New-York tribune., 1902-08-01
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
Stock market trading was fairly active
throughout the day irregular movement
of values Prices showed great weakness at
times although final figures presented many net
gains as compared with the preceding days last
quotations. There was no large amount Of COM
mission house buying but the pools and syndi-
Gates were moderately active on the long side.
while traders endeavored TO depress values in
the early dealings sharp declines were made by
Atchison St Paul Rock Island. Illinois Central.
St Louis and San Francisco and Colorado Fuel
and Iron, the last named selling from "a at the
opening down TO 9212. and closing at recovery
of IL points from the lowest. The movement
in this issue was purely speculative. and engi-
reered by one Of the interests competing for the
control of the Colorado Fuel and Iron property
Norfolk and Western was in good demand es-
Fecially for foreign account. at advancing prices
The tip has gone forth that Norfolk will sell
at 90 but people who are now buying for specula-
tion will doubtless be willing to sell at %. Nor
folk and Western is an excellent property 1t is
making money. and eventually price of 90 for
the common stock will doubtless be warranted
The coal shares were strong on buying based
on the belief that the rioting in the coal fields
foreshadows the end of the strike. The effect of
the strike railroad earnings is reflected in the
last quarterly statement Of the Delaware
I<ackawanna and Western. which shows loss
.n net earnings of nearly S500000 and a con-
traction in gross OF ;83 per cent as compared
with the same period a year ago Rock Island
stock after declining in the early dealings,
closed 21a points above Wednesdays last hgure
the advance representing little beyond covering
of shorts Rock Islands readjustnent plan has
teen conopleted and the stockholders will soon
he able 10 study one of the most remarkable
propositions for capital reconstruction ever pre-
sented in the history of American railroad finan-
ciering The company is to be loaded With dent.
the cost of control cheapened and the new COM
mon shareholders are to be stripped Of actual
voting power
Western gamblers are not intelligent railway
men nor are they conservative financiers- When
a well managed railroad property falls into the
hands of men who use il TO further their specu-
lative operations wise investors who own Sc
curities of such a company convert their hold
ings into cash Rock Island has fallen into the
control of an element that does not possess the
confidence of careful investors Rock Island
stock therefore, no longer appeals to the in
weston, while the plan for the reconstruc-
tion of the company's capital is looked upon with
amazernent and fear. The controlling interests
in Rock Island desire to control the property at
q smaller cost to themselves. and they accord
fngly propose to satisfy their intentions by en-
rloying the water cure on the company's capital.
The plan as outlined in the Incorporation pa
pers merely increases the companys liabilities
without a corresponding gain in assets, while the
fact that no underwriting syndicate is to be en-
ployed suggests that no syndicate can be found
that will undertake to float such preposterous
proposition The preferred stock OF the proposed
new Rock Island company will control the af-
fairs of the road. and by this plan the present
1viIl ha ahl n
hut 10 withdraw about half their present in
vested capital. It is unfortunate that the Rock
Island Company is no longer controlled by the
men who guided its affairs successfully
through the hard times of the '93 period and
made its securities such conservative invest
ments thereafter.
According to the Rock Island plan holders of
100 shares of present stock may receive in the
new company $4,000 in collateral trust bonds.
seventy shares of preferred stock and 100 Of
common stock The preferred stock will receive
4 per cent from net earnings Of each year for
seven years then , per cent for seven years,
followed by per cent indefinitely The common
stock represents nothing but water and even
in rrosperous years it will not appeal to peo-
pie who like 10 receive fair return for their
money The school of railroad finance, as
represented by Western stock market specu-
lators is unsound: in many respects dishonest,
check all operations that tend to create capital
without substantial assets behind it. The stock
market is protected the present time by the
strong condition Of trade. by the bright pros
poets for the crops and by the sound position of
the financial situation. If these factors continue
prices will doubtless sell much higher before
the end of the year: but if things should go
wrong the downward movement would he accel-
Grated by the present operations of millionaire
epeculators There apparently is no chance OF
a trade setback this year, or poor crops, and
the bear side of the market will therefore not
be attractive for long pull until adverse trade
and financial conditions develop Industrial
progress in the last fiscal year unprece-
dented adequate evidence of which is contained
IN the railroad reports for twelve months now
coming to hand. The tin and steel trade is a
good business barometer, and encouraging con-
clusions may he drawn from the heavy demand
for pig iron It is estimated that at the current
buying rate the business in pig iron for 1903
will practically be done four months before the
first of the new year
THE DAYS OPERATIONS IN BONDS.
GOVERNMENT BoNDs.-Market firm Final
quotations follow: