The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-05-28
EASTERN MARKETS.
NEw YonK STOCK MARKEI


NEW YORK, May 27-There was a marked
disposition in the Stock Exchange dealings to
sunder the speculation in railroads and in
dustrial specialties. The immobility of the
standard railroad stocks in the face of the
Decentralization in Sugar and Metropolitan
Street Railway was stritingly like the mid
summer markets of yore when Sugar was
likely to absorb a half to three-quarters Of
the total dealings and when many of the in
dustrials traded in had not yet been con-
ceived. The bears seemed to have gathered
fresh courage and made quite a savage on
slaught upon Sugar. the Tobacco stocks, the
New York municipal stocks. smelter and Steel
and Wire. Losses in the railway list
insignificant in most cases. There was a sim
Infamous decline in New York Central and
Pennsylvania, which was in rather marked
contrast TO the later strength of some so-called
diferential trunk lines.
The first hour had not expired before
tive demand sprang up for the Reading securi-
ties, based on the strong showing of the April
statement of earnings. A decrease in operat-
ing expenses of the coal company and in
crease in gross earnings by the railroad COM
pany combined to produce an increase in net
earnings for all the companies of Sl07, Gi9. In
connection with the good report submitted by
New Jersey Central earlier in the week and
the May gross earnings of Ontario and West
ern, the cOalers developed quite a buoyant tone
and enjoyed substantial gains all around. Erie
FIRST preferred shared in the advantage. The
rise in ,..ese stocks was carried to other rail-
road stocks and checked by the decline in
the specialties. abort covering causing rallies
OF between one and two points The failure
the bank statement induced a fresh raid by
the bears which carried Sugar down to 145,
Big points. The market yielded in sympathy,
the specialties quite sharply and the railroads
only slightly. The market closed under pres
sure. but vNh net gains remaining for most
OF the rairSAd stocks )
Sterling exchange made an unusual show of
strength Tor a saturday with rise of L cent
due 20 the hardening money rate in London
and the demand on that center from the Cont
In connection with the plethoric condition
here disclosed by the weekly bank statement,
there is some renewed apprehension of gold
exports. demand for railroad bonds
tinues strong at advancing prices, Reading
IS being most conspicuous. The exchange Will
remain closed until Wednesday.
When the exchange OF uncertainty regard
ing the fate of the coming crop comes around,
speculation in stocks by the outside public
proverbally rails to a minimum and the stock
market Is left TO the professional room trad
market derives 1t of support SO that the
professionals are almost invariably bears in a
duh stock market and bulls in a dull wheat
market, IN acceptance with the possible effect
Of crop failure in the two markets. That has
been the state of affairs during the past week.
Nearly every professional trader on the Stock
Exchange has been a bear this week. The
late recovery in prizes is not conclusive evil
dence or definite indication of change of
heart, as the professional traders look with
apprehension always on a few days interval
OF inaction and its possibilities OF important
developments
The heavy decline in values compared with
the corresponding period Of last year the rise
in value of imports. and the persistent rise in
the rate Of sterling exchange were all incl
dents 10 reinforce the argument that our
credit balance abroad has been exhausted ana
that a movement outward of gold likely.
The lanEuid tone of securities of numerous in
dustrial combinations striking indica-
ton OF the satiated condition Of the public de-
mand Tor them. and taken 10 foTeshow the
Danger OF a bFeak IN prices generally OF those
which were of inflated value and in weak
hands, which might demoralize prices gener-
ally. There were evidences not lost sight of
by the bears OF a desire to realize of
the heavy holdings taken over by powerful in
terests 10 check the panic due TO Mr.. Flowers
death. Much was made also OF the Impairment
To values Of an important group Of stocks that
would result from the enactment of a public
franchise tax hill by the New York Iegislafure
On these various assumptions the bears sold
stocks quite assiduousy during the early part
of the week. number of things during the
action in prices. Most important was the ex-
cellent traffic returns of railroads for the third
week in May Beginning with St Paul on
Wednesday with an increase Of $50, 900 on gross
earnings over last year, there was practically
no exception to the favorable returns. AS the
comparison Is with an unprecedented period
last year it could not fail to have force Re
ports Of damage to European crops during the
week suggested a future price for wheat that
would attract a movement of the reserve in
farmers hands constituting the invisible sup
ply, the amount of which is believed TO he large
IN spite of the large movement last year. 1t
was sufficiently obvious that the declines in
prices Of stocks induced by the short selling did
gulng confidence in the holders in their future
value. There has been pretty steady demand
from abroad for the standard railroad stock
and outgoing steamers carry large shipments
OF securities. The growing caution OF the pub
Tic toward issues Of new industrial combinations
and a falling off OF the furore Of speculation
in such issues is unquestionaby healthy
symptom. and makes for financial safety The
detailed statement of the April foreign trade
showed a number Of favorable features es-
pecially the large proportion of the increase of
imports. included in articles in a crude state
for domestic industry OF the total net in
crease in imports OF So 1907 this item alb
sorbed 5.3l6.4lI The prevailing ease Of money
and the activity reported by specialists in the
various departments Of trade and business
were all reassurlng factors. There has been a
of railroad mortgages during the whole week
There was moderate absorption of gilt-edged
and government bonds. But the favorites are
new issues for refunding and reorganization
purposes in course of disposal by reorganiza-
ton syndicates. and which may presumably
hope for stable higher range of prices
after this floating supply has been absorbed by
Investors. The United States old tours coupons
and the threes advanced u. and the old fours
registered and the fives II in the bid price
The total sales of stocks to-day amounted
to 596 shares, including: American Malt
ing POO; American Spirits 2000; American Steel
and Wire, $500; American S. f Co RI 7O0.
American r. CO. BOO; Atchison preferred II ,
200: Brooklyn Transit 20. 500 Burlington rights
200: Burlington. 24OO Consolidated Gas. 10 200:
Consolidated Tobacco 1900; Federal Steel 5q00.
do preferred, 5000 Mexican Central 500: Met
ropolitan. 1900; Northern Pacific 1900: Peopless
Gas OF Chicago. 1890; Reading first preferred
R,400; St Paul, 5000; Union Pacific 400
CLOSING STOCKS