The Washington times., 1909-06-20
THE BULL MARKET
MEETS OPPOSITION
Evidence of Heavy Liquida-
ton Shown in Liberal
Reduction of Loans.
TAX ON EARNINGS
A SERIOUS MENACE
Situation in Steel Interesting.
Outlook Considered-Prices
Are Still High.

NEW YORK. June -O-WaD street
! shortened it's stride appreciably during
the last week and went back few
points, under stress of liquidation at
tending the catching of thousands of
stOp-Ioss orders placed by holders who
have been doubtful of the wisdom of q
rise at this time beyond the high
marks. but who have followed the lea d
ers but protected their trades with
stops And stops when caught IN
quantities are dangerous.
For the first time in weeks the New
York stock market presents a two
sided appearance. The bulls have met
opposition and rather strenuous con-
tention at that, A pant has been
reached where the bears, bruised and
courage TO fight the upturn. They
have turned many an honest dollar
| during the last few days and are keen
ror more.
Conditions Forced Halt.
Conditions have been such as 70 make
the halt in the market at this time
such as to cause seni-professiOnsi trad
ers to pause and consider the outlook.
The break as yet has been inccasider-
able, compared with the rises Of the
last two months. Perhaps one Of the
most potent influences in causing the
reaction has been the proposed tax Of
poratiOns The President is responsible
for this plan which was launched out
OF clear sky, but has yet to work its
way through Senate and House, and
no one can tell in just what shape II
will emerge. The Street has not pald
much attention to this tax business dS
yet, though the foTehanded have given
il consideration and recognize that It
will be a serious impairment on dlVl-
dend possibilities Of many companies
Net earnings are elastic-very. Also
stock is or can He made convertible.
Paris Steel Listing Considered.
Just why the United States Steel Cor
poration should want to list a bunch
Of Steel common on the Paris bourse
is something of a query, but it is in
keeping with the ideas of market leaders
20 keep the pot boiling TO have some
thing doing all of the time. A Paris
listing may make the stock much firmer,
may offer an opportunity 10 place
bunch OF II, but the shares of the steel
Corporation ought TO stand on their
own bottom, on the local market and
on merit alone. It is admitted that they
nave great merit-that the company has
been agnifcently managed since its
progress in its field. has paid for inn
mense improvements from StS earnings,
and Is able to cope with the lndepend-
ents al any kind OF a trade game cutting
OF boosting. Experts contend that with
the continued increasing use Of steel
and the facilities of the big corpora
ton, the value Of the common shares
in a comparatively few years will be
far and away above the current price
for the common stock. The position OF
l the corporation seems impregnabie. Per
! haps the Paris listing would be but a
step In a plan to broaden the market
to make the world the market for the
stock, but there is no reason why the
failure 10 list there should depreciate
9 81 H. cha &
the stock was sufficiently valuable to
warrant the recent sharp upturn from
IS to the 20 maTk-it is just as good to-
day. Business with the steel and iron
companies is excellent. There has been
a et-up in the structural demand, but
the rail inquiry and the demand for
equipment from the railroads Is begin
ming to reach large proportions The
years earnings are bound TO be big.
| This is not true OF the copper and smelt-
/ ing stOcks-they are and will probably
continue very weak, their losses for
the last few days reaching nearly 4
/ points.
Sugar the Goat.
other industrials are and will con-
/ tinue 10 do fairly well, with the excep-
/ ton of Sugar. The sweet stock is be-
/ ing liquidated freely by shareholders
/ who do not approve of the dishonest
methods OF the company and by hold
| ers who fear the result of the pending
! Government investigation of the alleged
/ violation of the antitrust law by the
/ corporation. Its stock is 81 a share off
I for the week.
/ Reading directors disappointed that
I large following that expected an in
! crease in Notwithstanding that the
stock is selling too nigh on its present
| basis. It sustained the largest decline
| in Any of the active rails as a result
/ of tie failure to increase the dividend
| breaking AZ points net.
First Hard Setback.
Last week Witnessed the first real
| hard setback the market has had for
months, the most notable rail declines
/ outside Of Reading being 2B on st.
Paul and Union Pacific. on Great
! Northern. 3Z on Union Pacific, these
/ being the net losses, although the fun
/ losses up to Thursday were more severe
| but covering by shorts enabled the mar
| ket to regain part of It's loss.
! Many of the leading rails prices are
not so very much higher than they were
six months ago. This is truS of the
I Hills and st. Paul and many other
! stocks Union Pacific has been flirting
with and around 100 for weei-s. Mis-
! souri, Pacific has been around 1915 for
/ many days. But rail values have been
I high for weeks and months. They have
| discounted everything including good
Z
Nashville increased it, dividend 1 per
| cent and on the announcement the mar
/ kct broke pOiuts-tnis being a sample
/ OF the manner in which actual good
news effects the market-discounted
| that's all.
Short Interest is Large.
The market Is in a better condition
| for a rise right now than il was a week
ago. 4 long line of weakly held stock
has been liquIdated, and a large short
| line has been put out and is still un-
covered. The masters ARG in a position
to give these shorts a red hot time, If
they so will. That dangerous Western
contingent Is more or less bare OF stocks
and would be an ally IN an upward
movement.
If stocks do rise with a rush the re-
action of last week will be forgotten as
an incidental matter-if they hang
around where they arei now the bears
viii attack the list more or less freely.
Action on the tax proposition will be
a factor. The rate on Exchange is get
ting dangerously near the export price
and the trade balances are being re-
duced to a point where gold shipments
are likely at any time.
The market is certainly in an inter
esting condition and should be watched
very closely by the speculative con
tingent.