The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-23
e,,oooo the 1900 mile extension

nov ~ finance the 1900 mile extension TO
I'm pacific coast. The statisticlans al
went wrong on the value or THESE rlshts,
rrho announcement of the cutting up OF
the "nelon" was made after the close
of the market on Monday, ana on Iuesday
St Paul promptly opened Oh o q.
dollars a share. Spectators who had seen
tho effect of the Hill melon on Great
Northern and Northern Pacific took
fright and FASTENED to sell their st. PAU
stock For some reason pest Known ~
themselves the Standard OH interests
who dominate st. Paufs policies, mace
no effort to support the stock IN tne
market and the liquidation grew IN vol
ume as the stock declined, Just as
SNOWFALL grows bigger as it rolls down
hill On Wednesday, when st. Paul soid
nv rights for the first time the market
value of the stock plus the market value
Of the rights fell to $50, or just what
the stock was quoted at before the re-
cent violent rise began.
The violent break in st. Paul natural
u, hronoht on liquidation in other high
nriced stocks and the worse slump that
the market has seen in many long day
u,as the result Some facetlous member OF
tho stock exchange strung up a punch
of demons and hung them on the ot'
Paul post, while the heavy hquioalloh
was going on, and even those VINO Were
eeeinp their profits vanish minute by
min1,te saw the point of the joke. When
fine rumor spread through the exchange
that n melon was to be cut up lot
the baltimore and Ohio stockholders the
bunch of lemons was transferred from the
St Paul post to the Baltimore and ONO
most 1t has been very curious feature
of this market for long Tune thal an
news about stocks that would naturally
he classed as good news has had bad
effect nm prices Every melon cutting has
caused liduidation. and the same has been
true of Increases in dividends. The Penn
svlyania dividend was increased from b
per cent to per cent, in order to increase
tha company's credit abroad. where 1t is
narrowing many millions of dollars for
It's extensive improvements, and the STOCK
nromntly declined. New York Central
Increased its dividend from per cent
IN per cent. after several of its SUD-
sidiary companies had increased ther
dividends, and its stock promptly de-
elined, Pennsylvania as 6 per cent stock
in the last big bull market sold in the
na,ehhorhood of $40 and now as Z
ner cent stock 1t hangs below $40. New
York Central as q 5 per cent stock sold
away above $50 and now as . per cent
stock il does not seem to attract puy-
ing $40 cheaper. Because OF the strange
recentIon the market has given all this
aOOn1 news tTduGTS Ill "tip
nra wing on wednesday that the directors
would not increase the dividend rate.
Their prayers were answered. Looking
hack over the course of the stock mar
ket for the past four or five months 1t is
seen that 1t has not acted right IN the
Wall street vernacular since Mr. Harri-
man made his spectacular coup In Union
Pacific and Southern Pacific. The mar
ket apparently has not recovered from
the violently good news that Mr.. Harrl-
man sprung on it that August NOM
ing.
Some weeks ago 1t was pointed out In
this correspondence that the floating sup
ply of speculative stocks was largely in
the hands of the big interests, and that
these interests would make an effort to
distribute some OF their holdings to the
public at higher prices as soon as the
condition Of the money market warranted
this. 1t was also pointed out that tight
money would last over the end OF the
year. This is the situation today. The
condition Of the international money mar
kets has forced liquidation. This lquida-
ton will place stocks In much stronger
position and give the ordinary investor an
opportunity to buy them on a reasonable