The times., 1901-04-29
STOCK MARKET COMMENT
Optimism Still Popular in the Spec
uIative Community.
Few People on the Street Look for
.Irash''-BusiHess Conditions Con-
tinuc fEood-T'he Oil Discoveries in
the South as Business Factor.

the South business Bacters
NEW YORK. April 2S.-The street is
much divided in its opinion regarding the
prohable future course Of the market
There are still many that believe the
boom will continue with only unimpoItant
recessions There are probably few now
that look for a violent slump in the mar
ket unless as a consequence OF some un-
foreseen calamity. The business situation
throughout the country is too prosperous
The easy condition of the money mar
ket is a natural strong backlog, and both
in the railroad world and the various in
dustrial fields the tendency is toward in
crcasing economies. larger and better d's-
tributed business and greater profits. The
sentimental influence on the pubic nina
of the recent notable rearrangements OF
railway lines under conditions OF IN
creased harmony is still very strong and
predisposes the speculative community to
the long side Of the market.
In addition TO prosperity in the South
and other sections. due to the high price
Of cotton in recent years, and the passing
of the spirit of legislative hostility TO cor
porations. from which the railroads, par
ticularIy in Texas. suffered so much dur
ing former hard times the latest de-
velopment Of Increasing wealth Is In the
abundant discoveries of oil wells. These
are contributing to very large earnings
on the part Of the railroads generally in
Texas.
As an Illustration. the profits of the
Texas Land Trust which took over the
land grant of the Texas and Pacific Rail
way many years ago, have been greatly
enhanced owing to large purchases OF
land by oil seekers. The company has for
years been reducing the volume of its
outstanding certificates. During 1900 IL
retired S50OOO0 par value of the eertlh-
Gates from the earnings from rentals.
The company now owns 3.03l.61 acres IN
thirtv-nine counties and has $4,000 in
cash assets The mineral wealth of a
part of the lands is expected TO bring the
company very large returns.
The discoveries of oil in The territory OF
the Southern Pacific viii result in ma
terial reduction in the company's eXpen-
ditlires for fuel. In California, where
coal is high-priced and scarce, the item
of fuel has been an expensive one. Off
cials of the Southern Pacific say that in
stead OF paying 81 to s. a ton for coal as
heretofore oil will be used to run the
trains. and three barrels Of oil are esti-
mated equivalent to a ton Of coal In
consequence Of these discoveries Of oil
the price has declined from % cents 10 %
cents barrel.
The supply in California is about 100000
barrels a month and the consumption
about 254001 barrels. When the length Of
the Southern Pacific system. 5000 miles
of road operated. is considered, the i'm
portance Of a reduction of fully one-half
in the price Of fuel can be readily seen.
IT is estimated that the Southern Pa
cihc is earning ! per cent, which is ex-
pected to be increased next year to fully
6 per cent, but 1t is known that the Union
Pacific management intends to use the
net earnings largely in improving the
physical condition OF the Southern Pa
cifc property.