The Washington times., 1908-06-07
Boom Caused by ASsur-
ance of Much Easy
Money.
u. P. BOND ISSUE
CHECKS ADVANCE
Standard Oil and Hartman Come
to Rescue-Closing Is
Strong.


The passage Of the Vreeland-AIdrich
currency measure made glad the hearts
of ali in any way interested in securi-
ties. II was as welcome as the flowers
that bloom in the spTing," Ne matter
what il might eventually lead to it
was an assurance that the country
would not be stopped in its recovery by
any financial shortage; that the insid-
ers who were standing back OF the
market would be caught short in
financial crisis; that money would be
cheap. not only i'm the immediate fu-
ture, but that when IL came to moving
the crops. there would be no stringency
Coed News to Hartman.
It was good news TO Hartman. The
Standard OH Company accepted the
passage of the measure with thanks.
for these two interests were under the
stock market and welcomed anything
that would induce the public TO come
into the market as a buyer
Then, too. there was a report that
Union Pacific would not need TO issue
any bonds and that the liquidation OF
thousands OF shares of stocks in other
railroad companies had fixed the Union
Pacific in fine shape
Money was down TO one-haIf of one
per cent-it was too easy for any use
The stock market started with
grand hurrah. The advances were
rapid and fractions were frequently
ignored in The rapidity OF the upward
movement The leaders OF the market
were Union Pacific. Reading. St Paul
Northern Pacific, and Great Northern
Atlantic Coast Line, Baltimore and
Ohio, Chesapeake and Ohio, and the
ErIes were good seconds, and the in
dustrials caught the spirit of advance
and moved up, although much less
slowly than did the rails.
Tuesday Another Good Day.
Tuesday was another Come-ou-boys
day. The tickers recorded the rapid
rise OF stocks here and there through
out the list and the market followers
found good profits About this time,
when the markets were going along
swimmingly, was a good opportunity 10
spring the story OF d S50000000 bond
issue on the Union Pacific railroad
system Hartman sprung ii.
The master declined To give any rea-
sons for the issue. lie cid not tell way
ten millions was added to the original
provisions. nor why there was need for
a bond issue after the sale of thousands
of shares OF the Northern Pacific ana
Great Northern shares from the Union
Pacific treasury. He wouldn't tell any
thing
About this time there were rumors Of
price-cuttIug in steel and iron prod
ucJs. The two causes combined TO make
IL imminent 10 traders, spectators,
and investors that 1t was, perhaps, a
good time 10 get out of the market, and
this was very generally accomplished
on Wednesday and Thursday, with a
very radical decline in values. although
part OF the advance was still main
tanned The bear following took
chances with a little shorting Of the
market. and turned a profit on this ma
neuver.
Market Drops On Thursday.
On Thursday the market was very
soft. dropping from one to TWO points.
and without much resiliency, hoIdir g
weak right up to the close. Missouri
Pacific slumpsd badly on reported
heavy decrease in earnings, and the
proht-Jaking was so general that the
list melted with but little raIIying
power
The fact that the RothschiIds had not
been consulted, or rather that they had
not been mentioned in the financing OF
the fifty millions of Union Pacific bonds
was the cause of report that they had
refused 10 take a hand out Of disfavor
for Hartman
Missouri Pacific showed up with earn
ings that were very poor, and the stock
sIumped badly. This was the condition
Thursday night, inside prices prevail
ing. and the whole market being ex~
ceptionally soft, though still holding
part Of the earlier gain on the leading
stocks.
Missouri Pacific Slumps.
Fridays developments brought about
a further decline on Missouri Pacific.
The directors passed the dividend even
while claiming that it might have been
paid. but they deemed it better to save
the currency for some other purpose.
The market acted as 10 it would break
again. There was nothing to prevent
it. nothing except the unexpected. ami
that happened. The b0lsterers. Harri-
man and Standard Oil started in 10
hold the market. They realized that
any further LIQUIDATION might take the
lfuullI bAl VI TIC maj hCA AOL SDuu ana
all until after the election and they
d!d not want it 30 go out. They had
distributed thousands and tens of
thousands of shares of stock I'm diff
ferert companies. stock purchased at
20 to so points lower but they have
much stock yet to be circulated among
the dear public. and therefore they
stood under the market and advanced
prices moderately, this gain stopping
the tendency to sell quickly
Market Strengthened Yesterday.
Today the market was again strong.
There were gains or 3 TO Pa points in
nearly all the important stocks on the
list. industTisls as well as rails sharing
in the advance.
But for all the strength the public
would lot follow. The brokers' Offices
were well filed with traders more or
less professional and mi-professIonal, |
bat they were not tempted. They rec
ogniZed the manipulation. they didn't |
ike the lay OF the land, the passing Of |