The Washington herald., 1907-05-11
Wall Street Holds Up Well
at UnfaY0Pable News.
HARTMAN PLANS NOW CLEAR
Financial Arrangements of Union
and Southern Pacific Companies
Better Understood and Hostile
Criticism Not So StrOns-Condition
of Winter Wheat Shows Loss.


brunt to-day Of the extremely Indifferent
reception-to say the least-that was given
in the financial district TO the new Union
Pacific and Southern Pacific financing
plan. Of the persistent Tumors that further
stock and bond issues were soon TO be
brought out by other large corporations.
and Of a government monthly crop report
that was even more unfavoTable than had
been looked for, it must be said that the
market presented a pretty firm undertone,
and that the declines in prices in it were
much less than might have been thought
probable.
Throughout the day sentiment in Wall
street was disposed TO take little kinder
view of the prospective financing ar
rsngsments Of the Pacific companies
than it was yesterday. Nevertheless, hos
tile criticism concerning these plans pre-
dominated. and was in the nature Of
wet blanket thrown upon any general
movement for the rise in securities prices.
The limitation of the life Of the new
Union Pacific convertible bonds TO twenty
years. fact not known during business
hours Yesterday. makes the interest yield
on the bonds a little larger than was cal
culated yesterday but the benefial effect
OF this circumstance in turn is materially
offset by the provision of the plan max
ing the bonds retirabie at a premium of
2lz per cent ten years from the date Of
issue
The scheme as a whole was generally
unfavOrably compared with that OF me
Atchison's money raising plan lately an
4 eH-s sraraHa = rafaa naF
bonds convertible into the common stock
OF the company at par were in almost all
quarters declared TO be more attractive
purchase than the Union Paciic's new
issue for per cent bonds at 80, converu-
bic into Union Pacific common shares at
a point quite remote from the present
level Of the stock.
stockholders Dissatisfied.
From all that could be learned to-day
the likelihood Of q large subscription 20
the Union Pacific bonds by the stock
holders of TIE company is not very
strong. Reprobation is general and en-
phatic concerning the policy adopted by
those in control Of the Union Pacific man
agement of venturing into what is praeti-
cany q speculation in the securities Of
other railway organizations, and that
has now forced the Union Pacific Com
pany al a time when the money market IS
tight. and the necessity for economical
expenditure is being borne in upon every
railway corporation in the land, 70 a30d
Wall street with new issues of stocks and
bonds in order to raise money for other
purposes than that OF the Improvement of
The property Wan street did not like,
either. to-day the figures submitted by
Mr.. Hartman showing that the ret earn
ings of the Union Pacific Company appli-
cable 20 dividends on the common stock
VIII be considerably less for tho present
fiscal year than had been anticipated, and
Ia case of the Southern Pacific Company
decidedly less. The statement has been
widely circulated of late that the South
eTn Pacidc's earnings for the year would
undoubtedly be in excess Of y per cent
upon the c0mpany's common stock, and
yet the official estimate reduced these
figures 10 u1z per cent.
Discussion Of the affairs OF the Harri-
man lines was, however, plainly OF sub
ordinate Interest in the financial district
to-day TO that concerning the statistics of
the growing crops published ia the gov
ernment's May bulletin. These figures ap-
peared in the first hour Of the afternoon,
and before that the market displayed as
a whole a species of feverish and uneven
strength. Spectators for the fall rather
generally bought in stocks sold by them
yesterday, while the effect of supporting
orders was manifest in the leading issues. /
Rise in Wheat Prices.
Even then the market aid not make any
particular response to the crop exhibit
until the wheat market began to rise in
the most sensational fashion seen during
the year 10 date, The rise was continued
during the remainder OF the day, leading
the prices Of wheat options from 2is TO
points a bushel higher than they closed
yesterday,
The government report did not take INTO
account, as il usually does at this time.
the condition of spring wheat. Dut as re-
CARDS winter wheat the report indicated q
statistical condition Of SO per cent, rs
against S99 per cent on April 1, and u
per cent on May 1 last year, which, with
an es innate of 3,5S2,010 acres of wheat
abandoned since the planting season, /
promised a crop yield of 10000 000 bushels. /
as against a total output Of 4g3 600 600
bushels in last years harvest. It seemed
fair TO urge as an influence reducing this /
s. 600 600 bushel loss that the great amount l
Of deterioration OF winter wheat has Oc-
curred in the small wheat producing |
States. and that the average basis Oh J
which the net statistical condition was
compiled had represented conditions as
being somewhat worse than they were in !
reality
But the report was taken in the grain !
trade as being very bad. especially as /
concerned the Unexpectedly large Teduc- /
ton OF producing area, as it is held |
that crop conditions have grown worse /
since ths first OF the month, when the I
government observations were taken; al /
though the attention Of the trade seemed /
at the moment TO be more attracted to /
the prospects for a lessened yield OF /
spring wheat owing 70 the delay attend /
ing the planting OF the crop than to the 1
state Of affairs IN the winter wheat terri /
tory
The jump ia wheat, Of course, affected /
the stock market adversely. and prices I
generally declined point OF more, rally
ing somewhat before the close. The de-
cline was assisted by a story which, al /
though Il met with an official denial. was /
still harped upon, that the Reading Com /
pany was about to authorize new stock /
or bond issue.
Forecasts OF Tomorrow bank state !
ment to-day were OF nOncOmmittaI char /
acter. indicating that the banks had sus- (
tained for the week only Il nominal cash /
loss. The foreign security markets were
peTtuFbed by news OF political troubles /
in India, and by the announcement that :
several new government loans OF various 1
classes were about TO be brought out in /
London. Here time money rates were
characterized as they were yesterday and 4
the day before, by a firmer undertone.
GOVERNMENT BONDS.
New YORK. May I0-C7osing quotations Of United
States government bonds;
PfS astaa