The sun., 1908-05-10
GOSSIP OF WALL STREET.

Wien 81 raiI. said 10 be practically cor
ncrcd, rose above its previous record for the
year az the end OF tho first hour Yesterday a
lew bear stop orders were uncovered, and the
! execution Of these caused spurt that was
one OF the llyellest incidents In a lively ses-
sion, Except for the few stop orders. how
ever, nothing noteworthy was found In the
market for the stock, and as for those sup
posed to be endeayorinR TO run corner In
this issue the Street, while crediting them
with good intentions. seemed 10 think that
Their ehort was doomed to failure,
lpion Pacific made new high record for
the present movement by advancing frac-
ton beyond tho high Of the preceding day,
but there seemed 10 be profit taking that at
times gave the stock rather heavy tone IA
compared with ~, Paul, Chesapeake and Ohio
and some Of the other active issues Il was
again rumorcd that the new bond issue had
been underwritten, with this addition TO the
original stcry-that the price to the railroad
would he ~ good as that realized by Penn.
syyania In It's sale Of bonds few weeks ago
That no change would be made IN the divi-
dent rate Nt the forthcoming meeting Of d.
rcctors was everywhere anticipated
A shrewd floor trader who has cloaaly
watched che operations In Union Pacific gives
his impressions m follows: There In still A
considerable shCrt interest In Union and in
some OF the other active market leaders
those who are conducting the hull operations
Know this and are utilizing the knowledge to
their advantage They know Just where the
short interest Ia and What are It's proportions
hey watch II keCnly, and the moment they
see an Effort At covering they get busy and
take the market away from these who are
endeaHorlnR 10 cover, That has occurred
time and again. and the shorts are kept on
the anxious seat. What will happen after
the shorts are all driven In ! do not know,
and at the moment am not very much con-
corned about H. | am trying to figure out
what will happen within the next forty-eight
hours or so, for a change Of some kind must
be near AZ hand--if not a very rapid advance,
then a sharp decline"
Assuming that the short interest has made
repeated efforts TO cover then il must have
reduced its proportions while the bull inter
est has almost certainly Let 60 part Of its
lines In this event the relative proportion
OF the borrowing demand to the floating
supply should be smaller than II was week
ago The principal difficulty Of the shorts,
however lies IN the disinclination Of the hold
ers OF stocks to lend, either because they are
interested In the Success Of the squeezing
operations or because that they are appre.
hensiye Of further bear failures
Iardy recognition by the manpulatve in.
terest- ot the fact that Erie is hard coaler
resulted IN movement in that stock which
put the price above 20 for the first time since
the panic. The preferred stocks we're af-
tected equally with the common and the
market closed with the bears In full retreat
The short interest had not been a matter OF
recent creation II assumed large proper
tons at the time Of the panic on the unfayor-
able character OF the roads earnings and
was alterward increased when the Street
became apprehensive that the discount notes
maturing on April \ would not be met at
maturity
A check was administered 10 the rise In
Great Northern. which was cne Of the most
promising movements in the first hour, by
the publication Of the report Of gross earnings
for the month Of April showing a decrease
as compared with last year OF 81 4s6, t2? or
slightly more than 70 per cent When Mr.
Hill some weeks ago said he could not see
any signs Of the Improvement reported by
other railroad men he talked by the card.
although some Of the knowing ones in Wall
Street at the time questioned whether there
was not method in his pesslmism ...
In more than one sense Chesapeake and
Ohio made record hardly euualled by any
other stock in the market. II not only made
new high record for the present calendar
year but sold up to a higher price than at
any previous time in the last twelve months
Nor WAS this all, for at he high price II easi h
established record for selling at higher
level. In proportion TO the dividend paid than
any other railroad issue. Furthermore, 1t
nearly doubled it, price as compared with
the lowest quotation recorded last November
and nowhere was any definite reason given
for the advance, though the general opinion
was that the rise was the result OF manipu-
lation designed to facilitate distribution to
the public Of a large block Of stock still Ie-
naming in the hands Of those who took over
the Pennsylvania's holdings a couple Of years
ago. This manipulation was helped by the
covering Of shorts put out last winter when
the soft coal trade was In a condition Of almost
complete decentralization. Soft coal consti-
tutes about 81 per cent. Of Chesapeake and
Ohios busnesI
Norfolk and Western another soft coaler
sympathi2ed With the strength Of Chesa-
peake and Ohio, but was much less active
and not near so aggressiyey handled
On a single transaction OF 100 shares Lack
awanna recovered the 20 points II had lost on
the sale Of an equal amount after selling at
the highest point OF the year on Friday,
Auothar adyaUrsy of pO nOinfs would put tha
stock up to It's highest record. though OF
course there are many in the Street who
think that such a movement would be Of
doubtful utility in advancing the general,
market
RAILROAD EARNINGS.
Great Northern: