The Birmingham age-herald., 1911-06-11
STOCKS REACH
 NEW HIGH LEVEL
  Exceptions Do Not Affect General Trend INTEREST IN STEEL Much French Money Is Now Coming Over For Investment in Amer ican Rail and Industrial
 Securities
BY W. G. NICHOLAS


 New York, June 10-tSpecial)-The av- |erage of prices reached high level for the year this week, although some of the leaders, like Steel. Reading and others, fell short of top figures attained in Feb ruary. The general market has been crawling up with very little interruption for several weeks although strenuous ef- forts have been made by the powerful bear party to break values and bring about a state of demoralization. This Iparty has used Steel as a club and has done some very energetic work with It. Trade conditions have favored the bear leaders in their attacks upon Steel and some of the other industrials, but they have not been able to get far, not even with the assistance of court uncertainties, rumors of friction between some of the captains of high finance and a carefully cultivated idea that insiders were trying to work out of holdings in some of the conspicuous issues, notably Union Pacific, the Coppers and Steel. For some reason the public has been deaf, dumb and blind to the noise made by the bear element and to the demonstrations intended to de- press quotations. Comparatively little long stock has come out excepting in special issues and under special condi- tions. There has probably been heavier liduidations and distribution of Steel com mon than in any other stock, but it's friends have come Loyalty to the front with extensive though quiet buying. The net market result in Steel has been a marking down in the prices or points from the top and the creation of an un- weldly short interest. Steel under ex- isting conditions is the most dangerous stock on the list to be short of. It may ultimately go good deal lower but on the way down the shorts will undoubtedly be subjected to unmerciful punishment. The market management is ably handled and 1t is the plain purpose to get every bear dollar that strays into the net.
 The commission and brokerage houses are doing their best to divert speculation from the high priced to the low priced issues. For two or three years and even longer, the gamble has been in a small group of high priced stock, including Union Pacific, Reading, St. Paul, the Hlli stocks and Steel. The latter cannot be called high priced although it is the
 leader of the active issues but that is the exception. It takes a lot of money to handle stocks when they are selling in the fancy list, and if activity could be in- duced, brokers would much prefer to have their clients In the cheap things. There is long list of stocks selling be- low $70 a share and latterly there is clearly an increasing interest in many of them. Among the rails there has been a notable enlargement in interest in such stocks as Erie, Missouri, Kansas and Chesapeake and Ohio, among the rails, and perceptible, though not sensational, increase in trading in the low and medium class industrials. In this latter list, how ever, the speculative preferences is for the higher priced issues. The industrial situation is still so uncertain that trad CTS do not care to take any more risk than need be. They, therefore continue to show partiality for the dividend payers in that class, even though the price be high. The Electric stocks, Telephone and Telegraph, Western Union. Biscuit. Can preferred, and things like that are in spe- cial favor The Gould stocks have been There has been a greater show of in terest in the local Traction group, in cident to the fight over the question of who is going to build $15O.oO0,OOO worth of subways under Manhattan, Brooklyn and the Bronx.
 On account of the immense value of the stake. this row between Brooklyn Rapid Transit and Interborough has been full of exciting incidents lately. Nobody feels quite sure, however, that the ruc- tion is in earnest. The theory is stin maintained in many well informed quar- ters that it is merely make-believe battle and that in the end the money for the work will be supplied from one source and that the construction will be divided up between the rivals. The various com promise suggestions that are being threshed out go far to confirm this no- tion. The 5,000,OO0. people in and about New York will be heartily glad when the row is settled and work begins on the projected lines
 
 The testimony of Judge Gary before the Stanley Investigating committee has been read with close and careful atten- tion in Wall street. He has not said any thing to occasion particular surprise, but there is novelty about the way he has gone at 1t. The judge has become a very interesting character in Wall street. His displomacy, shrewdness and tact have become recognized. There may be strong doubts as to the wisdom of his policy of apparent childlike candor but everybody is prepared to admit that in the role he has adopted he is shin ing success It is noticed, however that there are many delicate points concerning the business of the Steel corporation about whicf&he does not volunteer in- formation. Doubtless the committee will be able to get at all the inside facts if 1t inserts the probe with intelligence and an earnest desire to find out--if not from Mr. Gary, then from other witnesses.
 For instance, it would greatly interest the public to be enlightened as to the tion. It would take it kindly if the com mittee should ask for details about the banking end of the corporation, what 1t does with its enormous cash surplus and reserve of anywhere between $100,OOO 900 and $15e COG, ,0OO-where 1t is kept deposited and what insiders, If any, are favored borrowers from the institutions where the corporation deposits are kept. It has long been charged in the street and nevor proved that the market manipulation in