New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-23
BONDS.
High Low Jan2l Jan.i4' ch'gs Sales
THE WEEKS OPERATIONS IN STOCKS


THE WEEKS OPERATIONS IN STOCKS
The movement Of capital into the standard
investment shares an important feature OF
stock market trading last week, not only pre-
venting the advocates Of lower prices from
making successful attacks upon the market. hut
encouraging renewed public buying and high
er level of values II the advance In prices
were based upon fictitious conditions one might
well look askance at the current range Of quo
tatons. But what are the facts? Cheap money
based upon an enormous supply OF available
funds ar home and credits abroad industrial
and financial stability throughout the country;
National, corporate and individual wealth never
before equalled. and business progress in every
part of the country reflected in railroad
earnings and bank cearings. Everybody knows
that the statistics Of business are extremely
favorable, and that stock market values
advancing because the intrinsic worth Of securl-
ties is increasing With prosperous country
speculation may carry prices beyond the point
OF actual worth 10 level that may stagger
the ideas OF conservative people and end In
smash" but yet there are no indlcatio
that this sort Of speculation Is under way or
likely TO appear for some time 10 come. or
course. big reaction may develop. Important
operators may suddenly get out OF stocks. leav-
ing the smaller traders 10 support the market:
but II be relied upon as certainty that
upon any material setback In values at present
there Will be a reorganization Of stocks by
important interests and renewed public buying
by people who have already taken their profits
This is q time when investment shares
seeking their natural level. And in approaching
that level the supply OF such stocks available
for speculative purposes is fast becoming
smaller. owing 10 the buying by individuals and
corporations, who are loading up their tin boxes
with securities 10 hold as permanent invest
ments Take Burlington, for instance. THIS
stock is more largely held by investors than ever
before in It's history The reason is not hard
10 find. II is OF the best, perhaps the best,
OF the great granger stocks. The company VIII
doubtless refund It's bonded debt OF about
$40 100000 exclusive OF the convertible bonds
1t Is likely that the refunding VIII De Conducted
upon 80 per cent basis. which would mean
an annual saving including the annual sinking
fund payments Of about $tVOOoOO. equa! 70
over t per cent the stock Burlington VIII
then be earning at least II per cent on It's stock.
With this prospect In view the current price OF
Burlington is not high; nor Is II unreasonable
to expect that the company VIII pay per cent
dividends in another year. In 1881 burlington
sold at Isl. Burlington at 100 VIII not be SELL
ing above It's actual worth. When the I'M
pressve possibilities Of the standard snares are
considered. and when one turns MS aI.rhtiv"
to the earning power Of the Union ana North
ern Pacific companies the Atchlson, southern
Railway the roads in the southwest ana else
where IL will be readily that securities
prices must inevitably reach higher hgures be-
fore ii can be said that values are on IeVel
warranted by actual worth and money market
conditions. a..
There are large number Of stocks on the list
that have yet failed 10 share in the upward
movement 10 any noteworthy degree nen
the higher priced stocks have found thelt leVe'
capital ought naturally 10 overflow into the so
called cheaper issues, and for this reason as
well az because Of the merits or the prop
critics concerned. the lov-pricec STOCKS shouiu
materially appreciate in market value IN me
course OF the current calendar year. Inc reIa-
ton between money rates and the investment
Yield must at no distant time exert lts lhnushcs
ilpon all the dividend and prospective CNluehu
having stocks Regarding the low priced slOcAs
il should be borne in mind That the present
high priced issues al one time were among tne
cheap securities, as ST. Paul, which sold az 10 IN
1880 Northwest al 19ss IN lois Lake ohore a.
81 in 1879 and Lackawanna al fo IN the same
year The people who have the patience 10 hoId
stocks Ike Chicago Great Western common
Wabash preferred St Louis and san Francisco
common Southern Railway common. Kansas
and Texas, Atchison and Chesapeake ana ONO
viii doubtless be able 10 dispose ~ them at
much higher prices. That the very cheap stocks
have not yet been taken II hand Oy SPECTATORS
merely reflects the prevailing disposition OF OPP
afors to share In the prOnls lnal are 10 ne
made from the investment shares IN their prog
ress toward their legitimate level Ana me oe-
nand for stocks Is not entirely speculative py
nv
,ronounced in the investment issues due II
great part to a steady movement or investment
canital into the properties concerned BANK
lbs show no indications " oVerspeculatiOn
With the enormous increase IL the iron ana
stool business a natural demand mas sprung UP
for the securities II iron and steel producing ana
notwithstanding companies. az instanced In the
cwrrenr absorption OF Tennessee Coal and Iron,
Federal Steel and other stocks of similar con-
Germs In bonds a noteworthy instance or the
growing popularity OF Industrial securities rep
solid business enterprises vas rejected
In Saturdays dealings II the u per cent nrst
=. bonds Of the De B2rdeieben Coal and
Iron company These issues are practically the
underlying bonds OF the Tennessee Coal and
Iron company. and within the last few days
tbev nave been widely absorbed IN the open
market by number OF shrewd capitalists, who
realize that In these days OF cheap money first
mortgage issue al q per cent selling only trine
aboyS Tar is & most attractive investment. The
De Bardeleben Coal and Iron Company was
with the Tennessee Coal and Iron
COMPANY IN 1892 and the bonds IN which there
has recently been so much activity in the open
market represent mortgage OF only S3.OOO,OOO,
~ which Sl12 coo has been cancelled by the
sinking fund, which calls for 10000 a year.
Investorg are seeking out he mortgage Issues
that have always paid their interest charges
and whenever they find promising bonds which
owing 70 the many years OF depression have
been inactive they Immediately begin 20 absorb
such issues either for permanent investment or
10 seu at an advanced level which the force or
present conditions must surely bring about
There are many mortgage issues that Will feel
the force OF investment capital before the end OF
the year ana the buying or q per cent issue
,.l,ina near par by prominent capitalists indi- |
cs,ss that the time is not far on when bargains
IN the bond market will be extremely difficult 10 /
find