Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-24
And BEARS

NEW YORK. November 24-"The best
rule for Wall street SPECTATORS. says q
trader OF sporting proclivities. SIS that
sagac.ous old rule for race-track betting.
follow the wise money
II
According to bond dealers there Is only
one important reason for the low prices OBJ
tained In the city bond sale yesterday. and
that is that the market Is now practically
gintted with the issues Of 31k per cent
corporate stock that have been made since
the consolidation with plenty more coming
1t Is understood that the syndicates which
took the last few issues previous to the one
offered yesterday are still hung up with
the bulk of them. and these bonds could be
bought In round lots yesterday below par
at the very time that par and interest was
being bid for the new Offering.
In the last few weeks city S1ss have been
of manipulation attaches to the price OF
par and one-sixteenth. which was made
early this week. AS a matter of fact it was
intimated yesterday morning that one OF
the city's depository banks had agreed
practically to underwrite the new offering
at par and interest on condition that the
proceeds remain on deposit In the bank
without interest for as long time as possi-
pfS, WniNH WOutu Hftsdu THAT utoifcy thi~t
ket like the present and such as Is likely
to be had next month, the bank could make
enough interest on loans of the city's
money by December 81 to mark the bonds
well below par.
story current after yesterdays sale was
that some of the bidders had arranged to
have the funds remain in the city deposit
tory bank, with which these bidders had
made special provision for loan in order
to assist in carrying the bonds without
loss.
Such a special arrangement would doubt
less work out to the same effect as the
more direct method first suggested. The
indications seem to be that II the city Is
to continue issuing bonds at no higher rate
of interest than 31s per cent and that If the
city must obtain at least par for them. some
such expedients as have been indicated
must be consented to In order to enable the
banking house purchasers to market the
bonds at a profit below par II necessary.
The demand for these bonds is doubtless
sufficient to permit their ultimate absorb
ton, but as it is now the issues have to
compete with By and 4 per cent railroad
bonds of undoubted merit, which have high
ly valuable speculative features in the form
of conversion privileges in addition to their
investment merits.
Including yesterdays bonds. the city has
sold total of $15O,667 600 OF 81 per cents
in the last three years. With money worth
more all over the world than it has been
in the last two years something besides a
3h yield is likely to be sought by Investors.
r 4
Compilations OF railroad earnings made
by Wall street news agency show the fol-
lowing results, compared with the cores
ponding period last year:
For the first week Of November the gross
earnings Of thirtyseven railroads aggre-
gated S. 128, 1874, an increase OF 44,se2, or
7.19 per cent For the second week of No
vember the gross earnings of twenty nine
railroads aggregated s., 0S9 424, an increase
OF S71.557, or II. II per cent. From July
to November IA the gross earnings OF TWEEN
ty-nine railroads aggregated 1862 129, 391, an
increase Of $s,847 $40. or 5.6S per cent.