New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-10
(lnanrlai.
The Financial World.

the week before and which would doubtless
have come on time had not a scare of the short
interest-whch was quite considerable-been
started by the news from South Africa While
this short interest was covering, there a
quick and irregular rise in the leading specu-
latives. the balance of the list remaining quiet.
When the shorts filed. buyers became
scarce again. and so IL has happened that during
the past week. the market has been sinking
back. and prices have lost what they gained
the week before with something added
1t is not good time to buy stocks when the
price of iron is falling. This Is an axiom Of
speculation. The price Of iron has been further
cut and of steel also both here and abroad
which in itself would be enough to unsettle the
stock market. Besides this. We have had the
crop scare which is usual at this season of the
year; and there has been the trouble I'm China
with It's ever alarming contingency OF European
complications. On the other hand. the cheap
ness of money exerts it's usual sustaining power
Because of the large contingent of New York
operators now in London and Paris there Is
probably more active trading in Americans over
there than would otherwise be the case so that
the two markets seem to respond with unusual
constituencies TO each others movements. When
our market closed weak and low on Friday a
we'll known operator he noted the closing
quotations. remarked curiously: Il wonder how
London will like those prices tomorrow" Lon
don apparently did not like them at all. for It
came yesterday II 10 IL below them.
Although the troubles in China would nat
uraly disturb the continental markets their
influence would be temporary only for Europe
has got used 20 having cold fits over the Eastern
question; but the troubled condition OF the Ber-
lin market is not temporary. for It arises from
the same causes which have sent down the
prices of industrials here. MIR John w Gates
may certainly claim to have fired a shot heard
round the world; since from the day he pro-
claimed that the iron and steel trades were at
flood tide and must recede both our own and
the European stock markets have been shaken
by the falling Of the iron markets There was
| almost a panic in Berlin the other day. and the
! crowd Of Industrial stocks that exchange
were mercilessly slaughtered The alarm spread
that Germany was TO be flooded with cheap
iron from this side. where producers would ex-
port their surplus stocks at a loss rather than
carry them. The alarm was unfounded. so our
iron men say. a market which goes to pieces
unfounded alarm is pretty rotten Such
condition Of things in Berlin tends directly to
depress the London market and-to a less ex-
tent-our own.
The crop which. as before said. is GUS
tomary at this time Of year. 10 have some
basis Of fact. since the grain markets have been
advancing also helped by reports from Europe
of probable shortage in the wheat crop there.
AS far as can be made out from the somewhat
conflicting reports, there is bumper crop OF
winter wheat In Nebraska and Kansas and
south OF those States In the northerly portion
! OF the winter wheat belt. the outlook is for a
| short crop. the damage being irregularIy dis
! trbuted. Is usually the case. The most
alarmist reports. however. come about damage
| to the spring wheat; and here is where scep-
| ticsm is permissible. over and over again
the spring wheat crop has been destroyed at
this season OF the year: only have it come
up smiling. as IL We're. at harvest time At the
moment, there is a tendency 10 believe the
worst; for the temper OF the Street is bearish.
and the dullness OF the market intensified the
feeling.
This temper was curiOusly shown in the way
the increase OF the Atchison dividend was re-
ceived. II was regarded without enthusiasm.
People seemed to turn up their noses at 1t. and
, sniff critically 4 year ago il declared with
| like show Of earnings. 1t would have been hailed
with delight, and been good for So or 90 for the
stock Not so now The boom is out OF things.
The stock acted heavy only a point above
| 20. So sharply have the directors been criti-
! cised for their action that they have actually
| felt themselves under the necessity OF issuing
explanatory. not to say apoIosetic statements.
| They say the money has been earned and the
stockholders have a right to IT, The critics
reply that bonds have been issued for improve
ments during the year and that the money
should have been expended that way The real
feeling Is that the traffic of the road is food.
that some decline must come, and that IL Is not
wise TO raise the dividend food tide 20
figure which may not be maintained when traf-
hc and earnings decline. Perhaps this is true:
but the present price of the stock is not ex-
travagant II only per cent were paid; and IL
NAV be said without fear OF contradiction. that
with the showing made by the company OF
heavy surplus over the 3 per cent dividend de-
clared the stock would sell at present figures.
If there had been raising OF the rate above
4 per cent.
Because OF the unfavorable temper OF the
public as Indicated. there is considerable curl
osity as to what the Northern Pacific directors
will do about their dividend the coming week
Such information as have been able to OBJ
tain lately Is against any increase being made:
but this information only takes the form OF
misses Although the surnises come from usu-
ally we'll informed quarters they not offered
as positive Northern Pacific has gone off dur
ing the week being quoted yesterday at 81.
whereas il lately quite strong at 60 or
above. This might be interpreted Indication
that the expected raise from TO per cent Will
not be made were II not that the general condi-
ton of the market could Just easily account
for the decline Even II the dividend were
raised it is more than doubtful whether the
public would be induced to buy any extent
Its present temper is not OF confidence but sus-
piclon: and the chances are that the raising Of
the dividend would be taken as proof that the
any exhibit of earnings remove this feeling of