The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-04

It was q holiday In London yesterday and
. very fair Imitation Of a holiday In Wall
Street. On one previous Saturday this yeN
business was lighter. but with that exception
II would be necessary to go back far for q
market comparable with yesterdays In dull
ness and lethsrRy. Offices Of brokers were
practically deserted, and many houses,
though open. executed no orders. Fractional
declines were scored In most OF the
active stocks, but no great amount OF
selling pressure was exerted on any one
Of them. The market simply sasged from
inertia. Most OF the transactions represented
the customary week end evening OF specula-
tive positions and were az professional AZ
possible.
The bank statement offered no encourage
ment. As against an expected decrease In
loans, II showed an increase OF %. 1877 900 In
that item. There was an increase OF de-
posits by an amount $3.50 900 less. which,
makes by no means a good ratio between
these items. and a decrease OF about 5000 600
In cash holdings. The net result was q de-
crease OF 81, 7s5, 600 In the surplus reserve.
leaving the reserve at 81. 473. 200. as compared
with more than $4,000. 900 in the correspond
ing week last year and 81. OO.0O0 In the like
week OF the year before. The money changes
we're Influenced. IL was thought. by q con-
tinuation IN the early days of the week Of the
shifting Of trust company funds from the
loan market 10 the DAnkB. Inc same move
ment was reflected to a much greater extent
In the statement Of the preceding week.
In the Saturday letters Of brokers with
large clienteles among investors much stress
was laid on the falling OF In steel orders and
the conflict between the railroads and the
State authorities In North Carolina. One OF
the letters gave Information of a back ward
tendency, similar to that shown by the Steel
Corporation. in the business of the American
Car and Foundry Company. At the begin
ming OF the year, II was said, this company
had on It's books orders for 5000 cars. On
July I the orders called for 81, 600 cars. while
at present the number OF cars booked totals
only about 10000. Other brokers called at
tention to the fact that London advices in
dicate a gradual decrease in business activity
there, particularly In the steel trade. There
was general concurrence in the belief that the
retrograde tendency is proceeding rapidly.
While the banking community receives re-
ports Of business recession with satisfaction
there is a difference Of opinion as to its effect
on the money market this year. Some bank
ers believe that there will be q release OF money
in sufficient amount to exert a very beneficial
effect on the money market in the last two
months OF the year. Others contend that re-
lease OF money from business this year is en-
tirely improbable. The reports Of a back
ward tendency In business" said one OF the
latter yesterday, have to do with a decrease
in the bookings OF new business. The de-
crease has not yet affected the business of any
railroad or industrial corporation for the
reason that they have not yet caught up with
old orders. Both the railroads and the steel
plants have assurances OF business enough
to give active employment during the re-
mainder Of the year. When the decrease In
bookings Of new business shows itself in a
shrinkage in the amount of traffic for the
railrnaA and hue{ne&a for the farf0riea ~ will
be time to expect a release OF capital. but the
release will not come until some time later"
In discussing the North Carolina case in
his weekly letter one broker said: The
pity OF IL Is that inst cad of doing the people
Of North Carolina good. the action OF the
State Injuries them now and for years to
come, for surely the credit Of the State and
it's citizens has received a blow from which
IL will not soon recover. People will hesitate
to lend any money to citizens or communities
in North Carolina. We do not see that the
railroads will lose much, for the law seems
SO clearly unconstitutional and void that IL
will be repealed when the Supreme Court
gives its decision"
Another broker regarded the same case as
another illustration of the public hostility
toward the railroads. The railroad ques-
ton" he said. looms large on the political
horizon Of the coming year. Politicians OF
all parties are agreed that railroad rates are
too high, believing that any other opinion
would deprive them of popular support. The
necessity for reasonable inquiry Is ignored.
They say TO the railroads.: Charge the low
rates we prescribe. and IL you go into the
hands OF receivers your contention that
rates are too low will be proved The holder
of railroad securities can extract small COM
fort from such a suggestion.
Illinois Central stock is impervious to the re-
sumption OF hostilities between Mr.. Fish and
Mr.. Hartman. There has not been a trans
action in the stock since the war talk was cut
loose. The stock has seldom been active in
speculation. On that account the contest Is
without general market effect.
The $40 .,4o, 600 fine imposed by Judge Landis
on the Standard Oil Company Of Indiana 10
equal to about three-fourths OF the dividend
payments made BY the Standard Oil Conn
pany Of New Jersey last year and less than
10 per cent. Of the total dividend disburse-
ments since 1895. Since that time the COM
pany has paid out more than $3.50, COO. oCo in
dividends. IL has a capitalization Of 500, co.,
600, Of which about s97 500 900 Is outstanding.
and has latterly paid dividends which. though
of different amounts in the different quarters.
are at the annual rate OF 20 per cent. In case
the company Is compelled by the higher
courts to pay the fine and does so IL might re-
duce tho dividend rate temporarily, IL was
pointed out yesterday. but no one could say
positively whether or not q reduction would
in this event be necessary. The company has
never seen ht to satisfy the curiosity OF the
community regarding its assets.
surplus and other OF financial
standing and the dividend payments are the
sole indication Of its earnings. There was
but one transaction in the stock yesterday.
and that was at 500, the same price as on the