New-York tribune., 1903-01-19
The WEEK IN WALL STREET.


absence Of outside support. prices yielded easily
under the influence Of bear pressure. and al
thoupf end OF The week trading was accom-
,,snjed by rallies net losses were recorded in the
greater number Of issues Heavy selling or
Reading and Rock Island early in the week
encouraged liquidation in other parts OF 'he
list hui sales of this character merely repre-
scented profit taking operations and transac-
lions for the account Of small traders VINO uIl-
wisely bought stocks small margins al the
high r,rjees of the week before. The decline Of
tho last few days doubtless has been due to the
rapidity OF the advance from the low prices
made in December and the disposition of the
larger interests 10 check the efforts of the
Western element to rush the market into an un-
,A+eIdv bull affair. The hesitancy of the public
may be due in part TO the fear that certain evil
dences Of market manipulation may upset val
,,es The fear excited by the Northern Paclhc
corner reannears whenever large movements in
individual stocks develop. and the enormous
dealings in Erie common in the last week
amounting 10 nearly 100000 shares therefore
created uneasiness in some circles of the street
The operations in Erie were not explained by
news developulents affecting the company. al
though there were various rumors regarding
The rropertv According TO these rumors. the
Erie has been secured by several other prop
critics Rock Island being the favorite wan
Streets band of rumoT mongers had one ionS
field day last week. and as a result OF these
fantastic vagaries the credulous operator saw
startling changes in the American railroad map
The most important being the elimination OF the
Nanderbilts as factors in the railroad situation.
and the rise OF the Pennsylvania interests TO
the control Of the New-York Central and its
allied lines Of the Atchison and several other
properties Trading in stocks was dull. and the
Street had the time to listen to fairy tales
The better informed people in the Street do
,,o- believe that last weeks dull and irregular
market foreshadows an end of the bun activity
that began in the middle of December In the
.-raa+er number Of issues securities selling
7lr5e their intrinsic worth. while in some cases
absolute bargains are offered. Excellent huylnS
continues in the medium and low priced shares
Including the industrials Of merit In the rall-
1,sv list the stocks representing the Southwest
ern roads will doubtless advance to a materially
higher level in the course of the next SIX
months owing 10 their relative cheapness and
10 the spIendid prospects for big earnings IN
the current year. Missouri Pacific and MIS-
sourj Kansas and Texas will handle an enor-
1nous movement of corn this year, as well as d
.-ro.-iog general merchandise movement Net
earnings of the Missouri. Kansas and Texas IN
creased for the first five months Of the present
-=eoaI year S126 l12 over the same time in the
f-o7J1
rain and cotton. Surplus after interest and
on,.,s Vas 81 oSn5l1. an increase of S69,175
4, tho rate Of earnings in the first half of the
5scal wear the surplus for the entire year Will be
,,-ar 81 800 coo. There is Sl3oOoOGO OF non
,,r,,,,ls i've preferred stock. and if dividend
or rer cent should he declared there would he
,art - .il~nlus equal 20 about / per cent on the
N common. In the second half of the last fiscal
year earnings fell off. owing to the corn crop
failure and light movement Of cotton. Thls year
earnings from January TO July will doubtless
he hea1,-. owing to big crops 1t is practically
certain fhat a dividend viii be declared on the
preferred stock.
IN the Industrial list there is good absorp-
zion OF The s-eel stocks and the car and loco
motive building shares Earnings of the car
building companies are steadily increasing
Every railroad in the country is in the market
for new rolling stock, and about every car build
ing company has enough work on hand to keep
the works busy for a year without single new
order Dividend returns on the preferred IN
rustrjals of merit make these issues attractive
e. current rrices. American Locomotive pre-
<erred psys per cent and sells under %. United
States Steel preferred pays 4 per cent and sells
around 80 American Car and Foundry pre-
5erred pays q per cent, selling at about ~, ana
international Paper preferred pays per cent
ceiling under 80 The preferred industrials are
becoming seasoned Investments. Par would not
nc dear for the stocks named. According to the
commercial agencies the only unfavorable feat
are in the situation Is the scarcity of coal but
This will not be permanent, or effective in chang
sng the course OF he industrial activities of the
nation Railroad -arrings for the first week fn
January received in the last week showed heavy
gains over the corresponding period in 1907. the
Gould roads. Norfolk and Western, Louisville
Hnd Nashville and Canadian Pacific enjoying
.xr,eciaIlv heavy increases. Missouri Pacific for
anstance made a gain Of S63,otH, which COM
mares with a week last year when earnings were
heavier than in any corresponding week in the
history Of the company. Missouri Pacific has 40
Ter cent Of its mileage in Kansas and Missouri
end in these two States the corn crop of 1902
gives 3-q Og5 SIG more bushels Of corn than in
1861 and 81 SD 137 more bushels of oats. The
big corn crop will help the livestock trade, which
viii be an important factor in Missouri Pacifc's
earnings. The company has expended a large
amount Of money in recent years on its property,
and as a consequence its physical condition now
enables it TO handle larger train loads without
additional cost
Money market conditions present no unfavor-
= bic feature. the possibility of gold exports not
being considered an adverse factor at this time.
The local banks are we'll supplied with cash,
and exports Of the precious metal may be now
ainderia ken without upsetting the financial situa-
1fon Regarding gold exports it should be borne
in nina that this countrys growing export trade
viii exert an important influence on the foreign
exchange markets this year. Exports Of mer-
..handis. in December were heavier than in any
month in 1892, and larger than in any December
on record. exceeding the figures Of the best pre-
,cding December by over %i000000. With the
exception Of the export movement in October
1860 amounting in value 10 S1G33S96S0. the
shipments Of general merchandise in December,