The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-06
Those in Control of, Property
May Form New Holding
Company.
THE MONETARY SITUATION
Cotton Exchange Suit Likely to
Reform Evils Alleged to
Exist.

NEW YORK, May 5.-rhc market
during the week has displayed good
deal OF strength and moderate activity
I'm some OF the speclalties. There has
been IL good deal Of manipulation. but
very little evidence of public particle
patton as yet. The crop reports have
been generally unfavorable. There is
much evidence of damage to both the
cotton and wheat crops. Unless there
ia radical change in weather con-
dtions within the next fortnight. there
Is little doubt that the harvest OF
both these staples Will be much below
tie average. The manipulators. how
ever. have apparently paid little at
tention to this condition. Union Pa
cifc has been the leader In the stock
market and there are so many stories
in circulation to account for the rise
that the situation Is confusion. There
is apparently some ground for be-
lievlng, however. that those who con-
troll the Union Pacific Railroad have
in view the formation of n corporation
to take over the investments of that
company. There recently appeared In
London financial newspaper an
article on Union Pacific, which Is gem
orally believed in Wall Street to have
been inspired by member Of a prom
inent New York banking firm with
Union Pacific affiliations. This article
called attention to the assets in the
treasury Of tho Union Pacific Company,
and expressed the opinion with some
positivcness that plans were being
formed to distribute these assets by
some method TO the stockholders.
The Monetary Situation.
The money market continues to be
favorable In this city. although the
bank situation abroad is not az strong
ns 1T was a week ago. The need for
contraction In the loan accounts OF
many Of the interior banks still exists
although reports are coming to New
York from various aurvters that con-
serpative bankers in the West and
South are beginning TO notify thelf
customers that they must reduce their
tine OF obligations. and 1t liz expected
that considerable contraction In loans
will be shown between now and fall.
which VIII lessen the stringency which
usually comes at that period. Unless
there is a very decided Improvement
in bank conditions abroad. our bankers
cannot look for much help from tina,
quarter during tho next six months: IN
fact, 1T is generally conceded that any
,n,usual demands from this side for
finds would be followed by return
to the high bank rates which prevailed
at all the MONETARY centres OF Europe
in the early winter.
Railroad Earnings.
1t is becoming more and more evil.
dent that in estimating the earnings
OF railroads for 1907, liberal allow
ance must be made for the Increased
cost OF labor and material. and that
these factors VIII have q decided eff
feet upon the net earnings. This has
Teen demonstrated BY the earnings re-
ported for March by both the Union
I':cihc and Southern Pacific Nompanies
The gross earnings Of both these
companies for the month show an in
crease or over $l.00o.000. The net In
crease of Union Pacific, however, was
only $4,000, while the net earnings
OF Southern Pacific showed a decrease
OF over 100000. Washouts and n con-
gestion of traffic We're given as rea-
sons for large part OF the additional
expense of operating both roads. but,
while this may account for some OF
the extra expenses. the advance in
wages and the cost of material are
generally accepted as the principal
causes.
The commission houses report only a
slight Increase in outside business, and
claim that the market Is still largely
professional, although 1t undoubtedly
has tho backing of one OF the import
ant groups of nnanciers In the street
1t Is claimed that the government is
for the purpose of distribution before
there Is any decisive crop news. The
tone of the letters sent out by some
of the commission houses is more
cheerful, and in most instances advice
is given to buy on reactions. This
would indicate that those who are re-
sponsible for the present rise in the
market are attempting to build up a
purchasing power behind them. There
has been no attempt as yet upon the
part OF the big interests to distrihute
their holdings, and whenever the bears
attempt to depress the market, their
offerings of stock are usually well
taken. and prices are advanced to a
higher level. The bull campaign is be-