Evening star., 1909-08-22
MARKET BORE UPWtLl
Survives Greatest Flood of
Profit Taking in Years.
BUSINESS BOOM FORECAST
Prosperous Solvency Predicted for
Struggling Railways.
UNION PACIFIC'S BAD BREAK
Sequel to Campaign of Bunko.
Harriman's Health and His Siren
uous Business Life-Exports.
UNION PACIFIC's BAD BREAK
By w. G. Nicholas.
cspondence cf The Star.


time in years. supplemented by real
liquidation during the later periods Of the
dip. Everybody seemed to be moved by
the same impulse at the same time. yet
outside of few leaders which had ad-
vanced most wildly a great majority of
the issues on the active list suffered
only moderate reactions. That the gen
eral market did not slump badly was
no fault OF commission merchants VINO
for days had been burfening the mails
with advice to customers to take their
profits and sit back awaiting reaction.
The motive behind most of this advice
missions as for the welfare of Gus
toners. Too many traders had been
sitting on their accounts watching profits
roll up withou, doing anything to hven
up the game or contribute TO the pay
men: of Office expenses. Something had
10 be done TO sWeeten up the game. AS
q preliminary move traders had TO be
Jared into activity, and the best way
to do it was to shake them out of their
stocks.
Experience has shown that no ordinary
reaction in prices would have the slight
est influence. II was therefore. resolved
TO take the other end Of the proposition
and appeal to the avarice of operators
by urging upon them the desirability of
grabbing off big profits and looking at
the money awhile. Concentration upon
this idea produced the desired result. II
would appear however that great guam
titles of stock We're absorbed by the pub
lie on the breaks. Waiting orders were
encountered in almost all the important
issues and the amount Of stuff that was
taken turned out to be much larger than
the advisory army had anticipated.
Whether il will be enough to check
further attempts to force recession is
one of the things which only the record
of the next few days can show for
certainty. The great majority of the
bull army believes there will be set
back Of consequence in the general list
and that Sthe upward march will be un-
der way almost before We know 1t. In
deed, hundreds and thousands of traders
who sold out under compulsion almost
are already getting back in again. They
do not feel comfortable without being
long of stocks.
Something That Appeals.
There is something that appeals in the
philosophy that it will pay to get out of
high priced stocks and into those OF the
medium class. Many Of the issues that
have enjoyed tremendous advances no
longer pay their boarl,'' as the saying
is Union Pacific. for instance. does
not pay carrying charges III the spec
ulative account, and the same is true
of New York Central. Northern Pacific.
Great Northern. st. Paul. Reading, Hi
no.s Central and others of the same
class. There is an invitation in this
situation for spectators to transfer al
legiance to stocks like Rock Island, Steel,
Atchison, Chesapeake and Ohio and some
of the industrials which have only ex-
perienced moderate Improvement SO far
As broad, general proposition the
great business boom upon which we are
entering will upbuid everything and lift
struggling properties into happy and
prosperosu soivency. In this class may
T-~sH slvr,n, Il
possibly some of the Gould things which
have been SO handicapped by incompe-
tent management as to discourage all
speculative assistance.
One of the features OF the market set
back was the heavy and concerted call
ing OF loans by banks in the Standard
Oil group. This movement was so open
that attention was attracted to IT, and
n many quarters the theory was held
that the break was engineered by Stand
ard OH interests in order to accumulate
stocks This theory was strengthened
by the active assistance of benevolent
prophets like Tom Lawson. who once
more filled advertising columns of the
daily press with Sratuitous advice cost
ing tens of thousands OF dollars to get
out OF stocks and take TO the safety
cellars. When nine out OF ten operators
have money 10 the good il their
counts, scare stuff OF that sort has small
effect.
BROKERS HendeZVOuS.
Bar Harbor has been the ce..;er OF
speculative activity all through the
months "f July and August. There has
been great attraction for heavyweight
spectators and capitalists mt that resort.
Among those who have been there a
great deal are mentioned J. p. Morgan.
Henry Clay Frick. Judge William r.
Moore. j. q. Reid and long list of
bankers and car,tains of industry. Not
all OF these men have remained at Bar
Harbor. but they, somehow or other
gather ,nere in numbers and have time
to discuss affairs of state and high
finance. The coast OF Maine has many
resorts in hign favor with Wall streete-s,
and those places in eastern Massachusetts
where the favored rfh have their sum-
me' homes may be said to be within the
sphere Of Bar Harbor influence. There
has probably been no place in the entire
country where so much stock exchange
business has originated as in Bar Harbor
One OF the awful things that has hap
pened in Wall street this week was the
break in Union Pa cific from 219 to oO41a
A year ago anybody would have been re-
garded as Il fitting candidate for the in
sane asylum who had limited at the pos
Sibility of Union Pacific ever getting high
enough to break to 10 Only the widest
dreamers could conceive of such thing
Yet here We have seen within the last
feH days such an incident being looked
upon next door ta calamity, and as
valid reason for looking for Il very
serious market slump. BY the way there
was good deal Of the hunco in that last
upward movement OF the MON Pacific
especially the preferred. Th. street was
Surchdrged with rlImurs of all sorts az
fectfns tnion Pacific. nearly all Of them
predtcateG Oh the theory that there was
To b.. II colossal melon distribution
According to the general run of gossip
Mr.. hartman was contemplating the
naice!inS out among his stockholders al
anywhere from 500 uOb.uH to SlUb,sD 600
Of the money that had been previously
borrowed on stock and bond issues. Just
how this was tu he done nobody appeared
IL be certain. but til. one thing Which
everybody was quite sure Ui was that
every human being in anyway identified
with the Hartman fortunes was to re-
ceiVe 4 shower OF gold. No doubt some
body made tidy sum of money on the
manipulated advance which accompanied
tie broad circulat ton of weird GOSSIP,
concerning the Hartman systems. Mean
time the status of the Hartman system
speaking in the purely personal sensel
continues to be II matter OF live interest
Those. who believe themselves to he best
advised as to MI. Harrinian'S health are
not seriously alarmed. but with one at-
cord they insist thar il the tinancier ex-
poets to prolong his life he must not al
tempt to resume his activities i'll the old
way. As matter OF fact, he has his
affairs 50 arranged that lie might prac-
llN retire fine inn n