The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-03
STOCK MARKET in
FEVERlSH STATE
Enormous Trade With Many a
Wide Fluctuation in
Leading Issues.
Special to The Journal.

New York, Dec. 2.-That the Rock
Island is to suspend DIVIDENDS on lCs
preferred stock is pretty we'll accepted
as fact, and were such action TO De
announced it is unlikely that the STOCK
would decline much, if any further; A
great deal has recently been said about
the difficulty of holding the Rock IS
land system together, harmonizing the
various interests involved and the like,
all of which is no truer than it was two
years ago and not as applicable to ex-
listing conditions as it was then. It IS
dends are passed now the company. will
be in position to resume them at least
as soon as some non dividend stocks,
now selling as high as Rock Island pre-
ferred begin to yield anything. Brok-
ers who claim to know say that the
Moores and their associates have rot
lost one whit Of their confidence In the
possibilities of the property, while they
have become reconciled to the fact that
it will take years longer than they
thought to realize them. Should the
controlling interests abandon this prop
erty, it is obvious that they could not
get into any other railroad with any,
thing like the same present magnitude
or promise for the future. T.. =,
A prominent international banking
house loaned $5,0O0,000 upon call this
week, representing French funds. On
a smaller scale there have also been
loans for English account. With the
discount rates around per cent 1t Is
not surprising that Paris, now that the
Russian loan has been postponed, is tax
ing advantage of the opportunity for
profit, tho in the case of London, with
a per cent rate, this is not so appar-
ent. Of course, Berlin, where the rate
rules Al per cent, is in no position to
furnish New York with funds, that
hoxy nnYfl W
received money from Paris. The $780,
100000 Japanese loan promises not to
disarrange the international markets,
since $62,500,000 was taken by the
French, $31, 100000 by the English and
only $15,625, 900 respectively by Ger
many and this country. In other words,
Paris, which has some $62,000,0O0 more
of the burden, while the money centers
in less satisfactory condition are less
drawn upon.
J. J. Hill disappointed the street by
refusing to tell anything about his pur-
chase Of the Missouri, Kansas & Texas,
which, property. he was expected TO
bring home in his steamer trunk, neatly
tied up with pink string. AS mat
ter of fact Mr.. Hill told the few pub
licans and sinners who broke into the
august presence that he had bought
nothing. But Wall street remembered
that MI Hill has figured in several
technical denials in his time and cheer
the same. One broker interpreted Mr..
Hill S words as meaning simply that he
had not bought the road out of his own
pocket, or for his personal use. st.
Paul's extension reports are carefully
watched from day to day. lnasmuch as
the st. Paul management has always
been liberal with it's shareholders, both
IN bo ,nattaT -of rapI1lar cash dividends
and in the allotment of new stock, 1t
is believed that valuable rights on a
large scale will be offered to the share
holders from time to time in connec-
ton with the new Pacific coast extern
sion.
The short interest is so large that
every attempt to cover causes wllc
movements upward. According to some
of the best operators, the short inter
est cannot possibly cover anywhere neal
present levels, and in it's fight to extrl
cate itself it will turn the affair into
a genuine bull market of broad proper
tions and wild activity. At the hrs'
signs of weakness some worried bear
start covering. The movement is Gle
tected, pools rush in to prevent escap'
of the captives, and in minute thu
whole market is boiling. These short
are found largely in the ranks OF OF
traders, but mostly among the o,ooo
SudIS puU1lC.
Speculation is now characterized b,
an intensity the equal of which has no
been seen before in recent years. Their
is beyond doubt a great deal of gam
bling pure and simple going on, L
which nothing but blue chips are EN-
ployed. Men who are speculators, VIII
have no part in permanent ownership 9
great works, are carrying 100000
lines and are shifting around thousand
of shares a day. There are absolutel
ruinous differences in prices not owe
forty-eight hours apart and even les:
When room trader can make slngl
turn of 7. per cent on 1000 shares in a
hour, the market price is about as rapi
as it can be. No man can tell, no judg
of human naure foresees the duratio
and the extent to which speculativ
fever will be carried. When specul:
ton becomes feverish, it never stol
at a reasonable basis of valuation
London has been selling heavily her
and incoming steamers are carryln
heavy cOnsignments of stocks but Lo1