Evening star., 1909-06-13
CLOSING TONE STRONG
u. S. Steel the Influential
Factor of Week.
MILLION SHARES IN TRADE
Electric Stocks Feature the Week
End Dealings.
WESTINGHOUSE REPORT A TIP
Jerky and Spasmodic Movements of
Past Six Days Merely Shifting
Of Public Interest.
WESTINGHOUSE REPORT A TIL
Special pisna tch to The Star.

Special Dispatch to The Star.
NEW YORK. June 12.-There appeared
to be in the stock market today some
thing more nearly resembling that for
ward movement In securities which more
generally characterized prices last week
than since that time. There was hardly
any development Of Importance In the
financial news, and the stronger tone Of
the market was. on the face of things
due, as much as anything else, to the
decided impression made upon sentiment
in the financial district by the power OF
absorption manifested by the U. S. Stee
common stock. under the enormous vol.
ume Of liquidation that the stock has
withstood in the last ten days.
In less than this time over 10000
shares of stock have been dealt In. and
there is hardly a commission Office in
Wall street in which profit taking in
the stock has not been indulged in upon
q wide scale.
Nevertheless, the stock has receded
only in a trifiing degree, considering the
extent of its previous rise. and today.
upon purchases that could in no way be
described as large, it moved to quota
ton lower by only "a of a point, making
cent dividend, than its high record level.
The advance. too, was wholly sustained
at the close of the day.
Prospective Earnings a Factor.
The only explanation offered for this
particular movement was the increasing
rush of business that is being experienc-
ed by all the iron and steel companies
and the exceedingly strong prospect that
of no
ration in the present year will be such
as TO make an advance in the dividend
distribution upon its common stock inev-
liable. perhaps. even before the year Is
closed.
Other special features of the market
today were the Chicago and Northwest
ern, General Electric, Westinghouse.
Virginia Carolina Chemical and Wabash
shares and all the local traction stocks.
Statements made by George Westing-
house, upon his return from Europe, re-
garding the improvement in the eectri-
cal business abroad. was the cause. per-
haps. of the buyings of the electrical
The steady accumulation of the Wa
bash stocks that has been visibly going
ON for some time. and for some unknown
reason, was again behind the advance
In this quarter, and the especial pros
perity of the fertilizing industry in the
past year and a half, which still con-
tinues at great rate. was the ostenstble
reason Of the rise in Virginia Carolina
Chemical.
Best Prices of Day at Close.
The market closed generally at the
best prices OF the day. The weekly bank
statement was about of the same sort as
that shown last Saturday, both actual
and average forms of the return show
ing an increase in loans. that. despite
an enlargement of bank cash-which
was. however, less than the preliminary
figures had indicated-resuted in a slight
falling off in the surplus reserve
While the movement of the stock mar
ket taking the week through has been
perhaps more jerky and spasmodic this
week than 1t was during the fortnight be-
fore, still the strength of the market fas
been as unmistakabe as ever, and it may
be questioned whether the fitfulness of
the movement in prices that has been OBJ
served is anything more than a shifting
of public interest for the time being into
the railroad stocks as compared with the
Industrial shares.
1t may almost be said that the market
for q comparatively long time up to the
beginning OF this week has been made up
OF dealings in the United States steel
shares Reasons for an advance in these
stocks We're so obvious, quite aside from
the natural impulse given to an upward
movement in them upon the news of
their listing on the Paris bourse, that a
rise in their price was inevita BILE Since
then the testimony thus given to public
appreciation of the value of these stocks
attracted attention very naturally to other
stocks that have long lain relatively
dormant IN the security market.
Selling Below Parity.
OF many OF these 1t may still be said
truly that they are selling below the
parity established between their dividend
return and the rate that can be obtained
for the use of money in the open market:
and upon the greater number of the
properties represented by these stocks
fhe same process of expenditure out of
earnings upon improvements that has
gone on in the case of the United States
Steel corporation has taken place in re-
cent years.
No doubt, of course, at the moment
speculative activity has moderated some
what by realization that the critical
season of the year regards the crops
fs at hand. and yet every indication is,
so far as has developed, that the years
crops taken as a whole will be highly
satisfactory
Business over the country continues to
expand OF that there is absolutely no
doubt. The wet weather of the present
week. although bad perhaps FOR retail
trade, has been splendid from the point
of view of the farmers: and those who
are looking for clouds in the financial or
business skies are still unable to find
tnything that threatens storm.