The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1906-01-29
ARE BUYING STOCK
All Over the Country and Henry
CIews Thinks 4 Turning Point
in Market is Near.

II preaching a turning point Efforts t,
n force prices to a still higher level con
III TIME with undated vgor, ana stock,
IA are being bought by the public will
" increasing aVidity and with little re
: gard to intrinsic value Meanwhile The
I. buying fever is being carefully nur
/ Itured, and i not confined to New
YORK. but extends 10 all parts of the
= country; a much larger proportion OF
! Stock Exchange business today being
over the wire than ever before. These
: heavy speculative movements are
often being conducted by an entirely
new and wealthy class OF operators.
many OF whom are young an mex
! perianced men with lots of money.
plenty OF nerve, but slight experience
and immature Judgment. On the other
mana il is very significant that many
Iof The shrewdest and wsalthiest oper-
ato2s of long and tried experience
nave been steadily selling stocks.
Even investors strong boxes have
been much depleted during the last
month, for shrewd buyers have rocog-
nized the unusual conditions. turned
/ their holdings into cash and are now
! awaiting an opportunity to repurchase
at a considerably lower level. which
viii surely develop before any great
lenGta Of time While it is quite pos
siblc thai prices may be carried to
/ higher level before reaction sets In,
/ the technical position of the marker is
growing Increasingly hazardous; and.
snce stock are rapidly passing into
weak hands, the market stands eX-
posed 10 a severe break as any severe
Istran is encountered, such as re-
newed strinGency y money. or unex
pected disaster Of any kind Just now
the financial skies are cloudless, and |
The only unsetting features are the /
frequetn reactions induced by persist. |
ent inside realizing The failure of |
Union Pacific to increase its dividend /
10 & per cent. is a severe disapp0int- I
ment TO those optimistically inclined.
The road il is claimed has been earn
ing over 10 per cent and predictions
were freely made that the dividend
would be advanced to s per cent.
This stock has recently been selling
above leo which, considering forth
coming new capital issues and that it
may not pay more Than ) per cent is
a ice much beyond its real value. ST. !
Paul is a per cent stock, selling ut !
$50, with 4 lGre amount Of new
stock iu.thCOming Pennsylvania is am
other per cent issue selling at l47 :
with no prospect of better dividend
owing 10 heavy increases In capitali-
cation. Reading is a per cent stock.
selling over 100 at time when con.
of coal has materially de-
,reased Such instances of exaggera-
ion in values could easily be multi
died, bur these sufficiently demon
itrate that there is no Justification to
Dc found in the present high level OF
he stock market
Another field in which speculation
5 becoming irrational is real estate
.ast year building permits TO the =
alue of s52S,O01,jO0 were taken oft
n twenty.siX American cities. com
ared with $375.000,Oo0 in year 1904. j..
he climax to ali periods Of property y
as been marked by just such a move q
leut as We are now experiencing ia
cal estate from the Atlantic to the
'acic. II naturally follows the OK r.
astiOn OF other avenues of invest O.
lent. The activity in speculation is I
robably greater in New York than r
lsewhere for the simple reason that
he city is growing with wonderful
lpidty. and the speculative temper Al
)cuses where capital is most abund va
nj and mcst readily obtained for any fu
Iau:ible enterprise Land values in
lew York have already risen TO what
7em cNtOrtionaje prices. and it may
ecomc serious question as TO
hcther many business enterprises
ill be able to stand the test of re-
rtion when loaded with the heavy
'nts which present high prices Of
-al estate ANA the cost of buildings
impose. il should be re-
embered. also that real estate in
iev York is subject 10 one very Su
'ri0us disturbance. that is. the
ranges which result from the open ca
X ND of new Ines Of local travel The
Ipid extensions OF subways. bridge.
1nels and the vast terminals such u
those designed by the Pennsyl- Ia
mia and the New York Central !
cate new business and residential y
ntcrs. promoting a great speculative
.tivity in those quarters. but at the
me time frequently impairing the
Ilue of much property By the diver Y.
8u Of traffic The shifting for ia -
ance Of busness-DOlh Wholesale Y.
ID retail-from downtown to uptown WI
Is caused a sharp depreciation in the IN
stricis which have necessarily been
least temporarily deserted by the
d class Of tenants. The same in To-,
ences have been az work in certain :,
sidential districts In the course Of
ars these may recover a portion Of --
cir lost values. but during the inter
rental values have decreased and f
sas have been incurred-a process
i.ch may easily be continued and
use more or les general unzettle- =
II E1-tL-. tkz1 that. ua1v ot the
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