New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-06-27
THE WEEK IN WALL STREET.

portion OF investment purchases In the bond
department there was marked increase in the
demand for first class issues for the account Of
investors. while IN the open market the inquiry
for mortgage issues was heavier than the avail
able supply. An indication Of the improvement
in the investment demand for solid securities
was reflected In the eagerness with which the
public subscribed for the Burlington and Lake
Shore bonds and the Rock Island notes. It
may be recalled that in the first part OF the cur
rent year the Lake Shore and Michigan South
ern company authorized an issue OF s4O.Ooo,000
per cent debenture bonds. and that at that
time the response to the offering was not salts
factory. and as consequence the underwriting
syndicate was compelled TO carry large proper
ton Of the issue until more propitlous time for
bond sales developed. Conditions have improved
TO such an extent in the investment market that
the Lake Shore syndicate has been able TO dis
pose Of She balance Of its holdings TO corporate
and individual investors. and II has retired from
The operation with a net profit Of per cent for
the members. There is such a large amount Of
idle money IN the country that the chances of
increased activity in the bond market are ex-
trernely favorable, while It IS not unlikely that
market for stocks.
Speculative operations. a rule. were without
particular significance, except that they indi-
Gated Improvement in Wall Street sentiment and
a disposition on The part Of commission houses
end substantial market interests to espouse the
long side of the market. General conditions af-
fecting the intrinsic worth Of stocks moving
along lines that suggest the holding OF good
curities for better prices, which careful observ-
ers believe viii be recorded IN the course Of the
next six months. If the crops turn cut well
much higher quotations doubtless Will be seen
later on in the season, while if the harvest is
below the normal there VIII be no good reason
for a decline in values inasTnuch as such a de-
velOpment has been discounted by the loss in
market figures in the last year and a half Crop
reports received IN the week were favorable,
while advices from various industrial centres
encouraged the belief that basis for trade re-
Vival is gradually being established. Local mer-
chants are receiving cheerful letters from their
out Of town correspondents regarding the out
look for the fan trade. Railroad earnings for
the three wee.s IN June show Improvement as
compared with tee Nay returns. and bank clear
ings reflect q substantial volume Of business in
most lines Of Industry. Owing TO causes that
have affected certain railroads, there have re-
Gently been number Of changes in dividend
payments. bat the passing and reduction Of the
dividends in question do not foreshadow a gen.
eral change Of this sort among the railroads Of
the country. It is likely however that profess
sional spectators who are short Of stocks Will
endesvor TO create the impression that the ne
cessity which compelled & few companies to
pass or lower their dividends IS a factor which
must be reckoned with in all companies In the
current year The shorts doubtless would feel
happier i there should be a wholesale reduction
in dividends, but there is little probability of
anything OF the sort happening. According TO
the opinion Of the best informed men in the
Street, the time has arrived when short sales
IL securities are extremely dangerous, especially
in the higher priced issues and IN the securities
selling in the neighborhood of par. It is under
stood THAI there is SIN large short interest in
stocks, and i IS thought that traders may have
considerable difficulty in covering their con-
tracts except 81 higher prices.
Notwithstanding the fact that certain people
are endeavoring TO make the general public be-
heve that Wall Street is opposed 10 the Repub-
lican candidate for President his nomination
and that OF Senator Fairbanks for Vice Presi-
dent were well received in the financial com
muniiy, while the party platform exerted dis
tnctly favorable effect on stock market values. !
The greater number oe Wall Streets eminent
men viii vote for President Roosevelt, because
they believe THAI his administration has been
wise that his acts have proved him a safe man
and that his election IN the fall VIII insure busis
ness against harmful changes which doubtless
would result if the Democratic party should be
successful IN placing Its candidate in the White
dousz. People who have taken the trouble TO
study Wall Street sentiment know that there is /
10 desire or the part Of the leading bankers and
brokers for the election of q Democratic Pres
dent, no matter VINO the man may be In the
last two years there have been men in Wall
Street who have shown symptoms of alarm over 4
some OF the Presidents vigorous efforts to en-
force the law against corporations that break ~.
law, but nov is really a difficult matter 10
1Ed a man CT tAis sort Ia the Street who will
not admit mat his recent ideas regarding the
wisdom OF the Presidents policy have been
wholly wrong. Even The people who were up
In arms because President Roosevelt attacked
the Northern Securities merger now agree that
the suit against the corporation and its success
ful ending was one OF the favorable develop
ments OF the year. Already the majority OF
thinking men in The Street are confident that the
Republican party VIII not be removed from
power this fan and they are, therefore. more
Inclined 10 advise the purchase Of securities es-
pecialy as present prices are far under the ac-
tHal worth Of me various investments
In the week there was an excellent deraa nd /
for Manhattan stock; also for Consolidated Gas
and Consolidated Gas rights" Canadian Pacific.
and other substantial issues. While Manhattan
was strong, active selling developed in Metro
poiitaa, the movement being based 10 a great
extent or the company's decline In earnings
which for the March quarter amounted TO over
S3UoOoO IL net. showing n deficit after charges
Of S4S6.ooo. IN the two preceding quarters the
company showed a surplus, but the unfavorable
Writer weather increased the roads operating
expenses to a large amount, while ii caused a
heavy falling off in traffic which. in turn, was
rzrr he ETas-