New-York tribune., 1908-03-12
Closing prices Of active bonds dealt in. witt
STOCK MARKET OPERATIONS.

The earlv course of the stock market yestor
day gave no indication Of the remarkable up
turn which the afternoon was TO witness Open
ing prices were, as a rule, under the final figures
Of the previous day, and although the market
hardened by the end OF the first hour it was not
until well after noon that the upward pace
ouickened when. on the circulation of reports
that the President had definitely given his sane
ton 10 the plan Of raising railroad freight rates
as q means Of preventing the lowering of wages
and a ru11or that the Union Pacific management
had completed the plan for the segregation 81
/ the company's assets, a big dividend TO be de
cared TO the common stock holders forthwith an
extensive buying movement set in The shorts
frightened by the advance OF the market instead
OF the decline which they had figured as natU-
rally due, supplied the major part of the pur-
chasing demand. with professionals who had
taken the long side bidding up the whole list
Under this combined demand prices rose rapidly
10 Ihe highest point reached on the present
movement, among the maximum gains for the
day being as points in Union Pacific. in which
The transactions were exceedingly large; as in
Reading. = q in Southern Pacific, points in St.
Paul and 12s and l, respectively, in United
States Steel common and preferred In the last
hour considerable recession occurred on profit
taking and on renewed short selling, but the
market closed with general net advances. Com
mission house business was still scanty in vol
uTne. but as usual, will probably be attracted If
the advance can be carried little further. The
total sales were about 100000 shares, the l2rS
arv
Ne confirmation came from Washington Of the
Presidents reported attitude vard the freight
rate scheme. and the stock market operators
paid no attention 10 the prospect of the plan
working the desired end-for the raising of the
price Of transportation, when prices of all COM
uaodities are declining. would be an interesting
experiment and one without precedent as sue
cessful policy. As for the Union Pacific rumor.
on which also the market acted without ap-
parently troubling itself the little detail Of
= confirmation, authoritative denial before
the close OF business, just as denial has come
several times previously within the last few
months, often the runOr has been set
afiOat. The prospect is that no announcement
OF a plan viii be made for months to come, and
even if it We're TO come Immediately il is diff
cult to sec in what way it would greatly benefit
the present common stock holders who now de
rive the sole return from the revenue produced
by the investment holdings of the Union Pacific.
in the segregation Of the assets the convert
ible bond holders will be participants with the
common share holders, and the preferred stock
holders have given a rather strong intination of
their determination to figure also "a beneici-
aries.
The news that President Roosevelt had di-
rected the Commissioner OF Corporations TO in
vestigate the methods OF stock trading was
known before the close Of the market, but had
depressing effect on business. The investi-
cation, it is assumed, will concern itself prin-
cipay with the way 81 doing things the New
York Stock Exchange. and presumably every IA
cility viii be afforded the agents of the Com
missioner of Corporations in conducting their in
quiries. The necessity for having in the finan-
cal centre Of the country, 70 which all important
corporations for their financing. great
market Tor the free exchange of securities is
everywhere conceded, and recognition is widely
given 10 the fact that the regulations Of the
New York Stock Exchange provide many safe
guards for investors. But these regulations. ad-
Tl1az- he of
dition and Improvement, and if the government
inquiry shall result in the deVising of a prac-
ticable way Of curbing stock gambling, so called.
it VIII not have been made in vain.