New-York tribune., 1909-07-30
FINANCIAL MARKETS
y. Y. CENTRAL IN DEMAND
Shorts ActiUe in Couering Contracts
Money Rates Easy.

The average price Of the leading railroad and
Industrial stocks made new high record for the
year yesterday, with the general level at the
best reported since the bull operations of 1905.
The advancing tendency, however. was not ac-
companied by any expansion in the dealings,
except in the last hour. trading being light in
volume in most issues. with the only features
of activity found in the speculation in the Har-
rirnan shares United States Steel. New York
Central Baltimore & Ohio. Reading. Rock
Island, the Southwestern issues. Southern Rail
way and Colorado Fuel and Iron New York
Central enjoyed a maximum gain OF 3 points
but Union Pacific failed 10 equal its record Of
the preceding day. when II sold at 200h, owing
TO the extent Of realizing in the issue. sales 0f
this sort also checking the upward movement in
United States Steel common Pool operations
responsible for some strength in the Wa
bash issues Denver & Rio Grande, the so-called
junior Vanderbilt stocks. Louisville & Nashville
and Atlantic Coast Line the two last named
being helped by the reports of vastly improved
business prospects in the South and by the
probability that the Louisville Nashville.
which is controlled by the Atlantic Coast Line.
would be advanced TO a : per cent dividend
basis The Interborough- Metropolitan shares
bid up the expectation that the forth
coming report of the Interborough Rapid Tran
sit Company would show a substantial surplus
above the per cent dividend on the stock. but
the buying was not at all impressive. The best
buying Of the day probably was in New York
Central Hawley interests were active in Iowa
Central and appeared to be transferring their
ouerations to that stock from Chesapeake &
Ohio, Missouri Pacific and other Southwestern
shares showed some evidence Of incipient ma
nipulation while on a squeeze of the shorts
American Sugar Refining enjoyed a sharp ad-
vance The whole market was decidedly strong
In the last hour. with a marked increase in
transa ctions chiefly for the account of the short
interest Union Pacific closed at 200,
Union Pacific stock at 200 passes into the
per cent investment class but the rank and file
of Wall Street believe that eventually the issue
will sell a much higher level as a conse-
uuence Of the intrinsic worth of the property
represented and the great opportunity the road
has for further material expansion in its earn
ing power There are some observers who hold
the opinion that Union Pacific stock in years TO
come will be as scarce IN the Street as Lacka-
wanna, despite the difference in the capitaliZa-
ton of the two companies, but the promising
future for the security should not be taken as a
guarantee that operators who conduct their
transactions on borrowed money will reap
large financial reward by buying the Hartman
favorite margin under current market con-
ditions It is estimated that the Union Pacific
is earning at the rate Of 10 per cent on It's COM
mon stock while it is receiving from its in
vestments in other companies an amount equal
70 about per cent on the same ISSUE or 26 per
cent at time when the railroad business of
the country is nowhere near a normal basis.
The territory through which the road runs in
the next twenty years should supply enough
the company and in connection with the prob
ability of an increase of this character it is IN
teresting to recall the fact that in the year prior
10 the reorganization of the Union Pacific In
1896 gross earnings were s23179,277, against
SIS 500 O00 estimated in part, for the fiscal pc
riod ended June 80 of the current year, while in
the same time net earnings rose from s7.37O.3S8
to approximately s3SO00.O0O. Since the reor-
ganization charges have increased only about
$3.sss,OCo, while other income has advanced
from slS47946 to upward of s1S.000.000. The
Union Pacific has 100000 bonds outstand-
ing. but against this obligation 1t holds as
free asset securities of other companies of a
market value of $4,000, 900 in excess of the
tire bonded debt Union Pacific doubtless will
become the chief controlling factor in the New
York Central. and there is some TO be-
heve that it is strengthening its hold that
property by the purchase OF its stock with the
proceeds Of the funds realized from its sale OF
its Atchson holdings.
Call money continues 10 rule in the neighbor-
hood of per cent. while time funds are reIa-
lively cheap. 1t viii be some time before the
interior demand will become factor in the local
money market and from the current course of
affairs on the Stock Exchange il is quite evil
dent that the large Wall Street interests will
work in the mean while TO bring about higher
range OF prices for securities. 1t Is a question
however whether not the public will be will
ing buy at the inflated levels proposed At
the moment commission houses report note
worthy absence of demand from outsiders but
the substantial interests apparently are conf
dent that with proper market manipulation un-
der the leadership Of experienced market gen.