Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-12-19
NEW YORK STOCKS and BONDS
Demoralising Break in st, Paul WSaksnI
the Entire Market,
HILL ISSUES CONTINUE TO DECLINE
Sc. Paul Drops 10 6-s Points, Great
Northern Preferred 10 Ia, North
ern Pacific s Ia and Union
Pacific Points.

NEW YORK, Dec 1S-The whole OF the
days stock market centered in St Paul
and the demoralized break In that security
weakened the rest of the market effectually
The action OF ST. Paul was accepted as
demonstration that the rate Of issue Of
new capital has become a subject Of grave
uneasness for It's effect on future values
OF securities. The recent violent decline
in Great Northern preferred and in North
ern Pacific was regarded as conclusive on
that point, owing to number of compli-
eating Factors. IL was believed, for In
stance that the plan Of deferred delivery
In new stock, while payments were being
made on lnstallments on which interest was
to be paid at lower rate than the dividend
return on the stocks, was resented by the
Hartman interests, as their large holdings
Of the two Hin stocks would make them
lenders of the treasury resources Of the
Union Pacific to their business rivals under
this plan. 1t was for this reason that
the Hartman holdings of the Hill stocks
in large volume, with the insiders indis-
posed to support them to make a market
for the Hartman realizing.
As st. Paul continued TO advance yester-
day on the stock issue prospects, and rose
to new record at one time, II was hoped
that the special causes having to do with
the weakness OF the Hill stocks would not
apply to St. Paul. This deusion was dis
PEELED with the first quotation, for St Paul
stock this morning, which ranged from l9l
to 1888, compared with 1877 last night. With
the successive downward plunges as the
liquidation was renewed the price at one
time. touched lSS a decline Of 1875 from
I
The Hill stocks continued to slide down
wards In company and the price Of the
subscription rights on the curb to the huge
new issues Of all three stocks made wide
declines. Some dissatisfaction was ex-
pressed with the sudden closing Of the St
Paul books tomorrow for subscription
rights and the resulting confusion in ad-
| justment Of loans in which st. Paul figured
as collateral. The provision for payment
| Of 10 per cent installment Of subscription
to the new stock, which would call for
100000 on December 81, was felt to add
/ a serious complication to the very crisis OF
| the year end money settlements. Estimates
! of the sufficiency OF earnings to meet the
! large additional claims OF these great ad,
! ditions to present stock were vague, owinG
| to the impossibility of fixing the amount OF
| earnings to result from the new outlay
/ But a large Increase In requirements was
obvious and the resulting decline in tbs
margin of surplus earnings was OF marked
effect on sentiment towards the stocks
/ The attraCtiVeness of subscription rights
| from the standpoint Of the recent high
/ market prices disappeared from view en-.
/ tirely. The bears operated freely and
! bought eagerly at intervals to secure theil
profits. The resulting rallies were short
! lived and the semi-demoralized closing was
near the lowest, except for the spasmOdiC
-raly In st. Paul itself.
| Baltimore & Ohio and Reading Offered
/ points of resistance to the weakness, and
/ both were subject to rumOrs Of intended
| dividend Increases. The general weakness
was by no means commensurate with thai
| in the stocks in process OF issue imitation
/ Union Pacific was most acutely affected
! outside Of three central stocks in the days
: movement, and suffered an extreme loss
of about four points. Great Northern pre-
| ferreds extreme decline was 1917, and
| Northern Pacific 81. The sub-treasurI
operations begin to reflect the government
money relief measures the banks having
! gained 49, $4,000 on that account since the
/ last bank statement,
Money continued stringent and went t
25 per cent on call, 10 per cent for thirty
! days, S1hd9 per cent for sixty days and
| per cent bid for ninety days. The rise n
the Imperial Bank of Germanys discoun
from to per cent was Of moderate effec
in aggravating the stiffness of other none!
markets.
Bonds were heavy. Total sales par value
s., O66. 600. United States 2s advanced a pc
/ cent on call.
i The following are the quotations on tn
| New York Stock exchange;