New-York tribune., 1908-06-02
FINANCIAL AFFAIRS
SHARP STOCK ADVANCES.
Union Pacific Gains More than S'r
Points-Heauy CoUerang By Shorts.

Active and aggressive operations on the part
of the interests who were behind the recent Dun
movement in securities were responsible 1or tfe
sensational advances in the leading speculative
issues in Yesterdays stock market, and the up
ward movement in these shares caused nasty
retreat among the shorts throughout tne us"
the result OF which was higher quotations III
practically all securities. Evidence of manlpu-
lation of the most fragrant character was found
in the operations of the bull leaders And thls
roaninulation was in the interest of people who
have substantial financial backing and VINO con-
Quoted their campaign along such wen ereaseu
lines that no slips occurred in the hve hours oI
trading final prices being at or near the pest
figures of the day, with the chief Improvement
in the active list in Union Paclhc, northern
Pacific St Paul Amalgamated Copper and Great
Northern. Union Pacific gained SIS on trahsac-
lions amounting to more than 2s9,e00 snares' the
movement bringing forth the report that the
company had made arrangements 10 hoat It's
recently authorized bonds. 1t was learned d1ter
the close. Of business that arrangements had
been made to place this issue at a price con-
sidered attractive by the company, and the 1act
that buying of Union Pacific stock IN the day
came from some of the strongest houses IN the
Street naturally strengthened the impression
that the Hartman road was in remarkably
favorable financial position and that its common
stock was on a quick way toward 160 the level
named for il in last weeks market gossip. Ad-
yancins prices that were started by heavy pur-
chases by powerful houses followed active buy
ing of American securities in the London mar
ket for New York account, and were accom-
panied by word from board members to their
firms that the reported Improvement in business
and the passage of the Vreeland bill were en-
couraging the bidding up process 10 an extent
that ought attract public following Inc
public however was not much of factor in the
dealings Business was poorly distributed the
heaviest transactions being in those stocks in
which a large short interest existed and in
which the machinery of manipulation was run
at high pressure Total dealings amounted 20
e4244s shares of which thirds represented
the operations in nine stocks, Union Pacific,
Reading United States Steel and Northern Pa
cifc being the leaders. People who were bull
tshly inclined advanced the theory that with the
Vreeland bill in force bull speculation could be
continued indefinitely, that measure would
provide enough money for a SPECTATORS orgy.
spectators bull orgy will end in a mighty
bad headache.
Earnings of the Pennsylvania, Railroad furnish
Trustworthy indication of the state of the
country'e trade, and the heavy falling of in the
company's traffic for the month of April there
fore presents telling record Of the great con-
traction that has taken place in the nations in
dustries II should be borne in mind however.
that comparison Of earnings is made with a
period in 1907 when railroad business at the
top notch. and it also should be recalled that
since April there has been some improvement in
trade centres, especially in the iron Industry.
On its lines east of Pittsburg the Pennsylvania
showed a reduction in gross returns in April Of
s2s4s 500 and total for the entire system with
the exception of some of the smaller divisions,
of 81 4o2.loo while in net there was total de-
crease Of 81, ,44s,4Go. The Pennsylvanias lines
cover one of the most productive sections of the
country and they draw traffic from roads that
handle the shipments of large manufacturing
and agricultural centres. Earnings a
ouence present heavy decreases in times of de-
preston and big gains in periods of prosperity.
but the company, though lowering dividends
when conditions suggest such action. has in the
worst of years made fair returns TO stockhold-
ers The earning power of this road will be
largely increased through the expenditures it
has been making in the last few years and
which il will continue TO make for some time
to come. while the same thing may be said OF
all the other great railroad systems which are
now though times called hard. borrowing
money for the work of extensions and general
improvements. Erie shows depressing earn
ings but some substantial interests buying
the Erie shares In the confident expectation Of
better things for this company in the future.
especially as Mr.. Hartman, who, despite What
his critics may say about him, is recognized by
friend and foe good builder of railroads. is
now of the chief interests in the manage
lnent Of the Erie company.
German monetary conditions were UNCHANGED
Yesterday but rates at other important European
financial centres were easy and the foreign mar
kets appeared disposed TO cut loose from the in
1uence OF the Berlin situation. More gold was
taken here fcT shipment abroad Total en-
gagemerts on the current movement amount TO
more than t3s 100000 and IL is possible the out
ward now Of the metal viii run to s5o. .o0e, ,000