New-York tribune., 1905-02-27
THE WEEK IN WALL STREET.

shares, heavy buying OF Union Pacific at new
high record figures. investment absorption oi
gilt edged stocks and bonds and active opera
tons for better quotations in the face OF several
developments of an unfavorable character were
features that supplied an interesting short
week Of speculation Despite the interruption
caused by the anniversary of Washington
birth. the total dealings for the FIVE days reached
the large record of 1866, $50 shares, compared
with 4447.221 in the preceding week Of six
days, while at the close all indications pointed
toward further activity in the current week,
especially in the shares that enjoyed such strik-
ing Improvement in the recent operations. Some
people profess to believe. however. that the
course OF these issues I'm the immediate future
Will not be much in favor Of the bulls as re-
corded in LAST weeks trading. while they are
confident that throughout the list the tendency
of values will change for a time. at least, this
contention being based on the theory that prices
have reached a level that is extremely attract
I've for sales by holders who secured their
stocks at cheaper figures. A decline caused by
sales Of this character would not necessarily
end the bull campaign in stocks; indeed. reac-
tion would help rather than injure the bull
cause particularly II il should be effective III
eliminating the kind OF speculation that has
been going on, for instance, in the shares OF
the Southern iron companies All OF the South
ern iron stocks are selling above their intrin-
sic worth, and even IL .he various properties
should figure in merger the value of the shares
would not be increased TO an extent warranting
present quotations
A merger of the Southern iron properties will
form an important combination, second In i'm
portance only to the United States Steel Cor
poration; but It is not at all likely that the
shares of the new company will be quoted for
any length Of time al a level proportionate to
the current fancy figures n Tennessee Coal and
Iron common. Sloss-Shef7eld common and the
Republic Iron and Stee, securities, none Of
7rbfc, are on a dividend basis Such com
bination would have a fright future, however.
and IL its shares should start of at reasohapie
figures they might prove profitable long TIME
purchases. The general position OF the iron and
steel business in the country at present Is eX-
ceedinely strong with every indication of gain
ing in strength throughout the year. while the
same NAV be said of the soft and hard coal trade
IN which great activity is now reported follow
ing year Of big profits in the business re-
fection Of the prosperity enjoyed in 1904 by the
euthra cite coaI companies is presented In the
annual report of the Delaware. Lackawanna and
Western. which shows balance after charges
equivalent 10 upward of 26 per cent on the stock
Factors Of this character naturally make people
hullish on the general position of business in
that outside Of possible sharp speculative de-
olines. securities prices will in the greater num-
hsr Of cases enjoy further Improvement in the
present year. There are. of course. many issues
the prices of which fully measure their actual
value. but . CONSIDERATION OF this sort seldom
sppeals 10 public that is anxious to make It's
fortune on the bull side Of the stock market.
The public IS already a large holder Of stocks,
and this fact suggests the possibility of danger
II buying at current quotations without the pro
tection Of = large margin. II is not, however, a
weak public that IS speculating in securities.
evidence If which is presented in the lack Of i'm
Tortant liquidation in the face of unfavorable
Developments and attempts by the bear element
II dislodge holdings.
T-niou Pacific made = new high record in the
last week selling above It's preceding high fig
ures recorded in May 1901, and the friends of
the stock asserted with a great degree of conf
6ence that the price would move to $50 In the
present market. At times it looked as if COM
Qetitve buying going ia Union Pacific.
and the report was again heard that the Nor
gan interests were accumulating the stock and
that they had enough Of the issue to give them
:. controlling voice in Union Pacific affairs but
This in turn was denied by the Hartman IN
1erests, who appeared TO be well satisfied with
the situation. The meaning OF the advance in
Union Pacific Is clear IN one respect and it is
shat. irrespective OF the final court decision in
the Northern Securities affair. there will be har-
i1ouy OF the strongest sort IN the Western rail-
read situation. Doubtless eventually Union Pa
cifc common viii be placed either on a ! or g
Ter cent dividend basis and with this proba-
bility in view the price Of the issue cannot be
considered dear at its current level. Such
stocks as Union Pacific assuming that this issue
l. 10 be placed on higher dividend basis
f~-H.r IH-@
lnay be expected 10 move to a better market
level, particularly as they are selling entirely
out Of line with many other shares that have no
greater intrinsic worth as Investments The
time has come when the investor should exer-
else careful discrimination in the purchase of
securities. owing 10 the high figures at which
many Of the solid issues ruling and also 10
The fact that there are still left few shares
that a. present prices return more than per
cent on the investment. People who wish 10
make actual Investments in the shares that are
-ow returning 3 per cent and even less should
wait for bear times. when these stocks will de-
cline with the rest Of the list
Cold exports are apparently over for the sea
so1l. but money is beginning TO move from this
centre 70 the interior, and. the local bSnl
reserves are low. higher rates for money NAV
soon be expected. Indeed. already call funds
are quoted at slightly better figures as com
pared with the quotation Of a few weeks ago
There is no indication, however Of the develop-
nent OF disturbing factors in the monetary sit
uation. as there is enough money in the country,
TO supply all the legitimate demands OF trade
and speculation. or course If the crazy specu-
lators. who do more harm than good in Wall
Street insist on pushing stocks TO highly in
hated values the banks Will be warranted in
calling a halt through the medium of the money
market. and il is not impossible 10 conceive Of