New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-15
FINANCIAL MARKET
Stocks Well Above the Low
Quotations of the Year.

many cases gains of from g to i points
/ being shown. but in spite of this i'm
/ p1ovement there is no more apparent
/ disposition the part of the public to
/ take an active position on the bull side
of speculation than there was when bar
gain figures were recorded. Outsiders
quite often are attracted to the market
! after prices have recovered to some ex-
] tent from periods of depression, but in
/ the present case they evince no liking
/ for Wall Streets wares, Notwithstanding
bullish advice from commission houses
and indications that liquidation has
/ ceased for the time at least, although
some buying for cash is reported.
Doubtless there are operators who are
waiting for a new low point, but if such
! a level should be reached the same oper-
ators viii not know 1t. nor viii any one
else until subsequent records are studied
Some people by chance catch the low
point of a bear movement, and there are
not a few spectators who believe that
buyers of stocks on July 26 secured their
lines at the lowest figures that will be
reported in the current year; while, on
the other hand. there are just as many
market followers who believe that
liquidation will be resumed and that
quotations will yet move under the poor
est so far recorded.
There are two distinctly divergent
opinions in Wall Street regarding the
! future of the stock market. and the pub
lie trader who makes UP his mind TO
deal in stocks on a small margin just
now and does not know whether to go
| short or long may well let the toss Of
/ A coin govern his movements, as he is.
| likely to lose no matter which side of
The account he follows. Public traders
! seldom make money in Wall Street when
| they deal on borrowed money, chiefly
because they buy more than their credit
warrants and because they have not the
/ nerve to maintain their position when
| prices go against them, even II they are
amply supplied with funds, and as d
| consequence the outsider who goes into
the present extremely uncertain market
as a margin trader should provide his
/ family with good sized insurance
protection Buying for cash is diff
| ferent matter. At prevailing quotations
| solid dividend paying stocks may be
! bought TO return a most satisfactory IN
come yield, and the buyer need not
worry over his purchase if price move
! n7ents should go to d lower level Most
stocks are selling under d normal level,
and their prices therefore will not go to
q permanently lower basis: and event
uaIIy quotations will rule many points
/ In advance of the prevailing range
Ii does not appear that the prices OF
railway mortgage issues will decline to
any degree from the current level Rall-
/ road bonds are a safe purchase at these
figures. while the same thing may be
said of many Industrial and public util-
! ity securities, especially bonds OF Well
established gas companies. There are
MANY industrial and public service bonds
that return from ~ to 515 per cent at
! nresent quotations. as, for instance, La
! clede Gas first 5s. New York Telephone
first and general mortgage 412s, United
| States Steel sinking fund 5s, American
| Agricultural first conyertlbles. INTERIOR
ough Rapid Transit 5s, Virginia-Car
lima Chemical first IS. Central Leather
| first lien rs, American Tobacco As ana
International Steam Pump first os-
! Among the attractive railroad mortgage
securities that yield more than per
cent and as high as 615 per cent may be
mentioned Missouri, Kansas & Texas is,
Reading general Is, Norfolk & Western
| convertible As Union Pacific first and
refunding Is, New Haven convertible os'
81
1ing+on Joint as, Delaware & Hudson
| convertible As Pennsylvania convertible
/ 31hs. Southern Railway first os, st
T,oUis & San Francisco refunding 4s,
Kansas City Southern refundIng 0s ana
| Kansas City, Fort Scott & Memphis re-
funding As The bond market is well
worth the attention Of people who have
| idle funds on hand.
| The railroads are not poverty stricken,
| r,,+ higher freight rates would be a boon
| in these days Of increasing operating
| costs. Gross earnings are heavy but
net returns are beginning TO make dis
appointing comparisons with preceding
wears though the declining tenoehcy
does not imperiI, at the present at least
| the dividends of our chief companies
! Some of the smaller roads, however,
MAY be compelled to reduce dividends,
because they cannot economic further
IN axnenses without injuring the physl-
cal condition of their properties AS q
/ waiter OF fact there are not many dlrec-
lions in which any railroad can econ
or7,,ze inst now. They are forced to
maintain high wage schedules, the cost
Of maintenance and way Is heavy be
causa Of the increased cost of materials
and labor and the necessity Of large eX-
/ rapait1Jres incident TO the enlargement
! NJ traffic while new rolling stock, when
( il cnoted higher than ever before, con-
sta,,tlv must be purchased, to say moth
/ ing Of SIS q ton rails. upon which IN
srite IF their great weight and fine quaA-
/ inv fhe wear and tear IS terrific. The
| 20 ilroads soon will be compelled to spend
more on equipment and rails, ana they
believe that IN view OF the fact that
rates have been declining for ten years,
--hila in the same time the cost Of every
thing that enters the expense account OF
! the TRANSPORTATION companies has been
advancing. they are entitled to the in
] dorsenent by the Interstate Commerce
/ Co,,7,,7Sesion Of proposed new freight