New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-06-18
BONDS.
STOCK MARKET OPERATIONS.

Transactions in yesterdays STOCK tndIhdl were
light In volume on a movement OF values that
showed unimportant price changes In the great
er number OF issues. with more net losses than
gains at the close Commission houses were not
actively identified with the days course OF husi-
ness while the more important market interests
were not disposed to undertake important OPP
erations on either side Of the speculative ac-
count In Southern Pacific and Union Pacific,
the two stocks which supplied the larger part OF
the preceding days business. trading was mod
erately active although total dealings exhibited
a large falling off from the operations in Thurs
DAVIS market, sales Of Southern Pacific amount
ing to about 10000, and total sales Of Union
Pacific TO about 10000 shares. Opening at from
s55s 10 45b, Southern Pacific advanced 10 4o'
then reacted over point and closed at 449s a
net loss Of Ia per cent. while Union Pacific,
which opened at S13s, ended the day at sos a
net loss Of 4 per cent Discussion OF the South
ern Pacihc's proposed preferred stock issue was
again the chief topic Of conversation in bank
ing houses, and from what could be learned in
prominent quarters majority opinion favored
the directors plan TO issue preferred stock for
the purpose of paying of the company's float
ing debt and 10 provide working capital for fur
Their improvements.
In circles where the Southern Pacific plan has
not been we'll received the point is made that
a floating debt of such a large proportion ought
never 10 have been created, and that the com
pany instead Of borrowing money for improve
,,oents in the last few years. should have adopt
ed a policy of slow expansion. by which It would
not have been necessary for the Union PACING
to advance the Southern Pacific money. Critics
Of Southern Pacific maintain that by using
earnings for a period Of years necessary i'm
provements could be brought about without
h. IN
mind that. while an enormous amount Of money
has been spent on Southern Pacific property in
the last few years the earning power Of the
road has been largely increased. and that these
expenditures have placed the property in posi-
ton that encourages the expectation Of dividends
on the common stock AT remote period, de
spite the proposed preferred stock issue. As far
postponing dividends on the common stock
is concerned. the criticism that the issue Of pre-
ferred stock will delay the declaration of
common stock dividend is not well taken mas
much as the idea of the preferred stock issue is
liquidate the companys floating debt This
debt comes ahead Of dividends on the common
stock and its payment through the medium Of
sale of preferred stock viii certainly not have
any important effec; on the dividend date for
the common shares.
Outside Of Southern Pacific and Union Pa
by Atchison. Brooklyn. Rapid Transit, St Paul,
Net )politan, United States Steel preferred and
Consolidated Gas. In the last named stock fur
Their operations for higher prices were recorded,
manipulation. however being the backbone of
the movement. Consolidated Gas rights were
also moderately active In the bond market
buying was reported i'm san Antonio and Aran-
Pass As for the account Of interests identified
with the Southern Pacific company Bond
brokers report the market bare Of high grade
railway mortgage issues There was no change
Of importance in money rates According to the
known movement Of money in the week, the
local banks have gained upward Of 5000 900 in
cash holdings.
On small transactions Third Avenue stock de-
clined nearly five points, but recovered part OF
the loss before the close. the downward move
ment being due to the unfoUnded rumor that the
Metropolitan company would not pay the divi-
dend due on the stock July /. Metropolitan
was also pressed for sale declining for the day
over l per cent On sales Of four hundred shares
New-York Central lost q point Lake Erie and
Western lost ten points a sale of two hun
dred shares, and the common lost over two
points transactions Of four hundred shares
the decline being due 20 sales encouraged by the
action Of the company's directors in reducing the
dividend on the preferred stock to per cent for
the half year. The general market was weak in
the last hour. Outside Of the stock market, the
chief feature of interest in Wall Street was the
sharp break in cotton. which declined from 80 TO
30 points on heavy liquidation. An interesting
feature OF the export situation the report Of
grain shipments for the week. which showed a
week.