The Washington herald., 1908-05-29
GOULD SHARES FALL
Drop of Eight Points Fails
to Shake Market.
NORTHERN PACIFIC IS STRONG
Proves BUIwnrk for the General
List-Banl< of England Reduces
i'm Situation in Germany-Wabnsh
Terminal I'm Difficulty.

New York. May 2S.-The market to-
day was subjected TO a severe test
through an almost perpendicular drop OF
more than eight points In Missouri Pa
cihc and pronounced weakness in the
securities OF other Gould roads, and it
was generally conceded that It stood II
we'll
There was a strong opening, partly as
result of the reduction in the Bank of
England discount rate. and through the
greater part Of the forenoon the course
OF prices was generally upward, some
substantial gains being recorded in that
period But when Missouri Pacific yield
ed 10 attack in a way that denoted an
utter lack Of support. the traders began
a selling movement in the general list
which proved relatively unsuccessful.
The action Of the Bank of England I'm
reducing its rate from per cent TO 2l5
per cent, course entirely justified by
the strong statement OF condition pre-
sented by the Institution, was regarded
as an indication that the financial sit
uation In Germany had been relieved TO
such an extent that further demands for
gold were not likely TO be made by Ber-
lin for the present, and that the bank
rate az that center would be reduced IN
the near future
Northern Pacific Strong.
A notable feature Of the market was
the strength Of Northern Pacific, which
has heretofore not advanced relatively
70 other issues In its class but which
to-day was the bulwark for the general
IA
weakness in the Gould stocks encour-
aged the traders to renew their assaults
on values. Reading was another stock
that showed considerable strength, but
the former leaders. Union Pacific and St.
Paul. were not particularly well sup
ported
Although after meeting Of directors
of the Wabash-Pittsburg Terminal Com
pany no announcement was made as 20
the future Of the company, Il was gen
orally expected that application for a re-
ooivership for the property would be
made in the near future. and a strong
protective committee was formed to look
after the interests OF security holders.
It was strongly intimated that no more
dividends, either in cash or securities,
would be paid on Missouri Pacific for a
long time to come. and in conservative
quarters the view was expressed that IL
woul6 be better for all concerned that
the air should be cleared OF the cloud OF
rumor that has hung around this group
OF securities for months past.
Event Fully Discounted.
A well-iuformed interest made the
statement that the reorganization Of the
Wabash-Pittsburg Terminal Company
would mark the turning point in the af-
fairs OF the Gould roads, and it remains
10 he seen whether an event so generally
expressed has not been fully discounted.
There was a further sharp advance in
the price OF May corn at Chicago but
except for this and a sharp advance in
May wheat the grain markets were
quiet, and inclined 90 sell of.
The April earnings OF Reading were
regarded as somewhat disappointing. for
while there was a substantial Increase In
this coal business, partly offsetting the
rather large decrease in the gross receipts
for the railroad. the combined net re-
turns were smaller by S40S9l2 than those
for the corresponding month last year.
The most remarkable record yet dis
closed by any road in the matter Of re-
ducing operating expenses is that made
by Southern Railway, in which a de-
crease OF 2,l0l I'm gross Is converted
into an increase Of S2i4039 IN net. making
the latter the best for any corresponding
month in eleven years.