The sun., 1908-06-28
GOSSIP OF WALE sTREET.

Wall Street yesterday as the annual report
OF the American Car and Foundry Company
issued on Thursday and studied overnight
by brokers and other members Of tho flnan-
cial community. As a result OF the consider
alton bestowed upon the document, the con-
clusion was quite generally arrived at that
the company Is In strong position. able alike
TO cope with great volume Of business or to
weather a long poriod OF severe depression
The company had at the end of its hscal year
a working capital Of S7.is4.7i% and net cur
rent assets of s2i .7oS.04s. This showing Of
financial strength, 1t was argued, atoned for
the statement that at the end OF the year the
volume OF orders on hand was the smallest In
the history of the organization. and brokers
with a reputation for conservatism figured
out that the common stock was represented
by substantial property to an extent we'll
beyond its present market auotai lon.
II was ar gued In some quarters thA. :..o re-
duction In the price Of steel announced a
couple Of weeks ago would be an important
matter for the American Car and Foundry
Company when next the railroads began to
place orders for equipment. as OF course II
would mean that great part OF the material
used in car construction could be obtained
on moro favorable terms than formerly.
Comparatively few people appreciate tho
extent to which steel has superseded wood
for car building. OF the cars built In this
country last year more than 70 per cent. were
either wholly built Of steel or had steel under
frames. and the tendency Is toward further
Increase Of this proportion.
There was less talk Of an unfavorable
kind regarding the Affairs OF the Rock Island
properties. and as such "a there was ap-
peared to come from recognized bear quar-
tcrs 1t produced little effect on the issues
to- which 1t particularly applied and Lone
whatever on the rest OF the market. Tho
st. Louis and San Franclsco stocks were
quoted higher than on Thursday. but we're
so inactive that It would be impossible to
say what might happen In case q buying
order or q selling order Of fair extent ap-
peared In them. The Rock Island issues
were firm but only moderately active, the
per cent bonds which are secured by de-
posit Of the ST. Louis and San Francisco stock
being the least active Of all. The definite
announcement that arran gemepts had been
completed for the payment OF the July In
tereet by the St. Louis and San Francisco
naturally had reassuring effect In view
Of the use which the bears had made OF rumors
to the contrary on the preceding day.
An Eastern railroad man Of the first mag
nitude. commenting on the disposition of
certain Western off1cials to regard the pros
pect OF a prosperous year for the farmers
Us the best forecast OF q resumption of busl-
moss activity, says: Il do not agree with
that idea The farmers are prospe rous now
and are the one class that was not hurt ser-
ously by the panic or the depression which
followed. They have been buying wire for
fences and other things to perhaps a greater
extent than usual, but that does not gu fflce
to keep our industries employed. What
We must have Is a estoration Of tho confidence
In railroad auarters so seriously disturbed
such restoration as VIII result 10 the supply
OF capital for railroad work and the resump-
tion by the companies Of that sort OF develop
ment. have just been talking with large
lumber dealer. He argued against an ad-
vance in rates. told him his business prac-
tically depended on the demands from the
railroads. but he could not see IL. con-
vinced him. though. that 90 per cent. Of the
lumber he handles is used directly or in
directly by the railroads. and he Ia no longer
opposed to q reasonable increase In the trans
portation charges It Is not because there
Is doubt about the outlook for tho crops
that only i,0OO. 900 tons Of iron ore will have
been hauled down from the Lake Superior
mines by July l. as compared with 10. .0O0,0 900
tons at the Same date last year No, the
destruction OF confidence worked the evil.
and only the restoration OF confidence can
effect the cure. '.-'.' ..-". - '.' ...
Consderat ton Of the ten months statement
of the Burlin eton stirn,lated bull sentiment
ON Northern Pacific. II could hardly have
failed OF this kind Of effect except In a bear
market and for the time being the bears GER
tainly were not In contro, O! the mo yement of
prices. That the equities OF Northern Pacific
and Great Northern In the Burlington were of
great value nobody attempted to deny. in
view of what the figures disclosed. and at
temnts at plaoin1 a valuation upon them
gave rise to pretty optimistic forecasts of the
size of the melon which Northern Pacific
wouiu yet oe aoie W ui''uv unions lts .s s'o.s
ho'dcIs as Iesul' Vi .no 'als W ''ea' ''''"'
erh Vi ns '"'eres' III ene Ioau'
Utah Conner advanced to practically its
nj gh recort for the wear and at one time came
could reasonably aspire to, At first its