The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-03
GOSSIP or WALL STREET.

GOSSIP OF WALL STREET.
The loan Item in the bank statements Of
the next few weeks. especially in to-day's
statement. will be studied with very critical
interest. 1t has been generally believed
In Wall Street that the heavy absorption OF
bonds by investors, relieving the syndcates
that had been carrying them would cause a
reduction In bank loans much more than
sunicient to Offset the increase OF loans attri-
butable to speculative operations in the stock
market. II to-days bank statement, for
example. should show further loan e1pan-
sion II would be an unpleasant surprise to
those who have been expecting that any
change would be the other way. There 10
reason to believe that the recent increase
In stock market loans. resulting from an
accumulation Of speculative stocks, has
been larger than most people imagine. West
ern loans are understood to have been heavily
increased in the last few weeks.
In the last fifteen minutes Of trading yes.
terday the bull party made general demon
stration In the market, using Reading com.
mon as the leader. This was probably done
for sentimental reasons. A display OF con.
hdenoe on the eve Of protracted holiday
such as was made at closing yesterday 10
rather impressive. Prices were closed I'D
strong all around. The last transaction in
the stock has yet touched on this movement.
Brokers supposed to be acting for the Gates
contingent were prominent in the work OF
buying stocks UP at the close. They ap-
peared In both st. Paul and Reading and
were active previously during the session In
other stocks. notably Rock Island, Steel
preferred and Mexican Central.
Speculative sentiment at the close OF bust
IIt.k
OF the bull element who had said that tho
programme would be to make a strong clos
ing predicted afterward that there would
be big and active market at the beginning
ofbusiness on Tuesday OF next week. and
that operations for the advance would be-
come more aggressive after the holiday
There is now a good deal OF company on the
long side of the market Many professionals
who fought the advance UP to a very recent
point have. to employ the vernacular. come
aboard" and are trying to make back on the
bull side some Of the money they lost on the
other side. The dsposi ton to go away for
the holiday short of something was weakened
yesterday by the strength of stocks on tho
eve of a three days hiatus in speculation.
The floating short interest has been largely
eliminated from the market. In the loan
crowd yesterday afternoon it was difficult
to lend stocks. International houses were
said to be the principal borrowers.
1t IL rumored that the Consolidated To-
bacco IS, In which there has been very active
speculation this week, may be retired by an
issue of stock. The bond is secured by col
lateral consisting OF stocks.
A trader who had sold stocks in this market
on advance information Of decreased earnings
would have nothing but losses to show for 1t.
H. 10 ID arda
showing a decrease OF more than 81, 900
in net earnings on the lines both east and west
OF Plttsburg for seven months. The annual
report Of the New York City Railway Com
pany. showing a deficit of 81. 39e I'll, was fol-
lowed by a sharp advance in Metropolitan
Street Railway.
The Wabash securities, especially the pre-
ferred stock and the debenture B bonds, were
made prominent in the market yesterday.
George P Butler Bro were said to be the
leaders OF the buying movement. particu-
larly in Wabash preferred. which on re-
spectacle volume OF transactions advanced
TX per cent, to 4oH. The debenture B bonds
advanced from s3h to e5. A reasonable ad-
vance in Missouri Pacific would have moro
pronounced effect upon sentiment toward the
Gould securities than any amount OF activity
in the minor issues, even the Wabash issues.
ne new
and second mortgage bonds are now repre-
sented by interim certificates which will
be exchanged some time during this month
by the Pittsburg-Toledo syndicate. This
syndicate has executed in favor OF the bank
ing interests who undertake to place the hrss
mortgage bonds an option at 80 and interest
on a large proportion Of the entire issue.
The banking interests for their profit depend
upon finding a market for the bonds above
90. The second mortgage bonds are not
under option. The market for them there
fore, will be free. The same Pittsburg-
Toledo syndicate Is to receive SIC, 900 900 OF
new Wabash common stock which has al.
ready been listed and which will be exchanged
shortly for the interim certificates now repre-
is nothing to prevent this new supply OF
Wabash common from coming on the market
Some suspect that the object OF starting
campaign in the Wabash securities at this
time is to make a market for It,
Missouri Pacific is the only important
stock that has not advanced with
the general market. The outside bull crowd
which has been trying to put it UP has had
to take a good deal of stoc ok from an insiders
pool which hitherto has controlled the mar
ket for Missouri Pacific in a somewhat ar
bitrary manner. and there is now some thought
OF appealing to Gould pride by pointing out
the disparity existing in the market between
Missouri Pa ciic and some other stocks. notably
Union Pacific, paying Z per cent. and selling
higher than Missouri Pacific paying per
cent. The Gould group Of stocks is not rep
resented in the stock market by any set OF
banking interests whose business it is to
see that the securities shall compare favor
ably at all times with the average Of values
1t is the only important group of stocks that
lacks this kind Of banking support. The
only exception in the Gould group is st.
Louis and Southwestern. which has the sup
port of one Of the most powerful banking
houses In the Street II holds. for that reason.
a somewhat anomalous position among the
Gould securities.
An advance OF more than points in Metro
politan Street Railway yesterday was largely
at the expense of the short interest.
1t lie said that there has been some very
strong buying recently Of Baltimore ana
Ohio.
In the late trading on Thmr.day. II was
reported that 10000 shares OF S,e,l preteree
vera for sale at az. Some Of this stock mum