The Washington times., 1909-05-09
Revival of Industrial Pros
perity and Scope of Re-
cent Decision Factors.
STEEL PREFERRED A
PROMINENT LEADER
Outlook Is Favorable to Higher
Prices on Many Securities.
Money Easy.

| NEW YORK May 9.-lThe stock mar
ket received an unexpected dose of bull
| medicine on Monday last, 'and the effect
has not worn off, but may be reason
ably effected to work" for some time
| to come. 1t is not often that the bulls
are aided by the Unexpected TIE un-
| expected IS usually the hope of the
/ bears, ard tEe thing TO be dreaded by
| the bulls. 20 one expected that all ad-
verse decision in the nOW-famOus com
modlties clause" case would simply send
the stock Market on an ascending scale
t-tnat Il M0tAd widen in its influence
beyond the coalers and extend 10 the
lndustrials end to all other railroads
that though constitutional" 1t would
I be the very thing wanted by the coal
| roads-the eXliXlr Of life to Wall Street.
| The ticker brigade was pleased TO put
| q double significance on the decision.
| They ltkened it to the annulment of the
| SzSVU,uOO fine, and claimed that II
marked change of public sentiment
| as Wen as judicial opinion from the an
| tagonism to the railroads to their favor
from the crusade against trusts 10
desire to aic in the uplift of business
| prosperity. But Wall street is san
guine, perhaps too much so, and the
| Government at Washington still
| lives, and does not propose to cease its
Efforts to regulate corporations.
Prosperity That Is Real.
From all over the nation the stories
Of returning prosperity are burdening
the wires. From the steel centers comes
the story o higher prices for all prod
ucts, nhe end of price-curting. and the
starting up OF new mills and furnaces.
increased clearings. better railroad
| earnings, and restoration of the times
| OF 1900, with a rapid movement to-
! ward 1907 prosperity.
| Between the two, Wall street found
on a high basis, that 1907 prices are
! here, and all week long the market
| has been seeking higher levesS-gen-
| orally with the industrials leading, but
also on rails here and there, led by
| Reading, G. & o., Southern Pacific, and
| few other stocks Union Pacific was
one o.. the few rails that has not been
inflated in price during the week 1t is
still Under 100.
May Keep 1t Up.
And It doesn't look as if the movement
had ended. Proft-taking was in evil
dence time and again; it is natural that
there should be much transferring of
paper profits to bank accounts.
Then there arc other things that have
pleased the Street. The lead scheduls
in the Senate bill for revision of the
1 tariff is to the liking of capital. It Is
/ an evidence of probably action along the
same lines In connection with iron ore
ana steer products. This helped the in
/ dustrials almost as much as the recov-
/ cry IN business the placing of orders for
large quantities of building shapes,
rails, cars, locomotives. etc, etc.
Crop Uncertainty.
There is Just one uncertainty of i'm
| portance on the horizcn at this time
The crop situation is not en eouraging. A
scarcity OF wheat, with subsequent
shortage in traffic in -four md wheat is
predicted. But the railroads have faced
these conditions time end again. The
versatility of the American farmer is
vastly greater than ever before. If one
crop fails he plants or sOws another,
and between this and that he will do
I his sLare 10 produce the average aggre-
gate I1eIl, too, the latest figures are
more encouraging, the later returns will
/ unquestionably show further improve
ment. the weather is TO the liking Of
the farmer, and for the advancement of
the growing crop.
Industrial Activity.
The Vanderbilt lines have $4,000. 900
and more to spend during the year. The
Lake Shore is putting down its third
and fourth tracks-work on which was
suspended two years ago. Orders are
/ in for 203 passenger cars and for 5,4OO
freight cars-there's the sign of the
! times Idle cars are going into employ
ment rapidly. Other railroad compa-
| do so.
The United, States Steel Corporation
/ is ope 'ating close to 70 per cent of it's
! capacity. the Republic Iron and Steel
/ Company TO 100 per cent Of furnace ca
Dacl;y and IS TO so per cent of finishing
/ capacity; Dackawanna Steel 10 50 per
| cent OF capacity, Jones & I.aughIfn. 30
/ per cent; Maryland Steel Company TO
/ 70. and the Cambria to 20 per cent of ca
/ pacity. The activity in Steel ana iron
| IS attended with revival OF the conner
and smelling industries. with prosperity
/ IN chemicals, In rubber-generally
throughout the industrial field.
Preferred Steel Scarce.
J 1t is within the probabilities that
| stocks will move within a rather narrow
range. but generally in the direction OF
| higher figures-though here and there
| throughout the list the fluctuations viii
/ be more marked The new high range
! on steel preferred. above the 10 mark
! e%-dividend, meaning about 122 with the
! dividend On-has once more directed at
| tention TO the position Of the United
| States Steel Corporation. H. season and
/ cut Ct season It may be expected 10
| earn its per cert dividend on preferred
| stock. Then the inference is that the I
i per cent stock viii be locked away By
! Investors who are satisfied with the
| cividend-that it will 80 to form import
| ant parts of trust fund investments, and
/ VIII be scdrcer on the market, and likely
/ 20 sell higher. Industrials, generally.
/ have had a good rise, but this does not
| mean That they may not go higher.
Hill Shares Should Do Better.
! ST. Paul and the Hill shares should
/ play more prominent part in the rail
| list especially the Hills. They have
/ not risen with the rest Of the list hut
/ are practically where they were with
/ the advent of last December. Illinois
/ Central and New York Central should
do better.
| Money is still easy; loan expansion Is
still going on, and the business recovery
may call for much money that is being
/ used IN the Street. This is the feature
/ that must be watched closely, Traders
/ must also remember that stocks are
] selling on prosperity basis and fur
/ ther gains VIII probably meet more
/ liberal offerings. The public waits for
/ a reaction.
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