The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-19
INTEREST CENTERS
IN ST, PAUL BREAK
Decentralization Extends to Rest
of the Market
HARTMAN Is REALIZING
Resents Deferred Delivery Plan of Hill
Stocks Making Union Pacific Lend
ers of Treasury Resources
to the Rivals.
HARTMAN Is REALIZING

New York, December iS.-The whole of
the days stool; market centered on st.
Paul and the demoralized break in that
security weakened the rest of the mar
ket effectively The action of St. Paul
vas accepted as demonstration that the
rate of issue of capital has become a
subject of grave unoasiness for its eff
feet on future values of securities.
The recent violent decline in Great
Northern. preferred and in Northern Pa
elise was regarded as inconclusiFe on
that point owing to a number OF COM
plicating factors. It was believed, for
instance. that the plan OF deferred de-
livery in new stock while payments were
being made on installmenIs, on which in
terent was to be paid at a lower rate
than the dividend return on the stocks
was resented by The Hartman inter-
ests, AS this large holding of the two
Hill stocks would make them lenders of
the treasury resources of the Union Pa
clfc to their business rivals under this
plan
1t was for this reason that the IIarri-
man holdings of the Hill stocks was sup.
posed to be coming on the market in
Barge volume with the insiders indisposed
So support them to make a market for
the Hartman realizing. AS st. Paul
continued to advance yesterday on the
stock issue prospects and rose to a new
record at one time, it was hoped that
the special causes having to do with the
weakness of the Hill stocks would not ap-
ply to ST. Paul. This deluson was dis
PEELED at the first quotation for St Paul
this morning, which ranged from 1871 to
Ill ,, ,s..I,t
the successive downward plunges as the
liquidation was renewed, the price at
one time roaced 1S2, u decline of 1873 from
the high leve, touched yesterday morn
ing.
The Hill stocks continued to slide down.
ward 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
expressed at the sudden closing of the St
Paul books tomorrow for reduction of
the rights, and the resulting confusion
in adjustment Of loans in which st. Paul
figures as collateral.
The provision for payment of 10 per
cent installment of subscription to the
new stock which would call for $4,000
600 on December 81. was felt to add a seri-
Gus 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
additions to present stock, was vague ow-
Ing to the impossibilty of fixing the
amount of earnings to result from the
new outlay But a large increase in re-
nuirements was obvious and the result
ing decline i'm the margin of sur
plus earnings was of marked effect on
sentiment towards the stocks. The at
Effectiveness of subscription right from
the standpoint of the present high mar
let prices disappeared from view en-
tirely. The bears operated freely and
bought eagerly at intervals to secure thei.'
profits. The resulting rallies were short
lived, and the semi-demoraizerd closing
was near the lowest, except FOR the spas
modc rally in st. Paul itself. Bati-
more and hio and Reading offered poins
of resistance to the weakness. and both
were subject of l1mors Of intended div
idend Increases. The general weakness
was by no r'nene eommensurnte with that
IN the stnore IN PROCESS of iseio ipfa tion.
T'Eion Paoife was NOS. acutelr affect
ed outside Of the three pnnt- earlier
slump and suffered an extra loss of about
points. Great Northern preferred's ex-
IRENE decline was 101a and Northern Pa
CITIES 81.
The sub-treasur operations begin to
reflect the government money relief meas
.aes, the banks having gained $3.472vvo on
that account since the last bank state