The Birmingham age-herald., 1909-05-30
Security Market Continues in
 Narrow Range
THE INDUSTRIAL SITUATION
Grows Better and Better Every Day. Hartman and Hill Seem To Have Buried the Hatchet and
 Will Pull Together.
Rv W. c. NICHOLAS.

NEW OThB AaY z5-lne SecuflIN ket continues to move within a narrow range. while speculation does not broad en. Professional transactions are en- tirely responsible for the small up and down fluctuations which are the order of tile day. At the close of the week dull ness was still further caused by the ap- proach of a triple holiday. But it must be said that underlying strength contin- ues to govern market movements. Basic facts are so strong that it seems idle to expect any sensational results from bear raiding. The crop situation Is satisfac- tory enough from either the point of view of yield or grain prices.
 The industrial situation grows better and better every day. In the commercial world, if responsible agencies are to be trusted, there Is very general recupera- ton going on. The situation seems safe enough for the investor and the investor Is no doubt taking advantage of it.
 Commission houses report heavy trans actions in small cash lots and say that they are shipping out of town a much larger quantity of transferred certificates than usual at this time of the year Why the public stays away from the specula tive game is a Wall street conundrum. 1t may be a case of the burnt child dreading the fire, or it may be that out side ventures, such as those in real es tate and wheat, command speculative at tention. Be that as 1t may, the public does not come to swell the coffers of commission brokers, and the game Is left entirely in professional hands This situ- ation, while doleful for the broker, is by no means without it's advantages. There
 is no horde of small spectators subject to call for margin on any point or two -,-f,. sA l.. Hrrtth f1,z most energetic bear tactics, to create anything remotely resembling scare.
 Old-time observers say that this state Of affairs cannot continue-that if prices hold go up a little more, the public is sure to appear. Judging from the past records, this would seem to be the natu ral human nature course. Certainly ad vices are going out every night from house after house of standing and repute urging former customers to re-enter the speculative arena, and certainly the col umns of the daily press are crowded with developing facts which warrant good deal of enthusiasm on the bull side. But real bull market is quite impossi- ble without public participation.
 A striking development of the time is the return to the community of Inter- est idea. Balmy peace reigns among the lords of finance. Animosities are forgot ten, wrongs forgiven, the hatchet buried. Or, at least, so they say. MT, Hartman and Mir Hill get together in charming love feast, ending a war of years. Per haps. The immediate published result is
 that Union Pacific and Northern Pacific are to use jointly the 150 miles of North ern Pacific trackage between South Da- kota and Vancouver, and the bridges over the Columbia river are to be used jointly.
 This sounds insignificant enough in it. self but is taken as a sign that warfare is ended-that there will be no more compet- tive building in the northwest. MT. Harr- man sails for Europe on June l. apparent ly with all squabbles pacified and ready to perform a gigantic borrowing act in Paris and London. Well, they have the money there and will no doubt be glad to lend it to him at a due profit Mean while the willy Mir. Hartman may be ex- pected to show his foreign friends pretty good quotations in New York for his Union and Southerin Pacific pets.
 Further testimony to Halcyon harmony is the election of J. P. Morgan Jr., to succeed the late H. H. Rogers as a di- rector and member of the finance com mittee of the United States Steel cor poraton. This is taken to mean, prob ably with justice, that the Standard Oil and Morgan interests are pulling together It seems certa.--~that the Morgan people have largely increased their holdings of United States Steel common, and at an average considerably below prevailing prices, which, by the way, are the highest ever scored for the stock.
 It Is getting to be the daily programme to make new high record for Steel common. Professional Wall street has not taken kindly to this and has amused itself right along by going short of Steel common on every advance. Up to date this has been a sadly losing game for the traders. In fact theye seems to be real merit In the position of Steel com mon. As before pointed out in this review the stock must be the ultimate heir of all profits over and above those needed to defray fixed charges and preferred div idends.
 With a fairly liberal return of pros perity in the steel business net earnings must soon vastly exceed requirements for fixed charges and preferred dividen1s There are pretty good rumors ,emnating mon will get back aQtio. wS----J from inside circles that Steel common will get back to a 4 per cent dividend basis before the year is over, or early next year.
 Reading acts capriciously-up and down in really bewildering fashion hut still maintaining pretty high level. One story has 1t that IT. c. Prick has been selling his holdings because he couldn't induce his fellow directors to increase Readiua's dividend. a story to he taken with many grains Of salt. Reading is strongly and closely held and it would be quite posei- hle for the insiders without great ef- fort to rush it up sharply The tempta- tion to do so may arise if the traders insist on keeping short of the stock
 Railroads are playing second fiddle to industrals just now. The street is full of tins to buy Amalgamated. Anaconda Shelters Locomotive. Colorado Fuel and Iron. Railway Steel Spring and National Lead That any or all of these can advance goes without saving. but pru- dence would dictate waiting for further developments before Hing Tn on merely blind tips. National Lead. however, is an exceptionally safe thing to buy There are neople operating in Colorado Fuel and Iron and International Steel Pump with strong fnanoial backing behind it a good deal of talx-and talk all ono way. upward - include D'stil'evs' soeurlties, American Malt Corn Products and Ameri- 1 can Beet Sugar.
 It is freely and openly stated by Erie insiders that Erie stocks are going to he | given whir1 whenever the present mar | ket inertia comes to an end. If ray go | happen: but pulling Erie has been urixotic performance for some time It | will take good deal of general huov- ancy to enable Its water-ogged securi- | ties to lift their heads above the waves. |
 Has Hartman got Wabash? Such is | the tale Knhne-Loeb & Co. have | been buying Wabash stocks freely and It | is said that they, or some one ese. has | f.~ .1t1t II .xft 1,e