The Washington herald., 1907-05-16
WALL STREET NOTES
Report on Hartman Inquiry
Causes Depression.
RECOVERY BEFORE THE CLOSE


but Street Is Relieved Because of
knowledge Secured-DeIaware and
Hudson Weak on Rumor of Merger.
New A. ork, May 15-The participants in
the Union Pacific. underwriting syndicate
had little ground for complaint regarding
the size of their allotments. If anything.
some Of them found too much reason for
qualification in the fact that they got
nearly as large a participation as they
had applied for.
In many successful underwriting opera
tions the subscribers receive only one-half
or even smauer fraction Of the partici-
patton which they apply for For this
reason many Of the applicants for a share
in the Union Pacific syndicate applied for
much more than they expected 10 get,
With the result that they have received
more than they really wanted. According
10 some Of the subscribers, the allotments
amounted 20 about so per cent Of the ap-
there was no violent rush for the under
writing privileges.
The agreement between the managers Of
the Union Pacific underwriting and the
members Of the syndicate give the man
ayers power 90 do about anything they
please, They can even change the form
Of the bond and have made provision to
indemnify themselves against any contin-
gency that could possibly arise. The date
Of expiration Of the syndicate is made
16, and it is believed that the
intention is TO adhere strictly TO the date
and make no extension, whether a large
amount Of the bonds remain undisturbed
or not
At about noon a rumor that the Inter
state Commerce Commission had COM
pleted its report Of the Hartman iuvesti-
cation, and that, in its most important
the report was unfavorable
10 the Union Pacific interests. had the
effect Of depressing the market as "a
whole Naturally Union Pacific was per
tcularly affected. the price OF this stock
dropping more than four points In a com
paratlyely short time on fairly active
trading. According TO the rumor. the re-
port Of the commission would state that
competition had been stifed throughout
the territory popularity described as the
Hartman sphere of influence" which
embraces a great section Of the United
States west of the Mississippi Perhaps
there was not so much surprise mani
Tested over the forecast OF what the COM
missions findings would be as the pre-
diction that the report would be published
in the near future.
For some reason or another It had been
expected that the report would not be
made public before the fall, or until some
time in 1908. and at times illusions TO it
as "the great campaign document" were
heard iu quarters where speculative Op-
portunities I'm the Hartman stocks are
seldom allowed TO slip boy without being
utilized While the rum0r about early
publication of the report was not con-
drmed many conservative interests eX-
pressed the hope that publication would
not be- much longer deferred. taking the
ground that the market would be all the
better If relieved Of it's load of uncer-
Jainty.
When denial was given TO the rUmors
that the Interstate Commerce Commission
had finished it's report. and it was ex-
planned that the supposed findings repre-
seuted briefs and opinions of counsel for
the government, the market recovered
from its fright. and rallies were scored in
number OF the active issues before The
time Of closing. Nevertheless, the un-
pleasant reminder Of the investigation be-
came a more or less permanent factor in
depressing sentiment. and traders who
had taken a bearish attitude on the de-
cline showed little inclination % receds
from it on the recovery.
The announcement that measures
would soon be taken 10 compel Mir. Harri-
man To- answer important questions which
he refused 20 answer during the inquiry
last winter was in itself sufficient 10 keep
interest I'm the matter very much alive
and il was the opinion OF many operators
that Il would require the full support OF
the underwriters and the best possible use
of the technical advantages afforded by
the existence of a large short interest q
maintain q fair appearance Of strength in
the stocks as an indUcemeut TO stock
holders 90 subscribe for the new bonus,
Delaware and Hudson had been, before
the rumor regarding the alleged findings
of the Interstate Commerce Commission
I'm the Hartman investigation knocked
things generally. the weakest stock on the
list. and at no time during the day did fl
show any degree Of strength worth not,
ing. The street was full Of rumors bear.
ing on the stock. many o' them being nc
doubt more the outgrowth Of the decline
i'm the price than of any definite knowl
edge Of affairs concerning property
The most picturesque of all the rumors
bearing on Delaware and Hudson was
that some scheme involving that property
was upset by the plan TO combine the
New Haven and the Boston and Maine
What that scheme was. nobody seemed tc
know. but some of the bears on the stock
were sure that it was something of great
Importance. and that had it come to pass
it would have been a strong bull argument
ION Delaware and Hudson stock.
Their contention was that the price OF
the stock had reflected anticipation OF The
consummation of the proposed deal what
ever il was, and that as COnsummatiOr
would never come, there was liquidation
by disappointed holders The closest OBJ
seryatiOn of the trading on the floor
however, made it reasonably clear tha
the sellers were not disappointed. or cthe
holders, except bear operators who wer,
obliged to borrow stock for delivery.
LIVE STOCK MARKETS.
Chicago. May 15.-CATTLE-Receipts. 2l.5o0; csti
mated for tomorrow $500. Steady; Zoe lower