The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-06
STOCKS
SHOW SOME GAINS
Bears Unprepared for the An
nouncement of Union Pacific
Subscription.
ny DROADAN wALL,

4 - hSftOADAN WALLs
| New York, September 5.-Wan Street
bears were unprepared for the an
nouncement that about 90 per cent OF
| the SSS,00o,0o0 Southern Pacific certtl-
Gates had been subscribed for, leaving
only per cent to be absorbed by the
underwriting syndicate.
To-day's opening was active with the
leading stocks, showing fractional
gains. Southern Pacific started at
| 90 5-S. an advance OF rs over night.
Later in the day the shares moved up
to 81 is. and closed with a gain of
! one point. 1t is estimated that there
is fairly large short interest open
In this stock. the success OF the sale
being a complete surprise to many pro-
fessional pessimists.
There was some irregularity in the
| early trading. London houses sold be-
tween 10000 and $4,000 shares. For
cign markets ruled quiet and activity
was restrained by the closing OF Lon
don stock exchange tomorrow.
Speculative interest centred largely in
the copper stock. The firm market for
the metal continued and sharp adj
vanccs were scored in Utah Copper,
Amalgamated and Chino: while tue
minor coppers advanced fractionally.
Steel was active again at the expense
of the shorts. The same traders who
attempted to break the price below s.
on Thursday were active bidders to
cover short contracts around IS IL.
The statement OF steel tonnage. to be
made public on "Wednesday. will no
doubt be unfavorable, but as market
factor the effect has no doubt been
discounted.
Union Pacific made n quick recovery,
crossing Isl. There is excellent rea-
son for believing that the company will
distribute an extra cash bonus to
shareholders probably within the next
six months. AS 10 per cent stock,
the price would be nearer intrinsic
value if the market quotation was
about Ia.
There were numerous recoveries in
the investment issues-Baltimore and
Ohio. Great Northern preferred. Lehigh
Valley rose point or more. while Peo-
pies Gas advanced points OH rumors
of script dividend. Liquidation in
Pullman continued a further decline
of points carrying the price to 49,
the lowest point in five years.
The favorable features in the days
news were the decline in prices for
cotton and the cereals and moderate
gain of about 100000 by the local
banks from the subtrcasury operations
which for some time past have shown
heavy losses. In view of the amount
of cash received by the banks direct it
is believed that the losses will be more
than offset by the Weekend. The
chances are about even therefore as
to whether deficit in bank reserves
can be avoided or not. An eXDan-
sion in loans of s26,0o0,000 would wipe
out the surplus. and in view of the
Southern Pacific financing this increase
might occur.
Bonds were strong The new st. Paul
Alps went to 102 "a, and United
States Steel Sinking Fund IS sold at
l01 There We're moderate gains in
other semi mortgage bonds.
The week has been bad one for the
bears. The Mexican situation has been
dismissed from stock market consid
Grafton The sale OF SSS,000,000 South
ern Pacific has been accomplished sue
cessfully and smoothly. The public are
familiar with damage by drought, and
this has been discounted by the advance
in the prices of corn wheat and cot
ton. General business continued good
with the situation in the copper trade
particularly optimistic.