New-York tribune., 1901-03-17
BONDS.
rur DAYS OPERATIONS IN STOCKS.


The stock market was strong under the infiu-
,,oe of buying for both accounts. Substantial
.svanoes were made in many issues, While In
..w stocks sensational upward movements took
.,.oe burlington furnished the conspicuous
.ssture Of the day on buying that carried It's
-,oas over six points above Fridays final level
burlington was bought on the expectation OF
: ner cent dividend basis and the possibility
that the road may figure in a deal with the
PENNSYLVANIA 1t was also said that the Great
Nor+hern- Northern Pacific interests had offered
N take the Burlington on per cent guaran-
tse Lower prices in London and the expecta-
ton of poor bank statement were ignored as
market factors, prices remaining strong
,hrougbout the day on an enormous volume Of
business The high priced RAILROAD investment
shares were features but the cheaper grade
issues were again in excellent demand, while
The industrials, with the exception Of some OF
the steel shares, and the local traction group
made distinct progress toward a higher level
Louisville and Nashville sold at its best price
Of the year Illinois Central advanced over B
per cent; Chicago and Eastern Illinois. per
cent: Northwest, per cent; Rock Island. per
cent and Manhattan. per cent. Fluctuations
were wide and net changes large, as will be seen
IN the regular table of prices heading this col
umn. The bank statement showed reduction
in reserve above legal requirements Of S714,675.
Cash decreased S2,150.000.
Investment holdings of the high grade in
dustrial stocks have been largely increased in
The last few months. despite the comparative in
activity OF the various issues. Speculation has
been so heavy in the railroad shares that the
operations in the greater number OF preferred
Industrial stocks have formed only small pro-
pOrfiOD Of he total dpa blltt
portion, however represents the best kind of
buying A canvass of brokerage houses and in
formation from inside sources permit the state
ment that the list OF holders Of the leading
preference industrial issues is made up of the
names Of prominent capitalists and conservative
Investors who think more OF the security Of their
investments than Of the dividend returns. The
Industrial combinations composed of con-
Germs that have many years Of prosperous bust
ness behind them present, a rule, good op-
portunties for investment capital. There are
OF course, some that overcapitalized and
poorly managed but in the greater number of
instances the capitalization represents value,
while the conduct OF the companies reflects hon
est and intelligent management Brokers who
make speciality of investors accounts report
quiet but steady demand for such issues
American Car and Foundry preferred. Interna-
priced issues General Electric and Pullman. The
two last named stocks are seasoned securities,
hut Car and Foundry and Paper have in real
value what they lack in years. Republic Steel
preferred is favora bly, considered.
American Car and Foundry issues have ap-
pealed TO good class Of buyers because OF the
known earning power of the company and the
9udcious management of the company's affairs.
Dividends were not begun on the common stock
until the working capital had been increased
from S4000000 to S10.000,oo0 out OF earnings,
and then only a modest payment was decided
upon. 2 Of per cent quarterly. This rate will
be increased in time. Industrial companies that
Hollow the example of well managed railroad
companies in the application OF earnings to the
needs OF the property before considering div
idend payments will win the confidence of in
value 10 advance stock than it takes manipu-
istlon to advance il. but stocks that rise slowly
as the result Of demand based upon actual worth
reach a level and maintain it, while the manip-
ulated issue quite frequently declines as
quickly as il has advanced In the bond mar
Eet the point is made that International Paper
Us are selling too low in view of the nature of
'he security. These issues represent mortgage
on 49OO0e90 worth OF property. while the
with S9eO0000 bonds outstanding. Peoples Gas
Is solid per cent dividend paying industrial
mat ought TO sell higher
The usual weekly table OF price changes for the
more active stocks follows