The Washington herald., 1907-03-30
STOCK RISE IS RAPID
Sharp Soaring of Prices End
ing Bear Campaign.
MONEY MARKET IMPROVED
In Face of April Settlements, Can
Rates Do Not Rise Above . Per
Cent.-EngIish Heavy Buyers of Ca
madam Pacific Sfoek at Depressed
Quotations-southern Pacific suit.

New York. March "A sharp. and in
some instances. Violent rise in the price
Of securities to-day bore witness to the
gradual dawning in the financial district
of a very definite impression that specula-
tive selling of stocks for the short ac-
count has recently been considerably
overdone All the foreign markets. ex-
cept the French bourse, were closed and
Wall street was forced TO rely upon itself
for indications as to the immediate course
Of values.
In the forepart OF the day the market
was dull and irregular. but clearly pre-
sented a frm undertone and gave evil
dence Of a strong desire on the part Of
those having commitments for the fall TO
retire their contracts whenever a favor
able opportunity offered. In the second
hour Of business. quotations for the
standard stocks began 10 slowly advance
and this tendency came 10 be more ana
more plainly displayed until it eliminated
In a brisk and general rise in prices IN
the early afternoon. A brief receding
movement. seemingly caused by the an
nouncenent that a suit has been begun
10 restrain payment OF dividends on
Southern Pacific stocks, was followed by
another uplift. so that while all the quota
tions for the active stocks closed little
below their highest Of the day. they were
still such as to show advances running for
the most part from two to four points.
Canadian Pacific the Feature.
The real feature of the days transac-
tons was an advance Of fifteen points
in the price of Canadian Pacific shares
that was commonly referred TO as a
twisting" Of the short interest in the
stock What developed in the case of this
stock was. however a situation that may.
to greater or less extent, be proved by
later events to be true OF the general
market as we'll.
The bulk Of the holdings Of Canadian
Pacific is. as is well known. in the hands
of English investors. Now. one Of the
characteristics Of Englishmen regarding
the speculative market is the power they
have of keeping their heads. II they he
lieve in a st0ck-that is TO say, have made
up their minds thoroughly concerning its
value-they are not at All scared BY any
such bear" attacks as was made last
week upon Canadian Pacific, and buy
stolidiy on declines in the price Of the
issue.
It was learned to-day that a good. if
not the greater, part Of the Canadian
Pacific stock sold in the last few days.
when spectators for the fall were work
ing their will upon the market. was taken
for foreign account. and had been duly
shipped to the other side OF the Atlantic.
No stock Offering.
There was not in the least to-day any
intent in twisting Of Spectators for the
fall in Canadian Pacific shares. but when
these spectators endeavored TO buy back
the stock that they sold, they found that
no stock was Offering. The price of the
stock therefore, naturally advanced with
great rapidity, so that, indeed. it recoy-
cred practically all Of its recent decline.
As commitments for the fan in the stock
are still. largely uncovered, 1t is obvious
that bear spectators in this instance, at
least. have not been a decided success.
The suit brought to-day. in which a re-
stTaining order was asked, primarily,
from the Federal court to prevent the
Southern Pacific Company from paying
ditidends on its common and preferred
shares. presents some interesting ques-
tions Of law which must eventually be set
ttrAf Out " men are 4t no way llue 1ellGi4l
from the stock market point Of view.
Question Right of 5. p. TO Pay.
The points raised are as to the right Of
the Southern Pacific Company 10 pay div
idends on its common and preferred stock.
while it does not pay the full interest on
the various mortgage obligations of a road
which IS now part of the main line of the
Southern Pacific system in Texas.
This particular part of the road is op-
Grated under the laws of the State OF
Texas as a separate line and the question
TO be settled is whether it is, from the
earnings Of the road itself or from these
of the Southern Pacific system. that the
interest payment should be made Legal
proceedings over this can in no way lead
TO a suspension of the present Southern
Pacific dividend, as the distribution as to
the amount involved is relatively small
and can easily be secured by a bond, pend
ing the progress Of the action.
No doubt the main causes behind the
rise in the market to-day We're in the first
place the prevalence of a feeling that the
strike of the trainmen and conductors on
the Western railroads was not at all prob
able and secondly. the brighter aspect
worn by the money situation. The bureaus
collecting statistics from the banks agreed
IN the estimate that the cash gain of the
banks in the week this far from all
sources was over 81. 2.000. 900 while the sub
treasury was again debtor TO the banks
during the day in over 81, ,200000
Although final preparations had to be
made to-day for the lst of April disburse-
ments. call money rates at no time rose
above 3 per cent, hank renewals were
commonly made at 4 per cent, and timc
money for four months was lent at per
cent. To-morrow's bank return will be
complicated, no doubt, by certain pay.
raents made on syndicate operations dur
ing the week, but the common expeeta-
tion was that the bank surplus would be
exhibited tomorrow as having been con-
siderably enlarged since last Saturday.