Evening star., 1905-05-11
BULLS AND THE BEARS
Gossip Of the Stock Market
in Wall Street.

Special Dispatch to The Star
NEW YORK. May 11--There has been q
decided increase in business in the new
Southern Pacific bonds and a marked ad'
vance in price. At the same time the
Southern Pacific stocks have been among
the firmest on the board since the decline
There are those in position to have some
special Information who say that these
things would seem to show that the South
ern Pacific securities are about to have
an inning. There are some developments
that could justifiably take place that would
bring this desirable event to pass. Among
others are initial dividend on the common
stock and a readjustment of the outstand-
Ing preferred stock that would raise 1t from
price level that is ridiculously out OF
proportion to the company's earnings and
to the dividend which the stock pays.
A dispatch from Galveston says that the
Southern Pacific Company has received a
concession from the Mexican government
to construct railroad along the western
shore of Mexico from the port of Guayamas
to Topic, the western terminus of the
Mexico Central railroad under construction
from Marlong
The new line will be about 600 miles long.
and the Southern Pacific Company owns
the Sonora Southern extending south from
Its main line to Arizona east OF Tuscon 10
Guayamas. Plans have been perfected by
the Mexican government for the improve
ment of Guayamas as a deep water port.
The plan of the Southern Pacific Is to build
feeders eastward from It's new line into
territory not provided with transportation
facilities.
However the increase in stock Of iron
turning Of the tide Is to be interpreted
there is no doubt that 1t has perplexed
and even worried some bulhsh circles in
Wall street. An analysis that sounds rea-
sonable and that was advanced this week
is. however. that 1t is not at all unusual
to find that there has been an overdis-
counting of the future in an industry as
there is in the stock market. When this
occurs, reaction follows, as is the case in
stocks. 1t would seem though the crop
outlook, business confidence and easy
money conditions indicated that after the
iron trade had had it's little halt 1t woul1
start up again as briskly as before, and
perhaps even better.
Apparently the Gates party has become
bulliSh for the long pull. At least, G. G.
Gates & Co. have put out a letter saying
1.-THE market reminds us very much of that
about a year ago. Then the market was
dull very few people cared to buy. The
only question to decide Is whether or not
the difference in prices, money being about
the same. 1t seems to us. with the steel
and iron trade as it is, the crop prospect
as they are, that prices have had about
enough decline. So we do not hesitate to
recommend purchase of selected stocks at
these prices believing that they will soon
pay handsome profits. especially If our crop
prospects held good for another thirty
days"
George J. Gould is quoted in Pittsburg
message as saying: Il am particularly
gratified over the fact that the tracks con-
Meeting the Wabash and the plants of the
COmD3nV IalO.
This will give US a share Of the tonnage
of the great steel company, and we expect
in short time to be handling some of it.
/ expect to return here again in a few
days, at which time the matter of extend
ing the Wabash to the Seaboard will be
gone into There is only 200-mile link
missing and this we expect to get started
In short time