New-York tribune., 1902-01-14
BONDS.
THE DAYS OPERATIONS IN STOCKS

nN0I lily 30 os a 2 q Wabash D 6Trk
THE DAYS OPERATIONS IN STOCKS.
Stock market trading was made up in great
part or the operations of professional dealers
Prices as rule were heavy under the influence
of bear pressure but declines failed to bring ou+
important selling orders There was some in
significant selling for commission house traders
who were impressed with the bears success of
the last few days. and who accepted as Gospel
truth the words of certain hypocritical market
interests associated with the bear party and
bucketshop proprietors. Uncertainty over the
attitude OF the Supreme Court on the Northern
securities Company served to check trading in
the early dealings. while the subsequent de-
cision OF the court permitting the State of Min
nesota to make argument TO bring suit against
the company did not help prices The organ
izers Of the Northern Securities COMPANY ex
pecled opposition and they prepared to meet it.
Ihey welcome suit before the highest tribunal
III Ihe 4ano for they are confident that the
tegahty or the corporation. which has already
been approved by the best legal minds in the
country will be upheld by the Supreme Court
>uoges- There was some selling in the Atchison
shares, on the theory that the new bond issue
decreased the value Of the stocks but sales ap-
peared to be well taken, especially in the COM
mon Chicago houses sold St Paul and the
Pacific stocks, while a Washington house put
out moderate amounts OF Sugar Refining A
reported further cut in the price Of copper had
slight effect on the copper shares Good buv-
ing was reported in the Wabash issues: also IN
Erie and Reading. The close was near the low
est prices OF the day. Money market rates were
relatively easy throughout the five hours of
business.
weakness in yesterdays stock market was
helped by the many pessimistic market oninions
put out nd hu, ,bao
public demand for stocks II Is we'll IN rrooo oh
caution, but there is no reason for the mis-
statements OF facts that being made by
some people for the purpose of Influencing
Falues Inc market is not inflated and business
'luitlons are not unsound. Yet to read the
"oIeo opinions from certain quarters of the
oreet one might imagine that the financial and
INDUSTRIAL situations were on the verge of gen.
eral collapse. Business as a whole is IN an
unusually sound position. The misfortunes of
certain poorly organized concerns are not re-
hections OF industrial conditions AT largo 7rrodo
prosperity apparently has not reached its limit
ana even II the volume of business this wear
should fall away from the extraordinary record
OF l5Ol material decline in stock issues wouId
not De warranted So far there is absolutely no
NHuicduoh or setback in the country's in
dustrial activities; at least railroad earnings
oank clearings and steel and iron trades which
oAc AdANAAul lIdue DarOfneterS present eVi-
dence of unfavorable conditions. In several re-
cent instances much stress has been nlaced On
the fact that the new issues of securities in the
last few years have brought an amount of stock
INTO the market which the country is incapabla
OF oigesting. This argument fails to take into
account the fact that with the increase in securi
nes IN recent years the amount Of money in the
country has grown enormously and that much
OF the new stock merely represents old securi-
ties in new form.
The market value of some railway shares is
Of course. high enough, but the sweeping as
sertion. made in certain quarters that prices
are too high, is not based on a thorough knowI-
edge Of the level of values. In these days of big
money supplies and Industrial prosperity re-
turns Of from to D per cent are extremely
generous, while in many cases 31k per cent is
considered a fair Income investment Many
stocks, such as New-York Central for instance
are selling at relatively high prices but quota
tions in these cases represent future deveIon-
ments, by which the value of the investment and
It's dividend yield will be increased The list of
railway shares dealt in on the Stock Exchange
furnishes many sound investments that cannot
be considered dear in view of their dividend re-
turn and known value. Atchson preferred
pays per cent and sells under par. Baltimore
and Ohio pays per and sells a trife above
par; Denver and Rio Grande preferred pays )
and sells at 81; Erie first preferred pays 3
per cent and sells at 13; Hooking Valley pre-
Pacific pays . per cent and sells at ia; Louis
vile and Nashville pays per cent and sells at
lo4; Missouri Pacific pays per cent and sells
al Iol; Norfolk and Western preferred pays
per cent and sells at 81; Reading first preferred
pays 4 per cent and sells at 81; Southern Rail-
way preferred pays per cent and sells at 93
81 Louis and San Francisco first preferred pays
per cent and sells at 81. The cases named are
only few OF the many in which market value is
not at a level commensurate with intrinsic
worth.
While the railroad list as whole is not SELL
nS at an minated level still better
made by the shares Of the sound Industrial
2mpanies. In the Industrial list returns of
-om to per cent on the investment NAV be
ad at current market quotations. as in the ase
= American Car and Foundry preferred Pressed
;teel Car preferred, International Pump issues
United States Steel preferred and Interna tional
Paper preferred. Peoples Gas. per cent
stock. selling only trifie above par is certainly
rot dear. Wall Street is blue at the moment for
feet. At heart the majority OF Wall Street in
erests are bullish the prospects of 1902
I'd there is no reason why any should be
bear American industry and financial mar
cts. Active investment buying OF bonds was
striking feature OF yesterdays market. Ac-
ivlty IN stocks is generally preceded by activity
bonds
THE DAYS OPERATIONS IN BONDS.