The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-28
FINANCIAL AND COMMERCIAL.
THURSDAY, Dec. ~


in the market was practically continuous.
II was greatest. of course, in those stocks
which have recently declined most, ex-
treme gains being made, which were nearly
all retained at the close. of 81 points each
In Northern Pacific and Great Northern
! preferred, ~ in Union Pacific and st.
Paul, 4 in Reading and "a in Canadian
Pacific, while gains Of between l and
points were common in the other leading
stocks. There were two forces which.
according TO common judgment, Ind most
to do with the, days market. One of these
was the seeming probability that the years
mi financial settlements, now almost
Immediately at hand, would take place
without the severe monetary stress which
was recently threatened; responsibility
for this upshot OF the matter being no doubt
largely due to the recent heavy liquida-
ton, particularly in the high priced stocks
that have required 50 much money TO carry
them speculatively. Call money to-day
did not go above IL per cent, and although
bank renewals were made at o per cent.
most of the days loans made on the floor
Of the Stock Exchange were not above
7 per cent. There was, it is true, no altera-
ton to-day in time money rates, but oon-
ditions were such as to warrant a dissipation
Of fears of an extreme shortening OF the
supply OF money for speculative Use in
the few days around the end of the year.
The other development, although il could
not really be called such, favorable TO the
market to-day assumed the form of rumors
that late yesterday afternoon various large
accounts open for the rise in the Great
Northern preferred and Northern Pacific
shares had passed at private sale from
hands that were no longer able to oare
for them TO stronger financial interests.
These stories were not verified, but 1t was
generally believed that there was a basis
for them and that a further forced liquids-
ton in the Hill stocks that had been over
handing the market" was averted. Beyond
n question, too, a large share of the days
advance in prices was directly attributable
to the retreat of the short interest in the
market, which in the course of the last
ten days had assumed considerable pro-
portions. The Bank of England made
perhaps a poorer weekly report of condition
to-day than had been looked for, showing
a loss in bullion during the week of nearly
S.. 900 900 and a proportion Of reserves held
against liabilities Of 37.13 per cent, COM
pared with 1854 per cent. a week ago. The
banks condition is of course much stronger
than 1t was at this time last year, a further
point of difference between the two periods
being, however, the important fact that q
year ago the banks minimum rate of dis
count was only 4percent.. as against to-day's
high rate of 9 per cent. The Imperial
Bank of Germany's weekly report to-day
WIS, too, not over strong. A notable
feature of the general situation continues
TO be the weakness Of the foreign exchange
market here. Sterling in this market is
now clearly at a point where gold could
Withdrawn for our benefit from London
and the only reason why it ia not so with
drawn Is that this course would probably
throw financial affairs in London into con-
fusicn. The exact construction that must
be placed upon such a state of affairs and
the met hing that II has TO our security
market is at the moment and has been for
some time a matter Of interested discussion
in high financial circles.
Allusion can be made at no better time
than the present to another subject that,
although it has not engaged general atten-
ton in Wall Street, has yet, owing TO its
extraordinary nature, not escaped consid-
cradle comment. Reference is made to the
very singular proposition emanating from
a concern known as the Western Ice Com
pany and addressed to the stockholders of
the Knickerbocker Ice Company of Chicago
asking these stockholders TO turn over their
property 20 the Western Ice management.
The Knickerbocker Ice Company is. as is
we'll known, the leading concern engaged
In the distribution Of ice in the city Of Chi
To haa hal Ito pna and AOuypa liEa
all other corporations doing a local business
In tina city, but it has never failed 10 earn
and nav the interest on its bonds and pre-
ferred stock and in the present calendar |
year will show earnings Of over 10 per cent.
on its common shares. The company Is, |
in other words, In iourishing condition.
owing to the firm grip that it has OBJ
tained upon the business situation in its
has very bright prospects for
the future. Now turns up the Western Ice
COMPANY, whose possession of more than
trivial facilities for conducting an ice
business In Chicago is undisclosed, if indeed
il does not turn out to be a fact that the
il a mere paper corporation.
Western Ice Company asks the Knick-
erbocker Ice Company stockholders TO turn
over their stock to the former corporation, |
therefor the Western Ice Com
bonds and a certain additional
quantity Of stock. What possible motive
! Kn~ickerbocker Ice Company shareholder
be expected to have for divesting
Of his property in this way is not
1t all clear, and what is very clear is that
he Is asked TO surrender his stock and the
of his company, receiving in turn
bonds representing an unduly small pro-
Of the stock handed over and the
stock Of a company whose practical sole
asset is the possession of the property which
the Knickerbocker Ice Company people
parted with. Impudent and audacious
Is this scheme is, it is understood that
various stockholders of the Kn~ickerbocker
Ice Company have unwittingly turned in
heir shares in the way described under the
Utterly impression that some sort
" a reorganization of their company was
impending and that they we're forced to
inter- into the arrangement or lose their
A protective committee of the
InickerbOcker Ice shareholders has been
and has endeavored TO put the facts
II the case plainly in a circular sent out
o the shareholding interests, and il is there