The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-01-29
UNION PACIFIC
LED THE MARKET
Transactions Were in Enormous Vol
ume.
GREAT NORTHERN ALSO UP
SECURITIES DECISION EXPECTED
MONDAY.

MONDAY.
New York. Jan. 2S-The sudden out
break of pyrotechnics in a group OF
stocks which is sensitive to develop
ments in the Northern Securities case
was the feature of the stock market
today and these occurred late in the
hour of the market. Union Pacific was
the central figure and broke through
the restraint which has held it below
120 and was rushed up TO 1211s- The
transactions on the rise were in enor-
nous volume. St. Paul responded Wig
Orously and sensational advances were
made by Great Northern and the Chi
cago & Northwestern group North
ern Securities itself in the curb mar
ket was rushed up several points above
its previous highest price TO the neigh
bOThOOd of 1.55. There We're very large
transactions in Erie throughout the
session, but that stock encountered
very heavy prOfit-takinG. ii has been
the profesSed eXpecta ton for several
days that the decision of the suprme
court I'm the Northern Securities case
would be handed down at Washington
on Monday. Beyond this there was
nothing to explain the excitement re-
garding these stocks
The tone of the general market
showed strength, but by no means in
group. The greater activity which de-
VelopAd after the appearance OF the
bank statement was probably not due
TO its showing, although the gain in
cash reserve was much larger than
was promised and the loan expansion
hardly as great as was expected With
gold going out lin d stream because
there was not adequate use to be found
for il at this center, any accumula-
ton of banking reserves here had lit
strength g.
tivity of a large number of obscure
industrials was still a feature today.
Outside of the buOyancy in the trans
continental group the market closed
Slightly irregular Total sales of bonds,
par value. S5.4400O0.
Review of the Week.
The crisis in Russian affairs which
developed last Sunday has been a dom
mdnt influence this week on all the
worlds securities markets and New
Nork suffered its full share of the
shock Mondays outlook seemed to
threaten Immediate revolution in Rus
STA and. whatever might be the Opin-
ion of the ultimate results to flow from
such an event. its immediate effects
could not be contemplated with equa-
nimity in the world of finance Hold
ings In this country of Russian securi-
ties outside some of the great insur-
anCe companies are small. and English
Investments in them are small But
holdings in France and Germany are
enormous and the effect on those mar
kets of the overthrow of the author
ity of the contracting power would
evidently involve a CONFUSION in the
markets immediately affected. Other
markets. in the close bonds which now
knit them together. could not possibly
escape the serious reflex effects OF
commotion in the Paris and Berlin
markets. The very fact of strength In
the outside markets would throw upon
them a heavy burden of the liquida-
ton by the weak centerS.
1t was promptly demonstrated that
the Paris and Berlin markets were not
demoralized by the conditions in St.
Petersburg. and greater tranquility
was consequently restored in ali mar
kets. The local market withstood the
shock with good resistance. But after
the first recovery there was consider
a bic speculative liquidation. which WAS
believed to come from the sources re-
spOnsible for the large operations Of
last week on the long side of the mar
ket in the conviction that the Russian
complication would serve as a suffi
Cient repression on the demand for Sc
curities to cloud the hope OF any large
advance in prices until il had been
cleared up. The market of the latter
part of the week in New York showed
clearly the benefit of the shaking out
of the weak holdings OVerhansing the
market and also of the clearing up OF
the Russian situation The danger OF
sudden revolution WAS felt to be less
threatening The industrial disturb
ances and the discomfort in Russia
were looked upon as containing an Gle
ment of promise in the. coercinE influ-
ence they might exert toward the con-
clusion of the war i'm the far east For
several days the markets were RECALLED
with rumOrs of proposed steps toward
media ton between the belligerent pow
ers TO END the war.
This turn Of affairs was followed by
considerable demand for stocks for
foreign account. which gave substan-
tial help toward rallying the market
Another effect of the Russian disturb
ance was the heavy demand for gold
which sprang up. resulting in an out
40 of several million dollars for Paris.
Storm Was Depressing.
The great storm was a depressing in
fluence and the downward turn in the
rate of gross earnings of railroads for
the second and third weeks of January
and the testimony of railroad officials
TO "A lull in the trade activity of the in
terror gave additional force TO the
consideration of traffic conditions. Dis
putes over grain rates as between the
Gulf and Atlantic port lines bore on
the same question. While the reaction
was in progress the stress was laid on
the demands of local TRACTION employees
in New York. that projected congress
siOnal investigation Of the United
States Steel Corporation. the authorize
ton of a $50. ZOO. 600 bond issue by the
Atchison. and the continued discussion
of measures for government control of
its inclusion nsome large deal The
dropped out of sight with the recovery
of the market The agreement reached
by the Pennsylvania and the Inter
borough Rapid Transit with their en-
ployes eliminated those influences The
reports of large orders placed with the
United States Steel corporation helped
trade esta blished a firm support for the
strong influence of the widespread be-
lief in the working out of important
projects incident II tho Northern Sc
Curities settlement reasserted itself and
the determined accumulation Of the
Fries at all levels fostered a belief i'm
its inclusion in some large. deal The
Southern Pacic refunding was the sub
ject of varying surmise i'm the absence
OF official Information, Dut the effect
was strengthening on the Hartman
stocks.
The prosperity of the anthracite
trade established a RIM support for the
coaIers. The resumption i'm the Fall
River cotton mills was regarded as a
4arfor Or fa fr11nopfunna In,