The Washington herald., 1906-11-28
SHARP RALLY IS ON
Following Depression OfFew
Days, Stocks Move Up.
FEAR NEXT BANK STATEMENT
Brokers Are Gratihed, However,
with Union Pacific Report and Con-
ditiOn of Money Rates-LOndOn EX-
poets to Ship Gold to south Amer
ica-Subtreasury Makes Demand.

New York, Nov ga sharp rally in
prices Of stocks occurred to-day of the
kind following a three CT four days de
preston in the market that Wall street has
become very much accustomed to in the
last few months. While there were va
rious developments of a sort that would
ordinarily be accounted as favorable to
values. the strength OF the market was
clearly attrib ltable in the main to the
buying back of stocks by spectators for
the decline in the more or less violent
manner in which that operation is often
conducted.
There were. FOR one thing. no sugges-
tons to-day of the Tightening of money
rates at the end of the month, which has
for some time been a source of anxiety.
real or supposed, in speculative circles
Cali money rates were. in fact, easier to-
day than they We're yesterday, the ruling
rate for these loans being 3 per cent. as
against yesterdays 51-2 per cent; nor
was there any change whatever in the
prices paid for time funds
Such indications as are at hand, how
ever. are TO the effect that next weeks
bank statement may not make quite so
pleasant reading as that of its predeces-
sor, inasmuch as the banks have lost to
the subtreasury thus far during the week
S2,lS6000, as compared with gain Of
A.2SacoO in the corresponding period 4
week ago.
London to Ship Gold.
In the London market money appeared
to be somewhat more in demand than it
was here, estimates prevailing there that
in spite of the Bank of England's large
recent gains in cash there Will be ship
ments from London 60 South American
financial Centers OF something over s.
100000 a week between now and the end
OF the year. A rather large speculative
account in American stocks was also ex-
posed at the end OF the London financial
settlement to-day, and the carrying
charge on these stocks until the next
settlement day averaged over S per cent.
Here the market was strong in the fore
part Of the day, dull later, and finally
somewhat weaker, although closing at a
level that exhibited considerable. and, IN
some cases, large net gains in The princi-
pal stocks. The trading was cOncentTat-
ed, as it long has been in a limited num-
Der of issues. The Union Pacific. St.
Paul, Northern Pacific, and Great North
ern preferred stocks We're leaders in the
advance, Just as they have been recently
leaders in the decline, and the dealings
presented few features of especial inter
est.
The Virginia and Carolina Chemical
common shares attracted attention at one
tia-e by their strength. and there was for
the first time in a long period relatively
active buying of Western Union stock
The movement in Western Union was
-l-.. avrf
that its new 100000 convertible bond
issue had been SO underwrittel as 10 as
sure It's success.
While the Atchison's splendid October
earnings statement. showing an increase
in gross of 81, 5000. and in net Of $4,000,
was to some extent helpful factor
there were two impelling reasons which
caused professional spectators ~ the
market to reverse their operations to-day.
Il became known from the opening Of
business that as was duly stated in
these columns yesterday. no particular
trouble would be made by the leading
banks III lending money upon Great
Northern preferred stock after there
had been deducted from the stock the
price OF the new ore land certificates
issued on December s.
The banks naturally require a good
margin on high-pTiced stocks ike the
Great Northern shares, and even though
the ore land certificates are not at pres
ent listed on the stock exchange and
have no par value, they represent an
outstanding obligation on the part Of the
United States Steel Corporation, the
lessee Of the lands in question. There is
no reason TO suppose that the certificates
will not be readily marketable and in all
probability application soon viii be made
to give them a formal stock exchange
listing.
The fears Of holders Of Great Northern
stock, therefore, who had imagined that
the new certificates would be boycOtted
in bank loans, were dissipated and the
effect of this was speedily seen in ad-
vancing quotations for the ore certificates
and for the entire HiI group Of stocks.
The Union Pacific Railroad Company's
annual report, TO which publicity was
given to-day before the opening Of the
stock exchange, made upon the whole a
favorable impression even If il showed
that estimates that have recently been
current regarding the earnings Of the
company in the last fiscal year were ex-
sggerated.
COmpRny's Assets Large.
The report was strongest in its showing
of the large amount of assets in the COM
pany's treasury. OF these $71, 500 were
in quick assets or readily realizable prop
6rty, the company having il seems, over
81, 900 in its treasury in lash and near
ly So, ,OO0, 900 on call, while the company
has nearly s167, 900, 900 Of securities un-
touched by any mortgage lien.
But the report met to-day, it must be
admitted, a certain amount OF adverse
criticism. 1t was pointed out that Of the
unpledged stocks and bonds IN the COM
pany's possession, many we-e Of such a
character that their value could not be
easily estimated.
The total net earnings Of the company
IN the fiscal year, after dedueations of ex-
penseS. taxes. fixed charges, and prefer
red dividends, were $27,7S .642. leaving on
the face Of things a surplus Of 1421 per
cent earnings on the company's $1e5- -446 900
OF common stock. But In this surplus is
included as earnings S4205, 600 spent in i'm
proyementS and betteTments on the COM
pany's property during the year. and in
allowance for depreciation charges: while
there IS also included in the surplus as
money received the sum of s. 2950.O10. being
the semi-annual dividend of 2lz per cent
upon the company's Southern Pacific
common shares, which was not in fact
paid over to the company until October.
or IN the current instead Of the past fiscal