The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-19
rlNANorAL ANp coMNERc1AL.
SATURDAY, May IS.


three-quarters of an hour Of trading the
market war quiet and, except for the weak
nean in the ACKNOWLEDGEMENTS is
sues, ieaulreIess and uninteresting TO the
last degree. The better news from the
wheat growing sections OF the country ae-
centuated by the decline in the grain mar
kets enabled the trading in the great number
Of securities TO resist for a time the influence
OF weakness In one or two stocks, but when
Brooklyn Rapid Transit began TO sym
pathize with the ACKNOWLEDGEMENTS
Issues and Chesapeake and Ohio dropped
70 new low record figures for the year prices
weakened all along the line and even the
favorable bank statement did not suffice to
change the tendency or improve the tone.
The immediate cause of the weakness in the
local traction stocks was the disappointing
showing Of earnings made by the Inter-
borough Metropolitan combination, but
there we're also definite rumors that before
long this company would need TO borrow
SIS, 900. 900 on three year 8 per cent. notes,
with less definite limitations that Brooklyn
Rapid Transit also would soon make its
appearance In the money market as a
borrower. The decline in Chesapeake and
Ohio was based on a report that the New
York Central interests. as we'll as those OF
Pennsylvania, would soon retire from the
company's board OF directors. ~Disappoint-
ment was felt over the Indifferent support
rendered TO the new Union Pacific bonds
on the curb. and there was a disposition to
regard some Of the selling of st. Paul and the
Hill stocks ss liquidation on account OF the
prospects OF a wheat shortage.
While discussion OF the recent large
bond offering of the Union Pacific Railroad
Company and the prospective prosecution
of the company by the Government in con-
nection with matters recently brought out
by the Interstate Commerce Commission
has been to a greater or less extent a stock
market influence during the week, the over
s~hadowing feature OF the general situation
in financial circles has been the continued
sensational advance in the price OF wheat.
IL seemed probable that to a certain degree
professional speculation was diverted from
the security market to the produce eX-
changes. But the rise in wheat was I'M
doubtedly to be chiefly accounted for by
the entrance Of the general public into
speculative commitment for the advance
in the article on a scale that has not been
witnessed for very many years. The con-
sensus among conservative observers in
Wall Street at the close of the week was
that this speculation in wheat was being
overdone. and a sharp fall in quotations
for all the principal options for future
delivery Of wheat was looked for as likely
10 occur for so-called technical reasons at
any time. II was plain, nevertheless, that
there we're substantial reasons for a con-
siderable portion at least of the upward
movement in grain prices that was in
progress Reports from the West during
the week seemed on the whole 10 be Of
more encouraging sort than they we're in
the week preceding; but the lateness of the
agricultural season WAS still pronounced,
and stories OF damage to the crops from
low temperatures and green buge. and indi-
cations that the spring wheat area this
year would be curtailed, we're abundant.
What has seemed to figure more than any
thing else in the mind of the wheat buyers
10, however, the general outlook for a
poor wheat crop this year the world
over, The newspapers have been filled
with dispatches from Europe giving dis
NAL accounts Of the state OF the crop IN
Russia and in the great Danubian wheat re-
gions and in Germany, 70 that taking all in
all IL has seemed probable that the export
able surplus Of wheat in the large wheat pro-
ducing territories of the world will be a good
deal smaller this year than 1t was last year.
1t remains to be seen. of course. how far This
outlook may be modified by later events.
but the condition of affairs as thus far dis
closed has been certainly sufficient to cause
more than a trifling advance in the price of
grain. Many trained observers declared IL
as their opinion that whatever recession
occurred during the week in prices in the
stock market was due chiefly to sales OF
- o,,.st;aa Aao,,IottNo1v for the Ia,l;na 49,
those who we're engaged in operations for
the rise in the wheat markets, and this was
in a way by a distinct increase in
the borrowing demand for stocks, Senti-
ment in Wall Street was also adversely
by the peculiar heaviness of the
for bonds. For many days past
pressure has been witnessed on the Stock
Exchange TO sell investment securities like
the Lake Shore Is and convertible As. the
Atclison convertible Is and many other in
securities OF similar grade, while
both the subscription rights and the quota
tons Of the new Union Pacific convertible
per cent. bonds when issued" also de-
clined. This might AVE been due partly
to the sales OF bonds by the individual MEM
bers OF underwriting syndicates that nave
been dissolved, but II was also to
be accounted for by the continual presence
Of new railway and other bond in the
issued at a lower price than those
Of similar previous issues. Borrowing was
announced during the week for the account
Of the North American, Delaware and Hud-
son and General Electric companies, and
here was a well defined idea that the {
formation of a general financial plan for the {
benefit Of the Chesapeake and Ohio Railway {
Company was impending. The passage Of
/ bill by the Legislature removing the re- {
s~triotions at present existing upon the rate {
,f interest at which the city OF New York {
AN issue municipal stock was not without
and these matters taken in con- {
with the rise in sterling to a point {
ID which gold exports could easily be made (
{ foreign bankers would be willing to =
facilitate the transaction in the usual way =
we're not without market effect. =
Sew York Stock Exchange Sales. May IS. I