Los Angeles herald., 1908-02-12
NEW YORK STOCK
AND BOND MARKET
Snecial 10 The Herald.

NEW YORK, Feb. 1.-THE needs of un-
covered short interest which began to make
itself felt even before yesterdays session
~ weakness was over asserted its influence
deeisively in today's stock market and ef-
fected a substantial but temporary rally in
prices. The covers though material, did
not cover more than part of yesterday s
declines and the force of the demand was
decidedly less at the higher stages of rally
end seemed exhausted in final reaction
The market in fact became profoundly
duh in the latter part Of the day and the
volume of dealings of the day before shrunS
10 about the average of last weeks trad
ing Some Of the rumors which were in
circulation in the immediate neighborhood
OF the stoci- exchange yesterday looked
somewhat absurd in the more sober atmos-
phere of overnight consideration, the news
publication practically ignoring them by
reason OF their unauthentic character.
A covering movement was a natural con-
sequence of these conditions There was at
the same time cessation of pressure ~
sell which looked like liquidation yesterday
and was pressed with some urgency. The
technical condition Of the market was so
far altered that unfavorable developments
were without effect in checking the tend
ency toward recovery. Sentiment the
industrial outlook was somewhat cheered
by quite a variety of reports of resump-
ton of work by factories which have been
closed down by reason of the diminished
demand for their products There came
report that the Pennsylvania railroad had
S5 per cent of its equipment idle Pennsvl-
Of the market in this. partly accounted for
by the belief that sales were being made
of the stock against purchases of Reading
through the same firm.
The Rock Island securities also showed
some unfavorable influence of the cut IN
earnings reflected by the December report.
The decline in gross earnings with the tide
of operating expenses still rising seemed
common TO all branches of this extensive
system. the net result of all lines showing
decrease from December of 1906 of S1,140,- |
o96, SO per cent.
For the six months from July there is !
shown a shrinkage in the net returns of
ss,215,s95. or upwards of 20 per cent
Such exhibits go to explain the weak /
ness of the securities affected for some time /
past and this former weakness also is the |
reason for the moderate effect on values of
the actual publication.
An incident of the day that of con-
siderable influence in proving sentiment was
the recovery in the New York City 4ls |
bonds the stock exchange, which gave a
more hopeful feeling over the prospects for
success of the $4,000, 600 new issue on FRI
day. an offering of greater volume by the
way than has ever before been made at one
time Nominal quotations were made for
the new bonds in the outside market. when
and as issued" at 104 bid and 105 asked.
The price realized by the city on the pre-
vious sales of rs in September was 1888.
The outcome of this sale Is likely to have
an important effect actual opinion If It
results in a pronounced success or a marked
disappointment. Railroad and other cor
porations are in urgent need of new capital
to push extension work and even to pay for
new equipment already delivered Their
ability to secure it may be of far reaching
Importance in setting the period of renewed
productive activity by numerous industries.
The holiday tomorrow influence to-
wards curtailment of activity in stocks
brief selling movement at the end of the day
made rapid inroads on the earlier gains and
left the days changes mixed.
Bonds irregular. Total sales, par
value. aces, 900
United States IS registered declined u
and the As registered advanced = per cent
on call.