The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-03
FINANCIAL AND COMMERCIAL.

Operators for the fall In security prices
who few days ago were loud and con-
fident in their declarations that buyers
had practically departed from the stock
market, that public sentiment regarding
security values had become pessimistic
beyond hope Of recovery, and that while
slight rallies In prices might be expected
from time 10 time they would only represent
temporary buying In of short contracts.
found reason to-day to change their opin-
ions. These views were voiced with par
tituiar vigor yesterday and the day before,
when 1t was declared that the market, having
been sustained by purchases OF the char
acter described. was left In a thoroughly
unprotected state and would succumb
easily, as on many occasions in the past. to
fresh professional attacks. Stories in the
morning papers to-day told Of the breaking
OIL of the conference bet ween the Baltimore
and Ohio Railroad officials and their en-
ployees. Leading to possibilities Of a strike
upon the Baltimore and Ohio system, and
Of the extension of time asked from their
creditors by prominent banker and rail-
road man in Baltimore and a large brokerage
firm in the same city. The matter first
named proved upon analysis to be OF small
moment. The issue raised between the
Baltimore and Ohio managers and their men
has dwindled down to the question Of the
reinstatement Of two discharged work
men, and it can hardly be supposed that a
way Of amicably adjusting such trivial
difficulty will not he found. The Baltimore
troubles were more serious. They brought
into prominence the recent tangle in the
affairs Of syndicate formed to underwrite
an issue of Seaboard Railway securities,
and renewed the fear that stock market
echoes of the affair might be unpleasantly
loud. There is no question as to what
would be the upshot Of such an announce
ment had II been made in the semi-hysterical
state Of feeling that existed in Wall Street
last Monday; and the rank and file of bearish
operators confidently expected that the
news would break the market to-day.
But the market did not break; on the con-
trary, it was the strongest market seen for
six weeks. Assurances were promptly
given by leading banking interests that
institutions here were not lenders Of money
to the people in Baltimore who were in
trouble, and that the affair was merely a
restatement of difficulties which really
eliminated, so far as an effect upon security
prices was concerned, in the early days of
August. Those who sold stocks at the
opening Of business on the Stock Exchange
to-day impressed by these supposed ad verse
factors, found that news Of this kind was
ne longer the powerful argument against
the values that it once was. As indicating
change in the general character of the
market from that which has been exhibited
throughout the summer the affair has no
small significance.
One force that at the outset immed lately
counterbalanced speculative sales for the
decline was the rise in consols in London,
the fall in money rates there and generally
improved condition in the London market,
ali OF this resulting In orders cabled here,
which were quickly executed for the pur-
chase Of about 30,O 900 shares of stock. Esti-
mates showing that the banks have gained
nearly 81 500 900 on their cash transactions
with the Sub-Treasury and the interior OF
the country through the week, and that
good bank statement tomorrow, therefore,
is probable, naturally produced a favorable
effect. Similarly gratifying was the Penn
sylvania's report Of an increase in net earn
ings for August Of nearly $500, 900, showing
that the recent tendency Of operating e1-
penses to increase at the expense Of net
earnings is largely abating. All these mat
tiers, however, were little thought of in COM
parison with two definite developments on
the floor of the Stock Exchange, namely,
the strength OF the United States Steel
and Erie issues. On large transactions
United States Steel common and pre-
ferred advanced steadily. while quotations
for the new sinking fund bonds of the cor
poration no longer fell under offerings OF
the issue as has previously been the case
The enormous buying Of the Erie stocks
amounting during the day to considerably
over 100, 900 shares-was obviously no mere
short covering and proceeded from some
financial interest OF the first magnitude
This is the first time that buying OF this
character has appeared In the market for
a long period. and there were all sorts of
rumors to account for IL. The general
opinion was that the reason would be found
eventually to lie in matters connected with
the entrance of Mr. Edward II. Hartman
into the Fries directorate. A feature OF
the day in Wall Street was large rise on
the curb market in the prices of the stocks
of the International Mercantile Marine
Company. The advance in call money
rates at the close OF the day was due to the
belated borrowing of one or two firms