New-York tribune., 1908-09-02
FINANCIAL AFFAIRS
LIGHT STOCK TRADING.
Prices Shoe Strong Undertone-
Hartman Shares Features.

Stock market values again presented d StloilS
undertone. without material Improvement as
cornared with the preceding day, the Hartman
issues being the chief features OF interest The
current market IS known as Hartman afalr'
and it is proving a difficult proposition for the
advocates of lower prices. though no great ad-
vances in the general list being recorded.
Operators who are quick enough to trade on
fractional declines make occasional profit
on the short side of speculation, but the only
hope of this class Of traders for large success
in the present speculative situation is that
something will turn up in the way OF an
election scare large enough to bring out some
of the closely held long stock. or that nature
will bring on killing early frosts in the corn
belt, which might tend to weaken prices a point
or more. In the Hartman group Southern Pa
cific made a new high record. a performance ii
has been going through nearly every day in the
last fortnight while Illinois Central and even
Erie were advanced. The improvement plans
of the Erie. s set forth in The Tribune yester-
day. which will increase the companys earning
power to a material extent. promise to help the
prices of the Erie securities and it is a note
worthy fact that since Mr Hartman has taken
a personal interest in the road large amount
of Erie stock has gone into strong hands The
general market in the afternoon was moderate
ly strong in most departments though at the
close profit taking sales left last prices a
rule at unimportant changes from Mondays
final figures. Reading was carried above 40,
and Southern Railway showed a firmer tone
than recently reported. The Southern Railways
statement for July presented a substantial in
crease in net earnings, against a large loss in
gross St. Paul, Union Pacific AmaIgamated
Copper, United States Steel. Pennsylvania and
New York Central fractionally under the
closing of the preceding day. Money was easy,
and sterling rates were IL points higher.
AS the Pennsylvania Railroad runs through
productive section of the country and handles
q most diversified freight traffic, its earnings
always of interest, especially in times of
great activity in business and in periods Of in
dustrial depression. The report of the com
pany for July. therefore, will be examined with
particular interest and on its face it may prove
disappointing to many people who have looked
forward to a sudden expansion in industrial
activity following the spring months Of COM
parative idleness. The gross earnings of the
road are well below the results recorded in the
corresponding time a year ago and in 1906 but
with the exception of 1907 and 1906 the months
returns were better than in most similar periods
in the history of the company, and the same
thing may be said of net earnings. Between
June and July last year the road showed a
gain in business to the extent Of S500.0O0 but
even with the recent Improvement in the iron
and steel business few people hoped for any
such results in 1908. Net earnings for the
month showed decrease of SS17, 300 against
a loss in gross of S3,31S,00O on the lines east
Of Pfttsburg directly operated, while on the
lines west of Pittsburg a loss in gross Of ST.
ll.spF
in net. The combined decline in net on the
lines east and west of Pittsburg was 81 12S 600
against a decline in net in June of S62OO0O
the difference rejecting greater expenditures on
maintenance work and belief on the part of
the manag cement that the future outlook for
better business in the months to come war
ranted larger outlay on the property and its
equipment. There is reason for discourage
ment in the showing made by this great rail-
road company, which handled gross business
in the month of July, in spite of hard times of
S16056 1886
Improvement in the market for bonds is shown
in the average increase in the prices of the rep
resentatives issues of 81 per cent in the month
OF August compared with the some time in
1901. which compares with increase in July
or less than " of 1 per cent. a decrease in
June of more than 1 per cent, and a decrease
in February. the poorest month of the year. of
Z per cent. Twenty-Five active issues are sinh
stantany higher than they We're year ago and
only three are materially lower the latter being
Issues which were affected by influences that
mad no bearing upon the general list Bond
houses peneVe the Increased demand noted for
railway mortgage issues in August will continue
in the current month. as there is a large amount
OF money available for investment purnosas
while prices are still at a level that make an
attractive return on the purchase 1t is inter
esting to record the fact that interest due ,,as
terday on the Rock Island consolidated honds
was paid In the usual way notwithstanding re-
company might default these issues AS the
Stock Exchange authorities are now iuvestipat
ing alleged Illicit practices in the stock market
dealings, II is 10 be hoped they will endeavor
to trace the source of the rumors affecting thu
financial position OF the Rock Island company