The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-10
STOCK MARKET PUT
TO SEVERE TEST
Street Stands Strain of Adverse
Announcements Surprisingly
Well.
ny nROADAN wALL.


! day, and. all things considered stood
! the strain well. Prices were strong
at thc opening. with buying for London
account of some 5000 shares This
/ rise was checked by heavy realizing
sales with pressure in PENNSYLVANIA
shares.
The announcement that St Paul had
soid S3o.Ooooo of bonds was not alto
Eether surprise, but the news was
not reiished when it was realized that
the road was PAYING about > pcr cent
for the money. The bonds carry ~
Per cent interest and will be offered to
the public at par, these bonds are
legal for savings banks. The issue
had the effect OF bringing renewed
wca kness in high grade bonds and
suggests = further lowering OF prices
OF other saving bank Investments
Although sentiment had been in ;,
measure prepared for new pennsyIva-
mia financing, the announcement from
Ihiiadelphia Of the Increase in the
capital stock Of $1,000 600 had not
been discounted marletwise and the
stock dr"rpcd quickly from 11Tk To
=. the lowest point at which the
shares have sold since 1905 Iinmedi-
atcly after the announcement active
trading commenced on the rights on
the curb stockholders have the privi-
lete of subscribing to 10 per cent of
their holdings at par. Initial deal
ings in the rights occurred at "a and
=. rms basis proved to be incor-
rect. and the figures were rapidly adj
vahced IA Operations were trans
ferred from the curb to the stock EN-
change. much to the disgust of tho
outside traders. Arbitrage transac-
tons. that is. sales OF the old stock
against the rights. were in large
volume.
TO add to the discontinue. word was
received from the Attorney General at
Washington that he had refused to
lndorse the latest plan of the Union
racine for disposinR of its SIPS. 0OO. 600
southern Pacific holdings. This brought
n sharp drop in the price of Union Pa
cihc' although in the final dealing this
was reduced TO about a point
When the fun Importance OF these
three announcements is studied. il is
iair TO conclude that the speculative
situation reflects fundamental strength
Inc traction stocks were active and
firm. largely for tho purpose. no doubt.
Tor feeling the market for the new.
issue OF subway bonds that shortly
VIII be announced. Rumors are cur
rent that Brooklyn Rapid Transit will
nave the dividend rate increased TO G
per cent and lnterboro preferred will
Ind an active market at advancing
prices.
Surprise was felt over the strength
ana activity displayed by Erie com
mon. iisreearding the effects OF dam
steadily rising on purchases that are
SAID 10 be for the account OF intere.is
associated with the Rock Island svs
tenn.
Woolworth advanced To 9G IA on tho
declaration OF quarterly dividend at
II rate of g per cent per annu,n The
stock closed al ~. 1t can hardly he
expected that the Increased rate will
OFFSET the enormous capitalization of
Goou VIII that stands on the company's
looks NJ Soo'ope,ooo and represents the
only value behind the common stock
MeN!car Petroleum lost a point ana
quarter. closing at CT 81 after Sell
Ing at 6S IL. Little faith can be
placed in the stories OF Increased
earnings since the FIRST Of tho wear.
In October last, when tho shares were
selling at about 90, the street vas
fun of Information furnished by IN
Siders about the enlarged sales =" an.
creasing deliveries etc.
Financial institutions continue in
many cases TO discriminate against
thcs" shares as collateral In loans
The Copper tocks showed conpar-
atlVc trength. y study OF the exports
Tor the past month indicate that the
producers showing could havs been
given more favorable eUcct h.-r
than has been thought advI,aa,c m.
SITUATION Of the metal market is con-
sidered well in hand and with nuv Inn.
provements in the situation abroad
hlSher prices VIII obtain. Trading In !
steel common was in diminished vol
ume. and the price moved with the
rest of the list After touching 81
Is, the close was steady at 3d. south
ern Pacific was neglected. and did not !
reflect the changing news of the dav /
Ihe stock closed firm with n slight /
gam. Heading was actively traded III /
and scored fractional loss. The /
street is expecting some announcement .
from this company during the comias
week
New York Central declined in SYM
pathy with weakness in rcnnsvI-
wanna. 1t Is known that the Kew York /
Central system is badly in need or .
funds. and can hardly he considered
IN as favorable position rs PcnnsyI- ,
vania or ST. Paul. which means that
they will have to pay dearly tor the |
accommodations they may procure.
AdVices from the European money |
markets were distinctly cheerful The |
Imperial Bank OF Germany made n |
good showing continuing the improve !
ment. which began with the end OF |
easier throughout Europe, and ak the |
London settlement al per cent was |
charged TO carry over American stocks !
compared with 6 per cent two weeks |
ago.
Manipulation for advancing prices IS |
expected to continue. There is IE;:ch /
financing 10 he done. and this can |
hest be accomplished on firm stock |