New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-01
BONDS.
STOCK MARKET OPERATIONS.

STUCK MARhEI UFEhh11UNS,
Heavy liquidation IN yesterdays stock market
improved the technical position Of speculation
by eliminating weak accounts and placing secu-
rites IN stronger hands Stop loss orders were
reached in many issues and as a consequence
number Of small traders were forced to retire
from the market. especially in the case Of deal
ers IN the shares that have been such promi-
T1ent features in the recent speculation Open
ing at advances as compared with the closing
of the preceding day. the greater number of
stocks advanced IN the first fifteen minutes. but
sn the subsequent forenoon operations the ten
dency was IN the direction of lower prices, de-
clines Ct l 10 9 per cent being common in the
active list. Union Pacific, New-York Central,
Pennsylvania, ST. Paul and other leading issues
declined easily but at bottom prices there ap-
pea1ed TO be a good class Of support, which was
effective in bringing about sharp rally, although
before the close further selling carried the larger
number Of shares near the lowest OF the day,
the chief weakness being supplied by New-York
Central. which lost over 4 points. People well
Informed on market movements did not consider
the break In values as anything more than a
speculative reaction incident to a bull market
and at the close of the day sentiment was not
inclined toward the idea that the bull campaign
had reached its limit. A temporary period Of
declining values will do no damage. except to
small margins. London took advantage of the
decline 10 buy stocks in the local market,
deGion Of which was presented in further weak
ness in foreign exchange Money rates remained
easy
The annual report Of the Pennsylvania Rail
road Company which was published yesterday.
makes an extremely favorable showing, in view
Of the depression in business in the early part
Of the last year, gross earnings being heavier
than in any year in the history of the company,
with the exception Of 1903, while net earnings
showed only trffing loss. as compared with
the preceding twelve months. In 1901 the gross
receipts amounted TO S101, 329. 795, while in the
year under review they amounted to $11S,145,-
go. a showing that ought to serve to quiet the
critics who endeavoring to prove that the
large increase IN the capitalization OF the Penn
sylvania system is not justified by the earning
power Of the company. The money that the
road is spending IS being put lines that in
crease the earning power OF the property and
when the improvements now under way are
completed It doubtless viii be found that the
gain in earnings viii much more than offset the
increase IN capital obligations. Indeed current
earnings are at a rate that fully provides for
the larger dividend requirements, and a careful
study Of the present condition Of the property
Tnents ought TO convince the doubling
Thomases" that the investment position of the
company's securities IS based on the strongest
sort Of foundations. Pennsylvania shares as 6
per cent investments would not be dear at 1870
end the same may be said Of other 6 per cent
securities Of similar merit, as Canadian Pacific
New-York Central however, as a per cent in
vestment is not cheap at its present price, espe-
cially the outlook for the company does not
favor the belief that the dividend Will be ad-
vanced TO higher level.
There may be a combination OF a transconti-
mental character involving the New-York Cen
tral, the Northwest and the Union Pacific but
current quotations Of the New-York Central and
the Northwest, at least fully measure the ad-
vantages of such union. Regarding Union
Pacific, Street gossip says that the stock will sell
higher. and that eventually it Will be found that
the Morgan interests will have the upper hand
in the Western railroad situation. Union Pa
cifc Of course, is in line for a higher dividend
Among the few strong features in yesterdays
trading were Amalgamated Copper. Baltimore
and Ohio, Consolidated Gas and International
Power. The Southern iron and steel issues were
weak features. Sloss- Sheffield, for instance, de-
clining over four points. Heavy selling in a
number Of issues by specialists" who had
many stop loss orders on their pads. was fac
tor that induced large amount OF commission
house liquidation