The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-06
FINANCIAL AND. COMMERCIAL.
THURSDAY, March s


An extraordinary collection Of reports
Of increased gross earnings Of several rail
road companies for the last week Of Feb
ruary. which. under ordinary circumstance
would have stimulated prices In the genera
market. did not Offset in any degree tn
influence Of many other factors in to-day
trading upon the Stock Exchange whose
tendency was very clearly TO unsettle values
Indeed. the temper Of the market may b'
accurately judged by the fact that abou
the only comment heard upon this evil
dence OF the large business being trans
acted by the railroads of the country wa
that 1t was reports Of net earnings rathel
than Of gross earnings that people nov
care for. The weekly return OF the banh
OF England showed diminished resources
and the banks minimum rate OF discount
was not lowered Representatives OF Eng
lish, Dutch and German houses were heavy
sellers Of stock in our market to-day from
start to finish. The banks have lost over
IS 900 900 thus far in the current week To
the Sub-Treasury, and all indications are
that this loss will be increased by private
shipments OF cash 10 the interior. Call
money rose to-day TO Q per cent, time
money was quotably frmer for all periods
and commercial paper continues to be
negotiated at terms which favor buyers
Rumors were spread broadcast that
a mercantile house in the city was
embarrassed and the flrfnness OF the
rates for commercial paper were said
to be largely due TO this cause. In the
Philadelphia market the stocks Of an in
dustrial concern which is practically under
going reorganization fell heavily in price,
and current belief Is that the financial losses
Of stockholders in the company will be
larger than was at one time supposed. The
extended speculation in cotton and the
nervous fluctuations in the price OF the
staple have undoubtedly become source
of stock market uneasiness, while an un-
pleasant labor situation threatens in the
West and in various other parts OF the
country. On the outside market to-day
the new bonds Of the United States Steel
Corporation were quoted at recession In
price of points az compared with the sales
made at the same time yesterday, The
fact, Of course, bears no relation to the
affairs OF the Steel Corporation and was,
as were the low prices bid for the bonds OF
our city at to-day's public sale. an illustra-
ton, simply, Of the congested state OF the
market for all new bond issues. An attempt
has been made to reflect discredit upon the
new Steel bonds by reason OF the clause
inserted In the bonds which prevents fore
closure of the mort gage lien until after two
years. continued 6c' in the payment of
interest, the impres- i sought TO be con-
veyed being that this provision was OF
novel character. A clause Of this nature
10, Of course. not at all un common in cor
poration mortgages. and IL serves an obvi-
ously useful and proper purpose. Foreign
exchange was again weaker to-day, point
ing. as does the general decline in prices
that has occurred throughout the week,
to a reduction Of loans in next weeks bank
statement. But neither this fact nor the
Of the Manhattan Elevated Rail
road stock TO a full per cent. basis, an
extra dividend Of per cent on the stock
also being declared, served to stay in the
slightest the food Of liquidating sales in
to-days market.
The most effective influence in promot-
ing this liquidation was the rumor that the
large minority stockholding interest in
the Southern Pacific Railroad Company
was about to ask for an injunction re-
the majority interest, that is
pany. from voting the majority shares held
by the company at the forthcoming South
ern Pacific annual meeting on April 0.
No official confirmation Of this story was
although representatives OF
the Union Pacific company admitted
that they regarded the action alluded to
as a possible and perhaps a probable con-
tingency, while the Street was disposed
to find confederation Of the story in the
heavy and hitherto mysterious pressure
upon both the Union Pacific and Southern
Pacific shares for a week past The dis
Of the concentrated minority
Of Southern Pacific with the policy
which the controlling interest In the road
has adopted regarding the payment of
dividends has long been an oper secret
in Wall Street. The stand taken by the
Southern Pacific management has been
and is that the payment Of dividends upon
Southern Pacific stock was unwise while
the requirements Of the property were
so lnrge for the expenditure Of money
upon IL for improvements. The plans
for these improvements involve. as is we'll
known. an outlay OF over $50 900 600. II
IL asserted by the minority stockholders
that many Of thss, proposed improve
ments are OF an extravagant and needless
nature. and that at any rate IL Is fair that
the present stockholders Of the road should
derive some benefit from the enormous
gross earnings Of the property. The ma
jority interest In Southern Pacific declares
that the legal questions nov supposedly
raised by the minority. relating 10 the
various prohibitions against the owner
ship Of one composing railroad by another.
do not trouble them In the least. These
questions need not he discussed here The
great importance Of the matter In q Wall
Street sense IL. Of cour-e. thai THE open
breach bet~een the parties referred to.
10 u has. indeed. occurred. means that the
largest and moe, powerful single operator
in the strs~t can M longer bs ranked upon