The sun., 1903-05-23
FINANCIAL AND COMMERCIAL
FRIDAY, May 20

The better feeling evident yesterday II
speculative circles continued to-day, tenn
pered, however, with the fear that in
short time 1t might peter out az 1t has st
often done in the recent past London wal
a buyer, but not 80 large buyer of stock'
az ON preceding days. Sterling Exchange
declined further as. however, did also ster
ling in Paris, 40 that the gold shipping
point" Ia not lowered so far as 1t seems
ANY profit on gold shipments TO Europe
! at the present rate would be very small
although it is possible that gold will still
| 20 to South America The decline In the
cotton market which set In yesterday
was to-day stopped, and the prices of the
various cotton options rushed up and down
feverishly, although within compare.
! lively narrow range. 1t Ia reasonably clear
that no great break in the price Of cotton
at present can be expected The Chicago
and Northwestern Rrilway reported the
large increase in gross earnings for April
| Of S720, ,40l, the result being due. however
| to the fact that the earnings this year in
| cl,lded those Of various subordinate lines
| that were not included in the statement for
April, 1902. 1t is trustworthy stated that
the earnings for the Union Pacific system
for the first two weeks in May have increased
in gross nearly $500 900, and conservative
estimates are again made that the Penn
sylvania Railroads April statement, soon
to be issued, will show an increase in net
earnings OF about $500 600 Exports of
wheat for the week were greater by more
than 1 $50 900 bushels thnn those for last
week Few OF these matters. however.
were greatly talked Of and the upward
movement in prices which resulted in fair
net gains for the day in most OF the active
stocks was purely professional affair,
no outside interest being stimulated.
The destruction by the Pennsylvania
Railroad management of the wires and poles
of the Western Union Telegraph Company
along the lines Of the Pennsylvania Railroad
Company in the State OF Pennsylvania, as
announced in the morning papers. was
probably not due to motives of mere hos
ti!ity, but resulted from the advice OF the
Pennsylvania companys legal advisers,
that it place itself in a position where writs
OF Injunction against the company in the
contest with the Western Union people
could no longer be obtained and that the
litigation concerning the Western Union
company's right to string its wires over
the Pennsylvania property would he forced
hereafter to assume the form of damage
suits rather than more obnoxious legal
proceedings. Wall Streets chief interest in
the matter. however. was in the demonstra-
ton it afforded of the fact that community
Of interest" between some, at least. of the
great financial interests Of tho country is
fast becoming satirical term The more
important event Of the day was. of course.
the announcement that syndicate of
bankers had been formed to underwrite the
Pennsylvania Railroads new 800 900 .OGo stock
issue, The news accounted fbr he marked
strength Of Pennsylvania stock in the last
two days. A fear which became very
acute in the middle OF the week was that
II, when the subscription to the new issue
closed, Pennsylvania stock was selling in
the market below 120, the figure at which
he new stock is offered to the present
shareholders. subscriptions to the new
issue would not be forthcoming. That is
to say no one would want to purchase
Pennsylvania stock at 120 when he could
buy II in the open market for less. A story
that has obtained some currency in specu-
lative circles has been that there was a
determined bear effort to force Pennsyl-
vania stock below the figure named and
thus throw all the new financial arrange
ments Of the company into confusion.
Whether any such attempt was ever Sc
riously planned is doubtful. but to-day's
action OF the underwriting syndicate makes
1t impossible. II must be confessed, on
the other hand, that the action Of the Penn
sylvania Railroad directors in enlisting,
at almost the last moment, the services of
syndicate to make the new issue of stock
successful is q sign of weakness. The
original plan was to carry the operation
through without the costly help OF any
syndicate, on the ground that these
services would be unnecessary. The
necessity has. however, plainly arisen.
1t Is understood that the banking syndi-
cate that has been formed has underwritten
the new issue of stock at 100 with a 2L
per cent. commission In other words.
the Pennsylvania management has had to
pay q ,250 900 to the syndicate for insuring
the success Of it's issue. There are those
who think this money might better have
been given in some way to the stockholders
of the Pennsylvania company, and that.
il it had been so given in the shape OF an
extra dividend or otherwise, Pennsylvania
stock would not now be selling at low
figures and there would be no fear Of failure
on the part OF stockholders to make lie
desired subscriptions.
disturbing feature Of the general mar
ket to-day was the continued weakness Of
the st. Paul shares. The stock was pressed
for sale by one Of the largest commission
houses in Wall Street at every opportunity.
and although over 10000 shares Of it were
dealt in during the day the price closed
at a net loss. One Of the days rumors
was that an increased dividend upon the
Baltimore and Ohio common stock was
likely. The fact about the matter liz that
the Baltimore and Ohio Road can easily
afford to increase it's dividend distribution,
inasmuch as earnings of over 10 per cent.
applicable to dividends on Baltimore and
Ohio common will be shown in the present
year A large party Of prominent and in
fiuental stockholders in the property are
in favor Of paying the increased dividends
The Pennsylvania cont rolling interest, how
ever, is understood To be opposed to the
payment. and what the final disposition of
the matter will he no one can tell.
New Ysrk steck Exchange sales, May n.
cLosIxo PRICE, ov rHrrsu ssArsa ssxsa
s'a Asked sM ASKED.
I n