New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-19
High. Low. lFeb.17 lFeb 10 chgsI Sales
THE WEEK IN WALL STREET.


out the week. but the absence of heavy public
buying and the aggressiveness of the bear ele-
Tnent caused an irregular price movement. and
in many net losses compared with the
preceding week. Stocks, however remained In
strong hands, and confidence in higher prices
was mistaken. There is less reason to sell stocks
than there month ago, and conditions
governing the actual worth Of securities suggest
that there will be still less reason to sell
month hence. The money market may rule
higher before long, and stocks may in conse
Quence be temporarily depressed, but long
conditions underlying actual values do not
change there need be no uneasiness IN invest
ment circles.
The money market is in a sound and healthful
position Speculative conditions are sound and
stocks selling up to their intrinsic worth.
There are no essentially weak features in the
situation.
The fact that general business continues
larger than ever at this has upset the
calculations of the prophets of reaction. With
railroad earnings smashing last years heavy
records, with the country's foreign trade run
ming heavily in favor, and with general in
dustrial operations prospecting never before,
the bear stocks may we'll feel dsconsoate.
Tears over the money market should be set aside
after reading the report of foreign commerce in
January. Uncertainty over the ability of the
succeeded by confidence after examination
of the enormous gains reported in gross returns
In January, which, compared with a record
breaking time in 1899, gross earnings increased
20 per cent, and in the first week Of February
over Is per cent These are factors which will
find due reflection in security values in time and
the current comparative dulness and irregularity
in stocks should not be considered indication
of a change in the conditions which determine
ffo Of t,lo+i,
sentiment was affected last week by the wide
fluctuations in Third Avenue Railroad stock and
in other issues which were under the influence of
manipulation or special influences not affecting
their investment value.
The most important industrial development of
the week was the evidence presented in the suit
brought by Mr.. Prick against the Carnegie
company. showing the profita bleness of the iron
and steel trades in the country last year and at
the present time. And further evidence of the
growth Of prosperity in these trades fur
nished by the Federal Steel statement, which
showed net earnings amounting TO over S10,-
100000 The profits of S21,O00,0OO by the Car
negie company, 10,500,000 by the Federal Stee
Company and $13,362.0 900 by the American Steel
and Wire Company disclose a remarkable and
extremely favorable commercial situation. New
nigh records are being made this year in iron
and steel, and all indications suggest that this
country will not only be able to maintain its
hold OF the markets Of the world, but strength
en- it The demand keeps pace with production
Careful study Of the iron and steel business en-
courages the belief that the prosperity of 1895
has not been checked and that 1t will reach a
still higher mark this year, while equally en-.
courag1ng conclusions will be formed regarding
all other industries. Stock market traders who
are unable to weigh the value Of current devel.
opments in the commercial world see little rea-
son for bullishness on stocks, but it is a note
worthy fact that the chief owners of stocks are
the men who are engaged in promoting the
countrys business welfare and that ever since
the beginning of the year a slow price enhance
ment has been going on in securities.
The Baltimore and Ohio company placed its
first preferred stock a 1 per cent basis las
week (the first dividend since the reorganization
of the property and the Canadian Pacific in
creased the dividend on its common stock l pei
cent The Federal Steel Company established
fits common stock on a per cent basis. and il
the preceding weeks the Reading and UnioI
Pacific companies declared dividends ION Read
ing first preferred and Union Pacific common)
These developments represent growing value II
railroad and industrial investments, and they
naturally create confidence in the minds of al
intelligent believers in American securities.
There industrial stocks and railroad stock:
which are selling at ridiculous prices in view Of
their earning power and future dividend posi-
bilities. Industrial stocks not all bad, as
some people evidently suppose, and if discrim-
1nat1on is exercised IN their purchase the buyer
IS not likely to find that his money has been
wasted. The cheaper stocks will sell higher
If their market quotations TO represent THEN
intrinsic value. Stocks such the cheap priced
steel issues Norfolk and Western, Ontario and
Western and the Mexican Railroad stocks, are
destined for better prices Regarding the last
named issues, II is interesting TO note that
heavy buying Of the bonds has been in progress
for some time and that both the Mexican Ma
tional and Mexican Central stocks are being
picked up by careful class Of buyers. Mexico
like the United States, is growing in industrial
prosperity and when the republic is placed
upon gold basis-as it most certainly viii be
some day-the Mexican Railroad securities will
take rank with high class investments Of the
country.