Los Angeles herald., 1907-09-06
HILL CUTS
BIG MELON
BURLINGTON DECLARES PEI
CENT DIVIDEND
OFFSETS FAILURE OF WATSON
& co.
Prominent Firm, Heav, Dealers II
Northern Stocks and Wheat, Goes
Down--Market Stands Under
Expected Fall
l,r Associated Press.

lsr Associated Press.
NEW YORK, Sept. 5.-The bad news which
mas been supposed to be hanging over the stock
market eventuated today in announcement OF
the failure of Watson & Co., stock exchange
house, after which, and Burlington per
cent extra dividend declaration, there was
buoyant recovery from the weakness which
had been in evidence yesterday and early to-
day.
arm which has occurred through all the dras-
tic contraction of values of securities OF the
spring and summer, record whicn mas peen
q subject of surprise. That the trouble Wnicn
pulled the firm down was not OF the fmmedl-
ate past was the general suppostion, surmise
pointing to the shrinkage to some OF the
Northwestern railroad group, among the ear
Hest in the severe decline. as the origin OIL
the embarrassment.
The incident called attention to the fact
that an instalment of SO, 100000 of Great North
ern subscription is payable to morocco, ana
revived consideration of these recurrent re-
uuirementS for capital already subscribed put
not paid
On September 20 there is payable the final
nstallment on the Union Pacific convertible
bonds, which will call for S3T,500,ooO 1t was
ntimated today that there would be no ex-
tension of the syndicates which underwrote
these bonds, and also only small portion or
the syndicate holdings has been marketed.
On October /, again, there falls due S11, 400.-
No small part of the uneasiness prevalent In
the stock market has been due to the knowl-
EDGE of the difficulties involved in finding re-
sources for meeting accruing calls of this KIND
by reason of the tight money market.
The fact of failure as after effect OF
events so far in the past left an unpleasant
Impression on sentiment The feeling of RELIEF
pyer having the matter /out Of the way over
bore other considerations, and also left a short
interest uncovered that had sold stocks on
early information of the trouble. The special
weakness of the Hill stocks in the early deal
lngs on account of the coming failure was
supplemented by depression in the copper
stocks.
There was another break in the stability OF
the price of copper here on the level of this
week On the other hand, advices from the
non trade were encouraging.
The easier tone CT time money was still evi-
dent, but rates for call loans were slightly
rtiffer The extra dividend on Burlington stock
confirmed rdmors many times renewed IN tne
past Of an intended melon cutting for the Hill
stockholders, but the increase in the regular
dividend rate was surprise.
Causes Reaction
The announcement coming in the midst OF
nnfavofabfe influences of the stock exchange
Hrrn,i failure on these stocks caused vio-
lent upward reaction and turned the wnole
market buoyant in which state it remained
until the close
Bonds were firm Total sales. par value
1911. 900. United States As declined u on call
Directors Of tho Burlington declared quar-
lerly dividend of 2 per cent on capital STOCK
md an extra dividend of per cent. The last
quarterly dividend was 1% per cent.
Concerning the extra dividend j. j. Hill SAID:
Northern Pacific and Great Northern have
nad Burlington for about six years, and our
ing this tins Burlington has not paid the
CARRYING charges of joint per cent bonds TO
the extent of 1 per cent. and therefore to
equalize this deficiency per cent additional
has been declared on Burlington stock.
.'The annual report of 1907 VIII show that the
BURLINGTON has had the. best year in It's his
tory The additional dividend on burlington
stoclx will contribute about S3,250,000 apiece to
he treasures of Great Northern and Northern
Pacific This is equivalent to more than per
rent on the capital stock Of Great Northern
and Northern Pacific"
The announcement caused violent repouno
in Great Northern preferred and Northern
Pacific. which own jointly nearly all of that
,tock. The whole list rose strongly in sym
watson & Co is composed of Lewis T. Wat
son Henry P. Watson, r. " Jones and G. q.
Anderson 1t has branch offices in Duluth,
Not sprines va; Minneapolis and Winnipeg.
Watson e. Co. have been large operators IN
grain Fl. " Jones, one Of the members or
he firm, is a crop expert and spent much OF
nis time getting through the wheat belt, fol-
lowing the progress of the crop and Issuing es-
Inmates of it.
The Arm has been identified particularly with
great Northern and Northern Pacific stocks,
and is reported to have suffered severely In
Drain in these stocks last December Ihe fali-
are had been anticipated on the stock excnange
and the actual announcement did not inouce
any considerable selling.
There was a sharp decline of about z cents
m the price of grain In the market Following
the failure. Watson & Co. had been predict-
ing that grain prices would advance, and IT is
renerally understood that their customers had
i,1t tba