The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-12
BIC TRADERS WORK
IN THE BACKGROUND
Stock Market Hears Many Ru-
mors of Increased Divi-
dend Payments.
Special to The Journal.

SPECIAL to Inc journal
New York, Aug. l1.-The stock mar
progress in an upward direction, lead
ing stocks having advanced sharply.
There was revival OF pool manlpula-
ton such as has not been seen since
prior to the San Francisco disaster,
which put a check to promising bull
campaign. An accompaniment OF the
operations of the large interests labor.
ing to distribute stocks was revival
of stories of the prospective deals de-
signed to stimulate a greater partlclpa-
ton on the part of the public. The
short interest at whose expense securi-
ties have been advanced from 5 to 20
points, as compared with the low level
of three weeks ago, has now been prac-
tically eliminated, leaving the market
in a much poorer technical condition.
Thus far the public, as the term is gen
orally interpreted, maintains It's stollt
Indifference to Wall street allurements,
tho, of course, there is certain fol
lowing of small spectators which al
ways tags after the big operators. Gen
orally speaking, the market is pro
fessional one, with big people handling
1t in the background.
The signs point to an increase of divi-
dend payments all along the line by
railroad and industrial corporations, on
the theory that present earnings and
the prospects for bumper crops warrant
such action. At the same time it be-
hooves the careful investor to bear in
mind that securities prices are on q
high level. Stocks yielding only to 5
on gilt-edged bonds, are hardly on the
bargain counter, even tho they may be
in line for greater disbursements. The
country is not yet out of the woods as
regards monetary conditions, and any
wild speculation could not other than
make for stringency. Then, too,
there is the political situation to con-
slider, with it's possibilities for unsettle-
ment. AS to the matter of larger diyi-
dends being paid next fall by several
of the more important railroads, GER
tain interests say that it is practically
certain that Union Pacific common
stockholders will receive dividends at
the rate of Z per cent year when next
the directors take action on this ques-
ton. Also that the Atchison dividend
to be acted upon in October will be at
the rate of per cent and the Norfolk
& Western the same.
The expectation of such develop
ments is good bull food, and it is being
handed out in supplies calculated to
inspire public confidence in the market
ers who generally get into the market
as it is about to decline. The time
is short in which conditions will favor
the bull manipulation, and the WORD
has gone forth in speculative circles
that prices must be advanced in orde,
to provide a good market in which the
tied-up pools and individuals may par
with their holdings at a profit. Thu
approach Of the season when money
L. +Io po1
congressional elections will be factors
that may serve to restrain activity il
securities, and it is no more than nat
ural that spectators who have stock
on their hands should be anxious t,
create bull market this month, espc
cially as general conditions in the coun
try are so uniformly favorable. TIL
crops will break records, the iron an,
steel business has never been in bette
condition, railroad earnings are heavy
and in all departments Of trade Their
is but one story, prosperity.
The fact that the quotations for tn
greater number Of the leading securitie
have enjoyed marked recoveries from
the recent depression in values and i
most cases are selling at a level tina
makes but a small return to the pun
chaser, does not enter into serious con
sideration at this time. It is not
question of whether or not prices ar
too high. 1t is merely a desire on tn
part of the spectators to let someon
else have their holdings at better fig
ures, and belief that the time is rip
for the development Of an intensel
bullish sentiment among the public
Probably the conservative business me
turnout the country will not be attract
ed to the stock market at present prices
particularly as they have their fund
we'll employed in the channels of trad,