The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-12-17
Financial Letter
Nt0ck Market Has Responded to
Call of Secretary Shaw for
Relief.

NeW 1Oth, DtCeIllDeF III lie StOCk
market after a few days of dropping
prices has responded to Secretary
Shaw's measures of relief and shows
a firmer tone than had been expected
| at this time. AS was forecasted in
this letter to be probable, St. Paul has
been selected by the leading maniup.
lators to be the bell wether sheep of
the bull movement and has been pushed
up aggressively to around 1870 or ten
points higher than it was a week ago.
This stock is so closely held for per-
manent investment that its floating
| supply on the Stock Exchange is small
1t is this fact that enables the power
| full speculative clique known rs the
Standard Oil Crowd to mark up the
price on ST. Paul as they see fit and
an advance in that stock is often man.
ipulated with the object of covering up
or distracting attention from selling
of other shares. However, in this in
stance, it would seem that the purpose
was Il different one--that OF making
leader for the other shares to follow.
That the money situation is acutely
serious and that all the ingenuity of
the most powerful tinanciers of Wall
Street was required to tide over real
crisis is now admitted. For days at a
time large spectators We're warned
by their banks that further accommo-
dation could not be had. Old loans
We're scaled down and every eNpedient
adopted To prevent public apprehen-
sions as to the supplies OF funds.
There was even suspicion at one time
that the weekly bank statement was
not correct exposition of the actual
figures. but now that the treasury de
partment has shown willingness to
aid all this is forgotten and men are
buying stocks as though there had
never been cloud on the financial
horizon. They will continue to buy
just as long as the bell wether shares
are being marked up and that will go
on just long as those in control of the
market find it profitable. When they
get the mark high enough they viii! be-
gin to sell and then the public will find
itself loaded up with stocks and prices
declining.
Wall Street did no. know exactly
how to regard the issue of $60.00o,000
new Great Northern shares. At first
it was figured out to be bull argu-
ment, but later this was reversed and
traders were inclined to regard the
movement as move of doubtful val
ue from the shareholders standpoint.
Estimates as to the values of the
rights" under the new shares also
varied extremely, some authorities
holding this to be worth $50 per share
while others put it as low as $3S. Tn.
same sort of puzzled sentiment applies
to some of the recently increased div
idends. notably those of lines con-
trolled by the Pennsylvania system.
Are these increases being made be-
cause the earnings justify it or is it
because the controlling corporation.
the Pennsylvania Railroad company,
needs the money, all Wall Street asks.
1t is this feeling of scepticism that ma
act as check on buff speculation and
from the standpoint of al. but the
Spectator who has stocks to sell it
is good thing. If the public were
always to adopt something CT Mis-
souri, attitude and demand ITO be
shown" it would inure to the prosper
ity of the country in genera and the
small stock trader in particular.
Announcement of further centraliza-
ton of the control of the Pennsylvania
of its subsidiary lines has been mad.
in the case of the Cumberland Valley
Railroad, line running from Harris
Durg, Pa, to the Potomac river. Nary-
land. distance of 50 miles. Although
the Pennsylvania controls the line, It
is absorbing as much of the stock as
it can. The line is operated as part
of the Pennsylvania system. The
falling off in the earnings of the
Southern Railway company is disqui-
citing to its shareholders. The de-
crease for October was $500 and
since July it has reached total OF
$46S,O0o. The poor showing is due
mainly to the present high prices of
material and labor
The Nippissing bubble appears to
have burst, for the time being at least.
From 80 7-S to IL is a good long drop
for S. par share In this case it
represents a shrinkage in the market
value of the property OF approximately
$4,000, 900 and the speculative world
is still seeking for the real reason of
the collapse. There are reports that at
the 5O-foot depth in one of the veins
1t was found that the ore was much
less than nearer the surface. Whether
this is the actual cause of the Gug-
genheim refusal to take over 10000
shares OF the stock, of course cannot
be known at present, but at any rate
the whole affair has been most de-
plorable one, and should serve to show
the public what extreme caution
should be exercised in making mining
investments. There is another side to
this Nipissing story that should not
be lost sight of. When the shares
were selling above fifty only rosy re-
ports were given out as to the value
OF the ore being minei. These re-
ports came from persons supposed to
he close to the interests in control of