The Washington herald., 1908-05-06
STRENGTHEN MARKET
Cheerful Feeling Partly Due
to India Situation.
WAR SCARE IS NOW ALLAYED
United states steel Preferred shows
Activity, Owing TO View that Big
Trust Is In Better Position Than
Its Smaller RIvaIs-TOrPOr at Noon
day Gives Way to Buoyancy.

New York, May 5-Practically the only
Influential development in the financial
situation to-day was the greater strength
manifested by the foreign markets upon
"a subsistence of apprehensions concerning
the trouble in Great Britain's Indian
possessions which broke out yesterday.
This more cheerful feeling was due largely
to the fact that no unfavorable news
from India was received. and that gen
eral indications were that the armed con-
fiots that had taken place there were
of a minor and inconsequential nature.
and such as involved troubles with rowing
tribes, rather than with any centralized
power
There was, at any rate. an unmistakable
tendency toward recovery not only in
consols and the prices Of the leading
stocks in the London market. but on all
the foreign exchanges; and there was
IN consequence not a little buying back
OF stock sold here yesterday by foreign
SPECTATORS for the decline
BuOyant Buying Follows.
After an advance which ran TO about
a point in the leading shares in the
first hour Of business our own market
became inactive, and was in a state Of
practical torpor until along in the after
noon. when it again became strong. and
closed under the stimulus Of q buoyant
buying which left prices Of the promi-
nent issues at the highest level OF the
day, and at gains that were In most
instances as large as yesterdays decline.
The features of the market in this final
rise were the Union and Southern Pacific
common and United States Steel pre-
TERED shares. Reasons for the buying
or Steel preferred stock which extended
10 greater or less extent 10 the other
steel issues, appeared to be an idea that
the stock has recently been quoted lower
than 1t should as compared with the
other similar shares on the market It
should be said in this relation, too that
talk IN the inner circles of the great iron
ana steel producing concerns is by no
means as pessimistic as a great deal Of
that which is now printed In the news
papers and in financial publications. It
VIII probably be found when the truth is
hnally disclosed that the business of the
United States Steel Corporation. under
ordinary circumstances, is relatively bet
ter than of other organizations in the
iron and steel industry.
Diversity Aids Trust.
It is likely, IN other words. that the So
called independent iron and steel com
panies are not faring as well at present
as is the Steel Corporation. The inde-
pendent companies are largely engaged
in the manufacture of a few specific
sorts Of iron and steel materials which Is
principally steel rails. structural iron,
and the ike. But the output of the Steel
Corporation embraces a vast variety Of
products, and it is well known that IN
many of these lines current business is
not greatly below the normal
As regards the Union Pacific and South
ern Pacific stocks. on a basis Of the re-
cent accumulation Of their shares the
prevalent impression that the great
diminution OF the railway business that
has taken place has been by no means
such as 10 threaten the maintenance Of
the distribution upon these particular
stocks, and that with average crops in
the present year the prospect as to the
continuance of these dividends may be
regarded as reasonably certain.