The times., 1901-06-04

selling after the SharpeSt advances. Sucn
| a strong market after the fine showing
! of last week filled the street with enthu-
| siaSm, and the talk at the close yesterday
| was generally of the most optmlstlc
! character. 1t was suggested by the bulis
| that the money situation Is easy, that eX-
| ports of gold to London are probably over
/ for the present that London is again buy
| ing American securities actively, that the
/ Northern Pacific feud has been settled
amlcably, that the insiders seem to be
! buying stocks heavily and perSlstently,
that MIR. Morgan will soon be BACK In
this country, and finally that railway
earnings continue to increase and in
creased dividends are likely during the
coming month or two.
With all this bullish gossip and with
prices of securities advancing without a
tremor, it is nevertheless very certain
that stocks should be bought with the ut
the market again and this one thing is
undoubtedly what the insiders nave
wished to accomplish with their tax OF
fine developments and with their strong
, market The end of the boom will be a
transferrence of stocks from the hands
OF the big inside interests to the puDlc,
All bull movements end in this way. 1t
may be that this end is not far of now
The recent panic showed In very posi-
tive and a very painful way that breaks
do not come after the pubic mas SOLO
out. but before; that they do not herald
themselves by a diScOnunuance OIL pun
gossip but rather by the redoubhng oil
fine Stories about the market. In other
words, the public continues to BUY STOCKS
and to believe that boom is at It's best
when in reality it is on its last legs on
the brink of a precipice Prices are very
high higher than they ever were before.
In many instances they are considerably
higher than seems reasonable TO careIul'
modest people.
Purchases should be made only in those
stocks that have not participated TO thelr
faiy a-ta n
time. And even then they should be maze
only on the reactions, In such list the
anthracite coalers are included by nearly
all careful people. The Reading securities
yesterday were among the most buoyant
and entirely satisfactory IN the ist
They advanced to the best prices yet at
tained by them, and more important per-
haps they made their best record in the
afternoon, when many other securities
were recedng from their highest level
a number of reasons might be assigned
for this activity and strength. The Read
ings have not reached a prohibitive level,
even with conservative people. The pre-
ferred stock has been selling where 1t
yielded 5 per cent or more on the invest
ment. while other railway securities nave
been on a basis of to per cent yield.
The stocks have been held back by tech
nical causes that did not in the least
argue against their intrinsic value with
well Informed people. The coal business
is in excellent shape. A boom has been
expected in them. Yesterday IL seemed
to be the idea that the return of Mr..
Morgan from Europe viii be bullish
argument on the stocks and that they
would be advanced well by the profess
sionals before this event takes place.
Reading first preferred advanced TO Sel2
and closed at the top. 1t was only
point or two above this level before the
panic The common stock also advanced.
Caution should be exercised in buying
these securities on a bulge, as they are
manipulated skillfully and sometimes
make all the gain of month In one day.
on reactions, however, many shrewd peo
pie consider them good purchases.
The Copper securities were active and
at times showed much strength. Anal
gamated went up to 1928 and closed at
the top. There was no news regarding
them. Nothing was done at the meeting
except that William Rockefeller was
elected a member of the directorate.
Union Pacific Southern Pacific, and
Pacific Mail were features of the market
and the street generally was inclined to
associate their movements. One story
told was that the Union Pacific people
were buying both Southern Pacific and
Pacific Mail. This was doubted by others
in view of the statement made on good
authority last week that the GouldS are
likely to get the Southern Pacific in the
division Of spoils in the West Union
Pacific advanced to 1151z and closed at
1147s, Southern Pacific advanced TO 595s
and closed at 59is. and Pacific Mail bulged
49,
closed at IL. These movements, like all
the others among the Western railway
securities are controlled by insiders who
know what is going on. The outsiders do
not know and are at a distinct disad-
vantage, which many conservative people
will consider prohibitive. 1t may be said
that st. Paul and Union Pacific are not
selling at too high price If the com
munity Of interests plan Is TO go through
perfectly and if these two systems are to
get their share Of the benefit from it. 1t
az ~aaA n NfEgrs
stocks are at too high a level If there is
to be any hitch in this most remarkable
and complicated business. Such high
priced securities are investments and
speculations for millionaires strictly.
The Gould securities were even more
buoyant than the Hartman issues. Mis-
souri, Pacific doomed up from III to l16
and IL closed at 115%4. Texas Pacific went
as high as 5gl5 on very heavy buying and
closed at 30 Missouri, Kansas and Texas
net gain for the day. The same might be
said Of the Wabash securities. One of
the street stories yesterday was that in
tn reorganization Of the railway may
the Goulds may not get the Wabash after
all. 1t was said that the Pennsylvania
will buy not only the Wabash, but the
Wheeling and Lake Erie The rumor is
interesting. but there Is no way OF veri-
flying it. The Wabash securities have not
been as strong for the past few days as
some other stocks Of the Gould group.
j
fourth week Of May increased S3S. .762.
New York Central was slow. 1t had
no advance for the day. The directors
yesterday declared the usual II per cent
quarterly dividend on the stock. There
had been some talk, without any known
basis. Of a possible increase in the rate.
President Newman OF the Lake Shore,
was elected President of the Central at
the directors meeting. The New York
Central for the quarter ending March 81
had surplus after fixed charges of
81, 466, $50, compared with Sl,392,5l5.
There was a fair strength in the United
States Steel securities all day. The com
mon advanced 20 5ZSs, but declined later
to sig, the low price. The preferred
went as high as 1903 and then declined
to Jy7s. The Flower people were said TO be
buyers Of the securities on a large scale.
The Pennsylvania Steel securities were
that the United States Steel people were
the buyers. 1t was said that the Penn
sylVania company viii be absorbed by the
big trust. No official foundation for the
story could be learned.
One of the tips in the street was that
Tennessee Coal and Iron is likely TO have
a sharp advance. II sold as high as 62%
at one time. but closed at 6l14. the open
ing price. Colorado Fuel and Iron ad-
vanced to 10224. and closed at the top.
Washington stock Exchange.
Sales-CapitaI Traction As, 3GJ0qIoSz4;
Washington Traction and Electric 41zs,
q. .GJoT652.: United States Electric Light,
debenture IS, 7O0HlWM; United States
Electric Light. certificate 100di034s Capt.
tai Traction lG0l03H 20lt103is; Mergen-
112: Lanston Monotype, 200dl3S4, 15OGl3A.
A f+ar cqft- C4Dital Traction As y ODJd iGg.