New-York tribune., 1907-12-12
STOCK MARKET OPERATIONS.

Industrial and railway shares were under
pressure from the professional element III the
first few hours Of trading. but early losses III
the greater number of active shares were recoV-
erred before the close owing to covering or
shorts and buying by some of the more impor-
tant market Interests, who placed supporting
orders in various parts of the list at the 10"
points OF the morning In addition TO the purely
professional selling there was some hquldatloh
against maturing loans and profit taking bY
operators who bought stocks at the recent panic
level the latter transactions being fairly heavy
in Union Pacific, Reading, Brooklyn RAPID
Trans Great Northern, Northern Pacific ana
PENNSYLVANIA. which, however, with the e&cep-
ton of Brooklyn Rapid Transit, ended the day
at small fractional gains Western Union. on
which a stock dividend instead of the usual
quarterly cash dividend declared, did not
act badly on the announcement. the nrst sale
after the declaration being at a price about
equal to decline in the market value or the
new stock from the closing of the preceding day.
but in view of the depreciation that already
had taken place in the issue the absence OF
acute weakness on the passing of the cash dfl-
dend and the poor showing of earnings made oy
the company not surprising western
Union has a good record to its credit. and there
is no reason why its present poor results should
be more than temporary. Some long stock came
out In American Sugar Refining, and this. sell
ing together with short sales by the room ele-
ment, caused q sharp drop in its price. the
movement being accompanied by the talk tnat
the death of Mr.. Havemeyer would lessen the
operating efficiency of the company. Such talk
Is nonsense. The business Will be carried
along on the lines introduced by the companys
late president and holders Of the stock. which
has become one of the recognized investments
of great merit, need feel no apprehension be-
cause of the silly Wall Street gossip. Corpora
tions no longer one man affairs. and the
death of efficient c-hcer does not upset the
OF
Local banks have lost so far in the current
week upward of 100000 their operations
with the Sub-Treasury owing to transfers OF
currency to the interior, while over the counter
movements also have been against the city in
stitutions, a reflection of which Is presented in
the higher rates for call money, which yester-
day touched level Of % per cent, ruling at 20
per cent. Though interior banks IN various sec
tions show well above that called for by
law, the demand for currency from the West
and South continues moderately active. and as
consequence there is stu premium on money
at this centre with little prospect of its disap
pearance before the end of the year. Require
Inents in connection with the January interest
and dividend disbursements will be heavy. and
from now on shifting OF loans incident 70 the
preparations for these payments will tend TO
keep rates for funds at stiff range which, Of
course viii work against activity the bull
side OF stock market speculation Dividend re-
ductons and the passing of dividends by in
dustrial and mining companies are becoming
more common, and some fear is now expressed
over the outlook for the railroads In the matter
OF dividend distributions in the new year While
such fears are apt to become exaggerated and
compelled 10 do overtime work In the interest
OF professional operators who are anxious TO
bring about cheaper prices for securities. it is
not improbable that in the next twelve months
many railroads will be forced 10 reduce their
rates to a more conservative basis. especially
in the case Of the New York Central, the Penn
syivania and the Atchison-three companies
which In the last year have made disbursements
somewhat in excess Of that warranted by con-
ditions particularly in view of the physicai
expansion policies Of these roads at time Of
high money rates. There is prospect. how
ever, that the American railroads are to enter
long period Of lighter dividend returns. and re-
ductions when made viii be in the best interests
of the properties.
Net earnings are beginning TO show note
worthy contraction, and there is reason to
suppose general financial results in 1908 will be
as favorable as in the present year and in 1906.
Prices of stocks. however have discounted to
great extent smaller dividends. as far the
laton Of market value and investment worth
is concerned. and even with the possibility of
lighter interest returns ahead the greaters num-
Der of first class securities are attractive cash
purchases at the current level. Philadelphia
rumors that the Pennsylvania will make
stock issue time in the early part of 1908
doubtless are based upon the knowledge that
the company's expansion and general improve
rnent plans will call for increased capital, rather
than any information from official sources
that additional funds will be asked for in the
new year. II is not al all likely that the Penn
sylvania any other large company VII make
public announcement of increased capital needs
under present money market conditions. as such
announcement would only tend to retard i'm
provemeut in securities which must take placs
before market be found for new issues
New York Central needs money, and the
thing may be said OF most of the roads in
the country. but the railroads. like other cor