New-York tribune., 1903-05-26
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
Tbsra was another outbu-st Of liquidation in
resterdsy's market and as a consequence prices
sor r1any issues established new low record hs-
r,res for the year. Opening dealings, which were
ct reoesslons from Saturdays final hgures' were
followed by moderate activity for long account
hut with the renewal Of heavy selling In 81
Paul the whole list ran into q decline that soon
dsyeioped indications Of seTni-panic- There was
no news development responsible for The move
rne-t. selling apparently being induced by eN-
hsusted margins by uneasiness over the labor
.,-7ra+ion and bv the developments OF the last
<ev aavs that have shown serious lack Of har-
--,ory among important railway and financial
interests The cutting down Of the western
Union poles by the Pennsylvania company mas
been an important factor in adding to Wall
Streets current wave of pessimism. while the
failure OF the Pennsylvania company 10 finance
its new stock issue and its consequent appeal
20 powerful banking interests TO handle the
rroposition. following closely the practical
failure OF the United States Steel conversion
-,fsn have created a distinct change in specula-
,fon sentiment regarding the chances Of a bull
market this year. Nevertheless some Of the lead
ing nnanciers in the country talk in hopeful
manner OF the prospects for better prices before
the end Of the summer. BY the middle OF July
q fair estimate of the crops will be possible, and
81 conditions then warrant the expectation or
big corn and spring wheat yields bull market
should develop in August
London reversed fits altitude In the local mar
ket Yesterday and sold upward Of 10000 shares
o< various issues Cable dispatches reported dis
sppotntrr1ent abroad over the persistent weak
ness here: also a disposition 10 do nothing
further Oh the buying side until prices gave
some indication of end of liquidation St
PguIs weakness was accepted on the board as
q confirmation OF the rumors OF a dividend re-
f5uct,on: but in number Of commission houses
81 wax thought that the apparent anxiety OF
many holders Of ST. Paul TO get out Of the issue
reflected something worse than dividend re-
s5uctjon Erie Issues Were among the few strong
features Several large accounts were hQutdateo
in Rock Island and Reading, selling OF the lat
Ter being accompanied by reports that the stock
would not be placed a dividend basis for
several years. In the active list the heaviest
declines were made by Brooklyn Rapid Transit,
which lost net ia points St. Paul. 27s; Missouri
Pacific 2%: Rock Island. 2ss; Union Pacific
Ia: Canadian Pacific. 23s; New-York Central
and Pennsylvania were well bought and lost
only small fractions. The Steel shares were
under pressure. but did not suffer important
iosse. In a number Of issues severe declines
were made on small dealings, in American
Express which lost points; Anaconda, g;
Brooklyn Union Gas. II; Northwest, 3Ss; Con-
S0l1date0
Central preferred B; Minneapolis and 81. Louis,
4: ST Louis Southwestern preferred, 4. and
United States Realty preferred, "a. The de-
cline was accompanied by many rumors init
mating that ''big" in trouble and by
reports Of further cuts In iron and steel prices.
Many eo-called big men have been forced TO
reduce their holdings, especially men who were
prominent IN the stock Jobbing of the bull mar
ket lsst summer. The market closed little
above the lowest, but II was not thought that
liquidation had reached its limit
The impression that the directors OF the ST.
Paul company will reduce the next semi-annual
dividend rate the common stock from a 312
per cent basis TO 3 per cent Is encouraged in
several well informed quarters Of the Street. It
IS argued that a per cent rate cannot be main
tainec for any length Of time, despite the COM
peny's present heavy earning power, and that a
reduction to 8 per cent will be in line with St.
Paurs usual conservatism in the matter of divi-
dends. while II viii increase public confidence in
the companys securities. In some quarters II
ss thought that the increase in the dividend-rate
last year a departure from the conservative
methods that had always marked the policy Of
the directors. but the latter took the ground
that the stockholders entitled to share in
the company's prosperity and that the physical
condition Of the property would not be injured
thereby This was a common sense view of the
matter and If the directors find later that earn
fngs and other considerations do not warrant
the maintenance OF a Z per cent rate stock
holders viii know that a reduction in the rate is
wholly in the best interest Of the company ST
Paul stock has been heavily sold in the last ten
days and the reduction in the dividend theory
is the only explanation offered for the move
,nent. St Paul now returns as { per cent
issue little over Az per cent. Pennsylvania a
per cent stock. returns at present prices 4s<
per cent and New-York Central per cent
stock. yields barely per cent.
There selling Of the Could stocks
yesterday by people who are uneasy over the
position Of affairs affecting the Pennsylvania
and Gould properties. The destruction OF the
Western Unions property along the lines of the
Pennsylvania by order Of the Pennsylvania Rail
road Company is considered most unfortunate
development in investment circles as il is be
lieved 10 foreshadow aggressive retaliatory tao
tics by the Gould interests. II should be borne
IN mind. however. that George J. Gould is intent
on developing railway properties and that his
record IS a guarantee that nothing viii be done
on MS account which viii injure the investment
value OF the Gould securities. Missouri Pacific
and al the Gould properties are improving in
intrinsic value every day and good market
Judges believe that the various securities of
these properties VIII prove profitable purchases
To- peonle who csu by them af or under nres-