New-York tribune., 1902-01-09
BONDS.
THE DAYS OPERATIONS IN STOCKS.

~ IN
Irregularity marked the course Of stock mar
ket values yesterday. Early declines were due
TO bear pressure. while subsequent advances fol-
lowed supporting orders from a good class OF
buyers In the absence Of active public support
traders were able to fractional recessions
in the forenoon dealings, using as their argu-
ment for lower prices the statement of the
United States Steel corporation. which showed
for December a slight falling off in earnings
from the preceding month Common sense is
not always exercised in Wall Street If traders
had taken the time to analyze the report of the
United States Steel Corporation they would have
found ample reason for bull demonstration in
the stock market. The closing of lake naviga-
ton and the unprecedented car famine" were
effective influences in causing lighter earnings
in December than in November, yet the net
earnings for December showed for the month a
big surplus above expenses charges, dividends
sinking fund requirements and Improvements.
1t should be borne in mind that the company
was not in existence a year ago, and that COM
PARSONS made with preceding months rather
than with the same months in preceding years
Such comparisons not fair indications Of the
company's gain in business or its earning power
As matter of fact, the statement of the
United States Steel Corporation ought to prove
big bull card on securities. After all charges
and other payments. including dividends the
company shows for the nine months of it's or
ganization surplus of S19.414,497. This
amount is obtained after charging nearly
s10,000.000 for depreciation reserve and con-
ingent funds and improvements. S11 10000
For interest on bonds and S42.OO5, ,S07 for divi-
dends, The appropriation of so much money
for improvements shows that the company is
being handled in a conservative and business
like manner. The statement includes the
months in which the big steel strike was in
progress. and in view OF this factor and other
influences affecting net returns results
truly wonderful. Unenlightened people may
have sold the steel shares yesterday because
bear traders said the steel statement was dis
appointing. but many careful buyers put in
orders for the stocks because of their intelli-
gent understanding of the figures. The iron and
steel business in the United States is in a most
prosperous position. Prices have been adjusted
to demand. There is no imitation or speculation,
and there is indication of a collapse in the
conditions governing the trade. The United
States Steel Corporation has enough orders on
Its books to keep il busy for a year ahead, while
there is no prospect of any reduction this year
N the volume Of orders now coming to hand
1t is well occasionally TO study the steel and
Iron trace. This trade is the barometer of
business in the United States and at present 1t
indicates clear and healthful atmosphere in
the country's business skies. Early selling In
the steel shares yesterday naturally caused a
heavy tendency in the rest of the list but as a
rule, declines were recovered before the close
There was no active outside buying but the
course of prices showed that stocks were in
strong hands. Stocks held by people who
have intention of selling at the current level.
IL they cannot get their price in the January
market they will wait for the usual spring rise.
g they confidently believe that securities are in
the greater number of cases, worth more than
ruling quotations. The high grade issues. SELL
Ing many points above par and netting 4 per
cent or less. are. of course, at a level COM
mensurate with actual worth, but there is still
= long list of investments selling under in
trinsic value. This is especially true OF the at
tractive industrials and sound railways. such
a Southern Railway preferred and Denver and
Rio Grande preferred. Further active buying
Of the Wabash debenture bonds and stocks was
reported yesterday. The movement in these
issues suggests important developments in the
affairs OF the company.
In the final dealings the whole market was
strong and active, with especial strength in
Sugar Refining which advanced over points
to above 124 The final advances left the ma
iority of active issues at net gains. with
Der of shares showing improvement of ! point
and above. Union Pacific, Southern Pacific
Rock Island Brooklyn Rapid Transit Chicago
Terminal Missouri Pacific and Peoples Gas
were strong features.
THE DAYS OPERATIONS IN BONDS.