The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-26
PaDicky Conditions in New
York Make Local Invest
0rS Cautious.
SITUATION REAL STRONG
Expectation Is That Low Prices
Now Prevalent in the Secur.
tiles Markets Will Tempt
Many to Purchases Dur
ing the Coming Week.

ing the Coming Week.
Very little trading was done in the
local securities market the first three
days of this week. Theonly local stocks
offered in the market was those sent
here from New York because of the
financial troubles there, and by few
Newark and Essex County people who
met with severe losses due to the heavy
shrinkage in the market values of
stocks and even banks.
No investors here made any pur-
chase of securities Tuesday, for the
suspension of payments at noon of that
day by the big Knickerbocker Trust
Company of New York, the second
largest trust bank in that CITY,, with
deposits exceeding S60,000,O0O, dazed in
vestors and brokers SO that they did
not know what to do.
The run Wednesday on the strong Trust
Company of America with deposits aggre-
eating $70.0000o0, when $l2'oOO0O0 was paid
out to depositors, caused more anxiety In
Newark. and this was added to by the
news In the afternoon that a receiver
, would be appointed for the great west
inghouse manufacturing plants In Pitts
burg, Pa and that one of the largest
trust companies in that city had closed Its
doors The cause given for the trouble In
these two concerns was Inability to get
ready money for immediate use in busi-
ness. THE EVENING STAR printed in
terviews with presidents of local nationa
- banks and trust companies, showing thai
/ these institutions are IN splendid condition
and are not affected by the New York anc
Pittsburg troubles. as their loans are made
to local people on good local collateral Sc
| curity.
Thursday the situation in New York was
improved by Secretary of the United States
Treasury Cortelyou loaning s25,000000 to
the national banks of that city, j. p.
Morgan and a syndicate loaning $250OO,0OO
to the brokers of the New York Stock EX-
change, causing the rate for short loans
to decrease from 20 to 10 at the closing
hour of business. j. D. Rockefeller loaned
$40, 900 to the Trust Company of
America, which company paid out $9.OOO.OOO
to depositors. All these things combined
to restore q large degree of confidence
and belief that the worst had passed,
though several small trust companies and
banks had closed their doors because they
could not raise money on their securities
as nobody had money with which TO buy
the securities.
In the local market investors and others
began Thursday to fuy Newark City, Es-
sex County and East Orange bonds, which
run fifty years and pay per cent. IN
terest. Brokers sold $1,000 to $1,000 worth
of bonds to individuals, who drew the
money out of banks or gave checks New
ark City bonds are issued in denominations
of $500 and $1,000 bonds. These municipal
and county securities are nearly as good
as United States bonds, for they are
mortgage on city and county property.
Yesterday morning the call for these
bonds began as soon as the local marker
opened One broker sold blocks Of 1000 to
5000 and 10000, and disposed of nearly
$2OO000 worth during the day. Hair an
hour before the market closed for the day
a party telephoned asking If he could get
a 100000 block of bonds. The Newark
bonds which were quoted two years ago
a. 115. sold at 102 Essex County bonds
that have brought as high as Ill., sold
at lO1 and the East Orange bonds, which
should sell at los or 110, sold at 101.
AT the unusually low prices quoted the
municfpal and county bonds are good
investment) for after the present financial
trouble, which thus far has been confined
to Greater New York and Pittsburg, passes
and money becomes easy again, the bonds
are certain to increase In value, and the
holders will make a profit on the bonds
when they sell. Besides, II people buy
these bonds or traction or electric bonds,
now. the brokers or the men they act for
will deposit the money in local banks and
thus keep money in circulation. This is
much better than locking money in boxes
In safe deposit vaults, where 1t does not
earn a cent and does nobody any good.
Local securities of all lines have de-
creased in market value for upward Of q
year, and the prices now are good deal
below the actual value OF the bonds and
stoclxsA and other securities. Essex Coun-
ty bonds, due In 1947 sold yesterday at
iOl; Newark city bonds, due In 1851, sold
at 102, and East ora9ge bonds, due IN 1891,
sold at 101. All Of these are worth TO ~
uoints more than the figures quoted.
Consolidated Traction stock sold yester-
dav Mt 80 and go. The highest price they
have reached was Sc. so that the price now
shoes a loss of 26 and q points, and Con-
solidated Traction bonds sold this week
down to 80 and par. North Jersey Traction
bonds. which once brought s5, sold down
to Ga. a loss OF 81 points. and white Line
bonds have dropped from their top notch
price, So, to GO, at which price sales We're
made Yesterday, total depreciation Of 25
points.
| United Electric bonds, which has brought
as high as SS IN the market, are now sell
ing at 90. a loss of Is points. and Essex and
Hudson Gas stock, which has sold at above
30. Is now quoted at 102
Other local securities sold at very low
prices Hudson County gas stock sold at
95. and the bonds at 80 this week, though
both have been rated at several points
above par. Newark Passenger Railway
bonds sold at 103. Public Service certii-
Gates sold yesterday down to IS and 81
/ and the water at 81 and 90 No sales Of
nataionaI banks and insurance stocks
were recorded. for people are holding on
to good dvidend-paying stocks, and they
have the greatest confidence In the local
bRnaks. trust companies and insurance
companies.