New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-10
STOCK MARKET OPERATIONS.

SIGCk 11AhhEI OEkhAIlUNS.
Indications that the Washington administra-
ton had no intention of abandoning its cam
paign against monopoHes and corporations that
do not obey the law were i'm great part rCspon-
sibe for the weakness in the forenoon market.
Traders sold stocks on the theory that long
accounts would be quidated and that the bull
campaign would be abandoned. While the CON
ditions governing speculation are not favorable
for bull activity. it is not likely that the admin
istration's plans regarding the corporations will
lead To any important selling of securities. for
the good reason that investors know nothing is
being planned which VIII upset the real value
of their holdings. Indeed. il is recognized in
most quarters that the intention of the Presi-
dent and his advisers is % conserve the inter
ests of the owners Of American investment So
curities. and it is therefore absurd at this late
date to try to create scare over the govern
ment's. attitude toward railroad and industrial
companies. Judge Hollis remarks the In
terbornual- Metropolitan merger also worried
the speculative element, while the reduction in
copper prices had a mixed effect upon sentiment.
Traders were uncertain whether to take the an
nouncement a bull or bear factor. The con-
cesson granted the consumers OF the metal is
a big one. and 1t ought to bring in a large vol
ume of buying orders for the metal. particularly
as there has been practically no movement in
the market in recent weeks, owing to the dead
lock between consumers and producers of cop
per. Moreover. the lower quotations viii serve
to maintain prosperity in the copper trade,
which the recently prevailing high level has
threatened, while they may encourage much
needed readjustment OF prices to a cheaper basis
i'm other lines OF trade. After giving brief eN-
hibition of strength in the noon hour. the gen
eral list again moved under the influence of bear
pressure, and in the last half-hour quotations
were carried l to - points lower on an active
selling movement, which left final figures at
about the poorest of the day. with the heaviest
losses in Amalgamated Copper. American Sinelt-
ers Brooklyn Rapid Transit, Great Northern
Northern Pacific, Reading and the Hartman
shares. Union Pacific lost 2E for the day on
dealings of more than $4,000 shares. some
traders sold this issue the rumor that the
Interstate Commerce Commission would report
adversely upon the ownership Of the securities
of other rDads by the Union Pacific, but on the
decline there good buying on the theory
that if the government should compel the COM
pany to divest itself of it's holdings OF various
properties there would be big distribution or
assets to the stockholders.
Wall Street is on the anxious seat regarding
the outcome of the Union Pacific convertible
bond issue. subscriptions for which must be filed
to-day. If the stockholders take advantage or
the privilege accorded them, the general mar
ket doubtless will be favorably affected. but
from current indications present owners OF
Union Pacific shares will not take a large in
terest in the bonds. and If this proves TO be so
the underwriting syndicate will be tied up for
an indefinite period inasnluch as the public ex-
hibits no desire to buy securities. no matter how
valuable they may be. The new Union Pacific
convertible debentures will net the purchaser
about l. rs per cent, and they convertible
when the stock sells at 1871, about II points
above the current level Buyers of the bonds
have call on Union Pacific at any time in
the next ten years. and measured by the actual
worth of the stock and the probability of its
selling for more than 100 when conditions be-
come favorable for sustained advance on tho
Stock Exchange, 1t may be classed fair in
vestment proposition. Union Pacific is assured
Of the money 1t requires as banking interests
have agreed to finance the S75,O00.O00 bond is
1nCly 10 n for ha IN do
writers unless they can induce foreign investors
to take the securities off their hands. Eventual
ly the bonds will find their way into investors
boxes. In normal market the bankers profit
on the operation would be large and it would
come quickly. Under present conditions big
profits not promising, while doubtless 1t
will be a long time before they develop %
Though sterling exchange was easier yester-
day as a result of a firmer tendency in time
money and freer offering Of bills predictions
of further gold exports made. So far i'll
the current week the banks have gained SS13.-
600 but unless there is more activity on the part
of holders OF the government As in presenting
these issues for redemption, the movement of
money between the banks and the Sub-Treas-
ury will be in favor of the latter on the weeks
operations, as to-day the banks must return to
the Treasury federal deposits TO the amount
OF about S12.Oo0,OO0. In all, S30OO0OO0 has
been called for. which compares with about
100000 government bonds subject TO re-
demption. Tho Withdrawals from depositary
banks have TO be made at the timf stated In the
Secretary of the Treasury's circular. while the
redemptions may extend indefinite
period according 10 the disposition Of the hold
ers A rush OF holders of the bonds to secure
their money would appear natural. interest
the issues has ceased. Nevertheless. the re-
Spouse to the redemption order has been light.
It therefore, is reasonable 10 look for firm money
rates for weeks to come. especially as gold
ports have weakened tn reserves of the banks,
while preparations Will be made to finance
fba her
the usual foolish talk that the West will be able
to handle the monetary requirements Of the
crops without assistance from New York is
heard but there is more in such an
argument this year than there has been in past
seasons. The West has large amounts Of money
on deposit In New York, and Just as soon az