The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-06
FINANCIAL AND COMMERCIAL.
WRpNEspAY. Oct. 6,

The price of St. Paul common stock,
on which the attention of Wall Street yes
terday and a good part Of to-day chiefly
converged, rose to-day more than two
points above yesterdays high level, fell
sharply, again rallied and fell alter
rate,y and closed at little over point
net advance Transactions in the stock
were nearly 10000 shares, as against
$4,000 shares yesterday 30 that the effort
of those manipulating the stock seemed
to be to hold its price as steadily as possible
while they secured as large a quantity
of profits as might be. There was not
word further heard to-day regarding any
Northern Securities settlement" or any
other matter that could account for the
sudden activity and great rise in the st.
Paul shares. Naturally, the recent course
of the market has led many people to believe
that there is something, despite all denials,
in the stories of com offensive adjust
ment Of the transcontnental railway sit
uation, and that while details are not worked
out plan regarding the matter has been
agreed upon and in due time will be made
known. Nevertheless, tn denials continue
positive and straightforward from the very
highest authorities that any such plan is even
remotely under consideration. 1t is to be
admitted that one of the best features from
speculative point Of view OF the present
stock market Is that thus far in its course
stocks do not come out" freely, that is.
the prices reached have not produced
any flood of liquidation from genuine hold
ers of securities. On the other hand, 1t is
well known fact that investors do not
freely part with stock on rising market.
The problem of reinvesting their money
presents itself, and the promise is con-
tinually held out to them that higher and
higher prices for their holdings wait their
patience Until it seems that the rise in
prices actually passes all bounds OF reason
or that the market for securities is actually
topping. stocks are held by investors with
even greater tenacity than when their
price was much lower. All this is especially
true when, as is the case at the present
time, prevailing money rates are easy.
The speculative argument is heard on every
side that stocks should go advance that the
return of income from them should ap-
proxmate the rate that the use Of money
commands in the open market It is falla-
cious argument of course just as 1t Is
fallacious argument that tempo
rary money squeeze should induce
holders OF investment securities to rush
to sell them upon the Stock Exchange.
Recurring again to the rumors revolving
around the Northern Securities Company
Wall Street should, perhaps, take thought
Of the fact that any settlement OF the mat
ter at this time by the large interests con-
cerned that fell short of an actual and final
judicial decision on the various issues that
have been raised would almost certainly
result in the beginning of fresh litigation
by smaller stockholders or bondholders.
So too, those who are settling the North
ern Securities litigation by passing the
Northern Pacific road over into the hands
Of the st. Paul company and the Burling-
ton into the possession Of the Great North
ern company may profitably consider
how the owners OF the Chicago, Burlington
and Quincy collateral trust bonds which
hold the Burlington stock as collateral
security, would regard the affair These
bondholders now have the guarantee back
of the bonds of both the Northern Pacific
and the Great Northern Railway COM
panies. Will they be satisfied with the
Great Northern guarantee alone? True,
the bonds in question may be called at l05
after Jan. 1. 1908, but that is putting of
the settlement of the Northern Securities
tangle for longer time than would be re-
ouired to take the case before the United
States Supreme Court.
To-day, while ST. Paul stock was ner-
vously !uctuating back and forth, and the
New York Central. Pennsylvania, Atchison
and Erie shares were being taken up"
and advanced nearly all other active stocks
in the market were distinctly pressed for
sale. Although total transactions to-day
were even greater than they were yester-
day and the average price Of stocks adj
vanced, the market was plainly as much
of liquidating market as an advancing
one The United States Steel preferred
shares were especially weak, although a
rally at the close left their price fracionally
above that Of last night. 1t is doubtful
If the unfavorable annual report made
public to-day Of the American Steel Foun-
dries Company and the equally unfavor-
able statement of the American Car and
Foundry Company for the four months
ended Aug. 81 had anything to do with
the selling of the Steel shares, BIT these
statements bore pretty plain evidence
of the depression which now exists in the
iron and steel business. OF similar char
acter, Of course, was the official announce
ment that the Repu bile Iron and Steel Com
pany proposed to issue $40 900 900 Of first
mortgage bonds fer the purpose in part of
securing notes for $1,000 600 which the
company has made, or il about to make.
running from two to forr years.