The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-27
BREAKS SHORT LIVED
Stock Market Rallies Quickly
from Each Attack.
LIQUIDATION IS NOT OVER
Hiu Group Hammered Down, Carry
ing with Them Other Hish-Priced
Gains for the Day in All Lines.
Money Situation Easier.

New York. Dec. "a greater amount
Of genuine strength was displayed in the
stock market to-day than at any time
during the progress of the sharp decline
movement that began a fortnight ago.
One of the most noticeable features Of
the market during this period has been
its lack Of residence after each one of
the breaks in prices that have cOntinu-
ously occurred. Upward reactions there
have been, but they have been feeble
and dispirited, and such as to engender
the opinion in speculative circles that
liquidation in the market has not been
completed 1t cannot be said that TO-
day there was any widespread convic-
ton that this liquidation is over
Optimistic sentiment has of late met
with many disc0uragements. and a gen
eral willingness TO buy stocks has been
less in evidence during the present month
than at any tine during the entire year
There was to-day, however. a perceptible
change in this feeling. \ further vigor-
Gus selling movement in the Hill group
Of stocks. that was of such violence as
10 make it appear that either a specula-
tive raid or forced selling from an indi-
vidual quarter was going on, did not de-
press. as it has hitherto done, the general
list Of securities, and after it was over
prices outside of the Great Northern pre-
fcIred and Northern Pacific shares rallied
with briskness that seemingly testified
20 an oversold condition OF the market
as a whole.
narr.ssas GfoeI-s rTey,norarfIy
The London market was not open to-
day. and hence no clew to the probable
action of prices here was deriyable be
fore the opening of business locally; but
in the first dealings prices were, as
rule. a little higher than they closed on
Monday This upward movement con-
tiaued throughout the first hour and then
appeared 10 peter out, the market becom-
ing thereafter very dull.
The attack on the IIil group Of stocks,
OF further liquidation in them, as the case
might have been. did not put IN an APP
pearauce until the last hour of the stock
exchange session, and the selling was
powerful enough 20 drive these stocks TO
the lowest points touched by them within
a long period of time. The fail involved
all the high-priced stocks 70 "a greater OF
extreme drop IN the case Of Northern
Pacific of five points and Of half on the
Great Northern preferred. The ST. Paul
common shares touched their previous low
record level Tor several mOnts past, and
the price Of the Union Pacific common
also fell 20 within a small fraction of its
lowest quotation in the same period, but
from this break the market recovered
with a vim, the Hill stocks alone being
hrsitant in the advance Nearly all the
principal stocks closed at net gains for
the day Stocks that were particularly
conspicuous in the rally were the Penn
zyIvauia. EmaISamaJed Copper and Union
Pacific shares.
Money Situation Easier.
What news there was to-day bearing
upon the market was mostly confined 10
developments pointing toward little
greater ease in the money situation. Call
money was plentiful the largest share Of
the days loans of this class being made
III 61-2 per cent. although not little
money lent in the afternoon above per
cent. A fall in the discount on New
York exchange in the interior cities and
a premium paid in some instances upon
bills drawn upon tEis center attested Il
return of money TO this city from the
West, although bankers stated that such a
movement was as Yet very slight, and
was probably proof of no more important
fact than that Western institutions were
maniGes,ing "a readiness TO send money
here on the expectations Of getting high
rates for il during the last of the month
Sterling exchange to-day was again very
weak.
There were observers who attributed
The fail in the Hin stocks to-day to the
formal action taken against the Great
Northern Company by the attorney gem
eral of Minnesota, by which that official
hopes. il seems, to restrain the company
from making its new issue OF stock as
proposed. Ii should be stated in this con-
uection that the prevailing impression IN
Wau street that the Great Northern is re-
spOnsible for the taxes levied or that may
be yet levied upon the ore lands recently
leased to the United States Steel Corpora
ton is erroneous. The terms Of the lease
in question provide that the lessees, not
the lessons. shall pay all the expense Of
opening and operating the mines, and all
taxes and assessments that may be made
upon the property
st. Paul Action Criticised.
It must be said that matter that was
the subject of heated discussion in the
financial districts during business hours
was the action of the Chicago, Milwaukee
and ST Paul in refusing to issue war
rants TO any but full shares Of stocks
covering the subscription rights Of the
companys shareholders TO the large new
issue Of St Paul stock recently made. a
holder Of three shares of St Paul com
mon stock, for instance, is entitled under
the terms of the issue to subscribe TO q
one-balf share Of the new preferred stock
ana three-Quarters of d share Of the new
common stock Of the company. The COM
pany, however, has decided to issue to
such d shareholder only one share of pre-
ferred stock, the reason for the with
holding of the other parts Of shares be-
ing. supposedly, that the work OF issuing
such fractional issues viii be bOthersOme
and complicated.
Bothersome and complicated as il may
be, however, such a retention Of the stock
IS a clear deprivation of property right
which although small in individual cases
reaches I'm the aggregate many thousands
Of dollars, and there IS not the slightest
doubt that this is the view that would
be taken Of the matter by the courts II
appeal TO them were made. Should St
Paul authorities continue in the position
that they have taken II would be very
surprising indeed If legal proceedings
looking to a redress of these grievances
are not undertaken by the shareholders
concerned