Evening star., 1905-11-03
BULLS AND BEARS

NEW YORK. November S.-Bond dealers
are almost in despair Of having much mate
rial with which to do business this winter.
The demand Il good, with nothing to begin
to satisfy 1t. There has been . relatively
small amount Of new underwriting. invest
ors refusing to relinQuish their grip on the
good stun which they hold. Hopes had
been raised by the hardening money rates
and the Increased demand for money the
world over that considerable supply OF
bonds would be put on the market by hold
erS who want money or credit to supply
various demands. but no such effect has
been had SO far as would tend to meet the
bond dealers requirements.
~
Yesterday was the second time this year
when the manipulators Of Reading made
big speculative coup at the expense OF short
interest and at the cost OF prices elsewhere
throughout the list. The same thing has
been done by those in control OF smelters.
Taylor & Smith, In . market letter Of the
week. make some interesting statements
OF the strength underlying the stock mar
ket. They say:
''As a rule buyers In selecting stocks AZ
an investment give consideration only to
capitalization. bonded debt and net earn
tngs, whereas directors and those with In
side knowledge OF the companies lay more
stress on management, gross earnings.
physical condition, future prospects and
hidden assets. Nearly every established
and wel1-managed corporation has assets
which are called hidden. because their true
values do not appear or are not readily dis
cernfble In their annual statements.
The following railroads known to
carry large hidden assets. viz: Pennssyl-
vania. New York Central Reading, Lacka-
wanna. Delaware and Hudson. Central of
New jersey, Chicago Northwestern, st.
Paul. Great Northsrn. Canadian Pacific.
Illinois Central. Union Pacific, Lehtgh VAL
ley. Louisville. and Nashville and Southern
railway. OF thes industrtals the American
Sugar Refining, Company perhaps has the
largest tangible hidden, assets. but then
many of the manufacturing companies have
OF most OF the railroads. which can be
drawn upon In emergencies.
"A lack OF knowledge OF the hidden assets
and other essentials necessary to properly
gauge the intrinsic worth Of security has
no doubt led to the sacrifice Of stocks which
can never be repurchased at any approach
to the price at which they were sold. and,
further, It has doubtless been the means Of
creating an impression that stock exchange
prices are too high and inflated, when as
matter of fact many stocks are selling be-
low their value as actual dividend payers.
fortified as many of them are by net reve-
bursements to stockholders. An example of
this can be found in ST. Paul, which pays
dividends of per cent on its stocks. While
this company Is reported to be earning II
per cent applicable to common stock, Della
ware and Hudson Is said to be earning %
per cent on its stock. These two are by no
means isolated cases"
The stock of the Standard Rope and
Twine Company has been stricken from the
stock exchange list, the reason being that
the registration agents are no longer serv-
ing and in consequence transfers cannot be
made in accordance with the stock ex-
change rules and regulations. Thus endeth
the unhappy cordage trust.
Compilations of railroad gross earnings
made by a Wall street news agency show
the following results. compared with the
corresponding periods last year: For the
second week of October the gross earnings
Of thirty-eight railroads aggregated 80, f06-
AT, an increase of $50. $50, or 5.14 per cent.
For the third week of October the gross
earnings of thirty-six railroads aggregated
So. 20s.6 .62s, an increase Of $123, ,432. or 1.58
per cent.