New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-11
STOCK MARKET OPERATIONS.

STOCK MARKET OPERATIONS.
Transactions in yesterdays stock market We're
light in volume and made up in great part of the
operations of the professional element commits
sion houses having few orders either side Of
the account Early price movements exhibited
considerable strength but in the subsequent
trading the general tendency was in the direc-
ton Of lower quotations. the floor contingent
selling on the government crop report showing
conditions Of winter wheat and rye OF May
!, while there was some further selling a
suit of liquidation in Union Pacific by holders
who did not like the Hartman financing plan
and pressure against Reading on the rumor that
the Reading company soon would bring out an
issue of bonds. Union Pacific declined points.
but recovered little OF the loss before the close.
and Reading suffered maximum loss OF
points. closing at net decline of 3. These two
issues supplied a large proportion Of the days
total dealings. Government figures on the con-
dtion of winter wheat not as bad recent
reports from the grain spectators indicated.
but they show. however big falling off from
the figures of April l, when the percentage was
S9.9, and from May l. 1906. when il 921
The total winter wheat harvest last year
amounted to 492, SSS000 bushels. which com
pares with estimated yield this year of 405,-
100000 bushels, the lowest since 1904 1t Is
tended IN grain circles that the condition Of win
ter wheat is much worse than ii May l
and that the crop in the current year will he
the smallest record. Winter wheat is an
important factor in the years harvests but It Is
not only crop. and II should be borne In
mind that the agricultural community is enter
ing the harvest season Of 1907 with large sup
plies hand from year ago Money a
trihe frmer yesterday and sterling exchange
was strong. The banks have lost only small
amount of money in the week according to the
estimates made yesterday. and unless there has
been a big expansion in loans to-day's Clearing
House statement ought TO make a favorable ex-
hibit
The proposed financing by the Hartman lines
would have caused little adverse comment In
Wall Street year ago, and the chances are
the increase in the company's capitalization
will not lessen the regard for the common stock
expressed by owners of that security. Moreover.
II is not likely the issue will be considered
for any length Of time a bear argument on the
general stock market. The Union Pacific and
the Southern Pacific company need the money
represented by the issue of convertible bonds
for the first named and the preferred stock for
the Southern Pacific. and with the amounts
asked for the two properties win be in a stronger
position to perfect the great Hartman system,
which despite any criticism that may be made
on the action OF Mr.. Hartman in the matter OF
dividends, has, under the Hartman manage
ment, furnished Of the most remarkable
instances OF the advance of bankrupt corpora
ton to position where its securities are COW
eted by investors and spectators. II is only
few years ago that the Union Pacific in
receivers hands while to-day its securities have
a reputation at home and abroad substantial
investment issues. And the progress of the COM
pany has been accomplished without any great
amount of financing, such has marked
the of the Atchison. the New York Cen
trail and the Pennsylvania in the last few years.
Placing the stock on 10 per cent basis the
one break in the record of conservatism that
has marked the management Of the company in
recent years, and the chances are return OF
the stock a per cent basis would carry its
price a better level than that ruling.
This may appear paradoxical but it is the view
quite commonly held in financial circles.
In the greater number of Wall Street houses
customers attention is being called to the OPP
portunties presented in the bond market. 1t is
maintained that conservative investors have the
reasonable assurance that in buying first class
mortgage issues at current prices they will be
getting their securities at bottom figures, mas
much as there already has been big decline in
market values that has not been accompanied
by a corresponding depreciation in intrinsic
worth. Moreover, It is pointed out and quite
properly, there has been no change in conditions
affecting the real value of securities and no in
dication that there will develop anything upon
which investors would be justified in parting
with their holdings. Great industrial activity
has forced heavy pressure upon the money
market. and the tendency has been to keep funds
on hand TO lend at high interest charges at the
expense Of the bond market, the latter having
declined TO the lowest level since 1893 and in !
view OF the fact that the country's industrial
activities Will continue TO live and corporations
will continue 10 pay their interest on their bonds
10 say nothing of dividends their junior Sc
curities people who have money seeking sound
and conservative investments viii find in the
bond market safe channel for the placement OF
their funds State bonds. municipal bonds
county bonds. railroad bonds and all forms OF T,
mortgage issues have been abnormay de-
pressed. and at present prices they are recon-
mended by the best banking houses IN the
country.