The Washington herald., 1909-02-12
MARKET HOLDS FIRM
Lack of Activity Fails to
Cause Break in Prices.
UNION PACIFIC SCORES GAIN
Underlying strength Of situation
More Plainly shown than at Any
Time This week-Sentimea in Lon
don Financial Circles improved.
louisville and Nashville Strong.

New York. Feb. 1.-THE underlying
strength which has characterized the
stock market All through the present
week was more plainly exhibited to-day
than al any previous time In the period.
even if there was no particular Increase
in the general market activity.
Attention has heretofore been directed
10 the fact that an Improvement in fnan-
ciaI conditions in London. accompanied
also with a decided ehage for the better
In the entire European political situa-
ton. has resulted IN creating much more
optimistic sentiment in the British CAPT
tai regarding financial concerns.
A rise has gone on all through the week
IN consoIs and investment securities in
London, and latterly orders have been
cabled here each day in increasing guam
titles for the purchase Of American securi-
ties. II is estimated that since Monday
there has besn bought mere for English
account over 500 shares OF the standard
railway and industrial stocks. and al
though these purchases have not as yet
been such as 10 exercise any apprecisble
effect upon the sterling exchange mar
ket. they have been a distinct help TO the
general situation.
Il is conceded by ali observers that
foreign liquidation Of our securities has
been pronounced in the course Of the up
ward movement in prices that has gone
on here for more than a year past. and
that all probabilities favor the fact that
foreign holdings Of our stocks and bonds
are less now than in many years. The
significance. therefore. Of indications OF
what seemed to be the beginning Of a
foreign buying movement Of our stocks is
apparent.
Union Pacific a Feature.
In the home news the most inspiring
development Of the day. al least from
a speculative point Of view. was the
deduction Immediately drawn this morn
ing from the report Of operations for the
last FIVE months. made yesterday to the
authorities OF the stock exchange by the
Union Pacific Railroad Company, &C
companying the application Of the com
psny TO list SSe.e8ooo first lien and re-
funding bonds
These calculations rendered II clear that
the Union Pacific had earned. in the
period described. considerably over 81 Per
cent on its common stock, or the eouiva-
lent Of over 3 Per cent for the year
Allowing for the fact that the first half
OF the fiscal year is the better one. the
figures make II seem likely that the Union
Pacific's net earnings for the year as
whole would be equivalent to A e per
cent distribution upon IFS common shares.
This. OF course. caused a quick advance
in Union Pacific common stock, the rise
naturally stimulating the general market.
Especial strength, however. developed
during the day in the Louisville and
Nashville and atlantic Coat Line shares.
This was doubtless due 20 the improve
ment n the matter OF operating condi-
tons which all the Southern railways
seem TO have made in recent months. and
relatively vigorous buying was again
ucticed in the Chesapeake and Ohio and
one or Two other special stocks.