The sun., 1908-03-08
GOSSIP or WALL STREET.

Inc traders were A8 lnucn surpfiAeu nW the
sudden advance in the market yesterday a.
the general public we're by the sudden change
IN tho weather. and were irritated by n In far
greater degree than others were pleased hv
the rise In temperature few OF them
thought there Was q connection between the
two ocCurrences-for II Ia an old precept or
the Street that stocks should never be- sold
while sap ia TisinR-and Chey wondered
whether the spring movement had not caught
them unawares. One OF their number who
lost no time about covering his shorts said
on completing this operation that II single
springlke day sent prices up two or three
points he did not care to take the risk Of
encOuntering several days OF the real thing.
The theory OF the rise most commonly
accepted was that IL resulted from the COW
eTinR OF shorts. and hardly anywhere was II
cOntended that this covering extended be-
yOnd the retirement OF contracts by the room
traders. The outside shorts were not heard
from to any material extent. They were
scattered all over the country, and few Of
them had any means of knowing what waS
happening In the market OF how lOsses were
piling up against them. Those whose cover
ing was made the means Of accomplishing
the advance were professionals in
the ams-and the less experienced operators
Of all degrees down to the mere novices were
getting left in a position that to say the least
no longer looked comfortable.
An experienced operator said at the close
Il am trying to recall instances in which a
big short interest without leadership sue
oeeded in holding its position. but can re-
member very few. As a rule a stampede has
generally resulted from such a situst lon. but
as every rule has its exceptions would not
venture 70 predict what may happen In this
instance.
A rise in prices such as occurred esterday
naturally invited inquiry into what cOnst-
tutes an oversold condition of the market
and opinions on the subject we're expressed
that differed greatly from those Entertained
a few weeks ago, when practically the whole
trading element thought that a sure road to
wealth was to be found by going short Of
everything. As the matter is viewed at pres
ent an overwhelmed short interest need not
necessarily approximate the amount Of stock
outstanding and may represent only small
proportion Of il. In St Paul. for instance. il
s said that $1,000 shares would be liberal
estimate OF the amount Of the stock afiORt in
Wall Street. If the short interest is two or
three times as large as that the bears may
find II a dficut matter to get what they want
for covering. The situation is said to he
much the same in many other prominent
stocks. for the buying OF small lots, almost
continually in evidence during the last year,
has cleaned up the floating supply and placed
them in the hands of permanent investors.
Up 10 about II O'Clock Union Pacific anil
Pennsylvania continued their neck and neck
race, but when the l18 mark was reached the
latter became winded and failed any longer
to keep up the pace. IL was very interest
ing race while il lasted. the two stocks NOV
ing up side by side. eighth by eighth, but
with the transactions in Union Pacific about
four times as great as those in PennsyfVanis.
IL was The heavier buying OF the former stock
hat ia the
whether this buying represented merely ths
retirement OF contracts for the fall or included
accumulation by large Interests was q matter
about which opinions differed widely. The
difference between the volume OF business in
the two stocks was even greater than ap-
peared from the act ual records OF trans
actions. for as Pennsylvania's par value 10
only $50 the actual money represented by
the transactions In IL was only about one
eighth OF that in Union Pacific.
BY getting away from Pennsylvania Union
Pacific created the impression that the SUI
misses about a reduction Of its dividend to
: per cent. had no very solid foundation. and
in various quarters It was said that II this
stock should advance to such an extent a. to
make il appear that the presnt 10 per cent
rate could be maintained the whole market
would be freed from one Of the most depress-
ing influences 20 which it has for several
weeks past been subjected.
Even the bears we're forced to admit that
the reduction in the German bank rate and
the announcement. OF the plan to reopen the
Knckerbocker Trust made q very strong
news combination favorable TO the market.
Against It the bears had the probability OF
another special message from the President.
but some brokers thought this might prove
a boomerang. and few Of them seemed to be
impressed With it as a market factor.
broker who was quite active on the bull side
said If Mr. Roosevelt becomes too dicts-
tOrial he may find himself. like a certain
strenuous parsonage Of ancient Rome. with
a Senate at his heels.
Rumor said that within the last week bull
pool had been organized at Palm Beach 90
operate in a number of leading stocks. and
there was a story to the effect that the rail-
roads had reached an agreement to allow
wages to stand st present but TO advance
freight rates TO an extent that would COM
pensate them for their unusually high out
laws.