New-York tribune., 1907-01-07
THE WEEK IN WALL STREET.

STOCKS. Rarely mas the f1rSt month OF the year
passed without substantial movement toward
higher prices. The explanation of this phenom-
enon lies in the fact that the banks then in a
position to loan more freely for speculative pur
poses than during the latter months of the old
year. end because of the investment in securities
OF money received at that time in the form OF
dividends and interest
The technical condition OF the stock market
also usually favors an increase of values IN
the early part of the year. because unsettled
money conditions are apt TO have caused a
pretty thorough liquidation during the month
Of December. Such. indeed the situation
when. for the first time in than month
a buying power Of small proportions made
itself felt in the market on Friday and Satur-
day. During the entire month Of December tie
market had been reduced 10 the narrowest OF
professional limits or else had been subject to
almost violent spells Of liquidation in the higher
priced issues. More than one cause contributed
to the unsettled condition then in evidence. but
the heavy selling of securities paved the way
for far healthier and better market when the
turn in money affairs should come.
The huge new stock issues put out by the
northwestern railroads in November and Decem-
her served scarcely less than the money strin-
gency to bring about the successive waves OF
liquidation which took place. Now that Great
Northern. Northern Pacific and ST. Paul stocks
have become adjusted TO the issues,
stable market may be expected. especially in
view Of the almost certain easier rates for money
after the first of the year.
The earlier days OF last week bore the
characteristics the previous month. and bor-
rowers OF funds on call had TO pay as high as 45
per cent, while relaxation apparent in
time loans: bur Friday the banks seemed
have completed the January l disbursements.
and for the first time in more than month
charged in recorded instance more than
per cent for call loans. Stocks bounded upward
in an almost buoyant manner. and the distribu-
ton Of interest far wider than it has been
OF late. and included several OF the minor in
dustriaI shares. in addition TO the usual speou-
lative favorites On Saturday the movement
was temporarily halted by a less favorable bank
than had been expected in most quar-
ters. Before the close. however. the upward
movement was resumed.
Many conditions favor a continuance Of the
rise in values which started under such good
headway last week Among the strongest
shares were several of the larger industrials in
Guiding Amalgamated Copper and United States
Steel common. Favorable attention has recently
been directed TO these two issues because OF
their relative steadiness throughout the un-
settled days of December. Although neither
bull operations of recent months they had. on
the other hand, withstood bear raids in such a
fashion to show the confidence entertained
in them by the investing public The directors
of both companies will soon meet for the pur-
pose of declaring quarterly dividends, and Wall
Street is much in the dark TO what course
will be pursued by Mr.. Rogers and his asso-
ciates on the one hand and by Mr.. Morgan and
his friends the other. Undoubtedly, much
of the recent speculation in these stocks has
been incident TO the uncertainty regarding the
amount of the next dividend. Whatever action
is taken. it would appear that in both instances
an increase would be justified. and even If the
directors deem 1t unwise TO add to the existing
charges general confidence in the earning power
OF these two corporations. each the greatest in
its field, viii hardly be diminished
Seldom have the earnings of the great copper
producers been as enormous they now are
Several months ago there were but few authori-
ties who dared prophesy that copper would
reach 20 cents pound, but many OF the pro-
ducers have sold out their stock at "a cents and
unless consumption is suddenly checked in a
manner entirely Unforeseen at present 26 cent
copper is fairly within sight.
In general way conditions are not altogether
different in the iron and steel trade An inter
esting development of the last week was the
breaking away from the established price of
s2S ton for steel rails by several of the smaller
A runaway market is not wanted
by the great producing interests and in the long
run would undoubtedly prove disastrous TO all
parties concerned. The United States Steel Cor
poration has thus far steadfastly opposed any
advance in price. and in recent interview E H.
Gary, chairman OF the board of directors dis
claimed any intention the part OF the corpora
ton to break away from existing schedules It
many sales at $40 or $32 a ton for some time TO
come, because they have sold out the greater
Fart OF their capacity for many months ahead
at the old price. Yet the establishment OF
new price for future deliveries IS of not little
importance indicating how urgent are the
demands OF the railroads and how far from over
supplied the markets for the raw material
Turning from the field Of Industrial shares 10
that of railroad securities, the testimony before
the Interstate Commerce Commission which has
been investigating the Hartman lines at a hear
ing in this city, proved of vital Importance to
the securities market. although the effect 1t
will have cannot yet be fully determined AL
though there many other matters revealed
with which ii behooves stockholders of the
Union Pacific and Southern Pacific to make
themselves thoroughly familiar. the fact of
most immediate import brought out when
Controller Mahl testified that the Union Pacific
had purchased more than SOB 600 900 in the
stocks of other companies since June 80. These
Investments included an almost controlling in
terest in the Illinois Central an interest If not
controlling, at least probably larger than that
held by any other stockholder in the Balti-
more & Ohio; per cent interest in the
New York Central. and large blocks of Atch-
son. st. Paul. and Chicago & Northwestern
stocks.
There are several views which may be taken
of this stupendous investment in the securities