The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-08
FINANCIAL AND COMMERCIAL.
THURSDAY. Nav

| Before the opening OF the market the
smaller commission houses In Wall Street
we're flooded with circulars predicting
that Atchison common stock would shortly
decline and advising sales Of the security.
The stock in question was sold heavily
during the morning hours by various we'll
known bear" traders, and later In the day
a rumor spread through the Stock Ex-
change that large new issue OF bonds
upon the Atchison system was contem-
plated. For this rumor there was, Of course
not the slightest foundation. and IT was
promptly and officially denied. The Atchi-
son railroad is at the present time paying
of at the rate OF 81 500 900 year the serial
debenture bonds issued two years ago for
improvements upon it's property Properly
crediting these payments, the net earning
capacity Of the Atchison railway system
will be in the current fiscal year sum
equivalent to between 10 and 1917 per cent.
on the Atchison common shares. The earn
ing capacity of the road is fully IA per
cent. greater than that of last year Dur
ing the past year the Atchison system has.
of course. added considerably to its mileage
by new railway construction, and 1t has
made payments for this construction wholly
out OF gross earnings.
1t would be very unjust, of course. TO
the Atchison stockholders permanently to
debit the income account of the road with
this expenditure, and 1t may be expected.
therefore, that at the proper time the
Atchison management vii! issue bonds
upon the new branch lines that have been
built. Some of these bonds have, indeed.
already been Issued in tn" shape of tenn
porary certificates, and are now being
exchanged into the regular coupon bonds
That now or at any time in the future the
Atchson road proposes to issue any new
bonds for improvements may be denied
upon the highest authority.
Another means of exciting alarm among
timorous and ignorant spectators that
was practised with some success was on"
which concerned itself with the United
States Shipbuilding Company's sinking
fund" per cent. bonds. These bonds
have been selling at about As on the outside
market and have only recently been listed
on the Stock Exchange The device was
hit upon to-day Of quoting the bonds in
the Stock Exchange at an absurdly high
figure asked and low figure bid. and
then Of rapidly lowering the asking price
in successive quotations until the figures
reached
To one not onversant with market affairs
the occurrence would seem like very
great and unexplained fall in the price
Of mortgage security: and, taken in con-
nection with the Atchison rumors and with
story that the outbreak of a Turkish war
was imminent. it played a part i'll unsettling
values. The market is still, OF course, u
narrow one. and professional spectators
find this disadvantage in attempting to
advance prices: il they buy stocks they
have interest charges to meet while
speculations for the fall may he conducted
more cheaply The selling movement
met with some little support, therefore.
for professional operators who saw chance
Of market turn
The general news of the day was en-
tireiy favorable. Warmer weather spread
throughout the wheat belt and resulted in
marked decline in the price of wheat OPP
tons in the grain markets. Some disap-
pointment was expressed that the Bank Of
Englands minimum rate of discount was
not changed to-day, but, as the first large
instalment OF subscriptions TO the new
Transvaal 10 an will not fall due until May
%, and as the loan has been enormously
there will be. obviously.
large demand for money in England until
after this date. and the directors Of the
Bank, therefore. will nat uraily desire
to fortify themselves against a demand
for funds until they can gauge the financial
effect of the new issue.
The weekly return Of the Banks con-
dtion was very favorable, its proportion
of reserve to liabilities standing at SILL.
az against 4s8 last week and 1851 last year.
Bank rate of per cent under these con-
diions would, of course. he an anomaly
except for the circumstances mentioned.
Sterling exchange in Paris to-day held
firmly at % francs 10 centimes, and sterling
here was little easier at the close of the
market. The outlook for gold shipments
next week is by no means clear, and as
stated in this column yesterday, there are
experts who declare that no gold will he
shipped from this side this spring. The
money situation grows easier each day, a
loan of sixty-day money being made to-day
at "a per cent. while loans were made
running until after Jan. next at S per cent.
All indications, too, are fora good bank
statement on Saturday.
More favorable reports of railway earn
ings were received to-day. The Brooklyn
Heights Railway which is the core of the
Brooklyn Rapid Transit Company. made
showing for the quarter ending March 81
of an increase in net earnings OF 1923 ,2O3.
There is trustworthy authority for the
that the April statement of the
Union Pacific Railroad will show that at
least half of the large increase in gross earn
ings of the system for the month have been
retained in net.
II is believed that the purchase OF the st.
Louis and San Francisco road by the Rock
Island company has been accomplished.
and that announcement OF it will be made
in due time. The striking feature OF the
market to-day was really the strength of
Missouri Pacific and OF the Erie stocks,
the former especially, despite the weakness
Of the general list. The Missouri Pacific
shares at one time sold at the highest
point on their recent movement. and when
the market became weak they reccded but
little and transactions in them almost ceased
NJ ,:her very strong stock was Amalga-
mated Copper. which closed at decided
net advance
New York Stock Exchange Sales. May .. |
OMITTED STATES AND STATE BOND. ~ I.noos
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CLOSING pR;cRs or rNfrSp sYA1ns poHHa