New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-25
BONDS.
THE DAYS OPERATIONS IN STOCKS.

Stock market trading broadened considerably
yesterday. and prices moved toward hlgher
level in the greater part of the day. Dealings
were not particularly well distributed, but they
reflected a growing interest on the part OF com
mission house traders in the medium priced and
cheaper class of issues. In Baltimore and OHIO
and Union Pacific securities large volume OF
business was transacted, while in all the at
tractive stocks that are selling we'll under par
an increased demand was noted 1t is believed
in the best informed circles that the stocks Of
the Union Pacific, Northern Pacific, Baltimore
and Ohio class. and then further down the scale
in the cheap issues. such as Norfolk and West
ern common. ontario and Western. the Mexican
Railroad issues and Chicago Great Western will
furnish the chief activity among railroad stocks
in the market of the next six months. Adequate
reason for activity in these securities is found
in their increasing actual worth and greater
dividend possibilities.
The talk that is heard in quarters Of the
Street regarding stock market quotations is not
intended TO inspire confidence in the future Of
values. There is ample reason for assumed pes
simism on the part Of people who. for specula-
tive considerations, wish to lower level Of
values. They are short Of stocks, and doubt
less realizing that conditions governing the real
worth Of stocks must eventually be measured
by market quotations. they naturally are anx-
ious to get out Of their predicament before the
bull screws are put the market. One Of the
arguments used by this element is that prices
are already too high. 1t is admitted by the
most ardent bulls that the market presents in
stances Of fictitious quotations. but they also
contend that where one stock is too high ten are
too low and that the course Of values from now
until the end of January must move in a direc-
ton that will bring actual and market worth
10 the same level. This only be accom-
plished by an advance in market values of the
greater number Of issues In the course Of this
advance 1t is improbable that the stocks which
are selling beyond their real worth will go ma
terially lower, If at all. but in the end they will
find their legitimate level. just the cheap
stocks viii find theirs.
There are not many stocks which are ruling al
fancy prices based on dividend returns There
are few per cent stocks selling high as
par and few per cent stocks selling much
above par. Consolidated Gas stock furnishes
an instance Of fictitious market valuation. If
this stock were now paying per cent divi-
dends. the investment yield would be about
per cent But II is only paying l per cent quar-
terly. and as an investment il returns at its
current price about per cent. Manifestly
Consolidated Gas is not worth over par on It's
present dividend return. Even If the COnsoli
dated company advances its price Of gas to the
legal limit and restores its dividend 10 pei
cent. which is improbable, the stock will not
be worth its current price. Tennessee Coal anC
Iron which pays no dividend. may be considered
nigh at Ito. although the price represents the
expectation that or per cent will be paid II
another year As a rule, railway stocks ar,
selling at a level which nets fair return TO tn,
investor, and in the greater number Of case
they are selling under the level which dividend
yield suggests. Take Union Pacific preferred
for instance. This stock pays per cent ant
sells under ~. There are a number Of simila
examples in the market and a careful examina
ton Of the list results in the conclusion tina
the majority of the stocks selling below
actual worth.