Omaha daily bee., 1908-11-25
new YORK STOCKS AND BONDS
Prices Advance Sharply Again and
Volume Of Dealings Expands.
SOUTHERN PACIFIC THE FEATURE
Application 20 List New Issue of
Common stock. Gives Rise 10 Ru-
mOrs of Important Develop
ments In HarrImans.

NEW YORK. Nov. 24.-Prices Of stocks
advanced again today and the volume of
dealings expanded over the shrunken to-
tai OF yesterday, but without getting back
fully to the daily average OF last weeks
transactions.
The market showed the effect Of the
technical causes towards recovery from
the outset OF the day, but the movement
had shown signs Of tagging when a
stimulating effect was felt from the APP
plication to the stock enCtange to list
$14,s G6, 400 additional Southern Pacific com
mon stock to be Issued in exchange for.
the preferred stock, which is outstanding
to that amount.
The preferred stock, while entitled to
per cent dividends prior to common stock
dividend claims, is subject to redemption
at lis at any time prior to July !, 1910. 1t
up to that time. AS the common stock
had never paid more than 6 per cent
dividends and has sold lower than the
preferred stock, there has been no attrac-
ton In the exercise of the privilege of
exchange. The price of the stock has now
risen above redemption price Of the pre-
ferred stock, which is 115, but stlll sells
below the market price for the preferred,
which was 12lh today. For these reasons
and general ignorance of the fact that
this new stock had been actually author
lied, the bare announcement of the ap-
pltcation to place 1t on the list of the
stock exchange had an appearance of a
mystery. The step was an Indication that
some actual demand was being made for
ferred stockholders, and there is the fact
that the Union Pacific holds in It's treas
ury S34, 2O0,OO0 of this Southern Pacific pre-
ferred stock thus liable to redemption at
lilo, or with the privilege Of conversion
into common stock. An informed move
mem to convert would imply a belief in
higher dividend for the common stock,
while the preferred stock would remain
limited to Z per cent dividends. From the
standpoint of Southern Pacific finances,
however, the increase in the volume of
common stock with claims on increased
dividends would encroach on the claims
to profit Of the present stockholders. The
fact that this additional common stock
has been authorized finds no place in the
statements of the manuals regarding
Southern Pacific finances. 1t was stated
In connection with today's application to
list the new stock, that its authorize
tion had been carried with that for the
preferred stock, In view OF the conversion
privilege of the latter. In the case of
the Union Pacific, the stock to provide
for the conversion privilege of the con-
vertible bonds has been expressly au-
thorized and finds a place in the financial
action makes so little change in the ex.
listing status of Southern Pacific, and
there was so much confusion regarding
It's Significance. that 1t was simply made
important financial projects affecting the
two favorite Hartman properties were
that was the real reviving force in the
market and in broadening and extend'
ing the movement as the day progressed
An excellent impression was produced
by the success of the New York City
bond isspe, As has been said, the pro.
fessional element quite generally turned
to the long side Of the market on tbs
supposition that the reaction had re,
duced the weak holdings and had bull
up a short interest with a requirement
to purchase stocks. The closing tone wa:
very strong and with prices generally vi
from 2 to 8 points on the day.
Bonds were strong. Total sales, pa
value 81, 400, 900. United States bonds wer,
unchanged on call.
Number of sales and. leading Quotation