New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-03
FINANCIAL MARKET
Stocks Close Half Year at Ad'
vanceS Over Closing of 1910.


railroad shares standing at 123, against
1l4S9 Of the first business day In Jan
uary, and the average for the chief in
dustrials at $3.50, compared with 49,
at the close Of 1910 Improvement has
been brought about in spite Of various
factors that have encouraged bearish
sentiment in speculative quarters, and
from current indications the movement
will continue in the rest OF the year.
with, Of course, the usual passing set
backs incident to all bull markets. AT
the moment there is enough uncertainty
over the outcome Of the crops to restrict
speculative activity on either side OF the
account. while Investigations Of cor
porations, civil and criminal actions
against corporations and unjust attacks
upon corporations by notoriety seeking
politicians naturally do not encourage
public buying on borrowed money. but
notwithstanding arguments advanced by
traders who would like to see a lower
the market, while the financial standing
OF the chief holders Of securities does
not suggest that quotations will be per
n1itted to seek at any time in the present
year a. materially cheaper range. Fortu-
nately investors are not selling their
stocks because Of government lnvestlga-
ton OF corporations and the possibility
that other concerns besides the Stand
ard Oil and American Tobacco compa-
MES may be compelled 10 reorganize IN
order 10 come within the provisions OF
the Sherman antitrust law Obeyins
the law will not lessen the earning
power Of industrial companies.
The country's industrial activities are
growing. and the fact that certain indi-
viduals connected with the wire trade
have been indicted on the charge Of hav-
ing conspired to restrain trade will In no
way interfere with the nations business
progress. nor will business be upset by
the result Of the Congress investigation
Of the United States Steel Corporation
or by the report Of the Commissioner OF
CORPORATIONS on the steel Industry
which. by the way, contains nothing that
should alarm holders Of the United
States Steel securities. This report finds
that the big steel concern has made an
average rate Of profit on its actual in
vestment Of 10 per cent from 1901, the
time of it's organization, to the end or
Decembe 1910. while II also finds that
there has been an almost continuous de
crease in the corporations proportion
of the output Of principal steel products.
accompanied by marked increase in its
ownership or control of iron ore de
posits Furthermore the Commissioner
Of Corporations finds that since 1901
S431. 100000 OF the original water in
the company's capitalization has been
squeezed out by applying earnings to
improvements and extensions, and he
absolves it from being a monopoly, ex-
cept in regard to its ownership Of ore.
Crop conditions have shown material
improvement in recent days, and the
present outlook favors large harvests OF
wheat, corn and cotton. Iron and steel
trade conditions are far better than re-
ported prior to the action Of the Republic
Iron and Steel Company in cutting
prices. which was followed by general
reductions throughout the trade; our for
eign commerce continues heavy, with ex-
ports largely exceeding imports, and
money can be secured in almost any
amount on approved collateral. An &C
tive bull market is not looked for in the
immediate future, but if the crops are "a
promising in August as they are just now
II is not unlikely that in that month ad
vantage will be taken Of the many favor
able elements in the general situation to
place prices for stocks at higher levels.
In the mean time selling doubtless will
be confined TO operations for bear ac-
count by unmportant traders. The Erie
issues are being accumulated because Of
the remarkable progress the Erie com
many has made in recent years in build
ing I'D it's credit and its physical facil-
tiles. and because Of the possibility Of a
traffic alliance with the Canadian Pacific.
st. Paul is being quietly absorbed by
people wo feel assured that in the course
Of time the common stock will either be
placed on higher dividend plane or else
the company will distribute something
valuable to its stockholders as a conse-
ouence Of its growing income from it's
Puget Sound extension. This two-year-
old addition to the St. Paul already has
returned 100000 net into the ST. Paul
treasury. and while the parent company
has not earned It's full per cent from
its own earnings in the current fiscal
year. its income from other sources more
than makes UP the deficiency. Reading
is another stock that promises 70 move
70 higher price. and among the indus
trials the gas shares including Laclede
Gas. which represents the entire gas
business in ST Louis This stock is being
steadily bought, and as at its present
quotation it yields more than 8 per cent
it is entitled to a better quotation on its
merits Union Pacific returns only little
more than per cent at present and the
character of the buying in it does not
suggest investment accumulation.
With the exception Of slightly firmer
tendency in time money rates for col
lateral loans have not been affected by
the financing Of the July interest and
dividend disbursements. or by the heavy
payments by the banks to the Sub
Treasury on Panama bond account and
for corporation taxes. The local banks
have enormous cash and reserve re-
eorrcas while currency continues 10