New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-06
THE WEEKS OPERATIONS IN STOCKS

THE WEEKS OPERATIONS IN STOCKS.
The Chicago and Northwestern Railway Com
pany declared its usual dividends last week at
The rate Of : per cent on the preferred stock
and 3 per cent on the common stock. and after
all payments for the company's fiscal year there
was left a surplus of 50 2S2SIS or an increase
as compared with the preceding year Of SILL
6O4 The Rock Island company increased its
dividend rate to ) per cent basis. and gave
It's stockholders bonus in the form of dis
tribution of treasury stock amounting TO 10
per cent The ST. Louis and San Francisco
company declared a dividend its second pre-
ferred stock and the Chicago and Eastern H.
lnois for the first time in its history announced
a dividend on the common stock Of 2ia per cent
which practically placed the stock on . per
cent basis. These dividend declarations fore
shadow many pleasant similar announcements
by other companies in the current year and re-
fleet the improvement in the affairs of Ameri-
can railroads caused by fine agricultural condi-
tons and a constantly broadening industrial
progress.
The course OF the bond market shows that in
vestors and shrewd capitalists appreciate the
value Of the factors just mentioned. An enor-
nous business was transacted in railway bonds
In the week. the buying coming from permanent
investment sources and from spectators who
figured on handsome profits in the promising
issues selling under par. Railway mortgage
issues are attractive 10 the investor and specu-
lator for reasons too well known 10 demand ex-
tensve explanation. Probably never oe1ore IN
the history Of the country have American rail-
reads been we'll and intelligently managed
or 50 carefully run IN the interests OF the stock
.svo te x-iye
,.ss nopular. And the fact as pointed out in
this column in the week. that the country has
grown up to the increased railroad mileage fol-
lowing the boom Of 1879 80. while reorganiza-
lions have been accomplished on the basis OF
papic times makes existing railroad companies
heavy gamers from the industrial progress.
while affording the stock and bond holder safe
security for his money. The day Of high-!nter-
est returns on railroad bonds is over. High-rate
bonds maturing are being refunded on lower
basis-a factor denotng the high credit OF the
roads and the confidence Of capital IN American
investments The higher attractive bonds OF
recently reorganized railroad properties can no"
be secured at a market value TO net the investor
from 10 per cent, and in some instances
there are nrst-class securities selling shghty
above par that will net over per cent. Inc
gradual appreciation in market values now
ever. will not for any great length OF tlme al
ford the opportunity to secure such faVorapie
returns.
The war will have temporary influence oNe'
the stock market. but long time calculation
Il does not enter into BANKERS consideration
So far war has stimulated values and any set
hack 10 the Army and Navy cannot, in the opn-
ion of the best observers, last as a market lac
tor beyond the time allowed for a REIMBURSEMENT
hopk
ness men in general have found that the bust
ness Of the country will not be injured by the
war. all fear Of panic has disappeared Money
rates have reacted to the borrowers prices, and
business is being conducted upon a larger scale
than ever With fear removed and underlying
conditions sound, there is nothing in sight 10
nrevent an adjustment OF market values 10 the
prosperity basis. The market tends In this drec-
tim Reactions caused by technical conditions
and speculative manipulation do not lessen the
Intrinsic worth Of securities. The public recog-
nizes this and Is becoming more Of market
factor every day. People who hold stocks are
unwilling to sell. and intending buyers have
about given 10 the idea Of accommodating Sc
cur;ties at a lower level On every small decline
a good demand develops and operators who sell
shor. only have TO cover at higher prices. 1t is
not a bear year
The money supply OF the country is larger
than ever before In its history In ten years
the increase OF available money has been Sill
427. 500. and from June l. 1897, to June !, Of the
current year. $780, 1914 SOL And Of this amount
1888 1856 S14 made up the record for May AS
factor in the stock market the monetary situa-
ton Is Of the first Importance, for the vast
amount Of idle funds will seek investment, and
that means an appreciation in market values.
On the basis OF easy money. fine agricultural
prospects enormous foreign trade and enlarg-
ing business as reflected In the volume OF bank
clearings and railroad earnings. Wall Street con-
fdently expects an active securities market this
summer with prices going In the direction Of
the level reached in the bull movement follow
ing the low values Of 1879. An active bull
movement has a sound and logical basis in the
present condition OF bank credits. and there
can be no good reason 10 expect dull and sag
ging market despite the advance already made
The recent appreciation in values has been con-
fined In great part to the high priced shares. but
indications were given last week OF more gen.
srai distribution OF interest especially in the
middle class Of securities.
The following table shows the high prices for
a number of stocks the day preceding the
Maine explosion and Saturdays close. prices Of
about a month ago. and the low price OF the
year. made after the Maine disaster
reb