The Washington herald., 1908-03-06
WALL STREET NOTES
Oil Business as Barometer
Shows improvement
RUMOR MILL IS KEPT BUSY
Union Pacific Stories to Suit Every
Taste Can BE Found in the Street.
Four Per Cent CcnvertibIes show
weakness and Others Bearish In
sympathy-Stagna on Change.

New York, March 5.-The business of
the lubricating oil department OF the
Standard oil Company is a fair barom-
eter of the general business of the coun-
try. Just al present it shows improve
ment. The railways are using more OF
the commodity. but the principal increase
in demand comes from the industrial coa-
Germs. The resumption of mining opera
tions at Butte has. Of course. been re-
fected. but does not by any means ac-
count for the bulk Of the gain
With the exception OF the Pacific Coast,
the whole country is represented in the
heavier orders This means that the ef-
fects OF the depression are passing away.
II will be some time before the change
Is reflected in the earnings of the rail-
roads as published from month TO month,
but that IL is coming the lubricating oil
department of the Standard Oil Company
can see quite plainly. To this depart
ment Of the business Of the ''oil trust, "
then. all will be willing TO wish god
speed.
The Standard Oil party used TO make
the wheels OF the stock market go around
at a lively clip years ago at times when
their company was supplying great guam
titles of oil to make the wheels of in
dustry move smoothly. A few brokers
are living in hopes that they may do it
again.
Stories about Union Pacific OF a kind
10 suit every taste can be found in the
street. In one place the talk is all about
the rich insiders who have sold out. and
in another place about the rich outsiders
who bought in. There are reports Of bor-
rowing and maturing loans, Of unsatisfac-
tory earnings, OF litigation. dividend re-
ductions, and other contingencies not a
whit more cheerful, and then I'm other
quarters assertions are made that the
company Is in no urgent need OF money
and that when the issue Of new securi-
ties is actually made ii will be backed by
the greatest banking combination that
has ever backed any issue Of American
railroad securities. But 20 neither the
favorable nor the unfavoTable reports
does the stock respond 10 any large eX-
tent. and some traders. observing this.
have recently been scalping profits in il
by buying ii for turn when il declines
point or two and selling Il short on ad-
vances Of about similar proportions.
What has probably been as influential
as anything else in keeping sentiment
bearish on Union Pacific is the weakness
in the bonds. especially the ( per cent
convertibles. In explanation Of this 1t
has been suggested that the weakness in
the convertibles is due 10 the fact that
a mortgage bond on the unmortgaged
mileage would rank ahead of them. and
that the heavlness o. the first mortgage
Is results from selling by holders who
intend TO subscribe for the new issue
which they expect TO get on pretty fav-
orable terms.
A new record OF inactivity for the pres
ent year was made by the hour between
= and > o'clock. when the volume Of
transactions was less than 1900 shares.
The previous low record for the present
period Of stagnation was about 1900.
which. however. was repeated three or
four times. Brokers were inclined 10 be-
lieve that the new low record now estab-
lished was likely to remain a record for