The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-15
buying RIGHTS ON
GREAT NORTHERN.
Wall Street Pays $37 for subscrip-
ton Privileges to New
Stock Issue.
Special to The journal.

THAT has been ripening in full view
of Wall street for several months was
plucked this week, when James J. Hill
announced to his Great Northern stock
holders that they. might purchase 20 per
cent Of their holdings in new stock at
par, The right to subscribe to this
stock was sold on the curb for $37 a
share. Assuming that Great Northern
stockholders can sell their subscription
rights between 35 and 40, the rights
amount practically to a cash dividend
Of that amount and do something to
explain why the stock should sell upon
an investment basis Of 81 per cent.
Deducting the market value Of the
rights from the market value Of the
stock can be acquired, which still repre-
5 per cent. It is evident that the spec
ulative community looks for still fur
Their rights or other special benefits in
the near future. Great Northern stock
is already closely held for investment,
and by individuals who may reason
ably be expected to exercise their rights
to the utmost. Great quantities Of it
are held by the English aristocracy, as
well as by the American aristocracy Of
wealth, and it is uncomfortable that
many of these will forego the oppor-
funity to add to their holdings Of 90
par. This condition, naturally, will
tend to sustain the market price Of the
rights on the small amount Of stock
floating in Wall street.
ANOTHER MELON, promised for
States Cast Iron Pipe. This stock is
not a popular speculative issue, and
some traders put it in the class Of
"cats and dogs.' It's relation with
the Standard Oil properties makes it a
| company of great Importance and one
whose stock may be. expected to be-
come an Investment issue.
CHICAGO GREAT WESTERN is
among the low priced railroad stocks
that are likely to attract attention as
It is understood that recently the gross
earnings were $4,000 for single day
and up to not very long ago those figures
represented the topgnotch for single
week. A few days ago the gross re-
ceipts were $4,000 for a single day.
This is only fair sample Of the rapid
increase in earnings which the rail
roads are enjoying. One railroad off
railroads had sufficient equipment to
handle the traffic offered, they could
show much larger increases than are
! being shown. In connection with this
it is expected that the Canadian Pacific
will figure very prominently. -
COLORADO FUEL & IRON-Talb
has it that the Rockefeller interests
have sold practically all Of their stock
and that:thei Representatives, have also
retired from the board Of directors
not control The thf ePs by al
actual ownership of tho majority oil
the stock, and the control is not helt
| by any individual Or group of indi
viduals,, but the stock IS largely af1oat
1t is understood that George J.3Goul6
recently told some of his friends that
the. company had discovered large
bodies. of ore comparatively near it!
plant in. Colorado and that It's ore sup
ply Is assured for some years to come
Heretofore the company has beer
Obliged to pay long-haul charges on it.
ore from the Minnesota mines.
NEW YORK is CRYING for more
gold on account Of the stringency il
the money market. The amount which
is coming here from Europe is too small
to fill up the gaps caused by the drain
to the crop-moving regions Of the west
The general opinion is that when thu
present tightness in the money marke
is ended stocks will move up rapidly
but this cannot happen for the mex
| A1oACA W LlO1S. * = uo "ueI1dnQS 10
money in the west are much create
than was anticipated by competen
authorities, but, Of, course, the situa
tion is only a temporary one.
A LARGE EXCHANGE house will
try the experiment OF London branche
for dealing directly by cable on tn
New York exchange. The effect upo1
the regular arbitrage business Of tn
international banking houses may b
very important. Obviously, the schem
will not lend itself readily to arbitrag
q operations except on the part Of opera
) tors of, very large means, whose abilit,
to keep accounts open on both sides o
the water puts them upon an equalit7
with the international banking firms
4 Stanley Schroff,