The Washington herald., 1906-11-23
Dissatisfaction with Terms
of Great Northern Deal.
PRICES FALL AS A RESULT
AunaIea mated COpper's Movements
Not Clear to Market. as the Posi-
tion of Standard Oil Is Kept Secret.
Future of Coal Property in ReIa-
ton to Railroads Interesting Topic.

! New York. Nov AS mas frequently
happened in the past year, good news was
/ availed of yesterday for profit taking in
the general list This was natural, for
all important developments affecting Wall
street are more or less discounted, specu-
lators taking chances on the Tumors
which usually precede official announce
ments.
How far the reaction will go must de-
I pend in a large measure on the extent Of
the proft-taking movement, although in
such cases there is a good deal of short
selling 10 be reckoned with. but conserva-
tive interests express the opinion that IN
this instance the decline will not be great
Bankers point to the easier situation in
money. and the further help which would
/ be rendered by the selling of stocks. in
support of the contention that there is
little to worry the wen-margined bull at
present
The street professed 10 be dissatisfied
/ with the terms of the Great Northern ore
deal. and the price of Great Northern on
/ the exchange and the trust certificates
on the curb declined in consequence. It
/ was figured that the highest dividend that
! could be paid on the certificates in the
I first year was per cent, and that as
I this would not give them a higher valua-
tion than %, or thereabout. Great
/ Northern as ! per cent stock would
/ oe selling at q pretty high level. In gooI
/ quarters it was said. however, that there
would be valuable rights on a new issue
OF Great Northern stock early in 1901. and
that at about the same time similar
Z Windfall would be secured by holders
/ OF NOrtheTH Pacific
! Dealings In the Great Northern certif-
! Gates on the curb aggregated a total of
300 shares, and the price dropped from
! 9llz 10 s. On the preceding day. before
4. the official announcement of the plan was
made. quotations ruled around o..
Just what was going on In Amalgamatsj
. Copper the traders were unable to figure
out. There were plenty Of tips and plen-
! ty of buying orders. but a stream Of
stock came from somewhere that made
( it Impossible for the bulls to maintain
I the price above H. and this tended 10
4 turn opinion toward the conclusion that
the bullish operations were in the hands
Of pool formed some days ago without
, tht cooperation Of Standard Oil inter-
/ 5sts.
The pool operation seems To have been
/ undertaken IN the belief that q public fol-
/ lowing could be secured. as the rise IN St
/ Paul had created a strong impression that
1 % Broadway was the center from which
/ |bullishncss on the market radiated II has
/ frequently been made evident that stand
/ ard OH interests are not disposed 10
( tolerate encroachment on their preserves.
and unless the present pool has assur-
ances Of the support, IL can hardly be
/ very successful The policy of Standard
/ on interests In regard 10 movements Ia
/ their own stocks seems 10 be to make
tie move or mar it-never to follow
/ Z. II Hartman was reported to have
) reached Chicago on his way back TO New
York, and this revived the rumor that the
/ Union Pacific annual report would be
I published in the near future. The mat
I ter cf giving the document 10 the public
la IN mr- Harrimaus hands and as he
. was expected 10 reach this city within
! tEtnty-lDur hours, IL was believed that
/ wall street might not be kept in sus-
/ peLse over the end Of the present week.
The announcement Of the Great North
ern plan lent new interest TO the expect ed
document, as. Of course. Union PaciGc's
participation in the deal will depend on
Jhe amount Of Great Northern which Il
stiil retains, and despite the intimations
/ 10 the contrary, made at various times
/ during the year, II is believed that the
! Hartman Company is still a large stock
. holder I'm the principal Hill road At
f. times when the general market showed
signs OF heaviness. Onion Pacific main
+ tanned good strength, but while this auai-
ity was attributed in some quarters 10
. favorable anticipation OF the annual re-
/ p0Tt. there was very respectable num-
! Der Of brokers who were suspicious that
I II was really the result Of manipuIa tion
. designed TO conceal realizing i'm other
/ stocks. There was apparent a not incou-
/ siderable short interest that had been put
/ out on the talk of an inquiry into the
/ legality of some Of the cJmpany's land
/ holdings, and the covering Of this was a
/ factor Of some consequence The decline
in the last half hour left the character Of
the days operations all the more doubtful.
As the Great Northern plan showed how
it could be done. the story that the coal
properties would be separated from the
/ anthracite roads was revived and caused
a sharp advance in this group Of stocks.
/ The defect in the rumOrs on the same
( subject heretofore has been that the
/ distribution Of stocks Of the coal COM
panies TO holders of the stocks of the
railroads left the way open for SOME other
! interest TO obtain control Of the coal
properties by purchase in the market
Under tie Hill plan. or a modification
of il 10 meet somewhat different cir
/ cumstances control Of the coal properties
could be indefinitely retained for the
benefit of the stockholders of the road
through trustees, and as, of course, the
/ beneficial certificates have no voting now
er. it would make little difference what
hands they fell into. As apparently the
new rate law viii compel a separation of
coal properties from the railroads the
/ belief is entertained that some such plan
as that announced by Great Northern
will be adopted
The consistent strength Of Mexican Ma
tional issues bears out the statement
made, some time ago on good authority
that at the next dividend period the rate
on the first preferred would be increased.
The initial payment Of 1 per cent was
made on August 1. the understanding at
that time being that the stock was there
by placed on a per cent basis. That il
\ should already be practically discarded
to make a larger distribution next time
! is strong testimony to the confidence with
which the leading interests in the COM
pany regard the future Of the road, Mex
lean National is practically controlled by
/ the government of Mexico, but questions
of policy, it is supposed, are largely de-
| termined by Speyer & Co., of this city.
and the well-knOwn conservatism Of that
firm is a sufficient guarantee that nothing
viii be done that is not abundantly justi-
1rrs cgr~
/ Of the proposed action.
The earnings OF the road continue to
show gratifying increases, but this in it
| salf runt1Id NOT he nnnsidarad q en- aicin-,.