New-York tribune., 1905-01-23
THE WEEK IN WALL STREET.

stantial interests, an increased pupuc oeIual'u'
both for investment and speculative account
and growing confidence in Wall Street circles OF
further strength and activity on the Stock, Ex-
change in the course of the next few months.
Notwithstanding the fact that prices are selling
many points above the low figures Of q year
ago, while in many cases the market quotation
fully measures the investment value of the Sc
curity. there is disposition in the Street TO
operate for lower prices. save for quick turns.
and it IS difficult TO find any one who can hon
estly find any factor IN the situation that sug-
gests a pesSirnistic view Of the future Money
IS moving into high priced and low priced Sc
curities. and the increased activity IN the high
grade shares reflects a scarcity in the supply or
bonds available for market purposes Bond
houses report a demand greater than the amount
hand. and they arc confident that in the
current year railroads VIII have no difficulty In
placing new capital issues in large. amounts, in
asmuch as there is an enormous supply of idle
capital in the country and willingness on the
part of holders TO place ii in the new bonds and
stocks of railroad companies. Solid Industrial
companies experience no difficulty IN securing
addiuopal funds on capital or note Issues. an III
stance Of this being presented last week in the
offering Of the Lackawanna Steel Company
notes to the amount of S1o.o00o0O. which were
aII subscribed for tho day they were placed be-
fore the public. 1t is not likely that the Penn
IN placing their proposed new securities. the
credit OF both companies is sound while the
proceeds Of the issues VIII be used in great
part 10 make improvements that eventually will
increase the earning power Of the two properties.
The absorption OF Reading stock was the chief
feature OF last weeks interesting market, but
the enormous volume OF business in the shares
was not accompanied by news developments af-
Secting the company. although the impression
-H,1 IL
mating interests 81 the property were buying TO
strengthen their control or else that some power
full group OF capitalists were trying to wrest con-
troll from the Lake Shore and Baltimore and
Ohio II suggested that the Gates crowd
might be trying 10 repeat the performance that
caused a change in the control Of the Louisville
and Nashville two years ago, but in well IN
formed quarters it was not thought likely that 1t
would be possible for band OF reckless specu-
lztoTs 10 grab up the Reading after the manner
Of Louisville and Nashville An enormous
AMOUNT of the stock was dealt in nevertheless.
and opinion favored the idea that the campaign
in the issues is not yet over. Ii is atrenarkabie
fact that counting the dealings so far In jan
,lary. the entire outstanding common stock OF the
BEADING has since July l been turned over no
fewer than nine times, while in that period the
price has about doubled In value IN regard to
the subject Of buying for control. It is interest
gan-Hm interests have been increasing their
holdings Of Union Pacific to an extent that has
placed them in control of the property. The
story goes that in the advance IN Union Pacific
the Hartman interests were heavy sellers, ex-
pecting that they would he able to buy back at
cheaper level and that the Morgan-I5ill people
were quietly absorbing the stock while the Har-
rlnans We're parting with it. There are inter
esting possibilities in the railroad situa-
- Sc haf n he
future there viii be developments Of most i'm
portant character affecting various companies.
Wall Street Goes not appear to be particularly
apprehensive Of the passage by the present Con-
gress OF bills relating the regulation Of rail-
road rates. and even If it thought that legisla-
tion would be enacted increasing the power Of
the Interstate Commerce Commission, ii IS not
likely that there would be important selling
movement on the Stock Exchange for the sim
pie reason that the financial community does not
believe that IN giving additional authority to
the Interstate Commerce Commission the rail-
road business in this country would be affected
IN way that would decrease dividends. The
railroads object TO government supervision, but
II stockholders interests are not Jeopardized and
the shipper is better treated, Wall Street Ger
tainly VIII not jun,p into a panic at the enact
ment OF legislation the lines proposed by
President Roosevelt The Presidents ideas on
the rate question are based a thorough un-
derstanding OF the situation. and. moreover, they
are absolutely sound and common sense having
IN mind the best interest Of both the shippers
end the railroads The Northern Securities de-
cision was one Of the best things that could have
happened to the Northwestern railroad situa-
tion. and it VIII be found that equally good ef-
fects win follow legislation that Will bring the
great transportation industry OF the country un-
der some sort Of supervision that viii protect
the public and the common carriers alike.
As far the general business situation is
concerned there are no features Of sufficient
weakness 20 encourage depression in the Wall
Street markets. Railroad earnings are satisfac-
tory although Tor the second week in January
q number OF companies show losses from the
came period year ago, due IN great part to
UufavoTable weather conditions Bank clear
ings continue heavy, the inen and steel trade is
making rapid progress, and. in fact, in all de-
psFf7nsnts Of trade and INDUSTRY condItions en-
courage the expectation Of active year OF
business. There is so much money in the country
that no difficulty is experienced in securing ac-
conInodation for The extension of old enter
prises and the development Of new business op-
eratons, and from present Indications money
VIII be IN abundant supply for many months TO
come Rates both for call and time funds are
easy, and just as long rs present quotations pre-
vail gold viii continIgs 10 leave the country
In the last week lOaEs OF the Clearing House
banks increased over S34, 900 900 This great ex-
the part OF the interests who are engaged in
large operations willingness on the part OF com
mission houses to carry large lines OF stocks
Tor customers on moderate margins and an in
creased mercantile demand IN all parts OF the
country. Compared with year ago, loans of
The Associated Banks show an increase of Sl33-
foo.6JO, standing at S1,09S, ,S1l 900. compared
with the high record Of Sl14095S. 800 IN the
week ended September II, 1904
Ihat ihe countlgs export trade Is in excellent
conditions, despite the falling off in the ship
I'm ha yoz--