Los Angeles herald., 1908-01-09
NEW YORK STOCK
AND BOND MARKET
BY Associated Press.

BY ASSoclated Fte8S.
NEW YORK. jan s.-Events today con-
frmed the doubts which began to manifest
themselves yesterday over the operations for
a present rise in stocks, and they were prac-
ticaIIy abandoned Some natural reaction fol-
lowed with the selling out OF disappointed
spectators who had bought in hopes Of an
extension Ia the advance but the backward
movement was moderate measured by the
tent of the previous buying and the advances.
The action Of the Northern Pacific directors
in declaring only the regular quarterly divl-
dend proved practically disconcerting to a bull
party I'm the speculation, which had advanced
.ery bold claims for inside information OF an
intended distribution Of 10 per cent in extra
dividends.
The failure of these prophecies greatly dis
credited the claims on which this bull party
has worked, which included intmations of en-
couragen1ent and backing from important capi.
tai interests. The information Of yesterdays
rumors OF an intended reoelvership for the
Chicago Great Western caused misgivings of
further damage to the sufferers from the finau-
cial crisis and the resulting reaction.
The sympathetic effect OF this news was most
marked on stocks of companies supposed to bo
in similar condition of financial need. espe-
cially those with heavy temporary note obliga-
tions incurred during the past year. with
narrow margin OF surplus earnings over fXed
requirements and with heavy inroads upon tho
previous rate Of earnings caused by the bust
ness reaction. Reports became current Of offer
ings of discount on the curb market of Erie
one year notes. which $5,500,OOO were issued
HVNNYtNvu
Rock Island issue natures about the same
time.
The finances of the Southern Railway offered
q sufficiently close analogy to bring its stocks
into the movement today Tho condition thus
presented is general enough to have inhu-
srco OF railroad securities as a whole. Rail-
road companies of frst-class credit. as well as
those lower in the market. were driven 10 tenn
porary nota issues last year, and very hevay
maturities fall due all through the present
year.
The issues were made not with the intention
.f redemption in cash at the expiration of the
PERIOD but of refunding into longer time obli-
fations as soo~ as the them prohibitiye inter-
ests should have yielded. Such incidents as
those which came into prominence today awak-
en- the question of the feasibility Of raising
new capital supplies in some Of these cases
Ruling prices Of some of the temporary rail-
road note issues suggest a faulty condition of
credits, apart from money market considera-
tions.
The large waiting demands for capital in
sact constitute an important element in the
working out Of the financial future. Foreign
markets as well as our own have shown their
senstiveness this week to announcements of
sew government loans. 1t became known today
that additional New York city revenue bonds
had been sold to the syndicate which obtained
an option on them at the time of previous sub
scrlption.
The pushing of prosecutions against financial
offenders and notice from supervising authori-
ties of exact compliance with restrictions TO be
required are looked 20 part explanation for
the abstention from speculative activity OF
some previously conspicuous forces. An lnnu-
ence in the same direction is the new resula-
ton TO go into effect for weekly state
ments OF financial conditions 10 be made to the
state banking department OF the trust compa-
jies as well as the state banks.
The coalers were sustained to some extent
today by reports OF probable congressional re-
lief from the requirement for divertment Of
ownership of coal properties. Renewed inti-
nations OF the shaping government suit for
dissolution of the Hartman railroad merger
Weighed on these stocks. There was turn
against a short interest in American Sugar
after the stockholders meeting. and the mar
bet enjoyed rally in sympathy with the up
turn in that stock.
Bonds were irregular. Total sales. par value,
s2,122000 United States Is registered ad-
Vanced 4 and the coupons q pdr cent on call.