The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-26
FINANCIAL AND coMMERCTAL
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lcssdand idle way upon q reduced volume
Of transactions In the first hour and a hal
Of Stock Exchange business that elapsed
to-day before the appearance Of the weekly
bank statement. During THE time. how
evef. they Fhaint6ined al a rule the strength
shown yesterday. Certain stocks were
heavy, particularly the Erie. Southern
Railway preferred and the United States
Steel shares, and the general declining
movement that set in after the publication
ofE2he bank statement was led by these
ISSUES. The oetensibls reason for the fall
In the Erie stocks was the announcement
Unexpectedly made this morning that a
strike Involving about 1900 machinists had
been ordered on the Erie system. There
were absolutely no known developments
thG&l could account for the selling Of the
UnHed States Steel stocks. and Wall Street
goasH2 was forced to content itself with the
theory that the fall in the price Of h stocks
represented liquidation by individuals who
were DESTROYS for various reasons Of raising
money. To-day's bank statement wal de-
cldedly Of the sort known as better than
expected" since it exhibited an increase
IN cash of nearly 100000, which with an
increase OF only 81, SOC. 900 in loans served
to saell the bank surplus by a, o16, 200 and
made the figures Of the total surplus COM
pare moi ~unfavorably with those Of CORE
spending dates in previous years. Never
thelees, as stated. pressure upon the market
tarunnaaI oftor The ,NaTna ~ thA hoRL ~
turn were published and declines running
to q full point or more in most instances
we're made in the active stocks. Console
dated Gas declined ~ points on further
discussion Of the company's legal status.
Tbe wheat market to-day @as as irregular
AZ ever. opening lower. but closing moder-
stely higher than it did yesterday. Trading
OF. the Stock Exchange was Of course
utterly professional throughout.
Rather better news from the agricultural
DISTRICTS, bulletins Of q more unfavor-
abe character regarding foreign crops,
announcements Of new security ssues by
corporations and unconfrmed rumore re-
garding further money raising plans Of a
sirnflsr nature, an unimportant Stock Ex-
change failure, the passage by the State
Legislature Of the public utilities bill, the
decision in favor Of the Consolidated la
Company by the master appointed by the
United States courts to hear the evidence in
theaeuit begun by the company TO test the
constitutionality Of the eighty cent gas law
and the steps taken by the Attorney-G Gen.
eral Of the State 70 test the validity Of lthe
company franchises comprised the leading
eveptsz of, the week from a financial point
Of view. II could not be said that any Of
them exercised any wide influence upon
LIVESTOCK market. and what the stock market
chiefly exhibited was d continual
Of the interest in IL taken by
the outside public and Of neglect as we'll
large financial interests. The sale
Chicago, Rock Island and Pacific
Company Of $40, ZOO, 200 of its first
and r~efunding mortgage bonds for the
Of taking up 81. 500, 600 Of outstand-
int short term notes and Of providing 10 |
for Improvement work merited
somewhat more attention that it received
10 being the first issue by a railway CON-
pahy Of a straightaway long term bond
1t q relatively high rate Of interest. II is !
neld by many of our most sagacious students
II financial affairs that II the precedent
.hus set had been established earlier in
he face Of existing exigenGes IT would
rave been better for everybody concerned.
The bonds in question will presumably be
aiken by investors In short order
md the necessity Of a continual re-
borrowing Of money by the company
o ;,pay OF short term loans will be
The incident also suggests that
reason Of the current inability of rail-
way companies to obtain money on Easy
eTlas is that many Of these companies are
70 longer able to sell more than a trininR
Of bonds that can legally be pur-
by the savings banks and insurance
companies. The two classes Of oorpora-
ions named form by far the largest single
purchasers Of railway securities in the coun-
~, and when their buying is restricted
ither by lack Of high grade offerings or, as II
been in the case OF tho insurance oom-
by renent legislation, tbs cc;:n..y's
aiiwuy bond market is quick to reflect the
act. It was thought generally this week
nat statements OF railway net earnings for
he month OF April, o to be published,
'ould make a much better showing than
id those Of the preceding month. In the
ase OF the anthracite roads earnings nave
cen increased. at least comparatively,
70 the fact that last year the revenues
7 all these railways were ourtailed by labor
On the other hand. official re-
orts Of railway net earnings for March, as
ist received, are more or less unsatis-
The Financial Chronicle to-day
ornputed that although there had been
gain In railway gross earnings for March
10 per cent, the gain in net was only
per cent. The record Of railway net earn
lRs for April when 1t comes to hand will
be read with much interest for
IL light thrown by It upon the highly i'm
ortsnt question whether the increase in
iilwaS operating ex penses that has been
noticeable during the present year has
due more TO increase Of wages 70
nployeAs and other standing charges
ian to especial expenses caused by
Extraordinary weather conditions. There
as much talk during the week Of possible
Did exports from the country and develop
in the exchange market were
favorable TO these transactions.
nnksrs here would not be surprised 20 hear !
,ws. Of gold shipments from this side at
~. time; but in the present easy state Of J
o oail money market the loss Of q moder-
n a1uaat;tU ~ old hp ,ba IaonI knxL-