New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-18
BONDS.
THE DAYS OPERATIONS IN STOCKS.

c.ocu market values moved in an irregular
manner throughout the day on moderately ac-
tive volume Of business Opening prices were
at declines from The preceding days close
amounting in some cases 10 l per cent ana
e,ove hut after the first hour q substantial
rally developed which carried quotations from
20 per cent above the lowest figures Of the
.n.4tsl transactions In the last hour bear
pressure and commission house liquidation we're
effective In carrying values we'll under the hest
~ the day. although final figures showed net
GAINS in most issues. The course OF the days
on.-ations reflected the presence in the market
OF strong interests. both on the bear side ana
the bull side. The market is no longer one
sided affair, and people who believe that values
will move in ore direction without interruption
VIII doubtless be disappointed if they operate on
this theory. Among the more active shares Atch-
ison closed at net loss; also Canadian Pa
cihc, St Paul Colorado Fuel. Erie Louisville
and Nashville. Missouri Pacific Rock Island
and United States Steel. Union Pacific was up
! point at the close. The Wabash issues were
strong features. also Pennsylvania. which
sained IL per cent and New-York Central
There was no change in money rates. but ster-
ling exchange was strong and near the gold eX-
port point. The proba bilities are that the out
ward movement of gold. which was checked
fortnight ago will he resumed in the course of
the next few days.
Attacks on various investment securities have
not injured the value of the properties repre-
scented. and the decline in market quotations
does not represent radical change in the
character of American industrial activity. Pres
ent quotations, however, have brought invest
1nent securities to a more attractive level than
has been recorded in the last two years. Stocks
are now selling on a basis where the buyer may
Secy,-o from Al 70 H. cent on his II
invested in the railroad list while in the indus
trial issues investments may be bought 10 re-
turn from TO II per cent. Industrial stocks
have been damaged in reputation through the
developments affecting a few badly organized
and poorly managed concerns, as. for instance
the United States Shpbuding Company, but
there are nevertheless. many sound industrial
investments which are safe as the high class
railroad shares. Where overca pita liZation does
not exist. where combinations represent the
emalgamation of long established business en-
terprises and where the management is work
ing for the stockholders good rather than its
own interests there is ample reason for placing
industrial companies on a par with the railroads
a. investment concerns. AS to overcapitaliza-
ton Il is we'll 10 bear in mind that within the
last few years some railroads have added new
capital TO extent that may make them top
heavy in times of business depression.
The progress Of business affairs until after the
next Presidential election will undoubtedly be
at a slower rate compared with the last
two years. but there is no feature iq the situa-
ton that foreshadoNs q breakdown similar 10
that which developed in 1898. Conditions are
sound to-day. IN 1898 they were intrinsically
weak. Business collapsed in 1898 and i-,sol-
vency among railroad and industrial corpora
tions was more in evidence than sovency. The
reorganization Of the country's business since
1893 has not been overdone. barring a few excep-
tions. where spectators. rather than business
men, have been the guiding spirits and if re-
duction IN the industrial movement develops a
fall Of the entire business structure will not
develop. The foundations are too strong. There
is indication that a lighter volume Of trade
VIII cause decrease in dividend returns.
Preparations have been made in the last ten
years for period Of depression, and as a con-
sequence stockholders viii not generally be
asked TO submit TO the passing of dividends
Railroad companies have spent an enormous
amount OF money on their properties in the last
few years. and when hard times come along
railroad managers will be able to check expendi-
lures improvement account and pay their
stockholders their regular cLvi2ends save. per
haps. In the cases where oxe-capitalization ex-
lists The country is on such solid bust
ness basis that & is hard to conceive of the de-
velopment OF any business reaction of sufficient
proportions to upset the intrinsic value Of the
representative investment securities A crop fail
ure VIII injure business. but st Will not kill the
productive energies Of the country. The country
will live. and people who own good American
investments advised hold them.
EMFRTrAN SFCTTRITTFS ARRo4O