New-York tribune., 1908-05-25
THE WEEK IN WALL STREET.

30 -o.. .rd twelve industrial shares at 1872,
,o,,o.,od ,,-i+b 81 Al for the railroads and 53os
for the industrials the low points Of 1891. IN
many cases-in fact. in the majority Oh secuii-
ties-quotations a week ago were higher IMAM
at any time in the last twelve months' sho"iA9
enormous appreciation in individual instances
as in Union Pacific. which crossed 15O, gain
of 81 y points over the level made IN last lall
panic and in ST. Paul, which presented gam
of 461b Certain inactive issues enjoyed even
greater Improvement. Lackawanna, for instance
being quoted ii points higher than IN the COL
lapse of 1907. From the level established last
Monday there has been. however, an almost
steady decline the average for the chief railroad
stocks now being under 1o1 and for the indus
trials under -. OverspeculatiOn on the bull side
of the market rather than outside news develop
ments was responsible for the change in the
trend of values, but the downward movement
was hotly contested by the advocates of higher
prices VINO in Thursdays dealings were success
full in bringing about a strong closing, which,
however, followed by renewed weakness on
the succeeding day, with final prices at the close
at about the lowest. Opinion in speculative
circles decidedly mixed at the end of the
week regarding the probable OF values
in the immediate future. The bull element
based its expectation of improvement upon easy
money and the Willingness of lenders to encour-
age activity on the long side of speculation.
while traders in favor of lower quotations pinned
their faith to speculative conditions and political
uncertainties to bring them profits on bear oper-
ations.
Genuine satisfaction naturally is felt in in
vestment circles the pronounced betterment
that has taken place in the market value OF Sc
curities in the last few months, but the fact is
recognized in conservative quarters that the
general level of prices now adequately measures
the intrinsic worth of securities and ii is be-
lieved further aggressive speculation for higher
figures will be attended with considerable dan
ger and will not to establish sound con-
ditions in the Street. Manipulation played an
important part in the enhancement in security
values and TO some extent served a useful pur-
pose but further operations Of this character
will start the market toward collapse, irrespec-
tive Of favorable developments in the business
world Present prices discount whatever i'm
provement may be recorded in the countrys in
dustries in the course of the next few months,
despite the persistent talk of bull boomers to the
contrary. The people back of the campaign for
higher prices have conducted exceedingly
well organized and effective speculation. and it
is to be hoped that they will not permit their
enthusiasm to get the better Of their common
sense by continuing their fight at a time when
the public shows no inclination 10 come into tne
market and when powerful and reSourceful pro-
fessional traders are laying plans for extensive
bear operations. The public is not buying
stocks but, the other hand. it recently has
been a considerable seller of securities which it
took from Wall Street at the cheap prices OF
panic days, and as a consequence of these trans
actions the floating supply of stock has been
materially increased in all parts Of the list, espe
cially in Union Pacific and Reading. Commits
sion houses that were active buyers of odd lots
last fall have been heavy sellers for the same
account, their operations on these lines being
among the striking features of the current mar
ket. An enormous amount of stock has come
upon the market. representing purchases made
many points under the prevailing level and in
'dicating huge profits for the interests who had
the courage and the means to accumulate secu-
rites al the low points OF 1907.
Though railroad earnings, idle and loco
motives and light bank clearings reflect much
idleness in industrial circles. bright spots are
developing in certain quarters and a greater
tone OF cheerfulness is noted among merchants
and manufacturers. Underlying conditions are
considered sound. crop indications at this early
period satisfactory and hysterical clamor
against corporations is disappearing The fed
eral government continues its policy OF proceed
ing against corporations that supposed to be
breaking the provisions Of the Sherman anti
trust law, but the rounding up of lawbreakers
among the railroads and industrial concerns
will help rather than injure the trade situation.
Investors will not be alarmed because the gov
ernment has brought action against the New
York, New Haven & Hartford Railroad a
combination in restraint of trade, notWithstand-
ing talk in Wall Street that the movement
| is distinctly another slap at vested interests
| Vested interests have received many hard slaps
| from state legislatures, but fortunately unrea-
soning agitation against the transportation COM
panies is dying rapidly and property rights
threatened by unsound legislation being pro-
tected by the higher courts The railroad com
| panies viii grow in popular favor if they obey
| the law and if they do not antagonize the pub
| lie. That the officers of the roads are begin
ming realize their obligations to the public and
| the important part the public plays in the sue
cess of their companies is reflected in many en-
! coura ging ways that ought TO be especially
| agreeable to the of railroad securities
| The only mistake the railroads are making at
! the moment is found in their efforts to bring
! about higher rates Though railroad rates are
| low and under certain conditions might be ad-
vanced without opposition from the shippers
/ the present time is about the worst that could
be chosen for such movement. Every rail-
road in the country is practising rigid economy
| but IL is not believed the unfavorabe industrial
/ conditions that compel the reduction in operat-
ing expenses viii continue for any length of
| time. Some improvement is reported in the
| cotton trade and in iron and copper.
| on the current outward course of gold more
| than s31o 600 has been shipped engaged,
| and present indications suggest the probability
of an enlargement of the movement in the pres
| ent week In view of the large idle surplus in
the local banks shipments OF the yellow metal
cannot be considered immediate factor of i'm
| pcrtance as far the money market is con-
! cerned, but a continuation of withdrawals for
| European account may develop the fact that for
| eign holders of American securities bought at
| lower prices have taken advantage of the recent
! advance the local exchange to liquidate their
accounts as result of distrust of conditions in
This country. So much reckless speculation has
been under way here in stocks, cotton and grain
he slirrnriSlty IL in