The Washington times., 1905-02-13
REACTION DUE
IN STOCK MARKET
Opinion That Prices Have
Reached High Limit.
BEARS INNING MAY COME
Best Investment Purchases at Present
in Bonds and High-Grade
Shares.
BEARS INNING MAY COME

NEW YORK, Feb. BIN the greater
part of last week the movement of
values on the stock exchange and on
the curb reflected further accumulation
of securities by public interest, although
at the close there was considerable SELL
ing for the latter element, and the fact
that many OF the leading operators made
plans to go away from the city for
month or more suggested to many minds
that the holdings of the "big men
would be distributed. in part at least.
4 favorable feature of the market
was the development of a greater op-
position to the advance. Many people
believe that a good-sized reaction is due,
and that q period of heaviness would
strengthen technical conditions to an eA-
tent that would insure much better
prices later on in the season. 1t cannot
be denied by the most rampant bulls
that many issues are selling at figures
that more than discount all the favor
able factors in the situation, and it Is
preba BILE that this will become more gem
orally recognized in the near future and
be attended by decline in quotations.
Prepare for the Bears.
No important setback is looked for at
the moment but it may be well for
traders 10 be prepared for a speculative
movement III favor OF tne pears. fOr
the simple reason that, irrespective of
conditions affecting the real worth of
securities, prices will not continue to
move in one direction indefinitely. Since
January the leading active railroad
shares have risen from an average price
of 117.SS to 22.96. while in the same time
the leading active industrial securities
have advanced from an average of 69. 46
to 1926, compared with the period just
preceding the so-called Lawson decline
in early December. The low price last
was 50 -35. recorded in May, from which
there was an advance TO HIS in Oc-
tober. and a further advance to 119. SO
IN the first week in December as
against about 122 a present.
Important Deals Pending.
Advancing values recently have not
been accompanied by many news devel-
opments affecting railways and indus
trial companies, but the movements in
various issues suggest to many minds
the belief that deals are pending that
.iil materially strengthen the future OF
number OF important corporations,
and stock market values are going
through the diseounting process. Al
this level the best investment purchases
are 10 be found in the bond market and
IN few of the high grade shares the
latter class including such stocks as
Canadian Pacific, the Minneapolis. st.
Paul and Sauit Ste. Marie issues, Man
haitian, Reading first preferred Union
Pacific preferred and Western Union.
Good Investments.
The last named stock returns to
present buyers over 3 per cent, and, in
view CT the quotations of most Issues
that are steady dividend payers, il is
one Of the cheapest solid investments
on the list. Canadian Pacific. per
cent stock that returns about az per
cent. is attractive; also 500 preferred
which returns over per cent. The de-
nani for bonds remains active and
brokers have no difficulty in iisposine
OF all offerings. The new AtchIson con.
Vertible issues are quoted on the curl
at l04, and sentiment Is not bearish or
the AtchIson shares because OF the in.
crease in the companys bonded debt
The Atchison is q great property and
the election of Rockefeller interests tc
he board of directors. following THEM
recent heavy purchases of Atchison
stock, ought TO act as a bull card or
the various Ateflison issues In the cur
rent year.