New-York tribune., 1901-03-15
RECORD PRICES FOR RAILWAY STOCKS


For the first time since these records We're
compiled on the present basis, about twenty
years ago, the sixty most active railroad securi
ties have risen above $50 a share. Accurate
comparisons with earlier dates are not posi-
BILE and conditions have changed to such an
extent that even If approximate figures were
available they would have no meaning. In re-
cent years. when an active stock has been alb
sorbed or gone into the class of guaranteed
stocks another security of similar value has
been substituted. so that the record is fair one
running back to the imitation OF twenty years
ago and its subsequent disastrous reaction. II
is not possible yet to find any indications of
a setback The outlook is most encouraging
and The only cause for conservatism seems TO
he the obvious fact that prices have had
phenomenal advance. While men in Wall
Street hold 1t almost an axiom that what goes
up must come down, they are extremely eau
tious about acting aggressively on the short
side of the market. The indispositon 10 as
sumo obligations of this sort has grown out of
heavy losses sustained during n succession Of
efforts TO resist the upward movement. The
markets course during the last six months has
defed all precedent, and representations based
on former records have proved wide of the
MARI.
II Is difficult n comprehend the marvellous
advance of the last few years. on August s,
1896. the average Of sixty stocks was $40 Il.
The lowest point in 1897 was S45 Ga; in 1898 it
was So ~: In 1890. SCI 2s; in 1900, SOS Is, and
in 1901. thus far, $SI 36. The present average
is 800 o. or 12l.2 per cent above the low rec
ord. This phenomenal increase in value of rail
way shares has not been accomplished by
manipulation II is the natu al result of stead
;I,-o u. Nd iol,
reduced expenses in many ways. Destructive
competition and rate cutting have been abolished
through wise consolidation. Few shares were
paying any dividends five years ago; now ii is
the exception where n dividend period is
freight business is done, many sections of the
country suffering congestion through lack of
Transporting facilities. Each weeks statement
of railway earnings shows a good gain over
the corresponding week in previous years and
there is every prospect that such conditions
will continue. since general business is at the
point of greatest activity and expanding. An
item OF Importance is the phenomenal position
of the iron and steel industry, which taxes the
capacity Of railroads. and in coke regions the
output surpasses all records. which means un-
preCedented tonnage for the carriers in that
vicinity. Employees receive such satisfactory
compensation that labor controversies are al
most unknown, and even the turbulent coal
miners have less excuse than usual for agita-
tion.
While the outlook is bright. the speculative
market is uneasy because of the gradually de-
clining bank reserves. Each week the Treas
uvy takes funds from the banks and there is
little prospect of better things until about June
l. The reduction of taxes goes into effect on
perceptibly at least month earlier. Moreover.
the bank statement is no longer an Indication
of the available supply of money. since the re-
serves of the trust companies do not appear
and they have become an important factor
No stringency is anticipated by the best in
formed men in the money market, for plethora
of funds at the West will make demands on
New-York for crop moving unusually light this
season.