The Washington times., 1901-09-05
Govern ent Bonds.

Bid. Asked.
T. e e: e. e. isSS-5S Is$SsS j il iSs lS5 1ss 'ss
I. $. SIS. r, 1905. Q. F.......... i9sa les
7 u. s. 3's, r, 1905. Il. C.......... 1OsS IG9
| u. S. As, 1906. Q. J............... liz ll2h
| L. S. As. 1895, q. J............... lib li35s
| l. $. IS. r. l925.................. i3l 10
| I. S. As. c, 1898. iS1 l5s
! L. S. SIS. X, l90I................ l0I4 l,sh
I |. 5 SIS, c, 1891, Q. F........... IVA JUS .
! The inside interests in the stock market
! yesterday afternoon turned the current
from what looked very like the BEGIN
! ming of a decline into an excellent rally:
During the morning business was dull
and alncst exclusively professional, with
irregular fluctuations. but quite as many
declines as advances. The tax of the
monetary situation was pessmistic and
the street had begun to believe that II
the important interests had any idea OF
boom they had given it up until a more
propltiouS time. after the shipments OF
money to the West and South had ceased.
+ The only hopeful sign in the situation,
from technical point of view. was that
the holdars of stocks did not seem in the
least inclined to sell. This has been one
of the features of the recent little break
in prices. The decline was caused by
short selling and by some pool liquida-
tion. IN the absence of strong support
from the inside interests Yesterday at
noon the support before absent suddenly
appeared. with the result that prices went
in an important way. The look of the
market was more encourag ging than il has
been for several days.
The monetary outlook is an interesting
one, and somewhat complicated. There
is every reason to suppose that the calls
for funds for the moving of the crops Will
be large this year as last, despite the
Shortness OF the corn crop. This makes
ii a fair presumption that the banks Will
show poor statements for some weeks to
come, both as 10 cash holdings and as to
reserve surplus. 1t is entirely likely. how
ever. that this condition will be somewhat
mitigated by the inflow of gold from Eu-
rope as we'll as that from Australia and
the klondike. There are those optimistic
enough To predict that there will be no
actual stringency this autumn. 1t would
seem that while these facts may prevent
any big boom a; present, they should not
cause any great uneasiness among con-
servative investors and speculators There
is not likely to be any break of impor-
tance in prices, at least. II the insiders
do not wish one And the indications all
are that they do not Such being the
situation. some Of the best of tie COM
mission houses are advising conservative
purchases of stocks on the reactions, for
the present.
AS to the actual underlying conditions,
the factors that will determine the course
OF the market over any extended period
of time it should be said that they ap-
The railway earnings reports now coming
in illustrate one of these conditions in n
remarkable way. These reports are week
ly, monthly, and annual September is
the month in which the greater number
of annual statements are published. In
the last week of the month and the
few days following. nearly all the state
ments for the previous month appear.
Thus every day now gives new facts re-
garding the wonderful prosperity of the
railway business. The weekly reports for
rosy so far. Lest years business is shown
to have been the largest on record, and
vet this years is beginning to eclipse
last year with big strides. This is one
er than ever before. 1t is one reason why
some of the most important people in the
financial world are buying railway stocks
at level that would have appeared ut
terly out of the question two years ago.
During the past four years both gross
and net earnings have increased from 50
to 100 per cent. In the same period the
dividend disbursements on the important
securities actually have more than
doubted. But this does not tell the whole
story by a good deal. 1t is estimated that
last year from 30 to so per cent in excess
of actual operating cost was charged by
the companies to operating expenses"
/ his means that net earnings were in re-
aiity much larger than the official fig
ures, but that the managements consid-
cred it the soundest policy to put the
money into betterments. under the head
of maintenance rather than to call ii
net earnings. In the same way, of the
surpluses officially shown by the COM
nanies. a large percentage was put into
extensive improvements. Dividends have
doubled in the past few years. At the
same time, il is safe to say that the
amount paid in dividends could have been
doubled again without pinching the sur
the policy in vogue in Great Britain OF
paying out everything in sight to stock
holders In the good years. Careful people
are making such observations of condi-
goes a long way toward explaining the
confidence shown in the increased value
of railway securities.
The grangers were inclined to weakness
in the morning, but later in the day ad-
vanced well, and at the close all showed
net gains. Rosy reports from the agents
of the St. Paul regarding the crop out
look. the earnings of the system during
the fourth week Of August, which showed
a large increase. and general earnings re-
ports were all responsible for the change
of sentiment regarding the stocks. Chi
cago Great Western was especially buoy
ant, getting nearly TO Is. and closing al
most at the top with an important net
gain. In this case talk of extensions Of
the line into the territory OF the other
granger systems and counter talk regard
ing negotiations for getting the system
into the community of interests deal in
said by one authority that the Morgan
Hill people will purchase the system at
President Stickney's terms, which un-
doubtedly would be at a higher price level
than that now ranging for the securities.
Several of the industrial securities were
strong, among them the United States
Steels the securities of the independent
steel companies. Leather preferred, Peo-
pies Gas. and Amalgamated Copper. Two
or three matters were discussed in con-
nection with the advances in this group.
The announcement is made that the tax
valuation against the Peoples Gas Com
pany has been cut down 100000 on the
representation of the city engineer that
unwarranted. The earnings of the COM
pany are said to be fully 10 per cent on
the stock. Leather preferred stock was
tipped to advance yesterday morning, and
II said that the earnings of the COM
pany are increasing rapidly. There is
a hope in some quarters that big slice
OF the back dividends on this stock viii!
soon be paid.
campaign seems TO have been waging
against the AmalgamateG Copper and
Smelters stocks and it has been hinted in
some quarters that insiders We're respon-
sible for 1t, the theory being that some
deal is soon to be announced. and that
stock is being bought in cheap prepara-
tory to the announcement. Numerous
bear tips have been circulated against
be inferred. originated from the inside
clique. 1t is whispered for instance that
there has been a disagreement in the
management of the Smelters Company
which is causing much friction and Ill
feeling. Yesterday the recent decline in