The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-28
FINANCIAL AND COMMERCIAL.
WIpNEsDAY. Nay n.

| obtained after the coe0Aton Oh hquuSuoh
in the stock market on Monday continued
to-day despite the fact chat tho genera
| tone Of the market was one OF hesitancy
and that complete assurance as to the hnan'
cial position OF various pools and individ'
uals was not forthcoming. The fact can
be stated in the most emphatic manner
however, that the strongest and best-in'
| formed interests in the financial community
believe that enforced liquidation in the
security market Is over and that the turn
OF the market has arrived. Important
| commission houses, whose business IL
largely confined to the transactions OF
wealthy INVESTOR and speculators, and who
| have ever since January been advising
| their customers to sell stocks. are now
Just as urgently advising purchases OF the
| standard shares. They aver that the
dangers that have recently acutely threat
ened the market have passed away and
that further assaults Of bear operators
II they are made. will only serve the purpose
of allowing accumulation Of stocks by
those who know the bargains that present
themselves. Evidence in support OF this
view was furnished to-day by the heavy
purchases OF stocks Ike st. Paul by brokers
representing the largest capitalists In the
country. The rumors that the dividend
on st. Paul common may be reduced and
that a large block Of new st. Paul stock
has been sold by the management Of the
company did not need the ofhcial oon-
tradiction, which was made Yesterday, to
convince intelligent people Of their I'm
truth. The denial, however under the
present circumstances was not bad
thing.
Tho course Of the market to-day re-
fected the conflicting influences Of the
buying OF the nature above described,
Of stocks like St. Paul. Missouri Pacific,
Pennsylvania, Mexican National Railway
preferred, and United States Steel. and the
selling Of tho lower grade issues like Rock
Island and United States Leather common.
1t il doubtful II the weakness of the Rock
Island shares was due to any other cause
than short selling based upon the Idea,
which has now taken very firm hold in
Wall Street. that at present prices the
property Of the Rock Island Company Ia
accorded higher market value than that
OF the Northwestern or St. Paul railways.
A parity between the three issues must,
1t is argued, occur sooner or later. There
is no great fault to be found with this reason
ing. but it is worth while pointing out that
it is not only possible, but very probable
that the parity may be brought about
as much by rise in tho price Of the St.
Paul and Northwest shares az by fall in
the price Of those Of tho Rock Island Com
pany. The leather stocks were sold be-
cause Of story that tho company proposed
to raise money for tho purpose OF paying
aE tha 1orD NJ hoN ivfH 1n
that have accrued upon the company's
preferred stock either by an issue Of bonds
or OF considerable quantity OF new pre-
ferred stock. These rlrnors were unveri-
fled up to the close Of business and they
have already been circulated in Wall Street
a score Of times in the last two years. The
sale OF new securities OF the Leather COM
pany for this purpose might naturally
affect the price OF the outstanding common
shares OF the corporation. but exactly how
the preferred stock could be injured by
the payment Of 80 per cent. in back divi-
dcnds upon them is not at all clear.
The very great strength recently OF the
preferred stock Of the National Railroad OF
Mexico was explained by the announce
ment made after the close Of business
to-day by Speyer 4 Co.. as representing
the Mexican National voting trust Of the
agreement made by them with the Mexican
Government concerning the affairs OF the
company. The common stock OF the
National Railroad OF Mexico Is to be divided
into two classes OF stock, two thirds OF which
il to he known as second preferred stock
and the remaining one-third as deferred
stock and the Mexican Government has
agreed to purchase very large amount OF
the several classes Of the capital stock Of
the company. including a. part Of the shares
purchased the total issue Of the newly
created deferred shares. The Government
also transfers to the railroad company its
holdings OF the debenture stock OF tho
Interoceanic Railway OF Mexico. by which
acquisition the railroad company secures
what 1t has 10 long wanted, namely, an
outlet to the Gulf Of Mexico. The Mexican
Government also agrees that for twenty
a concession Of such nature as to prevent
the construction Of any line in the most
important part of Mexico which might
compete with the Mexican National Rail
road for through traffic with the United
States. There are good reasons for believ-
ing, moreover although this fact was not
at ated in the announcement made to- day,
that the Mexican Government will, as the
possessor Of large property interest in the
railroad company, allow the company to
collect its freight traffic on the same basis
as that upon which the Mexican Govern
lnent now collects customs duties, namely.
upon a basis very nearly approximating
the gold par. It is, therefore, confidently
expected that at no very distant date divi-
dends will be paid upon what will be known
as the first preferred stock Of the railway
company, that is to say. upon the preferred
stock as at present constituted. The
present earnings Of the company, indeed.
are at rate which would allow this pay
ment, anyway.
New Fork stsck Exchange Sales. May ~.
UNITED STATES AND srArl BONDS I'm u ,ooos.
rem SET %........'....... ........,.,. 81
CLOSING PRIcEs or uNrrEp STATES BONDS.
Cs2s. usnr
1850 &C.. look 1904 ls3s....l3oh l3e