The Washington herald., 1906-10-15
PRICES HOLD UP WELL
Increasing Strength Shown
in Stocks at Weeks End.
STEEL AN IMPORTANT FACTOR
Large Dividends Expected ia the
Common-Ore Deal Also Aids Buoy
ancy-Adynnce in Bank OF Eng
lands Rates Has No Adverse Ef-
feet on General Situation.

New York. Oct 1i.-It must Ge said that
10 an even less degree than was the case
in the preceding week were there any de-
vslopnents last week Influencing prices OF
securities in any notable way. and that
the stock market was. taking the period
through and through, rather dull
This duIlness was more marked in the
earlier part of the week than it was
later. and, indeed. the market, althoueh
relatively quiet. showed "a gradually in
creasing strength from the beginning OF
the week to ils end. Il was largely "a
professional market as II, has been now
for nearly two months past. but the pro-
fassional SPECTATORS were m least buyiug
stocks rather than selling them. and
prices displayed an almost uniformly ad-
eanciag tendency.
There were, Of course. certain special
REASONS for the rise in particular cases
General Electric stock was favorably az
iected by an impression, which was after
ward converted into a certainty by an of
1icial announcement that a new issue of
stock was to be- made on favorable terms
go existing shareholders Moreover, there
are possibilities that the dividend rate On
the stock may D. Increased.
Tie so-called IHH railway stocks were
legitimately strong on the conclusion of
the orc lands lease TO tine United States
Steel Cooperation. aud al thc United
States Steel issues advanced not only by
reason of an understanding of the bcne-
TITS That would accrue % thc corporation
by the transaction reSardug the ore
lands, but because Of general knowledge
that the earnings VI the company are con-
1iHuing 10 mount up 10 an enormous rate.
Expect Larger Dividends.
There IS talk. vers. natural under the
circumstance. tHat tbs present dividend
distribution on The United States Steel
common shares must Ice enlarged and
while few people really expect that any
such action 3s this VIII be taken br the
directors of Ihe corporation in thc present
year. il is vet felt that there is something
more tlau q fair probability thl, the
JHited states Stc.l common stock VIII be-
made pcr coat dividend payer in The
carly part of next ye5r
fcnnsy ivluls stock reflected q prevalent
teiici that tine next dividend paid ou it
WiH oe al tile rate OF per eeut per am
NUN. and There WAS very definite up-
mon Shares based uuOu general u1srrla-
iion- seemingly. that the price of the
stock as aEv uayiD5 lH per ecnl dividends
n NOW greatly below its value
fhe sun annual reTa-t of the Onion
Pacific Company fer THE f-e5l ycar saG-J
june 80 has u-t EcJ been Published AZ
tiossh ta. aHaGal meeting OF Che com-
panE was held some days ago. For tHe
STORY which WAS heard In WAN street
during tae week chst Jlc report when Ic
appeared would contain st.r-iine dis
closures a~ 40 tHe earnings and profits
ana investments of jhe company There IS
probably lilt!e Foundation bu. taat the
stiLin-s Of ,he Union Pacific Company
ap2iiclale Jo dividends on tbc common
s,-cz are "a, .east double tho quantity JL
aItlaeHds Row distributed IS Il fact of
"hic1 there Is uo douat whatever
VIII Profit by Gre DeaI.
There are souuj REASONS Tor thinking.
200. tha, Ga, Union Pacific Company is
si'l "a 'avg, holder ef The Northern Pa
cite and Great Northern Railway pre-
f-red stock. and that it viH pro5ablv
heacai more than amy siuglc shareholdar
Of these companies from the distribution.
at Date not ren1tc. of the equities i'm
cash form or otherwise arising from the
lease recently made by the Great North
ern ard Northcu Pacific companies os
tfoir ore properties as VEL ALSO OF the
regular profits oi these companies arising
nom their routine operations WHY Union
Pacific stock under these circumstances is
NOT worth tlilr as mach ass Northern
ttriEc Is q ltjie hand tu discover
II was very clear. however. that there
We're certain general forces operating TN
IL
the market as "a whole derived greater
impulse than from amy of the more par
ticuiar helps that have been mentioned.
For one thing. confidence became decided
iJ rn-arScd that the sOci1l.stic candidate
for governor in this State would h- de-
seated III tile November election. and IF e
should indeed turn ouL as ii uow
promises to. thar this candidate encelfu-
1ers an Overwhelmingly adverse vote. the
security market would reflect its f5v over
tte event in a rather sensational fashion.
Again, thc ease ia the money situation.
which began Ia De noticed in the proceed
ing week, last week hocamc very pro-
Hounced. CaH money rates throughout
til- week rarely rUsc over per cent
while the per cent minimum raie for
time money. SO long held. was at last
broken, and all sorts OF prices between
lhis figure and per cent were made for
time funds.
Bank OF England Rates Tp.
Tho most important incident OF the
week in a financial sense was. probably.
7he advance in the Bank of England
minimum ra5e of discount ON Thursday
from : per cent 20 o per cent Yet The
action of the directors OF tbe bank had
been SO long foreshadowed that the stock
markets everywhere were found TO be wei
prepared Tor it. and the. step when il
was taken was actually attended by g
rise ia the price of securities both here
and lu the English capital.
Meanwhile "a third factor Of bread inn
portance in the general situation con-
unues 20 be the stupendous and profit
able volume of business that is now be-
ing transacted over the entire country.
a clear eNemplihcation Of what Is going
on IS afforded IN the state OF the copper
trade For q long time back the price
uf copper has been steadily advancing.
and tbe opinion prevailed among many
copper consumers. due in large part to
ihe mistaken views urged by many in-
fiuentiai trade journals, that the rise in
ihc price of the commodity was largely
"a matter OF speculation
Nore Copper Being Used.
The normal Increase in the country,
output of copper Is about I0 per cent Per
anuum, so that this year. strange 10
SAY. In view Of all the stories about the
working OF large new copper mines. sc,
the production actually showed a reIa-
1isc fallins of. The enlarged consump-