Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1909-06-04
SENSATIONAL MARKET.
Remarkable Six-Point Jump in U. S.
Steel-Upward Rush of Over Six
Points in Southern Pacific.


New York, June 3.-The local Sc
curities market today was replete
with sensations and the causes lying
back of the various spectacular DEM
onstrations made by the price move
ments were kept yelled from public
knowledge. That such causes exist
ed and were Of substantial nature was
taken for granted on account Of the
convincing evidence presented by the
tape itself. 1t would be difficult to
conceive of any such reckless and
prodigal lavishing of resources as
would be involved in a purely manip-
ulative movement in Southern Pacific,
such as its upward rush of over six
points today on dealings in 205,000
shares. Neither was it supposable
that this demand was due to any sud-
den realization on the part of a wide
spread public understanding of the
merits of the Southern Pacific shares.
The principal buying of the stock,
moreover, came in enormous blocks
from individual brokerage houses.
These features of the movement
prompted the inference that the buy
ing came from persons informed of
some forthcoming plan involving the
finances or organization of the COM
pany. What that plan might be re
manned in the realm OF pure conjec-
formation to the public went Rumors
on the subject dwelt on the likelihood
of a coming increase in the dividend
on the common stock. Much was
heard, also of an intended retirement
of the preferred stock, although the
privilege lodged in that stock Of ex-
change into common stock at par for
par would preclude the advantage
which might conne to the company by
the retirement of this seven per cent.
issue at 115, which is provided for it
with the alternative Of exchange. The
change of preferred stock for com
mon would deprive the former of it's
prior claim to seven per cent. divi-
dends, but it would also entitle it to
share in any dividend disbursement
above that amount. The senior COM
pany, Union Pacific, was tardv in re-
spending to the excited advance in
Southern Pacific, and, in fact. sold off
at one time to a lower price than it
closed last night Later in the day
ii came into the movement more fully
Before the Southern Pacific movement
became fully expective in its sympa
thetic influence on the general list,
some degree of apprehension existed
over the market conditions presented
by the syndicate plan for introducing
United States Steel on the Paris
bourse. The removal from the float
Ing supply of the large blocks con-
ltemplated by the Paris plan has ad-
mfttedly added greatly to the difficult
ty of the short interest in United
States Steel. The report from Paris
of million shares to be held would
cover fifth part of all the outstand-
ing common stock of the gigantic cor
poration and the trusteeing of this
amount of the stock, even with the
purpose of selling other securities
bearing beneficial interest in the
stock, would imply a revolution in
The market standing of the security
There was the added suggestion that
this accumulation might be still GO
ing\on to provide for contract obli-
cations to supply a given amount of
the stock. Confident assumptions were
INDUCED in that an early increase in
the rate of dividend disbursements
might be inferred for the United
States Steel shares, since the prin-
cipal banking interest in the property
was lending itself to the flotation Of
the shares in the Paris market price
implying higher dividends than now
pSIu. The influence of the same
banking house in the administration
of the corporations affairs was held
to justify the conviction that a desire
by that interest to increase the divi-
dend rate would prevail with the di-
rectors. The remarkable six point
jump in United States Steel preferred
had no other explanation offered for
ii than the increase of the security of
the return growing out of the expan-
sion in earnings. The whole market
became very buoyant and animated
before the close of the day. but the
influences ruling in all radiated from
the impressive operations in the Har-
riman stocks and in United States