New-York tribune., 1905-03-12
BONDS
STOCK MARKET OPERATIONS.

Transactions in yesterdays stock market were
heavy in volume in the two hours of trading on
a movement of values that generally tended in
the direction of higher quotations. There was
good demand from commission houses and from
leading speculative interests, sales representing
profit taking by people who were willing to sup
ply the demand and incidentally secure the re-
suits Of purchases made when prices were
cheaper. In few issues the volume Of selling
heavy enough to bring about small frac-
ticnal reactions from the preceding days final
figures, but in the greater number OF cases last
quotations were at net gains. Union Pacific
Chesapeake and Ohio, ST. Paul and Canadian
Pacific presented moderate reactions, but in
view of the recent strength in these issues the
declines were not surprising, especially in the
of Chesapeake and Ohio, which enjoyed
such sensational rise in Fridays market The
bank statement was favorable. showing an in
crease in cash and reserve holdings and con-
traction in loans the decline in the latter item
amounting to $1.505.OO0. AS a result Of all
changes, reserve above legal requirements in
creased SSSS,450. to S927815O compared with
$29, ,937, ,075 in the same time year ago and
81, ,024,000 in 1903. The course of the money
market in the week just closed foreshadowed
favorable bank exhibit, and In banking circles
the theory is entertained that there will be no
change in bank conditions in the current week
Of sufficient Importance to bring about q ma
terial advance in money quotations. Doubtless
better rates for loans will be recorded in the
near future but there is no prospect Of dis
turbance.
The upward movement in Canadian Pacific in
the last week has not been due, some poorly
informed operators state. to efforts by the in
terests behind the shares to bring about a cor
ner in the security, but to buying based on the
merits Of the stock as investment issue that
is selling under its actual worth. Earnings &C
the Canadian Pacific since the beginning of the
fiscal year have increased So, 900, as COM
pared with the corresponding period in the pre-
ceding year. and as the condition OF business
along the companys lines is prosperous-more
SO than ever before in the history Of Canada
further expansion in traffic receipts may be
looked for. 1t is interesting to note that the
mineral land holdings in Canadian Pacific are
larger and more valuable than those Of any other
railroad in the world. This alone provides the
company with an asset the value of which
not be overestimate6 and then, in addition,
the company owns enough homestead sites to
give it a large income from sales for many years
to come. The returns from these sales do not
figure in the weekly report of earnings. so that
the company's income is really larger than 1t
appears on the surface 1t is generally believed
in Wall Street that all of the high grade issues
gins, but it must be said that many of these
securities are selling for all that they are In
trinsically WORTH and it is therefore easy 20
see why such securities as the Canadian Pacific
and the Minneapolis. st. Paul and Sault Ste.
Marie look cheap at present figures.
There are few shares that at current quota
tions yielding much as per cent, or
even 34h per cent. except in the industrial list,
and regarding the latter class of stocks it is
safe to say that many of the preferred issues
selling under par will move toward a
higher level in the course of the present cam
paign. The railway equipment shares ought to
sell higher, they have not yet responded to
the changed conditions in the and locomotive
building trade Orders for new cars received by
the American Car and Foundry Company have
increased wonderfully in the last few months,
while the same thing may be said of the orders
for new locomotives. Take the Erie, for in
stance: This company is adding large amount
Of rolling stock to its present equipment,
ders recently having been placed for 137 loco
motives, $500 steel underframe box cars, 1000
fat bottom single hopper cars and LOO double
ton hoppers Every road in the country Is plac-
ing orders for new equipment a movement
that attests the confidence of railway man
ayers in the continued prosperity of the United
States Railroad officers we'll able to judge
of trade conditions in this country ana to tell
the probable trend of business affairs in the
future and 1t is therefore encouraging to note
the present general air of optimism among the
railroad men, At the close Of the week opinion
in speculative circles, well as IN strictly in
vestment housees, favored the belief OF better
prices in the current week, although customers
were warned TO be well supplied with margins
IN the event of passing speculative reaction.