New-York tribune., 1910-02-20
ALLAWAY'S REVIEW

IN quiet and orderly fashion the ras--
ket has this week broadened and
strengthened-no important stock furth-
er decuning--a long list advancing ma
terialiy And what this would saArn
with claarness TO show Is that conA-
denee returns, liquidation ceases.
OF special consequence is the continued
investment buying from abroad En-
ropsan capital seized the opportunity
afforded by Wall Street hyster.a n
accumulate large quantities Of dividend
paving stocks. Il is. OF course. SELF
evident that American railroad and IN
dnstriaI shares Of first class character
are selling on basis which combines
safety Of capital and largsness Of fn-
come Weld to q degree unobtainanIa
anywhere else. with money all over ths
world lending on the cheapest basis. :.
is inevitable that capital must turn n
such securities as are daily going a.
bargain prices on the New York Stock
Exchange CIamor against corporations
exaggera ton Of possible political infr-
ences. agitation Of every kind fonrssd
bv the bear party. cannot subtract ons
dollar from the real value of any raliroaa
or Industrial stock Quotations can bT
rnanipuIation be temporarily lowered.
h11+ -nust-naturally-T 70 a frt
laveI--and that is precisely the process
now going on. The foreign buying aotsd
is well seconded py investors N our own
country-notably by the smaller cavi-
taigts-as revealed By the maintained
ACTIVITY of "odd-lot" houses. And this
species Of buying eysrts lasting. sas-
tanning effect. removing IN the aggregate
a large volume Of stocks from Jhs
floating" supply.
United States Steel continues e hs
dominant, narketvise. Some Other
stocks lust now are having wider fGctu-
stfons. but Steel, both in volume Of
transactions and in stsadiness OF upward
movement, is beyond question the mar
ket leader. II is impossible 10 dismiss
steel from consideration in reviewing
current security market conditions The
widespread influence il exerts is felt in
every depsrtment Of commerce. and
finance. That Steel trade conditions
continue 20 be more than excellent
means that general conditions are 81
The same character. The outlook for ths
Steel Corporation for 1910 is that Of a
record year, which nothing but uufore
seeabIA disaster can interrupt From
7ust the revenue point Of view TIE pres
ent ) per cent yield on Steel common 10
a strong attraction TO investors-for in
vestors well know that the Corporarlon
all zr.+
r11frenents sinking funds and ample Al
Ioyancss for betternents. at least three
times as much money applIcabIs 10 con-
mon stock dividends as II Is now ds
barsing. Clearly dividend increase mEt
come before long. And steel coInac
stock holders know-have learned tnrouH
actuaI inspiriting experience-rhat tar
ran reIy- upon faithful administrator Of
that PROPERTY Of course. the eject or
increasing dividends is certain 20 De re-
facted in the market price o. the COM
mon shares-that matter VIII adJust II
self autonr atically- ReatZauon or tnese
conditions is inducing absorption ef
steel common by foreign and home IN
vestors Manipulative drives against tns
stock are welcomed as vantage points
for buyers
One characteristic of the market
hardly to be regarded as encouraging IS
suggested by the fact that 50 large
proportion of activity continues centered
in about half a dozen stocks Union
Pacific, Reading and Rock Island are
all stocks Of intrinsic value beyond ~nar
is denoted in market quotations; our II
hardly inspires popular confidence IN 'hs
naturalness of a. market 20 ind lusI
little group Of stocks monopoilzlns
Stock Exchange activity, Out OF these
stocks, and such others as have had ex-
ceptional conspicUousness during the
week. q long abiding short interest mas
been driven, with record Of much spec
rIative sacrifice. For example, IN eha
prominent commission house yeSGerdsy
there was discussion Of 4 change IN
single customers account, representing
the conversion Of s75o.o0o bear pro1's
into j $50 900 Ioss-this in the uPturn
of barely a week
Yet, what observers sre impressed O.
is that there continues to be IN lars7
majority bear sentiment among wan
street professionals. They sold s1s9Ss
freely ar virtua1Iy top-notch prices an"
pfled I'D tremendous paper prorts " :
Il,sh: but they who were short OF Ste7'
common at 90 were still more EXTENSIVE
Tv short around IS, and SO IN Read1iS
tbs biggest short commitments we're ;
fhe botfor,-undsr $50, Immediately PR
cadins q twenty point rally. >TN
charges like these are destTucLlVs g
hear hank accounts. however n1uch tHei7
nav be survival OF linguistic pesSlnisnL
\ month and more Of bear earnPais
fs overcome in the rallies OF NSsh
60 Still holds the rule that an Ahle,I
can bear is q gentleman who. u "
graphic language Of Nj Morgan
to go brcke-
Thomas W. Lawson. Though ms 'i+
inaI prophet Of the recent smash, IS S
c,,pvinS the unique position CT haVih.
at1rnA5-, ar the very bottor,-al , 81
Which NJ course. IS translated oy Va!
l,traat into corroboration OF lts long n-
4baorv +re- Lawson Is tfs spec1ia'I'
irtir,ate OF STANDARD Oh
?, o,,r~.r+ security market discussion
r,,,,r, rrlD4 stress is laid upon the .eal
a,oA of trade" situation It IS urdea
able that diminished exports are co!nei
dent with increased imports, oui 'ASi
are especiaI sors for this Inc io>S
EXPORTS IS mainly in foodstUfts n''
cause there IS any shrinAage N -
demand. but because the grown
American demand is rapidly nsarin'
-. r-bar. &c shall orrsuI.,s a ~