The sun., 1903-11-26
FINANCIAL AND COMMERCIAL.
WEDNESDAY. Nov. rs.

was brlSkly resumed at the opening OF tne
stock market this morning, and heavy de-
cnes were again forced In the price OF the
common and preferred stocks Of the Ameri'
can Linseed Oil, International Paper, Rail.
way Steel Spring preferred, Pressed Steel
Car, Corn Products, American Smelling
and Refining and other companies in the
same class There was, Of course, not the
slightest pretext that there was any new
or genuine reason why these stocks should
sell upon lower basis than they have sold
recently or that the movement concernin 8
them was anything else than continu-
ance of a drive made by powerful and
daring bear contingent. Every one realizes
that these are stocks which whatever their
earning power or intrinsic merit, have no
organized support upon the floor OF the
Stock Exchange and are not readily bought
by investors when concessions in their
price are made. and that, therefore, it is
easy to make lower quotations for them
in the stock market by Use Of those prac
tees of manipulation with which Wall
Street is familiar. All this does not, how
ever, change that balance between price
and value which must some day be drawn
That the prices OF some Of these industrial
shares are absurdly depressed at the pres
ent time goes without saying. The Ameri-
can Locomotive Company, whose stocks
we're attacked to-day more fiercely per-
haps than any others, has at present over
50, 100000 in Chicago assets, 100000 OF
which is in cash has orders on hand which
will engage it's entire capacity up to July l
next, and is in position to pay dividends
on its preferred stock for five years even
if its plants should shut down permanently
tomorrow. The American Smelling and
Refining Company, too, has over $4,000 900
in cash, is at present making earnings at
the rate of IL per cent, per annum upon its
common stock and will in all probability
place it's common shares upon or per
cent. dividend basis within thirty days,
Many other instances of the similar pros
perity OF industrial companies whose shares
have recently been the target of specula-
tors for the fall might be quoted.
The railroad stocks sympathized slightly,
but very slightly. In the early part OF the
Stock Exchange session with the lower
price range among the industrtals. and
their early weakness soon turned into
strength. Notably strong spots in the
Industrial list were the United States Steel
preferred and the American Sugar and
Refining stocks. Sugar stock sold at the
highest price recently recorded for it, and
the course Of the security suggested, as it
has done for many days past. acoumula-
ton. The same purpose, or something
very nearly akin to it, seems to be at work
in the United States Steel shares. The
news of the day was favorable. Foreign
exchange was again decidedly weak. so
that announcements OF more gold imports
are now possible at any time. 1t il known
that negotiations for such imports in large
quantity are being carried on. Call money
rates we're, too somewhat lower than
yesterday, and at Chicago exchange on this
city rose to premium. showing that at the
leading Western centre the pressure now
is to send money to New York. Tho volu-
minous report of the operations Of tho Union
Pacific Railroad system for the fiscal year
ended July /. which appeared this morn
ing, was Of thoroughly encouraging char
acter, and the document deserves thorough
study by every person interested In our
country's railway affair. Those who do
give the report such study Of this kind will.
OF course, be the persons most benefited
by it, Suffice it to say for the present. and
from a purely stock market point OF view.
that It shows that the Union Pacific Rail
way Company earned In the last fiscal year
lOL per cent on ita common stock. In esti-
mating the true earning capacity OF the COM
pany due account must be taken, Of course.
Of the company's equity in the Southern
Pacific shares, and. making conservative
allowance in this way 1t is clear that the
present earnings Of Union Pacific are
equivalent to shl per cent. on 500, 900. 900
of Union Pacific common stock, that is,
assuming that the tloo, 900 400 Of outstand-
ing Union Pacific convertible bonds is con-
verted into common stock. as 1t will be-
naturally whenever the dividend rate on
the common shares is enlarged
The rally in prices which began about
midday gathered vigor as the day pro-
gressed. 80 that the railroad stocks gener-
ally. and very many Of the industrial shares
as well, closed at higher prices than they
did yesterday afternoon. The rebound
in quotations was 30 vigorous in some in
stances as to suggest that some OF the
speculators who had been selling industrial
.hares that they did not own had found
themselves trapped, The American Lin
seed OF! preferred shares. which at the
opening of business we're sold down with
a hurrah 51s points below their last close,
we're thus rushed upward finally on small
transactions so that their price advanced
2h points net for the day. The recent
weakness in Colorado Fuel and Iron stock
and convert ibe bonds was duly explained
nv the publication in THE SUN this morn
ing of the news of the sale by the company
of a portion Of it's coal and iron lands for
the purpose Of paying of it's floating debts
The nature of this transaction appears
to be that these lands have not been def
nitely sold, but have been pledged as COL
lateral for a loan made for the purpose
Of relieving the company from its en-
barrassments But the company's stock
holders will, Of course, have to raise the
money to liquidate this loan before they
can regain their property. The more
confident feeling which characterized the
days operations was materially aided
by large dealings in Southern Railway
shares at rising prices. There were no
developments to explain this other than
those made known some time ago by the
transfer of the control of the Seaboard
Air Line to interests extremely friendly
to the Southern Railway, Atlantic Coast
Line and Louisville and Nashville manage
..,a,,. Tho ont look cert aiply ia for firmly