The Washington times., 1912-06-09

NEW YORK, June e.-The develop.
fnents of the week in so far as these
bore upon fundamentals, were Of a gen.
orally favorable nature which found
rehection In recovering and advancing
security prices. Although stocks or
occasions were intensely dun and
although the market showed unmis.
taxable signs of professionalism. spec.
ulatiVe sentiment was hopefully in
clined. and did not appear in the slight.
est cast down by the setback Of the
preceding interval. 1t was a market
OF specialties however, but the issues
made prominent in the trading, were as
rule, of better general character
than those which figured In the recent
Wall Street performance.
1t is as we'll nigh impossible to in
spire an old timer in the financial dis
trict with confidence in a market made
up chiefly of special issues, as Il is
to teach an old dog new tricks. In the
first place the traditions Of a healthy.
vigorous bull movement are all against
the specialties, as the proper leaders
and Wall Street is slave to tradi-
tions. The reason is, of course, ap-
parent. The old timers have had It
drilled into them that the railways are
the arteries Of commerce, and must re-
feet in their earnings and In the price
movements Of their shares, the ex-
pansion or contraction OF general bust
ness. In the old days they always led
in market movement, the specialties
following after, and when the special
issues at last got going. 1t was regard
ed as an infallible sign that the move
ment was near the end.
Railway Shares Inactive.
Simply because at the present time the
shares OF the standard railway prop
critics which have been conspicuous in
speculative movements for varying
periods ranging from thirty to fifty,
or. as in the case of Baltimore and
Ohio and Delaware and Hudson, for
seventy years or more remain inert,
while the shares of copper mining COM
panies and industrial properties of COM
parattve recent origin occupy the center
or the stage, a numerous element in
the financial district view the market
performances with suspicion AS a
matter Of fact It is surprising, when you
pause to consider It and study the
records. what an insignificant part the
railways have played IN the recent
movements. with the notable exception
Of Reading and Lehigh Valley.
Perhaps a score of properties with
huge capital issues like Atchison, Bal
timore and Ohio. Erie, Southern Railway,
and Southern Pacific, to mention no
others, at one time tremendously active,
scarcely figure in the trading at all at
present, or II so, only to the extent
Of a few hundred or a few thousand
shares. Without accepting as gospel
all the traditions of the Street, or with
out indorsing the extreme views OF the
old-time element as to this feature, II
does impart an air of unrcality to the
stock market to note that the best
issues on the list. railway stocks of which
the floating supply has always hereto
fore been sufficient to furnish abun-
dant counters for the game. continue
dormant. while issues which usually
have but a very limited market ig-
ure conspicuously and make up the bulk
of the dealings.
Standard Issues and Specialties.
Very many are the explanations one
hears in brokers' offices to account for
this feature OF the market The theories
range all the way from assertions that
~ 10 NuV " III
issues by pools who refrain from rail-
way shares, for fear of getting a too
abundant supply: up to statements that
railway issues have become largely alb
sorbed. and are now like British Home
Rails" more an investment than a
speculative security. There is certainly
something to be said on the side of
this latter theory. for while, II an eager
confident, public was in the market
there would probably be enough rail-
way shares to go around. 1t is true
that an absorption has been in prog
ress for several years-the increased
number of shareholders on the trans
fer books show that-and 1t Is also
true that due to the activity of pub
lie service commissions and the Com
merce Board, in supervising on issues
of securities, controlling rates and the
like, railway shares have become less
speculative.
On the other hand. those who hold
firmly to market traditions are not
justified in an unreasoninG antipathy to
the entire range of specialties, for the
position of many OF them unquestiQn-