New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-11-19
FINANCIAL AFFAIRS
STOCK PRICES DOWN.
Heavy Realizing Sales Offset Early
Goins-Money Rates Easy.

stool, market trading was active in the hVe
hours ~ business on a movement of values that
showed great irregularity, with final prices IN
the leading issues at net losses. In the early
dealings new high levels were reached by many
securities but the advance attracted heaN!
realizing sales, which were especially large III
volume in the Hartman shares, Reaolhs'
United States Steel and st. Paul the last named
being actively sold by the professional element
though receiving good support whenever pres
SIRE of this sort appeared. No stock was taken
in the report of a big bond issue by the 81 fdul
comnany The shorts in the security ehoedN-
ored to~depress its price on the theory thdt lhe
co,nnanv in order to complete It's PACING Coast
extension would be compelled to raise an enor-
mons amount of additional funds but accord
ing TO interests identified with the property te
roads plans for extending its lines Will not re-
ouire additional important financing 81. faul
as 2 : per cent issue is not considered ATTRACTIVE
by some observers as an investment purchase at
its current price but this idea provides no rea-
son for bearishness on the part OF people WHO
already are interested in the company IL was
pointed out with considerable logic yesterday
that ST Paul could be sold at its present quota
,io,, and the proceeds invested in United States
Steel preferred at a profit Union racine
touched a new high record price, also the COZ
vertible bonds. In the last hour OF trading the
entire market sold down under the influence OF
onerations being reflected in net losses OF from
l to . per cent throughout the list of active
issues Traders who bought in the late bearings
reported a large supply of stock in the market.
The selling in the chief active shares was SO
heavy I'm the final transactions that supporting
orders were without effect on prices. Recent
bulls have unloaded enormous amount OF
stock in the last few days and as consequence
there is good supply of bear arguments IN the
Street.
From, the many INQUIRIES received regarding
the Union Pacific convertible bonds, and securi-
ties of this class in general. some confusion ap-
parently exists in the minds of certain investors
over the conversion privilege and the value OF
convertible bonds as first class investments. The
price of Union Pacific stock, into which the
bonds are convertible on the basis of q hXed
parity Of conversion of s1,750 par value IN
bonds for $1,000 par value i'm stock and the
ma rIet value of the bonds not yet on level
that would make short sales of the stock
"A gainst a purchase of the converublSs profit
able but a purchase of the bonds as an invest
n1ent on the theory Of converting them into 10
ner cent Union Pacific stock Is being made by
many people Vho have idle funds on hand The
bonds are now selling in the neighborhood Of
ee and the stock in the neighborhood of l82,
and az the conversion price is fixed at 115 the
equivalent for the stock would he LIS per cent
of the market price of the bonds, or 1880. at
which the stock must sell with the bonds at 100
before conversion can be effected Convertible
bonds are attractive investments in this current
period of expanding industrial activity. which
promises to carry quotations for stocks in the
course of the next twelve months we'll beyond
prevailing levels. for the that convertible
bonds will share in the prosperity that is COM
ing while they VIII be absolutely protected by
the fact that they a fixed liability of the
issuing company. The Union Pacific convertible
bonds may be placed in the gilt edged class.
while the same thing may be said of the Penn
sylVania convertible 3lzs the American Tee
phone and Telegraph convertible IS, the Atchf
convertible As and the Norfolk & Western
convertible As.
Strength in New York Central since the cleo
ton has carried the price of the issue 10 a level
that represents a return of less than Az per
cent and as the company will close the year
with just about per cent earned for the stock.
with no prospect of Increase in the dividend
in the new year. it is reasonable to suggest that
the quotation for the security fully measures
it's current intrinsic worth and any increase
that may develop In the near future as result
of expanding traffic receipts The directors of
the company doubtless viii not make the mis-
take of advancing the dividend rate to per cent
until the company has completed its extraor-
binary Improvement and construction work
when there may be some assurance that a per
cent rate can be maintained And for q sim
liar reason 1T is not likely the directors Of the
pany 10 per cent basis in 1909 The latter
Issue may be bought 30 return little over ~