New-York tribune., 1901-06-03
High Low June May25 Ch'Fes. Sales.
80 wEEK.s orERATIoNs IN sToCKs.


.Ez interest.
TIE WEEKS OPERATIONS N STOCKS.
The course Of security values last week was
favorably affected by a number Of important
developments Of direct influence upon values
Prices were strong in the greater part of the
week while the volume Of trading showed an
expanding tendency. with distinct Improvement
in the character of trading. The fact that no
Northern Pacific stock appeared in the collateral
against the new Union Pacific collateral per
cent bonds induced the belief that the differ
ences regarding the control Of Northern Pacific
had been settled. and as a consequence specu-
lators began to buy stocks in expectation OF an
announcement of agreement. on Friday il
officially reported that the contendng in
terests had adjusted III Union Pacific-No-.'.. n
Pacific dght. The effect Of this adjustment on
the Western railroad situation is expected TO be
OF vast Importance, particularly as regards the
concentration Of control "A community of in
terests policy among the Union ana ,--~.hern
Pacific roads. ST. Paul. Burlington. Great North
ern and Northwest. Stock values naturally rose
under the influence Of the announcement named
Sentiment became more cheerful operators who
were frightened from the market by the panic
Of May . showed dispo-.:iOn TO return TO Wall
Street and strong financial interests again lent
their support to trading. The financial i'm
portance Of the recently warning banking and
railroad capitalists sufficient to unsettle the
investment situation by a prolonged contest over
the Northern Pacific affair. The fact. therefore
that the fight has been amicabIy COMPROMISED
adds investment as well as speculative value to
American securities.
Enormous net railroad earnings for April and
big gains in gross for the three first weeks in
May contributed to the better feeling in Wall
street An instance Of the growth in railway
traffic in the Southwest WAS presented by the
Southern Pacific's report for April showing
gain in gross earnings of over 81. 400 600 and in
net OF over S70oO00. For the ten months OF the
fiscal year gross earnings have increased 81 O64
"''I and net earnings S3.G5s 794 Last year the
road showed surplus after charges of s.. 7.2J3
t5e, or less than per cent on the stock. At
the current rate the surplus for this year will
equal g per cent or better on the stock. Rut in
connection with this it should be borne in mind
that enormous expenditures are being made on
the property out Of earnings and that the per
centage Of operating cost to gross earnings is
nigh. In view OF the prospects of the Southern
Pacific and the sound management in control
the stock is one Of the most attractive railroad
issues on the list for long pull. Southern Rail-
Eay issues are also attractive to hold This
company is now earning well beyond > per cent
prospects al rba
rate viii be increased in the fall TO a : ner
cent basis. For April Southern RAILWAYS net
earnings increased S7sGG2. Other noteworthy
gains reported in the week were Alabama Great
Southern Sl6-579: Mexican International SIT
I46' ST. Paul, Sl3,341; Union Pacific. S7SosG.
and Fort Worth and Denver City Sl76IG. 81
Louis and San Francisco. S70.1SO; Louisville
and Nashville, S2l.521; Lehigh Valley. $50 261.
Fan Antonio and Aransas Pass, $43,9S2; Atchi-
son. SAB 5GG
Regarding the advance in Atchison common
stock. it should be noted that despite the big
earnings OF the road. and its sound financial con-
ditlon, price above So is not cheap for this
issue. The same criticism may be applied 10
various other railnoad issues that have run be-
yond their actual worth Lackawanna stock
for instance, which has recently advanced over
- points, is selling far beyond its investment
value No prospective melon cutting or change
OF control Of the road would warrant a price of
-+o Tor this security. Various theories have
teen advanced 10 account for the movement in
l-ackawanna, but no news has developed regard
ing the property. II may be put down as quite
certain however. that control OF the road has
not passed TO Gould interests. Lackawanna AT
us current price yields less than 3 per cent
securities which are founded on the industrial
acuNlnes OF thus country should be attractive
10 investors. The investment yield on solid pre-
leFred Industrial stocks is greater than on the
average railroad security. and for this reason
there Is growing disposition among careful in
Nestors 10 buy the good q and per cent issues
mat are now at a level when the yield runs from
TO 10 per cent. ~
Inc various developments Of the week includ-
ms the Supreme Court decision. should be ef-
LeclNe Il market influences in the current week
Nold exports this week Will probably have no
more effect upon prices than last weeks ex-
ports had Money market conditions ars no,
L.Aey 70 become troublesome. and as far as
- shipments are concerned there is Of course
10 r@'-son Tor alarm, as the amount exported Ia
S@ooh @ mace up by Increased gold production Since
January gold TO the amount of about so,
aetEai net loss in gold holdings has been about
80 OWING 10 receipts from the Western