The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-08-12
splendid RALLY
IN STOCK LIST
Activity and Strength in Last
Fifteen Minutes of
Session. =
STANDARD OIL BUYING
Bankers Support Union Pacific Sale
Plan-Local Bonds Strong.
Crop Reports.
STANDARD OIL BUYING
BY L. A. FLEMING.

half hour yesterday when the lightning
2truck.
e 1t hit everything in the list. and jumps
of half a point were quickly accom-
plished. with big lots reported every sec
ond-2,500 to 5000 shares.
In fifteen minutes the entire complexion
of the market was changed.
Where there had been slusgshness
there was life; where there was weak
ness there was strength.
In that last quarter of an hour as much
trading went on record as the entire
sales of the session up to 2:i5 in the aft
ernoon.
1t was 4 surprise party to the traders
on change and in the customers rooms.
Later developments surprised the large
following that had left the street for the
day, and II turned the bears "nutty" TO
get under cover. All in fifteen minutes.
1t was one of the most unexpected and
sensational movements for months-a
stroke from a clear sky-and the list was
slumbering beautifully at the time.
1t had all the appearance of a move
ment to help the Union Pacific interests
in the sale of Southern Pacific holdings.
The Sale Price.
The long expected announcement by
the Union Pacific as TO the plans for
the sale of its remaining holdings of
Southern Pacific shares TO its stockhold
ers was made Monday morning.
The price is 81 for the stock; this in
Guiding 3 per cent dividend due.
Cash may be paid for the stock or
. per cent in cash and the balance be-
fore September ., 1914, with interest at
6 per cent on deferred payments.
The right to subscription terminates
automatically September .. 1t is under
stood that big bankers are decidedly in
terested in the success Of the sale, and
that a syndicate has undertaken the
underwriting, thus assuring the sale of
the stock. Kuhn. Loeb e Co, and the
National City Bank are the principal
members of the syndicate.
London has sent in large subscriptions
for the stock and some of the street
experts predict a successful conclusion
TO the exasperatingly slow, operation OF
divorcing the Union Pacific from the
Southern Pacific.
Legitimate news Of the day was>en-
tirely disregarded in the last few min
utes.
Sluggish Early.
Early in the session there had been
sluggishness and indifference to trad
ing u point losses on drought stories
in the corn belt. then a drop of about
a point in corn prices gave the street
a little more courage, and stocks came
back TO within hailing distance of the
close on Saturday, and finally moved,
on small transactions, into higher
range, averaging about y point ad-
vance, with Southern Pacific the eX-
reption, this stock showing a loss of
nearly a point.
Steel at that time was q higher,
around 62N; Union Pacific at 152E;
Reading :. higher, at 1879: Canadian
Pacific was 217, and everything ship
shape and holding fairly well.
Mexican News Ignored.
The street had evidently decided for
Itself that the Mexican situation was
by no means as tender as it looked and
that If it was serious it might be han
died with diplomatic efforts.
Stumbling blocks in the way of leg
Islation may have had some effect
At PAS the ticker started, and dur
ing the rest of the session it found
no rest. 1t was a case of a complete
surprise. Commission houses called up
brokers for an explanation, and re-
ceived none. save that there were large
orders.
The unofficial record up to o'clock
was 127,900 shares of stock sold; for
the last hour. Isl, 900 shares. and most
Of this in the last few minutes.
Union Pacific rose to close at l53 ga.
IL net gain: Steel to 81. 21-4 advance;
Reading to 1601-S, an advance of rs:
st. Paul to 100 "a, IA advance: Canadian
Pacific to PIG, as compared with 2lI, the
high at PAS, and 215 S-i, Saturdays clos
ing. Southern Pacific itself recovered all
its loss.
Everything on the list shared in the
advance but not to such material extent
as the leaders. Copper came back from
II IA to 70 3-4, and Smelter from 60 IL to
60 L.
Such a quick, unexpected movement has
not been seen on Wall Street for many
minutes.
Strong interests are in control Of the
situation: they have stood silent while
the enforced liquidation exhausted Itself
10 a time when the bears could no longer
force the stock out and had to stop their
efforts Then they took the market. and
have since held it in hand.
The advance gave every indication ct
abundance of backing. suggesting Stand
ard Oil buying on approval of the South
ern Pacific price.
Local Securities.
There was neither activity nor special
interest in the local stock market.
Brokers having buying orders found 1t
difficult TO NIL them. save at nlSner
prices, and with selling orders in some
securities concessions were demanded.
The only feature TO the list was the
strength in Traction IS. where the activity
centered-such as there was-Si.500 in all.
The price advanced to 107 IL, but eased
TO 1Ol Il. as compared with the JOG "a
of last week. Railway Is were wanted
at 81 Potomac Consolidated IS were
freely offered at par, with sale at that
price and lower figures hid on call.
Anacostia and Potomac IS sold at IS,
the low point of the year.
Stock transactions were limited to 10
share lots, Gas at 81 SIS. also a much
better price than on Saturday: Traction
at lis L., and Lanston at 50.
1t was not an active session by any
means, and yet there seemed to be a
better undertone for favorite issues.
Currency School.
As currency school, the recert as
sembling Of the bankers of the South
and West, ostensibly for the purpose
of acquiring divided interests in the gem
erous bounty of Secretary McA doc. was
not distinct success But if the Secre-
tary really wants information he should |
extend an Irvra''nn TO the New York
City Clearing J."'.," Association to send
delegates here to Art low millions, and |
then listen.