The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-09
GOSSIP or WALL STREET.

A broker who felt disappointed over the
bank statement and more disappointed over
the defeat OF Harvard by Cambridge consoled
himself with the reflection that we will take
more gold from the old Bank OF England
next week than would sink the two boats to
the bottom Of the Thames"
While q bad bank statement was generally
expected, few anticipated the replacement
OF the small surplus reserve by such a large
dencit as was actually shown. In view.
however, OF what was known about the pend
ing gold import movement. the publication
Of the figures had hardly more than a mo-
mentary, effect. and traders who had sold
short In the expectation that they could find
a favorable opportunity TO cover were forced
Into q lively scramble to free themselves
from their contracts. A good deal OF the
selling yesterday, a. on Friday. was for short
account. the buyers being in many cases
among the strongest interests in the Street;
and a. all the shorts hoped to cover at once
their own demand even had 1t not been sup
plemented by genuine accumulation. would
have suficed for q sharp rally. Naturally
the trading element did not want 10 go home
short, a. definite announcement OF heavy
gold engagements and Withdrawals from
the Sub-Treasury against these will probably
be made on Monday.
An estimate OF the amount OF gold already
on the way or secured from the Bank-of Eng
Ahnu LOT NntpmenL 10 the UnlLeu oJAtoh WnlOn
attracted q good deal Of attention placed the
total at tl0. 900. 600. while a further shipment
OF 1900. Zoo was reported ~ have been made
from Australis to San Francisco. The Bank
OF France was reported to have sold gold to
the value OF 5000. 900. the destination OF
which was unknown. but was supposed to
be this country. All this indicated q toler-
ably good sized measure OF relief from strained
money conditions. and encouraged belief
that brokers could obtain sufficient funds
to keep them in business.
Wall Street is often spoken OF as q place
for the manufacture and sale Of securities.
but In the manufacturing line 1t has been
very inactive recently. Even In selling Its
business has not been large, because for
some reason the public has shown little dis
position to buy. There can be no fault found
with the goods. as the quality Of the stocks
dealt in on the New York Stock Exchang e lie
very high. There may be a few Of low grade.
but the average 10 certainly such that the
vendors do not need to offer any apologies
for their wares. Why then should the selling
Of stocks be regarded differently from the
selling Of commodities like groceries or dry
goods or automobilesl Prices for none OF
these are low. but probably the prices OF
securities are not as high relatively. II
prices OF stocks, representing the investments
Of people all over the country, are liable 20
suffer from conditions in money which the
AEcubuIy COulu TehcNet ~ u Ms muCu tno
business OF the Secretary Of the Treasury
to afford relief here as in any other line Of
busin ess. II prices were inflated through
excessive speculation i'll might be different.
but current earnings Of the great railroad
and Industrial corporations pretty clearly
show that the line Of value is still well above
the line OF price.
In some banking quarters It Is believed
that the movement OF gold from Australia
A. o. Ill
proportions before long, as British insurance
companies will be called upon to make large
paymenJs on account Of losses In the Cali
forniR disaster, an operation which may be
facilitated by diverting to the United States
gold which would have to be sent to London
in settlement of Australians indebtedness TO
England were 1t not that tho hitter country
seems lk ely to seize upon a convenient
method Of settling its obligations to US.
The lately revealed earning capacity Of
Southern Pacific was brilliantly illuminated
by the statement for July. which showed
an increase Of more than a million in gross
and Of more than three-quarters Of a million
dollars in net. Mr.. Hartman. who b be-
Iieved to have picked up thousands Of shares
Of the stock when the public was kept in the
dark az to the roads progress. should feel
very comfortable over his prospects. Union
Pacific, which Of course benefits from the
prosperity Of Southern Pacific. also showed
very handsome returns OF it's own. with an
| increase OF 1884,, 0tO. OF which half was re-
tanned as additional net earnings.
Absorption Of Delaware and Hudson seems
to be under way. based apparently upon i'm
provement in earnings. which has become
marked in the last month OF so. The sum-
mer has been a good one for the passenger
department, while the coal movement last
month was very heavy.
~ - s-.tI L-.Hu.
that the experts who figured out earnings Of
4 per cent. for Erie common two years ago
can see nothing better than ? per cent. earned
for II in the last year. although the gross
exceeded $50. 900, 900 for the first time In the
company's history. l feel sure that Presi-
dent Underwood, who has brought the road
up in enc respect, has brought 1t up In the
other or that at least he has not allowed the
prospects for the stock to depreciate."
This point about Erie, that its net earnings
In the last couple Of years have not kept
pace with the increase In gross. is probably
due TO the fact that the road has been spend
ing large sums on Improvements and charg-
ing them up to operating expenses. Mr..
Under wood believes in efficiency. He went
to the Baltimore and Ohio when II was a weak
member Of the trunk line family and in an
incredibly short time he put II in a position
to compete on equal terms with its neiRhbors.
He then took hold OF the Erie and no one
doubted what he would do there. Earnings
OF $50. 900, 900 abundantly testify that he has
made good. The money market has not
favored the raising Of funds for purposes
which would yield a handsome return and
the road has been forced to fall back on in
come to meet the cost Of actual betterments.
When conditions change so that 1t will no
longer be necessary to use UP income In this
way and when the road begins to derive
benefit from the improvements now being
made Erie common will come within sight
OF dividends.
Brooklyn Rapid Transit's showing OF 8
Der cent. earned for the stock last year before
charging on appropriations for betterments
has given rise TO dividend expectations. al
though IL IL said the question will not come
up until the ten cent fare question is decided.
or at all unless the decision is in favor Of the
company.