The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-06-02
NEWS OF EASTERN
STOCK MARKETS
Settlement of Northern Pacific
Strengthens the Exchange.
PRICES WERE ON RISE
WALL STREET AGAII TAKES on
APPEARANCE OF A BOoBL

Ds2de an extraordinary re fp0nSe TO-DAY
20 tEe official announcement of the
agreement arrived at by the conflict
ing interests in Northern Pacific. spec
uauOn seemed 20 leap % the cOnclu-
sion tat the only impeachment had been
thereby removed to the return TO the
level of Tzices and the advancing ten
dency which was interrupted by the
Devastating effects Of the corner an
Northern Pacific. There was headlong
buying of stocks al through the list on
a buOyantIy rising scale. All things
were made fuel for r9llish enthusiasm
end any news watch seemed to threat
en- values was ignored
The market took on all the character
istcs Of the recent boom period and
after ab50rbtug all offerings 20 take
profits rose vigorously again I'm the
final dealings to the highest OF the Gay,
where 81 closed. There was no eXcep-
tion TO the Strength Of the market, but
some of those stocks which have been
advanced sharply Of late were kept
steady by offerings to realize profits.
This was notably true of some or the
EOuthwesterns and southern railroads
The early squirt was most sensational
IN Union Pacific. the United. states
Steel stocks and AtchisOu. The first
sales of United States steel We're 10000
shares. The rise in Union Pacific eN-
4 ttsnded to go during the arst hour:
There was some reaction midway OF
the session. but the Changers became
conspicuous, led by ST, Paul with
93s point rise. Rock Island gained 81,
preferred Az There was still con-
spicu0us absence OF dealings in North
eru Pacific, not q single transaction be
ing recorded either for the common or
preferred Not even a bid % asked
was recorded for the common stock at
the closing.
The d,tails Of the Northern Pacific
Agreement are not announced and Tu-
raors were numerous pointing TO wide
reaching adjustments an through the
railroad world as c0rrlaries of the
Northern Pacific settlement The whole
Northwestern railroad system. IT was
said. w0Eld come into one harmonious
control and representations of the
same control would be found IN me
Union Pacific system. The Union Pa
CifiC. said the gOSslDS, would detacn
the Southern PICifc for the benefit OF
Pacific outlet for the Gould south
western system and content itself with
the Central Pacific.
The operator who was regarded as
the market leader during tbs recent
boom was very conspicuous In the
days dealings and bought thousands
of shares of many different stocks all
around the room. The bulls declared
that great financial powers had en-
trusted large resOurCes-to the direction
of this operator 10 inaugurate a new
bun movement. The gains in the prom
inent stocks run from I 10 points or
over There was an enormous ABSORB
tion of Union Pacific convertible bonds
as wen as of the stock
The stock market has shown more
animation and more consistent
strength this week than at any time
since the CCmmotion of May 2. Pro-
fessional opera tors stiH form large
proportion of the dealings and there
have been many movements, especially
in the Industrial list. that can only
be explained on the score OF manipu-
lation By pools. There was a. feeling
fn the street that the project of an ad-
justmeut OF the Northern Pacific d1s-
pute and Of avoidance of further hos
,rt-fh
TO q settlement. The conviction or tbs
WAS strong before the Official announce
ment, based upon number OF inter-
ences. The arrival of Mr. Morgan in
London from his vacation fOstered j.,
as his decision upon the matter was eS-
Eential i'm any event So did the fact
that conferences were going on IL THIS
city between the parties IN interest
The upward movement in Union Pa
rifc and Southern Pacific j. acCe2ted
as gcorrJbOUatiVe evidence The OIrel
Of the two banking houses which repre-
sent the -cOutendng interests 20 al.oN
the London shorts 90 SETTLE for the fixed
price of 1873 where they are honestly
unable to make delivery, relieved
somewhat the fears of further stock
market disturbances growing out %
the difficulties of the shorts, but the
wording of the offer makes II clear tna'
there was no relaxation OF the close
ness with which the rivals were exact
ing all possible deliveries Of actua'
certificates Of the stock. The stock is
also practically unproeUrable in the
market
The fact was considered significant
that the list of collateral for the $780,
100000 issues of Union Pacific convert
fble bonds, given in the application 20
the stock exchange 70 lst llose Doila
did not include any Northern PACING
stock. The Inference was THAI the
stock was thus designedly lett free tc
be disposed of In any settlement OF inc
dispute ia The Northwestern railroad
fHr.rrr ole n
however. nal eS 1T clear that the pro
ceeds Of the bond issue may be applied
70 reiubursing the existence Of tht
Northern Pacific purchases IN the in-
terest Of the company
In the meantime the project which
s. called in Wall street the Greater
Missouri Pacifca' has taken on gfealel
distinCtness of outline. ana Admittedly
includes a. desire and "A purpose TO Sc
cure control or trunk line outlet fOI
the Could Rockefeller south western
system 10 the Atlantic. Both the Erie
and I.ackawanna seem. from the mar
ket movement of their stocks. to b
aimed at By this project The advance
iu this group Of stocks under the puy-
ing supposedly ior TINS purpose "a
had stimulating effect on othei
stocks
There has been large buying Of At
Gibson. and "a revival os the rurnOr that
this was for account Of the Pennsyl-
wanna. in retaliation for the Gould prof
ect The disap~rOvaI Of this project oy
the great trunk line prOprietors is
taken for Granted, The interests thus
brought into conflict would be parts
identical. with those involved in the
Northern Pacific dispute. Suggestions
OF friction along tine same lines are
found iu thu rumors Of Illinois Cen
traI's plans for entering the Chicago
ST. Paul granger field through the Min
neapoHs & ST. Louis and the Iowa Cen
trail. and the report that large pur-
chase OF Ohio bituminOus coal lands IS
SUPPRESSED to be for Gould account.
Ap-arentay the speculative traders
nave returned to their old iuterpreta-
tfon of sRese Developments az indicat
srr the combination Of community %
interest" rather tlTan the later inter
probation Induced 10y the Northern Pa
cihc incident. of harmsul rivalry .De
tween the great rallroad powers n'
generally favorable Character Of tht
Apru statements OF net earnings and o.
the May gross earnings was an ia
Auence on the whole railroad list
TIE continuing goOd Prospects for th'
cereal crops and reports Of serious
damage 10 roseign crops had
4 strengthe1sng influence on railroad
stocks Political considerations alst