The Washington herald., 1907-05-26
PRICES AGAIN DOWN
Strike on Erie Given as One
Reason for Decline.
STEEL THROWN ON MARKET
Bank Statement Is Excellent, bat
Pressure to Sell FOIIOws-Summary
of weeks News UnfavOrable-Ina-
biIity of Insurance Companies 10
Buy Bonds Injuries Market.

Buy Bonds Injuries Market.
New York, May 2j.-Prlces Of stocks
drifted around in an aimless and idle
way upon a reduced volume Of transac-
tions in the first hour and a half Of stock
exchange business that elapsed to-day
before the appearance of the weekly bank
statement During this time, however,
they maintained, as 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 publion-
ton Of the bank statement was led by
these issues. The ostensible reason for
the fan in the Erie stocks was the an
nouucement. Unexpectedly made this
morning. that a strike involving about
3Q5J machinsts, had been ordered on the
Erie system.
There was absolutely no known devel-
opments that could account for the sell
ing of the United States Steel stocks,
and Wall street was forced 10 con-
tent itself with the theory that the fall
IN the price Of the stocks represented
liquidation 10y individuals who were de-
sirCus. for various reasons, Of raising
money.
TU-day's bank statement was decidedly
OF the sort known as Better than eX-
pcctcG." since it exhibited am increase i'm
cash OF nearly s. -lGI. which. with an
increase OF only &.5SUG1 in loans served
TO swell the bank surplus by N6l61u,
and made the figures Of the total surplus
compare not unfayorably with those of
corresponding dates in previous years.
Nevertheless. as stated, pressure upon the
market increased after the items of the
bank returns were published. and declines
running 20 a fun point or more in most
Instances were made In the active stocks.
Consolidated Gas declined ga points on
further discussion of the c0mpanys legal
status
The wheat market to-day was as irreg-
uiar as ever opening lower. but closing
moderately higher than it did yesterday.
Trading in the stock exchange WAS OF
c0urs-, utterly professional throughout.
SUM AzAa-ts "a ttlf " fChs
Rather better news from the agricul-
tUral districts. bUt bulietius of more
UnfavOrGbie character regarding foreign
crops, announcements of new security
issues by corporations. and unCoEdrmed
rumCrs regarding further money raising
plans Of a similar nature, an Uulmportant
stOc', exchange failure. the passage by
the state legislature Of the public utilities
bin. the decision in favor of the Consoii-
date Gas Company by the master ap-
pointed by the United States Court to
hear the evidence in the suit begun by
the company 20 contest the constitutions
alitv Of the Sl-cant gas law. and steps
taken by the attorney general Of the
State @ test the validity Of the COM
pauy's franchises. comprises the leading
events Of the week from the financial
point of view.
Il could not be said that any Of them
exercised any wide influence upon the
stock market: and what the stock market
itself chiefly exhibited was "a continual
diminuti0n Of the interest taken By the
outside public and Of neglect as Well 10y
the large fnancian interests. The sale by
the Chicago, Rock Island and Pacific
Railway Company of $1GC0600 Of its first
and refuuding mortgage shUrt-term notes.
and Of providing new money for improve
ments. merited somewhat more attention
than it received. as being the first issue
by q railroad company of a straightaway
lOng-term bond at a relatively high rate
Of interest
1t is held by many OF the most saga
CiOus students OF financial affairs that il
the precedent thus set mad been ostab-
lished earlier. in the face OF existing cir
cumstances, il would have been better for
everybody concerned. The bonds IN cues
ti0n VIII presumably be taRen by invest
ors in short order. and the necessity Of a /
continual borrowing Of money by the
company to pay off short-term loans will
be avoided
Hard 20 Dispose of Bonds.
The incident also suggests that one !
reason of the current inability Of railway |
companies % obtain money on easy terms /
is that many Of these companies are no |
longer able to sell more than a triling |
quantity Of bonds that can legally be pur-
chased by savings banks and insurance I
companies
The two classes Of corporations named |
form by far the largest single purchasers
o. railway securities i'm the country, and /
when their buying is restricted either by |
lack Of high grade offerings or. as il has |
been In the case of the insurance COM
panies by recent legislation. the cOuntry's /
railway bond market is quick TO reflect /
the fact.
1t was thought generally this week that /
statements of railway net earnings for /
the month Of April. soon to be published, |
would make a much better showing than /
did those Of the preceding month. in /
the case Of the anthracite roads earnings
have Increased al least comparatively /
owing 10 the fact that last year the reve-
Eucs Of ell these railways were curtailed |
by labor troubles. On the other hand. /
official reports Of railway net earnings /
for March. just received. are more or less |
unsatisfactory. The Financial Chronicle /
computed that although there has been
gain In railway gross earnings for /
March Of 10 per cent, the gain in net /
was only per cent. The record Of rail- |
way net earnings fOr April when it |
comes 20 hand viii. therefore. be read /
with much interest for the light thrown |!
by il upon the highly important question 1
whether the increase in railway oparat- 4
ing expenses that has been so noticeable 4
during the present year has been due /
more to increase Of wages Of employees /
and other standing charges. than 10 /
special expenses caused by extraordinary /
weather conditions.
There was much talk during the week |
CT possible gold exports from the country. |
and Developments in the exchange market |
were obviously favorable % these transac- /
tons. Bankers here would not be sur /
p-ised to hear news Of gold shipments 10 /
this side at any time. but in the present |
easy state Of the call money market the /
less Of a moderate quantity of gold bv the /
local banks would probably not be consid- /
cred in Wall street as an adverse infIu- |
s-np