The sun., 1903-11-13
FINANCIAL AND COMMERCIAL.
THURSDAY. Nov. 12.

| seCuTltleS knOWn db tHe feIISylNduId
stocks again to-day depressed the stock
market Declines in prices outside the
particular quarter named we're not great;
nevertheless. the whole market was un-
settled All things taken carefully into
consideration, the large fall recently in
the price of the Pennsylvania shares is not
a little puzzling. Any intelligent person
familiar with Wall Street concerns is aware
of the reasons which, in theoretical way,
could be adduced some months ago for
speculative doubts as to the position Of
Pennsylvania stock. They were. in brief
that the large additions to the Pennsyl-
vania's capitalization made the question
debatable, at least. whether the company
could. without strain, continue its present
dividend distribution upon its entire cap
ital stock issue. Spectators for the fall
have also, of late, endeavored to propagate
the idea that there was friction between the
Pennsylvania Railroad Company and the
United States Steel Corporation. and that
considerable portion of the tonnage Of
the latter company might be diverted to
| the Wabash Railroad. Taking up first the
| idea last named. it may be said. upon the
very highest authority. that the relations
| Of the United States Steel Corporation
and the Pennsylvania Railroad Company
were never closer and more friendly than
| they are at the present moment. Indeed,
| 1t requires only trifing exercise Of COM
| mon sense to see how this must inevitably
| be the case. The Pennsylvania Railroad
Company is the Steel Corporations largest
customer for steel rails although the rail-
road company. through the steel plants
that 1t owns and controls. could easily
itself manufacture all the rails 1t de-
sires. On the other hand. there Is
no competitor or even prospective COM
petitor which can or could interfere to
any large degree with the Pennsylvania
receipt Of tonnage from tho Steel Corpora
ton. The Wabash Railroad, it is true,
will soon be in Pittsourg, and contract
made many years ago with the then Car
negie Steel Company will give to the Wabash
road some Of the Steel Corporations vest
bound freight. So far as tonnage eastward
is concerned it will be very long time
before any extension OF the Wabash to the
Atlantic ssaboard could even lay the ground-
work for competitive struggles with the
Pennsylvania lines. Regarding the per-
manenoe OF the Pennsylvania present
dividend rate, there is no fear on the part
Of our leading banking and financial in
tereets that it will be diminished. The
money just raised by mortgages on the
Pennsylvania subordinate lines will be
devoted to absolutely necessary improve
rents which will, as will the proceeds Of
the other new capital issues authorized by
the Pennsylvania company in the last two
years, heavily increase the Pennsylvania
earning power. There IL no other railroad
system in our country that has In the same
degree as the Pennsylvania company the
ability to reduce expenses, and 1t Is the
belief of the most careful and conservative
railroad experts In the land that In the cur
rent year the net earnings Of the Pennsyl-
vania Railroad Company will show a heavy
increase over those OF the year before. The
most reasonable explanation Of the recent
selling Of the Pennsylvania shares Is there
fore that it is due to the determined at
tacks upon the stock by the extremely
powerful bear party now being formed in
Wall Street, these attacks in turnbeing sue
cessful in inducing liquidation by q large
number Of frightened stockholders In the
company. One thing, too, that the Penn
sylvania shares have always lacked 70 or
ganized support on the Stock Exchange
The observation may be made on the
general market to-day that. as for many
Of sales was required to get prices down
as purchases were required to get prices
I'D. Even In the case Of Pennsylvania
sales Of nearly 27o. 900 shares Of half stock
we're necessary in order to depress tho
price of the issue ~ points. Tho United
States Steel stocks held firmly, and at their
reluct ance on the part Of speculatcrs for
~. rzn ind, In 4, ut ftov to
depress them. No little attention was
attracted to-day by the publication of
statement in which tranaference was made
of the United States Steel shares at their
present market valuation into the stocks
of the constituent companies In the Corpora
ton. The st at ement showed that, accord
ing to the present market prices Of United
States Steel common and preferred, the
old Federal Steel common stock would now
be selling at 1873, as against 20, the lowest
price ever recorded for it; Federal Steel
preferred at SOL. as against s0H: National
Tube common at 17e, as against 4oN Steel
and Wire, 1915, as against 16H, and 80 on
throughout the list. The properties COM
prised in the United States Steel Corpora
ton now stand at a market value, in other
words, nearly as low as in the Bryan panic
of better tendency in pig iron prices. and
OF such increases in railroad earnings for
the first week of November as $7e,3ls for
Norfolk and Western, s7o,4s4 for Southern
Railway and $4o,720 for Louisville and
Nashville The Erie Railroads report for
the September quarter showed a surplus
Of s1,5Ssl45. as against ses4,s2l last year,
a very remarkable increase. The local
street railway shares were again very we'll
bought, and Amalgamated Copper and
American Sugar Refining were strong
throughout the day. The last named stock
was, Of course, helped by indications that
the reciprocity treaty with Cuba will pass
Congress with little delay. Announc cement
was made Of the further engagement Of
gold in England for American account of
81. 900 900. Call money here was easier,
So per cent. being the highest rate at which
loans we're made. The Bank OF England's
discount rate was unchanged by the direc-
tors Of the bank at their weekly meeting,
and London was buyer Of stocks here.
New York Stock Exchange Sales, Nov IT.
CLOSING PRICES OF UNITED STATES BONDS