The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-25
rnz rIxAL rrsr OF srooK Values.

Tuesday, whom the announcement VI nv g
Of George VI. Pullman led to large s"'es OF
Pullman's Palace Car Company Stock carrying
tho price OF tt down five points and more. un'
ouostionably. Mr.. Puilmnn's services were very
valuable to tho company. but his loss Is not IT
reparablc, Ho had under him a BODY o. trained
and able assistants. among whom mere niuSt 20
one, IL not more. competent 10 carry on the COM
pany's business as we'll az he dill. His merit
lay in originating and perfcciins the palace car
service, and he did for it, long ago. Ill that could
be done in that way. Nothing is needed now
but for his successor to keep on in the
path he marked out. and whether The results in
the future will be more o. less to tAe coinpanys
advantage than tLcy have been in the past, de
ponds upon conditions which his death will not
change. As to the suggestion that his holdings
Of stock will he suddenly thrown by his family
upon TIE market, Il is not worth consideration.
There Is no reason why the stock should be sold.
and a great many why 1t shouli be kept where
Il Is. All these facts were. upon reflection, rec
ocniyed by operators on the Exchange, and the
stock speedily recovered from its temporary de-
preston. In \ less marked degree, American
Sugar Refining stock and Manhattan Elevated
stock were made objects alternately OF attack
and OF support, upon runors which. whether
favorable or untlvurablc, were equally fimsy.
1t is true that. as was pointed out in this col
umn last Monday. the public mind is disquieted
In view OF the possibility that the coming cleo
tion may demonstrate the preponderating
strength OF the forces arrayed against order and
property, and the comparative weakness Of the
party that. single-handed. Is contending with
them. All citizens whose minds are not clouded
by ~arttully excited prejudice are hoping and
working as they were a year ago for the success
Of the Republicans, but, very properly, not until
the result OF the election is ascertained. will
they dismiss their doubt and their alarm. This
class OF people, however. simply keep aloot from
the stock market, leaving it to those who con-
tinue to operate in it merely with regard to the
transient factors which. as in the cases which
have been above mentioned, move prices up and
down from day to day.
To those who buy stocks and bonds as they do
real estate. or as they lend money upon good
collaterals. purely as investments of capital for
the sake of deriving income from it, this trading
on the stock Exchange Tor the profits 10 DO
gained from the daily fluctuations OF the m arket,
10 4 game which they understand imperfectly or
not at all. They can comprehend taking advan-
tags OF a favorable opportunity to invest, and,
again, ct another favorable opportunity for re-
calling the money invested and placing It else
where. They can also comprehend investigat-
ing the merits OF 4 stock or q bond and of buying
or selling it according To the result Of the in
vestiGation. What puzzles them Is the nimble
jumping In and out, the ~parrying of rain drops
with a fencing foil. which go on continually in
the market and which make up the bulk Of the
transactions in it
The mystery Is increased by the nearly unani-
nous testimony of those who have watched the
game for any length OF time. that not one in q
thousand OF those who play it comes out, in the
long run, winner. The money they put in
nelts away in losses. or is eaten up By interest
payments and brokers commissions Even play
ers who are brokers themselves need to have
good paying clients. In order to gain moro than
their expenses. taking one year with another. The
lucky ones are. lik, the drawers OF prizes in o
lottery, few as compared with the multitude
who draw blanks. Their success il due partly
to thcir skill in OWNING and anticipating COM
ing changes OF the temper OF their antagonists,
sufficiently in advance to make good bargains,
but more TO lucky guesses at what those changes
are going to be. It Is not gambling. pure and
simple, but chance enters largely into it.
Time tries ali things. and the wise investor
estimates the value of q security not by the
price it is made to bring at the moment by tho
conflict of opposing spectators. but by the in
come it Is yielding and by what it may be
counted on to yield hereafter. This is the dnAl
test, all others are temporary and misleading.
Applying II to stocks which are now. like .
5~ugglcr's balls, kept flying in the air by constant
impulses from below. it will show either that
they will ultimately land in investors tin boxes
out OF the reach of the general dealer and come
upon the market only at executors and admin
istrators' sales, or that they may be kicked out
OF sight as worthless rubbish and never be heard
Of more. Veteran. observers can call TO mind
frequent examples of both fates. Stocks. which
were once mere playthings tor bulls and bears
are now the priceless jewels OF millionaires, anc
some which were left by the last wills and tesla
ments OF their owners to their families as heir
looms. have long since ceased to pay dividend
and are unstable OF any price.
Naturally, it will be said that il the same IN
certainty marks the values OF all stocks. a maj
may as we'll gamble upon their iuctuation
from day to day as upon an equal fuctuAtiol
extending over years. This is true, in a sense
but whereas the daily iuctu atoms cannot b
foreseen by the exercise of any amount O
watchtulness. those OF a long term. being cause,
not by human caprice but by slow moving, sui
stantia1 forces, give warning Of their coming