The Montgomery advertiser., 1909-06-10
THE STOCK MARKET

New York, June s.-Ths decisive turn taken by the price movement of stocks today influenced speculative sentiment to take account of unfavor- able factors. but there was positively unfavorable in the news. The rapid decline in Southern Pacific upon the announcement, of the much heralded asen to return shs % ss Co which favorable developments have been discounted in the speculation. The retirement plan left the privileged stock the most attractive for preferred stock holders and make 1t practically certain that 1t would be followed by all those stockholders Such an ex- the companies financial position practi- cally where 1t is, as the effecting Of any saying on the present charges would depend on the new common stock being kept on a 6 per cent. basis compared with the per cent. paid on the preferred to be retired. An in- crease in the common dividend to per cent. has been confidently counted on.
 computation of the income return on this stock even with its dividend raised to 6 per cent. showed that on stock purchased at the price touched yesterday, which was 1855, this return would be less than on Union Pacific at the price and with the dividend al- ready prevailing on the present stock. Ii was this computation, which in- volved no new facts that was respon- sfble for the contrary movement in the two Hartman stocks. There was an apparent shifting of holdings from southern Pacific into Union Pacific.
 The large benefit to accrue to the Union Pacific treasury from any in- crease in the Southern Pacific divi- dend. was an additional incentive to this operation.
 Quite as much influence was exerted on speculative sentiment by the de- parture for Europe of stock ex- change member credited with an fm- portant share in the largest transac- tions of the recent past in the bull campaign as by any actual develop ments in conditions bearing on values. This departure was read as sign scale in the bull campaign with con- dittons to follow of distribution of stocks into weaker hands. Iessened support on an end scale for prices and weakness. The Government crop re- port was of some continuing influence towards depression Of stocks, although this was modified by the indifference, the Govarnments figures. The speeu- lation was disposed to a more sober consideration of the large reliance placed on the immature spring wheat and the newly planted corn crop for the favorable harvests that are hoped for. Further discounting of prospects so distant apparently did not appeal to favor. A distinctly bad impression was created by the outcome if the New York City bond sale for which applications were less than twice the amount of- fered.
 The low price realized which reach ed only 100.71 on the average was fur ther cut by sales of the bonds when issued on the Stock Exchange as low as 100 1-2. The effect was depressing even after due allowance for special conditions contributing to the result such as the unsettled question of the city's debt limit and the non-partici- patton in the subscription of the bank ing group which has played the larg- est part in recent financing. The slight rise inf the call money rate was ascribed to the applications of the New York City bonds, moderate<t though they were. An active demand has sprung up for funds on time and rates are ad- vancing. Discounts also rose in Lon- don and Paris today. The general money situation, therefore, was shap- Ing Itself quite definitely away from ease. The aggressive rise in Union PaA ciflc helped the late restoration of the price level and reduced the days net changes to small proportions.
 Bonds were easy; total sales par value $5,Ss0,90o. U. s. bonds were unchanged on call.
 CLOSING STOCK LIST.