New-York tribune., 1901-07-28
financial.
The Financial World


OF the bad news over Sunday Then II .lou.s'
picked itself up again through the wasL r''
many oui spells and small reactions
Outsiue o! the steel stocks which mr.
moving UP again, the trading has virtuaTl,, ~
80 ,o"eu "seit down to six stocks-St. Paul Jypion
racine Atchison, Missouri Pacific and sor,hao
racine The way these have been dancsa
ahu ao"n trorn day 10 day. While the baIan,s Z
OF the list remained almost stagnant. gave ,no
idea that they were pulled by strings. Cr cor-.e
this means that the trading was wholly nro,.~
sional; and of very limited Significance A.
specI TO the main conditions controlling sns.r,
ton.
The hope that the market will be better nav.
week is based on the gradual breaking up Of N.
aroutn In the West; and the expectation a,
a near end 10 the steel strike. The big buvinr
of the steel shares began Thursday afternoo1
and it has continued since. with the resul, A.
lifting both common and preferred about four ~
five points from where the buying started. rha,
is. from 40 to "A. and 50 to 94.
Nothing had come out up to the close -.
business yesterday of definite character 4,
respect to the strike situation: and possibIv
there was nothing definite to say; but il is rsa
sonable to assume that affairs were taking q,
more favorable aspect. enough so to Justify
We'll informed people in buying the stocks The
usual experience in matters of this sort is that
the prices of the securities affected continue IN
rise as the end of the disturbance is approached
and react when the end is reached for it is then
everybody's news, and you cannot speculate ON
that.
TX the position of many leading stocks was the
same as it was before the Burlington absorn
ton. we should have had a much wider specu
laton based on crop damage than We have had
and also on escape from it. The Buringtons
territory has been very badly hit; but there is
no longer any Burlington stock 20 trade in
The Rock Islands territory has been even worse
hit. but that stock has become 50 blocked up
that it cannot be freely traded in This counts
out two leading stocks. one permanently the
other temporarily. from speculation. Above the
Nebraska line. crop conditions improve as one
goes north, and along the line of the Northern
Pacific and Great Northern, they reported
TO be OF the finest promise. But Northern Pa
cihc stock is tied up tightly; and neither North
western nor Great Northern stock figure in the
trading at any time
This peculiar state of affairs leaves free
market only for the six stocks above mentioned;
and because what speculation is left has
centrated itself in them. they have fallen and
risen with almost bewildering rapidity since first
the drouth threatened to become disastrous.
1t has been pointed out that the earnings Of
show increases for two or three weeks yet. be-
cause OF the immense shipments Of live stock
After that the extent Of the damage done must
begin TO tell The cattle are rushed 10 market
now not only from present scarcity Of water, but
because the corn on which they were TO be fat
tened later has failed. In some of the worst
stricken localities. the people must be feeling
blue. A private letter from one Of the dusty
regions Of Texas says: Our only hope is for a
fun crop of cotton. No corn. no cattle. All that
could be moved shipped out. and the rest dead"
II may be added. that only few miles from
where this letter was written oil has been
found and land has jumped from So to $500 per
/ acre.
! With the rains we are getting now. the corn is
/ safe enough from the Iowa line eastward; and IL
/ the yield is reduced somewhat. the farmers over
/ this stretch Of territory. taking in Illinois Ind-
/ ana and Ohio. will yet get their compensation in
! enhanced prices, North and northwestward to
! the Pacific coast, the agricultural outlook is as
already said, most satisfactory. In respect TO
! the Southern roads proper which are most de-
! pendent upon the cotton crop. they are all right.
/. 1t will be seen from this that there is material
for a very irregular market. That is what We
/ must expect. Doubtless speculation will veer
/ over more or less into stocks which are not d.
/ properties.
There is still sufficiently wide field in the
Southern stocks. the trunk lines the coalers and
/ the city gas and traction stocks; to say nothing
| OF the steel shares which likely to be active
! enough anyhow. In the gas stocks. il will be
noted how long Peoples Gas has maintained it
1 self at much higher level than it used 10.
Friends OF the property say there are reasons to
look for II going much higher. Consolidated Gas
/ of New-York is paying per cent and earning
/ H. 1t is quoted now at a price considerably be-
yond its dividend; but il does this because in the
near future some bonus dividends of substantial
| amount are expected from the sale of property
not needed for the company's use under what
will be conditions of manufacture and dis
| tributon.
The Reading stocks and Fries ought to be
purchase now on weak spots The Reading has
some strike troubles on hand. which are more or
less bothersome. and which tend to keep the
/ market quotations down When these are out
of the way. the stocks are likely 10 do better.
| They are quite favOrites among the London
| operators, who are specially bullish the first
! preferred.
| Louisville & Nashville. and Southern Rail-
road seem safe to buy on the markets weak
days. and Illinois Central also The earnings OF
the latter are larger in proportion 10 the divi-
dend il pays than any other road on the list
with the possible exception of Northwest; ana
with a 3 per cent dividend just coming off. and
rights of subscription for new stock ahead II
looks like a moderate priced security. now that
money is getting TO be cheap again.
! 1t is quite much 20 expect anything Ike
a bull market at present; but 1t is a good tradins
market and stocks picked up judiciousy on day
when things look the bluest. should be good for
!