The Washington times., 1909-08-15
Bull Fever Has Not Abated,
and MagnateS May Push
Prices Higher.
SENSATIONAL GAINS,
BUT MANY DECLINES
Union Pacifc's Strong Position and
New High Record An Inter-
esting Situation.

NEW YORK. Aug. 15-It is scarcely
probably that the average observer of
financial conditions realizes that last
week was characterized by heavy
liquidation of securities. The very
speed IN the pace set by some of the
leaders was enough to scare a conserva-
i've man, but the handsome profits
realized on the early advances brought
= food of liquidation up TO Friday night.
and in some instances right till the
close on Saturday. And yet the strong
spots were lust strong enough to pre-
vent rout-a danger In a market i'm
pregnated with large holdings for pub
lie account The stars were the stars
OF many hard-fOught fight-Louisville
and Nashville, and, of course. Atlantic
Coast. the former with l2tR points gain,
and the latter with "a Union Pacific,
with its unexpected sensational rise of
l3k points, with new high records on
every other sale: Chicago. st. Paul
Minneapolis and Omaha. with 50 points
rise; Hooking Coal receipts 1ols' and
Twin City, the Minneapolis and St. Paul
street railway shares, with l6as-point
gains study Of the table for the
week will indicate the extent of the de-
clines, which were general
Step Easy.
What Of the future? Step easy. stocks
will likely continue TO advance until
such time as HarTiman's plans are an
nounCed and then, with everything dis
counted there ought 70 be a good re-
action There never was a boom stock
market that was not followed by a re-
action-and that reaction may not be
Sc far away. Many are the stories told
or the squeezing Of the shorts in this
and that stock, but that there should
be very many shorts during a boom
market such as Wall street has enjoyed
Tor weeks is questioning the common
sense OF traders. The loan crowd does
not show a big short interest in any
thing. It has not shown it for many
DAYS.
The movement in the stocks men
toned as making the grea test gains Of
the week in Steel and New York Cen
trail additional strong spots were not
occasioned by shorts covering, any
more than the sensational rise in Tn
ion Pacific, VAS and the man who would
take a chance on the short side Of
Mon Pacific requires. and that imme-
dlately, the services Of a CONSERVATION
Union Pacific has been going up under
orders from the general manager, E.
II. H.
Millions of Cash and Securities.
The Immense cash and security re-
sources Of the road have a value Of over
80 a share for every share Of Union
Pacifc and large. rat surplus after
wards. Union Pacific has $4,000 900 of
-AtchisOn stock, So .S34 600 Baltimore and
Ohio eemmon $ s2e6s6o0 preferred. over
Sl0.00000 Of Alton, nearly 100000 Of ST.
Paul. over s. 600 900 Of Northwestern.
S2s,I23,10o OF Illinois Central, S14 y, 600 Of
New York Central. $40. go 000 Southern
Pacific, common, and $500 600 pre-
ferTnd; over S5.000000 Of St Joe and
Grand Island $500 000 San Pedro Los
Angeles and Salt Lake, and over Si7,-
co, GO other securiUes-al a par value
on the books. all worth very much more
than par-and not only great ia pro
viding traffic for the Union Pacific, but
IL frs-r- Eos
provide the cash dividend. Probably
some Of these securities have been mar
keted on the hign spots. Holdings IN
Great Northern and Northern Pacific
and Great Northern ore have been liqui-
dated. Cash Is about S55,eb,ol9-
There was an actual reduction in
loans last week OF s. 00) and this in
dlcated moderate distribution. II Is
likely thar this distribution came from
higher UP, although many. very many
traders have taken their profits and
puit for q few days. Perhaps the pow
erE that be are seeking TO start more
speculation on the bull side and have
taken this method Of making q more
attractive level on such stocks as Balu-
more and Ohio, Chicago and Atchisou,
Illinois Central with It's AZ points de-
cline, Missouri Pacific and many rails
that are lower than they were a week
ago.
Bull Fever Still High
The surcease Of bull fever doesn't
EhoN in the comment Of the Street,
it isn't 10 be found in comment Of the
traders IN commission houses and
brokers offices Advice Of 2 trend
toward conservatism doesn't meet with
favor With business revival good
earnings iel,00o000 bushels Of wheat
and an immense corn crop growing, the
bulls find II hard work 10 change their
coats and turn bears They have fol-
lowed the leaders so long and with sud1
the pace IS still upward. II remains e
be seen whether the men who control
the market are ready 10 have a genera
reaction. As a rule when the ma Tkei
begins 20 act tired and awesry with
everything IN the way OF natural IN
hueitces favorable the leaders are will
ing 70 let y &C. just At present the
market value Of stocks IS important IN
financing loans.
Bull traders have argued again and
again over the great betterment in the
railroad systems Of me country, the
vastly improved condition. and i'm
creased earning powers Of the roads.
London, no less than everybody con-
nected with the market understands
that the msgnates have been acCum-
uiating stocks for two years. and for
the purpose Of distribution to Che pub
lie al much higher prices Prices OF
very many stocks are az record high.
Il would seem 10 be nothing more than
Use 70 wait and observe conditions be-
fore taking on much more stock at the
present high levels, unless choice Is
mace in some OF the stocks that have
not been in the slzyrocketing move
Snent. At that. the list NAV 20 much
higher-few dare estimate the point al
which the mark Of the financial group
has been set
Careful observers like Southern Rail
way, the Eries Rock Island. the Goulds
and other stocks that have not psrtici
psted IN the boom TO any material ex
tent. Southern Railway is one Of m,
cheap stocks IN me list.
In the industrisls Steel common is still
z prime favorite. Il eNpect 10 see this
stock another Standard OIL proposition.
said the head Of one OF the big houses
on Wall street the other day. and there
are many others who have the saml
faith And why nOt2 Standard OH q
one of The chiefest influences in thf
Steel Corporation check on diViden,
Increases while upbuiding properties
and resources Just as the s o. itsel
was upbuilded. II begins TO look NOR
and more ike the ultimate retiremen
OF the preferred and the placing OF tn
common stock on much higher divi
dend basis before-before very long.
other industriaIs are unsettled. SmeIt
ing and copper have shown grea'
strength AZ times, bat the sharp ad,
vance has met unloading and giVeT
prices set-hscks. All steel shares are
lower, other than United states steel
Rubber was the strong Industrial with 4
noinf rise II promises 70 20 higher
Leather stocks have advanced shaTpiT.