New-York tribune., 1902-10-29
BONDS.
THE DAYS OPERATIONS IN STOCKS

Extreme dulness and irregularity marked the
course of trading in the securities market. In
the early dealings there was a fair degree or
activity in a few Of the moro popular specu-
lative favorites although the transactions were
not significant Of important operations nor old
they suggest an active campaign for higher
auotations II is not at all likely that the stock
market win show any important activity until
after next weeks election. and even then heavy
transactions may not be recorded unless there
should be some surprising results from Tues
davis voting II by any misfortune a Demo-
cratic Congress should be elected. values would
doubtless sell off for a time The prospects.
however. do not favor Democratic success while
the outlook is certainly growing brighter every
day for substantial Republican majorities in the
greater number of Congress districts. There
was no material change in money market con-
ditions Call money ruled at per cent. while
a slightly easier tendency was reported in time
money rates. Sterling exchange was higher, and
reports from Washington said that Treasury
ofSoers expected large exports Of gold in the
course OF the next six weeks. Rates for de-
rnand sterling advanced TO last weeks high
level the upward movement being influenced by
higher discount rates in London and Paris and
a decline in Paris exchange on London. Final
prices for stocks showed more net losses than
gains.
Wall Street hears much talk about high prices.
II is asserted in many quarters that the cur
rent level of values more than measures the
actual worth Of securities and il is also pointed
ON, that expectations of further improvement
in quotations not likely 10 be fulfilled. In
certain cases. especially among the railway
shares. market quotations are certainly selling
al a point which represents the full value of the
stocks These cases, however, cannot be CON
sidered the rule, inasmuch as there are many
issues paying substantial dividends that are
quoted under par or few points above par.
In going over the list of dividend paying stocks
il viii be found that there are fourteen promi-
nent securities that are selling at an average
price Of So at an average dividend rate of over
per cent or investment return OF over 6
per cent. There is another list of FIVE promi-
nent issues paying from to 6 per cent which
foots up an average price Of los and at an
average dividend rate Of over > per cent. a list
Of higher priced stocks made up OF nine well
known issues presents an average price Of l59
and an average dividend rate Of 5la per cent
In the groups referred 10 both railway and in
dustrial stocks are included but IL the indus
trial stocks are separated from the railway is
sues II will be found that the average price of
the inoustrials alone is lower. while the divi-
dend rate is higher. than the figures given
Stocks such Chicago and Northwestern
selling at 22S; ST. Paul, at 1870; Rock Island at
1SS; Delaware, Lackawanna and Western at
26l, and Delaware and Hudson at l70 are of
course. at level that fully measures actual
value. Take, however. Atchison preferred, =
per cent stock. selling at about par: Missouri
Pacific. a per cent stock al 10; Louisville ana
Nashville, at l37; Baltimore and Ohio preferred
at %. and Denver and Rio Grande preferred at
u and it viii readily be seen that these Sc
curisies have not discounted in market value
their present real worth investments or their
prospects for improvement in intrinsic worth in
the next few years In the industrial depart
ment there is long list of sound securities
that pay from TO Z per cent dividends which
are selling from ; 20 Is points under par and
returning on the investment from t. to per
cent IL is In these stocks that the greatest ac-
tvity should develop in future bull markets
The United States Steel shares and the railway
equipment shares are selling far under their real
worth, and purchases at present prices ought To
prove profitable. United States Steel preferred
sells around 90. paying an annual dividend OF
per cent. while the common. which pays per
cent sells at level which returns upward of
10 per cent on the investment A careful study
Of conditions governing the value of investments
reveals few points on which the argument that
prices in general are too high may be based.
THE DAYS OPERATIONS IN RoNDs