The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-18
FINANCIAL AND COMMERCIAL.
MONDAY. Nov. II

ulSlfltl II lIdN lOT tonShlti dOlt tlIilts
al least The stock market ought TO do better.
The basis of the feeling is the conviction
that while much Of the recent liquidation
was legtimately caused by the Withdrawal
of credit from spectators by money lending
institutions, a very large share of il was
due to frightened selling caused by rumors
Of impending disasters. Some Of these
rumors had, perhaps, some small founda-
ton; most of them were baseless and are
now known to be- such, In addition to this
a short interest in the market has been
built up Of very large proportions. much
of this short selling has been of a weak
and miscellaneous sort by the room-trading
element. ard many who have excellent
sources of information assert that during
the scare commission houses and brokers
generally made short sales against their
customers stocks to an extent seldom wit
messed before in the history Of the Street.
The practice is not usually one that is talked
of very much II is defended az being the
only means, sometimes, 10y which those
who are carrying stocks for other people
can protect themselves against sudden
declines in the market. Such course was
excusable, if il ever was. on Thursday and
Friday last Naturally, the short interest
created Ill all THESE WAYS II not a SlayUR
one. II is more than probable that a good
deal of the buying to-day represented
covering purchases of this order and that
good deal more buying of like nature will
he necessary.
The market was hard and firm. though
comparatively duh, during the day The
strongest security on the list was Man
haitian. which advanced 81. points under
very large buying orders executed by
brokers who usually act for interests con-
nected with the management Of the com
panv Over ISL 600 shares OF stocks were
dealt in No definite explanation Of the
advance was made, but the Street was
full - the old rumors that the New York
Central now either actually controls the
Manhattan Elevated Railway system or
Is in possession Of very large block Of its
stock. that new issue of Manhattan stock
was approaching and that connections
with the Pennsylvania Railroads tunnel
would he made. The large increase during
the last year In the earnings of the Man
haitian system and the certainty that these
earnings will further increase owing to
the Use of electrical power are matters
of common knowledge. Another very
strong stock was Reading common. whose
course seemed to evince manipulation
for the purpose Of short covering. II Is
said that this stock was the one selected
for short sale by large market operator
In the recent commotion for the purpose,
among other things, of protecting his long
holdings, although this operator is known
to sincerely believe that Reading common
will eventually sell al par All the coal
stocks we're favorably affected by the pub
LEGATION of the annual report of the Balti-
more and Ohio road for the last year. show
ing an increase in the total earnings Of
81, s3l 800 and an increase in surplus Of
s., col OIL. The earnings indicate about
o per cent earned upon Baltimore and
Ohio common stock. Sugar and Amalga-
mated Copper advanced upon the belief
that the bear campaign in these stocks,
directed against a Boston Spectator, had
been unsuccessful. For this belief there
IL substantial foundation. The campaign
may turn out 10 be case Of hunters
hunted. The former stock was helped, Of
course. by the advance in the prices Of
raw sugar. Another stock which acted as
though the decline in il was over for the
present was Southern Pacific. Whatever
the standing of the pool in this security
may be, some one is a large buyer Of it at
present figures. The Norfolk and Western
Railroad raised its dividend rate to per
cent. the increase TO per cent. instead
of TO per cent being what all well-nformed
persons have long expected, Sterling ex-
change was fairly strong throughout the
day and London exchange in Paris weakened
slightly, so that the possibility Of gold
exports was brought near. Nevertheless.
the leading foreign exchange houses say
that they do not think that gold will be
shipped at present. A great deal Of the
recent frmness OF the foreign exchange
market has been due to the remittance of
money abroad on account of the lew ship
ping combination. IL is stated that re-
init ances Of this character are now over.
Prominent banking interests. who have
been directing attention during the last
six weeks to the expansion of credits, &c,
are now talking about the enormous
quantity Of traffic pressing upon the railways
and the increased railway earnings which
must result therefrom. These eminent men
declare that this congestion Of railway
business warrants an advance in freight
rates upon certain classes Of traffic. They
say. moreover. that the liquidation that
has occurred in the stock market has averted
anyt hing like serious trouble in the financial
situation,