New-York tribune., 1908-07-01
FINANCIAL AFFAIRS
STOCK V4LUES HEAVY
Light Days Trading at Fractional
Losses-SteePs Strong Position.

There only six issues in yesterdays mar
ket in which dealings amounted to more than
5000 shares. while eight stocks supplied more
than two-thrds of the total operations of 1908
shares Union Pacific. United States Steel and
Reading furnished more than one-half of the
entire business, in which price fluctuations were
confined to small figures, with the general ten
dency soon after the opening in the direction of
lower quotations. AS rule, transactions repre-
sented nothing beyond the trading of the board
room element, commission houses practically
being bare of orders, though they had some in
quiries from customers regarding the adVisa-
bility of buying stocks at the current level 1t
was a dull hot day the exchange, the tape
at times hardly averaged 200 shares a minute
and dealings We're too light in volume to convey
any meaning or to suggest the probable course
of values in the immediate future. The saggins
tendency appeared TO be more owing to neglect
than to selling pressure. The so-called active
shares showed fractional losses at the close.
while among the stocks in which trading ran TO
very small proportions declines also generally
were reported Ontario & Western and Western
Union. the latter on transactions of only 5p
shares being among the few exceptions ending
the day at net gains Money easy, though
call funds touched per cent for brief period
as a result Of July dividend and interest dis
bursement arrangements. while a greater dis
elimination in the matter of collateral on time
loans reported.
Traders who have endeavored to bring about
Steel shares have not been successful in their
efforts despite the depression in the iron and
steel industry and evidently there is little
chance of a slump in these issues except in the
event of a general declining movement both
the preferred and common being widely distrib
uted in investors hands, with no great amount
Of floating supply, notwithstanding the large
amount OF stock outstanding. The fact that the
Steel Corporation is able to make dividends.
though working at only about 30 per cent of it's
productive capacity, naturally increases conf
dence in its securities, while the knowledge Of
the concerns immense cash surplus intenst1es
the good opinion in which the common and pre-
ferred stocks are held by the investing public
The company could pay preferred dividends in
periods of greater depression than at present
while it would require tremendous falling off
in earnings to make payments Of the regular
per cent rate on the common out Of the ques-
ton. The management's policy of building up
an enormous cash surplus practically insures
dividend disbursements even in times when net
earnings might fall below dividend requirements
and the dipping into the surplus for such pay
n1ents would not be out of line with the
poration's conservative methods. The steel
trade always feels acutely the effects of indus
trial setbacks, but IL is also quick to recover,
and in prosperous times more than makes up for
the losses suffered in days of depression, owing
10 the tremendously varied use of its finished
and unfinished products in the country's busi-
ness. From all indications there will be a boom
in steel structural materials just the
crops and election uncertainties out of the
way.
Regarding the possibility Of the election of
Mr. Bryan, which some Wall Street people are
worrying over, it may be well to bear in mind
that such unfortunate outcome Of the voting
would not the adoption Of Bryan policies
as no such policies could get through antag-
onistic Senate. Mr.. Bryan could talk and rage
and fight, but he would be unable to accomplish
anything. AS rule Wall Street interests are
convinced Bryans nomination means the sue
cess Of Secretary Taft, and consequence
they are paying more attention to the course Of
the crops than the political situation. Some
traders are counting upon a decline in values
following the Democratic nomination, but they
are so eagerly expecting such movement thai |
the chances are two to one there will be i'm |
portant losses, if any Traders counted upon |
an advance following the nomination of Secre- |
tary Taft, but the market promptly declined on |
the announcement of the conventions action. |
and in line with its frequent contrary moods it |
may advance when Mr.. Bryan receives the Of |
fetal stamp upon his self-ordered nomination. |
Feeling that his nomination is good as a de- !
feat at the polls, Wall Street may greet the de-
liberations of the Democratic gathering with 4
bull demonstration in securities