The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-23
FINANCIAL AND COMMERCIAL.
SATURDAY, Dec. ~.

SATURDAY, Dec. ~.
After two days Of a rallying movement in
prices which was not admittedly of over-
spirited character liquidation broke out
afresh to-day in the security market, CEN
tring, as il has done throughout the week,
in the Hill group Of stocks. The price Of the
Northern Pacific and Great Northern shares
fell 8& and ~ points respectively, reaching
the lowest Level yet touched by them since
the recent decline in the market began
The Great Northern ore certificates held
more strongly their closing price for the
day still being very considerably above the
low record for them made last Wednesday.
81. Paul common fell "a points, Union
Pacific ~, and there were corresponding
declines in other leading stocks. A promi7
nent feature of the market was the heavy
selling Of the Reading common shares,
which broke from l3p. their closing price
yesterday, to 1891, and il was TO the evil
dent pressure Of liquidation in this one
stock and TO the announcement shortly
after the conclusion of the first hour or
business OF the failure of a Stock Exchange
Arm that the general results of the day were
attributed. The assignment of the Stock
Exchange house in question was commonly
regarded not as of great but Of considerable
Importance, inasmuch as the firm did a gen.
eral commission house business, had sew
eral branches and was in good standing in
financial circles. There is little doubt that
much of the selling of stocks to-day was
directly on account ofathis failure. The
heaviness of Reading has been noticeable
In the market ever since the refusal Of the
directors OF the company at their meeting
a few days ago to increase the dividend dis
tribution on the common shares. As a
merely tper cent dividend paying stock the
price OF Reading common is, of course.
even at its present level. disproportionately
high. The earnings of the company, more
over, as reported for the present year have
not made a very encouraging showing.
On the other hand, it is well established that
considerations Of this kind are not those
by which the Reading property or is future
value should be judged. II rs known that
The company possesses large undivided
equities and is continually making so-called
concealed earnings Of various descriptions.
The stock is 80 closely held, however, as to
make sharp advances or declines in its price
inevitable upon a limited volume of actual
buying or selling. A matter of some weightin
the marketduring theday was, of course, the
threats Of a tying up of the business at the
local terminals OF some of the trunk railway
lines by a strike of the yardmen for higher
wages. But it was still the prevailing belief
that the difficulty would be adjusted.
The bank statement to-day appeared to
exercise very little influence in the specu-
lative trading in the market. The cash
held by the banks increased SO, 1926 900, or
about as had been looked for, but the sur
prisinR item OF the return was a decrease
OF only sass 900 in bank loans, whereas a
pouch larger reduction OF loans had been
looked for in view OF the marking down
during the week in the prices of securities.
The bank surplus was restored to 8 3,2SO,9 900,
which is not an extraordinarily low amount
for the time of the year. The week ends,
naturally, with an uncertain although by
no means ~pessimistic feeling on the part Of
habitual operators in the market. Bust
ness in the country everywhere continues
10 present a scene Of unrivalled prosperity,
and although various exigencies have I'M
doubtedly caused recently the selling OF a
moderate quantity of stocks, the ruling
opinion is that all this represents only a
process Of temporary adjustment of insn-
cial conditions that can do no serious harm.
or actual developments during the week.
aside from the st. Paul's issue of stock
and other matters that have already been
sufficiently discussed in these columns,
one that has excited as much interest as
any other, perhaps, has been the COM
plants of a car shortage, particularly in the
West and in districts where a species of coal
famine has been felt. Heated charges of
conspiracy, Of a holding back Of cars for ul-
terror purposes, and so forth, nave been
made by the people in these localities,
which are for the most part absurd upon
their face. The only criticism that may
perhaps be brought to bear against the rail-
way managers is hat there may have been
TO a certain extent an overlooking recently
Of train hauls, which would naturally cause
a slower movement Of trains and a con-
gestion Of freight traffic; but reason for this
In turn lies in the Unprecedented amount Of
traffic that the railway lines nave been and
are called upon to take care Of The bulk
OF responsibility for trouble Of this sort
must rest in every Just mind upon the ship
pers rather han the railroad companies.
The companies have striven TO the utmost
Of their financial power in the last few years
Is procure cars and engines, to build addi-
tional tracks and to secure larger terminal
space; while shippers have fallen into the
habit OF conducting their business on a
slant replenishing Of suTplies and an over
taxing Of railway facfiftfes.
New York stock Exchange Sales Dec. II.
CLOSING PRICES OF UNITED STATES bonds.
go ASKED. Bid. AsksS.