The sun., 1903-11-24
FINANCIAL AND COMMERCIAL.
MONDAY. Nov, IS

Despite tho fact that money rates to day
showed little, II any, relaxation, and an
adverse influence was exerted against the
market by pronounced weakness in the
shares OF one or two indust rial companies.
prices OF stocks generally advanced, and
the advance In certain quarters was striking
London sent higher prices for our securities
before the opening Of the market here.
and London houses were buyers OF stocks
on balance throughout the day. The
disposition Of foreigners regarding the
American market at present, while 1t can
not be fairly described as sanguine, is still
evidently one OF optimism, and there is
little doubt that foreign spectators and in
vestors would follow an advance In the
market here IL 1t was established. Up to
the present time the willingness Of people
on the other side Of the Atlantic to buy our
stocks has chiefly exhibited itself In the
bond market, and sales OF bonds in this
way. especially of the new issues that have
recently been brought out, have been
large.
The stock market in the early part Of the
day was irregular and at times dull, but
was at no time weak. 1t gathered strength
as the day progressed, the last prices in
nearly all instances being the highest ones.
The feature Of the day was the notable rise
in the Southern Pacific shares, these ad-
vancing ~ points from Saturdays close.
There remains undisolosed by the interest
dominant In the Southern Pacific manage
ment any especial reason for the move
ment in Southern Pacific stock at this time.
But the facts concerning the present and
future OF the Southern Pacific property
are, Of course. open to everybody, and
sufficient reason for higher prices for
Southern Pacific stock lies In plain
understanding of them. The stock is
now selling at a price $40 per share
below that paid by the present owners for
control OF the company several years ago,
and since that time at least $50 0c0 900 has
been diverted from gross earnings to the per-
manent improvement Of the system. These
improvements, as everybody knows. are
now almost over, and 1t must be accepted
as a reasonable probability that. within
year at least, and probably within con-
siderably less than that time, a distribution
upon the Southern Pacific shares will be
begun. When that time arrives the pre-
sumption also seems fair that the price Of
Southern Pacific stock will be not little
higher than 1t is now. All the traction
stocks were also exceedingly strong TO-
day. plausible reason for advancing
Brooklyn Rapid Transit was, perhaps,
rather plain indications that the city
authorities will extend on reasonable terms
a franchise to the Brooklyn Rapid Transit
Company for the construction OF loop
through the streets Of this city by means
OF which the cars Of the company may be
run between the boroughs Of Brooklyn
and Manhattan over the Brooklyn Bridge
and the new Williamsburg Bridge in con-
tinuous fashion. The unanimity OF tho
however. In all the traction shares.
the usually inactive Metropolitan
Street Railway shares. points to some
general reason for the movement in the
traction issues. Another feature Of the
market was the American Ice stocks, which
scored notable gains in price. II is UNDER
stood that the report Of the protective
committee. formed year ago among tho
Of the American Ice Company,
will soon be published and will show q
much better condition OF tho financial
affairs Of the company than has been COM
monty imagined. The market seemed to
pay little attention to the sensational drop
OF nearly points in Republic stoel and
Iron preferred stock. Perhaps one reason
for this was that the Republic Steel and
Iron preferred stock is q security that has
never been we'll distributed. 80 that either
an advance or q decline in its price affects
few people. Nevertheless,
a fall in the price Of any stock Of points
upon transactions amounting to nearly
80 900 shares would have, under ordinary
weakened the general stock
market not little, and that no such weak
ness was shown to-day must be considered
as a pretty bright symptom Of market
health. Interests identified with the man
agement of the Republic Iron and Steel
professed their inability to UNDER
stand the reason for the fall in the shares,
but per cent. cumulative dividend pay
Ing stock selling at 40 is an anomaly. and
Wall Street not unnaturally considers it
very probable that so high dividend rate
is not permanent fixture.
Aside from considerable weakness in
foreign exchange and movement in do
mestic exchange rates in favor OF this
centre, news developments during the day
were unimportant The Chicago and
Railways report of gross
increase in October earnings Of S73l 1857
certainly did not point to business con-
traction. A really fair comparison of
these earnings with those of October of
last year cannot, Of course, be made, as
they include the earnings of a small railroad
line which became added to the Chicago |
and Northwestern system during the year.
But even with this deduction the state
ic W. ol1yd dott