Evening star., 1909-06-13
Southern Paciac's Future.

Here again the point to be made against
this Is the belief that Southern Pacific
common Is going Immediately to become
very much more valuable than It Is now.
Here, indeed, is the nub of the whole
matter. Without such possible outcome
the whole proposition would be very un-
attractive. That there Is good deal Of
conflict of opinion 10 evident from the
market nervousness Of Southern Pacific
common, the publication of the plan hav-
ing been hailed by drop Of two or three
points. Coincddent with this Union Pa
cific rises. This is logical. as whatever
read5ustment Of Southern Pacific affairs
is made, Union Pacific's holdings OF
Southern Pacific stock can be counted
upon to benefit. Perhaps OF more i'm
portance than the actual transaction Is
the evidence that SO shrewd a man as
E. H. Hartman believes the situation
sufficiently settled to spring this huge
rinan is now in Paris and all Wall street
waits eagerly to hear Of the doings there
Of the latest Napoleon of finance.
That other prominent market leader.
United States Steel common, shows some
signs of proft taking but not to any
great extent. So far about 3 points from
extreme top is the biggest reaction expe-
rienced. Nothing to be alarmed about.
Conditions in the steel trade continue re-
ma rkably good. Orders are pouring in on
those of the corresponding period a year
ago and June bids fair to keep the pace
up. 1t Is said in well informed circles
that the dividend which came Off Steel
be at the rate of 2 per cent per annum.
Four per cent per annum 10 confidently
looked for at the next declaration. In
Morgan circles IS is predicted for this
stock before very long. No doubt there
is q good deal Of sentimental influence of
favorable character due to the listing on
the Paris bourse.
This certainly opens up a new big mar
ket for the Steel shares-a market hither-
to practically unworked. French buyers
are stayers. They do not sell out on every
little upward or downward fuctuation.
The Morgan people expect to place many
millions OF their Steel stocks Ly means Of
this Paris listing.
general invasion OF Paris stocks upon the
Paris bourse is more than likely. United
States Rubber is already there. It Is un-
derstood that number Of our managing
financiers are taking steps to follow the
Morgan example. i.
Monopoly Of Trading.
Aside from the half dozen big stocks
which have practically monopolized trad-
Ing during the present upward movement
there is really very little doing. Now and
then come occasional spurts in some of
4he low-priced properties. such as Erie,
Rock Island and the Wabashes. but these
movements do not attract much attention
and do not result In any continued rise,
though friends OF such stocks are loudly
predicting that they are going to become
market leaders. Certainly they are the
kind of stocks which always enjoy popu-
lar favor when there Is any of that arti-
Gle lying around. but: to use the old say
ing. Just at present it would be hard to
sell the public twenty-dollar gold pieces
for SO apiece. The fact cannot be blink
cd that the public IL still desperately shy
of Wall street, nor is 1t TO be wondered at
with the experiences Of 1907 still raw.
Curious antics go on in Reading Very
often when the entire market is weak
Reading assertively sails up-often when
the market Is strong Reading smartly
slumps. That something Is going on in
this stock there can be no manner of
doubt. but what 1t is only the closest Of
insiders know. Rumors Of forthcoming
statements meet with no fruition. Read
ing Is still the mystery Of mysteries,
skillful scalper. Until Reading managers
see At to make public disclosures Of the
facts concerning their property the pub
lie should taboo 1t.
Another Financing Scheme
Another big financing scheme looming
up is the much-talked-of Missouri Pacific
reorganization, Involving, SO 1t is said
practical merger OF all tho southwestern
Gould roads-and OF course involving not
too small bond issue. Completion Of
the plan is q good way ahead. and is not
likely to arouse much public enthusia SIN
for the present-if indeed at any time
About the only chance for Missouri Pa
cific stockholders Is to take advantage Of
the next outburst OF public speculation.
whenever that may be. which may carry
up Missouri Pacific along with many an
other cat and dog. George Gould and his
associates must show fruits meet for re-
pentance. before they can expect the pub
lie to become fresh customers OF their en-
graved works OF art.
Stalwart rumors are afioat dealing with
Missouri. Kansas and Texas. Certain
new street oracles are procla inning an
approaching 80 point rise for Kansas and
Texas stock. 1t Is by no means an i'm
possibility, but the gentlemen telling these
stories furnish no proof up to date OF
course, II one wants to speculate bfindly
there Is very little risk In buying Kan
sas and Texas In the forties. 1t has not