New-York tribune., 1905-01-18
BONDS.
STOCK MARKET OPERATIONS.


On moderately heavy volume Of business the
stock market showed marked strength in the
early dealings and irregularity in the afternoon.
with reactions from the best figures Of the day
which in many cases resulted in net losses at the
close. notably in Amalgamated Copper This
issue. after selling two points above the closing
OF the preceding day ended al a loss Of more than
! per cent. Selling represented realizing opera
tons rather than adverse developments affecting
The property: indeed the news OF the day on
copper was exceedingly favorable, trade reports
showing stronger prices for the metal under the
influence OF growing home and foreign de-
mRnd- Reading was the real feature. its trans
actions on the basis OF full stock amounting 70
over one hundred thousand shares on q price
movement that carried the issue % per cent
above the closing in Mondays operations. with
a net gain Of per cent. Other decidedly strong
features were the American Smelling issues,
Missouri. Kansas and Texas. Chesapeake and
Ohio. Sugar Refining and Canadian Pacific in the
active list. while among the usually inactive
shares Omaha advanced nineteen points on deal
ings Of less than two Thousand shares, the ad-
vsrce being due 10 demand created by the an
nouncenent Of an increase n the dividend rate
TO a per cent basis. The activity in Canadian
Pacific represented home and London buying Of
The security and II reflected the improvement in
the oompany's earning power. the cheap level at
which the stock is selling for q Is per cent issue
and the promising prospects Of the industries in
the territory through which the Canadian Pa
ciic road runs The present price OF this stock
IS . stock market Inconsistency. inasnuch as il
IS much lower than the quotations Of several
other high grade securities that are not worth
intrinsically one cent more than Canadian Pa
cihc- And a similar remark may well be made
- Minneapolis, St Paul and Saulc Ste Marie
1rr7-a -a-l, Fp
selling well under most other per cent secur-
tiles. as. for instance, Omaha. which is quoted
twenty points higher and is no more valua bic as
an investment The general market closed
heavy, and there appeared 10 be more or less
bearish feeling among the trading element
Strength IN the Missouri. Kansas and Texas
issues was due 10 local and foreign buying but
the advance IN the shares was not ACCOMPANIED
BY new developments affecting the property
The better feeling on the Katy securities is
the result Of the marked improvement in the
financial affairs Of the property. which suggests
rhe possibility Of 6 dividend on the preferred
stock at no remote period For the twelve
months ended November 80 the company
showed surplus above charges equal 10 bout
three times the amount required TO pay the J
per cent 10 which the preferred stock Is en-
titled, and IN view Of this exhibit and the ez-
cellent prospects for large earnings IN the next
twelve months the preferred stock holders. Of
course, are encouraged over the outlook for
return their investment. Naturally there
win be no payment on the common shares at
present, but the placing Of the preferred in the
dividend column VIII add intrinsic value to The
junior Security. Apparently the current year
VIII bring satisfactory results 10 the railroads
IN the South, although the receipts may be
under last years favorable records. owing To the
extensive decline in The price Of cotton and the
attendant decrease in the purchasing power OF
that part OF the country. Some bearishly in
clined observers are beginning 10 believe that
IN view OF the fact, that cotton is selling below
the cost of production there is no reason for
painting the South in rosy c0lors. II should be
remembered. however. that the industries Of
the South have become more diversified and
that cotton is no longer the sole dependence OF
the Southern people.
There large volume Of profit taking in
Union Pacific. ana as a consequence the stock
failed 70 make important headway. although it
generally kept above the closing price Of the pre-
oeding day Al its present price this issue returns
20 the buyer Jess than 32 per cent while less than
. year ago II could be bought on 2 basis Of over
~ per cent. as last March SIS quotation was in
The nezshborhood of 20. as against 10 to-day.
Despite the Improvement that has already taken
place IN the price Of this security there are be-
levers Ia the stock who are confident that il VIII
he advanced 10 a stiIl higher level. and that at
10 distant period the directors viii raise the
dividend rate 10 . per cent The company has
valuable assets IL its holdings Of Northern
Securities and Southern Pacific stocks and Il is
easy 10 see that with continuance OF the pres
ent good management Of the property the posi-
1ion Of the stockhocers Is bcGnd 10 improve II IS
understood that the southern Pacific refundinz
plan - about ready for publication. the provis-
lons oi which inciude IL is sad an issue q over
~ r~
used FOR the purpose OF refUnding al lower rates
existing bonds and 10 provide further capitaI for
fmproV enlents and extensions There is 50 much
idle money ia the country az present that the
lime IS ripe for the hotation OF bonds Of solid
railroad companies, and Il Is not likely that the
Southern Pacific VIII have any trouble In fInan-
cling It's requirements successfully and the same
thing may be said Of the Pennsylvania and me