Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1902-09-20
PUBLIC ]
Won't Buy Until
Action Begins.
Slow In Observing In
dustriaI Stock,
But Quick to Snap Up Railway
Securities.

One remarkable thing about the
stock market thus far in the present
year is the utter lack Of response on
the part of the industrInls whenever
there has been an upward movement
The railroads have had two or three
very marked advances, and, as rule,
such movements cause sympathetic
strength throughout, the entire list,
but at no time for months has this
been true of the industrial group.
One student of the situation ex-
presses 1t as his opinion that this Is
sure sign of the absence of the pub
lie from the market, Instead of buy
ing this class of securities while they
are quiet, the public will wait until
there have been advances of several
dollars per share before making pur-
chases.
! If the conditions are such as to war
rant the present high prices of the
railroads, there is no reason what
ever why the same conditions are not
benefiting the industrials. To prove
| that they are one need but look at the
big increases in the earnings of the
steel concerns, the steel car and the
locomotive companies.
While, as stated above. there has
been no upward trend in prices. it Is
yet evident that the stocks are being
| picked up whenever offered, and when
the market leaders are ready the rails
| will be lost sight of in the big move
ment of the industrial list.
Unofficial announcements was made
this week of the recapitalization of
| the Missouri Pacific railroad where
by through system from the At
lantic to the Pacific is formed, COM
bining all the Gould properties under
one management.
In the new company, which will be
known as the Missouri Pacific Co.,
will be lodged control of the Missouri
Pacific, Texas & Pacific, st. Louis
Southwestern, Denver & Rio Grande
and Wabash, with the West Virginia
Central, Western Maryland and the
Pittsburg connection, which will give
the Wabash a connection through to
the Atlantic seaboard.
The stocks of all the above named
roads have been selling at, advancing
prices for some time past. and they
will no doubt work much higher when
full details of the combination are
made public.
For the first year Of it's organizat ton,
the American Locomotive Co. shows
net earnings of over S3,000,OOO, COW
ering the operation of its eight plants.
The company is capitalized at $780,
! 100000, of which one-half is per
cent. cumulative preferred stock. De-
Quoting S1,7500OO from the net earn.
ing to pay this preferred dividend,
there remains for surplus account
over $1,250,0OO.
There was rumor this week that
the reorganization of the American
Bicycle Co. had decided to assess the
common and preferred stock alike at
the rate of So per share. While this
was later officially denied, it is be.
lieved that some such action will fin,
ally be taken.
While no buying movement of any
magnitude has developed as vet in
the. shares of the United States Steel
corporation, the past ten days has
shown considerable strength in this
stock. A sharp advance is looked
!. for when the monetary conditions
now affecting the market improve.
The estimated earnings of this com
pany for August are $12,5OO. 600, be
: ing $50o0o0 more than for the month
of July.
In commenting on this. Harris
Gates & Co. say that the Steel cor
poration will be able to add $50, 900,
900 to its surplus account at the END
of the fiscal year.
The Court of Errors has decided
that the Steel Trust can convert $500
100000 worth of stock into bonds
Vice-Chancellor Emery's decision re
straining the change Is reversed witt
only three dissenting votes. There
are eight judges In the majority.
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