The Washington herald., 1907-03-12
WALL STREET NOTES
Recovery in Steel Despite the
Onslaught of Bears.
BUSINESS CONTINUES GOOD
PrOba biIity, However, That No In
Ncrense in Dividend Rate VIII BE
tinues tn Puzzle Traders - Bear
Leader Changes Front.

bears did not like the recovery in
United States Steel. but they were en-
tirely unable 10 combat 1t, although they
tried to belittle il in every way. First
they argued that il arose entirely from
the covering OF shorts. and in support OF
this contention pointed TO the fact that
one OF the largest individual buyers was
an active floor trader They were prob
ably well aware that this trader has Of
ten been iHtrusted with orders OF the most
significant kind in the stock, but it suit
ed their purpose to make it appear that
his transactions represented nothing more
than a retreat from a speculative posi-
tion on the bear side
As q further means of counteracung
the effect of the evident Increase in the
buying demand for the common, an at
tack upon the preferred stock and the
sinking funds bonds was planned, and IN
a vigorous drive the price of the latter
was forced down 20 a new low record for
the year, Both in the preferred stock
and the bonds. however. excellent buy
ing WAS met with. and the bears see
ing that they could no longer find safety
in the stories OF the alleged cancelia-
ton of orders for steel products, started
on the rush TO cover
All the stCies about a decline in the
steel business appear TO have little foun-
dation in fact. Well-informed persons
say the business Of the steel corporation
is keeping up in the most satisfactory
manner, and there can be no doubt, how
ever. that the common stock has q great
lI.f
no increase win De made ir the dividend
rate next month. as the directors are
very likely 20 decide that IN view Of the
expenditures still necessary for the new
plants and other improvement work un-
der way the best interest of the cor
poration and Of ali the holders OF its Sc
curitirs can be served ley applying earn
mss for thcs= purposes rather thaa rails
ing new capital under the prevailing con
dlJi0Ds ia tie money market.
There could be no mistaking the mean
ing Of the rebound ia steel common. \
recovery Of nearly three points from the
low Of Saturday would have been large
in almost any stock, bat when it occur
red in one OF which the total amount out
standing is $5gS. .9o400o-of which by far
yesto.s from Maine To- California;
furnished conclusive proof that investors
could not be stampeGed by prophecies OF
caiamities so long as they had no ap-
parent foundation in fact.
Reading puzzled the traders-it gener-
ally docs. Tney could not see any good
buying in the forenoon. and arguing that
rI.. -tg.l- I.r hon hold -rr fr- tr. mn
pose Of supporting the general market
through the trying times Of last week,
sold little of ft when it showed no par
t.cUlar strength during the first hour
on the ground that as such support was
no longer necessary Reading would be
allowed 20 falI back a few points The
short interest. they thought had been
forced in leaving Tho stock the most vul-
nerable on the list hut il looked later
ass IL the early hesitation was something
lke a trap for the purpose OF catching
such bears as had aot prohted by last
weeks lessen when the price was rushed
up about ten points En- a few minutes
When the trap was sprung the price
dropped off again one thing a9uJ, tRe
Reading movement is ceTtain-that
whether il had for it's object the exert
m.ut Of a favorable influence over the
general market. the same interests that
were active ia the great movement IN
the years 1898 and 1875 are again buying
the stock. although until about "A week
ago they had nothing 20 say about il for
a year OF more
one of the days rumors was that "a
prominent operator who is supposed 20
have been operating on the bear sHe-if
indeed. Ec was not the bear leader-plid
q visit 10 Washington over the weeks
end. and iu high administration circles
learned so much about this governments
policy i1 regard To treatment of COrpor}-
tio.s that was contrary 10 the ideas
which ne had previously entertained on
the subjge. that he at once made UP his
m.nd that the time had arrived 20 cover
shorts,
Following eu the well-sustaiaed strength
displayed all through last week, tie ad-
vance. I'm St paul attracted 4 good deal
OF favorable comment There were some
Who regarded the rise in the stock as an
indication that the floating supply had
been cleaned up in connection with plans
making for important changes Of the
railroad map. but the more general belief
was that the movement had reference 70
the attitude Of certain members of the
Standard Oil party toward the market
than to anything bearing on the affairs
OF the road itself or its relations 20
neighboring properties. The gross earn
iugs for the month OF January showed an
increase over the corresponding month
year ago of $n,o02. or about le2l per
cent. but as the company no longer pub
"a fs.sr-4 Ffss.atr rr--r
on the effect Of the higher cost Of labor
and materials in the operating expenses
of the road
What to make o. the latest Hartman
move the traders did not know. Some said
it was bullish. and others that it was
bearish. but the majority said it had
nothing in it beyond "a renash OF other
statements that in the past week or so
proceeded from the same source. one
broker noted for the lueidity of his views
on all matters of equal Importance when
asked what he thought Of it. said:
'Damfno. and the answer was re-
garded as "a fitting one in the case, for it
might be interpreted as its fine" or Il
don't know" according to individual
fancy.
In the afternoon the Hill stocks were
among the weakest features of the mar
ket on the publication Of the February
earnings OF Great Northern, which showed
Il large fallins off in gross on account OF
continuance of the weather conditions
that in January seriously interfered with
the operations of the road. The announce
ment that the Supreme Court had handed
down a decision against Northern Pacific
in a land case was also something of a