New-York tribune., 1907-12-19
Closing prices Of active bonds dealt 1n VIII
net changes. follow:
STOCK MARKET OPERATIONS.

Technical market conditions and carefully
planned bull manipulation in the Hartman
shares and Reading were responsible for hsher
prices throughout the list in yesterdays stock
market Advances OF point or more were COM
mon among the active issues. with the chlef
gains reported in American Smelling. Dlst1llers.
Great Northern, Southern Pacific, Union Paclnc
and Reading, the last named closing at d net
advance Of 3 points and with transactions total
ling on the basis of full stock, more than one
third of the business in all securities in the
share department. The movement was accom-
panied by covering operations by houses which
recently were heavy sellers of the stock II was
generally expected the Reading directors would
declare the regular dividend. such action being
taken just before the close of trading and divi-
dend consideration was not factor in the ad-
vance aggressive action by financially power
fuI operators against large bear interest under
lying the activity in the issue. Bulls on the
stock pointed out that, unlike other arthracite
coal railroads, the Reading handles its coal and
iron business under a separate company ana
therefore would not be involved in the new law
which will compel the coal railroads in 1908 10
divest themselves of their mine holdings. The
anthracite and bituminous railroads that do an
interstate business have d big problem before
them. but there is every reason to suppose they
will be able TO comply with the law in a manner
that viii entail no loss to the people who have
funds invested in the securities that are backed
by the physical value and income of the coal
lands Missouri Pacific and American Ice were
among the few stocks that ended under the final
quotation of the preceding day, while Amalga-
mated Copper, though heavy at times, managed
10 close unchanged from Tuesday. New York
Central stock did not show much improvement
following the dividend announcement.
Opinion in Wall Street is not all unanimous
in indorsing the action of the directors of the
New York Central lines in declaring the regu
lar quarterly dividend on the New York Central
stock and in announcing extra dividend distr
hnfipv m T.aEn fr3t
but stockholders Of the companies doubtless will
welcome the decision of the management in
line with conservative financiering The latter
may maintain that the subsidiary companies
have earned enough to warrant extra payments
and that New York Central owns 80 per
cent of the Lake Shore and Michigan Central
stock the regular quarterly rate on the main
companys security is justified; but i'll view Of
the CentralS results in the current year and the
large that il must raise in the near future
for purposes of extraordinary construction and
Improvement work il is held by some observers
that reduction in the New York Central divi-
dend al this time would be more Of bull argu-
ment the stock than the decision to keep the
payments the per cent basis established d
year ago New York Centrals credit. of course,
is high. but under present money market cOndi-
tions 1t WILL like all other high grade properties
have to pay dear for accommodation which will
increase interest obligations to material
tent that already are heavy as the result of the
company's expansion in capitalization in recent
years and large borrowings on short term notes
| 1t is thought probable the Pennsylvania
which also has increased its obligations to an
enormous extent in the last two years and which
will have to come into the market for more
| money in 1908 in order to complete its develop
ment plans, will make no change in its divi-
dend payments for the new year unless there
should be heavy falling off in net returns
! something not impossible If the current ten
| dency of lower gross earnings and increasing
| expenditures continues throughout the railroad
world.
In the remainder Of the year and perhaps for
brief period in the early part of 1908 rates for
money will rule at high level, but it is well to
note that conditions governing the money mar
| ket gradually are growing stronger, not only in
| this country, but in Europe well. The Bank
| of England is not expected to reduce its dis
count rate at the weekly meeting of the gov
ernors of the Institution to-day, particularly as
| 500 600 gold taken in London yesterday for
| American account The American demand for
| the metal, however. will not continue for any
extended length of time, and it is not unlikely
| that in the year money supplies in this
| country viii be large enough TO encourage ship
ments from New York to Europe, though such a
| movement will not represent anything beyond
regular exchange market transactions. Money
4 will move to the point where it can be used to
| the best purpose, but with our constantly in
| creasng trade balance there need be no fear of
! a drain on this market for foreign account. The
only development that would take gold in large
amount from here would be the adoption by
Congress of some OF the freak currency ideas
which would have the. circulating medium based
/ on deposits OF cotton with the government or on
almost anything the country might wish to
/ pledge with the Treasury Time money con-
tnues a prohibitive level, with rates for short
periods at 10 per cent and longer tes at II and
| 10 per cent.