Evening star., 1909-06-27
SLUMPS AND RALLIES
vaciIIating Prices Mark the
Weeks Transactions.
REGULAR READING FURRY
Stock Market Game Played With
Bold Skill.
STEEL OUTLOOK IS ROSEATE
Railways Felicitous Over the Crop
Outlook-Third Avenue Stock
Sore Spot.
REGULAR READING FURRY
STEEL OUTLOOK IS R0SEATE
Special Correspondence of The Star.


NEW YORK, June 20. 1909
Professional Wall street throughout the
week has suffered from several mild at
tacks of midsummer madness Slumps
and rallies have followed one another with
bewildering speed. At the very opening
of the week the bears indulged in one
of their periodical assassinations of E. H.
Harriman-but that perverse individual
just refuses to die and goes right on
with the financial operations the same as
If he was the most robust giant extant.
At the week end the Hartman stocks
took commanding upward leadership. A
startling rise of a dozen points or more
in Union Pacific preferred rudely shocked
the bears. A per cent dividend
payer cannot enjoy such an advance
merely on it's dividend basis.
The assumption is that the long-expect-
ed plan of segregation of Union Pacific
assets approaches fruition OF course it
is a matter of common knowledge that
the present dividends on all the Harri-
| man properties but family reflect earn
ings and accumulated surplus. and when
ever the final settlement is reached there
can be nothing but benefit to Union
Pacific shareholders. Meantime, the bear
party, whenever it gets short of Harri-
| man stocks, finds itself brought up with
1! fOunQ turn. AS q machine LOT IHllhlIS
| the short interest there has never been
anything comparable to the Hartman
outfit.
| There have been the customary antics
| In Reading. An early drop during the
week of about ten points was followed
| by recovery of more than half the de-
| cline. For neither movement was there
any vestige of rational reason. 1t was.
| as usual in Reading, a mere stock market
game played with bold skill. Actual
u 4. <P ID Il oil yfC Nf flIn
or otherwise, in following Readings will
| o'-the-wisp movements. The whole ques-
ton in Reading depends upon the value
| of its assets and 1t is commonly believed
| sjderabiy higher than any quotation yet
established for the stock
Steel Star Performer.
Another star performer is United States
Steel. Early in the week 1t was sold
down about six points from it's recent
high quotation on reiterated stories that
the much advertised Paris listing had
fallen through. From the low point es-
| tablshed it has sharply rallied, indi-
eating that these stories are not au-
thentic. Certainly it does not seem
credible that a house Of the worldwide
! reputation of j. P. Morgan & Co. would
announce SO important matter as the
Paris listing of Steel is simply due to
| the unWinding of red tape, which IN
| France is more generously used than
anywhere else in the world. French of
| ficialism is a fearful and wonderful mys-
terry, but even that has it's limits. AS for
| the steel business proper, 1t develops abb
soluteiy astonishing recuperatfon. Re-
suits for the month of June show much
greater progress than was anticipated by
the most optimistic forecast.
Orders for steel rails are being received
| in large volume, and orders for all other
cfa hat two q
| have been held back until the last mo-
ment in the hope of a break in the prices
of steel products No break comes 1t
seems certain that the steel business is
entering upon a new boom period-one
that bids fair to surpass in extent and
duration any previous record. And 1t
must be borne in mind in any candid
| consideration of the market position of
Steel common that this stock is the ulti-
mate heir of all the increased profits
| that will inure by reason of the building
of the Gary plant and the extension of
the Duluth and Pittsburg plants. because
the records prove that plants in existence
prior to these later extensions earned
revenues more than sufficient to provide
for all fixed charges, interest on bonds,
preferred dividends and ample betterment
allowances. Hence any new increase of
1 revenue must at some time be distributed
| to common stockholders.
| There is general and well founded ex-
pecta that the dividend on Steel COM
mon will be restored to a 4 per cent
basis before the end of the year. 1t
| would be really a conservative rate, and
1t is certain that Morgan companies re-
ceive proper treatment from Morgan man.
\ agement.
Amalgamation Of Iron Interests.
| Bearing to some extent on United States
Steel Corporation matters is the informa-
ton which am enabled. upon authority,
1 hot r,lon
| the amaIgamation of outside iron COM
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