The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1906-12-31

and the result was drop in the stock.
The weakness that developed in the
market recently was not confined to
any particular group of shares, but
was general. While the so-called Nor
gan and Hill stocks sucn as Reading
and Great Northern suffered, SO did the
Hartman and Standard Oil properties,
as is shown by the falling off in South
ern Pacific, Union Pacific and st. Paul.
One cause of the gloomy feeling
among bull spectators undoubtedly
has been the dissatisfaction over the
announcements of the long-eXpected
melons" by Great Northern and st.
Paul. These so-called melons" are
now referred to derislvely as lemons
and in fact appear to be little more
than somewhat drastic maneuyre
to force the stockholders needed funds
for the properties at time when it
would have been difficult to negotiate
loans through bankers. If it is neces-
sary for great prosperous railroads
to resort to such methods to obtain
funds, ask the stock trader, then, of
what kind. of stuff is their prosperity
made. To this the railroad man re-
plies that 1t is his prosperity and moth
ing else that forces him to seek funds
for new track, new equipment and new
lines to meet the growing demand for
railway transportation. Whatever may
be the facts in the matter there is no
doubt that the incident has produced
an unfavorable impression. Another
source of uneasiness is the now potent
subject of the public and governmental
attitude towards corporations. The
report that the Minnesota authorities
will seek to tax the Great Northern
ore lands now leased to the United
States Steel corporation at the value
placed upon them recently by officers
of the Great Northern was not without
effect. If this is done it will be at the
expense of Great Northern and not If
the Steel corporation, as by the terms
of the lease the Great Northern is to
pay the taxes on these lands. This re-
port therefore, probably mad some part
in the decline in Great Northern, which
sold down 65s in one days trading.
London's attitude on American secur-
titles is being watched closely at pres
ent owing principally to the high
charges exacted there for carrying
American shares over settlement day.
Whether the decline here is a tenn
porary one caused by a momentary
crisis of small magnitude or more
serious interruption to the marking
up of prices is the principal problem
just now. That all lines of industry
continue to thrive no one denies, and
from this it is argued that the dreams
of a further bull movement are not
unreasonable. But just at this point
the money situation looms up as the
big factor. A bull campaign requires
large capital, and the New York banks
are MIXED dry. Unless Mr.. Shaw
should change his mind, or conditions
abroad loosen sufficiently to permit of
gold impOrtations, it is hard to see
where the funds are to come from.
An illustration of the present stu
alton that should not be lost sight of
is that while the Wall street trader
has been paying rate of from 10 to
30 per cent. for money payable on call,
mercantile loans have been made right
along at around 6 per cent. In other
words, the banks themselves appar-
emily have regarded a merchants in
dOrsed note as better collateral to
lend on than the stocks offered
by the brokerage houses. The banks
will be obliged January 1 to finance
the payment of dividends aggregating
over $1S0,000,O00.
The report of the Nipissing COM
pany is very interesting one and
shows strange state of affairs, and
makes the rise in the stock to above
80 and it's collapse to IL more of
mystery than ever The principal mys-
terry is why it went over 80 at all. The
report says that the 10 per cent. of
the property mined shows profit of
about $2,000,0O0. Assuming that all
the rest of the operations turn out
as we'll, it means a total value of 500,
100000, or approximately SIG or SIT
dollars per share of stock. OF course
there is the gamblers chance that
further operations might make it worth
more, and of course, also, there is the
chance that the latter workings might
turn out of less value. At any rate,
it is difficult to see what induced the
Guggenheims to pay for an option on
100000 shares at $25 per share. The
Nipissing fiasco has had less effect
than was expected on other mining
shares, some of which continue in
good demand on the Curb" where
they are traded in.
The proceeding by Attorney General
Mayer of New York against the Am
erican Ice company had little or no
effect on the stock. There was de-
cline of a few points followed by more
than a complete recovery. The stock
is not active, and to support the price
was not a very difficult matter.
The oil famine was so pronounced
at Sherwood candles were used.