The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-12-31
FINANCES ARE
LOCALLY
SECURE
Review of Transactions in
the Newark Market Dur
ing Year Of 1907.

THE year of 1907 in the local security
market has been marked by the same in
iiuences which have affected security mar
kets III all parts of the country. The
active demand for money by manufac-
turers, merchants and large corporations
generally has been reflected in the price of
securities of all classes. Banks, trust COM
panies and financial Institutions have had
no trouble in loaning their funds on long
time, at high rates, and have purchased
very few bonds in consequence.
AS the year wore on and the stringency
in the money market became more acute
prices of both stocks and bonds declined
to a point very much lower than they awe
sold at in years. With practically three
panics on the New York Stock Exchange
that of March, August and November
each followed by great losses and liquida-
tion, it is little wonder that our local
securities were affected sympathetically.
What liquidation has taken place in our
market has been largely the result of out
side Influences, the pressure coming princi-
pally from holders of local securities in
New York and other cities. For several
years speculation in our local securities
has been at low ebb, most purchases being
made strictly for investment. The result
has been that when the panic came upon
us it found the Newark market in a very
strong position, with very few borrowers
who were forced to sell their securities at
a sacrifice.
TOO much credit cannot be given our
local bankers for the manner in which they
handled the trying situation. When the
failure of the Knickerbocker Trust Com
pany of New York took place it found
banking Institutions all over the country
loaned up closely in order to accommodate
the demands of the manufacturers and
business men in general.
e"This failure brought on practically a
ank panic in which large numbers of de-
positors withdrew their money from these
institutions and locked it up in safe de-
post vaults. This forced most of the
banking institutions themselves to become
borrowers from their New York CORE
spondents, and making it more difficult to
accommodate their dealers without re-
course to the callilg of loans on collateral.
For thirty days or more 1t was almost
impossible to borrow money on the highest
grade of securities. A broad and liberal
view of the situation wa taken by most
of our bankers who, in view of the fact
that Newark has nc clearing house. were
forced 10 depend on their own resources.
During the year municipalities. as wei. as
corporations and individuals. felt the pinch
of the tight money. and those that sold
securities were forced to do so at lower
III iiidIi ildu DGeNdlleu lot years.
In May the city Of Newark sold 81, 1855, 500
4 per cent. ~forty-year school bonds at
about 1O1. eleven bidders competing for
~ s<.sssgAdss~ OF bonds have been
sol,a.vs o,,n1. S4ejf less than 1914, and
most ---vnem Selling between 102 to 103,
showing that the excellent credit Of the
CITY was maintained in times of great
stringency. In July Essex County issued
S5OO,Oo0 4 per cent forty-year hospital
I.a~1~ - ,A, A-I ste... nI-~.- la.I.
have sold OH the market in lots to suit at
par to 101, most of the issue having been
disposed of.
The trading over the counter during the
year in municipal bonds has been come
what limited in volume, Essex County 4
per cent. bonds of various dates selling
from par to 103; city of Newark As, due
1922, at 100 to 103; Elizabeth adjustment As.
due 1922, at 81 to 1904; East Orange school
As, due 1917. at 1907 to 1019.
"Of the railroad securities dealt in the
princi, al issues have been United New
Jersey Railroad and Canal As, due 1929 and
1914, selling at 9S to 1G; Morris and Essex
rs, due 1914-15, ranging from 122 to ITO;
Central Railroad of Now Jersey SIS. from
126 TO 113; Easton and Amboy 5s, due 1921,
at ITO to 1903; Morris and Essex stock. 1872 to
155; United New Jersey Railroad and
Canal Company stock, at 255 to 223, and
various odd lots of other issues, all selling
Mt large concessions from prices obtained
last year.
Insurance stocks have been dealt in to
q limited extent, very few offerings APP
pearing on the market. Newark Fire
ranged from 230 to $50; Firemen's, at $50 to
SGo; American, 400 to $50. This p
issued to its stockholders during the year
$150, 600 of new stock at 800, making the
capital now $3.50, coo, with surplus Of two
to three times this amount. Prudential
Insurance Company has ~huctuated be-
tween $50 and 600 on small transactions.
Bank stocks have declined to a price
at which they sold when earnings were
not much more than half of the present
rate. Newark Banking Company has
ranged between 800 and 800; Essex County
National, 275 to 300; Merchants National
2O to 275; North Ward National, $40 to $40,
and the others in the same proportion, with
a rather narrow market during the entire
year. With easier money conditions, all
bank stocks should rapidly recover from
their present low figures.
In Public Service Corporation securities
the market has been fairly active at
times. This corporation owns or controls
practically all the traction, gas and cleo
tric light companies of northern New Jer-
sey. The stock is largely held in a few
hands, and what dealing has taken place
has been in small lots, running, from s.
to IS. An order for several hundred shares
would be difficult to fill at anything like
present prices. During the year dividends
of l per cent. quarterly were paid.
Public Service collateral ) per cent.
notes have been in demand from 80 to 80.
Certificates were probably more active
than any Public Service security. and
ranged from so to 6S, with quite heavy
purchases in lots of $1,000 to $1,000; New
ark Passenger Us, due 1880, now a first
mortgage on all the traction lines in New
ark and vicinity, from 10 to 101; Console
dated Traction IS, due 1880, from 9s to LOG;
stock from 80 to 76; North Jersey As,
which some years ago sold at IS. ranged
between 81 to 70; Jersey City, Hoboken
and Paterson IS, due 1949, Familiarity known
as white Line" from So to II; North
Hudson County Railroad first IS and Con-
struction SIS lost from 10 to - points, clos
ing about 100 and IS, respectively.
United Electric Company As, 1919, with a
record eight years ago of selling at IS,
sold as low as 81 and as high as 20. This
company, in eight years, has added fully
$4,000, 900 to its improvements, and in
creased its net earnings from less than
$4,000 per year. to over 100000 for 1907;
almost double its interest charge.
Gas bonds have shared the general de-
preston, Newark Gas IS selling in small
lots from 1876 to 122, Newark Gas IS from
106 to 9S. Hudson County Gas IS, 103 to 81;
South Jersey Gas IS from gS TO 30, closing
- n 80 -. 81 T1A-.-r- 49, --I 10