New-York tribune., 1905-02-13
THE FINANCIAL MARKETS.
FJrRTHER ACCUMULATION OF GOOD SECURITIES
REPORTED.
Street Bad Effect from Rate Bill 1t Should BE
Enacted by Senate Earnings Continue Heauy.
THE WEEK IN WALL STREET.


70 move toward a lower level-that is. II the
Street were of a mind to tndorse the views OF /
the railway officers who are so much eAclteu |
over the proposition to extend the power ol Tue
federal government over the transportation
business in the United States. The larger panN-
ing and speculative interests In the wan Street |
community do not believe that the Senate VIII I
pass the bill at this session of Congress- and |
even II tbev thought that such legislation would I
be enacted it is not likely that they would sell !
their stocks on the theory that intrinsic values
had been adversely affected. 1t IS quite hkely |
that if the Senate should change its nina ana |
follow the action OF the lower house In passing /
the Townsend -Esch bill there would be con-
siderable speculative selling in the stock market
lust as .here was In Thursdays market last |
week. but such operations would not fore |
shadow bankruptcy among the American rail- |
roads Naturally the railroads do not approve |
any measure that seeks to give the pupLc d |
voice in the matter of regulating the great |
TRANSFORMATION business in this country put thls
fact does not warrant the statements predict
ing wholesale disturbance in the railroad |
world. Mr. Fink. of the Norfolk and western
was quoted last week as saying that the passage |
NJ the rate bill by the Senate viii be followed |
nv conditions almost too terrible to contemplate
1t will be a temporary state or rlhd oIiiy Iha'
will be terrible and that will be co1hned 10 the |
TRANSFORMATION officers. There are apparently
some railroad officers who believe that the |
Townsend -Esch bill provides for wholesale re-
duction OF rates Nothing of the sort is intend |
ed the governments idea being to regulate the |
railroad business in the interests of the COM |
panies and the shippers. In the end such regu-
Iation would work to the advantage OF the rail-
road industry, as 1t would serve to orlng rate |
cutting to an end, something that traffic asso- I!
ciations and ''gentlemen's agreements nave /
failed to accomplish
In the greater part Of the week the movement !
of values on the Stock Exchange and on the |
curb reflected further accumulation of securities
bv public operators and by substantial specu- |
lative interests, although at the close there was
considerable selling for the latter element, and
the fact that many of the leading operators |
made plans to go away from The city Tor a |
month or more suggested to many minds tnat |
the holdings Of the big men would be distrlo- |
uted. in part, at least. A favorable feature OF |
the market was the development Of a greater
opposition to the advance. Many people believe !
that good sized reaction is due and that a |
period of heaviness would strengthen technical |
conditions to an extent that would insure much |
better prices later on In the season. II cannot !
be denied by the most rampant bulls that many |
issues are selling at figures that more than dis |
count all the favorable factors in the situation,
and it is probab ble that this will become more !
generally recognized in the near future and be |
ATTENDED Dy q QSclln6 IN QucLdIiOLS ANO HI I
portant setback is looked for at the moment. !
but il may be we'll for traders to be prepared |
for speculative movement in favor of the bears |
for the simple reason that, irrespective of condi-
tions affecting the real worth Of securities, prices
will not continue to move in one direction in !
definitely. Since January the leading active !
railroad shares have risen from an average price
of 1873 TO 1926, while in the same time the |
leading active industrial securities have ad- !
vanced from an average of 69.46 to 7226, COM !
pared with the period just preceding the So
called Lawson decline in early December The |
low price last year for twenty leading railroad |
issues was $685., recorded in May, from which
there was an advance to HAS IN October and a
further advance to 1898 in the first week in
December. as against above 122 at present.
Advancing values recently have not been ac-
companied by many news developments affect
Ing railway and Industrial companies, but the
movements in various Issues suggest to many
minds the belief that deals are pending that viii
materially strengthen the future of a number of
important corporations. and stock market val
ues are going through the discounting process.
At 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 Canadien Pacific. the Mime
apolis, St Paul and Sauit Ste. Marie issues. |
Manhattan, Reading first preferred. Union Pa
CHIC preferred ana western Union. Inc laSL
named stock returns to present buyers over 3
per cent, and in view of the quotations of most
issues that 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 800" pre-
ferred, which returns over 4 per cent The de- !
mand for bonds remains active. and brokers
have no difficulty in disposing of all offerings.
The new Atchson convertible issues are quoted
the curb at 1O4. and sentiment is not bearish
on the Atchison shares because OF the8ncrease
in the company's bonded debt. The Atchison is |
a great property and the election of Rockefeller
interests to the board of directors, following
their recent heavy purchases OF Atchison stock |
| ought to act bull card on the various Atchi-
son issues in the current year.
Gold exports in the week were lighter in vol !
ume than in the preceding week, and cable dis
patches reported less urgent demand for the
metal for Paris account. Sterling at this centre
after easing off in the middle of the week, be-
came firm at the close, and foreign bankers
| looked for further shipments of gold In the
| current week So far gold exports have failed
! to affect the money market, as the receipts of
currency from the interior and receipts from
| the mines have about offset the outward move
ment Of the precious metal; but In the near
future better rates for loans doubtless will pre-
vail as the shipments OF currency from out of
| town TO New-York are beginning to grow light
er, while before long interior requirements will
| attract money from this centre. The monetary
| situation in this country, however is excep-
tionally strong. far as underlying conditions
| are concerned. and IL is therefore not probable
that there will be any disturbance in the loan