Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-03
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, May 2.-Notwithstanding
the irregularity of the London market for
American railway shares this morning. 1t
was predicted that the market here for
the leading stocks would continue to ad-
vance during the two hours of business
today. During the greater part Of this
week most of the professional operators
were inclined to take the bear side. IL
was admitted this morning. however. that
there was a scarcity of stocks when those
who had operated on the short side de-
| cided to close out their commitments. 1t
was also admitted that not for some days
has 1t been possible to discover that any
individual. institution or group of inter-
ests was endeavoring to nQuidate stocks
carried over from the panic of last fall.
In fact, It is conceded even by those
who have been most pessimistic of late
that. the market is absolutely devoid OF
pressure from any source. In view OF the
existence of these conditions it was realized
yesterday by the professional element that
the natural trend of the market was up
ward. While present conditions in bust
ness and in the railroad world continue
very unsatisfactory, the shyewdest OBJ
servers think that the market will be car
ried at least several points higher on the
expectation of decidedly better times
little later on.
X
An authority on the physical condition
and earning power of the St Paul road
said this morning that while he does not
pretend to know the chief cause of yes
terdays sharp advance in the common
ha ;o that
when the Pacific coast extension is in full
operation the earnings of the entire sys-
tenn will increase to a greater extent than
most students Of the property have been
willing to predict. He said also that in
considering the position of the st. Paul
property it should not be forgotten for a
moment that the extension to the Pac1nc
coast. which Is so important in the further
development of the system, is being con-
structed at time when the management
is able to get the largest concessions. both
as to labor and the prices of materials,
| that it has been possible to get for sew
eral years.
He added that not only is it possible to
effect a great saving in the cost of mate
rails. but because of the abundant supply
Of labor a considerably better class of
! work is being done all along the line than
could have been done year ago.
\
Some shrewd leaders Of the stock market
are confident that outside of the buying
to close out short contracts the most
important factor in the market recently
was the buying for the account of the
Hartman interests. These observers are
strongly inclined to believe that the Har-
riman people will follow pretty much the
same program that they have used at
other times when important financing
was pending. They believe that Union
n4ff3 vrvsy1I 70 affl
Their, but that shortly before the date on
which it is proposed to issue the new
bonds the stock will again become active
and be carried to a higher point than the
best price recorded this week.
X
Spectators yesterday in discussing
the market business and railroad traffic
were inclined to give considerable at
tention to the severely cold weather re-
ported in late dispatches. A Texas railroad
official who recently returned from a
tour of inspection in that state said that
within a short time the moving of fruit
would be a factor in the earnings of the
Texas roads. 1t is realized that II fruit
has been severely damaged within the
last two days. q highly profitable class
Of traffic, which had been counted upon
to help railroad earnings before the
movement Of grain begins, will have been
materially reduced.
Il
Railroad managers are not disposed to
be as optimistic regarding the iron and
steel trade as are some important inter-
ests in the United States Steel Corpora
ton, whose statements regarding present
conditions and forecasts of the future
have been quoted in recent days.
r,l; a.
he regards present prices for stocks as
too high on the whole. he thinks that it
would be extremely dangerous to operate
extensively on the short side. and that
he looks for prices to be carried still
higher little later on.
Some spectators believe the upward
movement in the stock market is over
for the time being and that the market
will react moderately. They maintain
that the advance has been due chiefly to
the forced covering Of shorts and thatlth
new buying has been on a small scale
They assert also that, according to their
information. the outstanding short con-
tracts are not sufficiently large to be a
potent factor in the market They fur
Their say, inasmuch as the Pennsylvania
bonds and the Interborough notes have
been successfully fioated. there is no oc-
casion for the bankers interested in these
undertakings to stimulate the speculative
market further at this time.
Finally, men of this opinion claim that
there is nothing in present conditions to
warrant higher prices for stocks. and
that in their judgment favorable develop
ments for several months to come have
been pretty fully discounted in. present
prices.
Important interests say that while the
foregoing may be largely true, they are
inclined to believe that after a further
temporary reaction prices will be carried
still higher. They say that although it
would seem safe to assume that short
contracts have been pretty generally
closed out, they know for fact that
important houses in the street are every
day loaning large amounts of the active
stocks. This naturally leads them to be-
lieve that the short interest prior to the
beginning of the upward movement was
much larger than was realized, and that
even with the covering which has taken
place there still remains a considerable
amount Of short stock uncovered.