The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-06-04
FINANCIAL AND COMMERCIAL.
THUBspAY, Juno 8,

THURSDAY, June s.
There was no complaint to-day in Wa
Street. as there has been for some little
time past, that the stock market though
strong andactive was really a market mad
up to a great extent of transactions in on
or two leading stocks, principally OF lat
the United States Steel common shares
From the beginning of the Stock Exchang'
session to-day a sustained buying powe,
exhibited itself in practically all the prom
inent railway and industrial shares OF
a larger scale than has been seen at any
time in the present year. So far as TN
volume of market dealings was concerned
they were exceeded once before thisy year
namely. on February 90, when the marke
was convulsed by liquidation and specu
iative pressure for the decline following
upon the announcement Of the reduction
in list prices by the United States Stee
Corporation. To-day. although thu
breadth Of the market was its notable
feature. more attention was attracted
thar by anything else by the extraordinary
strength shown by Southern Pacific
common stock. This stock made a ne
advance of YER six points and left OF a.
the days highest quotation. Union Pa
cific rose nearly three points. and ad'
vances of between one and two points
were common in nearly all the leading
railway issues. Such a sensational eleva'
ton as occurred in the price Of Southern
Pacific let loose. Of course. a flood oil
rumors bearing upon the u OF the
movement. Inasmuch as several month";
must eiapse before the next quarterly
dividend declaration upon Southern
Pacific common can be made speculative
gossip came to the conclusion that some
other reason existed for the particular
strength OF the stock; and a story heard
more commonly than any other was,
perhaps, that the Southern Pacific d.
rectors proposed to create a new company
to which should be turned overthe South
ern Pacific oil lands and other property
Of similar nature. the stock Of this COM
pany being distributed among the South
ern Pacific stockholders in much the same
way as the Great Northern ore certificates
were divided among the stockholders OF
the Great Northern Railway Company.
1t must be said that this view did not
appear III j w
people and hat in these quarters 1t was
held to be more likely that action OF the
Southern Pacific directors looking for
ward to the retirement Of Southern
Pacific stock at a price OF lis. the stipu-
lated figure. would be the next important
development Of interest in Southern
Pacific affairs. As the holders OF the
Southern Pacific preferred stock have
the right to convert their stock into
Southern Pacific common shares dollar
for dollar, a call for the retirement OF the
stock at ll5 will naturally under present
circumstances lead to its conversion
rather than its paying off, the net result
of the operation being an enhancement
Of the lien OF Southern Pacific common
stock upon the property. The process
would also entail a saving OF 1 per cent,
per mum in the amount OF money now
paid out in dividends upon Southern
Pacific preferred stock.
simultaneously with the uprush in
Southern Pacific there went on to-day a
rise Of almost exactly the same extent in
United States Steel preferred stock. This
might have been due to the fact. which
has become known authoritatively. that
while the arrangements for listing, or
what mounts to such, Of the United
States Steel shares on the Paris bo,Hse.
Of which so much has recently been heard
only affects as thus far officially concluded
io0.O 900 shares of United States Steel COM
mon stock it is practically certain that
the matter when finally settled will in
clude 1000, 900 shares. The strength Of
United States Steel preferred also ap-
peared TO be based upon the fair pre-
sumption that the position and prospects
of the United States Steel Corporation
now secure the 7 per cent. annual dis
tribution upon the corporations preferred
shares in an exceedingly firm way, As
regards the iron and steel business proper
estimates increased to-day Of the earn
ings likely to be shown by the corpora
ton for the present quarter. The stronger
undertone continued to-day in copper
metal, and. what was Of more importance.
a decline took place in the grain market
by reason Of the highly favorable reports
of crop conditions sent in from the West.
These counterbalanced in their market
effect further reports of damage to the
Hungarian and Argentine crops. A con-
sideration also weighing in the grain
trade at the moment is the character Of
the Ohio and Kentucky State crop re-
ports for May. which show decided i'm
provement in agricultural conditions in
the month in at least that portion Of the
winter wheat belt lying east OF the
Mississippi River.
New York stock Exchange Sales, June q.