New-York tribune., 1909-05-16
The Financial World.

are advances.
Tire cause Of reaction is not hard 10 An, :.
is purely and simply the result of ar ob..t...'
effort by professional traders TO bring abor.
long desired break OF course. unintsrrus,.s
advance in any bull market is inuos.st.
against the nature Of things. Reaction -.
appear intermittently. But upon what 1. 80
professional sentiment" based? Upon po.s,.s
but It's own desire. Not single adverse s...,'
opment comes to light. The crop situst,o- a.
proves-thA industrial situation grows brt1s..-
commercial prosperity expands steadilv-,.,,
tics cease to vex. Outspoken TESTIMONY "a ,,,-
is furnished by such authorities a. vJl,,-
Rockefeller. Judge Gary and Mr.. Frick =, a..
nothing Of lesser host. Indeed prorn..,.-
facts stand out in such clearnsss as % rGo,,
no special erudition to be deciphersd r1e -.
avail then, can be the dolorous chantfnz :.
bear theorists2 Prices may be tsrnporsriIvs -. -
pressed when the professionals summon m -
hCient courage TO commit themselves to ts---
enough short sales. but that such short ssIs~ -.
be covered" prohtaoly is dubious proposjtIo-
Nowhere appears scintilla Of evfdsrca 49,.
there ia any selling OF investment hoIdi1rs -
the contrary, accumulation OF dividend n.s-.s-
stocks goes on with out interruption Cor-r,I,s
sion houses with large public clientele rsns-.
that within the last few weeks the actusl -
ment Of transferred stocks to out-of- tourr -.
toners has been larger than at anv time sI-s.
the panic or 1907. when odd-lOt buv1nu raa~g.S
such huge proportI IONS This means r,,-S'
means that confidence is restored-rnsans ~
the American people are nor fooled by the vsr,-
ings Of pessimism.
Actual analysis OF the weeks marker sbs..
appreciation Of investment opportunity in rsss-
quarters Wherever safe and attractive invsss
r1ent - offered purchasing power Is aku.Sa-.
So long as this disposition continues thsrs -.
be no serious market set back Invesfr,s,f -,
ing Is the security market Foundation stsns-
against 10 no AMOUNT Of short selling esS \,
victorious. Surface rfpples nav wava- ar6 a.
tuate, bur the tide beneath rolls rfzht on 90
dittons must change 70 revolutionary sxtsrs Ss
fore there can he alteration II market chara~rs,
Important Developments are not y7lrssfv .,
he disclosed this wssk through The dfv'ss,s
meeting of the Hartman PaciAcs n sss-,, >,
have been suggested IN London-ths surz.s.i,,
accepted By important banking interest th.-.-
that Union Pacihc's rate IS about % b. advsrrss
-four per cent. still provided bv fuvssf-ss-,
returns ard an additional one psr cent f---
railway operations raising the railway ors-s.
tion provision from six per cent - seven 49,
cent. and thus making The oAfcisl linton Ps-fs.
rate eleven per cent a year IN NA-- Ys-s f,
IS impossible TO obtain corroborarior - 80.
rumor- II IS equally difficult % get orHeisi A.,
Puts 81 II OF course. 10 IS known By evsrybosv
the balance of what current earnings v,srrars
indeed. not eleven Der cent but q twelve a.
cent rate IS what wall Street expec:s-thoIas
the Wall street anti0ipa ton looks f7r tha ~
vance after instead cf before runa 20 T-f-,
Pacific earnings surPsss eighteen per -snt
Much - heard % HIr- Harrfrnan's s~ti,a-t.s q,
many parts - the railway world .v-nat "a srn-
posed IN New YORK Central snaizz-f9r ts4 a.
tire Vanderbilt system. indsed-has relation r,
Hartman plans. And these plans run bsvsps
Vanderbilt lrnIrs-havs particularly - 40 sssf-
tionalIy with the Gould properties Fvpsoisr1v q.
II likely that the Hartman hsnsf VII b soo-
shown IN the affairs OF Wabash-=vsn - =
dominating extent I'm so far as relates 10 yCahssb
interests round about Pir5sburz outir-iEre
forecasts as % Wabsshs future are surs ef
vs-iiCaton
Other interests than thasA iTs-.t@.4 --A -
Hartman commitments snd hartman eians-
interests that have iuoouoarabie t1tsrnatisraf
irp0rt7ncs-ars equally alert ard seusI1v a-tl-.
in current railway expansion Developments Ard
from them may be expected results ~ surp-s.
Ing conssquencs--soo1 IN tniz relation a-.
phasis may Re put uron current statements ~
Mr. James + FjIl in which r. fs reported that
there are Uuu'iStak7bIs evidences II vtissrrssd
Improvement. Nrr. TiII is not too 5ft,r chan
ucleer of optimism lie has - sss tanss-bs
sure Of them-before he talks about tnsrn- Nor
he saws good times are close ahead TIE EfT
stocks hitherto have been IaEEards Gras,
northern and Northern Pacific have 1ot ou~
nein pack them selves but have held hack gaci
parts % the rest of the market Auv fzrgfsla
sign of change IN this quarter win be accspt-
81 ss a sign Of good i1 br01f area Wal
Street loves 20 irnssi0e that there are ~oRsdi-
datiOn and merger TealS impending wherein ths
Hill roads figure One ~ these rzs - 10 with
The future OF the Erie Railroad Rasis FOR sgeh
theOriZlpE rs not readily found It Isl sasisr N
consider the whispered tales Of imuauGi1z @srT-
oinsticn between Erie au5 Deswars and Hus-
son-two railroads and two coal properties 70
become 0ne railroad and one ro7f r0r7ranv.
-f 1r r~-f-
states Steel shares have had 70 stand ths srlrr
NJ the ferCest U,1nipula tior-Seruaf 20 new high
records showing iu attacks by traders who have
evidently hoped 70 force quotations down br
he very cTUdsst ~ raiding processes Actual
acts in the Steel trade ali reveal e,rtfnurs
business expansion Railroads ars placing base
orders fer rails cars ana saufernsnt Nir-r
steel products are ~ active demand But such
.rifiing details do not worry the minds o Wal
Streets astute operators They prefer 70 tsls
y what this or that specuIator IS seing als
'hen rumor has any prominent orsrstcr sal
ng then the rank and fla hasten 20 pour ou,
'hert stock. That they possess ceu-sgs - r.
-ond doubt for repeated d-ubbi1Es a. nor seer
% cool their ardcr But with an thatr week
md hurrah selling Steel common is Het to
,oints below its high record on this r1overss,t-
While bevcnd doubt. the short interest in that
stock has been largely increased this week n
estorS are not selling Srezi-rne calculscns
apltalist who buys Steel corir>on fCr furest
1ent does so for assured dividend Tsvsrus ar
or large opportunity OF capital increase. And
hat that IS appreciates the world over 3 =
'ealed by the transfer books of t1a C'rrora-
ton-ths total number II stockholders 1oN
saching one hundred thousand
As natural sequel to the United states Ssse,
is probable thar we shall see buoyancy -
'arious Independent iron and steel Coaraniss--
'loss- -Shsn1ald sro1E tha soreros-
The copper situation ir,pr~vss ehssrfuliy.
lars@ sales ~ the metal ar@ reported in various
u1rters-consumptior caught VI with prodac