The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-06-03
Satisfied Bulls and Bears, but II
Was Conservative in
M Tone.
BUSINESS FEARS CAMPAIGN
Railroad Notes More Popular,
and Traders No Longer
Terrified.

NEW YORK, June's.-Thc President
speech has been one Of the dominating
factors during the week in Wall Street
The usual leak from some ollicin
source provided nearly all of the aler
commission houses with advance copio
of the address, so that several day
before its actual delivery Wall stree
was we'll informed as to Its contents
Thc effect wE; pretty we'll discounted
though the Interpretation of the Presi
dents meaning In the several impor'
tant passages Of the speech was no.
uniform. The bull and bear factions
were therefore both able to make some
capital out Of 1t. The general conciu-
sion seems to DO that the President mas
rot changed his policy toward the
railroads in tho slightest. and that nc
intends to do everything in his power
during the remainder of his admins
tration to correct the abuses that nave
crept into the management OF the rall-
roads of the country, and to protect
az Tar as possible, the people VINO nave
Invested their money in these sec0rl-
ties. The speech would nave peeh
accepted as reassuring by the invest
ing element If the correction OF these
abuses were to remain In the hands
Of the President alone. in whose good
faith and sincerity of purpose the con-
sentative element has little doubt; but
they fear that from a desire to emu
late his example, or to make political
capital out of the public sentiment he
has created, others may be. led to in
porations which may embarrass their
earning power and dscredt their Sc
curities not only in the mind of our
own public, but of investors abroad.
This is the danger that the careful
investor most fears
Fear the Campaign.
The business interests are also In
clined to greater conservatism because
Of the increasing activity in presiden-
tin, politics and the development of
new issues which the campaign prom
Uses Wall Street expects that the tar
iff question will undoubtedly be taken
up by one party or the other next year,
and the possibility of radical changes
in present schedules is a very impor-
tant factor with which those who are
laying out their business programs
for a year ahead will have to reckon.
"a
tate the complete Encouragement OF
these plans. Wall Street is expected to
take q greater part than ever before
IN the campaign of next year. The great
Interests which President Roosevelt
has. attacked will undoubtedly do
Everything in their power to prevent
him from controlling the next Repub-
lean Convention and from perpetual
ing his policies through its nominee.
II 1rno n n n
over the country. and Wall Street
hears the story that if they do not
succeed in selecting a suitable candi-
date on the Republican ticket they
will throw their influence to the De-
mocratic party. The situation. there
fore, Is 10 complex that the approach
OF the campaign is being viewed with
unusual anxiety, in investment circles,
and Is engendering a cautious senti-
iTent throughout the entire business
and industrial community.
Railroad Notes Popular
An attempt was made during the
week TO create q bull movement in the
Hartman and Hill stocks and the Sc
curities OF st. Paul, on the theory that
the Presidents ideas on the valuation
OF railroad properties and the rcstric-
ton of ovcrcapitalization would give
these three systems q monopoly OF
railroad building in the west ana
Northwest in the future. and it would
hesrmpossible for weaker companies
orfanew organizations to finance con-
slruction without using bonds accom-
panied by stock bonus.
The fact, however, that the corpo-
rations need all the available money
that can be obtained to carry out
plans already undertaken has operated
against any extended bull movement
IL their securities. Investors are not
looking with favor on their securities.
moreover. owing to the fact that
these corporations are paying more
and are willing to pay more, for short
term loans than their stocks are return
Ing to their holders. even at the pres
cnt depressed prices AS matter of
fact the short-term notes Of rail-
roads are considered about the most
attractive investments that are now
being offered in the financial markets
These notes have precedence over the
stock in the equity of the corporations
which issue them, and their yield is
usually much greater. Some of the Erie
notes recently sold in Wall Street give
n return 10 the holder of about per
cent.