The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-26
GIGANTIC TRADE IN
4 TRICKY MARKET
Wall Street Conservatives See
Danger in Excess of
Speculation.
Special to The Journal.

0peClul TO 1ue JouEudls
New York, Aug. 25.-A close student
of the stock market says that in his
opinion it has reached such gigantic
proportions that it is not worth while
to discuss it from day to day. He re-
CARDS the market as a dangerous one,
particularly for operators who have
only moderate-sized margins. There
is still great deal of adverse criticism
with respect to the declaration of the
Union Pacific and Southern Pacific divi-
dends and apparently conservative Wall
street interests are not disposed to OPP
crate in these two stocks, altho they ad-
nit that in all probability they will go
still higher. These interests are dis
posed to trade in the low priced rail
road issues and in the United States
Steel stocks, particularly the common
and in the other well-established indus
trial issues.
Men who have not been in sympathy
with the tremendous activity think that
the market had been advanced alto
gether too rapidly and that the most
active stocks should react rather sharp
ly. There is growing apprehension with
respect to the money market on the
part Of interests who have not COM
pletely lost their heads in the wild spec
ulation. Apparently the monetary sit
uation is being largely overlooked by
those who have entered actively into
this speculation. 1t is believed that I'M
less trading falls off materially the
squeeze in money will come consider
ably sooner than was expected.
Speculation On Tuesday became less
feverish, owing to the SOLDERING influ-
ence exercised by bankers who are op-
posed to frenzied speculation under
dampening effect of renewed realizing
by insiders on a heavier scale than out
siders and traders felt safe in enter
tanning. Those banks not affiliated
with the powerful interests now manip-
ulating the market, viewing possible
money developments with apprehension
issued pre-emptory calls for substantial
were not willing to make further in
roads upon their slender reserves ex-
cept at prohibitive rates. Brokers con-
sequently Disseminated against orders
having any element of risk, and they
became still more careful when the sub
treasury issued statement showing
that the banks had lost to it since Fri
day $4,2SO,000. The cables from Lon
don indicated that the boom was not
being blindly followed there; quotations
We're irregular from excessive profit
taking encouraged by fears Of decline
In cOnsols, and as many selling as buy
ing orders were sent to this market.
Great Northern preferred IS remark
able rise suggests that there must have
been some very bullish development
which is not yet known to the public.
A number of the stocks which are men
toned for higher dividends, including
louisville & Nashville, Reading, Nor
folk & Western, Erie and Sugar frmed
up considerably. Arguments were used
to show that Union Pacific is cheap in
comparison with other per cent issues
For example, St. Paul is selling 10
points, Northern Pacific 80 points and
Great Northern preferred 100 points
higher. Why, it is asked, should Union
Pacific, now paying 10 per cent. sell
so Iowa The Interpretation of it's
behavior early in the week indicates
that the market stopped to breathe,
perhaps preparatory to embarking on
another rush upward, which may carry
the price, the bulls think, we'll over 200
before the 5 per cent dividend is de-
on Missouri Pacific is not believed to be
well founded. 1t is confidently believed
that when next the Pennsylvania rail
road directors pass upon the semi-an-
nual dividend question the rate de-
clared will place the. stock on per
cent annual basis. Increases Of at least
! per cent on Atchison and Norfolk &
Western are taken as practical certain
ties. The western crowd is actively en-
gagged on the long side Of Atchison.
a man who has been in close touch
with the leading industries Of this
country for half a century, in comment
street las week, said: "You can man
ipulate the market for time, but you
cannot manipulate the condition pre-
vailing turnout this country. In my