The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-03-04

bears, whose demands for stocks TO
cover short contracts worked some vio-
! lent recoveries in the industrial and
speciality department of the market.
This influence was first evident in
Third Avenue, which bounded U, eight
points on the belief that financial as
sistance had been secured to rehabil-
| itate the property. The short account
| in Sugar again gave signs OF being
over extended, and after falling TO near
80, the quotation touched 103% in the
late dealings. A Gecline in the price of
raw sugars, thus widening the gap be-
tween the cost of raw and refined
sugars. was an influence. The move
ment in these stocks had a sympathetic
influence upon other industrials, and
there were great recoveries from the
opening weakness during the first hour.
period of dizziness and heaviness
succeeded while waiting for the bank
statement, and upon the publication of
that statement the market displayed
increasing animation and strength I'M
til the close, which was generally at
the top, and net gains in nearly all
stocks. Part of the buying was on the
principle that when bad news is out
rally is due. But the return was,
in fact, not so weak as had been feared.
Receipts of cash from the interior were
larger than anticipated, and the loss
in cash correspOndingly less. Another
loan expansion SO formidable as 9.621,-
600 was apparently viewed with COM
piacency, as the feeling has grown UP
in Wall street that much of the recent
loan expansion Will find quick return
to the money market So long as call
loans are made at 2Q21z per cent, there
viii be no acute alarm over the money
market prospects.
The stock market this week has been
torn by the conflicting influences of
violent contrary NOV sInents in differ
ent groups Of stocks, affected by indi-
vidual causes. There have been sharp
losses in the department of industrial6
and so-called specialties, including the
stocks of corporations operating the
New York public utilities. and there
have been notable gains in some rail-
road stocks, based on large earnings
reported,
The strength of railroads has at
times checked the fall in the indus
trials. and at other times the sudden
breaks in the industrials have unsettled
the whole market, and have been drag
on the movement in the railroads
Neither the gains on the one hand, nor
the losses on the other have been fully
maintained, and it is impossible to de-
termine the dominant tendency Of the
market, nor to determine how far the
apathy of the public demand for stocks
would be changed if the I arket were
relieved from the special disturbing in
fuences
The principal disturbing element has
been Third Avenue, which has sold over
thirty points lowerthan last Saturdays
closing price, and very nearly 200 points
lower than the high price OF the CORE
spending period OF last year, Such a
development in a stock long, closely held
and regarded as a safe invest ment Sc
curity has an inevitable effect on other
securities, however peculiar to itself
may be the circumstances which af
fected it. There were old rivalrie6 and
animOsities between the bold and pow
erful speculative interests, which the
misfortuneS on the stock afforded an
opportunity to crafty.
The long-standing conflict for CEN
traliZed. control of the New York pub
lie utilities was also involved, not only
in the movements Of that group, but
through sympathetic connections Of
other stocks. There has been furious
speculation in the certificates Of the
Sugar Refining company, based on am
biguoUS utterances Of the president of
the company that he should oppose
company earned them. This riddle will
not be solved for the public until after
the directors have acted on the dividend
next Wednesday, when spectators viii
be able to foot up their gains or their
losses.
The iron and steel stocks have also
been a disturbing influence without
any very clear explanation being given
for the large selling of them. One cur
rent, but not very. plausible explana-
ton, is that the earnings of these COM
panies are proving so large that eff
fective competition is invited and is
being organized. The reports Of au-
thorities in the trade showing large
consumers still halting over the max
ing of future contracts for material,
obviously with the expectation that
prices will go lower, Seeems a more IA
tiOnal explanation.
These disturbing influences have
partly offset. but have not wholly pre-
vented the effect Of the extraordinary
earnings reported by many OF the great
railroads for January. It has been
feared that the prices of material
would so far extend the cost of opera
ton and repairs on the railroads, their
net earnings would fail 20 be benefited
by the large increased gross earnings.
The statements published during the
week effectually refute this suppose
ton.
Even where the actual cost of OPP
Grating has greatly increased, the ratio
OF operating expenses to gross is so
far reduced as to leave handsome in
creases in net earnings. St Paul is an
exception, owing, it is explained, TO ex-
traOrdinary improvements charged to
expenses. Taking the most striking
examples. the great Pennsylvania sys-
TEN Of lines. directly operated east and
west of Pittsburg, gained in January
70 per cent in net earnings over last
year; AtchisOn, So per cent; Reading |
50 per cent; Erie. Al per cent; Wabash, |
AZ. and Lehigh Valley 143 per cent.
The balance of earnings, after de- !
Quoting the months proportion of fixed !
charges, increases over tenfold by the |
Cleveland. Cincinnati Chicago & St. |
Louis railroad, and 122 per cent by the |
Burlington.
Wall street skspticism over the ex-
PLANTATION that the recent enormous |
loan expansions by New York banks |
has been taken out to meet commercial |
demands, has beeN justified by the |
new developments Of the week Spe-
cial transactions have become known |
which account for large loans, notably |
the anticipatory payment by the Cen /
trail Pacific Of a $4,000, 600 note to the \
government, the taking up by New /
York capitalists of a loan to a Rus /
sian railroad. guaranteed by the Rus /
sian government, said to amount to |
sos, O00, 900, and the proceeds of which /
are by the terms Of the loan to be ex- |
pended in this country. and large Dor /
rowings by interior banks for the pur- /
chase of government bonds, with a |
view Of taking additional note circula-
ton under the provisions of the new |
refunding law when it is enacted.
It does not escape notice that even |
for February, the national bank note
81. Az. Ass. The British successes in