The Washington herald., 1908-08-31
New York. Aug. %

New York, Aug 30
Of occurrences or developments tend /
ing TO raise the level Of values there was
an almost complete absence during the
week. but about the middle Of the period
the quotations for securities on the New
York Stock Exchange, which do not al
ways correspond closely 10 intrinsic val
ues. moved upward 10 an extent greater
than in almost any equal period OF time
since the beginning Of the present year
This movement was based on the op-
portunity which large speculative inter
ests found IN the existence Of a short IN
terest. which they proceeded TO annihi-
late, apparently in total disregard OF what
might be the ultimate outcome Of the
elimination OF this important factor. The
opening OF the week gave little indica-
tion Of the speculative excuses which
were TO be INDUCED in before the close.
for the Monday session, considering the
wild scenes Of the preceding Saturday.
was much quieter than might have been
expected. and tended TO encourage the
hope, afterward rudeIy destroyed, that
the market would be allowed TO behave
in an orderly fashion. so that the public
Z
pleasant occurrences at a time when II
is 10 be feared the consequences Of ia
grant manipulation may be much greater
In stirring Up agitation against Wall
street and It's business. and in the enact
ment Of laws prejudicial 10 both
Tuesdays Failure.
I On Tuesday announcement was made of
I the failure Of the firm responsible for the
wild operations. which made the session
/ OF Saturday. August 2. one long 70 be
/ remembered in the history Of Wall street.
and notwithstanding that a great num-
[ ber OF firms 10 whom the embarrassed
( house had failed TO make deliveries Of
I stocks found II necessary for their own
f protection 10 buy in corresponding
/ amount. the market again acted in an or
derly way and the feeling was further
I encouraged that the last had been seen
l Of a disagreeable incident and that trad
I ing would proceed in such manner as 70
entitle Wall street 20 COmmendatl0n for
! its conservatism and self-resJraint- But
I on the following day there were evi-
/ dences that this was not 10 be. these
I multiplying until on Thursday a violent
I upbiCGing Of a number Of stocks, notably
I the so-called Hartman issues and Read
I no quarter. testified that there were still
I spectators VINO could not restrain their
. gambling instincts even 20 avert the
Z deluEe- The same course was followed
I during the remainder Of the week. but
I with less notable results. because the short
3 interest upon which the operations were
{ based became toward the close very much
reduced in volume and. therefore. much
{ less effective as "a means Of forcing the
. { -r~-r i~rra--a rf The 1TFaura
Three stocks Lead.
Z In Thursdays market considerably
more than half Of the total transactions.
amounting 10 well in excess Of 81. 600
shares. was furnished by Union Pac.ac,
Southern Pacific. and Reading. the two
nrst named contributing more than one
third Of the days volume OF business.
These two stocks. Southern Pacific II
the earlier part Of the week and Union
4 Pacific later. were the UndoubteI lead
ers OF the upward movement. and were
subjected 10 the most aggressive mauip-
uIatiou apparently by the same rich capi-
talists who on other Occas.5as during
the year. in total disregard OF con5i-
tions in the business world. conductsi Fl
large operations IN The market le7geIy
through the control Of an almost un-
limited supply of funds. and the weight
which their prominence in the --o-ld
Of finance gave TO their predictions Of
an early return Of railroad earnings 10
a normal level. What grea. 1inele leace
there IS between the operations OF these
| individuals and the more clumsy At
tempt on the part Of the brokers no
were forced TO announce their saspea-
HgFHH 4.=r~a
except that in the one case he pos
session OF almost unlimited resources 70
carry on the operation for long period
may result in a successful outcome IL
the end. whereas in the othe- the lack
Z OF such resources brought a -, ,-5y fail
ure- Both operations were highly repre-
hensible, and it can hardly oa doubted
that sooner or later Wall street on The
! whole must pay the penalty.
May Be Car Shortage.
Whether those rich operators displayed
any extraordinary foresight in accumu-
: lating enormous lines Of stocks in the
r last few months remains 10 be seen. and
! it IS worth while recalling that one OF
them whose opinion has been allowed tc
carry great weight was credited IN the
spring with q confident prediction that
the business Of the railroads would b,
normal by midsummer, and that by Oc-
tober the roads would again be contend
, ing with a serious car shortage. Mid.
- summer has come and gone. hut railroad
5 business Is just about as far from norma
D as it was when the prediction was ut
! tered. and except in the sense that
I great number Of freight cars have beer
- allowed 10 get into q condition in which
: they are no longer fit for service. through
( the necessity on the part OF many road
! Of Skimping maintenance, IL is entirely
r improbable that the volume OF bushes.
e in the coming fall viii overtax the facilf
S ties Of the transportation companies
May Repeat Error.
II those who made the mistake Of ex
? Ipecting a return to normal business con
. ditions before this time are now accumu
q lating stocks in the belief that a sub
S stantial turn for the better is likely L
e occur in the near future they may msrel,
be repeating their error. but. meanwhile
their possession Of enormous lines Of Sc
I curities and the great ease in mone-
. which enables them 10 carry their line
S at comparatively little cost for interest
1 leave the street unusually bare OF stocks
| As always occurs following a bear failur
T there have been during the week a decide
7 disincllnation on the part Of brokerag
$ ( houses to lend stocks 10 those who wer
Q short and needed 10 borrow for the pur
o / pose Of making deliveries. and decide
4 unwiIlingness on the part Of speculator
$ trading for their own account or OF com
e mission houses executing orders for Gus