The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-08
THE SUN, MONDAY. JUNE s. 1908.

mering the Pennsylvania shares already
listed down to a figure where the stock
holders would not find 1t profitable to ex-
ercse their rights Of subscription; and
It was said that the same old twenty
five-point drop" was being engineered
in Amalgamated. But Wall Street was
according to it's wont, altogether too
ready in its suspicious The impress
sion was very strong IN the right quar-
tiers at the end Of the week that the decline
in Amalgamated was over, for the present
anyway. and that many things would be
explained regarding Pennsylvania before
long. The labor situation was disappoint-
ing in May, simply because expectations
formed at the opening OF the month that
there would be less trouble in the spring
season this year than usual were cast
down. However, now that the month
is over, labor matters are very clearly in
better shape than they we're at its beginning
There are no longer any great strike
centres" in the country 1t is evident
that there will be no strike OF anthracite
coal miners. The settlement Of the build
ing trades strike here is delayed little,
but it will come.
The time is prominently one for the
owners Of stocks to keep their heads cool.
1t is also, beyond any question. time OF
market opportunities. For not little time
past the large investors who last summer
sold stock to Mr. Gates and his friends
have been buying back this stock as it has
been flung upon the market. There is not
the slightest reason why small investors
should not do the same. They should buy
moderately and cautiously, with the idea.
and perhaps with the hope. that they may
wholly replace their holdings at an average
price a little lower than that which at
present rules. But the fact is that the old
established railway shares in the security
market are now worth the money they are
selling for and that the fall in their price
has taken place coincdently with the great
est enlargement of gross and net earnings
in their history. Railway dividends are
far more likely to be increased in the near
future than they are to be diminished.
The opinion was expressed in this column
year ago, and has since become general,
that the common shares Of most OF our
railroad companies ought not to sell 30 as
to yield their holders less than per cent.
return. The great majority Of the dividend
paying railroad stocks are now pretty close
to this basis. But there is one qualification
Of this standard Of judging stocks that
must be remembered. tits that which pro-
ceeds from the varyi ng value Of money.
When money can he loaned on time for
from S to per cent. and on call for from
to 10 per cent, railway stocks yielding
only AZ per cent. look too high But when
money becomes drug in Wall Street.
first class railroad stock paying between
"a and per cent. becomes attractive.
1t is the belief Of the more thoughtful
students Of economical conditions that
certain amount Of commercial liquidation
will surely follow the financial liquidation
that has occurred in our security market.
When this secondary event happens it will
inevitably bring money into Wall Street;
that is to say. money will become easier
1t is for this reason, and, further, because
of the increased production of gold in the
world and Of the increase in our circulating
medium from a variety OF causes. that the
price Of good railway stocks will not de-
cline, but will, on the contrary, show a
tendency to advance
DANIRI, F. KELLOGG