New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-11
c. P. R. BEAR TRAP.
BANKS PREVENT SQUEEZE
Canadian Road Increases It's DiUi-
dend to 6 Per Cent.

The feature OF the stock market yesterday.
as Saturday. was Canadian Pacific an ex-
PLANTATION of the strength of which came from
Montreal after the close Of the trading. in the
important announcement that dividend Of
per cent had been declared for the six months
ended June 80 on the common stock. which has
thus been raised from a . per cent basis on
which it has stood since 1901. TO a per cent
basis
On Friday a sharp AMI sudden bear raid
carried the stock down from 1928 to IFS from
which point it rallied to 11924 at the close; and
Saturday. although again touching lis. IT
closed at 10 being one of a very few stocks 20
make gain on that day of depression. 1t was
known on Saturday that there was exceed
ingly scanty floating supply Of Canadian Pacific
stock the short interest in which Is estimated
all the way from 100000 to 10000 shares; and
it now appears that the bears made their raid
not only In the face of this condition. full OF
danger for them. but also in entire ignorance OF
the fact which must have been known to
the bull leaders in Canadian Pacific here.
that the dividend the common. which is the
speculative issue. the point Of being
raised from . to per cent. Indeed, one OF the
bear arguments of last week that with
Pennsylvania, a per cent stock. selling at
around 12O. Canadian Pacific. yielding only D
per cent. was selling far high and must
come down and far down.
RAPID RISE AND FALL OF THE STOCK
Opening 21k points up yesterday morning.
Canadian Pacific rose rapidly to 126 on urgent
buying by alarmed shorts. but had dropped back
to 122ss by II O'Clock. Canadian Pacific is loan
ing at a large premium. both here and in To-
ronto, and it Is understood that the price OF the
stock would have been run UP much higher on
the shorts had it not been for intimations q
byrF Fhcs
banks. which are unwilling. with the general
market situation as it is. TO permit costly ad-
vantage to be taken of the Corner conditions
practically prevailing.
DAY OF MANY FLUCTUATIONS
Support was given the stock market yester-
day by powerful interests. checking. In the
course of the day. the collapse in prices which
was the feature of Saturdays short session. and
inducing extensive covering by the shorts 1t
was day of wide fluctuations, with some stocks
opening up and others down, as compared with
Saturdays close. with dip to new low Levels
following a brief early advance. and with a late
rally which established final prices at about
the high level Of the day. There were no fall
ures and sentiment was, because of that fact.
improved at the close Many yachts brought
their owners to the city in season 20 reach the
financial district before the opening of the Ex-
Il
| tered by brokers whose interests demanded
| their presence on the board at the opening
/ hour.
In addition to Canadian Pacific, the buying
| demand from the shorts was conspicuous also
in Union Pacific. Southern Pacific and Metro
politan Street Railway, which were fercely
raided by the bears Saturday. The market
was no. free from points Of weakness. and
liquidation was renewed from time to time IN
different parts of the list. This notably the
case in Missouri Pacific. and tts weakness and
that of Atchison. partly induced by fear of an
unfavorable government crop report. had
sympathetic effect in dragging the whole list
down TO below Saturdays level This liqut-
dation had apparently spent its force towards
the latter part of the day and when it was
learned in the last hour that no firm had failed
to meet it's contracts the market rose rapidly.
There were indications during the day of invest
rnent buying, which gave better tone TO the
market and there seemed to be an important
investment demand for foreign account. The
latter demand was factor in the weakening
of the exchange market. which was accompanied
by renewed talk of possible gold imports.
Some of the net charges of the day. with new
low record prices for the current movement,
we're: