The sun., 1908-12-20
GOssIP or WALL srREEr. J.

-
and the fact that the bonds were relatively
stronger than the stocks led to all sorts OF
rumors OF something doing" and compelled
even those who had been sceptcal before
TO question whether there mi ght not really
be a good reason underlying the rise In all
the securities Of this road. Attention was
called to the fact that In the last month
considerable amount of the Wabash Is
debentures was exchanged under the terms
onered couple Of years ago, significance
being attached to the willingness of holders
who at first refused to accept the plan TO
make the exchange now on the ground
that the change of front was brought about
by an important improvement in the sta tus
OF the new bonds and the stocks through the
establishment OF new relationships for the
property.
The tavoHte theory to account for the
strength of the Wabash issues was that the
road would be bought by the Lackawanna.
One rumor had IL that an option had been
taken on a sufficient amount of the stocks to
carry control. but beyond fixing the option
price for the preferred at 55 this story was
extremely vague and attracted little atten-
ton. That control Of Wabash was some
time ago offered to Lackawanna and that
this road refused to become the purchaser
10 ldCt' vi tOuISo IL IL entlTely pObelDl0
that some of those who talk Of a merger
OF the two systems have heard only OF the
offer and know nothing OF the rejection Of
1t. and are deceiving themselves and others
with their anticipations OF an early an
nouncement to the effect that q deal has
been arranged. One thing, however, is
certain. Control Of Wabash is now largely
in new and strong hands. Should it remain
there important changes In tho mana ge-
ment and policy Of the road may be expected.
As an operating proposition Wabash has
great possibilities.
The announcement in THE Sun OF the
sa le OF the Colorado and Southern tothe Bur-
lington naturally had a good effect on the
securities OF the former road. aithou eh many
brokers were inclined to take the view that
the good news had been already fairly
well discounted in the market. From the
investment standpoint this was considered
narrow view. Usually when q deal of
that kind is announced some parties who
knew Of the progress OF the ne gotiations
and bought the stocks in anticipation OF
a successful contamination proceed to take
their profits on the publication of the good
news. and this as a rule causes a temporary
reaction. But when, as In the present
instance. something OF real constructive
value has occurred the advance is likely
to be resumed after the profit taking on
speculative holdings has been completed.
the progress being. however. slower than
before and the dealings ON a very much
smaller scale because the buying is wholly
Of the investment order, since the element
of specula tion no longer exists.
Up to about half an hour Of the close the
bulls had lovely time and the broker who
advised some of his fellow traders on the
floor TO look out for a sharp break in Union
Pacific was laughed at and with good ma
tured raillery told to cheer up and climb
into the band wagon. But in the last half
hour il was different. Something dropped
and dropped heavily. 1t Twas the price of
stocks. and as the broker who had pre-
viousy given the warning said. Union
Pacific came down 30 hard that it nearly
made a hole in the floor.
At the close the Colorado Southern issues
were among the few stocks that showed ad-
vances on the day. The common closed at
an advance of a point, the first preferred
with a gain of more than points and the
second preferred 81 points above Friday Is
closing level
1t was in the p urchase Of the Colorado
Southern that those who conducted the
raid on the market in the last half hour
found an excuse for their operations. The
attack was directed principally against the
Hartman issues and these were the heaviest
sufferers because. according to the pro-
fessional operators who turned the deal to
bear account. the purchase Of a route to the
Gulf constituted an invasion OF Hartman
territory and q renewal of the warfare be-
tween the Hill and Hartman interests. incl
dents of which In the past produced very
consequences In Wall Street.
As intimations OF this sort were not con-
sidered seriously by the most sober minded
traders. other stories had to be served UP.
A fruitful source Of supply was found in the
supposed attitude Of the Administration
toward the Hartman interests. and new
suits were talked Of as well as u vigorous
prosecution Of those now waiting for trial.
The selling Of Union Pacific was heavy and
the price fell to 4 lower level than at any
other time since the dividend came of. the
lowest quotations being made just at the
close. so that there was no way Of telling
whether the decline had run its full course
before the end of the session.
The excitement seemed to have gone out
of American Smelling and Refining. for
although the stock was the most active on
the list with the exception Of Union Pacific
1t moved with the general market. rising
In the first hour and reacting near the close.
with no net change In its price when busi-
ness ended Some shrewd operators we're
inclined to take the view that the dealings in
nearly 200 200 shares on Friday marked the
end of the bear operations in the stock. at
least for the present,
haoyt ia.
committed to the short side it is TO be ex-
pected that a tendency toward advance In
the market will meet with aggressive re-
sistance Some Of those now short are
known as desperate fighters, but the feeling
is getting abroad that they will have need
Of all their courage and daring in their pres
ent situation,
MISCELLANEOUS MARKETS.
Coffee Firmer-Prevtsion Higher-SmaIl