New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-11
FINANCIAL MARKET
Capital Not Seeking Employ
ment in Speculative Operations.


the high points of the year. yet there
are not few observers who believe that
still cheaper levels will be reached be-
fore anything In the nature or an DID,
fashioned advancing market can de-
velop. 1t is possible that they are mis-
taken as far as the movement Of prices
is concerned, but 1t Is quite apparent
that various disturbing uncertainties in
the general situation will have to be
eliminated before capital will seek active
employment In speculative operations.
Investment buying is not heavy at this
centre, and from current indications i'm
portant transactions in listed securities
for investment account are being post
poned until a clearer view Of the future
can be obtained, Notwithstanding tho
fact that high grade issues can now be
secured to yield q most attractive In
come. In the outside market some
what better absorption OF first class
stocks and bonds is reported, and In CHI
cago bond houses note a better inquiry
for mortgage securities and municipal
issues.
Well secured and per cent bonds OF
industrial companies, the bonds Of pub
lie service companies in various West
ern cities and the corporate stock Of
towns In the same part Of the country
are in demand, with every indication OF
an increase In the movement as people
with money become more convinced or
the fact that American investments
bought on a per cent income basis sell
dom have brought disappointment to the
BUYERS either In the matter of actual
value or pernanency of investment re-
turn. In recent weeks the chief liquida-
ton in the stock market has been by In
dlvidual spectators and speculative
pools. There has been little selling by
small holders, while there has been
heavy accumulation by institutions. The
books Of corporations do not show that
investors of moderate means have sold
their stocks because Of the various bear
factors that have brought about specu-
lative liquidation: indeed, In the larger
number Of instances accounts have been
added 10 and new names are appearing
on transfer lists. Big financial opera
tons are held In check pending the re-
moval of present uncertainties, but the
general business Of the country is pro-
ceeding along normal lines, while under
living conditions are shaping in a way
that suggests marked expansion in our
industries when the current period Of re-
adjustment has run It's course.
Wall Street has revealed IN number OF
unfavorable rumors in recent days af-
fecting certain corporations. but nothing
Of a tangible adverse character has de-
veloped. A receivership for the Missouri
Pacific has been limited at, the bears are
quite certain the Baltimore 81 Ohio VIII
be compelled TO reduce its dividend, re-
trenchment policies. II is argued, will In
volve lower disbursements TO the Harri-
man stockholders, and labor troubles, IT
is asserted. will become so acute IN the
fall thac traffic business will come to
standstill. At the moment the labor
situation on the Hartman lines seems TO
be more promising Of a satisfactory solu-
ton than at any time in several weeks,
and in view of the generous increase in
wages on these roads and on almost
every railroad In the country in the last
year It is difficult TO conceive Of any &C
ton by employees that would tend TO up
set our greatest industry-an industry
that employs millions Of men and sup
niles the backbone Of the nations indus
trial progress. There is no official
authority for the rumor that the Balu-
more & Ohio dividend will be lowered.
but Wall Street processes to see In the
relatively low price of the stock founda-
tion for the theory. The issue, which
now pavs per cent, is selling close to
mar, and even If a rate Of per cent
should be established the stock would
NOT be dear in the neighborhood Of It's
present quotation.
We'll informed men take no interest in
the talk of a Missouri Pacific receiver
ship. although they admit that the COM
pany's last fiscal year was an extremely
moor one and that the stock Of the com
pany is a long, long way from a diN-
dend. Nevertheless, there are people
who are buying the Gould stock 70 hold
Indefinitely, as they believe in the posi-
bilities Of the road as traffic gatherer
and in the ability Of the reformed man
agement TO make the property sound
financially and physically. What can be
accomplished by sound management is
found in the progress reported by the
Erie in the last two years. 1t was not a
long time ago when the Erie was almost
a. noribund railroad, while it is now rap
idly moving toward the point where 1t
will be warranted in paying dividends.
Missouri Pacific should make similar
record. As a rule, railroad gross earn
ings are keeping up well, and as a con-
sequence Of a more scientific handling OF
operating expenses better results are be-
ginning to be shown in net returns.
Railroad men may talk In gloomy
manner. but the chances are they are
not anywhere near as pessimistic as their
statements would suggest. The rail-
roads will continue TO run ana pay ulVl-
dens in spite OF the fact that many rail-
road officers and bankers have not yet
been able TO reconcile themselves to what
they characterize as offensive Interstate
Commerce Commission regulations.
Climatic conditions in the last week
as a rule have been favorable for the
crops still in the ground and TO cutting
and thrashing I'm the spring wheat terri
Tbo condition ~ corn haq bpou