Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-04
THE OMAHA SUNDAY BEE. JUNE lei.
NEW YORK STOCKS AND BONDS
Market Reaches Buoyant Stage, Show
ing Good Advance Over Wee kAgo.
NEW HIGH PRICES FOR THE YEAR
Placing of the Hill LOSp on Northern
Pacific and Great Northern ia
Easy, Indicating PubIic Feels
Confident for Future.


NEW YORK, June S-(specIal Telegram.)
The week has brought a material enlarge
ment Of Stock exchange business, but from
which is responsible for the most Of IT, the
period has not been a very profitable one
Professional wall street badly misread the
situation whichiit found on coming down
to business after the Memorial day holiday.
Preparations had been made for an enthu-
sastic response to the tobacco decision.
similar to that which had greeted the
Standard Oil verdict.
The essential point which over-sanguine
spectators had overlooked, was, of course,
that the Wall street position itself was far
less strong than II had been the week be-
fore. The Standard OIL decision wac handed
down at time when the market had care
fully prepared for a shock. There was a
short interest Of respectable dimensions
outstanding and stocks were for the most
part concentrated in powerful hands.
At the beginning Of the current week, on
the other hand, these technical conditions
had become considerably weakened, both
by the retirement very extensively of con-
tracts for the fall and by the entrance into
the market of large number OF petty
spectators for the rise. II is the consensus
OF opinion now among close observers of
the trading that Wednesdays price move,
ment was nothing more or less than well
laid, well executed plan to get rid OF an
undesirable following, and at the same
time to replace to advantage stocks which
had been sold the previous week.
Just n Passing Check.
This maneuver was helped by two col
lateral incidents, either of which would
have been calculated to exercise an un-
settling effect One was the declaration OF
an open market In the steel trade, which
was what was meant by the announce
ment that the other steel manufacturers
would meet the cuts in prices initiated by
the Republic Iron company. The other was
the extraordinary collapse Of American
Tobacco. shares in the curb dealings. That
these occurrences temporarily should give
sentiment shock was Ineligible enough
more soberly viewed as they were later IN
the week, they could not be presumed to
exert more than a passing cheek, .
The stock market finally fell into line
with the improved sentiment, ana reached
a buoyant stage with prices showing an
pared with a week ago, and with many
new high prices for the year. Some favor
able Developments of a direct bearing
stimulated the rising trend. Some or
these were the progress made by Pennsyl-
vania, New York Central and other lead
ing systems in readtusting their ration OF
operating expenses to gross revenue on
more economical basis. thereby bringing
about net gains for April, condition in
marked contrast to that OF previous
The record mortgage Of ssOooOO,OOO filed
by the Great Northern was another mat
ter that exercised potent influence, as
IL was regarded as an expression OF con-
fidence In the future by such an expert
enced railway magnate as James J. Hill.
The ease with which $4,000 600 Of this new
mortgage was placed reflected a revived
investment demand for bonds following
closely upon over-subscriptions to the Ore
Washington Navigation railway loan
here, and abroad, and the marketing Of
$50 10000 Missouri, Kansas & Texas bonds
In Paris
Summary of Events.
1t is now generally conceded that ~,
Panama canal loan will be a complete sue
cess and such an outcome would, help.
sentiment. London discounts are down
to 2 per cent and money is extremely easy
at Paris, thus the situation abroad is qa-te
favorable for the ahaOrDtiOn of Am6SD;an
bonds.
The domestic situation is also favorable.
The aftermath of the reduction in prices
of Steel was quite different from that of
1909, Then there was great rush for
business on the present steel mills and the
result was considerable Generalization,
from which the trade did not recover for
several months,
Now. nothing like this is apparent ard
the orderly manner in which price reduc-
lions are being conducted has inspired suf-
ficient confidence to bring in numerous
Inquiries from consumers, and 1t is esti-
mated the various mills are working on
the basis OF an increase IN output OF to
10 per cent over the recent low level.
Although such general business as is now
fleets continuance OF marked conservst-
ism, merchants and manufacturers are
now taking more hopeful view as to the
The crop outlook a whole can still be
called favorable.
Stocks continued their Upward way at
the opening of the stock market this morn
ing and after many new high levels were
reached, due to pool operations and con-
siderable commission house buying for the
long account, they sold off rapidly during
the final hours under heavy realizing sales
The final quotations. however were frac-
tionally above those of last night.
On the early upward movement, St
Paul showed considerable vigor, advancing
to -1& "a new high price for the year. Union
Pacific, Atchison and nearly all the other
railroad issues scored substantial gains.
United States Steel advanced more than
point and many specialties rose TO 2
points. The scarcity OF supply was a factor
in sending prices higher. On the late re-
cession Northern Pacific and Great North
ern were supplied more freely and st. Paul
receded a point from it's high level; but of
all the active issues American Telephone
and Canadian Pacific alone displayed
heaviness.
American Tobacco. on the curb continued
weak and declined almost to the low point
of the week, after a moderate advance.
The tobacco bonds were active in the
bond department. II was rumored that
some of them would be retired. The
activity in bonds continued in today's
trading The weekly statement of the as
ISOLATED banks of the city shows a sub
stantial increase In loans for the first
time in a number OF weeks.
Number OF sales and leading quotations
on stocks were as follows:
sales. HiEh Low Close