The Washington times., 1909-07-04
Situation Is in Strong Hand
and Bears Make Very
Little Progress.
PLANS
POSITIVE INFLUENCE
Crop Outlook Encouraging Hard
Coal MelonS-Steel Com
mons Position.

the observer of security conditions in
this market, is the fact that stocks do
not go back far IL they drop a point
or two one day they will recover il the
next II they show sagging DISPOSE
ton one day they are usually given a
quick rise the next morning much of
the loss being made up before the bears
can take advantage of their work in de-
pressing sentiment. Stocks, as a rule.
have not made very much advance, but
they are creeping up slowly, making
small et8gainS. Admittedly they are
still high, but it begins 10 look as if
1t might be wise TO adjust opinions of
values TO a higher basis Moreover
money has found lower level of value
and that which produces interest natu-
rally moves up.
Control Perfect.
The men who control the railroads and
the great industrial combines seem to
have the situation well in hand There
IS nothing within the probabilities that
Is likely to weaken the situation The
public Is not largely interested-not to
such an extent that there would be, in
the event of something untoward hap
penlng, any avalanche of selling orders,
any bleatiug lambs. Moreover, there
has been a larger amount of stock and
bonds tied up in more or less peTma-
nent investments
Mr. Hartman is a resourceful per
sOnality. He is a man of big aims and
ambitions, and Just what schemes he
has on hand at this time will not de
Velops but It is understood that South
ern Pacific Will benefit greatly by his
plans, while Union Pacific seems 10 be
doing well enough 10 warrant it's pres
ent high level and few points more.
With the Vanderbilt alliance or, rather,
complete understanding with the New
York Central, the Northwestern and
by the Nanderbilts, before the coaching
days, there need be no worry about the
position Of Union Pacihc-it viii be
well fed.
This view Of tAe market is not in
tended to presage Sny immediate sharp
upward movement IN stocks, ana yet a
rise is much more probable than fall.
july disbursements were very heavy
they are just beginning to reach their
destination. and time has not sufh
GENTLY elapsed to permit of their re-
investment.
General Situation Good.
The general situation SLOWS not IN
toward-looking features. The Street was
shocked a bit with thu Government
crop report on condition Of cotton a
/ determination IN June is an exception,
the rule being that June is a month for
Improvement and betterlnent. The drop
from 81 per cent 20 ~ per cent gave
the market over haIf-eelit a pound rise
july S the Government will send out
its grain reports, and much depends
on these. It is difficult to believe that
they VIII show anything but excellent
conditions Wheat has matured rapidly,
and the story has been of steady better
ment. Corn has been growing so fast
that the farmers could hear 1t, under
the influence OF this most-to-be-desired
corn weather. Therefore, IT is safe 40
say that crop reports will be encourage
ing.
Congress is working its weary way
through the heated term. The Senate is
within haiIing distance of the end, and
he
Il took - long weeks for the cOnferees
to pull tough to an agreement oii the
Dingley III. How long Will 1t require
TO adjust matters on the Aldrich-Payne
measure? No one knows, but with the
plans Aldrich has made to trade, as evil
denced from some of the high hills IN
his bill. it should not require more shan
the balance Of this month, perhaps not
more than a couple of weeks, to d gest
the matter. It is expected that the
higher duties may restrict exports 10
this country. but the activity in Ameri-
can manufacturing viii increase the i'm
portations of raw materials
Corporation Tax.
The Senate unexpectedly passed the
corporation tax measure in short order
The indications are favorable to the
measure becoming a law in the near
future Z will have no serious effect
on the great railroads and industrial
companies. There are many smaller
concerns that will find IT more or less
serious handicap 1t is not bull argu-
ment, by any means
The nation needs revenue. and needs
IL badly. The Secretary OF the Treas
ury has called for S25,G0,OO0 and Is
likely to repeat these calls on deposit
tories. But the plethora of money IS
sufficient 10 make these drafts ineffec-
tive so far as there is any prOba bility
Of their affecting the money market.
The Western banking institutions have
large sums Of cash with local banks
and on hand. Canadian banks have
milions-said by authorities to be In
the neighborhoOd OF $2OO00O,O00 in this
A number of leading roads have made
known their intention Of putting out
bond issues for betterments. The in
and heavily capitalized. Financial men
are scrutinizing proposed issues Just
about as closely as the public service
board Of New York State, and unless
the title and cause is clean as a whistle
there will be difficulty in finding
market.
Melons Cut and Coming.
The cutting Of the big Lackawanna
dividend was something of a surprise,
although no surprise after all II was
expected, but the Street was surprised
az the size of II. The effect was inn
mediate in all anthracite roads where
the possibility of melons looks encOuT-
aging. Reading felt 1t with good re-
Spouse. Delaware and Hudson respond
ed. Erie felt its effect.
The equipment stocks and the indus
trials generally promise fairly well. a
strike in the l.. s. Steel Corporation s
tin plate mills is about the only indi-
cation of trouble on the map.
Steel shares are near their highest
level They are not likely to go off very
much. The preferred is too closely held
to look for any serious let-down. The
common stock has enormous pOssibili-
ties, almost certainties. as the Tears roll
along, for the corporation will not al
ways be making improvements from
earnings. The surplus earnings belong
10 the common shareholders. and they
are entitled 10 their dividends-not per
cent. but much larger distTibutiOn--aud,
in time, they viii get 1t. 1t requires
an enthusiast, and optimist. a cheerful
thinker. TO grasp the possibilities of
Steel common in the next decade and
thereafter.
OF the immediate future OF the stock
market one must not expect too much.
When the crops are assured and the
Hartman plans mature-when invest
ment purchases are made-it ought TO
act Ia a manner TO satisfy the bulls.
II certainly does not worry the bulls
today Margin calls are not numerous.