Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-04
bull AID BEARS
lpeelel plspetch 3 The Str.


NEW YORK August 4.--1ni view Of the
fact that the stock market has been al
vancing fer about four weeks with prac-
tfca1iy no reaction. except that Of yester-
day afternoon and IN view OF the exrecta-
lions Of an unfavorab1s bank statement,
speculators expected tho market to be ir-
regular and reactionary today. and perhaps
for the first day or twu of next week. but
they did not look for prices 20 go on more
than or per cent on tho average. It
was still confidently believed that the mar
ket would be strong ana active for some
weeks yet Although It was admitted that
the public had not been active in the pres
emit movement. representatives of commis-
sion houses said that they had many Gus
toners who would come into the market
on rather large scale il prices were al
lowed to 80 on, even moderately.
-
A financier who. has recently returned from
Canada believes that the future of the Cana
dian Pacific Ia brighter even than that OF
any of the large railroads in the United
States. In spite Of the fact that the gross
earnings for the last fiscal year increased
more than $11,o000 coo over the previous
fiscal year Canadian Pacific interests expect
the gross receipts to continue to Increase
- LILO 1e0 VI dOout Fi,VVOLV u mOUIH oyer
last years phenomenal returns A glance
at the Canadian Pacific's earnings by
months during the last fiscal year will show
that beginning with December last gross
earnings. with the exception OF single
month. increased more than $1.0O00o0 a
month Last years wheat in the Canadian
Pacific territory is still moving in large
volume and a representative of the COM
pany. says that In all probability all of
the old wheat will not be moved out before
this years crop Is ready for shipment.
The new wheat crop in the Canadian
TENDER. That month and October are gen,
orally the two largest months in the COM
pany's fiscal year.
4
The fnancier quoted, says that Canadian
Pacific officials. would not be surprised
to see the gross earnings during September
and October increase about S2Oo0Oo0 each
month. The directors are scheduled to
meet in Montreal week from Monday to
take action on the semi-annual dividends.
1t Is still believed that while the dividends
on the common stock Will not be increased
the shareholders will receive a bonus of
some kind.
The activity in Chicago Union Traction
stock during the last two days Is said to
nave been due to the belief that when a
settlement Is effected with the city it will
De round that these securities, particularly
the preferred will have a much larger
equity than Is now assigned them by every
one. except interests entirely familiar with
the situation. All matters of Importance
between the company and the city govern
ment have been adjourned until September,
and 1t would not be surprising to hear that
they have been further adjourned when SEN
TENDER comes around. The earnings of the
company are increasing rapidly, and a
large proportion Of the surplus Is being
put back into the property. Electricity has
been substituted for cable power SO that
all the lines of the company are now being
operated by electricity.
-.
AT meeting held In this city YESTERDAY
of the executive officers of the trunk lines
ana ocean and rail lines. friendly agrees
ment was reached, and all danger of a
rujnous rate war on ocean and rail lines
has been averted. Considerable difficulty
was experienced in obtaining details Of the
proceedings. 1t Is understood, however
that as a result of the satisfactory adjust
ment OF disputes among the railroads an
agreement was made to withdraw the ex-
ls ISL, cut rates. and that the former rates
viii be restored on August 18 Meetings
with regard to the adjournment of ocean
and rail- rates we're held last week and at
that time great difficulty was experienced
At the conference held last Saturday the
various railroad reports remained at odds.
and when the meeting was adjourned sew |
eral interests gave up hope of settlement
ana predicted that a serious rate war would
result.
Carpenter. Baggot & Co.'S weekly letter
says:
Perhaps no one probable happening
have had a of
effect on the market as the replacing of
steel common on dividend basis. It was
an open vote of confidence by the most
powerful Wall street interests. and public
declaration that they believe the country's
prosperity Is to be lasting and that they are
bullfsh on the market The 5000 holders
OF the common stock are, of course bene
ntec, but the restoration of confidence by
reason of 1t Is Of more Importance and Inucb
tartner reaching than Is seen at first
glance.
Speculative opinion does not consider
that values in all securities have fully dis
counted the trade conditions which the
directors OF the steel corporation show To
Exist by the company's quarterly state
nent of earnings which are the largest on
record, and by their booked orders, which
ire almost the biggest on record
There seems to be a new appetite for
stocks. with no weakening in the buying
'orce. All offerings have been obsorbed
Win only slight hesitation. We have had no
such bull movement since January The
stock records for twenty years past show
but two or three instances In which the
month of August failed of bull movement.
There are now abundant Indications that
we shall have better than the average Au-
gust market"
~
The weekly financial review of j. g. Bache
& Co. says:
The outburst Of buying and the forcing
up Of prices this week was the more or less
direct result of the resumption of dividends
On little steel at the meeting of the direct
tors OF the corporation on Tuesday last.
The future import of such action and the
influence on sentiment cannot be measured
at once
August % must be kept In mind by all
spectators and investors generally. On that
date the new railway rate bill goes into eff
feet. What stand the railroads of the cotin-
try will take and what effect will be felt on
railroad earnings Is for the future to show.
The beginning of operation Of this bill will
not be regarded as bull argument al
though while 1t calls for a readjustment in
railroad administration, 1t does not neces-
sariy imply any loss in earning power to
the railroads. and 1t is one of the greatest
possibilities that the railroads will distinctly
gain. and the hard fn1fChf and autapopfz.ed