The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-01-13
IN THE STOCK MARKET.
Yesterday Vas anolher Record Pay for
Transactions.
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RAILROAD STOCKS FURNISHED ACTIVITY
business I'm the stock Market fol
Last Week Eclipsed All
PREVIOUS Records.

down In wall street as one OF the record
days VII oh have become 50 frequent OF late.
Speculative sentiment took on the nervous
high-strung characteristics which have re-
Gently caused wide and excited fluctuations
in some stock or group OF stocks, which were
affected by some important development or
q rumor OF some development Today It
was the local traction group led by Manhat,
tan. The erratu fluctuations OF this stock
made IL evident that the violence OF the
movement was in great part due to the ex-
istence OF large short interest which mani
tested acute distress on the advance VIII ch
carried the stock up W. points with a sub
sequent relapse OF points. The sudden ad.
vance in the local fractions was taken ad-
vantage OF for very heavy real. zing Ril
through the list, ard when Manhattan itself
gave way the whole market broke rather
sharply, with the result that the closing was
Geeiuediy weak ana with net losses prodoul-
mating over GAINS. Tie early market was
strong ana nan,alned unaer the c0nttnu-
ils influence o. me advance in the Delaware
ana HUDSON dlv.s.on and the large ana con-
centated buying IN that STOCK and otners
OF the anthracite group.
After the realizing movement invited by
the opening ADVANCE the bulls rallied The
market and brought forward new points ot
strength. The coalers, Union pacinc. Bal
Ignore and ono, the grangers, TN plate
had periods OF Strength
After the late realizing movement steel
STOCKS developed spec al weakness on the
fears OF war OF competition between the
sreat pewets IN the made. The reaction IN
DelaN are ana Hudson was on. The in
q ease OF Sll,biS,50u n the cash depos. Is OF
the banks was unexpectedly large ana the
increase of little over S4,G0O, 600 IN the loans
was unexpectedly small, to the bcneht OF
surplus n both cases. But the bank state
hsnt was taken advantage Of to realize.
ID A trfnt.a tatslt 4aI
next week. Wall street declared that ar
rangements had already been made for a
shipment on next Wednesdays steamer.
ne business in stock tho past week has
ecipsed all previous records. Following the
unprecedented trade OF Friday and Satur-
day OF last week which reached the hign-
est records for a full days trading and
Saturday half day. the aggregate sales on
N may were lfted well ABOVE the 1000 600
shares level for the first tine IN the history
OF the New York stock exchange. Uni Ike
the great bull market OF two years ago IN
which the newly Hedged industrial stocks
n age the bulk OF the trading, the present
market is distinctly one OF railway stocks.
and the industrials play an ms gn acant
part. The immediate iinpelling cause of tho
r Sc is IN the growth OF the community oil
interests policy among the railways. The
purchase Of the Pennsylvania Coal company
for The Erie, the purchase OF the Central
railway Of New Jersey fopthe Reading; The
appearance az the Erie directorate in coir-
munity of interests that have been rivals
In the railway field in the Northwest the
requirement of st Paul stock by j. j. Hnl
of the Great Northern, are the concrete
factors from VIII ch Is inferred general
adoption OF this policy among IA lHay IN
terests Countless rumors AaSe circulated
OF other plans in process OF execution, but
these are the only well authenticated de-
veopments.
/ The Importance ef this development MS to
/ the last or the latest step in the rehabli,a-
( ton OF the railways Of the country by I'M
4 sur.ng ma ntenance OF freight rates can
I only be understood by a comparison Of con-
ditions in the world with,fthosc OF q few
years ago. Then there wasba pre,ty general
/ condition OF bankruptcy AID wreck among
/ the railways OF the country. The problem
presented was complex aud formidable.
Bonded Indebtedness was ulwiedy both by
/ reason OF unscrupuous riintlon OF capital
issues and the high cost OF construction and
material in the earlier periods. The con-
structicn was so fimsy In many cases as
to keep the annual cost OF maintenance and
repairs up to a high level OF expendit ure.
Rate~wars reaching the point Of eNtermina-
down TO an Improbable level and The struc-
ture and equipment OF railways made them
inefnclent Instruments for eheap transporta-
ton. Even the growth OF FIRE eht business
attracted by the low freight charges there's
for could not be taken advantage Of. Only
expert railway men are competent to H.
ders and the marvellous Increase in economic
efficiency Of railways as instruments OF
transportation by better equipment, i'm
provement Of operating methods and perma-
net structures, cutting down ANIMAL
charges for repair and maintenance. w tn
ctmpetlt on constantly forcing The freight
rate downward the keen rivalry in the I'M.
provement of facilities, the early increases
OF earnings were practically ell reinyasted
in improving the property. Stockholde g.
hores of sharing profts were thus long de-
ferred
A perusal OF annual reports OF the great
railway systems OF the past few years shows
how large are the amohnt Of current EARN
ings used for permanent improvements and
betternents. and which may justihably be
expected TO result In reduction OF annual
charges In the future. Moth ng has served
to check the obstinate downward course OF
Discrimination. The Federal government
the observance OF uniform rates by enact ~
the Interstate commerce law. But the ant.
trust law at The same time made It pun.
lshahle offense for corporation to form al
~ erTrrt rpon rates Tor charges. Sush Il
the deep seated foundation on which h'
TT nj uppreceoene e. hVying OF railway
stocks Is founded. Sh-ud speculation over
run actual conditions, the fact would be IN
lne with all his DRY. The lesson from al
human precedent would be repeated Blu
the fact OF speculat We imitation followed b.
| react on does not alter the impressive i'm
provement in conditions which has proved
the Incentive Tor the speculat on,
The depsud for bonds has been large. tu
b. no means surate With stocks, al
'her level Of value has been more accurately
known by reason or the fixed Interest re
turns.
a