The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-04
Big Spectators Shake OF I'm
desirable Following and Sc
curities Go Higher.
GENERAL BUSINESS
SITUATION BETTER
Average Crop Expected, and
Optimistic Views Are Given
on All Sides.
BY RALPH EMERSON.
eased Wire to The Tribune.

NEW YORK, juno 3.-The week has
brought a. material enlargement Of stock
| exchange business. but from the point
OF view or the trading element, which i'
| responsible FOR most of 1t. the period has
| not been a very profitable one. PROBES
| sional Wall street badly misread the
| situation which It. found on coming dowI
| to business after the Memorial day holl-
| day, Preparations had been made foI
decision similar to that which had greet
| cd the Standard OIL verdict.
Tho essential point which oTersan-
Euine speculators had overlooked was. OF
course, that the Wall street position itself
was far less strong than IL had been the
week before.
The Standard OIL decision WIS handed
down at a. time when tho market had
there was a short Interest of respectable
dimensions outstanding, stocks were for
the most part concentrated in powerful
hands.
At the beginning OF the current week.
on the other hand. these technical condi
tions had become considerably weakened
both by the retirement very extensively
OF contracts for the fall and by the on
trance into the market OF large nun :
Der or petty Spcculators for the rise. II
is the consensus now among close OBJ
servers OF tho trading that Wednesday s
price movement was nothing more nor
less than well laid. well executed plan
TO get rid OF an undesirable following
and nj the same time TO replace to ad-
vantage stocks which had been sold the
previous week
Helped by "open Market" for Steel.
This maneuver was helped by two col
lateral Incidents either OF which would
have been calculated 10 exercise an un-
settling effect One was the declaration
OF an "open market In tho steel trade
which was what was meant by the an
nouncement that the other steel manu-
facturcrs would meet the cuts in prices
Initiated by the Republic Steel G. Iron
company. The other WAS the extraordi-
nary collapse of American Tobacco shares
in the curb dealings. That these occur
a shock was inteIligible enoush-more
soberly viewed they were later in the
week, they could not be presumed to
exert more than a passing check, The
the improved sentiment and reached a
buoyant stage with prices showing an
average advance OF over 5 points COM
pared with "a week ago and with many
new high prices for the year. some IA :
Norable DEVELOPMENTS of direct bearing
stimulated the rising trend Some of
these was the proGress made BY the
other leading systems in readiustine their
ratio of operating expenses 10 gross rcve-
nue. on more economical basis. thereby
condition In marked contrast 10 that of
previous months.
Great Northern Mortgage
The record mortgage of $500 ooo Ono
filed by the Great Northern was another
matter that exercised a potent influence
as II was regarded as an expression of
confidence In the future by such an ex-
perienced railway magnste as James J.
Hill. This. with s20.O00000 OF this
mortgage placed, reflected revived
investment demand for bonds following
closely upon oversubscIiptions TO the
Oregon ashington Navigation railway
loanhere and abroad and the marketing
of $50, 900 600 Missouri, Kansas & Texas
bonds in Paris.
1t Is now generally conceded that tho
Panama canal loan Will be q complete
success, and such an outcome would help
sentiment London discounts are down
TO per cent and money is extromely
easy at Paris, thus the situation abroad
is quite favorable for the absorption of
American bonds.
The domestic situa ation is also favor
able The aftermath OF the reduction in
prices OF steel was 1nit- different from
that OF 1909. Then there was a great
rush for business on the present steel
mills and the result was considerable de-
moralization, from which the trade did
not recover for several months
Now nothing like this is apparent and
the orderly manner in which price re-
ductions are being conducted has in
spircd sufficient confidence to bring In
numerous Inquiries from consumers, and
IT is estimated the various mills are
working on the basis OF an increase In
OUTPUT Of ) 10 10 per cent over the re-
cent low level
Although such general business as Ia
now being conducted throughout the
country reflects continuance Of marked
merchants and manufac-
,urers arc now taking more hopeful
The crop outlook as a whole can stiI
be called favorable '