New-York tribune., 1903-03-20
BONDS.
7HE DAYS OPERATIONS IN STOCKS.

So let col iosIs Wsbssn Gs,I gs5 s5- As sif Z
THE DAYS OPERATIONS IN SToGh0'
.Lsr.-+s- of huvine in yesterdays stock
-,.-%.4 reflected q resumption Of activity on q q
-no6.-s+a scaJe by interests that are idenuneo
.4.h TIE Investment market through large OWL
s-ship OF the stocks and bonds OF American ran
road and Industrial consbanies Tnere "dS a.
f4he same time q marked decrease IN pear seli'i
-. 4, ensruIative- circles. People VINO are
Soyasne stocks bought at higher prices are gen
ssraItv strong enough financially &c carry .ne+i
.,.o,,,+< over periods of declining and hes1tal-
ing markets, and in the present case lhete
,a-+IculsrIv strong reasons for maintaining
- oost+tor on the long side Of speculation'
-Aa1,.nces in Yesterdays market were Sharp IN
!. ,,,,r,ber Of Issues notably IN Atcnlson anu
S.ovfsvtIle and Nashville. rejecting scarcity VI
fAe stock available for covering purposes WIN
-ht1 short interest and a small supply OF noal-
SnR stock with money market conol1iohs III
zrovtng, business throughout the country eA-
0sn6inr and foreign trade growing rapidly IN
xavor of the United States, there is no reason for
uressiness IN the local stock market save among
the rhor+s especially as prices are now selhns
~ q Iayel SO many points under the high hgures
Of 1902 Time money was offered at o per cent
vesterdsy for long periods, and ali 'nolca'lonS
pofuted toward a gradual Improvement III tLe
local monetary situation. southern racine
stock opened from 81 to 66h, against the CLOS
yng of 67% on Wednesday, and throughout tne
6ey exhibited great irregularity, ending at 654z'
on transactions aggregating Sl,oVo shares' III
she early dealings the Southern Pacific SITUATION
SoubtIesz caused some uneasiness in speculative
csrcIas hut with a recognition Of the fact that
I. corner would not develop in the stock activity
Increased while the advancing tendency became
more pronounced throughout the hst- Fool
b,y,ine beIped Louisville and Nashville. Union
Pacific gained point; also St Paul. Ihe ERE
issues were we'll bought, and there was a good
s.,,acd for Atchison, Louisville and Nashville,
Baltimore and Ohio. Rock Island, Southern Kan
usy Missouri Pacific and Pennsylvania For
t. exchange and foreign discounts were firm
The opposition Of the Southern Pacific pool 10
tha Hartman MANAGEMENT OF the Southern
Pacific Company has served to check to some
extent activity In stocks, but IT has not, now
ever had any material effect on investors SEN
ttrnent regarding the future OF the market N
is corteuded by Mr. Keene and his associates
that the expenditures the Southern Pacific
property ct the present enormous rate are not
justified owing to their belief that the stock
holders should receive recognition in the shape
Of & dividend before the road has been placed in
a condition Of greater physical efficiency. This
view may coincide with the ideas Of people who
are wholly concerned in speculation but it is not
likely that 1t will appeal to investors in general
who believe that dividends should not be paid
Until & company has been placed in a condition
that fnsures q permanent dividend basis The
present ratio OF expenses to earnings on the
Southern Pacific Is heavy. Expenditures at the
current rate will serve to place the property IN
o position which will soon warrant a reduction
IN tie cost of operation, and eventually a divi-
dend the stock II the present opposition to
zr-{<I
the future welfare OF the property than with
immediate speculative profits it would receive
.Mors ssricus attention from substantial invest
ment interests. The present movement of South
ern P&cidc stock represents IN great part activ-
ity among operators who are either short OF
the stock or who have bought the issue for quick
turns on the long side Of the market A large
Gmount Of the stock has been shipped from
Europe % this side and the books OF the COM
p4ny win not be closed until it arrives. It
was reported yesterday that the Union Pacihcs
fhcldfnes Of Southern Pacific stock have been
1T many weeks In such a position that the con-
'tentdau that the antitrust Law lis infrinSed has
01ea 1crcs than is generily supposed, and that
Sh1s fact VIII be disclosed at the trial of the
suit now pending The stock may be carried by
GubHcdaTJ company, as in the case of the
Enion Pacthcs Northern Securities stock which
.a held by the Oregon Short Line.
Buying Of attractive industrial securities for
ths account OF substantial market interests is
reported By q number Of the more important
Wau Street houses. There are many good rea-
sens for the purchase of industrial stocks at the
cCrreot level, and II is likely that these rea-
sons viii soon begin to appeal to investors and
Gpecuiators throughout the country. II Is gen
eRzTy believed that IN the late spring and sum-
Kser market prices will advance throughout the
list. and that the upward movement will In
clude striking gains ia number of industrial
issues that have become well seasoned but
which ara selling many points under their in
trinsic worth In the last year many Industrial
stocks have been placed upon a permanent divi-
dsnd basis, while others have received increased
dividends from the rate established a year or
more ago As rule. the return on Industrial
eh4ke Is much larger than the investment yield
Of railroad stocks, owing to the higher divi-
0e1dS paid and the cheaper market quotations
0f the greater number o. Industrial shares. Ex-
panE1on In the Country's trade continues at
kealthful rate. With expanding industries
throughout the country interest should naturally
T1cvS toward the class of stocks that directly
represents the business activities Of the nation.
These shares have not enjoyed ball attention in
f5e periods when the railroad shares have
lGttve and investment demand The majority Of
Industrial companies the shares OF which are
represented on the Stock Exchange are handling
. record breaking volume Of business, and there
= 70 Indication IN curTsnt conditions of Q set