The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-16
FINANCIAL AND COMMERCIAL.


which reflected both buying by traders to
cover she TT contracts and purchases by
/ investors, who come to Wall Street in such
times as these, when bargains are scented,
The existence of a short interest OF large
proportions undoubtedly had great deal
to do with the fact that an excellent selling
market existed for stocks throughout the
day. The market while weak was not
panicky. Only in spots was demoraliza-
ton shown, and ii was but temporary A
lot of rumors Of a disturbing sort were again
in circulatio purportin to account tor
the heavy forced liquidation that has been
so apparent, but nothing tangible devel-
oped There were also at the close equally
intangible rumors of favorable nature
circulated, no doubt by interests desiring
to assist along hurried covering oil short
contracts. The news development most
commented on was the announcement
Il at the Union Pacific Rairoa CO m any
had negotiated a lean for $l000OOOO on
per cent. basis. This, following yester-
days announcement that the Chicago, Bur
lington and Quincy Railroad Company
had secured temporary loan Of SS0OO.OOO
at an Interest rate figuring out per cent,
was taken as further evidence OF the I'M
mediate borrowing necessities OF important
railroad companies, which is requiring
them to pay rates for accommodation dis
turbing to the general security situation.
1t was even reported to-day that loan OF
81 900 900 for twelve months had been ef-
fected by one OF the smaller railro ad COM
pares which is now contro lied by the Rock
Ialn "a AZ II n
Guiding commission, appro ximating per
cent. The paying of of the NO0OO.OOO OF
loans of the Pennsylvania Railroad Com
pany, contracted six months ago, is now
&, ing on and IL was suggested that the
release OF the money represented by these
lCal.s is being taken advantage of by other
railroad corpD rati, rs which have to en-
gage in financing at this time.
London cabled before the opening OF the
local market an irregular range OF prices
for American shares, and II was evident
from the tone OF advices from abroad that
there was much perplexity as TO the stu
ton here. The dealings for foreign ac-
count cut little figure in the local trading
II was estimated that London bought
about 10000 shares and sold about $4,000
shares, the sales chiefly representing st.
Paul stock. From the start further liqui-
dation pressed upon the market in heavy
volume and securities yielded easily to
new low price records for the year. The
liquidation was reflected in the bond de-
partment as well as in stocks. Early
bring on a fresh flood Of selling. There
was Severshness and extreme nervous
ness manifested, and, as already noted,
il was not until the closing hour that any
substantial rallying power was shown.
Ii is unnecessary in this column TO give
a record of the extreme low prices of the
day, but table will be found elsewhere
which affords an excellent idea of the
tremendous shrinkage that has occurred
in stock prices since the high figures were
reached on the crest of the great boom
The lowest prices were generally touched
in the early afternoon, when there was
fresh outbreak Of mingled liquida-
ton and short selling, under which
st. Paul fell for the second time
under 14O Erie broke under 80 and
Rock Island under 20, United States Steel
common went under %, United States
Steel preferred under 70, Missouri Pacific
fell below 81 and Brooklyn Rapid Transit
under so, while General Electric smashed
down to 1871 and other stocks made serious
losses Beneath the selling impact the
whole market trembled, and it was at this
time that there was the nearest approach
during the day to decentralization What
appeared to be supporting buying orders in
st. Paul and few other prominent stocks
played an important part in checking the
decline In the case Of St. Paul. for the
first time since the latest decline began,
there were indications Of the presence in
the market Of the same sort of steady,
absorptive buying Of the stock that was
evident at higher level at the time Of the
last previous market decline which Gull
minated on June 10. Pennsylvania Rail
road stock ruled all day below 40, the
price at which the company's shareholders
subscribed to the recent new stock issue.
but at the low levels it appeared to be well
absorbed. The same thing can also be
said Of New York Central. Consolidated
Gas was one Of the few stocks that closed
the day at net advance, and it was evident
that the pressure of LIQUIDATION in this
issue had lessered materially. Reading
common and first preferred also closed at
net gains for the day.
days total sales rar well above the
million share mark. which gave encourage
ment to some traders who were looking
for "culminatirg day" ir the downward
movement or the theory of large volume
Of sales. Little attention was paid TO the
ordinary run Of news. Crop weather adj
vices were excellent. The disturbed con-
,lition Of the general Wall Street situation
had some reflection in the commercial mar
kets. Grain prices weaker ed, but cotton
prices, while closing al reaction, showed
net advances for tho day. Tho foreign ex-
change market weakened, further rejecting
the firmness of local morey rates. There
we're heavy offerings of all classes of bills.
The highest rate touched by morey on call
was 81 per cent. On time, six-months
money quite generally commanded per
cent. The railroad earnings statements
made public were excellent. The prelimi-
nary report of the Illir OILS Central Railroad
Company for the fiscal year ended June
3Oshowed incomes available for dividends of
SIC, 29O, 900, equal to 1888 per cent. on the
capital stock. 1t was authoritativelv
stated that the earnings of the Northern
Securities group Of railroads for June had
amounted to 3i2 sci 600, an increase Of
81 SAT 900, and that the earnings Of the group
for the fiscal year amounted 10 SI51 ,544. 900,
an increase of lSOO0,OOO.