The Washington herald., 1908-03-04
WALL STREET NOTES
Rise in Prices Follow Open
ing of the Market.
SOON SUCCEEDS
of Hepburn Bill to Tax
Stock Transfers Causes Concern
Among Traders-BOnaparte Denies
He VIII Seek 10 Restrain Payment
of Southern Pacific Dividend.

New York, March Sit sounded like old
times. the way customers Of large Offices
called off the quotations from the tickers
in the forenoon to-day. At times they
shouted as they had not shouted before
in many day. and no one familiar with
the ways OF broker Offices could be un-
aware OF what that meant. Any one Of
the boys employed to record the quota
tlons on the blackboard. II questioned on
the subject, would have promptly re-
piled:
1T means rising prices. sure
And so it did, and SO II always does.
1t would be idle to deny that at least
portion OF Wall street felt concerned over
the introduction OF the Hepburn bill for
the imposition OF tax OF u OF per cent
on all transfers OF stock for with all
the means OF doing business at hand.
anything that would tend to drive busi-
ness away was not likely to be welcomed.
New York's loss would be London's gain.
When at about the end OF the first
hour announcement was made OF At
torney General Bonaparte's denial OF the
the payment OF dividends by Southern
Pacific to Union Pacific. the latter stock
became very strong. and the whole mar
ket advanced with Il. For the first time
the commission houses obtained orders
in a fair quantity from their customers,
but in little while the market slackened
its pace and public interest fell away So
did prices. Conversation. that during the
first hour dwelt largely on the signs of
Improvement in general business condi-
tions. turned in the direction Of the meas
ures aimed at curtailing Wall streets
activities, and that meant the end OF the
good feeling.
Il do not care very much" said a we'll
known broker. IF the government closes
up every stock exchange In the country
What I am concerned about is the posi-
ton OF the banks. know that the foun-
dation Of our banking system rests on
stOck-exchange collateral. and unless
stable market for this can be maintained
there will be trouble. I do not believe
Mr.. Roosevelt or Mr.. Hepburn under
stands the situation, but they should
have consulted somebody who did before
such a bill as that which bears The mama
OF the latter was drafted. The financial
fabric should not be subjected 10 severe
shocks so soon after the panic Of last
fall"
The traders had a reason for the ad-
vance In National Lead besides what had
been heard on the previous day when the
relation of price TO dividend furnished the
sole theme OF the ouH arguments. The
new story dealt with the actual value OF
the property, asserting that the book
valuation of the stock was $50 share.
The price rose 10 near 80. and IL was ru-
mored that at the even figure there were
bear stop orders In considerable quantity.
but II so those were not reached. and. in
deed. the action Of the stock was such as
TO make many Of the traders doubt II
there was any substantial basis for the
story. These said that from the way the
stock acted II looked as II II were accu-
mutation rather than covering OF a short
interest that caused the rise
United States Steel advanced slightly
beyond the high level previously estab-
lished on this movement, but not far
enough 10 force execution OF the stop or
ders said TO exist in the neighborhood OF
80. When the general market was strong
this stock was among the strongest.
When the reaction came Steel was amonA
the issues that offered the most sturdy
resistance to pressure.
The old bear crowd who resumed opera
tions did not spare Steel. but it withstood
their attacks very well-relatively better.
some brokers commented. than either
Union Pacific or Reading, but came In for
the same sort Of attention.
The announcement that the Great
Northern had increased IT'S rail order, al
though the new tonnage was placed with
the Independent concerns had a good ef-
feet on sentiment as indicative of the i'm
provement IN the trade outlook