The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-04-30
union PACIFIC LEADS
Upward Movement in Mar
ket Growing Stronger,
SEEKING TO EXPLAIN ACTION
Brokers Put Forward Many Plaus-
ibIe Reasons for the Strength Of
Hartman IssGes-ReadiHs Is Com
paratively NegIected-Rain IN West
Causes sharp Decline ia Futures.

New York. April 29.-Although the Sc
curlty market to-day was stin duh and
uninteresting and reflected as clearly as
1t has done at any time in the recent
past the torpor OF the public temper as
regards speculation, the market was still
mere active than it has been for the last
few days and general strength was shown
in prices.
The market was. however, practically
made up o. transactions in Union Pacific
stock dealings in the stock constituting
more than One-third of the days total
volume of trading. and as the price of
the stock advanced 4 points. the buying
ana selling Of this one issue was suffi-
eient to give character 10 what would
otherwise have been an extremely fea-
tuFelcss days business. The advance in
Union Pacific went on continuously with
but slight recessions from the opening of
tho stock exchange session, and the hnal
price OF the stock. as that of nearly all
others, was the highest Of the day.
Other stocks. however, seemed to follow
the upward movement in Union Pacific
IN a langUid manner, and the gains made
by them were by no means eommensu-
ra;e with the rise in the Union Pacific
shares. Even Reading stock, which has
for q fortnight past shared with the
Union Pacific the distinction of being the
Header" OF the market, was to-day COM
paratvely neglected
Seek 10 Explain MOveEnent
As to the movement in Union Pa |
cifc numerous explanations were Of
fered. all of them unofficial and quite OUT
of a kind that the gossip of Wall street
loves TO entertain on such occasions. 1t /
was vari0Usly said that the movement [
was directed against the large short in
terest still outstanding in the stock, that /
the March earnings statement OF the /
Union Pacific and Southern Pacific COM /
Panies soon published would again show
large increases in net revenues; that /
Edward II. Hartman, the president Of /
the Union Pacific Company. was about TO 4
relieve the organization of the burden /
attaching 10 his name that the powerful 1
financial interests identified with the COM /
panN had been large buyers of the COM
pauy's common stock during the recent /
depreciation ia values, and We're deter /
mined to lift the price Of the stock TO its /
proper parity with that of the Southern {
Pacific common shares and other issues /
Of similar rank. and, finally, that plan /
Tor "segregatiug' the investment holdings (
Of the company were being matured, and /
that these stocks were TO be placed in 4
the owners pockets.
This last story. of course. is one that /
has been constantly heard in Wall street /
Tor months back; and il is by no means !
impossible that such d scheme may be
carried out at some future time What /
throws doubt, however, upon the proba-
biiity of operations like this at present is I
that the advance in the Union Pacific !
shares has thus far been wholly confined +
10 the cCmpany's common stock. II a /
new holding company of the sort de-
scribed is to be formed its shares must
necessarily be awarded to the holders of Z
Union Pacific preferred stock in the same
proportion as to owners of the company
common st0. k; and obviously the rights
on the preferred shares would be much
greater than on the common. This is
matter concerning which 40 little con-
fusion Of sentiment exists in the financial
district
Preferred Can Participate.
The idea prevails IN many quarters that
Union Pacific preferred stock as limited
10 the receipt Of dividends al the rate of
4 per cent. has no further privileges OF /
ownership in the company's property; but
the idea is of course absurd. Union
Pacific preferred stock is no less a part
OF the capital stock than is the common
stock. and the company could not dlvest
itself Of its assets without giving the pre-
ferred stock its due share in the proceeds /
thereof.
The stock market was decidedly helped
to-day by the breaking OF the drought over
the western and southwestern section Of
the winter wheat belt News concerning
this was somewhat -Tneager, but il was /
stu evident that there had been a con
siderable amount of rainfall in places
where moisture was greatly needed, and
the event produced a sharp decline in the !
price Of wheat on the produce exchanges.
wall street has at no time taken the /,
recent crop scare very seriously. well un-
OeFStanoing that the season is not so ad-
Fanced that any injury 90 the winter
wheat from drought thus far could not
be repaired by favorable weather later on
There were no developments to-day IN
either the money sterling exchange, or ,
the foreign security markets, that were Of
any erect upon security valuations here
Sterling was perhaps a little hrmer. and
money rates here We're at least no higher
funds being available for five and six
months at AZ per cent, with indications
that firms in good credit could obtain +
lower rates by a serious asking therefor.
OF over S6O0a.6o0 new gold offered iii D
London to-day the Bank Of England OBJ
tanned the greater share. the Bank Of
France however, by keen bidding. secur-
ing portion of the amount. All this
naturally tended toward further ease in
the financial situation in London but.
nevertheless. cOnsOls declined and the in
vestment market there was heavy Rea-
son for this was said to be the imminence
OF large new financial borrowing.
An issue Of Irish land stock is. it is said
expected. and in general a bringing. out Of
government and other financial plans is
locked for which tends 10 depress. prices
OF high-grade securities in the English
market