The times., 1899-12-12


should be remembered, too that even with
tight money for few days longer proba-
bly, many conservative spectators will
consider present prices low in view of the
easier rates certain to come at the begin
ming of the year. 1t should not be expect
ed. perhaps, that a steady advance viii be
made. Such a thing never occurs after
great break But the outlook for a better
tone and for gradually impl ploving prices
seems good.
Such being the general belief, it is worth
while considering exactly how much prices
in the railway list have actually suffered.
The general impression after such a week
as last week and after such day as yes
terday, is nearly always erroneous regard
ing the extent OF the break. Buyers at the
top of the grangars, the Pacific securities,
the Southern and Southwestern securities,
the Yaudzrbiljs. and many other stocks.
would have been safe through all this panic
Of realizing on ten points margins In many
cases three or four points would have been
sufficient Southern Pacific is off three
points Northern Pacific common bought at
the very highest price of the movement
TWO weeks ago and held through yesterday
would have required only four points mar
gin. Union Pacific is off two points in the
week. Chesapeake and Ohio is selling high
eT than it was three weeks ago and very
little lower than its highest price The
same is true Of Big Four. The Baltimore
and Ohio securities after their rapid ad-
vance have lost a large part of il, but they
are both still higher that they were a month
ago. Southern Railway is off s. share.
So with the railway list generally.
There is nothing in this showing to sug-
gesr that the railway securities, and es-
pecially the low-priced issues, are not good
investments. with the present earnings so
large and with the outlook for business in
the future SO excellent Careful buying
Of these securities is 10 be advised as the
same advice has been the best that could
be given ar all times during the past three
months or more. II is not to be supposed
that prices viii always advance and when
Northern Pacific has advanced seven points
decline OF three points is not remarkable
any more than a decline Of six points in
Louisville Is. after an advance in a month
OF two Of thirteen points. The fact that
the decline has come is, however an excel
lent thing for the investor that has not yet
bought these securities but wishes to.
The question as to the Industrial securi-
ties is an extremely interesting one. The
breaks in prices that have occurred viii
probably convince many SPECTATORS that
these securities are luxuries for the rich
only. Il can hardly be doubted that every
average trader so convinced is on the high
road toward making money by the simple
process Of not losing it. These breaks,
however. should not disguise the fact that
q large number Of the so-calIed trust stocks
are now selling at a price far below their
actual worth. Simple business judgment
uudistorted by the fancy stories circulated
by Mr.. Keene and his friends caused many
people 10 buy these stocks yesterday, who
very seldom come into the market. Sugar
is now selling below its normal level AS
a dividend payer the record Of this stock
is better than that of any railway security
on the list. It's rate is higher and for years
the rate has been kept up steadily, while
railway securities have ceased TO pay any
thing OF cut their rates heavily.
AS to the new securities the preferred
stocks of Federal Steel and several others
of the iron and steel companies are on the
whole more likely to receive dividends
regularly than are the common railway
securities. A careful consideration Of
known facts viii convince anyone OF this.
The threatened legislation against the
trusts viii not. when the utmost is ac-
complished, have hurt such companies ac-
/ cCrding 10 the opinion of some of the most
careful business men in the country. AS
TO the bills already being introduced in
both sides Of the Capitol, and the many
speeches thai are 10 be made on the sub
ject, their logical effect VIII naturally be
10 make the market for the Industrial Sc
curities erratic, but it should be remem-
bered that the declines already made have
I discounted the effect Of an immense
! amount Of much political agitation.
The news Of the day was extremely
ing in their favor so satisfactorily that
/ they apparently needed none of their brand
/ Of news 10 help them. With the early
/ break in Sugar more rumors regarding the
/ difficulties between Director Matthieseen
I and the company were heard. One story
I that obtained credit in some quarters went
/ so far as 20 predict that the payment Of the
! Sugar dividend VIII be enjoined. Probably
{ 80 600 shares of the stock were sold during
I the morning that had been bought from 10
| 10 - points higher. IL cannot be learned
+ that Mr.. Matthiessen or anyone else has
any intention of enjoining the dividend, and
I il is supposed that the story was entirely
without foundation The recovery yesteT-
Cay was spirited, and at the close, with the
/ dividend the stock had made good net
/ gain.
Leather common was strong all day. and
highest price in two weeks. The move
ment was understood TO be professional
one entirely.
The tobacco stocks continued weak yes
terday morning American getting as low
as - and Continental common as low
as 81 IL. Both recovered strongly in the
afternoon and closed not much below the
close on Saturday. The break in these Sc
curities is believed to be Of professional
origin entirely, and it seems very certain
that the company can have little fear Of
the ST. Louis opposition.
Metropolitan Traction was the weakest
stock on the list outside the industrial
group. Il tumbled TO IA at one time, be-
Ing then 80 points below the price OF last
3 points Manhattan held fairly we'll but
at l01 SIS. Brooklyn broke to rs 3-4, only
point above the lowest price Of the year
1t recovered 10 so at the close.
The Flower securities generally have
shown much strength comparatively dur
ing the break. The Federal Steel stocks
have been very much stronger than the
Steel and Wires, and Atchison preferred
and Rock Island are both oil little from the
level Of week ago. Chicago Gas, TOO,
has held its own well compared with other
industrials II sold only as low as l07 yes
terday. There was good buying of the
stock al that price, the lowest of the year,
with the exception OF the tumble to l0l
1 when Governor Flower died.