The Washington herald., 1906-11-18
WALL STREET NOTES
Failure to Cut Hill Melons
Disappointing to Traders.
BULL TIP ON UNION PACIFIC
London n Strong Buyer as Result Of
Inside InfOrmatiOn-LOoki for
Another Rise in Steel Common.
Illinois Central Expected to Make
Good Showing in the Future.

New York. Nov. T.-There was some
/ no announcement was made OF the slic-
/ ing Of the Hill melons. but some Of the
bulls asserted that good news would come
/ to holders of Great Northern within a
/ few days.
/ Wall street, which has been so much
! interested in Mr. Hills hasty return to
| New York. would probably understand the
matter better if it knew the reason why
| he had gone away. Before leaving for
the West more than a week ago Mr.. Hill
had been at work for weeks on the de-
tails of the plans on foot for the benefit
! Of stockholders Of Great Northern and
Northern Pacific
He left for the double reason that he
was down for a lecture at Chicago. and
! that the unsettled aspect of the labor
| situation made the time unpropitious for
special distribution to stockholders. He
has since delivered his lecture. and the
labor situation has taken turn for the
better, so that there was no reason why
the work laid down ten days ago should
not again be taken Up in the past day
or two, especially as for family reasons
the coming week could not be devoted to
it. There was no urgent call from any
where, but Mr.. Hill, who is a worker
determined Of his own accord to resume
work on his plans just as soon as the
| obstacles to their consummation were
removed.
London had a strong bull tip on Union
Pacific, and not only sent over a higher
level Of quotations but followed UP the
business transacted in its own market by
sending a large volume OF buying orders
for execution here. The bullish sentiment
On the other side made its effect felt in
New York, as II has often happened that
London has had earlier confirmation OF
movements in the stock than has been
at the disposal Of the average local
operator Notwithstanding that the official
explanation of the peculia. dividend in
cideHt last summer was that 1t was de-
sired to give New York the benefit Of the
news first.
All the arguments which have become
familiar IN connection with upward move
meGts in Union Pacific were revived, the
commonest and the most logical being
that the company would benefit materially
from its participation in the good things
coming on when Great Northern and
Union Pacific, soon TO be published, would
make a very favorable showing.
Tuesday was the day set down in the
rumors as the one on which this docu-
ment would make its appearance. On
General principles conservative brokers
argued, the stock was by no means dear,
and there were so many points favorable
% speculation that the prospects prom
ised a considerable rise. while. IN the
event OF any untOward circumstance. the
intrinsic merit precluded the danger of a
serious decline
When such views were expressed even
IN the most conservative quarters IL is
hardly to be wondered at that the multi
tude OF tips Of the stock received a good
deal Of attention as the result not only
Of starting a covering movement. but OF
bringing in a larger volume of outside
buying for the rise than has been seen at
one time on any stock for several weeks
past.
Some time in the future a new company
will probably be organized under the name
Of the Union Pacific Company, 10 take
over the securities owned by Union Pa
cifc so that the profits from this source
may be distributed subsequently from
those resulting directly from the opera
tions OF Union Pacific Railway.
The new company may operate the Ore
gon Short Line. the Oregon Railroad and
Navigation. and some other properties,
just as the Pennsylvania company oper-
vania system, and In addition act as the
holding company for the stocks owned
such as these Of Southern Pacific the Hill
roads. Illinois Central. and Baltimore and
Ohio The object is 10 forestaIl the agi;a-
tion which might arise If in the future the
profits from all sources became so great
that 10 distribute them on the present
stock would involve a very high rate Of
dividend
No new policy is involved, the only oh
ject sought being to make Il clear thai
the rates are not exorbitant II. for in
stance, dividends Of Is per cent were
paid on Union Pacific common, agltators
would be likely to attribute the large
profits almost entirely to excessive tariffs
If there is any expectation that Illinois
Central viii be merged into some other
big system it is likely to be disappointed.
The intention is to give the road a more
progressive management, and to develop
possibilities which for many years have
been comparatively neglected There Is
hardly any question that Illinois Central
viii hereafter show relatively better re-
suits than at any time in the past. or that
in spite Of a certain sUbserviency to
other Hartman roads the property will in
time be enabled to make increased returns
to its stockholders
Il don't know what is going on i'm
Steel" said one of the most intelligent
observers On the floor of the stock ex-
change, but any one can see that it acts
very strong If ever a stock should be
bought on looks. it is this one at this
minute"
Once again the street is trying to guess
the meaning of very heavy buying Of
Steel by a Speculative" house which was
also large buyer at the beginning of the
movement that d few weeks ago carried
the price above &C.
COTTON MARKET.