New-York tribune., 1904-09-03
BONDS.
STOCK MARKET OPERATIONS.


STOCK MARKET OPERATIONS.
Strength marked the course of prices in the
greater part Of the day, but operations as rule
represented the transactions OF the various
pools and cliques that are working for higher
prices rather than widespread public demand
for securities Commission houses were not
active factors. although they reported a dispo-
sition on the part OF n certain class OF custom
ers 20 buy stocks at prevailing prices. The
bun party in Wall Street has advanced values
20 a point that has encouraged the small out
sider TO risk his money in the market with the
confident expectation that quotations will con-
time 10 advance and that fortune lies in store
for the man who has the courage OF his convic-
tions The ordinary public speculator bases his
convictions on the movement Of the ticker rather
than on conditions affecting the speculative and
intrinsic worth of securities and in a market
such rs that nov prevailing the advancing ten
6ency Of prices convnces the small trader that
purchases made at this level viii result in enor-
rrious profits Perhaps the present hull cam
raiEn has not reached its limit but the increas-
ing willingness OF the outsider to take the Sc
curities which the insiders offer for sale en-
coGrages the belief that good sized reaction
viii soon develop. The upward movement of
TIE last few weeks has been accompanied by a
large distribution of stocks and the creation OF
an extended bull account, which includes q
large number OF weakly margned holdings. 1t
will therefore be that the technical position
OF the market IS much weaker in respect 10 the
long side of speculation than II was few
weeks ago.
The return from abroad of the head of the So
called Hartman properties encouraged specula-
tive buying OF Union and Southern Pacific. both
OF which enjoyed substantial price Improvement.
Wall Street gossip continues to predict a price
\ OF l25 for Union Pacific on the current move
nent but the conservative people in the financial
community believe that this issue is selling for
al It IS worth at its current quotation. If
Southern Pacific stock should soon receive a
dividend. Union Pacihcs income would be ma
terially increased, while the stock of the latter
company might be placed on a per cent basis.
It hardly appears probable, however. that the
management OF the Hartman properties will de-
eide 10 declare a dividend Southern Pacific
In the immediate future. owing to the fact that
further heavy expenditures must be made on
improvements before the company VIII reach a
position that Will insure the maintenance Of divi-
dends after they have once been declared The
directors OF Southern Pacific are proceeding
along intelligent lines in the development OF the
property and II is not likely that they wfll
swerve from their course because OF the re-
quest from spectators that the stock be placed
on dividend basis United States Steel pre-
ferred failed to exhibit the strength that marked
its course in the preceding days Of the week,
owing doubt TO heavy realizing sales but
the common made a new high record price for
the year selling & bove l3 This issue is a long
time speculative proposition. and it VIII require
great courage the part Of people who have
idle money 10 buy il on the expectation OF its
return 10 the dividend class. American smelt-
ing enjoyed an advance Of over / point, and
I--lo, 4 ofyasc on
movement that represented nothing but specu-
lative operations.
The heavy falling off in The earnings Of the
Pennsylvania Railroad Company for the month
OF July vas not factor in the stock market,
but Il created an uafavorable impression in
circles where serious attention is being given 10
the traffic situation in this country. Coincident
with the publication OF the Pennsylvania re-
port. announcement came from Philadelphia
that the officers OF the Pennsylvania Railroad
were extremely optimistic over the outlook for
business in the next twelve months ana that
they expected a large enough traffic TO offset the
reduced business since January l. On the lines
east OF Pittsbung gross earnings for July de-
creased S1.5I4,3eO and net earnings decreased
s4s0 200 making from January a total de-
crease I'm gross OF S49f3eOo and I'm net a de-
crease Of S29l.lo comparison being made
with the same month a year ago. ON the lines
west OF Ptfsburg the company was able TO show
en- increase In net earnings for July owing 10 a
large reduction In operating expenses, but gross
receipts were Sa23. 200 smaller than I'm July,
1863 The total decrease in net earnings the
lines east and west of Pittsburg in the first
seven months OF the present calendar year is
$4poS.2p.
In the afternoon dealings the entire list ex-
hibsted great strength noteworthy advances be-
ing recorded 10y Chicago and Northwestern.
which gained nearly points: Reading. which
advanced points on heavy transactions;
Southern Pacific. Union Pacific and MetrOpoli-
tan, the last named enjoying advance OF
nearly 3 per cent. The unfavorabe annual re-
port of the Metropolitan company had no effect
on the price of the stock the poor earnings be-
ing offset. In the minds OF spectators. hy the
possibility OF general consolidation of the
street railway companies in this city. The
heavy dealings and sharp advance il Reading
stock were not accompanied by explanation
10. the movement IN the way Of news but re-
ports tnat the common stock would soon be
placed on a dividend basis heard. Wabasl
preferred was also strong feature, while tbs
Colorado and Southern Issues were again IN de-
Ynsnd IL is reported in the Street that this
movement in the last named securities is sup
ported by the leading interests In the company
whenever any stock advances the report is put
out that the people I'm s2ntroi OF the property
concerned are bullsng the issue, gnen, a rule
the latter generally u7ore interested in de-
velopins their company iIi the interests OF th'
stockholders ihan In TIE speculative movement
OF the security. Last prices were generally near
\ihe hest of the day. On the advance LondoI
I'D upward OF 25.oO0 shares. There was M
snee of importance In tie money market bu
II