The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-18
WALL STREET NOTES
st. Paul Is Center Of Interest
in a Dull Market.
IN NEED OF LINES
Growth of Trade with
Japan and Development of Great
Grain District Make More Roads
Urgently NecessRry-Amnlgam
Copper officials Play Foxy Game.

New York, Dec. list. Paul was fat
at one time in the forenoon, and the
difficulty in borrowing the stock was
/ taken in few quarters to mean a con-
/ test for control of the road, and as a
result a condition which virtually
amounted to a corner. This conclusion,
however, did not seem to be justified.
There was probably a condition that
virtually amounted to a corner, but it
/ is practically certain that this re-
suited from accumulation by a single
! interest rather than by competing In
/ terests. In other words, the scarcity
Of St Paul was caused by buying by
/ the Standard Oil party. and there has
/ been no effort on the part of the Hill
/ interest TO wrest control from the
hands in which It has been held for
years. The question was asked: If
| the Standard oil interests absolutely
control St. Pau, why do they keep on
/ buying? And the answer came after
the close OF business, when announce
ment was made of rights estimated TO
be equivalent to a dividend Of about 50
per cent on each class of stock, pro-
vided that present prices hold.
Within the last few days prominent
houses which had been lenders Of St.
Paul called in their stock This. Of
course, has added 10 the scarcity and
/ increased the trouble Of the short inter-
| est. Whether II has been done in re-
/ Spouse to some concerted plan TO make
/ borrowing difficult and thus force in
/ the short interest. cannot. Of course, be
/ asCertained. but popular surmise ia
vOrs the affirmative side.
On the consolidated exchange St
4 Paul sold as high as 200 IA, or SIS of a
point higher than on the New York
| stock Exchange, whore a new record
was made at 1919 SIS. II would be hard
10 say how much OF the rise on both
/ exchanges resulted from a squeeze OF
shorts, but the Withdrawals of the
stocks by lenders presumably at the
request OF interest for which it was
carried gave the impression that while
/ the prospective rights gave initial
! force TO the advance, the movement IN
its later stages was to large extent
! governed by technical conditions and
the size Of the short interests.
From the point Of view Of the bear
| trader the ST. PauTs extension to the
| Pacific Coast viii take business that
would otherwise 20 to the Hill roads.
and will, therefore restrict the growth
/ if it does not actually reduce the
volume of the business Of these lines
from its present dimensions. The Har-
riman interest, the bears further
]
/ their holdings of the Hill stocks and
putting their proceeds in St. Paul. a
view which is neither clear nor con-
sistent
At present Great Northern and
Northern Pacific cannot take care Of
/ the business OF the territory which
| they are endeavoring 20 serve. new
world power has arisen in the far East
and business with the Orient is now
/ likely to grow until the Pacific be
| comes as great a highway OF com
merce as the Atlantic. The Great
! Northern and Northern Pacific may
multiply tracks, but unless new lines
are built TO develop the possibilities Of
the sections between them the progress
/ of development at home will be re-
tarded. There is at present a need for
more facilities, and the pity Is that St
as IL is. the growth Of the country must
be held back while the Hill roads try
to grapple with the situation alone.
/ Could st. Paul help out now, the effect
/ would be so immediate, so far reaching
that the Hill roads would henceforth
| show handsome increases In net earn
! ings. because the nearer approach Of
| facilities to traffic requirement would
| cOnduce to more economical operation:
/ and II this is not Soft there is not
/ business enough for all, then there can
be no reason why any one should buy
/ st. Paul on the mere prospect OF an ex-
tension into territory where its only
source of business would be in traffic
drawn away from lines that are to-day
the best opponents of cheap transporta-
ton in this country. There may be
reasons why Hartmann interests desire
TO change from investment in the Hill
| roads into investment in St Paul. but
the prospective effect OF the proposed
| extension Of the latter cannot be one OF
them.
One house is said to have covered
$4,000 shares Of St Paul within the
past few days. and it is now rumored
that 1t was to prevent the shorts from
strengthening their position by sub
scribing for the new stock that the
vigorous movement was made to force
them In before the announcement Of
rights was published.
Should the Berlin bank rate be ad-
vanced TO 7 Der cent on Thursday, as is
now expected, it is improbable that the
higher level VIII be maintained longer
than two or three weeks as the object
aimed at VIII be the strengthening of the
banks position so that a favorable show
ing may be made at the end of the year.
One Of the Wall street news agencies
says: "Amalgamated Copper officials do
not expect to show any increase in FRO
ductiOn this year" OF course Motif they
can help it. To make an increased pro-
duction look like an increased scarcity. 10
sell 225.O00O00 pounds on the same basis
per pound as 200, 100000 pounds, and to keep
consumers full of the notion that they
will be lucky II they succeed in satisfy
ing their requirements at any sort of
price would be a feat worthy of the
men who maintained in spite of almost
every conceivable attack that the Stand
ard Oil Company was the most prosper
Gus concern in America. OF course Anal
eamated Copper officials will show as lit
tie as they can.