The Montgomery advertiser., 1906-09-05
THE STOCK MARKET
THE EXCITED SPECULATION IS
 KEPT UP.
Tone Becomes Feverish in the Course or the Dey--Prices Break When Call Money Goes up
 to 90 Per Cent.

New York, Sept 4.-The excited spec although on a somewhat diminished scale of activity fro mthat of last week Ine tone of the market become fever ish in the course of the day. This was principally due to the contending effects of speculative furor on the one hand and the Tightening money mar ket on the other. Prices broke all around when call money reached 3O per cent. Incidental to the furious trading in and out of the market by professional operators and by habitual spectators of the millionaire class a churntng process was kept up on a gigantic. scale consisting of manipuia- tive orders placed in the market for sources solely for effect on prices.
 This highly characteristic of pc rfod of speculative excess when all news Is turned to one way of inter- tive prospects. An instance was the reception given to the official am 1ouncement that the Pennsylvania Railroad had divested itself of owner ship of large proportion of It's hold ings in Baltimore and Ohio and Nor folk and Western. At the time of the purchase of these holdings 1t was made ground for strong buying of the stocks because the large supply re- moved rom the market by the Penns2l-
 
 from any pressure on the market of free offerings. So far from showing any fears of the effect on prices of an additional floating market supply Bal tmore and Ohio was made favorite of the speculation.
 This stock has been notably back ward in responding to favorable news developments mp to this time, even in- from to per cent. The argument was heard today that this indicated that the Pennsylvania holdings of the stock had heen coming on the market for some time past. leaving the way for the present advance. The accom- panying rise in Reading showed that the suggested nolicy of investment of ownership in subsidiary companies was without disturbing effect on that stock, control of which is effectively par celled out amongst the other trunk lines. The stand taken by the Penn sylv vania company in admitting benefits for railroad companies from the new railroad rate law Is in strong contrast with the depressing effect on stocks of the progressive steps in securing the enactment of the law.
 The benefit to accrue to railroads according to the Pennsylvania official view Is to be by maintaining stable rates and doing away with the ne cessity for secret rebates, costly to the railroads and to destructive com petition for business progress to see in tnese COnulIlO1S tHe enulnS or the ne- cessity for the controlling voices of the competing lines seems to offer a destructive argument for the rrorosed deals for additional control which have been potent factor in the present great speculation. The alleged purpose of the Southern Pacific to control the St. Paul continued to keep the latter stock in the forefront of the specula- tion during the day. The speculation showed every symptom of understrain- ed progress until it was forcibly ar rested by the practical exhaustion of available funds in the call loan mar ket.
 Withdrawals to meet the necessities of other departments of the money to F3o per cent. in the afternoon and induced large speculative liquidation of forced character. Union Pacific and American Smelling suffered most in this selling but the whole market was forced downwards sharply, converting the considerable earliep gains into gem eral net losses on the day. Gold to New York to the extent of $1,700,- 900. partly in Londan and in Paris.
 But this was scarcely more than sufficient to offset the days losses to the Government and by telegraphic transfer to San Francisco while ship ments of currency to the interior by express were on a heavy scale, with time to come. The stock market clos ed feverish and unsettled in conse- quence.
 Bonds were irregular. Total sales par value, $2,330.o00 United States bonds were unchanged on call.
 NEW YORK CLOSING STOCK LIST.