New-York tribune., 1901-06-09
financial.
The Financial World.


as much recovery there should have been.
when the hasty inquiries which the unexpected
figures started: brought out explanations which
showed that the 21 million increase in loans and
the nearly 10 million decrease in the reserve. was
due 10 temporary shifting of accounts. The
fact is. the market is not exactly robust as
it was before it got that knock down in the
Northern Pacific corner. 1t takes fright easily
and recovers slowly. So when the statement
threaded it's way along the tape. there was a
rush of the traders to get out of stocks which
dropped quotations all along the line. Had the
rank and file been as confident they
recently. all the statement would have done
would have been to dull the trading while ex-
plantations were sought.
Ii is quite clear that the Street had forgotten
about the subscriptions the issue Of
Pennsylvania stock, otherwise statement such
as appeared would have been certainly looked
for. 1t was in March that the Pennsylvania
Company authorized issue of new stock
equal to one third of the amount then out
standing-151 millions. Subscriptions were to
be made between the 1st ard the 10th of this
month and the money is now being paid in.
Here it will be seen is a trifing sum of fifty 10
of this the financing of the new tobacco CON-
pany has called for the gathering together OF
twenty to thirty millions more. The two opera
tions together make shifting around Of some
eighty millions of dollars-a sum quite enough
to disturb any bank statement. Furthermore, It
is asserted by those who most intimately
acquainted with these operations. that they will
probably make next weeks bank statement
look worse than this After that, things
will straighten themselves out.
1t should be noted that however alarming the
statement appeared in figures, there was
disturbance of the money market Rates all
the week averaged about 2 per cent. Probably
this fact tended intensity the surprise the
statement caused because usually some stiffen-
ing of rates and scratching for money precedes
the appearance of bank statement showing
heavy decrease in the reserve In this case
there was none; but perhaps there may be the
coming week.
If there is the stock market will very likely
be irregular. 1t will not be so easy to pick out
the particular stocks which going up. But
the business which makes the prices is all right
There is no trouble there. The earnings of the
roads continue: on an unprecedented scale; and
the bank clearings. which indicate the activity
OF general trade beat all records. They do this
even when the totals for this city, which Of
course are swelled by stock speculation. are
eliminated from the tables. We thought the
showings of the roads for April were phenom-
enaIIy large: the railroad men say those for May
will beat them. In the case of the Atchison, 1t
Is claimed that the May earnings will put those
of April quite in the shade. and those were far
and away the largest the road ever had
or instance the Southern Pacific Some
months ago the managers claimed that the road
would earn this fiscal year. fully 40 millions.
The purchase OF the stock was advised on this
claim. It looks now as if the years earnings
would total in excess of ~ millions-indeed if
the months Of May and June are as large
May. the aggregate Will he over IS millions
In connection with these roads. the oil dis
coveries in Texas are of great Importance OF
course the oil industry itself is a great thing,
but as great a thing for the Southern Pacific is
the use Of oil for fuel in place of coal The fuel
cost 10 every railroad system in the county
varies with the location of the system. The
Pennsylvania has the cheapest; the Southern
Pacific the highest. Coal is an expensive article
| on its lines. BY using oil fuel the cost can be
/ brought down that the annual fuel dill Will
! be Iessened by a couple OF millions. The Atcni-
| son can also save. though not nearly 70 the same
extent 1t can use the oil fuel proftahly on the
Pacific coast end of its system. The Texas
Pacific is another road which will derive great
benefit from the oil discoveries Precisely how
| much these roads can save in cost OF operation,
| and how much they will gain in freight. cannot
| OF course be figured at this time General
estimates only are possible; but the most con-
| servative estimates show very large accesslons
| 10 gross and net earnings. II may he added
also that the Mexican roads will derive substan-
| tial benefit from the use Of oil fuel.
Presumably. we shall not have great while
Ia wait now before the Missouri Pacific COM
biration will be in shape to announce to the
public; unless the Rockefeller-Ciou people think
II we'll to defer bringing the thing out TIL the
Fall The movements of Missouri Pacific IN the
market make il plain enough that the stock Is
held in block. and Texas Pacific also Ihe
Wabash end of the combination would appear 10
have been the subject OF negotiation between
the great railroad powers in connection WIN
the proposed extension into Pittsburs IL IS
intimated however that arrangement has
been arrived at with the Pennsylvania
There was considerable activity in the Read
inE and Erie issues in the early part Of the week
with improvement in prices. Both issues VIII
continue TO he popular trading stocks, as they
are low priced and have a promising future. Inc
condition of the anthracite trade encourages the
hope Of higher prices for them. The anthracite
production for May was 4.6T40t0 tons. as
against 3,j5I.OOO tons for the corresponding
month last year. While the common and second
preferred stocks are naturally most favored oy
the SPECTATORS the first preferred at going
prices commend themselves to the investor
Some quite extravagant predictions are occa-
sionally heard as to the price at which Reading
first Will sell.
Louisville & Nashville has been having little
bun movement all to itself, and il is hinted tnat