Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-27
AND BEARS

NEW YORK, February 2T.-Yesterday
afternoon the opinion was expressed In
some circles that. barring any further I'M
favorable announcements within the next
two or three days, the stock market would
probably have q rally Of two points or
more on the average. 1t is true that this
opinion was expressed by professional OPP
orators who are acknowledged as being
the principal factors in the present inact-
I've movement and that 1t did not repre-
sent necessarily the ideas of important
financial interests
Whether the announcement overnight
OF a receivership for one of the roads of
the Gould system will check what en-
thusiasm there was yesterday with re-
spect to the market was a subject of dis
pute this morning. The higher prices for
most of the American railway shares in
London this morning would seem to indi-
cate that this development was largely
without effect on the other side. While
the position OF the Gould system of rail
roads as whole has not been regarded
as strong for some time, a receivership
for the International and Great Northern
came as genuine surprise.
While the immediate effect of the Inter-
national and Great Northern announce
ment may not be pronounced, either
upon the stocks of the principal roads in
he Gould system or the market as a
whole. railroad men said this morning
that it might be taken as fact that the
enect In broad way would be decidedly
disquieting. They think that it will be
the more so because this is the first
Texas road of importance to acknowledge
nnancial embarrassment. AS Is well
known. the pressure upon the railroads in
that state has been more severe than
upon those In any other state of the
Union. Those of an optimistic mind hope
that the International and Great North
erns predicament will have salutary eff
rect upon the slater railroad authorities
and politicians generally In Texas and
lead them to realize that If that great
commonwealth is to be developed to its
fullest extent it's railroads must not be
constantly harassed.
1t is not believed that the failure of
the Erie railroad directors to declare ,divi-
dends on the preferred stocks of the COM
pany will be general market factor of
Importance. but 1t is believed that this
situation will carry considerable weight,
~ 1t will only help to make the embar-
rassment of most of the railroads more
prominent.
II
Some conservative authorities say that
whatever the general business situation
may be. Washington and national politics
will keep the market altogether in check
for some months to come.
business man who has talked during
the last few days with representatives of
business concerns located at various i'm
portant centers in the United States said
yesterday that most of these men report
some Improvement in business. btu
minous coal operator said this morning
also that so far as he is able to observe
the soft-coal business is about 50 per
cent OF the normal. An anthracite opera
tor aid a fe wdays ago that the hard
coal business was then about 20 per cent
OF normal. Some of the southern coal
roads report a slight Improvement in
their coal traffic and In their general
traffic, but they say that so far the diff
ference Is scarcely perceptible. They do
not look for a marked improvement until
after the presidential nominations at the
earliest.
In connection with the statements
credited in a press dispatch yesterday
to Paris financier that French inves-
tors. and particularly capitalists. would
not become interested In large American
loans in the near future. it is understood
that prominent international bankers in
this city have become convinced by
reason Of recent INQUIRIES that London
bankers and capitalists would not care
to attempt to make a market for short
term notes issued by American corpora
tons.
While 1t is not expected that the call
of the Secretary of the Treasury for
approximately s35,OOO.OOO of government
money will have a pronounced effect upon
the money market. bankers are largely of
the opinion that variety of conditions
now existing and others likely to develop
in the near future will tend to lift the
rates for money and make the borrowing
of 1t more difficult than has been true of
late.