The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-09-28
MARKET IS
DEPRESSED
LOCALLY
Falling Off in Prices of
Local Traction Secu-
rites.

curities market for the past week. This
aspect has predominated for nearly a
year. with only a slight squirt interven-
ing. Trading in the various stocks and
bonds during the week were very light,
only a few sales being recorded, In
vestors still seem 20 be satisfied with
what stocks they have, while owners
who do not need to sell will not dispose
of their holdings at the prevailing
prices.
A striking feature in the stock list is
the falling off in price of the traction
issues. They are out of the question in
the minds of the public. There have
been few sales of any note in these
issues in the past month, due to the
%precarious condition of neighboring
traction companies. Public Service GER
tifcates found buyers around 60, and
the notes at SO, which has been holding
wonderfully strong in the face of a
decline IN all of the issues. CONSOLE
dated Traction bonds are at par, while
Newark Passenger bonds sold for 103
to 104.
During the past month the traction
companies in New York have suffered
by the legal attacks on them, and only
this week q receiver was declared for
the leading traction company of the
metropolis. The probability is that ad-
ditional trouble win come to the trac-
ton companies in New York, but in
just what shape can hardly be fore
casted at present.
There are strong i~ntimations given
out from influential sources, however,
that there will be some sensational de-
velopments before the matter is finally
settled. One hint is that an effort may
be made to compel the directors of the
Metropolitan to repay into its treasury
the unearned dividends which have in
recent years been distributed among
the stockholders.
With these conditions close to New
ark the people of this city and State
become suspicious as to conditions in
local traction companies, thus causing
drops in prices. From what cam be
learned, local and State traction COM
panies are perfectly healthy as far as
their finances and physical conditions
are concerned, and the consensus OF
opinion among conservative investors
and brokers is that prices are at a
level in the traction issues where they
can be bought to good advantage, with
promising profits within a short period.
The only transactions on a favorable
scale locally have been in local munici-
pal bonds. The success of the 4s per
cent. bonds issued by New York city
has helped considerably to strengthen
the tone of local municipal bonds. Peo-
pie have arrived at the conclusion that
these issues are safe, although they
may yield a few points less in interest.
"a number of people have come to
me- said a local broker, "and aid
that they would like to invest their
money in municipal bonds. This has
been noticeable among manufacturers
who have taken money out of business
which would bring far more income
than from the bonds. Their action Is
due to conservatism. If a severe con-
traction in business should occur, Dor
rowers would not be very safe while
the bonds would be as good as gov
m securities"
Incidents of the week were that the
gas and electric issues suffered severe
setbacks. Essex n Hudson stocks
tumbled 4 points On only a small sale,
while Hudson County Gas stock fell 2
points. Some United Electric bonds
were disposed between IS and GA. This
is the lowest price this bond has been
selling at for a very long period, and
the tendency still remains downward.
Other stocks and bonds of similar ma
ture have been depressing to the list.
The bank n insurance stocks re-
main stagnant in business with the ten
dency of prices a little off. OF the mu-
nicipal bonds the East Orange 1907 is
sue and the Newark 4 per cent. 1914
issue were sold in small blocks. a point
to one and a half points above par.
Inaetion in local securities has beer
laid to over-capitalization by railroad
and industrial corporations which II
the first seven months Of this yea is
sued more han $3.50, 900, 900 in bonds
stocks and short term notes, nettint
the investors far more benefit h a any
of the listed issues. This cause {
strain in the money market, which ha;
not yet been overcome.
Another unfaVorable affair is thu
liquidation which has been prevailing
in Wall Street on the part Of small In
vestors as well as professionals. Dur
ing the past week Wall Street encoun
tered a decline, due only to liquidation
on the part of small investors wh'
have fears about the coming speeches
of President Roosevelt.
The better tendency in the loca
money market of the last two week
met with a check this week, although
conditions did not become, harder. TIL
I total loans of national banks and trus
companies decreased a little, but tn
decrease in the deposits was muel
greater, amounting to about one-hal
a million dollars. This was the onl.
hardening tendency noticeable.
Bankers seem to be satisfied becaus'
of the decrease of applications b!
manufacturers for loans for fall ne
quirements. This is said to mean tina
a reaction in business is going on. tn
best thing to relieve h money mar
ket. Manufacturers and merchant
have become very conservative in tn
placing Of future orders, and this vii
enable them TO get along with les
money than usually at this time of tn
I year. Already there have been som
notable co~ntractions in business, a
was illustrated by curtailment of i'm
provements by some of h leading
railroads in this country.
Following is the range of prices an
securities of the local market, as furnishei
by ]. s. Rippel. 76O Broad street:
COUNTY AND CITY.