The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-01-27
BANK STATEMENT IS ADVERSE
New York CentraPs Heavy Issue
Taken More Promptly Than Others
sofa said to show Malice on Part of
state OmciaIs-Week Featureless.

not large, rarely amounting to a full
point in the case of any active stock. and
the majority of close observers of the
trading were inclined 10 the opinion that
the weakness of the market yesterday.
which seemed to hold over In a dragging
way in to-day's stock exchange session.
was due more to a speculative drive than
to any recurrence of liquidation.
The selling at the end of the stock ex-
change session yesterday was mainly by
two or three large room traders. and. ac-
cording to all indications Of a usually
trustworthy sort, represented speculation
for the decline. pure and simple; but nat
uraIly. of course. holders Of stock for the
rise were discouraged by the weakness
thus developed. To-day the market had
70 contend with the news that the three
leading Vanderbilt railway lines had is
sued 100000 of three-year per cent
notes It was understood that the new
notes were offered to investors at such a
price as TO yield about J15 per cent in
terest
What Wall street did not stop to con-
slider was the very favorable fact that
this particular issue of railway short
term obligations came in the largest block
that has yet been put out by any com
pany or system. and was in the nature
of climax as regarding similar an
nouncements Of like character. A great
demand for them developed, so great, in
deed. that practically all the notes were
Immediately disposed of. 1t is thus evil
dent that there is a price level at which
place, and it is also plain, moreover, that
the quotations for very many leading rail-
way stocks are very little if at all above
this point.
Bank Statement DisRPpOfnts
To-days bank statement. too, was also
accounted an adverse factor in that the
gain in cash by the banks of S3,2fG. 400 was
Offset BY an increase in bank loans Of
SD 000, causing a reduction in the sur
plus Of nearly S2,O0O00O. The Increase In
bank loans under prevailing circumstances
wholly follows precedent. Whenever time
and call money rates. having been high,
materially recede, loans that We're trans
ferred from the banks 20 the trust COM
panies and private lenders at a former
period are retransferred back TO the banks
since the trust companies and private
lenders no longer wish 10 carry them so.
and this applies not merely TO private
lenders but to out-of-town Institutions
and foreign banking houses
The aggregate OF loans in the financial
community at such times is no greater
than it was before, and the general credit
position is in no way impaired. All that
+.L- sg 70
themselves near a fuller extent than
formerly in the clearinghouse statement;
while the one definite clew 80 The entire
financial situation is ,,- .rnav rates
have been reduced. II g.. -ucial posi-
ton had been really weaEsG.d his money
rate would inevitably be higher
Actual developments in "a business and
financial way during the week were not
many. Undoubtedly the most important
occurrence of an adverse sort was one to
which Wall street paid very little atten-
ton whatever, namely the congestion of
railway traffic in the Northwestern part
OF tie country, caused by recent storms
and cold weather. This is the only part
Ui the country so far where a hard winter
season has been experienced, and the diff
hculties met with must Interfere TO some
extent with the earnings Of the roads at
fected. Such losses, however. may really
be described as being of normal charac-
ter.
Suit Shows Malice.
The suit brought by the attorney gen
eral of Minnesota to aunul the charter Of
tire St. Paul, Minneapolis. and Manitoba
Railway. the so-called parent company Of
the Great Northern Railway, was dis
turbing. since it seemed to manifest a
more maievolent disposition on the part of
certain State authorities toward the rail-
ways than has yet been witnessed Yet
the suit in question was indisputably
brought more for show than anything
else.
The Great Northern Railway holds by
a lease the property 1t took over from
the st. Paul Minneapolis. and Manitoba
Company. and its title to the property
through its lease is impreEnable. even in
the almost indispensable event that the
additional issue Of stock made by the
Great Northern Company at the time the
lease was made should be held to be
Illegal
The report Of the Interstate Commerce
Commissions investigation Of the rela-
lions between some of the great Eastern
railway companies and the business Of
coal mining carried on along their lines
contained nothing more than a summary
of the results obtained. which were duly
published while the investigation was be
ing held. and in SO far as the commission
found it their luty to reprobate many OF
the corrupt practices Of individuals which
were there disclosed, the condemnation Of
these acts was no greater than that
generally and properly visited upon them
when they were revealed.
It is 10 be remembered, finally. concern
ing the railway short term note issues.
that have recently been so prominently
I'm evidence. that the bulk Of the borrow
ing of this sort must he about over A
survey Of the issues made shows that
practically all of the leading railway
companies have provided for their neces-
stiles. and that there is every probability
that a few notable announcements of the
sort VIII soon be made. Ore thing that is
not generally appreciated is that all the
railway companies. in view of the exist
ing circumstances, have heavily curtailed
their plans of expenditure made some
months ago.