New-York tribune., 1905-01-16
THE WEEK IN WALL STREET.


unwllingness on the part Of the public TO en-
gage actively in speculation last week reflected
the development of more cautious attitude
among professional and commission house
traders alike. and a disposition on the part Of
The larger banking interests 10 discourage a
booming market at the moment. In some issues
however. a moderately large volume of business
was transacted at advancing prices but I'm these
particular securities the speculation was gov
erned by special considerations that had little
hearing on the general list. as. for instance. in
the case of the local traction shares and, on the
curb. Northern Securities. The latter stock
made a new high record. selling az a price that
10 the Union Pacific showed a profit on the
Northern Securities shares held by the Harri-
man road OF upward OF S40.o00.O00. or over 80
per cent on the outstanding common stock OF the
Union Pacific company. In other words. the
Union Psciic's assets have increased since the
formation OF the Northern Securities company
10 this enormous extent. II is easy to see there
fore, why Union Pacific has become great mar
ket favorite. and why predictions made that
its price will move 10 a materially higher level
While there was no news affecting the Northern
Securities situation in the week, there was
strong impression that the long drawn out liti-
cation regarding the plan for the distribution Of
the Northern Securities stock would soon be-
come thing Of the past, and that absolute
peace and harmony would prevail between the
Hartman and the Morgan-Hin interests in the
northwestern railroad field.
II is believed that the plan for the distribu-
ton Of the stock which has been opposed by
Mr.. Hartman will soon be put into effect. and
much Of the buying Of Northern Securities
shares has been due to this proba bity Buyers
Of Northern Securities Will. II the present plan
goes through as originally intended, receive
Great Northern preferred in the pro rata dis
tribution, and the fact that there excellent
chances of Great Northern stockholders re-
oeiving large additional dividends in the near
future naturally encourages the buying OF
Northern Securities. The Great Northern owns
sTon ore lands estimated 10 contain 100000
tons Of ore. and II is believed that these lands
VIII ultimately pass TO the United States Steel
Corporation. in the event OF which the Great
Northern Company would have enormous
amount Of money to add to its already heavy
bank balance. Great Northern is selling we'll
Up on the Stock Exchange price list, but the
chances are that il viii ultimately sell many
points better Union Pacific and Great Northern
apparently have most promising futures, and
careful market followers will watch these
properties with increasing interest especially
after the Northern Securities settlement has
been effected. The lighter trading and the IL
regularity in prices in the general list have not
W
circles over the outlook for further improve
tnent in values in the current year. but for
the moment it is thought that the uncertainty
over the chances Of railroad rate and tariff
legislation warrants caution in securities op-
erations. There appears, however, little pros
pect Of lower quotations in stocks at present be-
yond those incident to passing fluctuations
unless there should be some striking adverse
development affecting the intrinsic value OF
stocks and bonds. Everything IN the business
world IS working for progress. and in the Pres
.dents proposed tarin and railroad rate legts-
lation there is nothing that should alarm busi-
ness men In the United States
Interests identified with the local transporta-
ton companies do not confirm the current rl-
Inors regarding the Metropolitan and Inter
borough roads. but this fact does not discour-
age people from buying the city railway shares
Iuterborough made new high record last week.
and IL was confidently predicted that the stock
would go TO 200 or the present movement. This
ISSUE and Manhattan doubtless will sell at much
higher prices eventually, and while Metropoli-
tans chances are not bright for better quo
tations there is no reason for investment sales
OF the issue. Metropolitan will not be driven
from business by the underground system. Other
stocks in which there was confident buying in
the last week St. Paul. Amalgamated Cop
per, Canadian Pacific and the Minneapolis St
Paul and Sault Ste. Marie shares. the latter be-
:ng in good demand. both for local and Canadian
Interests. Buying Of Amalgamated Copper and
the copper shares on the curb comes from good
sources. and, the copper trade situation is
sound and promising for the current year, there
IS substantial reason for the purchases of the
various copper shares. Most Of the industrial
issues look attractive. particularly the railroad
equipment stocks The railroads are making
money and they coming into the market for
11ew equipment. and for this reason the income
accounts Of the car and locomotive companies
viii show far better results in 1893 than they did
IN 1904
Pennsylvania proposed new bond issue for
100000 WAS considered one of the few un-
favorable developments in the week affecting
securities values, but the influence Of the direc-
tors announcement that more money would be
raised TO carry on the company's policy of ex-
panson failed TO exert more than passing
effect on values. The fact that the Pennsyl-
Vanis Railroad has increased fits capitalization
10 an enormous extent in the last few years
naturally causes investors 10 wonder whether
the company will be able TO handle its big OBJ
legations in that VIII not interfere with
the current dividend rate. OF course the theory
OF the Pennsylvania people is that the increase
3n earnings as d result Of its vast improvements
that now under way viii more than offset
the Increase in the capitalization as far as dv-
dends are concerned. Earnings of this company
are beginning . show marked improvement over
the figures OF year ago, while In all parts OF
the United States traffic receipts are remarkably
heavy. with every prospect OF growing larger in
the next twelve months. In all departments of
trade conditions are improving. and the falling
OF in The exports OF breadstuffs is counterbal-
anced by large shipments of manufactures.