New-York tribune., 1909-05-28
FINANCIAL AFFAIRS
STOCK PRICES RISE.
Trading Light and Chiefly for Pro
fesSionaI AccOunt-MOney
Rates EQSU.

On a light volume Of business stock market
values recovered the losses suffered in the pre-
ceding day, closing at net gains in the greater
number Of shares. with especial strength in the
anthracite group the Wabash issues. st. Louis
Southwestern preferred, Reading. Union Pacific
and United States Steel common The last
named stock was bought by foreign houses. but
the general London inquiry was an unimportant
factor !n the days operations. AS rule prices
were higher at the opening and gathered
strength throughout the chief part of the five
hours of trading, final figures being near the
best. The character of speculation appeared 10
indicate that the transactions for lower values
that marked the earlier days of the week had
run their course. though there nothing in
the dealings indicating any increase in interest
on the part Of the public. active buying by
substantial spectators for the rise, large per
centage Of the business representing covering by
the shorts The advance in the coalers and the
recent relatively small declines in the general
list in the face Of active efforts to bring about
materially cheaper quotations were factors en-
couraging bullish sentiment among traders. while
the reports Of increasing railroad earnings ana
the indications Of steady expansion in orders
received by the steel companies. together with
continued ease in the money market, also helped
to discourage the idea that anything more than
passing declines is possible in the current mar
l1et without the development OF some disturbing
influence Strength in Wabash brought forth
the old story about Wabash-Lackawanna deal.
and while the movement was not accompanied
by official news regarding the Wabash prop
erty the character Of the buying in the com
pany's bonds convinced the speculative COM
munty that at no remote time announcements
favorable to the security holders will be made
The LAckawanna could use with great profit
the Wabash, and from remarks made yester-
day by a director of the latter there is some
reason TO believe that the matter of control 60
ing TO the Lackawanna has been under discus
sion. United States Steel common, for tho
sixth successive day, made new high record
in the afternoon. while among other prominent
late features We're National Lead preferred, Re-
public Iron and Steel preferred and the local
fractions.
A year ago the financial community was seri-
ously alarmed over the position of the Erie Rail-
road, owing to the poor earnings of the COM
pany and the idea held in some quarters that the
property would be unable to finance its obliga-
tions without the protection of the court through
receivership proceedings. Since that time q
marked change for the better has taken place
in the cornpany's affairs, as reflected in the
nOuncement that ii viii not be necessary TO is
sue the collateral bonds recently approved by
the Public Service Commission. and in the in
creased transportation receipts of recent months.
the April report just received showing a gain il
gross of s374,732 and I'm net a gain of $3.50. .3O7.
ma king ar increase in net in the last ten months
of S3,77I3O9. The road not only is earning It's
interest charges. bat is showing a comfortable
balance for its first preferred stock which at
this time next year should be back ip the
dividend column The price of this stock in
dicates increased confidence in the property. All
the coal roads are doing well, but, as a rule
stock market values have adequately measured
the improvement already recorded and that
which is looked for in the future Readings
. April report shows for all companies of the
system a gain in net of S397, $40 and gain IN
surplus after charges and taxes of S400.0s cur
rent returns fully justifying the idea that the
common stock will be placed upon per cent
basis. which at the present market value of the
cent, which does not appear attractive enough
to induce investment buying. Reading at a
lower quotation would be a good investment
purchase, while the thing may be said Of
many other shares that in the last few months
have been moving under the influence of ag
gressive speculative buying. Speculation at the
moment is made up Of the operations Of the pro-,
fessionaI element, showing indication of a
public demand for stocks and little interest on
the part Of the substantial interests, general
operations being In line with those that usually
precede the development OF an important move
in one direction or the other
Money conditions present Indication OF
activity in The market in the immediate fut-
are. while sterling exchange continues at 4
level that suggests further shipments Of gold.
especially in view Of the flrmer tendency Of
money ct the British capital and the demand
upon that centre for gold for the Continent and
for South America. shipments yesterday from
London to Argentina amounting to more than
! 81 100000 The Bank of England shows in its
weekly return n proportion OF reserve to la
bility of 47.s4 per cent, against 4e5 per cent 4
week ago and bl.S last year. and "A nine-year av-
orage for this period OF 4776. the decline in the
last week being fully reflected III the open money