New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-09-16
BONDS.
STOCK MARKET OPERATIONS.

STOCK MARKET UEEhA4AUAS'
Active operations on The part of speculative
interests who are working for higher prices
were effective in bringing about advances in a
number Of issues in Yesterdays market but
the general tendency OF values not strong
IN IN the direction OF higher quotations. out
side of a few~securities quotations reflected the
infiuance Of heavy realizing sales and bear
pressure. The market was merely strong IN
spots In the last hour OF trading the issues
which were firm features in the earlier opera
1ions suffered material reactions from their
hest prices. although they closed at net gains
as compared with the preceding days final fig
ures. The bull movement in Pennsylvania ana
the United States Steel issues continued with
considerable vigor throughout the greater part
OF the day the various shares making new high
record prices for the year, with maximum ad-
vances of Ia per cent in Pennsylvania, = per
cent in United States Steel common and ia
per cent in United States Steel preferred. Al
though these securities were heavily dealt in
advancing prices. there was too much evil
dence Of manipulation to encourage the idea
that the upward movement was based on invest
ment purchases. New-York Central was a
strong feature at a maximum advance Of 2k
per cent the movement being due in great part
to covering of shorts.
While active bull speculation. or, as IL might
better be called. manipulation. was under way in
Pennsylvania and United States Steel shares,
Liquidation was reported in Union Pacific, South
ern Pacific. Reading and various other stocks.
which are quoted many points above their low
points of the year Union Pacific is selling at A
price that measures its actual worth. and the
came may be said Of Southern Pacific and
Reading. There is no immediate prospect of an
increase in the dividend rate on Union Pacific
stock while the chanGsp Of dividend payments
On Southern Pacific enc Beading are not proInis-
Ing foE the present year at least. II is under
stood mat a large amount Of Southern Railway
ero>k which was bought at much lower price
than that now current, has been distributed for
the account Of Morgan interests under cover of
the strength in the Erie and the United states
Steel securities. Southern Railway common at
its present price. should he considered extremely
dear. inasmuch its prospects OF a dividend
are remote. The Southern Railway Company is
making excellent progress. but it is not the
policy of the management to place the common
stock on dividend basis until the property's
financial and physical condition will insure the
maintenance Of dividends after they have once
been declared. Louisville and Nashville and
some of the cheaper priced stocks exhibited de-
cIded strength throughout the day.
Advancing values in the United States Steel
Corporation shares are due 10 a speculative
movement based on the theory that the iron
and steel business viii soon begin TO show
marked Improvement in the demand for con-
sumption. and the earnings in the next twelve
months will be far in excess OF the results Of
the fiscal year ended June 30 According TO
The Iron Age" the recent reduction in the
prices of finished material has not yet stimu-
lated better demand for steel products, but
reports from the United States Steel Corpora
tion officers indicate an expectation on their
part Of a material enlargement in orders no
distant period. It is quite probable that earn
ings of the steel corporation in the current
quarter have been I'm excess Of the record Of
the preceding three months, while il is reason
able 10 suppose that results in the balance OF
the year Will be equally satisfactory. Assum-
ing that the United States Steel Corpora alton
VIII be able 10 maintain per cent dividends
on its preferred stock there is ample excuse
for the present upward movement of this issue
on the Stock Exchange. but there is no rea-
sor, as far as investment value is concerned,
for the appreciation In the price OF the common
stock. which apparently is a hopeless dividend
proposition for a long time to come. Dividend
paying Industrial shares have not enjoyed by
many points the Improvement that has been re-
corded OF the railway stocks, and in view OF
the large gains in the latter. a fair argument
is presented for bull activity in the Industrial
securities As a general proposition the rail-
road stocks are selling at prices which fully
measure their investment value. and as specu-
iaiion for higher figures has become somewhat
rampant, it may be well to exercise great
caution in further operations on the long side
OF the railway list. Perhaps enthusiastic bull
spectators may eventually find 4 sudden check
20 their transactions in the money market
While money market disturbance IS not ex-
pected by the local bankers. IL may be lust as
well 10 hear in mind that cash holdings OF the
local banks have decreased nearly $4,000 600 in
the last tao weeks. while loans have risen 10
re highest figures record; also that go far in
the current week the banks have lost over 81
100000 20 the Sub-Treasury and large amount
on direct shipments 70 the interior OF course
with reserve above legal requirements OF over
s5s.oeoStO. as reported IN last weeks bank
statement, the idea OF higher money rates may
strike a certain element IN the Street as absurd
but the fact remains nevertheless, that the ten
dency OF conditions affecting the money market
is ~ favor OF higher rates for loans. The in
creased activity the Stock Exchange in the
last few months has helped the banks. but IL
money should become dear calling OF loans
would take place and stock market liquidation
would follow. Cali money in yesterdays market
vas distinctly hrTaeT. advancing 20 . per cent,
the highest rate recorded in many months. The
EOEeTNment's report OF foreign trade for AisOust