The Washington herald., 1907-09-06
MARKET HAS A BOOM
Sharp Upward MOvementSetS
In During Afternoon.
BURLINGTON DIVIDEND CAUSE
Extra o Per Cent and Increase from
to s Regular Has BuOynnt Ef-
feet-FaiIure of Watson House Has
Little Bearing on the Street-Grain
Prices Are Again in a Decline.

New York. Sept 5.-The most vigorou.
upward movement seen In the market
for several weeks past set in this after.
noon and continued with unabated vigol
up 10 the close Of the day; result.
ing not only in substantial gains from
last nights closing but in the attain
ment by some of the active leaders OF
a substantially higher level than they
had before reached since the lowest points
OF the year were touched, about the mid
die Of August.
The early trading gave no indication OF
the buoyancy which was to mark the
close. opening quotations being in nearly
all cases At declines from yesterday S
final figures. and the course Of prices dur
the influence Of repeated attacks by pro-
fessional operators.
About the end Of the first hour a feeble
attempt was made to rally the market
on the announcement that the suit against
the STANDARD OIL Company had been ad-
journed until September Il, but it was
not until the failure Of a stock exchange
house was announced that the real un-
DERIVING strength of the market became
apparent.
On short Side of Market.
The house in question was supposed to
have been operating recently on the short
side OF the market. and on the long sidd
of wheat in an effort 10 make up hea@y
losses suffered IN the securities of the
Hiu roads and other high priced issues
al the time Of the panic in March. The
failure, therefore, was construed as indi-
cation Of the straits Of the short interest.
and q determined effort was made 10
force short covering.
This turned prices upward. and just as
the movement in this direction began 70
attain headway very definite rumors were
circulated TO the effect that an extra div
idend Of per cent and a quarterly divi-
dend Of . per cent had been declared on
the stock of the Chicago, Burlington and
Quincy. This rumor was officially con
frmed later in the day. the Official an
nOuncement being the principal cause of
the great strength developed during the
last hour Of business. For six years the
co rolled by Great Northern and North
ern Pacific these roads owning nearly
all Of the S1000lo00. and guaranteeing in
terest on the Burlington joint Is ex-
changed therefor at the rate of $500 IN
bonds tor each 800 share.
Dividend Rates Increased.
Heretofore the Burlington dividend has
been 7 per cent a year, and the declara-
ton Of an extra dividend Of per cent
viii equalize the dividends with the bond
interest charge for the period already
elapsed. while the increase N the regular
rate Of dividend 10 S per cent will make
the dividend distribution for the future
suffice for the payment Of the interest on
the bonds.
There was no change Of consequence in
the money market. and the Bank Of Eng
land made no change in its rate of dis
count, and presented fairly strong re-
turn for the week It was said that fairly
large sales Of copper had been made at
the new level Of prices. but the market
for the metal in London was weak.
Grain prices suffered a sharp decline on
the announcement Of the failure Of the
stock exchange house, supposed 10 have
been operating for an advance The
house had made a feature of reports on
the crop prospects. and these had for a
long time been Of a kind favorable 10
higher prices for wheat