The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-24

the great boom in wheat-2o cents advance
in as many days. 1t need not be said that
these things should cause the price of good
dividend paying railway stocks to tumble
in price. 1t need not be acknowledged that
the intrinsic value of good securities is any
less than it was during the high price
period OF last year. 1t may be said how
ever, that nothing else should have been
expected than the break
The bears grow more aggressive every
day. Also they grow more numerous. The
speculative public is selling stocks now as
much as it ever did before. The enthu
siasm on the short side is almost as great
in degree, if not in volume, as was the
bull enthusiasm of year and a half ago,
Just before the great crash came to the
bull campaign. This suggests that the
end OF the slump is near. Few feel like
predicting it now. but few would be sur
prised at a change for the better at any
time. Yesterdays staple markets looked
very much like a elimination. There was
almost bear panic in wheat and great
boom in cotton as we'll. The advance over
night in July wheat was to 81 cents. The
top price was SIS. A tumble in the prices
advance, would be good time for an at
tack on the shorts in stocks. And it is
recognized blythe careful market people
that the general business situation is i'm
proving; that it has not at any time been
nearly as bad as ii was painted There
has been at all times recently investment
buying of stocks. This buying will now
increase in volume. There is excellent
reason for it at the present leve! of prices.
Two or three things in the business sit
uation are especially worthy of comment.
One of these is the continued increase in
railway earnings in June, contrary to the
persistent predictions of the bears, id
even contrary. perhaps, to the rtcSnt ex-
pectations Of people generally optimistic
The railway presidents themselves have
been quoted, many of them. as saying t. at
earnings should naturally decrease. During
the second week of June there was an
increase in gross earnings OF mere than II
per cent. OF the sixty-seven lines that
have reported all except ten show in
creases. The ten unfortunate lines average
decreases in earnings of less than So eco
each. The total earnings of the SIX y
seven lines were sS.9L7, 290. The Increases
were S997.6 ga. The decreases were 1897.
The balance in favor of the Increases WIS,
therefore. S96S,e97. or 1920 per cent I'm
portant among the gains we're those CT
ST. Paul, s45.c00; Mexisan Central. so 0oo;
Norfolk and Western, $4,000, and rth-
ern Pacific ss7.2o2.
Another most significant Slowing is that
made during the week by the Tennessee !
Coal and Iron Company for May, AMI an
unofficial statement regarding the May
business of the American Steel and Wire
Company. The increase in the surplus OF
. IT.. ..Ny-1
the month. after all fixed charges, was
s237 eco. From January 1 the increasa in I;
the surplus of the company was LII, 500. |
The net earnings Of the company for tie |
first five months of the year were sufficient
to pay the full per cent dividends n /
both the preferred and the common stocks I
for six months and to leave in exec /
si2201 Or, in other words, while the
talk of the bears is of ruin to the iron
and steel trade. of no business. and prces
being cut below the profit limit Ii is shown
that the Tennessee Coal and Irel Company
is earning at the rate of million dollars
a year in excess of its dividend require
ments.
The American Steel and Wire statement
is quite as good. Perhaps it should b. called
better as it is more unexpected. Everyb 5dy
has believed that this company was in a
bad way from loss of business and loss of
profits on the small business done. 1t is
said that even the insiders themselves a~e
by the showing mGd2. The cam
ings of the company for May were $780,
coo. The total for the five months to the
end of May were Sc. 300, 000.
What has actually occurred during the
past three weeks of depression in stocks
and initiation in wheat and cotton prices
may be seen from the following table.
No y,rin rvi,- hoe fta oil n |
IN Saturday. June :, and at the close yes
tn rday.