The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-10-04
STOCK BUYERS
FED ON RUMORS
Details of Great Northern Ore
Deal Are Not Dis
closed.
ST. PAUL YET A MYSTERY
SANTA FEE DIVIDEND HAD BEEN
DISCOUNTED.

New York. Oct 3.-There was a large
speculation in stocks again today, but
the movement was constantly shifting.
There was a palpable effort to divert
the speculation into some of the low
priced railroad stocks and some of them
responded with show of strength. The
movement. however, lacked Spontan1ety
and was clearly due to professional initia
tive based on technical considerations
rather than on actual development re
garding these properties. 1t was plauSib!y
argued, however, that this class of securi-
ties has never advanced in proportion
10 the wide advances in the high priced
stocks in spite of the share of these
companies IN the increased earnings COM
mon to the railroad system Of the whole
. country.
Market operations are attracted by the
argument also that carrying charges on
the low priced stocks are less owing to
the smaller sums to be borrowed in TAX
ing on these stocks. This argument has
special force during period Of tight
ness oi money and particularly at a Pc
Rod when customers of brokerage houses
are receiving statements OF accounts for
September with charges to interest ac-
count, owing to the high money rates
which make notable impairment Of pro-
fits on a movement OF prices. This fac
tor is believed to prompt some of the re-
cent pressure upon the market, in spite
OF the Improvement in the Immediate
money outlook.
A glance at the sales list reveals. how
ever, the continued preponderance of
speculative favor towards high priced rail-
road stocks and even in this dispropor
tionate congestion in a small number Of
them. Atchison was the conspicuous fig
ure in the days dealings and suffered
severely from the resolution of the doubts
over the dividend question by the decla-
ration Of 21R per cent semi-annual diVi-
dend. The weakness of the stock in face
of an increase from 4 to per cent divi-
dend basis was accepted as striking les
son of the speculative disposition to eX-
cessive anticipations of favorable events.
There have been vociferouS assurances
about the stock exchange for many days
that per cent rate had been definitely
determined upon Wholesale speculative
liquidation was the consequence when The
dividend action became known.
The still undiScloSed details of the ore
deal Of Southern Pacific'S alleged control
of St. Paul and a new holding company
for the coal properties proved their SUI
periOr efficacy today again in the strength
of the stocks concerned. Canadian Pa
cities jump the extra dividend out
of proceeds of land sales was not main
tanned. speculative profit taking also
making its effect felt. Sentiment over
the money outlook is distinctly brighter.
The subsistence of the import movement
of gold is felt to be due TO the present
satisfaction of requirements
1t was reported from London that
late engagement of gold bars at the Bank
of England for New York account had
been cancelled. This caused a revision of
yesterdays views of the certainty Of an
advance in the Bank Of England rate to-
morrow and discounts were easier in Lon
don today though still ruling well above
the bank 6 official rate San Francisco
made large remittances here through the
sub-treasury. but 100000 was transferred
through that medium to New Orleans
The market did not recover at any time
from the break in Atchson which drop
ped from 1855 in the morning to 1891
closing at meth loss of 49,. When Read
ing ran off to 1905 in the late dealings
after having sold at 1541s in the morning
the closing or the market became weak all
around.
Bonds were irregular. Total sales. par
value. S2,674O00.
United States bonds were unchanged on
call.