The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-05
r:NANclAL ANp coMNERCIALL,
SATURDAY, May


SATURDAY, May 4.
The slight but very perceptible heavinese
Of the stock market yesterday was SO in
creased to-day as to result in q plain down
ward tendency. The first prices made
were almost invariably below those Of yes
terday's close. and though thereafter tho
market rallied and transactions for the
4. entire day were not only absolutely but
relatively somewhat smaller than for the
full sessions OF the Stock Exchange during
the week, yet selling OF stocks was again
resumed and net declines In the neighbor-
hood Of a point we're established In the
7AmRlnamated Copper, American Smelling
and refining, Baltimore and Ohio, Northern
Pacific, Union Pacific and other similarly
active stocks. The sole influences bearing
upon the market were a discussion Of the
Unexpectedly poor returns OF railway earn
'ings for the month Of March that made.
their appearance yesterday, the crop news,
and q decidedly unfavorable bank state
ment. Bulletins from the crop section
were Of the same sort as they have, been
for many days past. telling Of freezing
cold weather and Of lack Of moisture only
mitigated by sleet and snowstorms in GER
h1Al ~ o. OaNh VI WIZ 'iACNh
were at first stronger to-day. but declined
later owing to end Of the week profit taking
and predictions Of clearing and warmer
weather in the afflicted districts. The bank
statement was a good deal Of a disappoint-
ment, although there were admittedly
aome exceptional reasons for the character
Of the return mades Bank loans increased
nearly S17. 900. 200. and cash held decreased
81, DOC, 900, as against AT increase Of from
$500. 900 and 81, 900, 900 commonly predicted
yesterday. The surplus reserve. there.
fore. decreased in the large sum Of IS. 500. 900,
bringing the surplus down to a figure some
what low besides that Of past years. One
Of the specific causes for a n exhibit Of this
character to-day was the circumstance
that the weekly operations Of the Four
teenth Street Bank figured for the first
time on the Clearing House sheets, 1t was
known. however, that the increase In loans
was due in some degree also to borrowing
by the Baltimore and Ohio Railroad Com
pany in connection with the payment made
by the company during the week upon fts
81. GOO, 900 Chicago Terminal Transfer bond
purchase. Pessimistio m concern
ing tine large reduction Of net earnings
currently shown by the New York Central,
Southern Pacific. Union Pacific and other
companies was admittedly greater than 1t
was yesterday. Analyses appeared Of the
New York Central's statement especially
purpoFting to show that Of the increase OF
50, 755 600 in the operating expenses Of the
system for the March quarter 81, 800. 900
was caused by an increase in the pay Of
employees, OF which $4,000 was due to q
permanent enlargement Of the payroll;
and the particular weakness Of the New
York Central shares in the market to-day
was clearly traoeable to this fact.
The security market as q whole In Wall
Street during the week has shown the inn
pulse Of an upward movement, and though.
as has been outlined. this firmer undertone
vas somewhat modified right at the close
Of the period, sentiment in the financial
district is still more optimistic than 1t was
a fortnight or more G The Atohison
Railway Company's plan Of raising money
by an issue Of s per cent. convertible bonds
a favorable impression In that It was
considered as certain that the company
wound get the $40, 000, 900 desired upon the
terms offered. and that these terms indi-
Gated a frank recognition By the company
Of the existing state OF the money market,
The prevailing belief is that 1t Is better policy
FOR the railway companies to sell 6 per oent.
bonds running for a ten year term than to
try to sell @ or Tper cent. short term notes
for one. two or three year maturities, since
Is held that a further accumulation OF
these high priced short time obligations
would be on many accounts undesirable.
The presumption appears to be that tho
Union Pacific Railroad Company will like
wise do'whatever financing 1t has to do In
the near future by means Of an operation
Of similar sort. Sentiment was helped in
the week by the magnificent report Of the
United States Steel Corporation for the
March quarter, showing how the value Of
the stock Of the corporation has been i'm
proved by the immense expenditures made
from earnings upon new plants. Sooner
or later the common stockholders Of the
United States Steel Corporation must derive
direct benefit from this. for it cannot be
supposed that the management Of the cor
poration means TO divert earnings in this
way indefinitely. that is TO say. TO impose
Upon present shareholders the entire burden
Of such capital expenditures as are taking
place. As regards general business in the
country. the commercial agencies In their
end of the week reports say that 1t has been
moderately by the unreasonable
weather conditions; and statistical authori-
lies in summing up the results Of business
Tor April rather uniformly refer TO an in
crease Of liabilities In commercial failures. |
although the number Of these failures does
not make an unfavorable comparison with
The figures OF previous years.