The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-25
FINANCIAL AND COMMERCIAL
"WEDNESDAY, June ~.

WEDNESDAY,, June ~.
Business on the Stock Exchange to-day
was again merely nominal. There was not
even any feature" like that OF the up
bidding OF Colorado Fuel and Iron In the
last hour Of the market yesterday to lend
interest to the trading. Dealings for
foreign account we're less than 10, 900 shares,
and although little more optimism was
reported as ruling In London regarding
American securities, there was small evil
dence OF it in prices During the forenoon the
updertone Of the market reflected in some
degree a continuation OF the same strength
that governed it at the close Yesterday,
but the market succumbed to little wave
of selling in the afternoon, and then be-
came duller than ever. The grain mar
kets were considerably higher by reason
of unfavorable crop news, and the orgy on
the Cotton Exchange went on unbroken,
spot cotton touching the highest price seen
here in nearly thirty years. There was a
further decline in sterling exchange in
Berlin and Paris, the Paris cheque falling
a full centime. This, OF course, helped
along the gold export business, and u 500
600 in gold was taken for shipment to-mor-
row. Most of the prominent stocks closed
at declines Of less than half point, al
though st. Paul fell off a full point. Tho
new United States Steel bonds were at one
time especially weak. but their price re-
covered beforo the close Of the market
The reason commonly assigned for the
event was that it was due to sales OF the
bonds by the syndicate underwriting the
issue against purchases Of preferred stock.
Quotations for time money were reduced
somewhat to-day. the reason therefor
being, probably, the small demands now
being made upon money lenders by Wall
Street commission houses. The Chicago
and Northwestern Railway reported an
increase In gross for May of 3376,733 the
Jersey Centrals record of earnings for
the same month was likewise excellent,
and very many satisfactory statements of
railway earnings for the third week OF
June appeared. One Of the most f1attering
exhibits of business profits recently made
by an industrial corporation was the pre-
liminary statement published to-day OF
the American Locomotive Company's earn
ings for the fiscal year. The company
earned in gross during the year 49,, $685. $780,
an increase of $3,458.s37. The earnings
were increased, in other words, by sum
equal to the total value at current market
stock. The company's profits have been
caused by the demand for locomotives
by railway corporations which has for
two years past taxed the ability Of the
constructive facilities Of the country to
supply; and, az is we'll known, all the lead
ing locomotive works have orders for the
delivery of engines running well into 1904
In estimating from the point OF view OF
an investor the earnings Of industrial cor
porations like the one that has been named
the question must, Of course, receive seri-
GUS consideration, whether the business
which these corporations are enjoying or
have enjoyed recently ia OF an ordinary or
extraordinary nature.
There was not a little selling Of Penn
sylvania stock to-day by owners OF the
shares who. in somewhat belated fashion,
discovered the fact that there was money
to be made in selling their stock and in buy
ing enough rights" to subscribe to an equal
quantity of the new capital issue. The new
stock is to be issued at 100 The holder Of
100 shares Of the stock, therefore. who dis
posed OF them to-day at SPA share and
then bought at 81 a share 800 rights '-this
being the quantity necessary to purchase
in order to allow the 100 original shares to DO
fully replaced would be enabled to get
back his old stock at net cost Of Sl23
share, or, in other words, would gain 81 a
share by the operation. commissions not
reckoned A great deal Of the selling Of
Pennsylvania in the last month has been
by large capitalists who have appreciated
the profit there was In this transaction
But the operation ia, obviously, one that
can only be INDUCED in by genuine holder
of the shares. and it necessarily entails sub
scription to the new stock issue. 1t may
be said in passing that some little furry in
money rates is expected for day or so after
the closing, next Saturday, Of the books
for the subscription of the issue, Inasmuch.
however. as the occurrence will be of short
duration and the reasons for 1t are very well
understood, there is small expectation that
il will unfa yorahlY affect The market