New-York tribune., 1909-06-05
FINANCIAL AFFAIRS
STOCK VALUES HIGHER.
Standard RdiIzcdy Shares and Bonds
in Demand Call Money FiTnoer.

Extreme activity marked the course Of trading
on the Stock Exchange yesterday, total transac-
| tions amounting to 1619.916 shares on move
ment Of values that again showed many sharp
advances, especially in the high grade railway
securities in which heavy buying was reported
There was an excellent demand for Atchlsoh'
St Paul, New York Central Baltimore O. ono
Southern Pacific. Northern Pacific and various
other issues in the railroad group, while among
the industrials further extensive buying was re-
ported in the United States Steel shares. though
the realizing operations in these securities were
large enough to check the advance which was 50
nronounced in Thursdays market Profit taking
was active throughout the list, and in the morn
ing trading one house alone disposed or upward
of 100 600 shares that had been accumulated at
cheaper figures AS rule, however. the volume
Of selling was SO well taken that prices were not
materially affected by the liquidation, the buy
ing for commission house account representing
a substantial increase in public interest on tne
long side Of speculation in all the leading l5-
sues The remarkable activity in the bond de-
partment strengthened traders confidence in tho
theory that the upward course in stocks would
run on untfI checked by higher rates for money
but in conservative circles the extent OF PUBIC
participation in the dealings on margin and the
apparently reckless character Of the operations
bv many large pools and individuals. who are
anxious TO bring about a speculative riot IN
which the public will receive the usual hard
knocks created feeling Of uneasness. though
1T was recognized that the waving of danger
signals doubtless would fail to restrain the
movement under way. In the first hour or trad
ing more than 100000 shares changed hands,
record for activity seldom reported on the ex-
change.
Strength in Atchison- which gave the stock a
maximum gain of As points and net gain of
Az was accompanied by theortzing on the pos
sibiIty of the return of the issue to a per cent
basis AT the next dividend period, an advances
TO that level being considered fully warranted
by current earnings and the company's excellent
prospects for increased traffic in the years TO
come. The Atchison has made an envlable
record in recent years, and has shown its abil-
ity to pay substantial dividends In lean seasons
The road not only is In sound financial position
but its physical condition is better to-day than
at any time in it's history, with the prospect of
being further strengthened by the expenditure OF
large sums Of money on general improvements
And the same thing may be said of all the great
railroads in the country. Union Pacific SOLD ex-
dividend at the opening and recovered tne
amount before the end Of the second hour, Whlle
Southern Pacific made another high record on
an enormous volume Of business its advance De
ing helped by the announcement in this paper
Yesterday of the intention of the directors to re-
tire the preferred stock, OF which more than
$4,000 900 is outstanding, nearly one-ha4r OF
which is held by the Union Pacific In the early
afternoon Baltimore 6. Ohio was heavily bought,
its price advancing to level that made the yield
on the Issue barely per cent while the market
as a whole showed reactionary tendency with
the demand just active enough to absorb the
tremendous volume of realizing. Steel common
failed to make a high record for the first
time in fifteen successive days In the last half
hour most stocks showed renewed strength, with
the closing from to points up in the leading
securities the steel and copper issues and Ches-
peake & Ohio being exceptions at net losses
The Hawey issues have been relatively inactive
in the recent trading, but there was some talk
yesterday Of increased operations in them, es-
peciaIly Chicago & Alton, which is considered
| intrinsically as valuable as Chesapeake & Ohio,
though the latter is selling points higher. Both
stocks pay per cent, with the chances favoring
a per cent basis for Alton in the course OF the
next year. Total operations in stocks yesterday
were the heaviest for any day this year and the
largest since November, 1908
A slightly firmer tendency was reported in tbs
money market yesterday, chiefly as a conse-
Quence of the extreme activity in stock specula-
ton. which was reflected in per cent level
for renewals in the call loans. with high rate
| for the day OF 2 per cent compared with the
| recently prevailing average of 1A per cent
While local bank reserves are large. 1t is con-
| ceivable that continuation of the current ag-
| gressve bull movement on the Stock Exchange
| will be accompanied by expansion in loans
| wide enough to bring about material change in
/ loan quotations. though the possibility Of stiff
/ rates n the summer months appears at the
moment out OF the question. Speculation Is go