The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-02-07
ANOTHER TEST MEEK
Results Only in Making the
Market "Hesitating."
W-PRICED PROPERTIES
Coming in Demand Rail-
way Position Strong.

New York. Feb. 6.-Henry Clews says:
The high range of prices for securities has
had another week of test, but with no
very marked results, except that the mar
ket has become hesitating. There are ap-
pearances of certain large professional
operators having done considerable real
izng; and that factor may account for
some declines in those stocks which have
advanced most. These operations have
naturally caused some shrinkage in the
volume Of business al the Exchange, the
sales for the first four days Of the cor
responding week having averaged s6S, 600
shares per day, compared with an average
Of 1,444OoO shares for the corresponding
days Of last week. This sort Of reaction
from the previous high tension OF the mar
ket was no more than was expected, and
the fact that il has not been greater may
be attributed to the presence Of an extra
ordinary outside element, which is ranged
almost entirely on the pull" side. That
class of operators seem TO be more than
usually flush of means, and their san
=
to stick to their holdings with tenacity.,
In our last advices, we minated a
probability that the higher grade OF stocks
having been advanced to extraordinary
prices, attention would probably be turned
to the lower grade Isles. This has been
the most notable feature in the market.
AS a rule stocks that have ranged in the
teens and the twenties and thirties had
previously participated comparatively lit
tie in the buying movement but now
great and small operators alike are turn
ing TO them as relatively cheap, an the
probabilities are that this stage in the cur
rent campaign may be attended with
some further development. Nevertheless,
the realizings by leading operators Of large
blocks of the higher grades of stocks re-
lakes the backbone of the market; and
while there may be considerable activity
and some rise in specialties among the
cheaper issues. yet is is reasonable to ex-
pect a fuctuating movement rather than
any further general important rise Under
these circum stances, 1t will be prudent for
the present, to limit buying to break in
prices and TO realizing on rallies, thus
making in-and-out turns and relying on an
aggregation Of small profits rather than
holding on for large ones. There is. how
ever, one group of stocks which seem to
be looming up hopefully. The Chicago &c
Alton purchase for the benefit of the
Southwestern roads now has an encour-
aging look, I'd, if consummated, can not
fail to be of immense benefit 10 the Sc
curitles affected, Missouri, Kansas &
Texas probably benefting more than any
other road from the contemplated ar
rangement.
Taking the stock market as a whole
however. it appears to me that it has
reached a stage at which conserva tism is
in order. The prices of the higher grade
stocks have reached an unprecedented ele-
walton; and even If the improved finances
and prospects Of the roads have warrant
ed a considerable rise it is to be rernem-
bered that the public have not yet become
accustomed to this extreme advance and
are not prepared to regard the new quota
tons as permanent. It is however. OF
some significance in this matter that urac-
teal railroad men are the strongest ''buJs''
TO be found, and that they are so on the
intrinsic merits of the railroad situation.
''N' INV NJ ff1->Scts III bu-IA the SeleTe
trials Of recent rate cuttingwlthou earn
ing something Managers have been driven
to economy in operating expenses and have
made improvements in plant which will
enable them 70 carry freight proftaflv al
lower rates than have ever been known.
These OUTLAWS have. for the moment. all
sorbed earnings which might otherwise
have gone % the stockholders. and in this
way some disappointments have arisen in
view Of the large gross earnings; but Il is
an eminently wise and conservative en-
pioyment Of income and viii put the roa lie
in position for increasing their future
profits while at the same time giving the
pubic the benefits OF low charges for
An intelligent writer n
one of the morning papers makes the FOL
lowing remarks pertinent 70 the railroad
which present some very irnpor-
tant facts: Railroad stocks which seemed
unlikely ever to earn a dividend are now
mounting in value. The cases OF Union
Pacific. Northern Pacific Atchison and
southern railway are noteworthy. Each
Of these great companies was practically
fresh from reorganization and in each os
them there has been developed new eqru-
ing capacity Of ma gnltude Many otIe-s
reflect the same conditions on = smaller
scale" To those wei informed and n a
position 10 take an intelligent look into
the future. these are considerations w'if5b
contribute 20 confidence in rar
-csd stocks as investments; they lave RAJ
their influence IN causing The recent Erea.
advance in prices, and they will serve &c
a potent check against any violent re..t'on
from the scale Of values now esta7 lfs7,d
stu IL must take some time 5er7s -
weight % these considerations Is f,lu- A.
qreciated by the average inye--o- o. srer.
Ulator; and some recession in o-ices j,
therefore 70 be regarded as a possio..f.v
-,-r.l,o F.f,r.--