The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-17
FINANCIAL AND COMMERCIAL.
FRIDAY. Oct, 10.

FRIDAY. Oct. 10.
The sure and steady accumulation of the
standard railway shares by the country's
creates, capitalists and by investors gener-
ally that has been going on during the long
depression in prices, produced it's natural
effect to-day In a stock market that has
for two weeks past given unmistakable
evidences Of having been sold out and over
sold. The resilient forces of the market
turned, indeed, with almost savage fury
on those who have 80 long Knocked at them;
and while il would be- hardly fair to say
that the event known in Wall Street as
"hear panic" occurred spectators Tor
the fall were at least thrown into complete
decentralization The prices OF the leading
railway stocks advanced on tie average
nearly So share. The day on the Stock
Exchange was begun by heavy purchases
for foreign account, prices in London being
well above our parity, consols ranging
higher and an increase noted upon all the
European bourses in the more cheerful
feeling that has recently prevailed there
Very little influence was sxerted here by
newspaper stories telling of the financial
embarrassment of certain London stock
stood that the stories related to troubles
Of the past rather than Of the present. The
volume Of London buying here was estl-
mated at about 10000 shares. After these
purchases were over, the bear element again
started it's attack upon the market. EN-
deavoring to force liquidation in the in
dustr rial issues and to unsette the railroad
list by sales of Baltimore and Ohio. Nor
folk and Western, and the Pennsylvania
group Of stocks generally. The argument
adduced for this was that the expected
lower ebb Of manufacturing business would
bring about reduced demands for bitImin-
Gus coal. Furnishing this commodity Is.
Of course, one Of the chief businesses OF
the railroads named But the spectators
who engaged in the forsy found that they
made little impression upon prices. and.
moreover, began to be disturbed by the
steady bidding of brokers usually repre-
senting very important interests for nearly
all the prominent railway stocks, but es-
pecially the Atchison and Alton issues
They therefore began retreat, which
they endeavored to make a mastery one,
but which soon turned into a general rout
Of all the sellers OF short stock.
General opinion regarding the course
of prices to-day was that it was largely
caused by the retirement OF short contracts,
and it can hardly be expected that such
upward leaps and bounds OF quotations
as were to-day witnessed will be continued
in the near future without pause. The,
short interest in the market is, however,
stupendous, and experience has shown
that when an interest of this sort takes
fright, as it did to-day. it is not easy to
restrain the markets pace. Underlying
the movement, however. is its broad and
general cause as previously stated, namely,
the purchases of stock by great financiers
in pursuance Of certain set and deliberate
purposes. When the present situation
clears it will be found that the concentra-
ton of railway management in the country
has assumed a phase Of much greater in
tensity and strictness than ever before
known and that strong people instead of
weak people are in control Of many i'm
portant properties 1t is wholly appa rent,
too. that much Of the ostensble liquidation
in the industrial issues Of late has been
simply the efforts Of bearsh spectators
to make these shares sell as low as possible
Toward CHS end all the arts known to sue
cessful manipulation on the Stock Exchange
have been brought into play, There is.
however. a limit to such operations, and
very many good judges of the market
think that that limit has been reached
The most important item Of general news
to-day was the extraordinary statement Of
earnings for August submitted by the
Missouri Pacific Railway Company Gross
earnings for the month OF 5000, 900, the
largest months earnings in the history of
the company, we're shown. This repre-
sents an increase OF $7O6 900 over the earn
ings for the corresponding month last
year; and of it 81, AIS 900 was saved in net,
an increase of $295 900 over the August net
in 1902. For the first eight months Of the
year the Missouri Pacifc's net earnings
have increased 81 ,612 Sal. Exhibits hardly
less favorable will shortly be made by the
AT Gibson and many other of the great
Western railway systems. Sufficient reason
would be found In this alone, quite apart
from the development Of plans OF railway
alliance and combination, for purchases
of the railway shares. Indications are that
the local banks have gained about 81 500 900
in cash this week, 80 that it is expected that
tomorrow bank statement will have
nothing in it to dismay. Money was freely
offered to-day on call on the Stock Exchange
at IA per cent, and loans were made by
houses in good credit running into January
at the rate of 4 per cent. per annum Time
money can readily be obtained now on
proper collateral at Al per cent. The
Inevitable result of all this is, of course
4 higher bond market. The prices of
nearly all the high grade bond issues have
advanced materially during the month
Foreign exchange was considerably weaker
to-day on offerings OF security bills, bills
that is, drawn against purchases Of
securities in this market by for
eigners.