The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-13

stock opened at lis. and by 11:N o'clock had
Tissa to l26h At the close II reacted some
was accompanied By many rumors, one OF which
was that the Gould family had sold the con-
with the se la srs RrI Insurance &c s samP6sniss
In this city. This was authorltatively denied.
ton Company was z to on aase sh sse M rsaS sns1 au arss-
zee . per cent. dividend on the stock. The sud-
advantage Of FOR ens sea loeai taaei,ons Vas taken
the list and when Manhattan itself gave way
the wnole market broke rather sharply. with the
,,4t mat the closing was decidedly weak. and
net losses prcdoininating over gains. The
the continuing influence OF the advance in the
* Itadsrn dividend rate. and the large
anu concentrated buying In that and other allied
STOCKS. After the realizing movement, invited
by the opening advance. the bulls rallied the
strength The coalers. Union Pacific, baltimore
. 1hio' tne grangers, Tin Plate and a hummer
strength. Minneapolis & st. Louis jumped Q
and the preferred 6h points In the late realiz-
weakness on the fears OF n war OF competition
between the great powers in the trade. National
rsaction in Delaware & Hudson was 81. Ma
tlonai Lead preferred cropped 6k. and American
last preceding sale. The increase of 81. Gas. 500
Ia the cash deposits OF the banks was unox-
pecteoiy large and the increase OF only a little
over S4,JOO,0oO in loans was Unexpectedly small.
10 the benefit OF the surplus in both cases. But
the statement was taken advantage OF 10 realize.
IL Is likely next week will see the beginning CT
gold exports and experts estimate that the
n,3Telnent VIII reach from fifteen TO twenty
miulon dollars. IL was asserted SATURDAY that
arrangements had ALREADY been made for tie
Shipment OF a considerable amount on wednes-
The business in stocks the past week has
eclipsed all previous records. Following the un-
precedented trade OF Friday and Saturday of
last week, which reached the highest records
Tor a full days trading and a Saturday half day.
above the two million shares level for the first
time in the history OF the New York Stock Ex-
years ago. in Which the newly ifedsed Industrial
stocks made the bulk OF the trading. The present
market Is distinctly one of railroad stocks and
the industrials play an insignificant part. The
immediate impelling cause of the rise is the
growth OF the community OF interests policy
among the railroads The purchase of the Penn
syIVania Coal Company for the Erie, the pur-
for the Reading. the appearance in he Erie
directorate in community of control OF interests
that have been rivals in the railroad field in the
Northwest. and the requirement OF ST. Paul
stock by j. j. Hill, OF the Great Northern. are
general adoption of this policy among railroad
interests Countless rumors have circulated of
are the only Observation-Disclosures developments.
CONDITIONS COMPARED.
The Importance of this development as the
latest step in the rehabilitation of the railroads
Of the country by insuring maintenance of freight
rates can only be understood by a comparison
Of conditions |. the railroad world with those
Of a few years ago. Then there was a pretty
general condition of bankruptcy and wreck
among the railroads of the country. The prob
lem presented was complex and formidable
Bonded Indebtedness was unwieldy, both by rea-
son OF inscriptions imitation of capital issues
and the high cost of construction and material
I'm the earlier period. The construction was sc
himsy in many cases as to keep the annual
cost of maintenance ana repair up to a high
level Of expenditures. Rate wars reaching the
point of determination had brought freight rates
down to an Improbable level and the structure
and equipment of railroads made them inefficient
instruments for cheap transportation. Even the
growth Of freight business attracted by the
low freight charges therefor could not be taker
advantage of. Old stock and bondhoIders know
what sacrifices had to be made in the cutting
down of bonded Indebtedness by reorganization
Of safety from bankruptcy. The prices after
wards reached by junior stock issues of some
OF future value they carried. Not only had in.
debtedness to be provided for, but new million,
| cheaspen the a. cost of t transpoTta TIC lmp onIS a eR
pert railroad men are competent to understand
of railroads as instruments of transportation by
better equipment, Improvement of operating
methods and permanent structures. cutting dowI
annual charges for repair and maintenance
With the ability thus acquired to do the large
ton induced by the low freight rates, had
gradual growth; With competition CONSTANT!
Willie NHC LO46h dbc oWHNdIQ II htei
rivalry In the improvement Of facilities, the earl,
increase OF earnings were practically all re
1 invested in improving the properly. Stock
deferred.
A perusal OF annual reports OF the great rail
road systems OF the past few years shows how
large are the amounts OF current earnings useC
for permanent improvements and betterments anC
which may justifably be expected to result IN
reduction Of annual charges in the future. Ii
some cases the requirements for such extraor
binary expenditures are already about filled. /
| will be observed that these improvements in con
/ ditions OF railroads are quite aside from tn,
enormous development of general trade and bust
ress or the past few years. nothing has servet
TO check the obstinate downward course o
freight rates or to prevent rate cutting and dis
elimination The federal government, recogniz
ing its evils, attempted to secure the observanc,
of uniform rates by enacting the interstate-com
merce law. But the antitrust Jaw at the sam,
time made IT a punishable ofense for corpora
lions to form an agreement Upon rates 70
charges. 1t is in its bearing upon this last mos
obstinate problem or railroad rehabilitation tia
the new policy Of community OF interest ha
great Importance An increase Of one-tenth OF
cent in the average charge for TRANSFORMATION O
a ton or freight one mile would increase rail
road earnings in the country many millions 0
dollars every year. This is a sufficient indica
ton OF the advantages to railroad stockholders O
doing away with rate cutting and SO cret rebates
which is believed to be assured by the trans
connecting railroad lines. The New York Cen
trial and Pennsylvania railroads tel the way an
proved the benefits OF the policy.
such is the deep-seated foundation on whicl
stocks is founded. Notwithstanding the diagram
exaggerations that have found crecence in tn
speculative furrow there is no reason to douh
the substantial extension of this Iolicy Of com
munity OF interests in the railroad field. AZ
was effected largely by exchange OF securities
the great financial transactions involved hav
notably affected the minor market. on this fir
basis the spectators have reared a fabric O
rumOrs and deductions. Should speculation over
run actual conditions the fact would be in lin
with all history. The lesson from all huma
precedent would be repeated. But the fact G
speculative imitation followed Dy reaction doe
not altar the impressive improvement in condI
lions which has proved the incentive for tn
speculation.
The demand for bonds has been large. but b
no means commensurate with that for stocks a
their level of value has been NOR" accuratel
known by reason Of the fixed interest return
United States refunding twos advs need - ne
cent. over the call price of a week ago.
Following are Saturdays share sales and n
closing bid quotations:
Closin
Stocks. Sales. Biz
| AtchisO.L IL 900 a..