Omaha daily bee., 1909-06-10
NEW YORK STOCKS AND BONDS
Decisive Downward Turn Taken il
the Price Movement.
SOUTHERN PACIFIC IS FEATURE
Hartman Interests Announce Much
HeraIded PIan-IndicRtions of
Big PrOats In Bull
Campaign.

NEW YORK. June 9.-The decisive down
ward turn taken by the price movement
Of stocks today inclined speculative senti-
ment to take account Of unavoidable fac
tors, but there was little that was posi-
lively unfavorable in the news The rapid
decline in Southern Pacific ubon, the m
nouncement OF the much heralded plan to
retire the preferred stock was taken as
an object lesson of the extent to which
favorable departments have been dis
counted in the speculation.
The retirement plan left the privileged
exchange Of preferred for common stock
the most attractive for preferred stock
purposes and made it practically certain
that II would be followed by all those
stockholders. such an exchange. II was
realized, would leave the company's finan-
position practically where it ~, as
the effecttng of any saving on the present
charges would depend or the new common
stock being kept on a 6 per cent basis,
compared with the I per cent paid on the
preferred to be retired. An increase in
the common dividend to Z per cent has
been confidently counted on.
A computation of the income return on
this stock, even with the dividend raised
TO 6 per cent. showed that on stock pur-
chased at the price touched yesterday,
which was 1856, this return still would he
less than on Union Pacific at the price
end with the dividend already pulling on
the present stock. 1t was this computa-
ton, which involved no new facts, that
was responsible 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 increase I'm the South
ern Pacific dividend was an additional IN
%centive TO this operation.
Quite as much influence was eXerted on
speculative sentiment by the departure for
Europe Of a Stock exchange member
credited with an important share in the
large transactions of the recent past in
the bull campaign as by any actual de-
~velOpments in conditions bearing on values.
This departure was read as a sign that
profits had been taken On a large scale
in the bull campaign, with the conditions
to follow OF distribution of stocks into
weaker hands, lesscned support on an emo
scale for prices and a growth OF technical
conditions Of weakness. The government
crop report was Of some continuing In
fluence towards depression Of stocks. A
distinctly bad impression was created by
the outcome of the New York City bond
issue, for which applications were less
than twice the amount offered. Inc low
price realized, hich reached only lOO Il
on the average was further cut by sales
Of the bonds when issued on the Stock
exchange as low as 1904. The slight rise
in the call money rate was escribed "a
The applications for the New YORK Guy
bonds. moderate Though they were. Ar
active demand has sprung up for FUNDS
on time and rates are advancing. Discounts
also rose in London and Paris today. Tue
general money situation, therefore, was
shaping itself quite definitely away IRON
ease. The aggressive rise in Union Pacifi'
helped the late restoJ alton Of the price
level and reduced the days net changes I,
small proportions.
Bonds were easy. Total sales, par value
s.. 500, 600. United States bonds were un
changed on call.
lumber OF seles ara leading quotations
~, aNA1lr1 NNaEn aR -fn1lnuVEs boz.