New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-15
TIE EFFECT OF RATE-WAR on TIE STOCK
MARKET.

wednesday, NOV. l4-p w.
This mornings stock loan market was the
active portion Of the Stock Exchange. The
large new borrowing demand for Lake Shore,
New-YorlS Central, Northwestern, Union Pacific
and Philadelphia and Reading, reflected the char
acter of yesterdays sales of those stocks. OF
course the demand was freely met by yester-
days purchasers of the contracts. The
time for demanding the delivery of certificates
has not come, but it will, and that before long
As far as the making of prices for stocks was
concerned, the bears held possession of the
market till past midday. As a rule they sold
stocks lower than yesterdays lowest figures. Only
when that class of selling closed was it possible
to discern the true character of the market
Then, however, it quickly was apparent that
the free offerings of contracts had been absorbed
by some other buying than that of board-room
iracton-chasers.
To comprehend the t:ue character of the mar
ket it is necessary TO follow the efforts made
toward depression. They are plainly understood
and their source is well known to the profess
SIGNALS Of the Street To-day of the "big
heads" of the Pennsylvania Railroad is quoted
as saying: The ability of Pennsylvania to
stand pounding is shown by the fact that in
the trunk line war from 1888 10 1885 the net
of Pennsylvania fell only from thirty-seven
millions to thirty-one millions the net of New
York Central dropped from seven millions 10
two millions, and the net of Erie from seven to
four millions We question if any authority
of Pennsylvania is responsible for the quotation;
but quickly following its publication the local
organ of the bears" submits a table, showing
the gross and net earnings of the Pennsylvania,
New-York Central, Erie, and Baltimore and Ohio
for the years of 1888 to 1887, inclusive.
child ten years of age will remember that IN
1884 and 1885 the on through business
was bagatelle compared with the fight on
local traffic between the New-York Central and
West Shore roads In that Pennsylvania local
business was not at all affected; but it was that
which knocked off the net earnings of Central
from $1,000, 900 to So, 000 600, and of Erie from
$1,000, 900 to 81, 100000. Nothing except des
peration could order such comparisons to be
made with the expectation that any would
be fooled by them.
President Depew, Of the New-Yorll Central to-
day is credited with the statement that: The
business which is affected on lines by the
cut is less than six per cent; in fact 9-l0 per
cent" This only confirms the position taken
in this column Tuesday morning, and more than
justifies any criticism that has yet been
made on the action of the New-Yorl Cen
trail Company. The whole 0lO per cent Is
not worth the decline of 2 per cent on $4,000
600 capital stock of Ncw-York Central, let alone
the decline of 5 per cent on $50, 200, 900 of Lake
Shore stock and the general decentralization of the
whole stock market
IL is evident that powers representing the major
ity interest in both the Pennsylvania and New
York Central have taken active interest. and it
probably will not be many hours before the Street
will learn thaG safer ground has been taken III
the management OF the two great American rail
roads. IL the meantime, the short interest
all over the market has been UNNECESSARILY in
creased, and is IN more dangerous situation
than before In the late dealings prices re-
covered sharply, and the market closed strong and
generally higher than last evening.
THE DAY IN THE BOND MARKET
At time of writing we have no report of bond
purchases by the Treasury At the regular open
ing Of offers there was none that came within
the Ireasury's lgures. The offers follows /:
4s-sj0000 at l2s, $4,000 at 12S 3-S, 100000
at 1907 and of l-2S $4,000 at I07 1-2 and
interest. The local market quiet and nominal
bids for the as were advanced, but 40 amounts
could be sold at the quotations, which are
follows: