Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1912-01-26
FINANCIAL And COMMERCIAL,
A STRONGER TONE.
An Improvement in Prices for No APP
parent Reason.


New York, Jan. 25.-With no appar-
ent reason for a change in the course
of the stock market today, the tone
became distinctly stronger. In the
early part of the day trading was &C
tive and prices rose brisdy until many
stocks were established on Il level
point or more above yesterdays close.
The latter half of the session was duh.
The market idly awaited word as to
the action of the st. Paul directors in
regard to the dividend rate, which
came just after the close The i'm
provement in prices was well main
tanned. In the last few minutes there
was a sudden outburst of activity,
chiefly in st. Paul and Reading, both
of which sold off abruptly.
Trading was heaviest in the leading
railroad stocks, although there was a
better inquiry for some of the indus
trials. Union Pacific showed more
strength than for several days, and the
action Of that stock, as well as several
other prominent issues, suggested that
short covering was largely responsible
for the upward course of prices.
The action of st. Paul, which rose a.
point early in the day, exerted a
strengthening influence upon the rail-
road list. Although the street was
well satisfied that the St. Paul direc-
tors would reduce the dividend rate
from Z to 5 per cent, there remained
an element of uncertainty until word
was received from the board room that
the expected reduction had been order
ed. While the earnings Of the road
have fallen considerably short of the
amount needed to continue the Z per
cent. rate, the drain upon the compa-
ny's resources has been largely on ac-
count of the extension of the system to
the Pacific, so that today's change in
rate does not necessarily imply that
similar action may be expected by
other western roads.
Indications that earnings Of the
western lines have been comparatively
poor during recent weeks were borne
out by the December statement of
Atchison, the first Of the large western
roads to report for last month. Gross
earnings fell off 100000 although a
reduction in operating expenses limit
ed the decline in net to half that
amount. The outlook for January is
not bright Railroad officials said that
weather conditions in the first three
weeks Of this month were more unfa-
vorable than was generally realized.
Foreign exchange rates rose sharply
today. Demand sterling touched 4.S7
IL, the highest point since May of
1910, when gold was being shipped to
London in consequence of the disturb
ance over the death Of King Edward
London today was offering per cent
better than local rates for money. Ar
rangements for the new German loans
which will be offered publicly on Mon
day. also were a factor in the foreign
exchange market.
American Tobacco common was TAX
en- over today from the curb" to the
stock exchange. Opening at $50, I'M
changed from the last sale in the out
side market, it rose to 261 IL. The fer
tilizers were strong, with buying based
upon the increased business and the
decline in the price Of cotton seed
Prices of bonds were firm, witt
higher quotations for most Of the
popular issues. Burlington Joint Yours
and Interborough Metropolitan foU
and a halls were heavy, Total sales
par value, s5.7T2.000.
United States twes coupons declined
IL and the tours IA on call.