New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-06
THE WEEK IN WALL STREET.

future, except perhaps, In stocks aHec'eu oS
factors relating entirely TO the companies direct
ly concerned. There is too much uncertainty
over the crops and railroad earnings TO ehcour-
age a widespread speculative demand FOR secu-
rifles and this uncertainty also serves 10 dis-
courage extensive operations on the snort sue
of the market traders fearing to make big COM
mitments until they know whether the crops
are TO be good or bad and until the course OF
railroad returns shows whether or not the poor
results accomplished in net in the first three
months of the year are forecast of the trans
portation business in the balance of the year
Extraordinary conditions, 1t is asserted pyFah-
road managers were responsible for the gener-
ally adverse business In the first quarter ana
the falling off in the net earnings OF the Ne"
York Central, the Pennsylvania, the Southern
Pacific and the Southern Railroad are attrlo-
uted to factors which, according to the tranlc
men, are rapidly disappearing: but wall street
doubtless will prefer TO wait until actual re-
suits for April. May and June are presented DE-
fore operating in stocks on the theory that 1907
is TO be period OF great expansion In railroau
receipts. Gross earnings have been on large
scale, but in most they have been eaten
up by expenses. with many indications that the
cost of operation will be heavy for months to
come while there are signs of reaction IN
trade that will be large enough to cut down
gross returns.
II need not be assumed that because of a
healthful reaction in the country's business and
the expenditure of large amounts Of money on
the railroads the latter will be forced into bank
ruptcy or to reduce dividends. but 1t is, how
ever, safe to assume that in the event OF d"ih-
ding earnings stock market spectators VIII
not be inclined TO take bullish view OF prices
for securities. The railroads of the United
States are in a strong position. and they can go
through lean period without being compelled
10 cut their disbursements to stockholders ana
the same thing may be said of the solid indus
trial concerns which have enjoyed number or
years Of great prosperity and are fully able to
assure their security owners that dividends VIII
continue to be paid. even If market values de-
cline Likewise the agricultural community Is
strongly intrenched against year of adversely.
The farmers of the country have had years of
big crops their profits have been large their
mortgages have been lQuidated or reduced and
they have money in the banks. with reserve
buying power that will be important factor
in preventing distress IL weather conditions
should go against them in the current season.
The country in general is stronger at present
than before in its history. The Federal
Treasury is strong. the corporations are on firm
ground and the individual is richer than
business preparations are being made TO meet
hard times. and in these preparations lies
sure safeguard against. financial disturbance.
Students of economic affairs in the report
of April commercial failures some sign that
prosperity is on the wane, but they unable
to find anything IN current conditions that war
rants the belief there will be anything more
than healthfu reaction. slowing down process
and period of rest that will tend TO conserve
rather than upset the industrial situation in
this country In the month of April commercial
fnsolvencies were about the same in number as
in the corresponding month year ago, but liza
bilites were heavier by more than ss.oOO,OO0
the increase coming chiefly from manufactur-
ing bankruptcies.
Though there was some expansion in the vol
of trading the Stock Exchange last
week, as compared with the dealings OF the pre-
ceding week, the gain in transactions was sup
piled by the operations in a few shares. notably
the copper stocks. Union Pacific and Reading.
There was little commission house business for
outside account. Brokerage houses. a rule
advised their customers to trade for quick turns
only. the market being made up in great part
of this sort of dealings. buying on the reactions
and selling on the rallies Interest TO a great
extent was centred in the movements in Union
Pacific and the sharp rise IN the preferred Gre
ated the impression that something of unusual
Importance to the holders of the Hartman
shares was being discussed by the management
Of the Hartman properties. The old story of
Union Pacific holding company was brought out
in various new colors but whatever Mr. Harri-
man and his fellow directors in the Union Pa
cfc had in mind guarded more closely than
a state secret, and at the end of the week the
Street was no wiser regarding the Union Pacific
plans than il at the beginning. though II
chose to believe some arrangement VIII be made
bS which the Union Pacific will divest itself OF
it's holdings in other roads without. however
losing the control and ownership of these secur-
tiles Evidently the Hartman interests fear ac-
ton by the government to upset Union Pacfc's
control Of Southern Pacific. and a conse-
ouence they intend to forestall any movement
on the part of the federal authorities but what
ever the Hartman people do and whatever the
government may do the various railroads that
make up the Hartman group will continue to
run their trains and pay dividends Action by
the Interstate Commerce Commission against
the roads that violate the law, a government
valuation Of railroad properties and the passage
OF new laws at the next session Of Congress af-
fectng all corporations will not knock out
vested rights as some narrow thinkers assume.
The copper and steel shares have many
friends and the underlying strength of both the
copper and steel industry suggests the pur-
chase of the securities of the United States
! Steel Corporation and OF the Amalgamated and
! Anaconda copper properties in the
event of trade reaction the companies will not
| be weakened TO extent that will make the
| passage or reduction of dividends necessary.
| The directors of the United States Steel Cor
poration acted wisely last week in not advanc-
ing the dividend the common stock despite
the fact that earnings in the first quarter OF the