The Washington herald., 1907-05-27
Unloading of Actual Stocks
Keeps Market Down.
BORROWING BY ROADS SHOCK
Demand for Money by Railways for
Improvements During Height of
Country's Prosperity Not Reiished
by Investors-Crop Conditions Now
Appear in More Favorable Light.

the very noticeable heaviness displayed
by the market in the week preceding.
During this entire preceding period the
market each day sagged little BY little to
a lower level, clearly attesting an alb
sence of any buying power worthy Of the
name, and when over the Sunday holiday
the news from the crop section was still
unsatisfactory and there appeared to be
no tightening anywhere of the general
financial prospect. a disposition TO sell
stocks was broadly manifested.
At the end Of the week the market raj
lied little, but the rise appeared to have
no more significance than that Of recov-
ering purchases of stock made by profes-
sional traders. There was the usual
amount of profltless discussion as TO
whether the pressure upon the market
that was witnessed was due 10 manipula-
tive or to genuine liquidation. There were
many signs of an active revival Of specu-
laton for the fall. chief among these be
ing perhaps the existence OF larger bor-
rowing demand for stocks than has been
seen at any time since the days Of the
March depression. This was particularly
eXemplified in the case Of United States
Steel common, a stock which because Of
its large volume is usually in ample sup
ply for borrowing and lending operations
on the floor Of the Stock Exchange; yet
such a great desire 10 borrow the stock
exhibited itself that on several occasions
people accommodating borrowers in this
way paid no interest upon deposits of
money made to secure the return of the
certificates.
Heavy Actual sales of stock.
On the other hand, a theory that OBJ
tanned wide credence was that all this
was not so much in consequence Of
genuine bear operations as Of actual
sales Of securities by those who were
anxious for the time being either 10 con-
ceal the fact Of their selling or were con
Quoting their liquidation in such a way
that they might at any time easily re-
cover the stock sold. Rumor was busy
throughout the week with the names Of
one great speculator or capitalist after
another who, ii was said, was disposing
Of securities for various reasons, and one
necessity that was commonly felt, as was
alleged, was that of raising money 10 take
NdlC bl euitcLLlA lAlllblS ~ new ISSUES VI
stocks and bonds Of corporations whose
interests these men had particularly at
heart.
Aside from the clear evidences that the
investment demand in stocks and bonds
was still poor. the one force that especial
ly Influenced the market was unquestOn-
ably the continual announcement of issues
Of corporate securities. The week before
General Electric. and North American
companies that appealed to the money
market Last week il was the big
-Four" and Chicago. Rock Island and Pa
CifiC Railway companies. The present sit
uatiOn in our country regarding these
matters is one that has never before been
paralleIed. At a time when the prosper
ity Of the country is at record high tide,
the volume Of business in il Of UnsuTpass-
ed extent and the necessity imposed upon
the railroads, therefore, Of increasing
their traffic facilities is also greater than
at any time in their previous experience,
the people Of the country do not seem
willing to give the railways the money for
the construction and improvement work
that is needed.
Crop Conditions More Favorable.
Aside from the unfavorable effect pro-
duCed by the incessant bringing out Of
railway stock and bond issues, the actual
news last week was not bad. All trust
worthy advices concerning the crops were
Of more optimistic character and were Of
a sort generally as to justify the cOnclu-
sion that while the progress of the crops
this year has been retarded by the late
ness Of the season. stories Of crop damage
ITO Oh .-I
produce exchanges have been sensational
" exaggerated. The weather last week
over the agricultural section was IN
questionably better than it has been for
six weeks past, good rains falling in Kan
sas and Nebraska and warmer tempera-
lures everywhere prevailing, and sentiment
in all conservative circles is that It is
altogether too early yet 10 make an un-
favorable prOgnosis Of the years har-
vest
It is very well known that State agri-
cultural bureaus are never very enthusi-
astic in their reports Of crop conditions
and that their leaning is, If anything, to-
ward an estimate of probable crop re-
suits that will enhance rather than depre-
ciate the price Of grain. More than pass
ing attention, therefore should be paid
10 the report last week Of the agricultural
bureau Of the State of Iowa, one of the
CountTy's largest corn producing States
declaring that so per cent of the corn crop
of the State had already been planted and
under excellent conditions, and it would
not be at all surprising to close observers
if it should be disclosed in the govern
ment crop report for June that the spring
wheat seeding throughout the country
10 hao ~,
satisfactory than Is now commonly sup
posed.
New Torlx's Gas Decision.
Transcendlng in Importance all other
developments Of the week, however, was
the report to the Federal courts OF the
master appointed 10 investigate and de-
termine the Righteousness Of the appeal
made to the courts by the Consolidated
Gas Company for relief from what was
declared TO be the confscatory operation
Of law passed in this State d year ago
reducing the price of gas in New York
City TO 50 cents per I 900 feet. The master
reported that this law was unconstitu-
tional in that its provisions were 80
drastic as TO compel the Consolidated Gas
Company 70 furnish service without a
fair and adequate reward therefor, and to
amount, thus, TO an actual despoilment
Of the company. The litigation is, of
course, not yet over The finding Of the
master must be submitted TO the courts
and eventually TO the Supreme Court of
the United States for approval; and al
though TeveTsals are rare by the Federal
courts of the findings by their masters
upon points of fact. especially in cases
where such voluminous amount Of testi-
rnonY has been taken as In the present