The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-08-25
FINANCIAL AND COMMERCIAL.
SATURDAY, Aug. n


SATURDAY, Aug. ~.
Substantial advances from last nights
closing level " quotations we're shown
all through the list at the opening Of the
market this morning. the Improvement
running to AZ much as = poipfs in Great
Northern and about a point and n half In
several other stocks. including New York
Central. Union Pacific. Reading and Ameri-
. ran smelling and Refining. The advances
mt the opening were followed by a further
rise In prices within the first quarter Of an
hour. aud during this period there was
such activity as induced many of the pro-
fessioDaI traders to believe that the whols
character, of the market had undergone
n change az y result 81 the announcement
made by Secretary Cortelyou Of his in
ten,ton 10 relieve the money situation
by making weekly deposits with the banks
during the next five weeks. Quite a little
covering Of short contraots was done ON
this theory. although in no we'll informed
quarter was the Secretary's plan regarded
IA a matter Of any great consequence to
the market. The amount Of money that
the Treasury could spare now. presumably
about $i0.0OOyOoo, would not go far in sus-
tanning an upward movement in the stock
market. and the evident intention lie to
utilize the limited means at the disposal
Of the Government in such a way that
practically all the money will reach the
commercial interests and little or none OF It
will be available for use in Wall Street
speculation. When this became understood
the Spectators who, had bought on the
opening rise FASTENED to sell out theirstocks,
while those operating for a decline embraced
the opportunity to add to their commit
1ments on a rise for which there was no
substantial warrant. Southern Railway
preferred was put under pressure. as were
ais the Erie and New York Central,
and all suffered severe declines. IL was
rumored that the Erie directors would pass
the dividends on the preferred stocks. but
assuming that this should be done IL would
hardly furnish any good reason for selling
the ommon III Erie out Of the surplus
earnings of the past year paid no dividends
on its preferred stocks II would have a
surplus OF S., 400, 900 for use on its property.
and the application OF earnings to improve
ments would directly benefit the common
stock. There would thus be reason for an
advance instead Of a decline in the common
stock IL The dividends on. the preferred
issues were suspended. but all the stocks
of the road dropped to new low levels for
the present movement, The decline In
New York Central brought a recurrence OF
the stories of prospective new financing
and Of the rumors that the dividend would
he reduced al the next meeting. All the
ACKNOWLEDGEMENTS group were
weak, Manhattan declining to a ~lowenpoint
Than it had before touched in more than
three years. On the publication Of the
bank statement. which proved better than
A->.at.l aLA~A r.. -. .I.-Ia Ill
by another sharp break. with finally a frac-
tional recovery just before the close.
The liquidation, which had been 80 much
in evidence in the preceding week, had
about run its course by the time the Presi-
dents speech was published in Wall Street
on Tuesday last. and as the short interest
was large and the bad new was all out the
market rallied somewhat on covering,
although at no time did it afford an exhibit
tion Of substantial strength. Later in the
week there was "A renewal OF liquidation
in a number Of individual issues, particu-
larry those in the Interborough-Metro-
politan combination, about which senti-
ment became quite disturbed as a result
Of the investigation Of traction affairs by the
Public Service Commission. neither the
testimony Of witnesses nor the supposed
intentions Of the commission being such
as to inspire confidence in the stocks. On
Friday the directors Of the southern Rail-
way voted to reduce the dividend on the
preferred stock. and ON the same day the
new owners Of Central OF Georgia decided
TO discontinue the payment Of interest on
the third incomes. Both Of these we're con-
sidered significant in their bearing on the
outlook for the continuance Of present
dividends on the stocks of other roads,
although no s,eh broad inference should
be taken, since the two roads in question
operate in nearly the same territory and
under conditions relatively much more
adverse than those which prevail in the
country at large.
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