New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-05-07
FINANCIAL AFFAIRS
STOCK PRICES HIGHER
So-caIIed SpeciaIties Strong Features
Time Honey Frmer.

e,-oo,-. ,,,ara active throughout the day and
generally strong. especial strength pelhg teoo'u
ed in the so-Called speCialtles, Whlch ilaue i-S"
high prices for the year. and in several cases IS
bee- levels ever known we're reported Bu.l
speculation was more pronounced in TINS group
of securities than in Reading, Union racine anu
other TrOrninent active issues. with the exception
of Ar1algamated Copper. American Smelling ana
the United States Steel shares, which were ma
teriallv helped by the distinct signs OF. lmproN'
rnent in the metal trades. Copper Is hrlhel anu
in better demand. sales OF pig lead are lncIeds-
ing and steel prices are advancing uhdef Il'7
influence of a rapidly growing inquiry Tor mn
ished products. The railroads are buying more
literally Of rails and the tendency among Ile
TRANSFORMATION companies TO make heavier vA
pendit,Ires IS reflected in the railway equlpineNI
shares as we'll as in the steel stocks, American
Locomotive and American Car and toundrF
stocks being among the features OF yesterday
operations American Cotton OIL United states
Rubber shares, Virginia. arollna Chencal ana
Corn Products were bought on better trade con-
dtions Kansas City Southern Denver q Rlo
C,randa and Western Maryland were active
among the low price rails, the last named ao-
vancing net 81 points on buying that was ac-
COMMANDED by favorable rumors regarding IAe
reorga nzation of the property in connection Win
the Wheeling & Lake Erie and the Wabash
Ioittsburg Terminal and the purchase OF ne"
coal lands Wabash issues also were strong.
Union Pacific. while moderately active noNeu
within a range of a point, its relative dullneSs
belief that quiet liquidation was going on IN
+b issue and that the strength in the speclaItles
was due to operations 70 faclltale SeIlhS IL
OTHER parts Of the list. The only indication OF
weakness was found in the local fractions. par
,ic,,larIy in Third Avenue, in which liquidation
.rr,es red To be under way. Bonds were IN good
demand Outside the stock market the chlei
feature of interest 10 Wall Street was tie
further advance in wheat when gave rise u
all sorts Of pessimistic talk regarding western
he situation OF May
according TO government estimates, VIII be
shown in the official crop report to be given Out
to-day.
steel Corporation to earn dividends in times or
ac,Ira denression in the iron and steel industry
q i not surprising that investment operations
in the preferred stock OF the concern are IN
treasing and that purchases are BENG mace py
specuIators on the theory that the issue VIII
move TO a higher range before the end OF the
coming summer. The stock has enjoyed marked
Improvement in the last few weeks, ana Is now
selling at its best price on record, though al
this level it is NOT expensive security as
per cent dividend paying investment 1t no
longer is in the speculative class. II is closely
held for permanent income account the books
Of the corporation showing upward OF slXty-fVe
thousand holders, with no important liquidation
Of accounts as a consequence of the last twelve
months of inactive trade conditions. Since the
organization Of the United States Steel Cor
poration the amount added TO its net liquid
assets is in the neighborhood OF 80 per cent.
while with the completion of the plants al Gary,
Ind the corporations capacity will be once
again as much as il 1T the time II started
business In the last year the corporation
showed a balance equivalent TO IS per cent on
the preferred stock though that year the
worst in the history OF the industry, comparing
with 80 Der cent in 1907. the best year ever
recorded in the trade. All indications point tow
ard gradual Improvement in steel. but even on
the basis of the earnings OF the first quarter the
present year viii show balance equal TO about
Is per cent on the preferred, or per cent on
the common after the deduction IF the regular
Der cent on the preferred, the payment Of which
is now as certain 20 be maintained that
any Ugh grade investment in the market. It
is a rt teyvorthy fact that since the first year Of
the company's organization, including estimated
earnings for the current year. the surplus avail
able for divIa.nds on the common stock has
avera ged about per cent while in that time
dividends have been paid at the rate of per
cent in 1901. : per cent in 1902 49, Per cent
in l9o3 nothing in 1894 and 1905 IL per cent
in 1906, and > per cent up 10 the present time
As the Outlook for expanding earnings is
promising il is now believed that the regular
one-half Of l per cent VIII be declared on the
common at the next quarterly dividend period.
while ultimately higher rate doubtless will be
paid AS the iron and steel industry is a most
important guide TO general business conditions.
the progress Of the United States Steel Corpora