The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-06-19
FINANCIAL AND COMMERCIAL
THuRspAY. June 10.

rectness OF the view taken by many stu
dents Of the market that an equilibrium
has been arrived at between the forces
that have been so feverishly contending
in the market for weeks past. and that
period Of dulness in market trading may
now be expected. Events OF definite
character may affect values as heretofore;
but, generally speaking, the prominent
stocks have reached a price level where
speculators realize that 1t Is dangerous
to sell them short, and which attracts
investment buying This buying Ia not
as vet in great volume, but every reason
able probability is that 1t will heavily in
crease upon any further artificial lowering
of prices by the bear party. AS yesterday
the feature OF the market was its hrm
undertone and its disregard OF what at an
earlier period would have been heralded
az a most unfavorable influence In the
developments in the affairs OF the Colo
RADIO Fuel and Iron Company, 30 to-day
the significant fact about the trading was
the failure of prices in general to recede,
notably despite a rather sharp 1all IN the
price of two leading issues, namely. the
United States Steel and Metropolitan Street
Railway stocks. The decline In Metropoli-
tan Street Railway was not, perhaps, unnat-
ural in the present somewhat nervous state
of speculative temper after the publication
in the morning newspapers OF the tes-
timony taken yesterday at the hearing
Of the suit brought to break the lease OF
the company's property to the lnteruroan
company. Officers OF the company adj
mitted that at the time the lease was made
the business of the company was IN such
condition that the continuance OF divide nds
at the established rate was imperilled,
that the company was In need OF money
for improvements and new construction
and that it was difficult to get the money
under prevailing circumstances. "nat
Wall Street did not remember was that
this testimony, which was not inlpugned,
thoroughly justified the lease made to the
Interurban company, and will, 1t may
be reasonably supposed, defeat the object
of the present action. So far as the con-
ditions referred to are concerned, they
have no bearing upon the present status
OF the Metropolitan Street Railway stock,
which is that OF an issue whose per cent.
dividend rate is guaranteed by company
possessing $50 900 900 of capital, half OF
which Is paid in There were many theories
Steel shares. All that should be said about
the matter in this place and at this time
Is that the reason for to-day's selling OF
the Steel stocks will. In all probability.
very soon become apparent and that when
1t is known it will suggest to most people
a reason for buying the United States Steel
shares rather than selling them.
The railroad earnings for the second week
OF June, which were received to-day, bore
witness to the damage wrought by the
floods No heavy decreases in earnings.
however, were shown. The reduction OF
the Bank Of England's minimum rate Of dis
count from 81 to per cent. took operators
on the London Stock Exchange by sur
prise. All the leading stocks dealt in on
the London market, our own included,
advanced in price. and the immediate in
ference drawn from the action OF the
Banks directors was that any fears
they might have entertained regarding
the stability Of the financial situation here
had vanished. The matter should serve
to shift upon the London market a good
share OF the demand for gold addressed
TO New York from Paris and Berlin. Lon
don houses bought moderately here on
balance during the day, and II tempo
rarily unfavorable local influences, such
as those hitherto mentioned. had not gov
erned the market there is small doubt that
prices here would have risen considerably.
A circumstance which was made more
or less Of by bearish spectators was the
advance in the corn and wheat options.
Reports from the agricultural sections
were that warmer weather was spreading
there, and the rise in grain, therefore. was
not due to bad crop news. The simple
fact is that corn has long sold at a high
price, and a very large short interest has
accumulated in the Chicago market in the
next crop option. There is very small
stock Of corn. comparatively, in Chicago,
and this has made a semi-corner, or at
, least squeeze" in the corn options pos
sibe. The Chicago spectators are TAX
ing advantage Of the situation to the ut
most.
The stocks actively dealt in in to-day
market closed only at small net declines
and certain stocks were exceedingly strong.
Most noticeable of these, perhaps. were
Pennsylvania and Reading. While Wall
Street does not believe. and has at no time
believed, that any immediate settlement
of the difficulties between Gould and Penn
sylvana interests is imminent. it is well
aware OF the fact that, In the nature OF
things, a controversy of this nature must
sooner or later be amicably composed
The recent strength Of Pennsylvania stock
howev yer. has been wholly due to what ia
now recognized as the assured success of
it's new stock issue. Perhaps the buying
of the Reading common shares was based
upon predictions that the earnings of the
Reading road for May, soon to be pub
lished will show surplus of more than
81 600 900 as compared with the deficit of
$500 600 for May last year, The intimation
is that the Readings surplus for the year
will increase nearly 100000. Generally
the earnings of all the anthracite roads are
exceeding the most sanguine expectations
of even few months ago. Moreover,
the market position of the Reading shares
is such that the stock would most easily
lend itself to an upward movement. There
is substantial reason for the belief that on
| the recent decline in the pri g of the stock
very large investment order was filed,
proceeding from parties wholly separated
| from those with whom the control of the
Reading property is now vested. The
floating supply Of the stock in Wan Street
has, in consequence. become greatly di-
minished.