Los Angeles herald., 1906-12-19
BY Associated Press.

NEW YORK. Dec. 1S.-The whole of
the days stock market centered in St
Paul and the demoralized break in
that security weakened the rest of the
market effectually The action of ST
Paul was accepted a s a demonstration
that the rate of issue of new capital
has become a subject of grave uneasi-
ness for its effect on future values of
securities. The recent violent decline
in Great Northern preferred and in
Northern Pacific was regarded as in
conclusive on that point owing to
number of complicating factors.
1t was believed for instance, that
the plan of deferred delivery in new
stock while payments were being made
on installments of which interest was
to be paid at lower rate than the
dividend return on the stocks was re-
sorted to by the Harrima interests s
their large holdings on the two Hill
stocks would make them lenders of
the treasury resources of the Union
Pacific to their business rivals under
this plan. 1t was for this reason that
the Hartman holdings of the Hill
stocks were supposed to be coming on
the market in large volume with the
insiders indisposed to support them to
make a market for the Hartman real
izing.
AS St. Paul continued to advance
yesterday on the stock issue prospects
and rose to a new record at one time. 1t
was hoped that special causes having
10 90 WITH Ine WtdkHtSS VI lIlt Illll
stocks did not apply to the stock. This
illusion was dispelled with the first
quotation for ST. Paul this morning.
which ranged from 1871 W193, com
pared with 1917 last night. With the
downward successful plunges as the
liquidation continued, the price at one
time reached 1873, decline of 16 81 from
the high level touched yesterday.
The Hill stocks continued to slide
downward in company and the price
of the subscription rights on the curb
to the huge new issues of all three
stocks made wide declines The pro-
vision for the payment of lO-per-
cent inStallment of subscription to the
new St Paul stock, which would call
for 100000 900 on December 81, was
felt to add a serious complication to
the very crisis of the year-end money
settlements.
Estimates of the suffciency of earn
ings to meet the large additional
claims of these great additions to the
present stock were vague. owing TO
the impossibility of fixing the amount
of exchanges to resulting new OUTLAWS.
But a large increase in requirements
was obvious and the resulting decline
in the margin of surplus earnings was
of marked effect on sentiment towards
the stocks.
bought eagerly at intervals to secure
their profits. The resulting rallies
were shortlived, and the semi democrat
lied closing was near Ine lowest, eA
cept for the spasmodic rally in ST. PAU
itself
Union Pacific was most acutely af-,
fected outside of the three central
stocks in the days movement, and suf-
fered a loss of about points. Great
Northern preferred's extreme decline
was 1O1a and Northern Pacific's SA.
The sub-treasury operations began
10 reflect the government money relief
measures, tie banks having gained
. q > bat account since the last
banks statement.
Money was stringent and went to
25 per cent on call, 10 per cent for 30
days, $500 per cent for 60 days, and
per cent bid for 80 days.
The rise in the Imperial bank OF
Germany's discount rate from 6 to Z
per cent was of moderate effect in
aggravating the stiffness of other
money markets.
Bonds were heavy. Total sales, par
value. $2,066,O00
United States Is advanced "A Per
cent on call