The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-04-26
RAILROADS MAKE
ACTIVE MARKET
Pennsylvania Bond Issue
Starts General RiSe in
Stocks.
Eager Bidding Ends in a
Strong Bull Move
ment.

MAJ MT ANV ud9b anu AAAltE DuSA4AN1e'
hours OF the fourth TO get under way
and thereafter II was decidedly active
and strong. At the immediate opening
there was considerable uncertainty as
TO the future of the market. as the in
fuences were nearly all such as cause
Conservatism and TO restrict operations.
The bears realized that money was
too easy To permit OF their getting away
with any grand stand plays on their
side OF the market; not only too easy
financially, but they Furthermore rec
ognized the fact that the big financial
interests Of New York city. recouped
and rehabilitated. held the stocks and
that the public was out OF the market
so far as margined stock is concerned,
and that no cunning that they could
do would land any stock or induce a fe-
yer of liquidation.
The situation was boxed up air tight
and with nothing for the financial people
10 do but TO initiate the market and make
a spot where they might distribute a
few hundreds Of thousands Of shares.
The emergency worked out along these
lines Monday was a day OF deliberate
neglect. Tuesday was slow. but COM
paratively steady. Wednesday opened
discouragingly and something happened.
The. something in this case was the
marketing OF 100000 bonds by the
Pennsylvania Railroad Company, al
though subscriptions will not be opened
nor aIlotments made until Monday.
Active Bull Market.
Around this big bond Issue centered the
movement for higher prives. for renewed
activity. and for an active bull market.
Pennsylvania was the magic word. \
syndicate was formed 10 take this big
bond issue and it is understood that ten
times the issue was subscribed.
Tho large financial interests Of New
York city looked after the success OF
the loan, financing It easily This was
looked upon by the Street as an evil
dence of confidence in the stability OF
financial affairs. and. with a hurrah, the
buying orders we're sent into the stock
market.
Professional traders trailed along. and
from every brokers' office the roomers
and sitters followed the tip and bought
stocks, frequently getting in and out
with a profit. half a dozen times during
the session.
Pennsylvania had been financed with
out trouble. The Erie troubles were
forgotten. Norfolk and Western and
Chesapeake and Ohio had been financed
for two or three years, and il was
expected that. in the glow OF Pennsyl-
vania's success, IL would be easy 10
finance all the funds Union Pacific
might want and other roads as well.
Shift to Industrials.
From out OF the West came the re-
port of an understanding between
Western roads to announce in the i'm
mediate future an advance of 10 per
cent in freight rates. Everyone ex-
pected that the financing problems. in
their solution. would pave the way for
rehabilitation OF railroads in the.r
physical properties. so that there was
ga quick shifting to industrials as well
as to rails. and the market broadened
out in big trading. strengthened way.
that encouraged the scalpers and dis
Outraged the bears into quietness or
speedy covering of shorts. The bears
admitted that the absence of public in
terest robbed them Of any show Of
making a good fight against the rise.
Five millions Of gold were sent to
Paris. Railroad earnings were woefully
bad. bank clearinss were much less
than week ago. and the political stu
alton just as badly mixed up as II was
thirty days agO-perhaps a little more
so. The statement by Dun & Co. on
railroad earnings. showed that the loss
month was 16.9 per cent less than last
year for the corresponding week. This
IS the heaviest loss for the year and
Il does not promise well, even II the
crops should be excellent
Commercial failures for April were
burdened with liabilities of so. 5Ol. 734
and sos in number. as compared with
22S last year. Wherever there {s re-
III hn ind g-T
depression Is evidenced in other di-
Tecuons, these offsettinE each other.
Further Rise Expected.
All the news and influence except
money and the fact that the control
lies with the big railroad and financial
interests of New York are against a
good, lively stock market-and vet that
IS just the kind Of trading we have had
since Wednesday afternoon I'D 10 the
close of business today.
prices may advance a few Doipts
more. but we have no hesitancv IN de-
claring that the market is dangerous -
says one authority The advance is
unwarranted. based on the outlook
which IS very discourging Conditions
may change, but they are bad enough
now. and il is doubtful II the boom mar
ket will bring the public in as buyers
tBuyerS viii not do anything so long
as the Presidential uncertainty exists .
These are expressed views of conserva-
tive brokers.
Union Pacific. Reading. St. Paul
Northern Pacific. and Reading have
been the active group. These stocks ad-
vanCed 3Ad4 points. and ALL with the
exception Of ST. Paul. reacted fraction
ally in the close. St. Paul, a Rookie,
teller stock, came very strong this morn
ing passing other leaders and taking
commanding lead. advancing 10 123Ss. a
net gain for the week of 81 points
Great Northern advanced 3Ss. AtchisOn
2s4. Copper 2Ss. Locomotive to Az
Smelter rs Baltimore and Ohio l. Ca
madam Pacific I. Delaware and Hudson
2 and the list with but comparatively
Few exceptions from l 10 points. The
bond market also showed good gains all
along the line
Bank Statement Good.
The bank statement was an excellent
one There were some recessions from
the high in the short session Saturday
morning. but on the whole the final ac-
ton of the market was satisfactory to
the bulls.
The chances for an advance next week
Col no +hen-r- hainr II Kill