The Washington herald., 1907-05-02
WALL STREET NOTES
More Runners Explain Adj
vance in Union Pacific.
BIG POOL IS HINTED AT
Group of Youthful Spectators said
so Have Been Compelled 10 Turn
shares Over-Atehison Puts Dat
New 3 Per Cent BOnds-Pays Good
Interest for MOney-Diseuss Crops.


Interest for Money-Diseuss Crops.
New York, May LII most OF the
rumors circulated 10 account for the nd-
vance in Union Pacific in the past We're
lacking in originality. this could not be
said. OF the ore that was heard to-day.
The traders who had become rather tired
Of the repetition OF the old stories, pricked
up their ears when they heard one that
was absolutely new, but, consider il how
they would they were still at a loss what
to make of It. In its most definite form.
It was as follows: On March Il, that day
Of stress which has since been spoken
Of and will hereafter be referred 20 in
Wall street history as the mystery
panic" "a certain pool, composed of a
number of rich young men. was obliged
to seek a market for 100000 shares Of
Union Pacific, and finally succeeded in
disposing of the whole amount 70 promi-
nent private bankers at Sl1I share, or
8 Ii points under the lowest quotation
made on the Stock Exchange that DAY
or since.
These bankers presumably Intended TO
sell the stock IN the open market as
soon as conditions afforded them an
TO do 50 at a fair profit, but
a certain interest in the company. appre-
heusiye OF the effect on the market OF
any large realizing movement in the stock.
urged the bankers to hold on. promising
10 engineer a substantial movement in
the price for the good of everybody. 4"
a deal was made. 50 the story ran. and
at once the bull bandWagOn started
serenely on its way, a veteran operator,
not supposed 20 have had much % do
with the market Cor some time previously.
was given charge OF the operations. and
has since acquitted himself in q way 70
sustain the best presidents Of his reputa-
ton for skill and astuteness.
The story. which left of at its most in
teresting stage-where the writer OF serial
fiction might break of with To be con-
tinued gave ample room for the exercise
of individuality in supplying such missing
particulars as WHISTLER the operator VINO
was alleged 10 have -aken charge OF the
bullish manipulation Of the stock accumu-
lated q very large amount IN addition TO
what was already in possession Of his
principals and Of the bankers who We're
his passive partners in the movement;
he still retained the greater part
of what he had accumulated or had not
only worked on all Of this, but the stock
alleged TO have been taken over by the
bankers in addition.
A thousand and one details We're missing
that rumor VIII probably yet supply, and
that such q mine Of new conjecture and
gossip was opened up must be regarded
as a most encouraging sign that Wall
street will not after all be the very unin-
teresting place in the coming summer that
many brokers fear il VIII be.
It was not the pool that was accused
Of selling Union Pacific to-day, but the
people VINO Lad bought the stock sold by
the pool on the preceding day. Neither
was the pool credited with buying back
any Of its former holdings. and the ma
Jural inference was that from the strong
hands Of the pool a considerable amount
Of stock had gone into hands less strong
and that from these il would in turn 60
to others, still weaker. 10 be passed aIone
until il finally reached the very sub
If such inference was conveyed IN the
rumors 1t was not justified by the action
Of the stock, which, considering the eX-
tent Of the rise in the past week main
tanned a strong tone in the absence oi
any apparent effort 10 sustain tie price
That the popular estimate of the intrinsic
merit Of the stock has not been greatly
lowered by the occurrences Of the pas
few months seems probable from the fact
that investment holdings do not com,
upon the market.
The most important news item OF IN,
day was the announcement that the hold
ers OF Atchison preferred and common
stocks would be given the privilege o.
subscribing for l. per cent allotment OF
new 5 per cent convertible bonds al par
payable in installments OF 81 per cen
next July. So per cent in January. and
the balance in July, 1898. The bonds vii
run ten years, and win be convertible,
into common stock 20 an equal amount
The street did not greet the roads plal
OF financing with enthusiasm. Apparently
there had been some expectation that IN,
money would not cost the road mucl
more than 4 per cent-althOugh. OF course
this would have been altogether out o.
line with prevailing eonditions-and whes
IL was found that the rate on the bonds
was per cent. the traders proceeded {,
sell stocks all around the room. Tha
they were Justified in doing so was doubt
ed in conservative quarters, and well
informed bankers expressed the opinion
that whatever ground there might be 70
bCaTish operations in the market based ol
other matters. there certainly was non,
10 what Atchison had done. That a West
ern road could obtain money at o pc
cent it was c0ntended and indicated tina
the long hoped for ease had at last begun
to be felt.
simultaneously with the announcement
of the Atchison financing. there was
slight hardening in the rates for cal
money, and this was one of the factor
that figured in causing the Afternoon
reaction Ia the market. There was also
recurrence of unfayorable rumors regard
ing winter wheat, which came in a wa.
rather 10 suggest the renewal Of opera
lions by well-known bear interests thai
any actual change in the condition of tn
growing crops. Such a lead, however. ap
pealed 10 the traders who had not beel
able 10 make any profit on the bull side
and the commission houses welcomed
change. which they hoped would brini
them some business.
The average commission house, having
few stocks at the present time, care
little whether prices go up or down S
long as there is activity enough to Drin
I in fair number of orders.