The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-14

MONDAY. Dec. Is.
Tho fortnightly settlement on the London
Stock Exchange. which began to-day, dcyeloped
n demand for stocks that extended to this mar.
ket, In spite OF the fact that the London money
market was distinctly harder and the rates for
carrying stocks to the new account were higher
at 4ha4% y cent. The purchases by foreign
arbitrage houses, though not on a very
extensive scale. were undoubtedly in the main
to cover shorts. The foreign buying WINS not
Immediately supplemented by domestic pur.
chases. for the reason, presumably, that the
clients OF commission houses. rs we'll as the
local speculative element. have learned by
experience that 1t is not wise to buv
stocks for a turn on a Monday morning
bulge. There was. therefore. no sharp upward
movement In prices at the opening, as might
have been expected from the strong and ad-
vancing market of Saturday. This circumstance
encouraged commission house buying later in
the day, after the foreign demand for stocks had
become exhausted. As prices moved upward in
response to a moderate demand the short inter
est began TO betray a feeling OF alarm, and It's
purchases. added to those referred to-, Unmarried
strength and activity to the market.
sugar refining held its traditional place as
the leader OF the list In respect to activity, and
II also scored a noteworthy net advance. even at
a decline Of a point from tho highest price.
Tho shares OF the Granger trunk lines
were extensively dealt in at net ad-
vances averaging more than n point. Chicago
advices are that the facilities OF all tho roads
running west from that centre are now being
taxed to their utmost. This is due In part
TO the efforts OF spectators who have been
caught short OF December wheat to bring that
cereal to market before the end of tho
month. 1t Is TO be noted, however. that
tho west-bound traffic over the Granger
trunk lines is also unusually heavy, and
probably Will be for some time to come, owing
to the prosperity enjoyed by the vast territory
traversed by the Granger and Southwestern
roads. Among the active stocks the greatest net
gain was that OF ga Y cent. in the price OF Union
Pacific. This movement was accompanied by a
report that tho Reorganization Committee had
reached a new agreement with the Government
regarding the purchase OF the subsidized por.
ton OF the Kansas Pacific Railroad. SO far as
can be learned. there is no basis for this report.
The committee adhcres TO its determination
not to bid for the subsidized portion OF the
Kansas Pacific road II tho Government, in
violation or It's contract. puts In an appearance
at the foreclosure sale as u prospective bidder.
The real reason for the strength in Union Pacific
Is probably the decision o. tho Reorganization
Committee to go ahead and complete tho re-
organization OF tho main line. 1t will prob
ably DO successful in doing so within the next
thirty days. The disposition OF the subsidized
portion of the Kansas Pacific road cannot,
however. be determined until Congress
or the courts. at the instance OF tho Adj
niinistration, pass upon the point raised by
the Government. The situation Is a most un.
fortunate one. since 1t disturbs both investors
and railroad managers. II 10 possible. however.