New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-08
THE WEEK IN WALL STREET.

rule exhibiting declining tenoeucys WIN IL
attempt on the part OF the leading speculative
interest TO support q bull campaign While
there was nothing In the situation az affecting
the Intrinsic value OF investment issues OF an
especially adverse nature. there was. however
enough Dess!mism over the development OF GER
tain factors to discourage the expectation OF &C
tive operations for a higher market The Foreign
markets were depressed. owing 10 the war SIT
ustion IN the Far East. and this influence eK-
tended 70 the local exchange. where the bear
element made violent efforts TO convince the In
vestment community that the outbreak Of hos
ulities between Japan and Russia would be fol-
lowed by a wholesale liquidation Of securities
The world over and as a consequence lower
quotations for stocks and bonds. While stocks
were weak on war news. wheat and corn were
strong, although the strength in the last named
markets reflected further movements in the bull
operations In these cereals rather than ex-
pected benefits from q foreign war.
The campaign for higher prices in wheat and
rorn, especially wheat is not based on actual
demand for consumption. and the same may be
said OF cotton. which exhibited such speculative
fireworks IN the week when cotton SOLD at j
cents q pound there reason for TIE price
IN the statistical position o. the cotton mar
ket but a quotation above Il cents, as record
eo on Wednesday. was certainly not WARRANTED
by any save a speculative demand that came
from defeated bears IN the cotton pit and from
large and small spectators who had gone cot
ton mad The crash came sooner than pre-
dicted, but despite the big fall IN quotations.
which n New-Orleans amounted 70 $50 a bale
and IN the local market 10 more than Sl7 a bale.
leaders IN the bull camp asserted that July de-
livery would yet sell at 500 a bale in this
market Cotton speculation has hurt the stock
market and traders talk discouragingiy OF the
outlook for better values long as dangerous
speculation continues in the commodity markets
Wall Street looks askance az the Gotten market,
forgetting that not long time ago the same
circus was under way in stocks
In addition 20 TIE adverse effect on stocks Of
war news and speculation in cotton. grain and
coffee, values were weakened at the close OF the
week by the announcement OF the Pennsylvania
loan OF S5Oe000o0 This amount which has
been advanced TO the Pennsylvania company for
eighteen months on ~ PEI cent notes by a New
York syndicate. is to be used to pay Tor improve
ments already made and contemplated on the
systems Western lines. and 81 Is believed by the
conpany's management that the amount SO ex-
pended viii more than pay the interest on the
loan IN the increased earnings that VIII result It
s hoped. from the Improvements. Wall Street
however-that is. the speculative part OF the
banking cOmmunity-argues that IL VIII be
a long time before the company VIII begin TO
feel the increase I'm earnings from its expendi-
lures OF the last few years and from those pro-
posed. that more stock win have 10 be issued TO
repiay bankers loans. that railroad earnings IN
general wiz show a failing OF THIS year. and
that the company VIII he forced 10 cut its dlyi-
dend Regarding the Pennsylvania earnings. II
Is interesting to note that the company reports
for December on the lines east of Pittsburg,
directly operated decline IN gross earnings OF
1901. 704 and decrease n net OF $4,000, and on
lines west Of Pttsburg q decline O. $4,000 in
gross and decline IN net Of S257,400. For the
calendar year the Pennsylvania company's gross
earnings increased on the lines east OF Pittsburg
1905 100 while net earnings increased S241, 100.
The whole system showed a gain Ga gross 81
SIS63O 020 and a loss in net OF sos. SOC. Even
with this slight decline in net earnings, the COM
pany viii show il IS thought, over per cent on
SIS stock.
Railroad earnings received IN the week for the
last week in January did not, rule, make a
favorable comparison with the same time q
year ago, but they showed nevertheless. sub
stautial gains over other years. and reflected a
large volume OF freight on the greater number
of roads in the country. IL is well 10 bear in
mind that current earnings compare with a
period in the preceding year when the move
1nent OF traffic broke al records. The change IN
the corresponding period in 1903 amounts
roads reporting 70 a loss OF over Is per cent.
and for the month TO a loss Of over per cent
Among the noteworthy reports for December
which have recently come 10 hand that OF the
Southern Pacific company stands pre-eminent
showing gain IN gross OF S653 4S6 and gain
IN net OF S0.7.092. This company has expended
in the last few years an enormous amount OF
money on its property. and as a consequence Il
is now in a position to show large percentage
OF its increase IN gross in net with the prospect
of soon being able to make return 10 its stock
holders. As the Union Pacific holds a large
proportion OF the Southern Pacific stock. the
improving prospect Of a dividend payment on
the shares adds intrinsic value TO the Union
Pacific securities. st. Paul Union Pacific
Southern Railway. St. Louis and San Fran
cisco. Pere Marquette. Pittsburg. Cincinnati
Chicago and ST. Louis. and the Atlantic Coast
Line show substantial gains ia net earnings
for December. but all the other prominent COM
psnes present losses. as. Tor instance. Atchison.
Baltimore and Ohio. Erie. Rock Island and
Wabash.
There was no change OF importance IN the
money market in the week. but the loss In cash
holdings OF the local banks. the announcement
by the Secretary CT the Treasury that depository
banks would soon be called on 20 turn over
certain amount OF government funds % meet
the Panama payment. the requirements Of the
speculative movements in the cotton and grain
markets. and the appearance in the market OF
the Pennsylvania Railroad as a heavier borrow
cr together with the indications that further
corporate demands FOR money would be Ynase
suggeetee TO many minds the possibility OF high
sr rates for loans in the nea- future Loans OF
the associated banks increased IN the week c,ev
s4'OOoO0O' making for the last SIX weeks an
expansion "a this item OF over S120 O0o OO0 A.