The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-28
STOCKS ON A BOOM
Upward Movement General.
with fills Leading.
LONDON MAKES POOR. REPORT
Loss of Nearly Five Millions in Bull
lion by Bank of England-StOcES-
pany of Chicago Asked to Turn
Over Property TO New Concern.

New York. Dec 27-The distinct re-
silence noted in the stock market yester-
day broadened out to-day into a strong
and general upward movement in the
price of securities. There were several
pauses during the day in the rise. but no
reactions. and the advance in the market
was practically continuous.
II was greatest of course III those
stocks which have recently declined most.
extreme gains being made. which We're
nearly all retained at the close, OF So
points each IN Northern Pacific and Great
Northern preferred. ~ in Union Pacific
and ST. Paul. four in Reading, and az in
Canadian Pacific. while gains of between
] and points were common in the other
leading stocks
There were two forces which. according
TO common judgment. had most to do with
the days market. One of these was the
seeming probability that the years an
nuaI financial settlements now almost i'm
mediately at hand would take place with
out the severe monetary stress which was
recently threatened; responsibility for this
upshot of the matter being no doubt large
~ dae 10 the recent heavy liquidation,
have required so much money 10 carry
them speculativeiy.
Call Money at Per Cent.
Call money to-day did not get above Il
per cent. and, although bank renewals
We're made at per cent. most of the
days loans made on the floor Of the stock
exchange were not above per cent.
There was, it is true, no alteration to-day
in time money rates, but conditions were
such as to warrant dissipation Of fears
OF an extreme shortening of the supply
of money for speculative use in the few
days around the end Of the year
The other development, although it could
not really be called such, favorable TO the
market to-day assumed the form Of ru-
mOrs that late yesterday afternoon various
large accounts opened for the rise in the
Great Northern preferred and Northern
Pacific shares had passed at private sale
from hands that were TO longer able to
care for them to stronger financial inter
ests. These stories were not verified, but
it was generally believed that there was
basis for them and that further forced
liquidation in the Hill stocks that had
been "overhanding the market was
aveTted.
Beyond any question, too, a large share
of the days advance in prices was dis
tinctly attributable TO the retreat of the
short interest in the market, which. in the
course of the last ten days, had assumed
considerable proportions.
The Bank of England made. perhaps.
a poorer weekly report of condition to-day
than had been looked for. showing a loss
in bullion during the week Of nearly
100000, and a proportion OF reserves
against liabilities of 31-l3 per cent, COM
pared with 1854 per cent a week ago. The
banks condition is, of course, much
stronger than it was at this time last
year a further point of difference be
tween the two periods being the impor-
tant fact that a year ago the banks
minimum rate of discount was only per
cent, as against to-days high rate of 6
per cent
German Banks REPORT Bad.
The Imperial Bank Of Germany's week
" report to-day was. too. not over
strong. A favorable feature of the gen
eral situation continues to be the weak
ness Of the foreign exchange market
here Sterling in this market is now
clearly at a point where gold could be
withdrawn for our benefit from London,
and the only reason why it is not so with
drawn is that this course would probably
confusion The exact construction chat
must be placed upon such a state of az
fairs. and the meaning that it has 20 our
security market is at the moment. and
has been for some time. a matter Of in
terested discussion in high financial cir
cles
Reference is made 10 the very singular
proposition emanating from a concern
known as the Western Ice Company and
addressed TO the stockholders Of the
Knickerbocker Ice Company, of Chicago,
asking these stockholders TO turn over
their property to the Western Ice man
agement
The Knickerbocker Ice Company has
been. as is we'll known. the leading con-
Germ engaged in the distribution OF ice in
the city Of Chicago. It has had its ups
and downs like all other corporations
doing a local business in that city, but it
has never failed to earn and pay the In
teTest on its bonds and preferred stock,
and In the present calendar year viii
show earnings of over 16 per cent on its
common shares.
Company in Good Condition.
The company is, in other words, in
a fiourishing condition, and owing to the
firm grip that it has attained upon the
business situation in its territory. has
very bright prospects in the future. Now
turns up the Western Ice Company,
whose possession of more than utterly
trivial facilities for conducting an ien
business IN Chicago is undisclosed, If, in
deed 1t does not turn out to-he fact
that the company Is a mere paper cOrpO-
ration. The Western Ice Company asks
the Knickerbocker Ice Company stock
holders TO turn over their stock to the
former corporation. receiving therefor
the Western Ice Company bonds and a
certain additional quantity OF stock.
What possible motive KnickerbockeI
Ice Company shareholder might be eX-
pected to have for divesting himself OF
his property in this way is not at all
clear; and what is very clear is that be
is asked to surrender his stock and the
control Of his company, receiving in turn
bonds representing an unduly small pro-
portion Of the stock handed over and the
stock of a company whose practical sole
asset is the possession Of the property
which the Knickerbocker Ice Company
people have parted with. Impudent and
audacious as this scheme is. it is under
stood shat various stockholders of the
Knickerbocker Ice Company have unwit-
tingiy turned in their shares in the way
described. under the utterly erroneous
impression that some sort Of a reoTgani-
zation of their company was impending
and that they were forced to enter into
the arrangement or lose their property.
A protective committee of the Knicker-
booker Ice Company shareholders has
been formed. and has endeavored 10 put
the facts of the case plainly in a circular
T., +Na ehorahoI5arss fntarnct and