Omaha daily bee., 1909-06-09
NEW YORK STOCKSAND BONDS
Early Market is Dull Awaiting Gov
eminent Crop Report.
IT THEN BECOMES AGGRESSIVE
Hartman Pacincs, United states
steel aud Reading Lead the
Advanee-Bonds Are
Irregular.

NEW YORK, June S.-The stock market
occupied Itself today largely with the fac
tors applying TO individual stocks, pending
the appearance OF the government report
on the condition Of the grain crops. after
which there was a transformation Of the
previous tone. With aggressive upward
movement in such market leaders as the
hartman Pacifics and Reading and a good
advance In United States Steel, the general
upward trend was to be expected. There
We're other advances marking the effect Of
Tuunofs or developments special to the
stocks affected or the operations of market
pools IN the stocks, but the general move
ment was narrow.
The rather Urgent pressure Of speculative
liquidation which came on the market at
the last was not pushed when the market
opened today. The scarcity OF stocks, ac-
eorolng to the phrase Of the professional
operator, turned the traders attention to
the long side Of the market naturally.
Reading was the early aggressive leader,
with a persistence Of the representations OF
a coming Increase in the rate OF the divi-
dend and Of the retirement of the second
preferred stock by exchange for common
ana first preferred stock, each In half por-
lions. The ak Of proposed dividend in
creases was influential in various stocks,
including Atchison. A special incentive for
pushing up Atchison lis seen in the auto
matte rise which results in the stockholders
rights 10 subscribe to the new convertible
bonds. The privilege of conversion of these
bonds into Atchison stock makes their price
conform to that OF the stock and the rise
III lnS price OF the DOn0S IN the maTkC'
widens the premium over the subscription
price to stockholders. Baltimore & Ohio,
Louisville g. Nashville and Atlantic Coast
Line also responded to dividend increase
rumors. In Missouri, Kansas & Texas, the
motive of the advance was the Federation
of rumors of buying for control by one Of
the large railroad systems. United States
steel was again the subject OF reports OF
accumulation by the Paris flotation syndt-
cate. The buoyRnt rise of five points in the
Southern Pacific stocks was due to the
reported action of the directors looking to
the retirement of the preferred stock. The
speculation assumed some striking benefit
for the finances of the company from this
action. The privilege of exchange OF the
preferred stock into common stock rather
than accept the lis in such, which the com
pany is entitled to call the stock, would
mean, of course, the substitution of a 6 per
cent charge on the present volume OF
preferred stock in place of the Z per cent
now paid in dividends on that stock. In
the event of the expected increase IN the
common stock dividend which the rise in
the price of the stock seems to foreshadow'
the charge on the company'S treasury
would become the same. Also the exchang
stock would have the right to share In any
further increases over the Z per cent dlVl-
dend rate. The benefit to the ~financters OF
the company seems rather obscure. ON
the other hand, the right to call the pre-
ferred stock for retirement expires next
year, so that It would have permanent
preferential rights TO Z per cent dividends
81 not retired before that time. The alterna,
tive offered the preferred SIOChuoluSis' "
AZ per cent bonds with $50 in cash In add
ton, would effect an Rnnua saving TO the
company, II accepted by all the preferred
stockholders, of about 81, 100000.
The publication of the government .croI
report came upon the prosperous course on
the speculation induced by these speclal
movements. Keen disappointment with the
showing of the condition estimate for win
ter wheat and the acreage estimate iol
spring wheat induced general selling q
stocks and brought prices BACK 70 aoou
where they left off last night. Ditteren'
state crop reports on June conditlon ap
pearing recently had aroused hopes OF I
showing of Improvement in the percentaS'
showing OF the governments report IN
sharp deterioration from S3.5 TO SOL whlci
occurred during May was regarded as some
what sensational.
The high condition at which the sprinl
wheat starts the season was accepted VIII
fsntfsfactfon, but the acreage reported lei
FAR short Of the anticipation OF what woul'
have been the result of the high prices q
which cash wheat has been selling; IN
work OF advancing prices accompiisned II
the early part OF the day was practlcall
undone by this late falling movement pu
there was some final rally,
Bonds were irregular. Total saies' pa
value, S7.S62, 900. United States bonds Wer
J!umber OF ssies and leading quotation