The San Francisco call., 1905-08-10
STOCKS. RAILROADS
AND INDUSTRIALS.
Wall street Very BuIIish on the Fu-
ture Efarket


The New York csrculars OF the two we'll
posted houses OF J. 5. Bache q Co and Henry
Jews give she following rosy views OF thu
Prs babe future Of the stock market:
). = Bache & Co.-Much more interesting
ana c- greater significance than movements Of
prices were reports of earnings Of several Of
the principal companies. Pennsylvania for
June showed an unexpectedly large increase in
gross. amounting 70 81, -2oO; the small de-
crease N net WAS not unlocked for. as the
company is again charging heavy betterment
outlays 10 operating expenses The reports Of
Chesapeaz and Ohio and Norfolk and West
s-A -of lhe nscaa year We're by al means the
best on record, showing earnings OF per cent
ana Z Ser cent, respectively. on stocks Ca
-1dlhl racine ana southern halfway nave
5gst closed the most prosperous years in their
history. Lackswsnna in the first six months
or t-e current year earned 81 per cent, or al
the rate of - per cent per annum on the
S26.6ol.O0O stock AtchisOn 5 yearly statement
was a poor one by reason OF unprecedented
floods in its territory, but in spite OF So. O00.
COO decrease IN net the common stock earned
nearly per cent These reports OF enormous
tratnc and earnings are such as TO be OF eS-
tl'-ine importance N moldlng puoHc opinion
10 appreciate Al their true value the standard
railroad shares IN the long run il is earnings
ana clF-oends lhat make prices. ana the con-
clusioE IS inevitable that with excellent crops
assured the standard shares viii seek higher
Iudustr.als in the late trading Of the week
were active and fn better strength than the
railroads. scoring an average gain fof III PEI
4 tura OF The actual trading was the strong
lertCne on The decline, the excellent charac-
Y
E-te failure Of the bears 70 dislodge long
steel issues continued strong throughout the
week and what little change in the steel trade
Took place was in the way OF increased actiy-
.Cg. Advances in the equipment companies
shares reflected an increased volume OF orders
either actually placed or in sight, and thi@
Improvement in turn was rejected in better
market Tor steel plates conservative esu-
mates place the Steel Corporations earnings
F1r july al a little Sll. .O00, 600, or nearly
equal 70 the July figures OF 1902 and 1903. Ne.
ne 0f @
coal lands from the Pittsburg Coal Company
eaU attention anew 70 the 1ar-seeing policy OF
holdings Al least Two years q prospeItIy
are iu sEh- for the steel companies ana this
fact The present price Of shares has by no
Copper shares remained rather dulI through.
OUT The week. although the metal advanced
esc e pound and heavy sales OF Lake copper
were -euorted al I51kc. AS we recently pointed
out rhe statistical position OF the metal Is eH-
cep1lonally strOng-in fact, stronger than al
80 r,r,ey5o7.s tine IA the past half century
Il Is NOT question of the producers main
tanning prices. but rather Of preventing run
Henry Clews-It is significant that quota
rions to-day are wei up 70 the highest aver
MED The election Of Mckinley and the defeat
ot nat money IN 1896. In June. 1895, the aver
sge quotation of twelve leading tndustrials
vras IS To-day the average quotation Of the
same stocks is about 81. which IS the highest
average ever reached, notwithsJanoing the
great upward movements Of 1879 lsVl ana
1902 The nearest approaches 10 the present
average urfce q these sndustrials were "a in
Serrer1Ier 1899, IS in June 1901, and % in
December. 1904. And prices Of prominent rail
vzv stocks made an even more striking dis
rfav The average Of twenty representative
stocks IN June 1896. being 81 while to-day il
IS above l26-an average that has been DUR
once exceeded. namely. by that OF l2S dur
trg the memorable times in the autumn u
1852 and from which there was gradual re-
Ceeslou 10 about So during the reactionery year
~ 1903. The fact should not be overlooked
therefore that as far as the price gauge is
c---erued the market IS to-day at the highest
" Tor many years. II has not however,
y ed this eminence as a result OF WIG,
-s1Essless speculation but has crept gradually
onward rejecting general prosperity and ols-
counting future prosperity As already noted,
the standard investment stocks are becoming
81 closely held they are practically out Of the
market as speculative securities. ana this IN
t-rn Is encouraging trading IN the lower
rrfeeE class Of securities IN which inoustrials
fzure prominently
everybody IN business is now waiting for the
great. corn crop TO pass the danger point
vrfch barring widespread and increasingly
f-rlnrot,sbl disaster. X VIII DO IN the next
Two or three weeks. Crop reports during the
week have. taken altogether. maintained their
favorable character. though the Government
reberr on cotton, which is this month issued
-r--I ,,-oner urecautious 70 insure its accuracy.
C1rfrrns other authorities that the cotton yield
VIII be considerably below that OF last season
Much interest attaches 70 the August report
a. the Department OF Agriculture on the grain
crous which viii appear st noon on Thursday,
the 10th. Wall street IS looking forward 70
one Of the most prosperous years n railroad
history.