The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-01
REVIEW OF LOCAL
SECURITIES MARKET
The Year 1906 Has shown the Value of
Local Stocks and BOnds-OutIook
for the New Year Good.

for the New Year Good.
Written for the Journal by W. w. Fisher.
manager OF A. W. Thomsons local securities
department
In no previous year has the attention of
the investing public Of indianapolis and this
vicinity been attracted to the local securi-
ties market as during the year just passed.
A score or prosperous brokerage firms, a
majority of them of recent organization, at
test TO the rapid growth of the interest in
the stocks and bonds of local corporations.
Not since 1895 nave investments of all
descriptions been so severely tested as in the
last twelve months. A comparison of the
relative prices of local securities to-day and
those of Chicago, Cleveland, Pittsburg,
Philadelphia and New York. with the prices
ruling a year ago, clearly demonstrates to
the most conservative investor. not only the
superiority Of Indie ma securities, but their
superiority over the watered stocks and
bonds of the captains of industry who
gather wool in Wall street.
EFFECT OF MONEY STRINGENCY.
The ~stringency of the money market the
past six months had, of course. an effect on
the local market. but local investors with
their securities fully paid for viewed without
alarm the shrinkage of from five to ten
points in their holdings. while in the larger
cities named a drop OF from twenty 10 100
points scattered ruin broadcast.
To the indianapolis Stock Exchange, more
than any other single agency, is due the
increased activity in local securities. While
but a comparatively few transactions are
made on the Stock Exchange call, or are
even reported there. the prices named daily
as the exchange IBID" and asked" quota
tons represent the real condition of the
market. These prices have often failed to
meet the views of outsiders and much UNI
just criticism of the exchange has resulted.
AS the exchange grows older, however,
it is becoming more generally known and
recognized that if an investor is willing to
bid higher or offer for sale at lower prices
than those established on the exchange,
he has only to give his order to a member
of the exchange and it will be executed at
the next meeting and quotations will be
changed accordingly.
FEATURES OF THE YEAR.
Among the features OF the years business
in the local securities market may be
named the fight for the control of the
American Central Life Insurance Company
during February. This fight sent the price
Of the American Central Life stock from
80 to $50. and finally resulted in new parties
owning a majority of the stock. With the
new control assured the price of the stock
quickly resumed its normal level, much to
the comht of a few small holders,
who were looking to get $500 a share for
their holdings.
The fight for Consumers Gas Trust GER
tihcates furnished its share of interest in
the local securities market. but few trans
actions were made on the Stock Exchange,
and members are now waiting for judicial
definition of the people"
STREET-RAILWAY STOCK.
Local investors have prohted in an un-
usual way by the heavy losses by Phila-
delphia fnanciers and investors in the
United States Steel and Lake Superior
Copper securities. Several hundred thou
sand dollars of Indianapolis Street-railway
stock and bonds. forced on the market by
the urgent needs of the Quaker capitalists
by the declines in United States Steel and
Lake Superior Copper and other stocks
and bonds dealt in on the New York Stock
Exchange. are to-day held by shrewd local
investors. Right now the most prominent
thing in the local securities market is the
demand for Indianapolis Street-railway
bonds and stocks and securities of the
Citizens Street-railway.
LARGE TRADING IN UNION TRACTION
Trading in the stock and bonds of the
Union Traction Company of Indiana was
Of larger proportions than the trading in
any other stock or bonds. Union Traction
OF Indiana was easily the leader of the
local securities market the past year. This
stock took. about the time Of its merger
with the Indianapolis Northern Traction
Company. July /. more the form of specu-
lation than straight investment buying.
selling as high as $5S a share, as against
an equivalent of $50 a share I'm January.
From this high point. helped along by the
forced selling of accounts that were held
on margain. the stock dropped to s24. 80.
selling at the low figure a short time ago.
As much as $4,000 of this stock changed
hands in a week during the summer
GOOD YEAR IN PROSPECT.
As il took six months for the effect of
the unmarked liquidation of stocks in Wall
street TO reach this market. the rally in the
New York stock market. which began in
September. is now only beginning to be
felt here.
Buyers will com into the market freely
only when prices are advancing. il has been
shown time and time again. and as all in
dicatiOns now point 10 easier money in 1894.
a good year in the local securities market
IS in prospect. Changes in prices the past
few weeks show a hardening tendency. and
inquiry for investment is increasing. Only
a general calamity can give US a bad
\ year.