The Montgomery advertiser., 1906-08-18
THE STOCK MARKET
PACIFIC STOCKS STILL HOLD THE
 FLOOR.
OficfaI Announcement of Meeting of Executive Committees of Two Railway Companies Eiectrt-
 fled All of Wall Street.

NeweYork. Aug. l7.--Unlon Pacific on 10 per cent dividend basis ana dend basis. oficiai announcement ol this result of yesterdays meeting or the executive committees of the two most immediately after the operations in the stock market had begun today. Speculative excitement blazed up or a sudden and instead of burning Itself such an outbreak after period of continued speculation. the flame thus kindled increased and spread until practically all parts of the stock G ex- vent demand to buy stocks: wal Street unquestionably was taken by surprise.
 Wall Street surprises commonly are not due to under estimation of com ing events. The usual rule Is that q period of speculative excitement such as has occurred this week in the liar riman Pacific gives rise to so many excited oontectures partly voluntary and partly melted for a purpose that the actual event on which specula- ment and more likely. rush to sell than an extension of the buying movement. Yesterday rumor mongers who alleged that Southern Pacific was 1-2 per cent rather than the expect ed per cent. were regarded as ex- travagant As for the prospects or Union Pacific stockholders the most osss,s half year would be disbursed on that stock, opinion being divided only as ceding per cent rate would be incor- porated in regular 3 1-2 per cent dividend or distinguished as Ia per cent extra in addition to the main tained per cent regular rate, The dazzling effect of the announcement of a regular per cent semi annuai dividend on speculative imagination lon leaped to the conclusion that there was decision representing financial power and authority of the tirst mag nitude and likely to effect. by It's in. fiuence and example. the control or corporate management as whole, that the period making desirable strict retrenchnlent in the disbursement Of corporate profits for the expansion os plant and equipment had reached it's completion and that the way open Tor the enjoyment by stockholders Of fuller share of earnings. secure in tne capacity of their property to care for the requirements on it and to main tain the earnings power thus defined. The eonxaisive nsa rise in nssa union facine clae anxiety at first. owing to the distress of an uncovered short interest which was indicated. The movement else
  and Irregular for a time. The general deductions drawn from the dividend action on the Pacif1cs was so import ant and far-reaching. however, to all low the general advance to be long restrained The new income basis of- fered by the Paciflcs themselves, es- pecially Union Pacific, left such wide room for readjustment in the price that the rise was vigorously extended by a spasmodic movement Other stocks most acutely affected naturally were those in which conditions bore Paciflc. Pennsylvania and New York Central were the principal examples by reason of their large stockho oidings of controlled companies.
 The increase Up the Union Pacinc dividend was definitely assigned to the ments. Hence. the analogy. The strength of the market. however, be- came fairly comprehensive. The con- tinued rise in interest rates on time loans and the testimony of the cur rency movement of the growth Of the were forced out of sight almost com pleteIy in the speculative enthusiasm of the day. Union Pacific's extreme high price was 179 3-4 compared with I62 5-S last night. Southern Pacific rose to s9 early in the day. an extreme to that level later. Pennsylvania gained 6, New York Central { and the active list generally from to 3. The irregular closing below the best of the day was the natural result of realiz- ing the days inviting profits, Bonds $2, 2,930. .000. United States bonds were all unchanged on call.
 NEW YORK CLOSING STOCK LIST.