New-York tribune., 1909-05-14
FINANCIAL AFFAIRS
HARD COIL STOCKS UP.
General Market Strong, Though
Closing HeaUy-Sterling
Rates Higher.


with net gains in the greater number OF issues
at the close Efforts apparently were made by
some of the larger interests to restrain the ad-
vancing tendency, and outside of the hard coal
shares and few miscellaneous issues the move
rnent met with some success, as beyond show
ing inherent strength the general list did not
present important fluctuations, final changes as
a rule showing only fractional gains. with losses
in some cases as a consequence of afternoon
realizing Reading again the chief specu-
lative feature, advancing on heavy transactions
to a new high record for the year at 1591s, its
gain however. being less than that in the second
preferred which rose To a level II points above
the first preferred, the Improvement aCcentuLt-
ing the belief in the Street that the issue would
be retired by an exchange Of $50 first preferred
and $50 common for 500 second preferred this
basis at prevailing quotations being equivalent
to S125 for the last named stock The ruTnor
that such an operation will be effected finds no
confirmation from official quarters, but the
Street finds in the ticker good reason for the
idea that its conclusions the subject will be
borne out by future developments. Delaware &
Hudson also made high record at 1873, at
which price it would return to buyers AS per
cent. against 5.29 per cent for Union Pacific.
the latter issue being among the limited number
Of railway stocks that yield at present prices
more than per cent Reading at yesterdays
high showed a return Of 2.5, and if the stock
should be placed upon per cent basis, as
generally expected, its return on the basis Of
than 3le per cent The buying of Delaware &
Hudson in the last two days has looked very
much like that in Delaware, Lackawanna &
Western a few weeks ago. The action of Union
Pacific in recent days suggests that the stock is
being held back for the purpose of accumula-
ton prior to an advance to 200, at which figure
il would return per cent. The general market
reacted in the last hour, but declines from the
highest unimportant in the majority of
shares. Local traction and gas issues, Rock
Isl
were prominent strong features in the days op-
erations The Southern Railway Company for
the first week in May shows a gain in gross
earnings Of $1O0S23 over the same time in 1908
Authorities the metal trades report sub
stantial improvement in the demand for pig
iron, steel products and copper, A reflection of
which is presented in the excellent character OF
the current buying in the securities Of the metal
companies. The gain in new business by the
United States Steel Corporation, which controls
so per cent Of the steel industry in this country.
means a marked increase in the concerns earn
ings in the present quarter while the same thing
may be said of the Bethlehem Steel Company.
and all the independent producers Of finished
steel especially prices gradually are tending
toward a higher level. The outlook for the third
and last quarters of the year is extremely prom
Using for all the metal companies; also for the
railway equipment works, which doing
a better business than at any time in many
months. owing to the increased disposition of
the railroads come into the market for new
rolling stock. In the copper trade prices are
much frmer than recently reported. and
sumption is beginning 10 move in a manner
that has removed the uneasiness over the rapid
gain in production since the first of the year,
users Of the metal showing an inclination TO
come into the market not only for current needs.
but for future requirements well a price
basis in the neighborhood of Is cents a pound,
which, II is expected will run above that figure
in the course Of the next few weeks. Stocks
ought TO show heavy decrease In May, as since
the first Of the month sales of copper have been
larger than reported in a similar period in sew
eraI years. II is not unlikely that the United
States Steel Corporation will show at the end
Of 1909 net earnings of upward OF 100000 .00O
which would be equivalent to about per cent
on the common stock, and as there has been
such q material change for the better in the
steel trade. there is now no reason to suppose
that the quarterly dividend of one-half of 1
per cent will be passed at the next dividend
period. as was thought probable earlier in the
year The shares OF the United States Steel
reflect in their market quotations. (
especially the preferred. the best sort of buying
while the sinking fund per cent bonds also in
dicate in their present movement investment alb
sorption IN the Bethlehem Steel 5s. which are
in whole or in part any interest
dav at los and interest. has been In rscent