The Washington times., 1901-10-03
e. Decline. XEX-divldcnd
es of stocks. 4s5, 100 shares.
Goye,nment Bonds.

u S. "a 1, I9cO-so. O. J......... lIg II9h
U. S. s's, Z, 1903 o. F....-....- lc7a l0sh
Il 8 a. n 1865 Y C. 1854 1894
L. S. As, 1870. Q. J............... ll2a li3
U. S. as, len, Q. J............... li2t iiS
U. S. As, L, 1925. l3s1 ltOf
II 6 as r 1o0l los 100
L. S SIS, C, 1904. Q. F.......--.- los 'V'
The most disconcerting matter in the
present stock market, the only thing that
has any tendency to shake the commence
of the friends of higher prices, Is the
manner in which the industrial securities
have been sold off, one after another, our
ing the past few weeks. The railway ilst
has held its own eXcellently. Huctuatlng
within narrow limits and apparently no
more inclined to go off badly than TO ad-
vance Were the industrials out oil the
question it would be said with entlre CON
nd, nee that the outlook is eNcelient lot
a traders market FOR a few weeks longer,
and then for good advance IN prices,
when the fear of tight money IS out OF
the way The fact that the lndustrials
have been distinctly a weak feature o!
the market, and that they have gone CON
trary TO the general tendency, not all AT
once, but a number of them at different
times, recently. is worthy Of the closest
attention or the part of investors, wheth-
er they hold industrials alone or railway
scuritieS. The Steel securities nave been
a distinct exception to this tendency, and
this is important, of course, because not
only is the Steel Trust the greatest COM
pany in the country with the largest
amount of securities, but the steel indus
try is the most important in the country
after the railway industry.
But while these stocks have been firm,
the Copper stocks, Sugar Rope and Twine,
Republic Steel, Car Foundry, Ice Trust
and a number of others have been dis
couragingly and even sensationally weak.
her pf he flDGSihip
deductions must be drawn from these
facts. Either these companies were pros
porous a short time ago and have come
on hard times, or they have never been
prosperous and now the insiders are de-
Gliding that they Will not be during this
boom. If the prices of these securities
AT their highest were not too high for the
conditions of the companies they repre-
sented the inside selling in them since
must mean that the insiders know of poor
conditions recently developed. If the in
siders doomed the prices to a level too
high for real conditions their selling now
would indicate that they believe they
have made a mistake. The recent poor
reports OF some of the companies referred
to are circumstance in support of the
first theory. In any event the phenome-
non is not to be lightly waved aside
by any conservative student of the mar
ket.
Sporadic cases of weakness in Industrial
securities would not be worth considering.
the Flour Trust a year or two ago and
the break of so per cent in Tennessee
Coal and Iron reflected definite local con-
ditions, pertaining to those companies
only, and the greatest boom the market
has ever seen has come since that time.
in the present instance, however, so many
different securities, representing many
! different industries, have had theiI
sluInpS that il is hard to believe that
some general condition is not affecting
them all. What this general condition is
remains to be seen 1t is not necessary
10 infer, however. that the end of the
prosperity boom has arrived and that
the railway securities will soon follow
the industrials in a downward course to
( much lower level. That of course is
one of the inferences, but it may be an
incorrect one.
1t should be said in defence of the po-
sition Of the people that still look for Il
good market for railway securities dur
ing the coming winter, for prices indeed
higher than any yet attained, that except
for these breaks in the industrial securi-
ties the market is acting eXcellently and
that the business conditions generally
as far as they are reported by the eX-
pers are all that could be desired. 1t
is certainly Of the utmost Importance
falling off in railway earnings, but that
on the contrary the increases are greater
than at any time before. In the same
way the report OF the United States Steel
Corporation showing earnings at the rate
of S1lG.op0,000 a year indicates a wonderful
condition of prosperity. This amount of
earnings is equal to more than Z per cent
on the entire bond and capital stock val
uation of the gigantic company Looked
at in another wayHit is equal to more
than the interest on the bonds of the com
pany and the dividend on the preferred
stock for two years. The trade reports,
the enormous exports, the amount Of gold
in the country, and its big trade balances
with the outside world are all matters Of
Importance, and matters that seem en-
| tirely inconsistent with the theory that
| the country is in any way on the down
| grade
The American Car Foundry securities
| We're the weak features of the Industrial
! list yesterday. The common stock broke
! badly two points more, which is much
| for such quiet stock, and the preferred
| was also extremely weak. In this case
| the report of the company, showing net
| earnings much less than was expected
| and comparing badly with the same
months a year ago. seemed to be the
chief factor. The officers OF the com
pany explain the report by the state
ment that the strike against the Steel
Trust made 1t impossible to get materials
and that the work Of the company was
much delayed on this account. They state
further that the concern Is 90 hg very
prosperous business at present. 1t may
be said Of this particular instance that
the break in these stocks came after the
announcement Of the report and not be-
| fore as has been the case with other in
| dustriaI securities This is a point in
| their favor. If the insiders consider the
outlook for the company bad. they would
| have sold out their holdings before giving
| the public any knowledge Of them. far
| as possible. II seems possible tEat the in
| siders may be holding their stocks and
| that the break Of yesterday may have
been due to selling Of public holdings, or
/ to short sales.
| Brooklyn Rapid Transit was extremely
weak Yesterday. getting below so at one
! time and closing only fractionally above
| that level The break in this stock is not
| a new thing. The public has become ac-
| customcd to IL during the past month or
| two. The slump yesterday seemed to be
| mostly due to short selling. based on the
fact that the August report OF the com
pany IS somewhat delayed beyond its
usual time of appearance. II Is not to
| be thought that the entire break has been
caused by shoit sales, however, and there
| is "A suspicion that some important line
| OF long stock has been marketed recently.
| The best Of the railway securities yes
| to-day was Atchison common. which ad-
| vanced at one time to a and closed with
| no net loss for the day. The rumOr of
| an increase I'm the dividend rate to =
| per cent semi-annually was heard. The
| directors were to have met yesterday. but
! no quorum obtained and thz meet
| ing was postponed. II is not considered
| in the least likely, however. that any
| change in the rate will be made at this
| time. The management of the company
| is a conservative one. and. despite the
| fine showing made in recent earnings
No Other for Years.
"our family use sozodont fer Nr
| the teeth and have not used IA n
and ether powder or liquid for III,
| wears" @VVu