The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-18
STOCK MARKET COMMENT
Optimism Now the General Rule
In Wall Street.

The Necessity for Buoyancy While
the steel Trust Is BEING FIonted-
Prosperity i'm the Northvest-The
Struggle in Mexican Central.
NEW YORK, March 1.-THE stock mar
ket continues to confound the pessimst.
The signs of a reaction which We're mani
Tested about two weeks ago and which
Encouraged the bear forces to activity
have disappeared The bull movement
has again developed and many new rec
crds in the low-priced shares have been
made. There seems to be no abatement
OF the public interest in stocks, while the
strong interests are committed apparent
~ TO their support. Nothing more than a
recession of & few points is now to be
expected in the near future.
There are many reasons aside from the
strong economical position of the major
ity of low-priced stocks and the general
prosperity which exists throughout the
country, which is reflected constantly in
the heavy earnings of the railroads and
The thrift of the Industrial corporations,
Rhy there is not much probability of the
bears being able to successfully raid the
market. Chief among these is the fact
that the success of the great steel combi-
nation depends almost entirely upon the
continued ease of money and the tran
nuillity and confidence in the financial
world. Even with these assured some
people express doubt as to whether the
syndicate will be able to carry out its
enormous scheme. The syndicate people
have found much lack of cooperation
among the minority stockholders, and I'M
less they are able to amend the laws of
N-s.~n=
wipe out those guarantees of protection
to minority interests which have made
the State of New Jersey the favorite
home for corporations. they will have
diiileulty in carrying out their plans to
successful contamination. There are some
ugly stories in Wall Street as to the limits
10 which some of the projectors OF the
zeal are willing to go in order to get the
necessary aid from the New Jersey State
Government
The prosperity of the Northwestern
roads continues 10 increase. and the
stockholders are reaping rich benefits
from their uneXampled thrift. A high
authority has broadly intfrnated that if
present conditions continue it is not I'M
hkely that there Will be a still further in
crease in the st. Paul dividend next fall.
both classes of stockholders are favora-
permanently on a per cent basis for the
reason that when this allowance has been
made to the common stockholders the pre-
ferred and common stocks share equally
upon all surplus remaining.
The only discordant note that has been
.ieard IN the Northwest are the predic-
tlons OF great falling off in the grain
tonnage of this spring as the result of ,
the Damage to the spring wheat crop by |
last seasons drought. These stories are ;
now said to be greatly eXaggera ted
Another Northwestern road is about tn 1
cut very juicy melon as Wall Street I
describes the stock distributions of the |
day. The circular announcing the terms !
Of the Great Northern stock distrihution |,
Is expected momentarily. and IL is said |
that each holder of loo shares of the old |
STOCK is TO receive twenty-five shares Of /
the new issued at So. This is much moro /
liberal than Wall Street has expected IL |
has been generally believed that the new /
stock would be sold at par to the stock |
The struggle for control of the Mexi- |
can Central Railroad between Boston and |
New York interests was one of the inter-
esting features Of the past week in Wall |
street The securities of this road have /
made new records, and the buying has |
peeh distributed among the most promi- /
neat commission houses of the street |
There has been increasing dissa tisfaC-fiou
on the part of large holders of these Sc
curities with the management over the
failure of the latter to show the results
tiAfAt rl4Vulh tne large IN
crease in gross earnings and the material /
improvements that have been made to the |
property.
I ne increase of $4,000 in gross earn
ings since 1895 has not been reflected in |
q corresponding increase in net earnings |
and the management is severely criticised
Tor its failure to reduce the cost of opera
ton to reasonable percentage. II is
justly claimed that obsolete methods are !
still in force, and that the present man
agement appears unable to realize the
necessity OF operating the property by
scientific methods.
1t is understood that at least two new
directors VIII be elected TO represent the |
New York holders. and 1t is probable that |
an effort will be made TO remove the
headquarters of the company to New
York. This would not only result in a
material saving, but as this is now the
principal market for the securities. 1t
would facilitate the transfer of the stock
aud bonds. and establish a broader and
more active market for the same.
The management Will also be called
upon to explain the disposition of the
earnings in n more satisfactory manner
than It has hitherto done.