The Washington times., 1909-08-29
VALUES ON STOCKS
ARE NOT EXCESSIVE
Actual Improvement in Bust
ness and Industrial Activity
Are Pertinent Facts.
DECLINES DISCOUNT
CHECKMATE OF PLOT
No Reason for Further Effect in
General List-The World
Moves On.

bad enOugh. but with the eAceptOns
of the stocks naturally affected 70 the
largest extent. the net losses were con-
hned 70 two TO four points Union Pa
cihc's net loss was another ten points
and the preferred Eve points And these
figures are about three points better
than the minimum n OF the week
Some Of the stocks that displayed IN
eaeipess did not suffer materially. as IN
the case Of the United States Steel
shares. Smelling, and many Of the IN
dustrials and minor rails.
What Of the future2 Many Of the
most conservative traders on the Street
have considered II wise to advise \
negative position for the present; others
less cautious are expressing a beue1
that the present is a good time TO buy
stocks. The actual investment buyer
looking for regular dividends, ~irrespec-
tive Of probable temporary fluctuations.
need Y little hesitation i~nkbuying at
this time, even in Union Pacific. In
deed. IL is one Of the attractive stocks
on the list, with its twenty points re-
action, TO say nothing OF the enormous
short line now existing In IL ana lis
10 per cent dividend.
The Spectator willing to take his
chances usually decides conditions FOR
himself, and, with proper protection IN
stop-loss orders. will probably 6nd the
market Of the neXt few weeks Offering
ample opportunities for INDUCING. with
chances Tor profit on both sides.
Prices are nHck where LLGN were SIX
weeks ago. The big gains created
through the operation OF bull pools.
through the alleged plans of the Har-
riman roads-plans that the president
had not approved. and which he ON
cialiy denied %instanter on landing In
the United States-and the ~discounting
OF the great crops and splendid bust
ness, have been materially cut Town
The Bull Basis.
Long before late high prices or the
leaders. especially on the Harr1man's
were reached, the market had discount
ed improvements but additional better
ments were accounted for by the part
fact and part theory that values were
due to 60 to a higher basis. in view Of
the increase IN material wealth Of the
country. n because Of the plenttude
Of money which mace even a 81 per
cent investment desirable
More than all else the last stage OF
The upward movement vas accomplished
through the rumoTs concerning the am
algamation OF ali the Hartman lines.
that is OF Union Pacific. Pa
cifc. Salt Lake and San Pedro, North
western, and New York Central-the
TWO latter a probability-into a great
rransContinental system-sO ran the
stOry. retire Union and Southern Pacific
preferred and cut TIE big cash and Sc
cuTity melon that lies over-ripe IN the
Union Pacific treasury.
So strongly was this story ~intrenched
tina the best houses on the Street con-
dnually gave confrmatory suggestions.
Wall Street now thoroughly upder-
stands that Mr.. Hartman came home
70 block the plans of some Of his as
sociates, who proposed 70 overthrow
tie upbuilder's Intentions; that ne made
the vOyag at the expense Of physical
discomfort. 10 cneckmate and that he
himself furnished the stock for the
heavy selling that so severely Jolted
the Union Pacific crowd, incidentally az
faDffnU Nc rest nf the lief
With a sentence-"the surplus will not
be distributed, but VIII Dc used in ex-
tensions, a further Jolt was given TO
n market. as before stated, predicat-
ed on the size. ripeness. and early cut
unS OF the Union Pacific melon.
II is unfortunate hat the ark can
not be divorced from its leader. There
vera some strong attempts in this IL
rection made on Friday and Saturday.
The FOolishness Of It.
Y doesn't seem right that the by-play,
the chicaneTy, and attempted throw
down OF a great upbuilder. should have
any serious effect on stocks like Great
Northern, Northern Pacific, Reading. St
Paul. etc. ad lib. Great Northern and
Northern Pacific are today less than
{ points above where they we're early
in December. 1905. This IS also true. in
y degree. with regard 70 many other
stocks. or a verify the assurance OF
a great harvest and the vast improve.
msnt Of every branch Of business should
warrant even a greater advance in the
stocks mentioned than has occurred
The Eres steel Corporation, with ca
pacity production near at hand. The
equipment stocks with their production
vastly increased, are worth all they are
selling for-on dividends. As TO the fu.
ture Of steel and especially OF Stee
common, he must indeed be near-sight.
ed who caunot look into a time wher.
-~T-ra. 1FTH h0 -wruaHar a.LA.A-U
pared with current hgures-and a pros
perity Ike the present in anyone grea'
industry but reflects the betterment,
elsewhere.
Skyrocketing In August.
Dogdays are not the best OF legiumat,
Etook market operations. Even tn
temptation OF probable profits Is no
sufficient 20 keep many traders IN TIT
city. Summer dullness Is more natural
Blu this market has not been natural
Wall Street has become az expert Il
d~iscountirx as the note teller IA III,
largest bank, much more so than tn.
most noted weather f~orecastsr. wal
Street was d-iscounting the things tia
Mr.. Hartman did not intend 20 do-fo
once the experts we're on the wronl
scent, and the magnate came home.
II is but natural that man should PCS
from the field OF his activities. II ha
been 90 since the days Of Adam Their
came a time when jay Gould. Jim Fiske
W. K Vanderbilt. Roswell Flower, az
other great men in the Street passe'
on. IN tire Hartman. Hi. Rookie
Teller, Morgan, and other magnates o
today musi IN nature follow their preIe
cessors. But while the absence OF IN
guiding hands may have a Temporal
effect. they are not Indispensable.
The nation goes On. The railroad
carry the freight and the passenger
the farmers till the soil-generally wit
magnificent rCsults-business waits 10
no man no more han time does.
II the prices OF rails and Industrial
have been or are preoicated on or
mans iife-on TWO or three-then some
thing Is radically wrong, Tor the, me
who started railroad building. the me
who discovered the use Of steam, an
the results OF many mechanical proc
esses are not here ~today-they hav
passed.
Tt the wise II is not necessary 10 ad
wise caution. This is a big. great na
ton; men CONE and go; panics come an
go; but this 70 not the time FOR
panic