New-York tribune., 1907-01-12
STOCK MARKET OPERATIONS.

London had the}frst opportunity to pass stock
market judgment on the proposal of the Penn
sylvania Railroad Company to increase its
authorized capitalization by S2eO.OOo.OOO. and
there the stock lost 3 points at the opening
while consols declined u poira and as high as
per cent was reported ascHhe rate for three
months loans American stocks and bonds
On the New York Exchange Pennsylvania
opened 21a points below Thursdays close and
subsequently declined 11a points further, closing
at net loss of 31s points. The entire list opened
lower, and on heavy liquidation and aggressive
short selling continued to decline during much
OF the morning. with such maximum losses re-
corded as 2A IN Atchison IA in Canadian Pa
cif1c. 21s in ST Paul 19s IN Union Pacific 2 In
Reading, and AS in Denver & Rio Grande A
small rally came toward noon followed by a
period of inactivity and another decline, and in
the last hour the shorts began 10 cover and
prices advanced rapidly all along the line clos
ing figures a rule being about the best OF the
day, although under Thursdays final prices,
st. Paul was an exception gaining IL points
Canadian Pacific, which the close had recov-
cred about one-half of its loss. was sold on
rumors Of an impending stock issue of
large amount but the larger part OF the selling
was probably for accocnt of the I,ool. The time
money market showed no change, per cent still
being asked for all dates from thirty davs TO
six months Increasing ease was evident in call
money the rate not going above 81 per cent.
and the prospect for excellent bank state-
ment to-day was the melting cause of the late
rally in stocks, the known movements of nancy
for the week indicating gain by the banks OF
more than S1l00000o in cash The net gain
last week was more than $3OpAOOO but the
bank statement showed a loss OF than
$4,000. AS that statement. however was
known not to reflect fully actual conditions and
as the indicated gain in ca Sin this week has
been so large it is probable. that the surplus
reserve will be found to-day to be restored to
substantial size
report that the PennssIvania's announce
Ement really meant that only S1OOOO000o of new,
capital was proposed to be raised the S1OO-
100000 bonds be convert ibIe and the S1O0
100000 stock TO be issued ofdy for the purpose
Of taking care Of them, was widely circulated
but met with authoritative denial With the
addition Of the $200,000DOo new securities the
aggregate capitalization of the Pennsylvania,
system, stocks and bonds taken together will be
in excess Of $1OOo000Oo0. a colossal sum even
for the greatest railroad OF the United States.
The new funds are to be used for enlargins the
facilities Of the Pennsylvania and not for enab
ing IL TO enter upon course Of conquest and
that is favorable feature. But the systems
capital requirements have In the last few wears
been so great. with no assurance that the end
OF the period Of vast and rapid output. of new
securities is yet in sight. that the Pennsylvania's
announcement. coming closely after the ex
tensive financing operations OF several other
leading railways, could but arouse the an
prehension of investors and financiers In this
and other centres. and constrain them 10 SET
still further away the date OF the expected re-
turn OF ease IN the money market