New-York tribune., 1902-08-26
BONDS.
THE DAYS OPERATIONS IN STOCKS.

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THE DAYS OPERATIONS IN STOCKS
The stock market was thoroughly tested yes
terdav and the result Of the operation con
WINGED the most doubling Of doubters tina
securities are in strong hands. In the early
dealings a heavy balance of profit taking sale:
failed to demoralize prices, while further ag
pressive bear operations against Colorado Fue
and Iron were not effective in causing disturb
ance elsewhere in the list. The discreditablf
course of the fighting factions in the Colorado
Fuel and Iron Company may seriously DAM
exe the value Of the property, but there Is nc
reason why IT should affect stocks in general
unless the Western contingent should suneI
such severe losses in Fuel and Iron speculauor
as to compel It TO throw over large amounts OF
other securities This. however, is hardly proba-
hle as there is good reason for the belief that
the Western element is working 1ndusulousIy
IN lower the price Of Colorado Fuel and Iron
stock The greater number of issues closed the
day at net advances, the heaviest gains being
made by Baltimore and Ohio, Chesapeake and
Ohio MINNEAPOLIS ST. Paul and Sault Ste.
Marie St Paul Union Pacific. Pennsylvania,
Consolidated Gas. Evansville and Terre Haute'
Kansas City Southern preferred, and on shlaA
dealings the express company shares POOL
h,lving advanced Baltimore and Ohio. Union
Pacific PENNSYLVANIA and Southern Pacific A
heavy tendency developed in Southern Railway
in the late dealings, but elsewhere in the active
list the market closed strong. Accompanying
the advance in Union Pacific there was enor-
NOUS buyins Of Union Pacific convertible As
on a rising price level. Buying Of Union Pacific
was largely by brokers who were active in
Southern Pacific and it was thought that a
dividend would soon be paid on Southern Pa
cific while friends of the Union Pacific were
confident that the Union Pacific common dividend
would be advanced this fall. AS Union Pacific
owns more than half Of the Southern Pacific
stock a dividend on the latter Will, of course,
add materially to the value Of Union Pacific
issues. Call money ruled under 4 per cent and
sterling rates easier. About S4ooeeO
was transferred to the interior, S250.Oo0 going
to Chicago
The Erie issues are being absorbed by good
Class Of buyers and it is thought in investment
circles that at current prices all three classes
of stock offer excellent opportunities for future
profits In the fiscal year ended June 30 the
company's earnings available for dividends
amounted to S43S4,611. against $3.50. 156 in
the preceding year. showing about per cent
earned the common stock, compared with
one-auarter of / per cent in the year before.
Although the coal strike prevented the company
from showing big earnings in June, gross earn
II.
while net earnings increased S2.o22.J 800. The
fact that substantial financial and railroad in
terests have bought Erie stock and figure in
the board Of directors should encourage conf
dence in the future of the property The COM
pany is conservatively managed Physically,
vast improvements have been made the road
In the last few years both regards roadbed
and equipment. while. financially, results have
been obtained that not many years ago were
considered impossible
The acquisition by the Erie Of the PennsyI-
vania Coal Company several years ago added
largely to the roads receipts. Erie's collateral
bonds by the way. issued TO pay for the Penn
sylvania Coal Company, among the cheapest
and best investments on the list.
The so-called big men are apparently we'll
supplied with time funds and as a consequence
they are not worrying over the course Of the
call money market in the next two months
Prices moved last week in line with the opera
tions of powerful capitalists and there is
reason to suppose that downward course VIII
develop save when the market becomes over
bought and general technical conditions call for
a reaction. The high priced railways, however.
DO not look attractive at the present level, and.
although speculation may carry them higher,
the return on the investment is not large enough
TO appeal TO careful buyers And. far as
reasons is concerned, IT should be borne in mind
that the cost Of carrying these issues is heavy,
and that their prices liable to suffer quick
movements that only large margins can stand
The low and medium priced railroad shares and
the attractive industrials certainly in line
for popular attention in the current market.
Good industrial stocks, paying from to per
cent. may be bought at prices yielding from
Z to 10 per cent Eventue'-- these shares will
sell higher; So also, Will be the medium and
low priced railroad issues, such as Southern
Pacific the Erie shares, Chicago Great Western
and Colorado Southern Colorado Southern sold
down yesterday, probably liquidating sales
by people who have lost money in Colorado
Fuel and Iron. On the decline offerings
readily absorbed, and after maximum loss Of
over one point the stock closed a a net loss Of
only q per cent. Colorado Southern runs
through a growing country and its securities
are cheap at present prices. The common will,
It is said, touch 20 this year. Colorado Fuel and
Iron sold az low 7324 yesterday, but closed at
q, net gain Of 1 point, the advance being
due to covering Of shorts.
THE DAYS OPERATIONS IN BONDS