New-York tribune., 1908-09-01
FINANCIAL AFFAIRS
STOCK VALUES STRONG.
Southern Pacific Touches Ne1o High
Record Time Money Easier.

Stock market values exhibited strong un-
dertone in the five hours Of trading on mod
crate volume of business. with the heaVlest
dealings in the Hartman shares, United States
Steel Amalgamated Copper, American Smelling
and Reading There was attempt by the
larger interests 10 bid up prices, except IN d
few issues and no disposition on the part OF
the room element to take a pronounced stano
on either side OF the account. the chief buying
coming from the shorts while the selllns, as
rule was for the account of traders who worked
for so-called scalping profits. Spectators oil
the board room type realize that commission
houses are carrying few stocks for pubic ac-
count and that as the chief supply of securi-
ties is in the hands OF strong men, there Is no
incentive in hammering values In yesterday
trading, however, there were a few operators
who went home short of the market on the
chance of disappointing election results In Yer
mont which the. figured would bring about
active liquidation. If there had been large
public following in the stock market when the
recent bear house endeavored to demoralize
prices there would have been heavy liquidation
on that day. If there were big public interest
in speculation at present, a falling off in the
Republican vote in Vermont to-day doubtless
would induce heavy sales, but stocks are not IN
the hands of the outsiders, and politics and
manipulation, therefore, are not likely to be i'm
portant factors in the dealings In the AFTER
noon trading though Southern Pacific made
new high record. the movement failed to have
g widespread, sympathetic effect. particularly as
on efforts to bid up Union Pacific the chlef
specialist in the latter stock had plenty of it
for sale Illinois Central was strong feature,
and Hartman brokers were the buyers.
movement in this stock has been expected for
several weeks as a result of the bull opera
tions in other Hartman securities. At the
close the market quiet and under the best
prices of the day, with a few net losses noted
There are some persons who do not care TO
buy stocks at present on the theory that prices
already have discounted any Improvement that
may take place in the country's industries in
the course of the next few months, and that
after such an extensive rise that has been
corded since the low level of the year a sub
stantial reaction is inevitable This may be
good reasoning from the speculative point of
view, though, owing to the strong technical po-
sition of the market, some interests may doubt
It, but looking at the market offerings as purely
investment propositions no sound argument can
be advanced for keeping idle money out Of first
class stocks and bonds. The United States Is
not at the end of a long period of business ac-
tivity it year ago. when signs OF over
extension of credit and extravaganza in busi-
ness and private life were multiplying daily
On the contrary the country is on the threshold
of new era of industrial expansion and sound
credit conditions. and as consequence there Is
no inducement for the sale of investment hold
ings. Business economics have been brought
to a state bordering on perfection, economies
have been introduced in all lines of work and
credits never have been stronger. Money has
accumulated in all parts of the world. and once
again it is seeking employment on safe and sane
lines. and though no great increase is expected
in mercantile activity until after the election II
is well TO note that the improvement recorded
early in the summer has not been lost, but grad
ually is becoming more evident. Investors
should consider these things and Danish from
their minds any remaining thoughts of break
ahead We had the breakers last year. and
they hit us good and hard" Lower prices for
stocks may be recorded at times in the next few
weeks as the result of speculative conditions
and election scares. but a permanent cheaper
level of values appears out of the question.
Stocks are not dear investments. especially
as money is returning loans less than inter
est and dividend yields in the case of those
issues on which payments have been reduced in
the last year.
Earnings of the Union Pacific and Southern
Pacific companies, two properties upon which
Wall Street interest at present is centred.
amounted in the last fiscal year, which includ-
ed eight months of poor business conditions
throughout the country, in comparison with the
two preceding years. TO more by large margin
than the dividend requirements. and the market
Improvement in the stocks of the roads since
the panic level of last October has reached 65
points for Union Pacific and "A points for South
ern Pacific. The advance has carried Union
Pacific to point at which the yield is more
than 6 per cent and Southern Pacific to a level
that returns a little under per cent 1t is un-
derstood that the objective range is 1856 for
Union Pacific, at which the yield would be
per cent and 12e for Southern Pacific, also a
per cent basis. A return of per cent on a
first class railroad stock is all that a conserva-
tive investor expect, and a matter IN
fact in normal times railroad issues seldom
have paid that amount on the investment. Ap-
parently there is no doubt Of the ability OF the
two companies to maintain dividends the cur
rent rate indefinitely. and If the stock market
continues to expand on bull lines it Is not un-
likely that the Union and Southern Pacific is
sues will sell beyond per cent basis The