The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-11-03
VIOLENT RISE IN
THE HILL STOCKS
SuppOSiti0n in Wall Street That
a Short Interest Has
Been Squeezed.
MARKET GENERALLY GOOD
POOR BANK STATEMENT is Elk
PECTED.
MARKET GENERALLY GOOD

New York, Nov. 2.-The advance in
stocks, which was stimulated at first by
the increase in the Pennsylvania, dividend,
was continued today on an increased
volume of business. There was evidence
10 indicate large buying by an uncovered
short interest. and this was particularly
urgent in the stocks which rose most
sharply. 1t manifested itself first in the
Hill stocks in the 9lz jump in Great
northern preferred, and ga in Northern
Pacific. No news was forthcoming to eX-
plain the violent rise in these stocks, and
IL was generally attributed TO the squeeze
of an incautiOus short interest which is
particularly vulnerable in these stocks
owing to the small floating supply in the
market The same influence was credited
with the aggressive advance in Reading
The only news regarding that stock was
the report of net earnings for September
which showed falling off from Septem-
Der of last year both FOR the coal COM
pany and the railroad company. the de-
crease for all companies reaching $42I, 109,
or % per cent.
The fact became obvious that there has
been a large amount Of short selling in
the market based on the aSSum ption that
q period of unsettlement and depression
certain to intervene before the cleo
ton, which would afford an opportunity
10 cover shorts at profit. There was
an extensive Reinforcement or such COM
mitments today the weakness of their
position being aggravated by the effect
on the general list of the increase in the
still alive today. but it was held back
from further advance over yesterday s
high level by free profit taking
The Pennsylvania railoard net earnings
for September were also published and
showed that the increase in gross earnings
had been practically eaten up by the
growth in operating expenses. There
were some further conferences between
railroad officials and employees over the
question of increases in wages and reduc-
ton of working hours. but sentiment in
the stock market was not affected and
there was a growth of the assurance that
a settlement would be effected without
an interruption of profitable activity. The
course of the call loan market did not in
terrupt the improvement in prices of
stocks, in spite of the prospect of poor
bank statement tomorrow. The sub
treasury had taken from the banks UP
TO Thursday night S3,73500O. and trust
worthy estimates of the movement of
currency to the interior indicated a fur
Their loss on that account sufficient TO
bring the total decrease to nearly 81
OOO.O0O. The shifting of accounts incident
10 the November settlements would tend
to expand the loan account. There has
been "A general Supposition also that the
decrease in loans reported last week was
not "A true reflection Of the actual course
of that item and that a rectification in
this weeks statement will be likely to
work an eXpension in the item.
Foreign discounts rose today and the
Bank of France and the Imperial Bank of
Germany reported a considerable impair
ment of condition both by decrease OF
reserve and increase OF liabilities. The
result was a strong foreign exchange
market here. the higher money rate
abroad prompting the Withholding of
finance bills from this market, while the
demand for remittance from here was
quite active.
Professional profit-taking on the days
advance became general under cover OF
the later stages of the advance In Read
ing. and the market closed easier and
materially lower than the highest prices
of the day.
Bonds were steady. Total sales, par
value s., $4,000
on call.