New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-23
STOCK TRADING
TIE WEEK IN WALL STREET.

uations were confined 10 narrow limits, with
the tendency up one day and down the next,
while az the close net changes. as compared
with the preceding week. failed to show wide
variations. There were various factors which
ordinarily would have induced activity in spec
ulation, but the refusal OF the so-called public
20 engage in speculative operations and the in
disposition % the substantial market interests
90 enter into contracts on either side of the
count made # impossible for the professional
element 10 bring about material declines or ad-
vsnoes in the greater number Of issues. The
trading element, a rule. bearish. but its
efforts were not successful in reducing the mar
l0et value OF securities beyond Insignificant de-
clines. In the early part Of the week the Erie
shares were under bear pressure. and as a con-
sequence the various issues suffered small reac-
lions. although at the close they showed recov-
cries. the preferred ending at 59$<. net gain Of
y point, and the common at "a. a gain OF rs.
Earnings Of the Erie have shown large de-
crease IN the last ten months. and the prop
erty is IN a position which requires heavy ex-
penditures TO bring 1t up to the Hartman stand
ard, il Is thought IN some quarters that a
change may be made in the preferred dividend
while there are some people who believe that the
next dividend on this stock viii be passed The
best opinion. however, does not favor either the
passing or reduction of the dividend rate. This
issue has great intrinsic value. and now that the
Hartman interests are practically IN control of
the road il viii be wise fortowners Of the first
preferred TO hold the stock irrespective of Wall
Street spectators opinions regarding the divi-
dend possibilities.
Every railroad in the country is showing a
loss IN earnings. and there is therefore. no
reason TO pick out Erie as exception.
Earnings OF the New-York Central for the
quarter ended March 81 showed a shrinkage in
gross and net income and large decline in sur
plus after fixed charges. Gross earnings de-
creased over S1,420OOO. net earnings decreased
SL114O00. while surplus declined $4,000
TO $685., 292, as compared with the same period
a year ago. The annual dividend requirements
of this company, based on last years payments,
amount 10 S6.6O4 600. and 1t Will therefore be
that in the last quarter the company failed
to earn its dividend for that period by many
thousands Of dollars. The large decline IN the
CentraTs earnings is not due entirely TO trade
reaction. inasmuch the company was COM
PEELED in the last quarter TO contend with the
difficulties incident to one OF the most severe
winters on record While the railroads in the
North suffered large loss in traffic IN January.
February and March account Of the heavy
storms the roads in the South and Southwest in
those months made fairly good records. but now
their earnings beginning to show material
reduction from the same time last year. while
the prospects do not favor a large traffic move
ment IN the rest OF the year. although some Of
the roads hope to add largely to their earnings
through the expected heavy travel to the
Worlds Fair at ST. Louis Passenger traffic.
however no matter how large II may be- is only
q small item in a railroads income As gross
earnings falling of. reduction in operating
expenses must. Of course. be expected, unless the
railroads believe that they can continue to spend
large sums out Of earnings on their properties
IN expectation Of heavy increase in traffic
after the fan election Business in general
throughout the country shows a reaetionary but
healthful tendency. while business men appear
70 believe that there viii be 10 great activity in
the countrys Industries for number of months
To come. This fact however, ought not 10 In
cuce pessimism among investors or create bear
ish sentiment in speculative circles There is
going 70 be no panic and the trade reaction
that IS now under way will not injure the in
trlnsic value Of securities damage the founda-
lions OF business enterprises in this country
There are a number OF people who are so sub
merged in despair over the outlook that they are
quite sure the country IS on the verge Of anan-
cisl ruin and industrial bankruptcy
- -'ioS nc wen 10 pear IN mind that despite a
number OF passing unfavorable DEVELOPMENTS
n the last few weeks. stock market values
have, as a rule. refused 70 make noteworthy
progress toward a lower level while legitimate /
holders Of securities have persisted in unv-iII /
ingness TO accept the invitation Of professional
spectators 10 throw their securities on Tho
market Prices in the greater nurner Of cases
are below the actual worth OF the inves,,,er+
ana with money at its current low level stocks 1
are particularly cheap at prevailing quotations
ms does not prove that better opportunities 10
purchase securities may not be presented in the ,
course or the next few months but il ought (
10 suggest TO people who have idle money that :
tnere are many bargains which will return at
some future date handsome speculative profts /
"hlle Tor the investor there are many excellent
opportunities 10 secure high grade issues that
VIII return from AZ 10 81 per cent Bonds /.
nave been IN fairly good demand In the last
lew weeks, instances of which are the over
subscriptions 10 the japanese war bonds in this /
market and the Burlington. Illinois division Is
the latter being offered last "Wednesday and 4
taken before IL o'clock Bonds are selling AZ
attractive figures. and IN most cases new bond /
issues are being put out al a price v,hic, an
pea!s TO the investor. The fact that nrices
have been low in the last few months has been
an important influence ia deciding the railroads /
10 Issue shor'-time notes rather than longtime
bonds and for this reason investors ought 20 /
appreciate the advantages Of buying good mort
gage issues at present quotations. It quite
often happens that active demand for bonds I
is followed by an active inquiry for stocks As
the bond market has recently exhibited signs Of
increasing activity operators in stocks are more
encouraged over the outlook for a more buoyant
share market