The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-07-02
STILL IRIS RAILWAYS
Pennsylvania Foremost in Ac-
tivity and Strength.
CHANGERS IN DEMAND
Week Reviewed and the CON-
ing Month Forecast.

mand for the standard railroad stocks con-
| tinued as strong today as it was yester-
day and applied to much the same stocks.
Pennsylvania took the foremost pace,
both in respect to activity and strength.
The stock showed the largest gain at the
opening and held its leadership without
change throughout the day, closing at the
top level. 81 points above fast nights
price. Study Of the Nay report of earn
ings was the primary cause Of the
strength of this stick, but there were also
rumors in circulation that the incursion
Of the'New York Central into New Eng
land was to be followed by similar move
on the part of the Pennsylvania, in the
lease Of the New Haven road. The sus-
tanning strength of New York Central at
its higa level doubtless prompted some
large buying of Pennsylvania already pay
ing 1 per cent more per annum in divi-
dends than New York Central and SELL
ing so far under the latter. The extra
ordinary railroad earnings reported from
every section of the country was the mo-
tive for the buying in that department Of
the stock market The grangers were all
over on the half days trading. st. Paul
showed the largest gain in price. Burling-
ton felt the effect Of proiit-taking on the
publication of the May sta tement, show
ing an increase in the surplus for the
month of $4,000. The Union Pacific
stocks enjoyed the benefit OF a strong
shiwing in the May statement, as did Nor
foil no ~
rose over a point, and the latter about
as much. The early strength was largely
confined to the leading railroad stocks,
but became general after the publication
OF the bank statement on covering by
shorts, who were disappointed at the fail
ure Of the market to weaken There was
early weakness in the speciaNies on the
injunction against the payment of divi-
dends on Federal Steel and on talk Of an
imminent strike on street railway lines.
but disclaimers of an intention to strike
by labor leaders, and the strength Of
Sugar on the decline in raw sugars helped
this department, as did the strength Of
Anaconda. Consolidated Gas was Strong
on talk of a settlement Of the rate war.
international Paper and American Smelt-
ing weakened sharply in the late transac-
tons.
Bonds were moderately active and
strong.
In the ordinary course of events, the
operator in stocks and securities IS infiu-
enced by the expected rather than by pre-
sent conditions. Except when some sud
den and unforeseen event is precipitated,
the course of prices always reflects a fore
cast, and as far in the future as the
operator is willing to rely on his 5udg-
ment to penetrate. Thus the professional
operators sold stocks last week on the
well grounded belief that the course of
events would inevitably lead to squeeze
in the money market before July l. This
week. even though this expected event
had not yet occurred. stock operators be-
gan to look beyond to the period of
abundant money which will come with
the disbursement Of July interest and div
idends, and have bought stocks in antici-
patton OF that condition. Operators who
sold short last week have also been buying
this week to cover their contracts and
take their profits. thus helping on the
rising tendency. But the most important
influence of the week was the strength
of New York Cenral. corroborative as It
was of the rumors Of impending consol-
dations Of Vanderbilt railroad interests.
This comes under the head of sudden and
unforeseen events. though the longcon-
tinued flrmness OF New York Central at
a price above a fair investment value for
hac f1fsf AaI Of hv
insiders Of coming favorable developments.
The successful results Of the merging of
the Lake Shore and the Michigan Cen
trail into the New York Central are al
ready becoming apparent in higher eff
cheney and lower operating expenses. The
railroads in which the Vanderbilt holdings
are influential form so vast a ramifica,ion
that comprehensive plan OF consollda-
ton, such as W. i. Vanderbilt is said 10
favor, Is TO less feasible, considering the
conditions and tendencies Of the times.
than was the original through line from
New York 10 Chicago achieved 10y Com
nlodore Vanderbilt. The widespread be-
lief that the present Vanderbilt interests
contemplate a trauscontinental line from
Boston to the Pacific was reflected this
week IN the sympathetic strength OF Chi
cago and Northwestern, ST Paul and
Omaha, Union Pacific, Oregon Short Line
securities. and Oregon Navigation. The
strength in New York Central was the
most influential factor in inducing the
buying OF railroad stocks in anticipation
of the rise which Wall Street traders be-
lieve Is sure to come after July l. The
much improved condition OF the coultry's
crops and the springing up of a cash de-
mand for wheat and corn from domestic
sources and also for export have also been
influences. The large grain movement, be-
ing added 10 the already heavy freight
movement OF merchandise of all classes,
has brought the current railroad earnings
up 10 unprecedented figures. Tue Nay
statements Of earnings also show some
striking reductions in operating expendi-
lures FOR railroads in the southwestern
region. which mark the conclusion Of ex-
traordinaTy OUTLAWS for betterment which
have been in progress for some tine and
which were. charged TO operating expenses.
Railroads in the northwestern region, in
contrast, seem 10 Ne putting their heavy
gross earnings into the property, but they
showed no fall n the value OF their secur-
tiles on that account The attitude Of
London towards American securities has
been very favorable. Buying from that
source has been large during the week.
and has MADE sufffrsent evidence Of
change 20 effectually break the chain and
preclude the likelihood OF shipments Of
gold. Money rates have been high in Lon
don. even with credits extended % tie
open mArke; BY tee Bank OF Eas.and Of
upwards OF -. 600. ooeC resulting in a sharp