New-York tribune., 1906-05-30
STOCK MARKET OPERATIONS.

On light volume Of business stock market
values moved within narrow limits. early small
gains being followed by a somewhat reactlonary
tendency in the afternoon. Firm prices for
American securities abroad and buying Of Read
ing for foreign account served 10 nmpart a
strong tone at the opening, while throughout
the first two hours the tendency was in the di-
rection Of better figures. This movement how
ever failed 10 attract public support, ana trad
ers who bought in the forenoon sold in the al
ternooE, gains in many issues being lost in
part and IN a few cases net declines were re-
ported at the close There was nothing novel
il the way Of news affecting securities values.
Railroad earnings received, except in the case
Of Reading. were as favorable as they have been
in the recent past. crop weather reports con-
,ir7ued 70 show Improvement and advices from
general trade centres were. as has been the case
for so many months. promising of further in
dustrial expansion. Duness, which character
lied the early dealings. continued TO be the chief
feature in the afternoon, trading in the greater
number Of issues being confined TO small totals,
with Reading the only important exception
Hooking Valley on light operations enjoyed con-
siderable strength. the movement being accom-
panied by the runor. which has done service
before that the preferred stock would be retired
and the dividend increased on the common;
While Illinois Central also was a strong feature
on small transac ctions. the advance. perhaps, be
ing influenced by the decline in the price of cot
ton, which reflected favorable crop prospects,
and by the favorable progress of the company
as presented in the report of the president of
the road 70 the stockholders. At the close prices
showed unirnportant changes. as compared with
the final figures Of the preceding day, though in
the greater number Of cases quotations, under
the lead Of ST. Paul and Illinois Central. showed
improvement over the afternoons low figures.
The supply Of Reading stock available for
speculative purposes in Wall Street is extremely
light and as a consequence the interests who are
now in control Of the dealings in this issue are
able 10 move IT irrespective Of conditions affect
Ing the actual value Of the property. II is gen
orally admitted that Reading as four per cent
coal stock Is selling above its investment value
but this fact does not exert sn influence on the
security al the moment. and apparently IL is not
likely that consideration affecting the real worth
of the stock win figure at all in its market move
menrs In the immediate future People who be
heVe that the Reading company is not depending
on its coal business for its dividends should study
The earnings of the company for the month of
April. when, as II may be recalled the anthracite
coal mines were practically inactive. In that
month the Reading company showed a falling
partmert of S353597O. while after expenses
there was deficit of S2s7, ,293. compared with
surplus of S262. 800 in the corresponding period
year ago. All companies Of the Reading system
showed for the month Of April a deficit after
charges and taxes Of S517,174 compared with a
surplus Of Ss7O.75} in the same month in 1905.
These results show TO what a great extent
the Reading company depends upon its coal
business for returns TO stockholders, and as
there is no guarantee that the price of coal al
ways viii be high or that there VIII never be a
recurrence of labor troubles in the anthracite
coal region there is no good reason why in
vestors should be enthusiastic over Reading
common particularly at its present inflated price.
Wall Street hears the talk that this stock Will
advance TO 200. Perhaps it will, under the in
huence Of stock market manipulation. but based
on its merits as an investment it is not worth
more than par. Reading is not big trunk line,
its ordinary receipts from its railway business
exclusive Of coal are relatively light and in a
period of business depression the company would
suffer tremendous falling off in gross and net
revenue. There are number of stocks which.
moving under the influence of manipu-
lative control and followers of the stock mar
ket ought not to be deceived as TO the meaning
Of the strength in such issues. On the other
hand. there are many securities which are not
selling above their actual worth. while there are
some stocks which have not yet advanced to
level which fully measures their intrinsic values
Perhaps the day may come when there will be a
stock market readjustment in the course OF
which securities will move more in accordance
! with the conditions governing their values as
! investments The effect Of coal strikes on earn
! mgs is aiso reflected in the earnings of the
! Hoelsing Valley for the month OF April which
show a decrease Of u per cent in gross. and
in net decrease of 40 Per cent as a result o.
me labor disturbance in the Ohio soft coal dis
| tricts
Local oanks yesterday received through sub