Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-01
BULLS AND BEARS
Special Dispatch 10 The Star.

Special Dispatch 10 The Star.
NEW YORK, September Lit Is an
nounced at the ofaces Of ]. P.erpont Morgan
& Go. and Kuhn. Loeb 4 Co. that q large
proportion of the Pennsylvania railroad 81
per cent convertible bonds. held by the
syndicate. having been disposed of. the SELL
101h and interest
Aggressiveness Is striking characteristic
Of the Long Island railroad these days.
The company has purchased seventeen
acres OF land near the Wading river sta
ton. on which It will establish an expert
mental farm to ascertain to what degree
unimproved land on Long Island can be
made productive. The land Is overgroWn
with scrub oak and pitch pine. and Is typi-
cal Of thousands Of acres on the island.
Buggy. buzzy." said the fly as the cart
wheel Of speculation went round, was
sarcastic brokers' comment after reading
the latest frenxied manifesto from the Bos-
ton muliah.
We are in a position to know that a great
deal of the selling operations are incident to
the closing Of arbitrage accounts. During
the past day or two certain London institu-
tions have notified various New York
houses that they were shipping stocks held
by them for account here. In other words,
the case Is that arbitraguers here have
bought stocks In London against sales here.
They borrowed the stocks here to COM
plete the local transactions. carrying the
stocks purchased in London at the regular
rates prevailing there. They are compell-
ed now to take up these stocks and the
and carrying these securities they have
been thrown on the market. This Is not
facts.
The amount of stocks involved was large
and the influence on the market may be
Judged accordingly.
Assuming that call money advances to
5 per cent" 1t Is said in conclusion, 1.-The
question naturally arises whether 1t will
not have bad effect on the stock mar
ket"
1t should have a sentimental effect tenn
porarily, and be fully discounted before
the actual frmness in rates begins. There
are some pessimists who point to our low
reserves as a menace in the present situa-
ton. These low reserves are primarily due
70 the use of large amounts OF money by
the biggest interests in the financial dis
trictseto purchase stocks for a big rise in
the not too distant future.
Compilations of railroad gross earnings
made by Wall street news agency shows
the following results. compared with the
corresponding periods last year:
For the second week of August the gross
OF m
40 per cent. For the third week of Au
gust the gross earnings of thirty-seven rail-
roads amounted to $3.50, 1914. an increase of
4,202. or 4.31 per cent. From July 1 to
August 81 the gross earnings of thirty
three railroads aggregated s57 $50 $50, an
increase of $5.O26. $50. or 9.51 per cent The
gross and net returns of thirty-one rail-
roads for the month of July were fol-
lows:
Gross earnings, s45,512.s55 increase.
81. 547, 500.
Other expenses, ss1.os1. $40; increase. S.
215. 4S2.
Net earnings. $14431, 2s5.
Increase. 81 $780, 800.
The gross earnings increased ILL per
cent; operating expenses increased IL "a
per cent. and net earnings increased 1O17
per cent.
Xxx
Reporting on new equipment business.
the Railroad Gazette says: THE Seaboard
Air Line Railway Company has ordered 500
plain box cars and 500 ventilated box cars
Of $1,000 pounds capacity from the West
ern Steel Car and Foundry Company, In
stead of from the American Car and Foun-
dry Company, as reported. The Erie Rai-
road Company. 1t is rumored. Is figuring on
1900 steel underframe box cars and leO
steel fiat cars. The Southern Is reported
as being in the market for $50 fiat cars OF
100000 pounds capacity. The chicago. Re
oria and st. Louis Railway Company is
reported to be in the market for 500 freight
cars.
Jersey is asking bids on all-steel hopper
ore cars. Inc f1dNaHd SeHtTdl ILicCtkiC
Railway Company has ordered thirty cars
The st. Louis Syrup and Preserving Com
pany of Granite City, ILL.,, is in the market
for twenty-five steel tank cars OF 1000 gal
Ions capacity. The Central of Georgia
Railroad Company has ordered fifty Hart
convertible cars. The Pullman Company
has asked prices on material for 1000 cars
The American Locomotive company mas re-
ceiyed an order from the Toledo, st. Louis
and Western Railroad Company for fifteen
simple consolidation locomotives
"The Tennessee Central Railroad Company
Is reported to be in the market for fifteen
freight locomotives. The Canadian Pa
cific Railway Company, 1t Is reported, Will
place an order for ten locomotives:
1.-The Minneapolis and St. Louis Railway
Company is reported as being In the mar
ket for ten locomotives"
1t is difficult to understand what there
Is in money conditions which would cause
such operations az those alluded TO IN the
following special stock letter put out by
Bartlett Frazier & Darlington. who say:
money conditions are likely to be the
important influences in the stock market
present situation may furnish key for
future developments. The foreign ex-
change market, as well as the weekly bank
statement. may show something OF the
market but the signs AFFORDED In these
cases are not always interpreted exactiy.
For instance. the condition of the stock
market yesterday and today has been
ascribed to variety OF causes. including
the so-called influence Of one operator VINO
has proclaimed his intention In the public
print.
circles. but temporarily at least profess
sional nervousness and hysteria may cause
lower prices We feel that at the present
time the man who desires to buy stocks
should first look at the net earnings or the
company which the stock represents. Lei
MIN not look at the past, either at the
nrices. dividends or earnings. but look at
the present net earnings and judge for him
self the dividend possibilities of the future:
Stocks that show big net earnings Will
show big profits one Of these days. and 1t Is
on this theory that the interests that domi-
nate the market are working and carrying
large lines"
-,..z ,ox, In THAR rnonthIy