Evening journal., 1905-08-05
RISE IN STOCKS
WAS GENERAL
Two Years of Prosperity Are
in Sight for Steel Com
panies
WHOLE OUTLOOK IS BULLISR.
speeIal 70 rhe Evenlnr IournaI.


Special TO The Evening Journal
New York Aug. 5.-The weekly A.
nanciai review OF j. S. Bache and Conn
pany today says:
A general display Of strength chars
acterized the week. and important ad-
vances Ia prices took place The fea-
ture OF price movements was the sharp
advance in high-priced railroad shares.
such as Chicago & Northwestern and
Lackawanna. and In specialtes like
American Smelling and Refining COM
mon. American Sugar common. Read
ling. Louisville and Nashville. Southern
Railway and the equipment companies
shares. Lackawanna sold at the high
est price on record. and Canadian Pa
cific. on rumors OF rights IN connection
with the double-tracking OF the sys-
tenn from Fort William, on Lake SUI
perior, to Winnipeg, was strong at ~
price equal to its former high record.
Much more interesting and Of great
er significance than movements of
prices. were reports Of earnings OF sew
eral Of the principal companies. Penn
lsylvania for June showed an unexpect-
edly large Increase In gross. amounting
to 81, ,690. 200; the small decrease in net
was not unlocked for, as the company
/ is again charging heavy betterment
r outlays TO operating expenses. The re-
! ports OF Chesapeake and Ohio and Nor
folk and Western for the fiscal year
were by an means the best on record.
3 showing earnings Of 4 per cent. and z
4 per cent. respectively on stocks. Cam
d adian Pacific and Southern Railway
have Just closed the most prosperous
4 years IN their history.
Lackawanna in the first six months
Of the current year earned 81 per cents
5 or at the rate Of So per cent per an
e mum on the s26600.0oO stock Atchi-
= sons yearly statement was a poor one
= by reason Of unprecedented floods i'm
h its territory. but in spite Of a SS.0o0,0oO
Is decrease In net the common stock
a learned nearly seven per cent. These
B. reports Of enormous traffic and earn
a ings are such as TO be Of extreme inn
h, portance in moulding public opinion to
l. Appreciate at their true value the
standard railroad shares. In the Ions
run It Is earnings and dividends that
make prices. and the conclusion is ip-
= evitable that with excellent crops as
sured the standard shares win seek Z
o. higher level OF prices.
IS Indnstrials Ia the late trading OF TIT
p week were active and IN bette
ii' strength than the railroads. scoring an
nc average gain OF 121 per cent. agains
81 per cent. for the latter. The feature
Of the actual trading was the stronf
J undertone on the decline OF Tuesday
le the excellent character OF the buying
~ on recessions. and the absolute failure
"a OF the bears TO dislodge kong stock.
W Steel issues continued stronf
re throughout the week. and what littl'
e' changes In the steel trade took place
le was IN the way OF increased activity
iu Advances in the equipment companies
p shares reflected an increased voium'
- OF orders either actually placed or II
al sight. and this Improvement In turn
was reflected In a better market 10
nt steel plates. Conservative estimate
ne place the Steel Corporations earning
for July at a little over S11. eco. 600. o
ne nearly equal TO the July figures O
3 1902 and 1903. Negotiations for tn
A. purchase Of 5000 acres tof coal land
~ from the Pittsburg Cod Company cal
ne attention anew TO the fer-seeing polio
Of the company In adding 10 its alread
e. heavy holdings. AT least two years O
ne prosperity are in sight for the stee
ne companies. and this fact the presen
price OF shares has by no means dis
nc counted.
ck Copper shares remained rather du'
throughout the week although tn
" metal advanced three e-eights OF cen
IN a pound. and heavy sales OF Lake cop
per were reported at fifteen and one
half cents. AS we recently pointed on
the statistical position Of the metal
exceptionally strong. in fact. stronge
than at any previous time in the pas
Ter half century. II is not a question {
the producers maintaining prices. bt
j. iather Oh p'e'eii'i"s ''S MAJ
ne ket.
-, The one possibly doubtful factor 1
- the situation is the outcome Of tn
peace negot lions. but it doestnot seei
that there can be any but 'favorab
go solution. other factQrs iu theasituatio
IN are uniformly favorable, andYthe Out
rec look was never better.