The Montgomery advertiser., 1909-06-09
THE STOCK MARKET

New York. June s--The< stock mar ket occupied itself today largely with the factors applying to individual stocks pending the appearance of the government report on condition of the grain crops, after which there was a transformation of the previous tone. With aggressive upward movements m such innuential market leaders as the Hartman Pacifics and Reading ana good advance in United States Steel the general trend was to be expected.
 There were otn moSsase n,Soas of ade,cs. deye1. opments special to the stocks affected or, the operations of the market pools in the stocks. but the general moye- msns was nsrrow: Tne salns ,sauiaatIoa lon which came onto the market at the last yesterday, was not pushed when the market opened today.
 The scarcity of stocks according 10 the phrase of the professional operator turned the traders attention to the long side sof the market naturally. Reading was the early aggressive leader with ing increase in the rate of the dividend and of the retirement of the second preferred stock by exchange Tor com mon and first preferred stock. each m half portions. The talk of proposed dividend increases was kntiuentisi in various stocks, including Atchison. A special incentive for pushing up Att chison is seen in the automatic rise which results from the stockholders rights to subscribe to the new convert ible bonds. The privilege of conver- sion of these bonds into Atchison stock makes their price conform to that or the stock and the rise of the price or the bonds in the market wtdens the premium over the subscription price to Stockholders. Baltimore and Ohio. Louisville and Nashville, and Atlantic Coast Line. also responded to dividend increase rumors. In Missouri, Kansas and Texas the motive of the advance was the reiteration of rumors of buying for control by one of the large railroad systems.
 United States steel was again the subject of accumulation by the Paris syndicate. The buoyant rise of i've points in the Southern Pacific stocks was due to the reported action of the directors looking to the retirement ot the preferred stock. The speculation assumed some striking benefit for the finances of the company from this act ion.
 The privilege of exchange of the pre- ferred stock into common stock rather than accept the $1i5 in cash at whicn the company is entitled to call the stock. would mean, of course. the suD- atitutfon of a six per cent charge on the present volume of preferred stock in the place of seven per cent now paid in dividends on that stock. In the event OF the increase III tlc COtinOA stock dividend which the rise in the price seems to foreshadow. the charge on the company's, treasury would be- come the same.l Also the exchange stock would have the right to share in any further increase over the seveA per cent dividend rate. The benefit to the finances of the company seems ra- ther obscure. On the other hand. the right to call the preferred stock for re. tirement expires next year. so that 1t r~A~ YUnfaranftAl rights to seven per cent dividends if not retired before that time.
 The alternative offer to preferred stockholders of 4 1-2 per cent bonds, with a s20 cash dividend in addition, would affect an annual saving to the company, if accepted by all tho prefer red stockholders. of about $I.20o,- 900. The publication of the govern ment crop report came on the pros porous course of the speculation induc- ed by these special movements. Keen disappointment with the showing of the condition estimate of the winter wheat ard the acreage estimate for spring wheat induced general selling about where they left off last night. The sharp deterioration from SS.5 to S0.7 which occurred during May. was regarded as somewhat sensational The high condition at which the spring wheat starts the season was accepted with satisfaction but the acreage re- ported falls far short of the traders an- ticipations. The work of advancing prices accomplished in the early part of the day was practically undone by this late selling movement. but there was some final rally. sEs,-.g,s5s sf
 Bonds were irregular. Total sales. par value, $7.352.O0O.
 United States bonds were unchanged on call.
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