New-York tribune., 1908-06-30
FINANCIAL AFFAIRS
STOCK VALUES HIGHER
Prices Aduance on Light Days
Trading g-Money Rates Easy.

Stock market values were weak IN the carry
dealings but subsequently became strong unoer
the influence of covering operations ana Houei-
ate support from some Of the larger houses lhe
transactions of the latter. however, not oeiiie
heavy enough to indicate a disposition on the
mart of the substantial interests to assume an
active stand on the bull side Of speculation as
far as extensive manipulation for hlgher quotd-
tions was concerned Though these interests
are committed to the bull account, holding eA-
tensive blocks Of stocks for future pro1ts on
the long side OF the market. they evidently are
not vet ready to begin aggressive operations for
a rise. They realize that the time Is not ripe
for such a movement. but they are connoenl
prices eventually will go 70 level well ABOVE
that now current Activity confined to
few shares notably the Hartman group, Anal
gamated Copper American Smelling Readihs
and United States Steel common, the advance
in the issues. however, failing to attract any
public following. despite the rurnor that the
millionaire pool operating for a mateIldl
movement in Union and Southern Pacific Some
importance was attached to the dealings IN
Southern Pacific because of buying by house
that has been identified with the private invest
rnent business of the Standard. Oh ieaoers.
Floor traders in many instances. sold rather
freely in the last hour without affecting prices
and the general character of the market sug-
sested further rally on the theory OF rem
yestment buying following the July disburse-
rnents Investors Will find good opportunities
for the investment of surplus funds in the oond
market. Among the low priced shares moder-
ate purchases of Chesapeake & Ohio and Ne"
York Ontario & Western Were reported the
huving OF the latter apparently coming from
interests who for several weeks have been an
sorbing the stock. This issue is a per cent
dividend paying security. yielding about D per
cent on the investment and, compared with
Chesapeake & Ohio and many other shares. 1t
is selling at price that is too cheap and which
does not measure its merits Chesapeake
Ohio. in which bull pool recently operated. is
selling at about the same level as Ontario d
Western. while 1t pays l per cent less In dlVi-
dends There are many instances of this sort
In the present market which at some time VIII
encourage a process of readjustment. Money
rates were easy here and slightly frmer abroad
Berlin discounts were fractionally higher, and
a small amount Of gold engaged at this
point for shipment to Berlin to-day.
Railroad earnings in the first half Of the cur
rent year have made extremely poor exhibits
as compared with the record breaking figures
of the corresponding period in 1907, but 1t gen
orally is believed in railroad circles that results
in the second half will show Improvement,
though. of course it is not thought likely traffic
receipts will anywhere near approach the re-
turns of the same time a year ago. Many rail-
roads have reduced their dividends from the
level that great prosperity warranted last year
and further adjustments to lower basis will
be made but fortunately the decline in the
volume of traffic has not been extensive enough
to cut off dividends entirely except in a few
cases where conditions have been unusually ad-
verse as for instance, Missouri Pacific. which
has suffered from the effects of business de-
preston and faults the part of the manage
nent of the property. Though there has been a
tremendous falling off in. the earnings of the
Pennsylvania in the last six months, the COM
pany has earned in that time little above the
eni-annual 3 per cent rate and this
panv's business a territory in which
/ live oF. rada iS nfed itS
ability to earn at the rate of per cent on its
large amount of outstanding stock is an en-
couraging indication that. despite the general
reaction in the countrys industries. business
has by no means reached the stage that fore
shadows widespread bankruptcy People who
take the trouble 10 read the signs OF the times
find many reasons for the belief that the worst
period in the current wave Of depression Is
thing of the past. and those who willing to
place their faith in the probability of big crops
and the election of Mr. Taft will find ample ar
gument for optimism the future. There is
none of that dangerous uneasiness in financial
quarters that tends to induce liquidation of
securities, and operators who working on
the theory that current business conditions.
which are due to factors of other days, ulti-
mateIy will drive holders of securities into
liquidation will make big mistake If they
back their opinion with their money. One of
the best features of the current situation is the
confident sentiment over the future found in
investment and business circles. Confidence is
a mighty strong element underlying prosperity
Advice to sell stocks at this juncture ought TO
be taken Is invitation to buy good issues on
all declines.