New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-29
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
The practically universal condemnation of the
Rock Island readjustment scheme prob
ably the proximate cause of the abrupt checking
yesterday of the excited advance In railway
shares which characterized the course Of the
market last week, although other considerations
contributed. among them the unfavorable nature
of Saturdays bank statement and the announce
Inent of the engagement of So 100000 gold for
export The financial plan of the Rock Island
management, as outlined last week. is admitted
to be substantially correct, although not yet
officially announced That plan has the feature
OF audacity although not that of originality; for
it requires boldness to propose the trebling of
g. railroads capitalization and gravely to invite
the public TO share in the feast Of good things.
The only justification so far heard for the plan
Is that the bond feature is necessary in order
to enable the management, by shifting off part
of its too heavy load of capital tied up in the
road. to maintain control of the property against
the assaults of speculative syndicates who
might move against it-a plea which evokes
lsniles in Wall Street when past operations of
some of the interests at present prominent in
the Rock Islands management are recalled. And
beyond the limits of conservatism when II is
made to sell at 200 but many other stocks also
are at abnormally high levels. True It is that
the danger of sudden economic commissions is
much lessened now that the United States is
definitely upon sound money basis; that the
tide of business activity is rolling ever higher;
that harvests most bountiful are virtually as
sured for this year. especially of corn and cot
ton; that records of immigration into the rich
hatD
broken the immigrants being of a class who
will do their full share in wealth producing.
But the prosperity present and prospective of
the country is more than being discounted when
IT is made the pretext for such operation as
the placing of $75000000 bonds on the Rock
Island system, entailing annual fixed burden
of 100000 these bonds being issued in partial
exchange for stock upon which in lean years
dividends could be reduced or passed. For lean
years must come, years of poor crops and of
impaired public confidence, reflected in contrac-
zion OF business commitments and in decrease Of
purchasing demand and then the last state of
certain railways will be worse than the first.
Opening at 1913 yesterday. Is per cent under
Saturdays close, Rock Island before noon had
slipped down TO 1892 and rallied to 1874. The
dealings in the afternoon were inconsiderabe
I'm volume and the stock closed at 194, AS points
lower than Saturday. Missouri Pacific broke
from l1734 at the opening to 116ss at noon,
thereafter ralyng steadily to 1852 at the close,
a net gain of Is per cent. st. Paul, which
reached just after the opening its high level
for the day, 1874, touched the low point 1852.
lust before u O'clock and closed at 1864, a net
decline Of Is per cent. Most of the low prices
were recorded at about noon, the industrials
leading the rally in the afternoon. An exception
was General Electric, which opened at 1S6 and
ct nearly o'clock touched bottom. 1SlR, the
close. 1921, being points lower than Satur-
DAYS Westinghouse, on the other hand, ad-
yanced points on light trading. Colorado Fuel
and Iron on what appeared to be competitive
buying between the Osgood and Gates interests,
gained "a points, closing at 101s4, the highest
price of the day. Amalgamated Copper, per-
haps influenced by the fact that the Calumet and
fecla dividend was lower than for the last
preceding quarter, gained "a points, reaching
6sIL at the close; and Anaconda advanced D
points net. The gold engagements, as already
noted probably played their part in causing the
markets decline; but, although they raised the
months total expectation TO a figure larger
than for any preceding July in several years.
the movement need not, as far as 1t has gone be
regarded as menacing. since in June normally
a month of gold shipment, less than a half
million was sent abroad.