The Washington herald., 1908-04-10
ERIE'SPLAN FAVORED
Brokers Satisfied with Turn
Matters Have Taken.
ROADS FUTURE IS DISCUSSED
Those who Parted with short-term
Notes Now Regret It-Prices Hold
I'D Well, bat No Enthusiasm Is Dis
DIayed-UniOn Pacific About 30 Ne
sOtiate s5O.OOO,OOO Bond issue.

New York. April s-wal street natural
ly to-day construed as a favorable in
fuence the Erie Railroads narrow escape
yesterday from bankruptcy proceedings.
There was, of course, more or less dis
satisfaction over the outcome OF the af-
fair on the part OF the holders Of the ma
turing short-term Erie notes who in the
last few days had parted with these Sc
eurities in the open market, believing that
cash payment would not be made upon
them. ara preferring TO realize what they
could by sale ia preference 10 an ex-
change for new secured notes under the
plan of Tead1ustment officially offered.
There we're also those who maintained
that il would have been better in the
long run for the Erie Railroad itself If
matters had been allowed TO take their
course and some sort of reduction in the
Erie's large outstanding volume of eapi-
talization had been effected. But on the
other hand, a development Of this kind
would unquestionably have been for the
time being, at least. an adverse influence
in the general stock market and financial
situation: and there was hence, a great
feeling Of relief to-day over the fact that
the matter had terminated as it had done.
particularly because it was revealed that
the danger OF a receivership for the Erie
was much greater than nine out Of ten
people in the financial list had imagined.
Future still in Doubt.
There is still to be considered the
weighty question of the Erie Railroad
Company's financial future. The maturing
short-term notes will be paid in cash. and
It Is understood that the offer originally
made By the FIRST syndicate formed In the
present crisis to buy $5,0o0,000 additional
notes still holds good. The supposition,
however, that this further amount OF
money had reference to the creation Of
new capital proper Is unfOunded. mas
much as the money viii be used 10 pay
of the Erie's accruing current indebted
ness, and this leaves as the crux OF the
whole question whether the Erie can, with
the help thus afforded, manage TO keep
up the interest on its mortgage indebted
ness through the ensuing months Of busi-
ness depression
AT first to-day spectators in the market
were seemingly inclined to consider that
but not permanently or eonclusively oct
tered by what had occurred, and though,
therefore, prices Of stocks held firmly. no
enthusiasm wis displayed on the buying
side. But as the day advanced this ele-
ment began 10 figure in the situation that
an illustra ton had been made OF the de-
termination Of various larger financial in
tsrests to avert so far as they could the
work OF harmful market forces as these
from time 10 time make their presence
felt and the personal concerns that they
had at stake upon the result Of their en-
deavOrs
Planning a Bond Issue.
The Union Pacific Railroad Company,
for instance. is about TO negotiate a
5000 coo bond Issue and the Illinois Cen
tral Railroad Company Is soon To bring
out about S3o.o0O000 of new bonds and
stocks.
The strength OF the United States Steel
issues was less noteworthy than that in
other quarters Of the market, although
a statement emanating from the chair
man of the board Of directors OF the
United States Steel Corporation during
the day was ordinarily spoken Of as a
Dullisu ELlefduCt, 50 lar as tll5 SloSAs oi
the corporations We're concerned. Mr..
Garys statement was not so construed
by those who read his words carefully.
He declared that no reductions in the pre-
valling prices OF steel were contemplated,
but admitted that prices might be in
creased or decreased IF there was good
reason" and that If such good reason
could be given, the question would be
considered on its merits The statement
appeared 10 be one in which much should
be read between the lines