New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-15
THE WEEK IN WALL STREET.

CLOSING
showed in the leading active securities an aver
age recovery OF less than 3 per cent as com
nared with the final figures Of the preceding
Saturday the improvement in most instances
being recorded on Thursday and Friday, when
the market developed greater activity on opera
tons that bore the eaEnarks OF the more sud-
s+a,4gal snec,IIatfve and investment interests In
view Of the fact that the low prices IN aoi-
DAYS quotations were from 10 to 70 ponl'S
under the best of the year. and as stocks We're III
strong hands, while the speculative situation
was strengthened by large short account Il
was not at all surprising that the larger oper-
ators tnop advantage Of these conditions 10
work for a higher level And the chances are
that barring the development of really ADVERSE
factors in the position Of affairs at nome anu
abroad the rally that began IN "edneSuAS
market will run further in the current week.
There are 80 many strong features In the sl'u-
alton governing the actual worth OF STOCKS emo
bon6s that 2 sustained bear campaign appears
out OF the question at present especially as uie
recent specnlattvs weak points have been elm
.na1ed from the market. The decline tha@ car
RED prices so many points under the high rec
o-6 1rures of the present year caused a big
reimbursement OF stock holdings 1t compelled
the liquidation Of accounts that for long uine
had been a menace TO the general market anu I
IL brought into Wall Street buyers VINO caITieu
thar purchases away with them, thus reducing
the supply Of good securities available for spec
ulatve purposes.
Ia London there also has been a speculative
reimbursement, and as a consequence that mar
J1e+ IS in a more healthful condition a factor
that. Of course has an important bearing on
the American speculative situation. Abroad less
fear auparentIy is felt over the Far Eastern
situation: that IS, far as French neutrailty
is concerned, an evidence Of which Is louiiu
tuathe foreign money markets. which show aoso-
lutely no sign Of uneasiness regarding the inter
national political outlook The money market
,s,a,v-avs the first TO foreshadow international
complications, but amid all the recent aoVlceS
from the Far East on the subject Of the sojouTn
of1be Russian fleet in French waters there has
been no important change in the movements or
The foreign money and exchange markets, ana
AT the moment the big banking interests IN
London and Paris appear to be conhoent that
there VIII be no developments that might orag
the two nations into the Far Eastern connect
In the local exchange market rates were sUohg
in the week Just closed, owing to the limited
slIpply of bankers bills and to moderately
heavy demand for remittance in connection
with stocks sold for European account, ner-
camille settlements and the payment Of natur-
ing finance bills. The liquidation IN the London
market Of American securities early in the week
was caused by the failure of prominent oper-
ator in American securities and by the develop
,,en+ of an overextended bull account in the
fortnishtly settlement, but these factors have
now passed as disturbing features, and as
consequence London doubtless Will again &C
cumulate American securities.
For a brief period last week Wall Street pre-
tended to be alarmed over the announcement
that for the first time since August, 1904, there
had been an increase in the stocks Of iron car
ried by the merchant furnaces, the theory natur-
ally being advanced that the tide had turned in
the iron and steel trade. The increase amounted
to only 1900 tons and, therefore. it may be seen
that the setback so far is of insignificant proper
tions especially as the business has been NOV
ing along at such tremendous pace in the last
few months, equivalent to an annual production
OF d 100000 TONS A breathing spell in the iron
and steel trade viii benefit the industry, and If
legitimate reaction takes place the dangers
OF overproduction will be averted, thus strength
eI1ing the industry and insuring long period
OF prosperity in the business. In all lines Of
trade encouraging reports are being received by
the commercial agencies It is only necessary
to watch the railroad earnings coming to
hand TO appreciate the wonderful expansion that
has taken place in the internal commerce of the
United States in the last six months-an ex-
pansion that has made it possible for railroad
and industrial corporation managers 10 con-
slider the question of increasing dividends and of
adding TO the dividend column securities that
never have been in the dividend list. In the
course OF the current year it is quite certain that
Union Pacific VIII be raised to a 8 per cent
basis, that Norfolk and Western will be ad-
vanced to per cent and that Baltimore and
Ohio Will be placed in the per cent class, while
the outlook favors the resumption of dividends
on number OF shares which it nee
essary to suspend payments last year and the
year before. For the first week in May railroads
reporting earnings show total gain Of about
6 per cent, as compared with the corresponding
time year ago.
In addition to its assumed uneasness over the
iron market, Wall Street processes to be suffer-
ing from acute alarm over the Presidents latest
remarks on the rate question, but it is to be
noticed that no sales were reported for the
count Of actual investors in American railroad
securities because the President believes that
the government should be in a position to check
abuses in the making of rates. Investors who
stop TO consider the Presidents proposition know
that legislation on proper lines viii work to the
advantage Of the railroad as well as to that Of
the shipper, as It viii provide for equitable rates
and prevent the cutting Of rates to a point that
would endanger the interests of the stockholders
assuming, Of course. that the rate making COM
mission viii have the power TO fix minimum
rates as well as maximum. Wall Street in the
event OF the enactment Of legislation placing
the rate making power in the charge of Z. federal
commission, will worry for time, and then
settle down to the new condition of affairs lust
as IT did after the Supreme Court declared the
Joint Traffic Association and the Trans Missouri
Association Illegal and ininical to the best in
terests OF trade. At the time of the decision
against the railroads in the Joint Traffic Asso-