New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-08
THE WEEK IN WALL STREET

trouble in the financial community. Prices LOT
the greater number or issues declined under 'he
low points made at the close of the preceolhs
week but active Tecoveries followed WITH AilSA
price changes, showing unimportant differences
as COMPARED with the last quotations Of Satur-
day april 20 Whenever the market SOLO OIL
active buying was reported for the account OF
substantial speculative and investment interests
The process Of accommodating good securities py
men Of large financial resources was the lead
ing feature Of the weeks dealings, especially III
the case OF Union Pacific st. Paul. CANADIAN "a
cifc. United States Steel preferred and Anal
garnated Copper these issues being taken III
large blocks by some of the most important oank-
ing houses il. Wall Street. The people who are
well informed regarding the character OF the
recent break in stocks and who are close observ-
ers Of the situation OF money and business IN
the United States are disposed to buy securities
at the current level. and the fact that so many
stocks thrown on the market in the last two
weeks have gone into the hands Of this KIND OF
buyers ought 10 encourage the theory, that no
further material weakness will develop'in prices.
for the present at least. It is generally believed
that stocks are in stronger hands than at any
time IN the last year. while It Is assumed that
there is still large short interest the latter
Of course being important factor IN tina
markets technical strength.
There was really nothing in the weeks dev7el-
opments that warranted the frequent periods Of
weakness and the declines of Wednesday and
Thursday may therefore be placed TO the &C
count OF speculative conditions rather than to
factors affecting rs actual value Of stocks iano
bonds The Streee for a short time became
somewhat excited over the announcement that
both the Lake Shore and the Baltimore and
Ohio railroads had sold q large block OF their
holdings Of the Reading system. but when SUD-
seouently il was learned that control of the
Reading had In no way been affected by the
sale Of its stocks by the Lake Shore and the
Baltimore and Ohio the Wall Street mind drifted
10 its normal sensible channel and traders who
had foolIshly sold their securities made haste
10 renew their position the long side Of specu-
lation. The fact that Reading stock has been
selling many points above the price at which
il was bought by the two companies that are
now IN control Of the Reading property war
rants the action Of the Lake Shore and the
Baltimore and Ohio in parting with a certain
proportion Of their holdings. AS a matter Of
fact. This operation ought 10 be a bull argu-
meur on the railroads in question. as 1t has
brought a large amount Of cash TO the treasures
Of the Lake Shore and the Baltimore and Ohio,
while it has in no way changed the community
Of control position Of the Reading property.
Reading stock is not considered dear at its
present price. in Union Pacific heavy nQuida-
ton met by an active demand from the
best class OF traders, and when the fact became
known that there had been no change in the
ownership Of the company through the recent
slump in the price Of the stock Wall Street
sentiment on the issue showed appreciabIe i'm
provement.
It IS known in well informed quarters that.
barring adverse developments Of the most seri-
GUS kind affecting the position of the country's
industries, Union Pacific common stock will be
placed on a > per cent dividend basis at no re-
mote period, and, bearing this probability in
mind, no good reason can be found for further
selling Of the security, except, Of course in the
case Of spectators whose margins have become
exhausted through the recent decline in the
issue. II may be said or the authority of some
Of the most important interests in the Street
that such stocks az Union Pacific, St. Paul.
New-Yorl, Central, Pennsylvania and Canadian
Pacific have been taken on the decline by mon
whose fortunes into the miIlions-taken for
investment account, on the confident belief that
there never viii be time in the history Of Tho
country When first class investment issues will
be forced TO suspend their dividends It NAV
also be stated on the authority of men high in
the world Of finance that in the last v-eal- car
tain troubles that had been causing extreme m
cashiers on the part Of the financial co,7r,,ri+
were settled in a manner that strengthened 8
number Of bank accounts and eliminated fro~,
the situation certain factors that At one Tina
suggested the possibility Of grave deveIonnoeD+s
According 10 the best posted observers. the snac-
uative situation is remarkably sound and II &c
generally believed that there viii be no rero+i
ton for a long time to come Of the berr,4,,I
speculation that in the main has been rasnor
sfble for the decline Of from Is 10 % r7oio+s 90
the last two weeks. An irregular marker -,or,
develop, but the general tendency in tho -.
few months ought to be in the direction Of bipba,
quotations.
railroad earnings received in the last week for
the month Of March and for the last week IN
April were uniformly favorable. Striking pains
were made in all sections Of the country thu
returns Of the roads in the North South. Easr
and West attesting the growth that is under
way N me Industries Of the United States. In
the South and the Southwest IMPROVEMENT T.,
traffic conditions has been under way for .
iong period, and there appears no probabi1it or
change in the other direction in the ta1a,,a -
The current year, while the same thing, NAV, be
SAID OF the roads in most parts Of the co,,n+r,,
Southern Railways earnings for the ,,,c,tb -
March showed an increase in gross. ar 10 -.
cent and an increase in net Of 80 per cent oo
parison being made with the same nar,oa -
year . 20. The 81. Louis Southwestern C,or,,,-
IS reporting relatively the best earninos of -
Gould system, its figures for March s1o,-,r
gain in gross OF over % ner oort
and 4 gain in net Of nearly 50 per con.
the Improvement being due 10 the evro,,
sion IN ali lines OF industry in the terriror7,
served by the company's lines. Union Pacific
ana 81 Paul made big gains for March while
the Canadian Pacific and its controlled roads 70
turned gains that really were es,rraordjnarv
canadian Pacific's gross earnings increased 81,
March 5000 IA j,s nat o.r,.f~