The Washington herald., 1906-12-01

large offerings at the latter rate by
one of the most prominent of the
National banks. The movement in the
rate recalled the prediction made by
weII-informed banker when rates were
still easy early in the week My
guess" he said, rs that call money
will go 70 20 per cent this week, but
II it does, it viii not stay there long"
The belief was that rates would
again be pretty high on Monday. but
in many quarters it was anticipated
that Secretary Shaw would before
long do something to relieve the com
mercial situation from the restraint by
H. per cent rate for time funds. The
high rates by attracting available
money into Wall street constitute a
menace to the business activities Of
the South, which the secretary it is
said. will consider it his duty to re-
move
As the semi-annuaI dividend Of IL
per cent on Atchison Will be paid to-
day it is rather early 10 talk of u
further advance OF the rate, and yet
there is good authority for the state
ment that unless the road encounters
an extremely unfavorable winter, the
common stock Will be placed on a
per cent basis six months hence. Cur
rent earnings are highly satisfactory
and IL is hattering testimony to the
management of the property that tie
gross receipts for the month OF
October were considerably in excess
OF $4,000, ,OOO when il is considered
that ten years ago they amounted to
only $2S,000,000 for an entire year.
If the road has spent money freely
since its reorganization. the remark
able growth of earnings fully justifes
the expenditures. and the Atchison OF
to-day is very different proposition
IN earning power. and in everything
that goes to make a railroad, from the
Atchison Of three or four years ago
The road earned 1ia per cent on The
common stock last year. and gives prom
ise Of considerably better results this
year, 50 that there is no reason why in
fiuentlaI interests should not have made
up their minds so far in advance that
when the dividend question comes up for
consideration In the spring they viii vote
for an increase.
II James J. Hill never pays any at
tention to the stock market. the stock
market pays plenty of attention to him.
When he comes TO New York the prices Of
his stocks go up; when he leaves they
react Mr. Hill may be wholly uncon-
scious of this fact, or Of the reason why
il happens so, and it must be said that if
he ever has had anything to DO with
manipulating the market the street has
never been able TO figure out how he
did it,
It can be definitely stated that he sits
at work in his Office on days when his
stocks are the most active on the list
without ever receiving a quotation. and
50 far as callers who come often and re-
main long can see. all his actions bear
out his assertion that he has no time to
waste on the doings of the stock brokers.
Stocks Boom on His Arrival
Mr. Hill was in town to-day. busy at
his office, and just as soon as the street
became aware Of the fact the price of
Northern Pacific started upward at
lively clip. with Great Northern following
at a respectful distance The supposition
was that another melon was about ready
TO slice. and that the aIlotments would
be handed around In the near future
The Northern Pacific melon patch has
been the object of a great deal OF AIT
Hills attention for a long time, and the
fruit just now brought to maturity is the
result of careful years of cultivation. dur
ing which money that should have gone
TO stockholders has been put back into
the property. The result of these dis
tOTted profits viii be distributed to hold
ers Of Northern Pacific IN rights of a
value estimated at an eqr ivalent Of a div
idend OF about 70 per cent on the stock
OF the road
Since reorganization no addition has
been made to the amount of Northern
Pacific stock, and the road, while max
ing very important additions to its prop
erty. has sold comparatively few bonds
In the last ten years, but the increase
in the value of the property viii now
enable the road to bear an addition to
its capitalization. and by selling. pav an
allotment of the stock that IS worth i
great deal more. to give its stockholders
an opportunity to derive benefit from the
expenditures on the road in the years
past of money that really belonged TO
them.
This. however, is not all, for it is I'M
derstood that a plan is on foot for the
substitution for joint control of the Bur
lington By Northern Pacific and Great
Northern Of complete control by the lat
ter road, which will involve the payment
of a large sum TO Northern Pacific for the
surrender of its equity. The money re-
Ceived for this equity will, it is said, be
made the basis of a cash dividend of
about 25 per cent on Northern Pacific
stock.
Two Melons for n. p.
Whether the stock rights, said to be
worth between 35 and 40. viii precede or
follow the cash distribution is matter
on which opinion can be classed about
even.
For once the advance in the Hill stocks
had no important stimulating effect on
the Hartman issues. There was a rea-
son. The street did not at all like the
news, which had come out OF the West
over the holiday, regarding the alleged
way in which lands had been acquired,
and the discrimination practiced in the
coal trade, both Of which. it was believed.
would be the subject of a good deal OF
discussion during the coming session of
Congress.
London, which was a considerable seller
Of both Union Pacific and Southern Pa
cifc, had a tip that the President. in mis-
message. would make rather pointed ref
erenCe to q supposed disregard of the
antitrust law by the Hartman combnai
tion. The largest interest seemed to
have taken no measures for a support
apparently pTefeTring TO let the stocks
take care Of themselves for the time
being.
Dividend rumors regarding Brooklyn
Rapid Transit are somewhat insistent in
rather good quarters, and there Is, there
fore, no little suspicion of the reports
about the alleged unsatisfactory cOndi-
tiOn of the property which il Is believed