Evening star., 1906-03-01
BULLS AND BEARS

Special Dispetch to The star.
1 NEW YORK. March 1.-Georgia Central
income bonds grow IN favor as the roaG
continues to report good gains In earnfngs-
Al three classes received last year for the
first time the full per cent interest to
which each 10 entitled. and after an charges
there was q surplus OF $1046l7. Earnings
| for the frst seven months OF the current
fiscal year show an increase Of &2Sl.fT In
net so that an ampIer margin over interest
charges than last year b being piled mp
Predictions are made that the third Incomes
| will sell above par befors long. with Dropor-
tionate advances In the other clasoes. IL ID
| believed that . unifying mortgage win soon
| be created to convert the income bonds
into fixed charge securities and perhaps
provide some new capital for improvements.
n II
/ For the third successive month in the
| current fiscal year the Reading Company
reports net earnings that show a decrease
from the figures for the corresponding
| periods in the year previous. Earnings for
the seven months ended January 81 last
| were. however. still ahead OF the earnings In
the previous year. surplus earnings having
Increased $190.965. The Erie statement for
January is very satisfactory, showing an
| Increase of $5Ss. 343 in net.
1
X x
| This is time of the year when the stock
market IS likely to discount very rapidly
not only all the Immediately unfavorable
factors In the speculative and general situ-
| alton, but everything unfayorable that
seems likely to or may happen during the
year, including utter ruin Of the crops.
!
Further inquiry into the matter Of re-
| quest for due bills for Union Pacific and
| Consolidated Gas dividends, the requests
| coming from brokers who did not put in GER
/ tain certificates for transfer and being
| made to brokers in whose names the GER
| tiicates stand. show that while the total
| OF stock on which due bills have been ask
ed Is rather larger than usual, 1t would
| probably be unfair to infer anything from
| 1t except that some brokerage houses
| thought 1t not worth while inadvisable
| to take the trouble to have transferred all
| the stock which they held. Some loans they
l did not or would not want to disturb. and
| the coincidence of the closing of the books
| for two such important stocks as Union
| Pacific and Consolidated Gas would have
made 1t troublesome in some cases to trans
| fer all the stock held by some houses.
| house which has been one of the largest
| dealers in Union Pacific and Consolidated
! Gas in the last year has received requests
| for due bills a total of only few hum
| dred shares out OF many thousands which
! stand in its name after the last transfer
! period and were sold up to the middle of
| last week
| The Knickerbocker Trust Company has
increased its capital stock by s2o0.OOO, di-
vided into 1000 shares of par value of
f1n tanIrt, 1lnr1 fol-a
the new issue at the price at which it was
| offered, $1,000 share. the highest premium
| ever placed new stock issue of q
| corporation, 1t is said.
\
A shrewd market commentator makes the
| following interesting observation: 1.-THE
| price of stocks has an obstinate way of
refusing to decline when the price and legit-
| innate value meet. For years at time
| poor markets exist. and the whole list con-
| tinues at plane of prices below values.
| Very few bull seasons between 1891 and
| 1898 brought prices up to what they were
| worth. On the other hand, bull markets
1 are equally apt to cover a considerable pc
| Rod Of years, and prices are not only what
| the property Is worth, but contain also the
| capitalization of future hopes. At present
| such capitalizations are being eliminated
| from prices, but It, would take more than
/ particle below what they worth"
|
~
Taylor & Smith say In their weekly mar
ket review: THE monetary situation at
| the moment is the chief obstacle to any
pronounced advance. business necessities
| being so great In the west and the south
| that money is finding full employment in
those sections. delaying its return flow to
| this center. This necessitates resorting to
| borrowing abroad. and of establishing cred
| It's for future requirements, and It is for
1 this reason our markets are so sensitive and
| apprehensive OF any likelihood OF a distur-
bance between foreign countries, as 1t
might shut of credits which are viewed as
| a sort OF reserve to be used In any local
monetary contingency. IT, however, our ex-
ports keep UP as they now promise and
| market In Europe, 1t win not be long before
our money market VIII be Independent of
| foreign funds, even II the flow OF money
| from the west and the south to New York
| is less in volume than Is customary at this
season of the year. We believe the time
has come to accumulate stocks for substan-
tial profits later on. buying only on weak
spots. and restricting purchases to stocks
of established merit, and with good future
prospects,
x
The court of appeals has decided that
stock broker must give a customer formal
notice Of the time and place of the sale
of stock held on margin for such client. or
he cannot recover any loss which he may
sustain in the transaction.
X
The Central Trust Company had received
no money this morning to pay the 1891, SEQ
of interest due to-day on the $4,000, ,OCO OF
four and half collateral trust notes OF
the Cincinnati. Hamilton and Dayton, and
although it had until 3 o'clock to raise the
money and make payment It was apparent
that interest would be defaulted.