New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-20
BONDS.
THE DAYS OPERATIONS IN STOCKS.

The stock market strong, but not active,
heavy transactions being confined TO few Of
the more important speculative issues and stocks
in which buying induced by developments
affecting the companies represented Norfolk
and Western common stock figured in this class
of buying. its enormous earnings for the second
week in February attracting a good investment
and speculative demand. Norfolk and Western
is a soft coal property that is making remark
able record Of earnings. Reorganized on the
basis of hard times. with interest charges ma
terially reduced, the company has been able
since its readjustment TO pay 4 per cent divf-
dends on the preferred stock, and IL is now in
a position where dividends on the common ap-
pear to be a matter of a short time only. All
OF the soft coal properties money
making basis, and ii is quite likely that
heavy demand for their securities will be a feat
ure in this years market. Wheeling and Lake
Erie issues increasing in actual value, and
the second preferred stock is thought to possess
great speculative possibilities.
Railroad earnings received yesterday well
worth the careful attention OF all operators in
stocks Louisville and Nashville with its gain
Of S1S6.000; Missouri Pacific. with $4,000, and
Norfolk and Western, with nearly $134o00 for
the second week in February, supply striking
evidence of the industrial activity Of the coun-
Try. The whole list OF roads reporting so far for
the nrSt Two weeks IN FEBRUARY, ana covering
about every section OF the country. present rec
ords never before equaled for the same time,
and in many instances show results never before
approached in any two weeks in the history of
the companies. In view OF the handsome gains
IN gross earnings. there is no reason to appre-
bend poor showing in net returns. despite the
increased cost IF operating and the big
penditures being made on improvements. The
dividend age is not over. and current earnings
mean increased dividends. and dividends
stocks that have never received dividends.
Money market factors may induce recessions in
stock values before long. and they should. of
course be taken into consideration, but invest
ment values are being made by earnings. and in
the long run stock quotations will prove the
measure of intrinsic worth. irrespective of money
fluctuations
The demand for funds from mercantile centres
is heavy. In January commercial paper borrow
ing unprecedented in volume. and outside
of syndicate transactions the heavy expansion
in loans last week and the week before was
chiefly due TO the commercial paper market
When merchants borrow heavily they are con-
adent that business prosperity has come to stay
for long time, and il bank loans increase I'M
der mercantile demand. il is easy to form cor
rect opinions the position Of the country IS
business. Holders of stocks, even the small
speculative holders. rightly believe that stock
market prices ought TO rule higher in order ade-
quately TO reflect the prosperity which is wide
spread throughout the country. It may be that
n the speculative public that does not own stocks
III is unwilling TO enter the market at the mo-
ment, owing TO fears Of losing money through
possible declines that the bear element may
bring about on the score Of falling bank re-
serves and the approach of a Presidential cam
paign. One thing. however, appears certain.
namely. that present holders will not sell at the
current level. There is sound argument that
suggests the sale OF well protected stocks. while
the other hand there Is every encourage
Inent for holding securities. Dealings were not
heavy yesterday, but buying came from sub
stantal houses, and prices closed very strong.