New-York tribune., 1907-06-07
STOCK MARKET OPERATIONS.

In the greater part OF the Ave hours OF ousl-
ness the movement OF values on the Stovk Eh-
change was in the direction OF higher le'el.
Transactions however, were not heaNy' anu
buying represented IN great part the operations
of the professional element, commission houses
having few orders for speculative account,
though they reported some activity the part
Of investors Covering in the early operations
was pronounced in Reading, Union Pacific'
Great Northern, Northern Pacific and Brooklyn
Rapid Transit, in which substantial maximum
gains were reported, while elsewhere in the list
the upward movement in the first four hours OF
trading represented al average gain OF about
point. Profit taking sales in the last hour were
responsible for a moderate reaction from the
best prices, but in the majority of stocks final
quotations showed gains compared with the
closing figures Of the preceding day. The up
ward movement was not based on any apparent
change in Wall Street sentiment, but the
technical position OF the market. which practi-
caly forced an advance. London was an active
seller of stocks In the local market. and abroad
the movement OF values. particularly the
Paris Bourse, not encouraging TO the ad-
vocates of higher quotations. Local money mar
ket rates were easy. while sterling exchange
was firm, with every indication OF further en-
gagements OF gold for Paris account. The Bank
Of England made change in its minimum rate
OF discount.
Stock market values down and railroad
earnings are UP. Ordinarily big receipts by the
transportation companies are accompanied by
advancing prices on the Stock Exchange. but
just at present quotations for investment
curities moving in ordinary way, and
current changes IN stock figures are not guide
10 actual conditions underlying the intrinsic
worth OF railroad and Industrial issues. In all
parts of the country transportation receipts
heavy and are running ahead of the good results
reported at this time year ago, not income as
well gross showing Improvement, despite the
increased cost Of operation due TO the advance
in the price of materials and labor Stock
market values. however. show response TO
this Improvement, and, according to the views Of
the average broker. sustained bull speculation
is only remote possibility. Wall Street is suf-
fering from recent years oYercapiralzation OF
bull enthusiasm, from its efforts TO carry prices
to an inflated level in which 1t successful,
from the tied up condition of bankers who are
financing the needs Of railroads. from the active
employment Of money in the channels of trade
which has served to keep the public out Of the
market, and from foolish fears the effects
of the policies Of the Washington administra-
ton in regard to the regulation of corporations
The public is making money in legitimate bust
ness enterprises and 1t has surplus capital
for speculation. It is returning it's profits 10
it's business. but later on its profits viii accu-
mulate 10 extent that will permit their
ployment in the stock market. And the public
will find a long list of legitimate propositions
on the Stock Exchange at cheap figures. Stocks
are cheap at present and they may go lower
and people who have funds VIII make no error
in investing them in sound railroad shares
railroad mortgage issues and good Industrial Sc
curities.
la ing in oil
yet outside the Street there is no sign of coming
calamity. II is true the crops have had a bad
beginning and in the case Of winter wheat the
chances favor bad ending; but a falling off
IN the harvests will not put the country out Of
business. There have been worse years than
the current year Is going TO be. and still the
United States is not insolvent. There is more
money in the country to-day than ever before
recorded. Profits of the great railroad and In
dustrial concerns are bigger than ever before,
wages are higher, and in most cases Offset the
increase IN the cost Of living; financial and
political conditions are sound, and a movement
is under way TO weed out the evils that exist
! in the manner OF conducting corporations Gov
ernment regulation Of the corporations will be I'm
the interest OF the stockhoder and Il fs rseIess
for few who always have had their ou,n
way at the expense Of the stockholder 70 fight
against a movement that promises IN hiring
! about reform that will serve TO protect tba
! transportation companies and the shippers alike
and the producer and the consumer. Stocks vii,
return TO the level warranted by their actual
value, and in the mean time dividends will be
! paid usual. 1t may be OF interest to the
/ stockholders OF the Gould roads to learn that
! the Missouri Pacific for the last week in Nav
! showed an increase in earnings Of $s7 600 and
| the Texas & Pacific an increase of s11no77
comparison being made with the corresponding q
period last year. Southern Railway about
which much bear talk is heard shows for
the same time gain Of s45048