The Washington times., 1902-12-14
Other Conditions to Accout
for Reaction From Sharp
RISE OF Friday.
Syndicate Demand on Money
Market Causes Apprehcn-
sion of Similar Calls.

NEW YORK. Dec. 13.-Prices reacted ,
today from their sharp rise OF yestcr- 1
day Many stocks had rallied three or
four points in as many hours. and profit (
taking by the fortunate and courageous
buyers, who had made purchases when
the depression was greatest. was to be
expected.
The knowledge yesterday afternoon
that an unexpected call had been sent
out FOR $S.0OO.OO0 from the syndicate
having IN charge the New York Central
Railroad bond refunding scheme, because
Of the unwillingness expressed by many
OF the old bondhoIders to take the new
3l3 per cent bonds in exchange for their
former holdings. was followed by the
fear that possibly another call for funds
from the syndicate might be necessary.
and that. m general, The drain of So
called syndicate requirements upon the
money market before the end OF the year
was not yet over.
The Bank Statement.
The bank statement. when Il appeared,
was rather colorless. The cash held by
the banks decreased S3.094. zoo. or almost
exactly the amount expected. Loans de-
creased only $2.065.50O and the total
loans OF hanks remain over SO 600 900 in
excess OF net deposits
While this condition OF affairs exists
the financial situation at this center can
not be said TO be other than one OF
strain. At the same time the surplus
reserves OF the associated institutions
are $S.3S6 900 above the legal minimum.
and are considerably more than the re-
serves held at this date in previous
years.
The condition Of the hanks is un-
doubtedIy better than shown by today's
statement for. under the average sys-
tenn Of making up the statement. the
heavy liquidation in the stock market
on Thursday and Friday was not fully
shown.
Weekly Reviews.
The feature Of the weekly reviews Of
the commercial agencies published today
is their eloquent testimony as to the
stimulus OF retail business throughout
the country by the colder weather. Be
fore the present week the seasonabIe
distribution OF merchandise had Jagged
decidedly
Two very unpleasant incidents Of the
last few days have been. however, the de-
velopments concerning the Consolidated
Lake Superior AID the American Grass
Twine Company. The directors OF both
Of these concerns having declared their
usual quarterly dividends. suddenly re-
scinded their action. and in the case
OF the former company passed the divi-
dend entirely.
The American Grass Twine officials
concluded 10 reduce their dividend from
IA per cent TO one-quarter OF / per
cent.
The Consolidated Lake Superior stock
is dealt in only in Philadelphia 1t is
now admitted that the company is in
need Of money. and would have TO bor-
row the funds for It's dividend payment IL
the original purpose Of making the pay
ment had been carried out.
An Unfortunate Revelation.
IL is not supposabIe for an instant that
the eminent directors in both Of these
companies would have either counte-
nanced the payment Of unearned divi-
deuds upon the shares OF would know
ingly have taken any dividend action
that needed 10 be rescinded afterward
The inference is unavoidable therefore
that the dfrncforc ua~o NOT nc coovg -
zaut OF the affairs and corporate acts OF
The companies for which they stood
sponsors as due sense Of their respon-
Sibility 10 the public made imperative
This IS a time when the confidence of
the public In financial concerns needs 20
b. strengthened rather than weakened
The least that can be said about such
revelations as these IS that they are
most unfortunate.
There was nothing noteworthy I'm the
trading In today's market II is recog-
nized. OF course. that the short interest
IN the market previous 10 wednesday
was rather light, and that fits brief ac-
cumUlation, therefore. was probably
pretty well dispersed again IN the clos
ing days Of the week
The best opinion at the close OF tho
market seemed to be that while 70 was
possible that the low prices for 1902 had
already been seen, the wisdom Of en-
deavoring TO force a further rally at the
immediate moment was doubtful
New York Stock Exchange, Dec. Is.
High Low Last CH'y.e