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

Stock market trading in the last week pre-
sented few features of interest, dealings being
composed almost entirely Of the operations OF
the professional clement. while the course OF
values made little Roadway I'm either direction
As a rule quotations showed small net declines.
There was absolutely no interest in the market
CT he part Of the commission house element.
with 20 indication OF returning activity in specu
lations by the public by the substantial finan-
cial men Of the Street Wall Street does not
appear to be alarmed over the condition of af-
fairs governing the actual worth Of securities,
but il as unable TO induce the outsider to come
into the market. and as consequence 1t cannot
bring about important movements on the Stock
Exchange. Naturally the refusal Of buyers to
come into Wall Street has created certain
amount OF pessimism in certain circles. but it is
not likely that this frame of mind will become
ar active factor in the nlarket-that is. as far
forcing a lower level for values is concerned.
Stocks already at level which, for the ma
jor!ty of securities is well under actual invest
rnent worth. and the market is comparatively
free OF weak accounts, securities being in the
hands Of strong people, there is little reason TO
believe that the bear element viii be successful
in establishing materially cheaper figures in the
course Of the next few weeks. unless there
should be developments OF q most adverse nat
ure. While 1t is true that railroad earnings are
declining and bank clearings contracting, there
is no strength in the argument which some peo-
pie are advancing that quotations for securt-
ties ought 10 decline with the present reaction
in business 1t should be borne in mind that
the stock market began to decline long before
there was any indication Of depression in tho
countrys industries This decline has carried
the market down average OF about 40 points
as compared with the high prices Of last year,
and It would seem as If this reduction in values
~ a,14so, sv, de- Az, ThA
United States.
Undoubtedly there is a large short interest in
the present market, and the chances are that If
an active demand should develop the upward
movement in values would be sharp and ex-
tremely harmful to the operators who are now
putting GU: short contracts in expectation Of
further important shrinkage in quotations. At
the moment, however, 1t does not appear likely
that there viii be an important increase in the
volume of dealings in the next few weeks and
possibly months. The outsider seems to be will
ing to let Wall Street take care Of itself, while
the important financial interests have practically
announced that they will not engage in stock
market activity until after the political conven-
tions, and possibly not until after the fall cleo
ton. In the mean time brokers who have made
a careful study Of the market and Of conditions
underlying the value OF American investment
securities do not hesitate TO advise people who
have idle funds TO invest them in the attractive
bargains that may be had the Stock
Exchange in the open market They believe
that even if prices should suffer further
action people who buy at the existing level.
either for speculation or an investment, will
eventually secure handsome profits on their vent
Ure. First class investment securities may now
be bought TO return from 10 3 per cent, but
the chances that it viii not be possible TO
obtain such attractive yield after the pres
ent summer, unless there should be business
panic in the United States. Reports from all
sections indicate sound conditions, and business
men throughout the country believe that the
period Of reaction viii be followed by wave Of
prosperity that win exceed anything Of the kind
which heretofore has been experienced in the
United States
Lighter business throughout the country is re-
hected in railroad earnings, which show for the
majority Of roads substantial decreases as com
pared with the corresponding periods in the last
Two years. The Pennsylvania Railroad Com
pany, which handles a most diversified traffic
representing nearly every industry in the coun-
try, shows for the month Of April a loss of over
So95,5OO In gross, while net earnings present
decrease Of $411, 100 on the lines east of Pitts
burg, making for the first four months Of the
calendar year q decrease in gross earnings of
Sle9olOO and a decrease in net earnings Of
SZ'5l1'2Oo On the lines west of Pittsburg gross
earnings in April decreased Sis 400 and net
earnings S167,700 making a loss in net from
January l OF 81 191 400, which. added TO the net
loss on the lines east Of Pittsburg, makes p re-
ouction in net earnings from January l of
S5'5o2,6OO. At this rate the company will fail to
earn Its dividend, but it is not believed that the
decline IN net in the rest of the year will be so
heavy as in the first four months as the road
has begun to practise economies which Will
serve TO Offset the decline in gross income as an
lnhuence on net. In the same month the E,ria
railroad reported a loss Of over S2S7 900 i'm
srosS ana decrease Of over $4,000 in net
making Tor The ten months Of the fiscal wear a
loss IN net earnings of over So OgO OO6 ~
course II should be borne in mind in studving
present reports OF railroad earnings maj COM
Petisoii Is MADE with period a year ago when
the railroads OF the country were handIing an
tt ollaIuy heaVy volume Of business, traffic
belng heavier than ever before recorded
Notwithstanding the heavy shrinkape in T7rto.e
net earnings in the last ten months, If is NOT
now considered probable that any change will be
mace IN Ihe companys first preferred dividend
rate. The Erie shares held hv men who arc
great believers il the future Of the Erie pron
erty, and the fact that the road is controlled in
part by interests that are identified with the
ialiToad situation west 90 the Mississippi sug-
eests the wisdom of maintaining A tight hold ~
the ERE Stocks. Wabash securities will II is
pelteNeu, increase in popularity lust as soon as
activity develops in the market owing to the
completion or the Companys Pittsbure lines and
10 the announcement that the work of ca rr,-in-
me system 10 the Atlantic sea board by vav of
the Western Maryland and West Virginia O.
lrai Wlll lie vigorously pushed. The Wabash
a.allroad ran Its first train into Pittsburg last
wednesday. The significance of the entra,3ca 90
the WABASH ot Pittsburg viii be apDreciated nv,
people VINO understand the railroad situation in
tf-at part or the country and the wonderful on
portunity that the Wabash company now has
Tor increasing its traffic The Pennsylvania viii
IN the future be compelled 10 divide mart oF its
trafhc with the Wabash, but the growth az
various industries in the section covered nv the
relhsylVanla ana Wabash companies will pro-