New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-03
FINANCIAL AFFAIRS
STOCK PRICES HIGHER
Heavy Gain in Union Pacific
Money Rates Easy and Er-
change Lo1cer.

c, ,os ,,o1-ad in the direction of a
higher level throughout the greater part Oh 'fie
cav. with the chief Improvement IN the haFEi-
man shares Reading. st. Paul ROCK Is!anu
o-eferrcd and the Hill issues. Speculative IN
terest was centred almost entirely In the stocks
named their advances apparently being based
on an active bull movement, which caught
1.rger short account than was supposed TO exist
IN the market Union Pacific closed at net
gain Of IA Southern Pacific at a net gain OF
is. Reading at a net gain of 3%. ROCK lsland
nreferred at a net gain Of 33s and ST Paul at
NET gain of 21. The movement started with
remarkable strength in Union Pacific. which
was accompanied by the report that at the next
meeting of the directors Of the company an
nouncement would be made Of a plan by which
the company's holdings of the stocks Of other
companies would be segregated in a manner
that would give return to the stockholders Of
per cent On their Union Pacific stock and >
per cent on the assets company. Probably
the chief reason for tire advance was the in
formation received by the insiders Of a large
short interest in the stock and manipulation
against that account. The Improvement in the
leading active shares naturally extended to other
parts Of the list. but there was little response
from commission houses and no important ex-
pansion in the general dealings. Of the total
business of 629442 shares. seven issues sup
piled more than two-thirds. There ample
evidence of pool manipulation, particularly after
the publication of the Union and Southern Pa
ci1c reports for the month of August. Money
was easy throughout and sterling exchange was
lower.
According to the known movement of money
in the week the local banks have lost 81 .691.IO
in cash. due in great part to excess payments
to the Sub-Treasury. The loss TO the govern
ment indirectly reflected the interior demand for
funds in connection with the financing Of the
harvests. out-of-towu banks drew their
New York balances in payment Of accounts due
to the government. instead of remitting direct
to Washington, using their funds on hand to
meet home requirements for crop moving pur
poses. On the direct movement Of currency be-
tween New York and the interior the loss was
small, but from shipments Will be
heavier, and it is not unlikely that in the course
OF the next two months the cash and surplus
holdings OF the local institutions will show
material weekly decrease The drain upon the
banks at this centre. however. will not be heavy
enough to bring about any disturbance in the
money market unless there should be q tire
mendous bull speculation in securities. Current
indications do not suggest the development of
a runaway stock market. While there is no
reason to look for substantial declines from the
present level there also Is no reason to look for
a movement in values that would carry the gen
eral list to an inflated level. The best market
judges hope for steady Improvement in values.
They base their belief IN higher prices on the
strength Of underlying conditions, on the ease
Of money rates and the expectation that Mr..
Taft will be elected. There is a falr demand
for good bonds the exchange and over the
counter, the position of the bond market
coJraging the belief that the railroads will be
able TO float issues in the near future
reasonable terms. The railroads need more
money for the resumption Of work on extensions
and betterTnents, and there is no reason why
they should not secure all the funds they may
require for purposes that will increase the in
trinsic value of their securities
Railroad earnings improving. and while
no great increase is looked for in gross returns
until after the election it is encouraging to know
that the tide has changed in favor Of the COM
panies In the last eight months there has been
a heavy falling off in gross receipts, but through
economies in operating expenses net returns
have not made an especially bad showing, eX
cept in the Of few companies Union
Pacific for the month Of August showed great
Improvement in gross as compared with recent
months. the decrease amounting to only $50. 042.
while net earnings increased 1851 ,13S Southern
Pacific made a less favorable showing in gross,
the decrease amounting to 81 .G22,ill. though
through great operating economies the company
was able TO convert that loss into d net gain
Of SlG9,0IS. The results obtained by some CON-
panies in net earnings almost TOO good 10
be true.
NEW YORK CITY BONDS.
FURNISHED by Eyer Co. No. 81 Wall street,