The Washington times., 1909-07-18
New High Levels Are Likely
in FavOriteS, Steel and
Union Pacific.
THE AGE OF STEEL
AND EXPECTATIONS
Prices Admittedly High, But Out
look Is CODA Precau-
tionary Signal.

NEW YORK, July le.-It IS q case OF
n broadening market with the elevating
planes lifting steadily and gradually
coming down a bit and then turning VI
for an additional gain. There are two
sides to all arguments. and there are
ample opportunities for the bull and
the bear to discuss the situation with
more or less apparent fact to support
either side In its opinion. The bull can
see nothing to it but the same old
story. He viii admit that prices are
high; that they seem too high, to nave
discounted all improvement in business
the tariff enactment, and the golden
harvest, but having admitted this much
ne viii still contend that It is foolish
TO look for lower prices because the
big men OF the Street, the men who die
tate the policy Of the railroads of the
country and Of the financial markets,
still hold the control of the situation i'm
their grasp, and, having put stocks up,
they are prepared 10 hold them there,
either through developments that we
wot not of or by main force And this
Is the answer TO the bear. The latter
recognizes these conditions TO a certain
extent, because he has found little salts
faction in shOrting the market for the
last eighteen months. unless covering is
quickly undertaken on small recessions.
Recovery Is General.
General prosperity is at a high ebb
Depression is disappearing Idle cars
are finding their way into service, mills
are working on nearly full production.
and the era OF low prices for their prod
uct has passed away. The harvests are
sure 10 be bountiful, wheat, corn, and
All other farm products are maturing in
abundance, and the buying power Of
the American farming community. the
mainstay Of business is sure 10 be
something enormous, considering the
high prices for all products
The sensation Of the week. the prom
Use OF the future has been the accumu-
lauon and advance in the Steel shares
Hartman is still the wizard. Union
Pacific, his pet creation, for he is the
responsible factor In this latter day
Union Pacific, with its millions on mill
lions Of securities Of other roads held
Ior revenue and as feeders OF the big
transeontinental system, is fast APP
preaching the 200 mark It is a few
points away and apparently safely past
the 80, a task that was not easily
accomplished. Southern Pacific IS act
ing well. The plans of the wizard as
20 this property are not public as vet
The past week has been attended BIZ
gains OF % in Union Pacific, 12s in
Southern Pacific
This Improvement has extended 10 a
lesser degree 70 other rails. Reading
made the best advance, 27s, on the COW
ering of shorts and the belief that the
corporation tax viii not affect holding
companies. Hills have acted well. on
good buying Prices are about a point
higher. Illinois Central is not acting
as well as other Harimans, although
IN the month. AtchisOn, Baltimore and
Ohio, Atlantic Coast Line and Louis
Vile and Nashville made progress
toward higher levels, the last named
advancing ( = points on rumOrs of a
further increase in dividend. It is a
faVorlte stock with inVestors-because
of the habit IL has Of rising many points
every little while-really because of its
good earnings.
Minor Rails Slow.
While the rails mentioned have acted
well, the Goulds Southern and South
western lines, other than the Rock
Island. have not made much progf ess
toward higher levels. The Goulds are
disappointing in their action, showing
little sympathy with the rest of the
market. Some comment anent Wabash
is heard on the Street the theory beins
that the road cannot long remain with
the Gould properties The story that
Moore & Reid are absorbing 30 for the
l.ackawanna IS not given as much Gre
oence as the report that IL viii even
tually fly the flag Of Z. II. Hartman
ct al
II would seem as If the leaders could
not continue on the upgrade without
taking the seconds and thirds up part
way, ana Vet study Of the subjOiIed
table showing the movements or the last
week does not indicate any great i'm
prOvement IN the general list Rein
vestment Of July dividend and interest
funds has been going on more freely
than at any time since The first of the
month.
Public Buying.
g- .--fl.-s 41..4 f.-z.-..
Of orders are coming from the public
than at any time for many months,
since the after-panic rise first reached
poodly proportions.
Foreign interests take Il cheerful view
of the American situation. 'The sun
Of prosperity sank iu the west and CON
Irary 10 nature # appears as II il was
going 10 rise In the west again" said
the chancellor Of the British excheouer.
Our English cousins do not Ike the
expansion. but they realize that the
movement has not reached the nrefeu-
lions OF that of 1907. nor are STOCKS held
IN anything Ike the same proportions
protected by smaIi margins margins
that melt before bear raids There is
however a danger from sJop-0rders for
the following that is not impressed with
the bull sentiment and vet is not cam
tious enough 10 be kept out or profits i'm
IolloWIng H. is PROTECTING itself with
That Copper. Smelling, anS other in
dustrials have rallied and -5ov inn
pfovement Is encOuraging-uot is a
dead weight on the advance
The Other Possibility.
OF course there is always the possf-
bilitv Of the unexpected things the true
bear banks on. An injury 90 the crops
business setback, death of a prominent
operator. or anyone Of many things. and
tho list could not hold except bV main
force. The tariff wifi be ont Of the way
tn the near future probably before
another week rolls around. But this
has been discounted-sO nave other good
things. The market waits further bull
news hopefully, and is cheerful
Experience begets wisdom, even if IL
does not always lead 20 IL. Here Is
what Henry CleWs has % say, In clos
ing his weekly letter.
In view Of the present high prices for
stocks the market in The immediate
future viii not be a conserve tive aC-
cunulating one, but profitable for quick
in and out trading, as 80 IS likely 90
soon have infused into II greater activity
in transec tioHs and wide huctua uons,
and thus made a good distributing mar
ket. As the big men have for sale
stocks bought at low prices, the only
way Of disoCsing Of them al high figures
is through an excited market, which
may be expected 30 be soon forthconn-
ing"