The Washington herald., 1907-05-05
PRICES RANGEL LOWER
Poor Returns of Railway
Earnings the Cause.
CROP REPORTS ARE GLOOMY
Bank Statement UnfavOrabIe and
Causes DisappOfntment-Net Earn
show FALLING On-Security Market
shows an Upward Tendency.

New York. May 4-The slight but very
perceptible heavincss Of the stock mar
ket yesterday was so increased to-day as
20 result in a plain downward tendency
The first prices made were almost in
variabiy below those of yesterdays close,
and though thereafter the market rallied,
and transactions for the entire day We're
not only absolutely. but relatively, some
what smaller than for the full sessions Of
the stock exchange during the week, yet
selling of stocks was again resumed. and
net declines in the neighboyhood Of
point were established in the Amalsa-
mated Copper. American Smelling and
Refining, Baltimore and Ohio, Northern
Pacific. Union Pacific, and other similar
~ active stocks.
The sole influences bearing upon the
market were a discussion of the uneN-
pcctedly poor returns of railway earnings
for the month OF March that made their
appearance yesterday, the crop news, and
a decidedly unfavOrable bank statement
Bulletins from the crop section were OF
the same sort as they have been for
many days past, telling of freezing COLI
weatAer and of lack of moisture only
mitigated by sleet and snow storms IN
certain areas. Because of this wheat
prices were at first stronger to-day, but
declined later owing 10 end-of-the-week
proft-taking and prediction of clearing
and warmer weather in the afflicted dis-
t1cts.
Bank Statement Is Poor.
The bank statement was a good deal ot
eHA och
admittedly some exceptional reasons tor
the character of the return made Bank
loans increased nearly Sl7,00009 and casn
held decreased 81, 500, 900, as against an IN
crease of from S5OdO00 and S000.000 COM
monty predicted yesterday The surplus
reserve, therefore, decreased in the large
sum of $. 10000. bringing the surplus
down 20 a figure somewhat low beside
that of past years.
one of the specific causes for an eX-
hibit OF this character to-day was the clr-
cumstance that the weekly operations or
the Fourteenth Street Bank figured for
the hrst time on the clearing house
sheets. II was known, however, that the
increase IN loans was due in some degree
also 10 borrowing by the Baltimore and
Ohio Railroad Company in connection
with the payment made by the company
cago Terminal Transfer bond purchase.
Pessimistic comment concerning the
large reduction of net earnings currently
shown by the New York Central Union
Pacific, and other companies was admit
tedly greater than il was yesterday.
Analysis appeared of the New York Cen
tFals statement, especially purpOrting 10
show that of the increase Of s., 100 Ia
the operating expenses of the system for
nrsl Fs.n
by an increase In the pay of employees, /
Of which $4,000 was due to a permanent /
enlargement of the pay roll, and the 4
particular weakness of the New York 4
Central shares in the market to-day was
clearly tTaCeable TO this fact
The security market as a whole in Wall !
street during the week has shown the ina
pulse of an upward movement, and
though, as has been outlined. this firmer
undertOne was somewhat modified right at
the close of the period, sentiment in the
financial district is still more optimistic
than it was a fortnight or more ago The
Atchison Railway COmpany's plan of rails
ing money by an issue of 5 per cent con-
vertible bonds made a favorable impress
sion in that IL was considered as certain /
that the company would get the $4,000 600
desired upon the terms offered and that
these terms indicated frank recognition
by the company of the existing state OF
the money market
Prefer LOng-term Notes.
The prevailing belief is that it is better
policy for the railway companies to sell 8 /
per cent bonds running for a ten-year /
term than TO try to sell 6 or Z per cent
short-term notes for one, two, or three
year maturities, since it is held that
.fr-,r so0tr,,-f-Io Of fI,ra bic1 rri,o1
short-tine obligations would be on many
accounts undesirable. The presumption
appears TO be that the Union Pacific Rail-
road Company viii likewise do whatever
financing il has to do in the near future
by means of an operation Of similar sort.
Sentiment was helped in the week by
the magnificent report of Tie United /
States Steel Corporation for the March /
quarter showing how the value of the !
stock of the corporation has been inn /
proved by the immense expenditures made 4
from earnings upon new plants.
Sooner or later the common stock /
holders of the United States Steel Cor /
poration must derive direct benefit from /
this, for il cannot be supposed that the /
management of the corporation means TO /
divert earnings in this way indefinitely. |
that is to say, TO impose upon present /
Shareholders the entire burden of such |
capital expenditures as are taking place.
As regards general business in the cOun- /
Try the commercial agencies, in their /
-ot-the-week reports. say that Nt /
has been impeded moderately by thtsl
unreasonable weather conditions: and /
statistical authorities uniformly. in sum /
ming up the results of business for April !
rather refer 10 an increase of liabilities !
in commercial failures. although the num- /
beT of these failures does not make an 4
unfavorable comparison with the figures /
Of previous years.
NEW YORK MONEY.