New-York tribune., 1909-09-22
FINANCIAL MARKETS
STOCKS IRREGULAR.
HenJy Break IN Reading and L. P.,
7rih ReC0rCricS at the Close
Money Unchanged.

Securities prices moved under the influence Of
opposing forces on the Stock Exchange, with
changes at the close in favor of the advocates
Of lower level. though in the last hour Of
trading recovery from a sharp break
under way throughout the list of active issues.
Following moderately strong opening the gen
eral tendency in the first hour of trading was IN
the direction Of higher quotations. but before
the volume of selling heavy enough
10 bring about decided declines in most parts
of the list. especial weakness developing
Reading nd Union Pacific, which showed maxi
mum losses of 42s and 312 respectively on opera
tions that represented actual liquidation and
bear pressure The break in Reading came with
the announcement of the declaration Of the usual
dividend Jersey Central stock. and
incident with serious slump I'm Lehigh Valley
shares in the Philadelphia market. Recent buy
ing of Reading has been based on the rumOrs
that the Jersey Central would increase its dv-
dend which of course, would mean a material
addition the income of the Reading its
holdings Of Central stock end the decision of
the directors 70 make no change in the rate
naturally encouraged aggressi-e selling by the
shorts, which in turn compelled a considerable
amount of liquidation of weak bull accounts.
With the completion of the liquidation short
covering developed and the advance i'll the last
hour from the low points recorded was about
fast as the preceding decline. though only
few of the active shares showed net gains.
Pennsylvania. United States Steel common and
Wabash preferred were exceptionally strong
features and ended above Mondays final figures.
The quality of the buying the decline i'm
proved and the reaction strengthened the tech
nical position OF the market. which at the close
Of business on Monday was extremely top
heavy. Wall Street spectators did not like
President Tafts speech 0ealing with The rail
road question. and bear traders in his re-
marks reason for advancing the argument that
the attitude of the administration corporate
matters promised TO become a factor against
higher stock quotations Actual investors
not worrying over the Presidents ideas. Among
the speciaties, Brunswick stock active,
strong feature, buying being based on the COM
pany's brighter prospects and on the large
penditures being made by the government
the harbor of Brunswick Ga. where the COM
pany owns large terminals and other properties.
II railroad earnings ia the South and South
west continue AT their present rate OF increase
in the months TO come holders OF Southern
Railway preferred ana Missouri Pacific stock
doubtless will receive a return their invest
ments in 1910 Both stocks intrinscally
valuable now than they were in 1906. when
each issued paid per cent, and the fact that in
recent months they have been bought quietly by
substantial banking interests may be taken as a
safe indication of the resumption OF dividends
at no remote period. The properties being
rehabilitated financially and physically and
when they fe-enter the dividend class it will be
with the practical surety OF staying there. y
large amount of permanent development work
has been done the Southern Railway lines
i'm the last two wears outside OF capital eXpend-
lures while earnings that formerly were dis
trbuted TO the preferred shareholders have gone
into the property, with the result Of vastly
improved operating efficiency at more eco
nOmical cost and the outlook favOrs traffic
receipts heavy enough 10 continue increased
outlay on the road and the rc-esta bshment of
the preferred stock upon actual investment
level Southern Railway preferred and Missouri
Pacific, which are selling at about the same
market prices, are among the issues that may
he bought Ia hold with the certainty Of future
profits All the Gould shares are far more at
tractive than they two years ago, when tha
Gould interests occupied something Of is0-
lated position I'm the financial community An
important change affecting the Gould roads has
developed in the last year. notably in the case
OF Wabash. which, pointed out in The Trib-
une Yesterday, is now through stock ownership
identified closely with the other large companies
which. through their interest in the Wabash
come into harmonious relations with the Wheel
ing & Lake Erie and the Wabash -Pittsbu-g ter
minal in transportation matters in most inn
pOrtant section OF the country. Railroad earn
ngs Ia all parts of the United States show en-
growth. with reported increase IN
total receipts for August of lO.S per cent
against ~ per cent in July, comparison being
made with the same time year ago.
Money rates remained unchanged yesterday.
with an undertone OF strength which attracted
no attention in stock market circles. The ad-
vance bS the Imperial Bark at Germany IN us
discount rate WAS reflected in SOM what hrmer
level for open market discounts abroad and IN
well informed money circles Il was believed that