The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-06-10
FINANCIAL AND COMMERCIAL,
WEpNEspAY, June O.


In the early dealings to-day the stock
market displayed a weakness that was
c~uriously in contrast with the sharp up
bidding Of prices that occurred in the last
quarter Of an hour of business yesterday
afternoon. Later on IL rallied only to
again fall more violently than before
and again turning upward in the closing
hour OF the day under the lead OF an adj
vance in Union Pacific stock. The market
as a whole shared in the final rise in only
a h~esitating way and the advance that oc-
CURED except in Union Pacific and n
or W other stocks was not sufficient
to counterbalance the earlier decline.
The fall in the market during the morning
hours of business appeared TO be caused
chiefly by heavy selling OF, stocks for the
account Of London due, SO far as could
be observed, to the discovery at the Lon
don Stock Exchange settlement which
began to-day that the speculative ac-
count for the rise there in all stocks and
particularly in American issues was much
larger than had been supposed; and a
selling Of stocks in London consequent
upon this disclosure of course eSertei
an influence here. In London, too. there
was a rumor that was secuted here by
those who should be best informed on the
subject that a hitch" OF some kind had
arisen in the impending negotiations for
the listing OF United States Steel shares
on the Paris Bourse. The second de-.
cline in our own market which took place
in the middle Of the day seemed on It's
face to be more of a speculative drive
at values than anything else; and a quick
retirement OF contracts for the fall by
spectators undoubtedly had much to
do with the succeeding recovery. No
explanation whatever was offered for the
large buying Of Union Pacific stock that
went on in the afternoon, but the move
ment in the stock, in whatever way origi-
mating. was sufficient to carry its price to a
new high record for the year and to a new
high record absolutely when allowance
is made for the recent deduction from
the stock of its quarterly dividend.
Southern Pacific stock, strangely
enough, was as heavy throughout the
day as Union Pacific was strong. the
speculative explanation Of the Phenome-
non being that the announcement yes
terday Of the official terms Of the retire
ment Of Southern Pacific preferred stock
was in the natur of a winding up Of
good news" on the STOCK for the time
being. A theory regarding the effects
of the new scheme that appears to be
reasonable is that there may be from
now on not a little selling OF Southern
Pacific preferred stock by investors
who do not care to change their invest
..ont eror, , praforraI into n commop
stock. The supposition is also fair. on
the other hand. that IL present conditions
continue the time is not exceedingly
remote when the dividend distribution
on the outstanding volume Of Southern
Pacific common stock. this including all
the new stock issued for the conversion
OF the Southern Pacific preferred stock
into common shares. will be at a greater
than at present. In the grain trade
to-day the prevailing opinion was that
the Government crop report Of yesterday
did not really afford much to the trade
in the way OF significant news and that
conclusions as to the outcome OF the
years harvest must await the report
OF a month hence. There was therefore
a ouieting down Of the speculation in
grain. with the net result that changes
in the price OF the principal options were
small. The market for grain. however.
retained its strong undertone, and a
constant help in maintaining this is the
poor reports as to the state Of foreign
crops. In the figures published this
afternoon. which are commonly accepted
as Official in the financial district re-
earding the monthly output OF pig iron.
there was a visible reflection Of the i'm
provement in the iron and steel industry
that took place last month. The weekly
output OF iron advanced from $4,000
tons a week on May / TO +42 900 tons
on June /. this being the largest out
put at the beginning Of any month
since November. 1907. although not a
little below the high record output of
past years. There was a detailed an
nouncement to-day OF the new plans
for the reorganization of the Chicago
and Great Western Railway Company
but perhaps the most important develop
ment Of the day was an advance in call
money rates to "a per cent. and a visible
unwillingness on the part of bankers
to make time loans running over the end
OF the year at rates hitherto quoted. The
advance in call money was doubtless
connected with the temporary dema nds
for funds incident 10 yesterdays monthly
pond sale. but this same municipal bond
sale also bore witness to a somewhat
closer working of the general money
situation.
New York Stock Exchange Sales. June o.