF the days opera
tions in the stock and keeping in mind the
fact that the short interest was still large
some Of the shrevdest operators on the
floor Of the exchange said there was little
doubt as to the success Of the bond offer
ing The market price or the stock at the
end Of the session was brought so near
the opening price, through conversion OF
the new bonds as 70 make the conversion
privilege a rather attractive gambling
proposition.
The way commission house sentiment
switched around on Union Pacific was q
fair indication Of the attitude toward the
market as a whole entertained by the
more numerous part Of the trading com
munIty. This was that it was useless tC
expect an important bull movement, anC
that whoever succeeded in making ever
small profits in the next few weeks would
be entitled to pride himself upon his
\ Iastu:eness or congratulate himself on hi;
luck. Very little hope was felt anywhere
that efforts to interest the public would
meet with even a moderate response. as
far as concerned the near future, al
though a few operators expressed IN,
opinion that If those who had tempo
8 rariiy deserted the stock market 70;
. wheat speculation made a good cleanup
, in the latter. they might make their re
, turn to the securities market later in thC
. year.
nnCTnN ST,nCESs