New-York tribune., 1908-05-07
FINANCIAL AFFAIRS
STOCKS STILL STRONG.
Manipulation for the 1duance-
Euie's Good Sho7ring-
Money Market.

In respons. to no definite news OF a bullish
sort the stock market yesterday continued 70
display frrnness from the outset, and on
volume of business much larger than on Tues
day nade further general advance, closing
strong and at about the hest prices of the ses-
sion. A recession is overdue, even assuming
that the uncertainties OF the outlook may be
ignored. for the advance has been rapid and
long sustained and has more than discounted
the betterment in general conditions: but 1t may
not be permitted to occur until after the i'm
pertant bond issues impending shall have been
launched. The advance at its present stage IS
pretty obviously the result OF manipulation
which is at length having the effect OF attract
ing some public interest in the market The
railroad list was strong, and Union Pacific, the
leader OF the day in point Of activity, rose TO
new high level on the current movement. touch
ing 1884 Reports that the trunk line roads
had decided upon an increase in freight rates
were among the factors aiding in the advance in
railroad stocks generally. The probable diftl-
Guilty Of making effective such decision, how
ever in the face of declining prices for com
rnodities of all sorts has frequently been noted
IL this column. and large shippers, 1t now ap-
pears are planning to combine in opposition 10
the project. The railroads showing good
results from their efforts to curtail operating
expenses. the latest example being the March
record OF the Erie. which shows a decrease in
gross earnings larger by s265,420 than in Feb
ruary, but a decrease in cost OF operation $685.
6s4 larger than for that month. the result being
that the decrease in net earnings sSS.245
less than for the month of February-a demon
stration of econonizing which may be related 70
the active influence now presumably exercised in
the property by Mr. Hartman.
The details Of the Union Pacific bond Offering
may be announced to-day. following the direc-
tors meeting, and the announcement will prob
ably include notice that considerable part of
the securities to be issued at this time are 10
be placed in Europe. The Southern Pacihc Is
also reported to be preparing TO do some fnanc-
Ing and large proportion OF the loan which Il
may bring will doubtless also be offered
abroad. The possibility Of railroads obtaining
funds through the sale of long term low inter
est bearing bonds as exempifed by the success
of the Pennsylvania loan and the general agree
rnent that the Union Pacific loan will be readily
absorbed, has naturally helped much in the res
1oration of confidence and is already having
stimulating influence industry, as is seen in
the orders which within the last few days have
been received by the American Locomotive Com
pany The steel companies, however, do not ap-
pear yet to have felt the benefit OF this easier
money position Of the railroads. which II may be
are holding off from ordering steel rails in
quantity until il shall be determined whether or
not price concessions are to be granted them.
The mig iron manufacturers are to meet to-day
in this city to discuss again and take final action
on the question Of price reduction. and if they
shall decide to lower their prices the steel man
ufacturers are expected to follow the same
course.
The money market continues extremely easy,
and the recent slight increase in the inquiry Tor
time funds has subsided. The banks thus far
this week have gained about S1,50O0O0 on Sub
Treasury operations, and with the suspension Of
the gold shipments the cash gain OF the banks
from the interior is likely TO result in good
statement on Saturday, although the with
drawsIs OF government deposits may operate to
lessen the surplus reserve to some extent.