Omaha daily bee., 1909-06-04
NEW YORK STOCGSAND BONDS
Feature of Market is Six Point Rise
in Southern Pacific.
BUYING is IN LARGE LOTS
SIX Point Rise I'm steel Preferred Near
Close Causes whole List to
Become BuOyant and
Animated.

NEW YORK, June S.-The securities
market in New York today was replete
with sensations and the causes lying back
OF the various spectacular demonstrations
made by the price movements were Kept
yelled from public knowledge. hat such
causes existed and were OF substantial ma
ture was taken for granted on account OF
the convincing evidence presented by the
tape itself.
Il would be difficult to conceive Of any
such reckless and prodigal layishing OF re-
sources as would be involved In a purely
manipulative movement in Southern Pa
cific such as its upward rush of over six
points made on deals I'm 5000 shares.
Neither was 1t supposable that this de-
mand was due to any sudden realisation
on the part of a widespread public 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 or the
movement prompted the inference that the
buying came from persons. Informed OF
some forthcoming plan involving the, fl
nances or organization of the company.
Rumors on the subject dwelt on the likeli-
hood of a coming increase in the dividend
of the common stock. Much was heard
also of an intended retirement of the pre-
ferred stock, although the privilege lodged
in that stock of exchange into common
stock at par for par, would preclude the
advantage which might come to the com
pany by the retirement of this Z per cent
issue at LIE, which is provided for with
the alternative of exchange. The exchange
Of the preferred stock for common would
deprive the former OF its prior claim to
Z per cent dividends, but 1t would also en-
title IL to share in any dividend disburse-
ments above that amount. The senior COM
pany Union Pacific, was tardy in respond
ing to the excited advance in Southern
Pacific and in fact sold off at one time to
a lower price than II closed last night.
Later in the day 1t came into the move
ment more fully.
Before the Southern Pacific movement
became fully effective in its sympathetic
Influence on the general list some degree of
apprehension existed over the market con-
ditions presented by the syndicate plan
for introducing United States Steel into
Paris. The removal from the floating sup
ply of the large blocks contemplated by
the Paris plan has, admittedly, added
greatly to the difficulties of the short In
terest in United States Steel. That short
interest was supposed to be large and to
include some interests that are important
factors in the stock market speculation.
Some OF the recent heavy liquidation In
uted to losers on the short side in United
States Steel who were protecting them
selves in this manner. 1t was feared that
the continued rise in United States Steel
might thus hurt the general market. Lack
of detailed information of the scope of
the Paris operation in United States Steel
left room for wide surmises. These were
directed most eagerly to the amount of the
accumulation of the stock involved and
to the price paid for IL. The remarkable
6-point jump in United States Steel pre-
ferred had 10 other explanation offered
for 1t than the increase in the security OF
the return growing out of the expansion In
earnings. The whole market became very
buoyant and animated before the close,
but the Influence ruling in all radiated
from the impressive operations in the Har-
riman stocks and in United States Steel.
Bonds were firm. Total sales, par value,
$1O,VlS,OOO United States bonds were I'M
changed on call.
lumber OF seles and leading quotations
| on stocks were az f0IlOUss