The Washington herald., 1907-04-10
Stock Prices Reveal Under
lying Strength.
ALL VALUES TEND TO RISE
Smelling, steel, and Copper Lead
Advances UnGer Heaviest Buying
Surplus Enormous and Coed Divi-
dend Is Not Improbable.

day that at times yielded, however, to
persistent and determined efforts on the
Part Of spectators for the fall TO de-
press prices; and, indeed, these efforts
were successful in closing the market IT
somewhat lower level than that of yes
terday. Nevertheless, the hrmness Of the
market under these successive raids was
its dominant feature and 1t was apparent
that the instructive tendency OF values left
10 themselves was to advance. In the
fore part Of the day, quotations for the
active stocks rose generally from j 10 8
points, the upward movement being led
by the largest buying of American
Smelling and Refining, United states
Steel, Amalgamated Copper. and other
prominent issues seen during the last
fortnight The advance in Smelling COM
mon stocks was due 10 the current i'm
preston 70 which reference was made in
this column yesterday that the stock
would be placed upon a 10 per cent divi-
dend-paying basis in the near future. per
haps at the next quarterly meeting of the
directors of the company, held for the
purpose of fixing the rate of distribution
Accumulation of Steel common shares
was directly traceable to the belief in
the financial community. for which the
soundest reasons exist, that the value Of
the stock has been immensely improved
in the last twelve months by the action
Of the management of the company in
dev0tiHg large portion of the earnings
of the company to new construction
work, while the profits of the business Of
the company have been such in the mean
time as to allow all this 10 take place
without the sale of any new bonds or
stock, and to allow also of the building
up Of a surplus reserve fund in the COM
pany's treasury that is in excess Of 800
O90g00.
May Mean Increased Dividend.
Under ordinary circumstances such a
condition OF affairs might be logically sup
posed 10 entail an enlarged distribution
upon United States Steel common stock
at no very distant date. Whether such an
increase of dividend payments viii be di-
recteds in view of the cOmpany's plans
Tor Improvement work and for the build
Ing OF its great new plant now under way.
Is OF course, doubtful; but the salient
fact about the matter is that the ability.
as couserYanyely adjudged, Of the steel
common stock 20 at least per cent is
now absolutely beyond question Accord
ing TO all competent judges. the future
OF the iron business in the country. for
the remainder of the year at least. is
assured. There has been no break in steel
or iron prices thus far, nor does there
appear 20 be any likelihood of such q fall
There has been only q trihing amount Of
cancellation of orders on the books of the
producing companies, while IN the ma
Jority Of cases the orders now resting
there are Of nature not subject To revo-
cation The position of the United States
Steel stocks therefore as investment is
sues stands intrenched as it has never
done before in the history of the CORPORA
ton.
Southern and Erie Attacked.
The fiTst attack upon the market to-day
came in the shape OF heavy selling of the
Southern Railway and Erie stocks upon
the same grounds, fanciful or otherwise.
that We're put forward as pretext Tor on
slaughts upon these issues when the
bear movement in the market was at its
height two weeks ago
Later this was followed BY lively
offering down Of Union Pacific stock
upon the probability, as was declared. Thar
the interstate Commerce Commission pro
posed TO ask the law officers of the gov
eminent TO compel the president of the
Union Pacific Company to answer the
questions that he declined TO answer ~
the recent sessions Of the Interstate Com
merce Commission in this city.
4here IS OF course. every probability
mat such action viii be taken by the
interstate Commerce Commission al |
though there is substantial reason IN he
AeFe that the members are by no means /
or one mind on the subject Similarly /
also II IS in every way probable that 4
az some time IN the future a suit will be /
Degun by the government to test the /
Union Pacit1c's right to control. as II does /
the management of the Southern Psci,ic /
company; and yet how the possibility of /
ether OF these events can be considered /
as adverse arguments" upon Union Pa
enc stock is hard TO understand.
Must Divide Holdings.
Even if it be assumed that after q 1onq
course Of litigation the Union Pacific Com
pany viii be forced TO dispose OF its
Southern Pacific holdings, the companv
must then divide these holdings among IFS
stockholders; that is TO say. must give m
Its shareholders in some form or other the
vast equities that have accrued .IDon IFS
purchase years ago of Southern pacie,.
stock It may be remembered that a Ii+tlo
TINE ago one of the reasons most entru-
slasucalIy advanced for the great rise In
IEeadlng was that the company might be
forced 70 meet similar exigency and
give 10 its shareholders in some tangible
shape the equities possessed by the com
pany in the coal lands owned nv The co.,
tons % 7''iii4''-
once more to-day all the real news
SUBSTANTIALLY favored the market The
pieEuIulness OF money both here and in
the foreign markets became more pro-
hounced. In London discounts in the
open market fell 20 a range considerably
more than I per cent below that main
tanned by the Bank OF England leading
TO the practical certainty that the dis
count rate Of the bank viii be cut TO m
lsast ~ per cent this week; and consols
ana al the leading investment issues
"sf-t III on the London Stock Exchange
made IN consequence of this, a notable
The London settlement passed OF. easilv
ana carrying charges on American stocks
Were greatly reduced. The German Bank
made weekly statement OF condition
that showed decided improvement In
the affairs in the institution since the last
report.
Here call money fell during the dav "a
u per cent, and time money lent freely
Tor SIX months at o. Sterling exchange
was weaker, and the ease in the money Z
market was emphasized by the fact that
during the day payment was made into
the treasury Of the Great Northern Rail
way Company Of nearly the fun amount !
or S24000o0 required to be paid in upon
four installments of the s5thsrrirtfc,,,- - I s