The Washington herald., 1907-06-18
WALL STREET NOTES
Readjustment of Railroad
Situation Is Near.
ERIE WILL GET THE c., H. & D.

Hands of the LackawHnna-Russ
Expected TO Announce Loan, and
This May Explain Paris Efforts to
Repair It's Gold Reserve.
New York. June IA matter which. in
the opinion % many conservative inter
ests, will do "A great deal toward attract
| ing attention toward Wall street is the
clearing up Of the railroad map, which.
in an important section of the country,
has not been very clear since the surren-
der of the Cincinnati, Hamilton and Day
ton by the Erie. and the cancellation of
the latters lease of the Pere Marquette.
It is expected that the disposition Of the
Cincinnati, Hamilton and Dayton, in the
way indicated a couple of weeks ago, will
soon be announced the road passing un-
der the joint control of the Erie and
Chesapeake and Ohio, but Of even greater
| importance will be the disposition to be
made of the Pere Marquette. since this is
by far the larger system Of the two. II is
believed, however, that this also has been
arranged, and that announcement Of the
fact would be made before long
According To the most definite and the
most reasonable Of the Pere Marquette
| stories, that road viii pass into the hands
Of the Delaware, Lackawanna and West
ern. The Pere Marquette originates large
amounts Of freight traffic. and would
| serve as an important feeder for the
Lackawanna, which although one Of the
best trunk lines leading out Of New York.
runs no farther West than Buffalo, a city
which railroad men speak OF as a blind
alley" because comparatively little traffic
is exchanged there. nearly all the through
railroad business from the East 10 the
West being redistributed at Chicago and
the Mississippi-M Missouri crossings.
The Lehigh Valley. which objected 10
control Of the same property by the
Erie until assured that the existing
l'trafiic arrangements would not be dis
turbed, might object again. but prob
ably the whole matter can be arranged
Ito the satisfaction of all concerned
lStreet rumors say that. as matter Of
fact everything has been arranged al
ready but in Lackawanna circles IL is
/ asserted that the subject has never been
mentioned at a meeting OF the direct
oTs, and whatever negotiations If any
have been carried on by some interests
the consent of the board has neither
been asked nor given.
There is a strong impression in bank
ing circles that Russia viii before
/ long announce another loan, and that it
is largely IN anticipation of this fact
that Paris has been making such ef-
forts to repair It's gold reserves. The
danger Of a revolution In the Cars
empire IS believed 20 be much less than
it was some months ago, but large
amount Of money will be needed unless
recuperation from the present state Of
/ affairs is to be very seriously intcrfered
with
Operators who. on Saturday, began "a
/ test of the market for Union Pacific and
Reading with a view 10 ascertainlng.
whether it would be possible 10 engineer
an upward movement i'm prices under the
| leadership Of these two issues, continued
/ their test in the first hour to-day and
apparently satisfied themselves on the
most important point. that the floating
supply was small. and utterly unequal
/ TO the requirements of the short interest
should II be forced to buy for the covering
/ of its contracts.
/ II "a favorable technical situation was
/ all that was needed to insure a successful
/ bull campaign, then there could have been
/ no doubt, even as early as II o'clock. as
| 10 what would have happened II all the
/ bears could have been forced into a COW
/ ering movement. the demand for stocks
would have been so much greater than
/ the supply that there would be the liveli-
| est kind Of a rally In the prices.
/ Offsetting the favorable technical posi-
/ tiOn were number Of uufavorable infu-
| enCes, most Of them entirely the products
of a vivid Imagination. but all combining
20 produce a feeling of pessimism deeper
| than has usually been displayed. even on
/ Mondays in Wall street. In explanation
/ of the depression. some brokers said that
/ the rumors rife here last week have only
/ just penetrated to the interior towns, and
| that they had the effect Of inducing eau
! tion where optimism, in marked contrast
/ to Wall streets pessimism. had prevailed
BE this as it may, Wall streets pessimism
had taken on a blue several shades
/ deeper than that Of last week. and il was
very hard to find a trader who could de-
tect even the faintest glimmer Of hope
anywhere,
II would be an interesting study to as
certain why Wall street always feels
blue on Mondays The subject might
well engage the attention Of a medical
| congress. for though I'm no way allied 20
the value Of liquid stimulants, il might
disclose some hitherto unknown facts
about the effects Of the exhilaration OF
located, the remedy might easily be ap-
Piled
At the start the market had to contend
with the depressing effect Of the further
weakness in London and the unfavorable
view Of the situation in Russia held here
and abroad, but just before the close OF |
the foreign exchanges an improvement
In sentiment began to reflect itself in an
improvement in prices especially In issues !
that are most largely dealt in for Paris |
account. Gables were sent here by Lon |
don houses to the effect that so far as
could be learned in that city, no serious |
trouble was to be apprehended.
That in France there was a disposition |
TO take a more hopeful view Of affairs
both in Russian political matters and in |
Egyptian financial circles was made
reasonably clear by the cessation of
liquidation and a movement, though only |
on a small scale. to buy back some Of
the securities sold earlier in the day or
toward the close OF last week The out |
come Of thp Paris seftlou1pnt seems now