New-York tribune., 1902-12-28

The Financial World.

rise in the money rate to 10 per cent b.
covered itself later again advanced ara -
yesterday at about the best prices Of sba -
although money continued TO rule high .na
bank statement was by no means s.vo-.s.-
one This rise Is simply the recovery ,ror, -
drop which took place before the fnanc,a1 So
ton was relieved by the formation Of the r,o-s-
pool
The market is now normal. with two side, -.
IL Inc bear side Is conciseIy expressed in ~.
Financial Chronicle both in it's general aa,-o.sl,
remarks. and in it's special article on the seroi
annual reports OF the Vanderbilt roads IT,
is the argument:
Inc prices OF raw materials and commo1,,is
and wages. have reached so high 8 fours 49,
consumers or all kinds are beginning to faaI =
The carriers are doing a much Iaros-
business than ever before. but recent renort.
SIGNIFY on their face that they are doins, - -
loss in net income. These facts estabIish 80 "a
general rue-that very nearly all n nnt aH
securities have prospect of less value to-aas
gauged ny their net earning capacity than thev
had year ago
To this it is replied that the railroads .-o
meeting the increased cost OF doing bus,na.,
by raising rates. and that prices Of securities
have had. rule, large drop from the isva,
they were at in the early part of the wear ar
from what they have been at since then. And
Of the year. there will be a return flow to thi.
centre which will fill UP the now depleted bank
reserves.
These. condensed. are the two arguments A.
to the gross business the roads are doing there
is no argument They simply go-ged with
traffic The railroad men are worn out so ths
managers report, with the continuous struggle
to keep moving the vast amount Of freight con-
stantly pouring in upon them; and from all sides
comes the complaint of shortage Of motive
power and cars This. of course. results and
only could result. from the enormous volume
and activity of general business
Considering that there has IN fact been a con-
siderable fall in prices. while there has been no
diminution in business, and that some prom
critics are less affected by the causes which in
crease expenses than others; it would seem thar
stocks can be picked out for purchase which
will return good profits while it would not be
safe to buy the list fndiscriminately In other
words. this is no market to buy anything and
everything in the certainty that flowing tide
will carry it up (which the when the
boom On); but there purchases to be
made because the conditions Of this that spe-
ciai property justify an advance from present
quotations Such purchases are not confined to
the railroad list; they are among the industrials
also.
Consider the coal properties. The problem be-
fore the coal producers and carriers is how to
meet the apparently Unsuitable demand for coal;
not anthracite only. but bitumnous as well. The
bitunninous trade had grown very active before
the strike in the anthracite regions threw upon
it extra demands; but now, with these de-
mands diminished every soft coal producer
taxed to the utmost to meet only the most ur-
gent requirements. From Western centres whers
chorus of complaint about scarcity. and the
usual charges that the roads are keeping back
the supplies in order TO maintain high prices.
AS for the east. where anthracite is the chief
fuel. we all know what the conditions are. for
they are right home to US
One, thing we can make up our minds TO for
eertain-that for another year at least. vs
shall have 10 pay more for our anthracite thsn
we have been accustomed TO in the past; ard
for some time yet we shall be glad TO get 1t At
all even at the advanced cost Under such cir
cuunstances il would seem that among ootf
soft and hard coal properties. there were some
that could be picked out which should certainly
be purchase at going prices: for Win con-
tinuing crush OF business on the companies, II
only requires a small net advance per TON u
very largely increase earnings
In the weeks advance of the market gOod
buving was conspicuous in the various Heao1ns
iss,,as and later there was q big demand for
the Eries. causing sharp rise in Erie coInHoh'
As this stock is identified with Mr. HILL there
were not wanting cynical persons VINO prolessS"
to see connection between his bull talk "nen
Erie was around A. and his beaFish talk "heh
it was around 80 -,
The Gould people seem 10 be at Work VII"
their Southwestern stocks, large and snah' anu
some one has been picking up Lou1svlile lateL'
louisville is now minority stock. but there Is
reason 10 believe the majority owners "li
civ. rho minority fair treatment; that IS VIII
80 tba dividends correspond to the earn
trgs which more than justify an increase from
+ba nresaut rate Louisville under the old con
+ro1 was a uilch COW for the insiders "heH
Mr Gates abruptly broke into the saci71
oirc,a-vvitb the incidental effect or expoSi"s
half the Board of Directors short OF theI o""
e+ock in anticipation of a new lssae-i' nc
o,,ao+ buIIabaloo; but il also had the enee'
of showing the Louisville to be more VaA"a
rronartv than had been commonly suppoS1U
Unless the general marker goes o4eA' %
chances are that Louisville Will score an az
vance -. ,s led
~, ~-be Atchisons made a quiet out
.+aody advance, and the same may Dc saiN :
-, E,aciAc These stocks have now re-
sa..aro5 most of the drop they had when tnS
market was demoralsed by the squse1e
D,onev and the more demorallsing oreau .
what might be coming Atchlson Is NOT uOi-s
badIv at all; but it shows the enee's %
creased cost Of working it's last rnon'iNS
port recording only smaH increase ~ ~
large increase in gross ..,,,
Among the industrials a recovery OF aoou'
e., ,oir4s from their lowest has been RECORDED
a. the Steels. At these improved fg~res' II sun
rar,ains true that these stocks are Wondel
fr,1v cheap or awfulIy rotten-and the I~'-