Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-19
Hartman Pacifics Kept Up
Speculative Interest
IN THE WEEKS OPERATIONS
Heavy Transactions and Quick Profit
Taking.
U. s. STEEL VERY ACTIVE STOCK
Sales Equal to Boom Days Of April,
1901-Renewed Doubts Over
Money Outlook.

SASy SuSASohs
NEW YORK, August 13-The stock
market continued today under the electro
Tying influence of the increased dividends
on Union Pacific and Southern Pacific an
nounced yesterday. A large preponderance
OF the enormous dealings were in these two
stocks. but the organized speculation shift
ed during the day to Pennsylvania, Read
Ing and Amalgamated Copper. There were
huge transactions also in United States
Steel Those stocks show a large propor-
ton OF the total sales for the day, which
ran at the rate Of activity equal to the
boom days of April, 1901. The trading in
the Paeifcs was wild. and brokers in these
stocks apparently had orders to buy unlim-
lted amounts at the prices asked by SELL
ers. whatever those might be. The result
was an opening in Union Pacific all the
way from 1917 to 1876.
The spread in Southern Pacific was from
~, yesterdays top price, to 81. 1t was q
field day for the room traders and opera
tions were difficult to follow except by
those on the floor Of the stock exchange.
market owing to the heavy pressure Of
business. The operations by the room ele-
ment We're on practically unlimited scale
and their trading in and out inflated the
volume of dealings enormously. Their
quick profit taking at frequent intervals
kept prices fuctuating constantly. But the
DuylnS demand was kept reinforced ana
the uplift of prices continued. The move
ment to take profits became most pro-
nounced after the appearance OF the bank
statement.
A loss of over $4,000 600 in cash indi-
Gated a heavier movement to the interior
than had been promised by the preliminary
estimates of the banks themselves. In spite
of the scaling down of loans Of over $4,000
600. which served to relieve reserve re-
Quirements, the surplus was cut into to the
extent Of s1,17O,025. The movement of
pected to fall Off. and the speculative
activity in the stock market which sprang
up yesterday must make additional re-
auirements on the credits Of the banks.
The active demand was continued I'M
diminished up to the closing. and while
prices at some points showed the effect
of profit taking at that time there were
buoyant advances at others.
Total sales bonds. par value. S1,960,OO0.
Sequel to Dividend Action.
Speculative interest was kept alive during
the week by the enormous operations on
rising scale in the Hartman Paciflcs. The
general market was little responsive until
the official announcement on Friday Of the
dividend action on the stocks. when the
whole market was thrown into panic OF
excitement. The aggressive movement In
the two stocks had been accepted as the
abundant evidence of the imminence of i'm
portant Developments The usual conse-
quence followed of floods of rumors to ac-
count for the testimony offered by the tape,
and wary spectators exercised the usual
caution about discounting many Of these
rumorS as almost certainly due to excited
speculative imagination or to misrepreSen~
tation with hopes OF profit. The cases are
rare In Wall street where the rumors that
accompany an excited speculation fall short
Of the facts.
But the boldest prophets had failed to
foreshadow the placing Of Union Pacific on
lectures were generally agreed m expecting
a 81 per cent disbursement with varying
opinions as to whether this dividend should
be designated as regular or as per cent
regular and u per cent extra. The weight
of opinion was in favor Of an initial divt-
dend Of per cent for the half year on
Southern Pacific. The sensation was In
proportion when a semi-annual dividend OF
per cent on Union Pacific and of ~ per
cent on Southern Pacific was announced.
Very wide deductions were drawn at once
Of the general financial policy of corpora
ton managers to be inferred from this &C
tion and the differences were applied to
other stocks. The example derived addf-
uonal force from the reputation for con-
servatism in the outstanding of surplus re-
sources and Of large outlay from earnings
for the betterment of their properties held
by the control of the two Pactfcs. The
adoption of liberal disbursement policy
in this case was accepted as even more
striking than In the case Of the dividend
declaration on United States Steel common.
Motives for the Action.
The differences drawn showed consider
able variation in the motives attributed for
this action, ranging from a conservative but
convinced faith in the sound prospect of an
indefinite continuance of the highly pros
porous conditions OF industry and business,
or, coming next, recognition or the neces-
sty of raising the rate of income return on
securities to conform to the high interest
rates on money in order to justify the ex-
listing level Of prices. or, finally, specula-
tive purpose to afford an active demand for
securities for the purpose Of effecting dis
tribution of holdings to the general public.
From all of these assumptions as to mo-
tives the speculative element was able to
conclude that the most powerful financial
interests in the country were embarked in
concert upon an espousal of maintained
prices for securities.
The action OF the market previous to the
Pacific dividend announcements gave evil
dence of some hestancy and cautious
watching for signs OF elimination in the
upward movement. This was due In part
to the extent and duration to which the
upward movement has been carried already.
Another restraining fact was the renewed
consideration invited to the money situa-
ton by the rise in interest rates
The obscurity regarding an engagement
of gold in London to the amount of over
$2O0O.0O0. which was announced early In
the week as secured for New York, empha-
sized the renewed doubts over the money
outlook. No admissions could be secured
from any New York bank of having made
the engagement which was secured at
price that offered no profit for shipment to
New York. Foreign exchange rates moved
up afterward.
Movement Of Gold.
The likelihood of an early inward move
ment of gold became doubtful. With sur
plus reserves OF the banks down to $3.271.-
b25 last week. and with the demands from
the interior for harvesting purposes already
in force. the Importance of a source Of xup-
ply to replenish the prospective drain gain
ed additional Importance. The statement
of the country's foreign trade for July,
which appeared during the week. was not
reassuring as to the strength of the foreign
exchange situation compared with previous
years. The relatively greater growth in the
value of imports than of exports left the
excess value of exports for the month at
only S3.S2S,9Jo. as against $23, AT ,Sl5 in July
of last year
There is well-founded confidence that the
large ~exportable surplus and the urgent
foreign needs of our principal domestic
products now definitely indicated will sup
ply sufficient exchange to move gold to
New York when the movement of the crops
Is under way.
For the seven months past the excess
value OF our exports has risen $4,000 600
that of last wear SCc4 412 343 Rut