The San Francisco call., 1906-08-18
- Ynrlk stock Market.

WV YORK. Avg. l7-Union Pacific on ~
re- cent dividend basis and southern faclnc W Oh
4 ) per cent dividend basis. Otnclal ahuosnse 49,
-r,r+ ~ fhfs result Of yesterdays meeting OF me
executive companies Of the Two roaos 81 tis -
Wall street today SpeculAtiFs, ssg itself ont
q fash. is not unusual on suS. - - So.
freak after period Or IN srts ~
inns kiudled spread until practlcalig M PIos =.
tf o,-cbsnge list were embraced in the feryent
demand TO buy stocks Wall street nnques'Ion- .,
ably was taken By surprise Mal sslsse sio 80
r,rises commonly are not due 10 unoerestlmetiomh m
- coming events. The usual rule mat PeIivu
~ speculative excitement such as oecurfel tnts -.
-so-55re iu the Hartman Pacihcs, gives rise 70
-, r,anv excited con lectures. partly Foluntaf.
nd nartlv melted for purpose, that the actual
---s-f IN which q speculation has been paseq
s,-.s 5isaDDoinfpent and more likely rush TO
eon fhau an extension OF the buylng moFehisn. !.
Yesterday rumOr mOngers who alleged thN,
Southern Pacific was 10 receive sem i-aii"u "a a.
sss5Ss.F ~ 6ib Der cent, rather than the ex-
Daeted dividend of per cent Nere esrrSep i-riev
as extravagaut For ne p6osps ppss, ,ronbet of
fe-ed no suggestion that more than 90 per csnt -,
soF the half year would be disborsee On tbe. th,a.
rbe Increase over the preceding 3 per cent IMaee M
vrould be Incorporated ~ regular o72 pet @ Nslis
dividend or distinguished as hsii per cen. 1a eniin
III eSditon 10 maintaining the per cent negulst
80 ~ The dazzling effect OF the announcement
- = regular per cent semi uIflosnu VI
ne epeeulatfre imagiation was thus magninea-
~ eil,so. leaned 10 the conclusion that there
- decision representing financial power ana
-,-.barftr Of magnitude and likely 20 anect by
- s se whole that the period making de
rjvsble strict retrenchment IN the disbursement
- ornorste urofts for the expansion 81 facllities
NJ ednipuent 81 plant had reached rs compile
49,, enI that the way was open Tor the ENJOY
-.c-t ~ tie stockholders Of fuller share OF
--s,srs secure IN the capacity OF their. prop
80 - meet requirements upon II ana 20 main
80. ~. earning power deYolved upon II. The
~,1nvuisive action in the PaeiAcs aroused some
,,,,e.overed short interest The movement else
49,, 51 consequence was feverish and Irregular
~ time The general deductions drawn from
- ,ts.5 actfon on fhe pacihce was too inn
,orfent and far reaching 10 allow the general
ss-snce 10 be long restrained. The new Income
80 erered by the Pacifes themselves, es-
-Sisur T-nfon Pacific, left such wide room for
res5snstr1ent in the price that the rise was
vsv,-ouelv extended by spasmoeic movements.
os,c- -tsels most acutely affected naturally were
eI,5se whose conditions bore the closest analogy
-. tbrse ~ Union Pacific Pennsylvania and New
Wy Central were the principal examples. by rea-
Son of their large stockholdings N controlled com
1sries The Onion Pacific dividend WAS definitely
sssiened 20 the resources Of its income from IN
raef'nents Hence the analogy The strength
of fhe market, however became fairly compre-
ko,efve Tho continued rise in interest rates
N fimf loans and the testimony Of the currency
,,,orenlent of the growth Of the interior demand
fav harFesting purposes were forced out Of sight
almost completely IN the speculative enthusiasm