The Indianapolis journal., 1904-06-01

ERIE STATEMENT WAS UNFAVoRA-
BILE AND HURT COMPANY-S STOCKS.
Early the Market Advanced on Lon
don's Firm Tone, but Small Advance
Was Lost Later-Bonds Heavy.

NEW YORK May 31.-Three days of leis-
ure for the contemplation of stock market
prospects did not result in any accession
of speculative confidence so far as was
revealed by the meager dealings and the
hating and narrow fluctuations to-day.
The market showed no essential change
from its lethargic character. The firm
tone Of the London market and the Satur-
day bank statement. which was called
favorable by commentators. were worth a
fractional rise this morning. which amount
ed to an average of about IS per cent.
Prices then slipped back TO below last Fri
days level.
The nominal cause was the suspension or
a firm on the Cotton Exchange. but al
though the failure was announced as due
to a defalcation with no bearing on mar
ket or financial conditions the market
failed TO recover its lost ground. News of
the day was not important, but it offered
some more favorable features than for
some time past. The market ignored
these.
The weekly crop bulletin of the Weather
Bureau encouraging regarded the
winter wheat crop and was distinctly hope
full for the start OF the spring wheat crop
The cotton crop, also, was shown to have
improved.
The tenor of the weekly talks by traffic
officials of the railroads was distinctly
affected by the brighter hopes felt for the
crops. which have had some effect in turn
ing the downward tide of railroad traffic in
evidence since the middle of April. Some
of the roads in the Central Traffic region
are enjoying the benefit of the traffic di-
Verted to them by the tie-up OF lake
traffic, and are making favorable comparl-
sons with May of last year.
The percentage of the decrease from last
years traffic has shown declining figure
for several weeks past, and for the third
week of May the decrease has fallen to but
little more than l per cent. Net earnings
do not yet show a turn in the situation, re-
trenchment in operating expenses not yet
being effective in the reports for that
period. The Erie statement was the i'm
portant example to-day. with its decline in
April net compared with last year of $293,-
315, or nearly 20 per cent The stocks Of
the company suffered from this showing,
especially the first preferred, from fears
that the integrity of its dividend was
threatened.
The Paris money market gave further
signs of the satisfaction of its demand
for gold. but the price of sterling exchange
| continued TO advance, and the possibility
OF a movement of gold to London direct
was discussed. Money was easy in all de-
partments of the money market, a re-
suit of the hank statement, and the sub
treasury paid out 81. 10000 on account of
Japanese gold deposited in San francisco.
The 100000 in gold bars engaged for ex-
port on Thursday was all that was avail
able at the assay office in that form.
There was "A light covering movement by
! shorts late in the day, but the closing was
| easy.
! A number of inactive bonds made wide
/ declines from long preceding sales and the
/ general tone was heavy. Total sales. al
| par value 81, $40, 600. United States twos,
/ registered. declined Il per cent, and the
! twos, coupon, advanced Il per cent. on
call.
| Sales and the range: