The Washington herald., 1906-12-15


and ever more important relief will be
felt rs a result of the recent liquidation
when the money withdraw from loans for
the payment of the Standard Oil dividend
and other dividends at the end of the
week is restored to the usual channels
within the next few days. AS the money
situation has been the great obstacle in
the way Of a bull market for many
months past, the outlook is at least better
now than il was a week ago.
Despite the weakness bordering on
decentralization in several stocks. many
issues. Copper, Union Pacific. and
Rock Island. for instance, maintained
. eair degree Of strength and brought
comfort to the bulls when they found
time for reflection. Even the bears came
10 realize that matters were not as bad
as they had supposed, and began the
covering of contracts, adding to the vigor
Of the rally.
Canadian Pacific more than fulfilled the
prediction that It would cross 200 and
little doubt was felt that Sir Thomas
Shaughnessy has ambitions to rival James
J. Hin as a raiser of melons.
The buying of St Paul" said close
observer Of the trading, has looked so
much like genuine accumulation by
Standard Oil interests that I am almost
/ inclined to doubt if that is its real char
acter One house which usually handles
/ a good deal Of Standard Oil business. took
/ in the last few days not less than l2.OO0
/ shares Of St Paul common. and l have
! noted "a large amount Of other buying
! which seemed equally significant. When
Standard Oil buying Is handled In such
J a very open manner, I grow suspicious Of
it. As "a rule prominent interests do not
/ try TO put up Il stock when they want
to buy il, and II the Standard on In
tercsts We're not more concerned about
putting up ST. Paul than about getting
stock in the past two days at all events.
! then all signs fail"
As a medium of speculation St Paul
has few equals on the stock exchange list.
Il has plenty of merit. enjoys large
measure of popularity. and is SO strongly
held for investment that the floating sup
ply is always small The last named con-
sideration is very important in its bear
ling on the speculative opportunity in the
stock. for whenever the insiders find a
short interest Of moderate proportions
they can easily corral the floating supply
and compel the covering OF contracts al
. almost any price they choose TO make.
. II they do not compel covering al fancy
prices il Is only because they know that
in this way they would destroy the popu-
larity Of the stock, which now lends itself
so readily TO their purpose. and thus for
felt attractive possibilities both IN the Is
sue itself and in the general market l.
costs the Standard oil interests little q
move St Paul. and yet a large movement
in Il. if directed from q BTOadway-tht
only place from which one OF fair proper
tious could be directed-exerts substan
tiaI influence over the entire list. Tn,
speculative opportunities in St Paul art
thus an asset which is not likely to b
J thrown away.
. 1t Is said that a large floor operator wa'
. obliged TO close out his Reading on tn
break. He is said to have had a large line
and the stock Is believed 70 have passe,
into strong hands. The supposition
that the heavy selling of the stock earl!
: in the week was really offended TO dis
lodge this speculative account. and tina
the interests which did the cunning wer
not only able TO get back on the deClin
> all they had sold, but considerably more
so. that they are more completely in con
troll Of the situation in the stock now thai
! at any time in weeks
!. In q bear market all signs fail. but tha
: stage has not been reached yet Som
: signs have failed. but not all of then
] I~fr1-- nd kar
2 thern Pacific were dropped to shut OU
: speculative holding appears to hold gooC
/. Clearer evidence OF the wonderfI
: growth Of the Northwest should haTdl
Z be desired than the increases in capita
= ization made by the great railroads
= the year IL the spring, St. Paul issue
= s25. .O00. 600 of common. and now propose
q to issue SO 600 preferred.
: Northwestern sold $16.OO0OO0 common
y last summer. and has since received al
thority from its stock holders to increaS
= the total amount of common stock
S1OO, ,OO0.O .OO0 presumably for use before yer
!. long. Great Northern has announced a
issue of S60OO0,000. and an issue Of S9S
y 000.G0O Northern Pacific is imminent. Tt
= same cause underlies all these increase
= and the business is growing a. a rat
road facilities.
4 trader who prides himself ca know
ing all about the Hill stocks, started
to enlighten his fellows on the purpo:
rs Of the new issue Of the Great Northel
n, stocks in the following terms: 'Wh
you know Great Northern is building
d. transcontinental line through Canad
from Evarts to Seattle" There are
many railroad building enterprises now
days that it is hardly any wonder III;
~ the average man gets mixed.
BE-. What the trader above referred
probably meant to say was that Gre
- Northern is building a line from Winu
peg to Vancouver. The entire cost of tn
enterprise will be about $50 OOO. 900. 1t W
be built without the issue Of a sing
bond and viii be turned over to Gre
Northern without a single obligation
~ it.
"a The scheme Is something like inyitil
"a the stockholders of Great Northern
8 Join in a construction company, with 4
u difference that whereas construction COZ
: panies usually make no returns on the
o. stocks until after the road is built
stt return of per cent a year will be ma
= on the basis during the constructs
"a period, and per cent will be paid ther
after. The new line viii cross and I
cross the international bour lary, servi
one Of the best agricultural and mini
sections on the American continent T
ce construction now going on will join
he the ends of existing lines built by n
il Hill without calling on his stOckholde
"A for a dollar. and the whole when col
!, pleted viii be turned over at cost
en- steel preferred" said a conservatl
,.n broker. IS assuming something Of I
- character of a bond. The margin