The times. [volume] (Richmond, Va.) 1890-1903, 1901-10-13
PROF u IT AlK|ING
LOWERS PRICES
Good Bank Statement Raised Spirits
Of specuIators.
ACTIVE MARKET is EXPECTED
Rumors OF a Gigantic Railroad Combination
Given Credence--W Western Roads Will
b: Benefited and Stock Market
Given Greater Strength.
ACTIVE MARKET is EXPECTED

49,
Tremendous sales for proft-taking by
traders who purchased when stocks We're
much lower caused a slight recession
in the quotations on the general Security
list yesterday
The bank statement was good, though
a disappointment to some in not showing
as great a decrease in the loan account
as was expected.
The news of the day was unimportant,
but possessed none of the bearishness
which has chara cterized reports for some
weeks past. There was heavy sellin
of ST. Paul and Union Pacific, and thes
stocks lost from to 9 points.
The run,ors Of a deal merging Northern
Pacific, Burlington and Great northern
into one company, were prevalent, but
lacked verification. Such a deal was on
foot last spring. but was abandoned for
the time on account of the high pic
of the securities involved. It is claimed
that the present depression makes the
time propitiol,s for the cons umlnation OF
the proDosed plan. If this line of organ
ization is perfected, it is alleged it will
have relnarka bly, strong effect upon
the general market and advance pr.ces
many points.
THE PUBLIC NIBBLING.
The buoyancy shown by the market
during the last few: days has tended to
reawaken the public interest in stocks
and the result has been shown by in
creased commission business.
While the publication OF the bank state
ment yesterday failed to cause the stock
market to rally. at the same time 1t IS
expected to give a, 1lrmer tone to Sc
curities this week and greatest ACTIVITY
is expected.
RAILROAD EARNINGS
The Southern Railway Company's re-
ports for the first week in October show
an increase of s2S,400; Chesapeake and
Ohio, 1913; Norfolk and Western. s51.o@
Good consignments amounting to So
O0O,0Go are expected from Alaska and
Australia on October 18th
The gross earnings Of ifty-fve rail-
roads for the fourth week in September
show an increase Of 1447 per cent. For
the first week of October, thirty-six roads
show increase Of $50 per cent
HENRY CLEyS' OPINION.
A few months ago, when the prices OF
railroad and industrial securities We're
much higher than at present, Henry
Clews tho wcll-known banker and bro
ker, of New York. was one OF the few
who predicted that the market would ex-
ncrience a severe loss. as the ruling
prices We're much higher than conditions
warranted
Mr.. Clews. in his circular letter of yes
terday expresses the opinion that the
market will be buoyant for some time to
come. He says:
"Stocks are now more highly concen-
trated than in any previous period of our
financial history; the big men having ac-
cumulated them for the sole purpose of
CARRYING out their vast schemes of COM
bination, which. seem to be an irresistible
outcome of modern tendencies. 1t is fol-
w to underrate the Importance of such
transa ctions. THEY will unQuestionably
add to the stability and profitableness of
railroad investments. and they may be
used TO infuse fresh life into the specula-
tive situa ton; but outsiders must accept
the various reports with caution, and eX-
pectations of a, prolonged bull movement
based on these developments do not seem
justiiable when such large amounts of
stocks are held awaiting buyers, as is
now the case.
whether it is the plan or not Of the
ward movement remains to be seen. Re-
cent market operations suggested that
some parties We're endeavorng to accu-
mulate stocks as cheaply as possible, and
if this means the entry of a new bull
element into the market we may expect
increased activity. Just now the situa
ton is considerably mixed. Prices have
declined u to 80 points since last May.
and not a few are of opinion that the
effects Of the corn crop loss and fears
of tight money have been about dis
counted, that railroad earnings are likely
to continue at high level and that there
is no good reason for allowing pessimism
to eat away prices any longer"