New-York tribune., 1905-01-09
THE WEEK IN WALL STREET.

dav being almost entirely for the account of the
professional element, which in the absence of an
active outside demand for securities worked on
the short side, considerable success attending its
efforts There was, however, little response
from genuine holders OF stocks. the down
ward swing failed 10 attract active liquidation
from substantial of securities OF
course, some of the lightly margined commits
sion house traders were frightened into selling
but their operations were not Of sufficient i'm
portance TO deserve more than passing notice
In the well informed banking circles sentiment
appeared 10 be bullish over the markets out
look for higher quotations in the current year.
and the idea that Congress may enact legislation
inrnical 10 The railroad and industrial interests
IN the United States was not entertained by
prominent bankers. despite the efforts of a GER
tain element 10 create uneasiness over the agi-
tstion regarding the extension of the power OF
the Interstate Commerce Commission and the
possibility of activity on the part of the gov
ernnent in enforcing the Sherman Antitrust
law. There is nothing in the attitude Of the
present administration on the question of trusts
snd railroad rates that alarms sensible men, and
II hardly appears possible that stock market
rnanipulators viii be able 10 scare American
investment interests because public opinion in
this country favors a more active government
supervision of our big corporations. The gov
ernnent does not seek 10 impose burdens on
American corporations but it does desire to pro-
tect American people. whether they may be big
investors or poor laboring men
Il is now admitted by the Wall Street men
who year ago were shocked because the gov
eminent brought successful suit against the
Northern Securities Company that the decision
declaring the company an illegal combination
was for The best interests of the American rail-
read situation, and it IS not unlikely that the
f17as he
tions contained in the Presidents Message re-
garding corporations and the wisdom Of in
creasng the power of the Interstate Commerce
Commission viii, If carried out help rather
than injure the business interests Of the coun-
try Regarding the Northern Securities Com
pany. il is interesting note that, despite the
decision rendered last week in favor of the
called Hill-Morgan party in the Hartman stock
distribution suit. there is evidence of a lack
of harmony among the various interests con-
cerned in the litigation. while matter of
fact there is excellent for the belief that
plans are being formulated for satisfactory
settlement Of the case irrespective Of the final
decree Of the courts relative to the manner in
which the assets Of the Northern Securities
Company shall be distributed. Northern Sc
curities stock is selling on the curb. at price
that shows profit 10 the Union Pacific of up
ward Of S400o0OO0 on fits holdings OF the issue,
and, while the Union Paciacs interest in the
Northern Securities Company is increasing, fl
is well TO bear in mind that the Union Pacihcs
Southern Pacific asset is growing more valuable
every day through the increase in the earn
ines Of the Southern Pacific and the prob
ability OF dividend the stock at remote
period. Union Pacific appears destined TO sell
higher in the stock market. while the same may
be said Of St Paul. New-York Central, Pennsyl-
vsnia- Canadian Pacific and various other high
grade investment securities.
Canadian Pacific is cheap IN comparison with
the majority Of first class stocks Its invest
unent return at present prices is greater than
that Of the New-York Central. Pennsylvania
ST. Paul, while the current earnings and the
roads outlook for further gains in business are
as favorable. II not more so. than that of the
other big systems, the securities of which are
dealt IN on the Stock Exchange. Canada has
made wonderful industrial and financial prog
ress in the last few years. and the same may
be said OF the country south. Mexico,
where railroad and industrial expansion has de-
veloped at a rate that has attracted speculative
and investment interest IN the securities Of the
Mexican railroads. The course of Industrial
affairs in The United States in the opening week
Of the new year presented no reason TO change
the predictions that made in the closing
months Of 1904 regarding the probable move
ment Of the cOuntry's commercial activities in
1903; indeed, evidence accumulated showing
that conditions governing the intrinsic worth of
securities are growing more substantial in char
scter. that railroad earnings and the consump-
tive demand for the products Of our iron and
steel works and for all manufactured products
are growing in volume. Earnings received In
the last week were particularly encouraging.
both in the gross and net returns particularly
1n the case Of the Pennsylvania, Southern Pa
cifc Canadian Pacific. the 800" company and
the Southern Railway. Pennsylvania showed an
increase in gross on the lines east Of Pittsburg
for the month Of November Of S653. 600 and an
increase in net OF S327.6OO. and on the lines
west Of PIttsburg an increase in gross Of $685.
600 and an increase in net Of S622, 800 making
for the two divisions a total gain in gross Of
Sl3l3,2OO and a total gain in net Of $3.50 100
Union Pacihcs gross earnings In November in
creased S66I.0O0 ana net earnings 1921 600
while the Southern Railways earnings for
the same month showed a gain of S462. .939 in
gross and gain OF S212963 in net. comparison
being made with the corresponding period in
1903 Results Of this sort show the substantial
character OF the Improvement that is going on
in the country's Industries. and furnish one of
the reasons for the current optimism in Wall
Street over the future OF the stock market
Money continues IN abundant supply through
out the country, and there is no immediate
prospect Of higher rates for loans. despite gold
exports. Gold doubtless viii continue to move
toward foreign countries just long as call
funds remain easy IN the United States. mas
much at present better rates can be Sc
cured for the use Of money abroad than in
the home markets The demand for first class
companies are planning 10 offer new issues 10
the public IN the course Of the next few months