New-York tribune., 1908-08-21
FINANCIAL AFFAIRS
STOCKS CLOSE STRONG.
Eorlu Bear attacks Follo7ced by
Couering Call Money at
81 of Per Cent.

,.,. ,,,oes,,re on the Rock Island and New
VI central shares in the early dealings IN
Yesterdays market was responsible Iol ue
selling throughout the entire hsl' anu INV
raco,-aries were recorded in the afternoon, INC
,oax5roun, losses were large enough 10 Shane
ont many small margin accounts Inc oo"il
,.ard movement was not accompanied by news
deve1onrnents affecting adversely TIE ll'ii
worth of securities. but operators VINO were III
cined toward the bear side Of specuiatoii iilaue
capital out of the fact that the New hoih -
traI did not earn its dividend In the nrst nan
&c tho ,-ear while they again dwet upon the
rpn,ors current regarding Rock Island as suHl-
cient reason for hammering that company rs
sues Rock Island may find 1t necessary W
divorce itself from its control OF the 81. houi'
e San Francisco. and it doubtless VIII 10
coTanelled to do some heavy financing at no
ror,ate neriod but the chief factor in the pres
ent weakness in its shares is to be loullu III
attacks upon the stock by an active specui"'Vt .
and his following. The greater huhloel VI
ebort sellers in recent days have been secohd-
rate operators There has been no heavy Sell
inc hy the leading market interests VINO accu-
muIated securities far below the eXlsuhS leNei'
and apparently their holdings Will h0l coiile
upon the market as long as they are coilN ~
,ba+ nrospects favor higher quotations Inc
short selling exhausted itself yesterday before
tba last hour and traders, finding little STOCK
in the market made haste to cover, thelr oper-
ations carrying prices ! to points aoo'e tlio
low points leaving last figures IN the maJorl'y
of shares at net gains Southern Pacllc ana
Union Pacific were especially strong Wills
Neu- York Central recovered its early loss ana
ended at net advance of IS Attempts were
made 10 spread a belief that genuine 'llquLud-
tion was under way in the Hill stocks pul lhe
ease with which the latter recovered theli
losses testified TO the wholly speculative char-
.o+a- of the recent selling. The general course
nf sneculation in the last few days mas re-
Aec+ed Willingness On the part OF the SupStdn
tiaI interests TO give traders free play Ior me
,,rnoea of shaking out the small fry and
+ra,,r+hening the technical position of specu-
1otioo through the creation Of a big snort IN
+erest The heavy decline in cotton yesterday
compelled a number OF cotton opeIa'oa - -
linuidate their stock commitments IN cFoer u
raise funds to protect their cotton contracts
/ Though the Immediate outlook for the holdelS
-. +i,a HIa+ronolitan Street Railway Company is
/ not al all promising it should be borne in nina
! that the report Of earnings recently presehteu
t,, the receivers is based upon extraordinary
! conditions and not upon normal trafnc pusl-
/ moss Receipts from fares were large enough 10
/ Give the company a good profit, If 1t had not
/ been for heavy maintenance ana equipment
I charges and other expenses fofced pE Ihe pun
! nb,,sical condition of the property at the time
| II was taken over by the courts Operating eH-
/ ,,a,eas for the nine months covered by the re-
mort consumed 81 per cent of the gross earnings,
/ whereas normal charges for this account Woulu
! have heen in the neighborhood of ID per cent
! Do'N-~'
! ss they will be when the road finds itself In a
/ stronger physical position, the company VIII be
! able TO meet fixed charges, but with nothing
over for the stOck-that is, on the basis OF gross
recefrts in the last nine months and it is there
! fore. likely that there will be drastic scallns
| down of the bonded Indebtedness in the reor-
ganization, the casting off Of unprohtable leases
and a reduction in the present stock capltallZa-
ton 1t is evident to any one who knows any
h ming about traction matters in this city that
,iraoyF pf MPtrODOllIan
| pany is far greater than shown by recent re-
| ports, and in well informed quarters 1t IS felt
that under a scientific reorganization, with the
company free from entangling alliances with
high finance" the road eventually will be a
credit TO the city and j safe investment propo-
| sition. There are not many people in the Street
| well disposed toward the surface lines securi-
| ties but these issues do not represent hope
! less proposition by any means.
| Money was easy yesterday at all centres. The
| Bank OF England made no change in its dis
| count rate and showed higher percentage OF
reserve to liability in its return than any
! irnp