Evening star., 1909-06-20

themselves to recognition. And this STU
alton is coincident with the existence OF
a plethora of available funds at extreme
ly easy interest rates. 1t is not likely THAI
the crop movement this year will to any
extent deplete the resources of the New
York banks but should any emergency
arise the operations of the law permitting
the issuance Of currency against the de-
posit of securities at the discretion or the
Secretary of the Treasury would speedily
right the financial situation.
Concerning individual stocks, there
would seem to be warrant in buying Steel
common around it's present range. The
steel corporation is now operating 81 per
cent of its full plant. with every proba-
bility that the remaining 10 per cent will
be in operation by next fall. Steel prices
are well maintained, and profits this year
will come very close to breaking all pre-
vious records. 1t does not seem probable
that Steel common can much longer re-
main on the nominal per cent dividend
basis. Four per cent in the near future
is pretty nearly assured. As for the Har-
riman stocks. they are under the guidance
of the most skllful railroad magnate and
market manipulation that this country has
ever known
Support to the Market.
1t is inconceivable that Mr.. Hartman
and his associates would fail to give eff
cient support to the market for their Sc
curities should any forcible bear attack
be made upon them. In . smaller way
the same thing is true Of the stocks un-
der the mastery of Edwin Hawley. And
so on through the list. Even the Gould
properties may be expected to find sup
port in times of stress.
Wall street does not particularly like
the recommendations of President Taft
for a tax on corporation earnings. 1t
looks too much like new but sequential
following out of the Roosevelt policies.
Still there are two sides to this question.
If the government is going to raise revenue
from corporation incomes ii could not
with very good grace WELD the blud-
geon against those corporations. Indeed,
such action would seem to constitute
qlasi-partnership. This is point OF view
taken by a great many long-headed Wall
street men. But, of course. any discus
sion of this character has an immediate
unsettling influence in the market. On
the whole, we are likely to see continu-
alton of market hesitation, accompanied
by more or less severe scalping move
ments in either direction.
Vulcan DEFINING Is a small Industrial
stock which is attracting attention. The
company has passed through panic times
with credit. 1t Is doing a good business
a business which is increasing month by
month, and which promises before long
to warrant the payment of all bank divl-
dends on the cumulative preferred stock
and leave a balance applicable to conf
mon dividends The common stock is
just now selling anywhere between Is
and 20. Should the market turn really
bullish Vulcan DEFINING common could
easily move up to twice its present price
The Wabash shares, particularly the
preferred, show great strength. The
stories concerning them are full or pic
turesqueness. Some authorities point out
how valuable Wabash would be to Cana
dian Pacific Others locate final owner
ship in Lackawanna. But whatever
Wabash's destination. it is a fact that Its
earnings and strategical position warrant
very much higher quotations than pre-
vail for both the common and preferred
stocks
Meantime the prudent investor or spec
ulator Will watch the market closely
will not embark in new ventures except
upon favorable opportunity-by~ which is
meant those weak spots brought about by
hurrah Wall street bear
selling.