The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-04-05
ERIE HITS ON PLAN
Railroad Announces Scheme
to Raise S15,O00,000.
E BANK TAKES a THIRD
Exchange New Notes for old
nes-MarIset Rallies Toward Close
fter Listiess Day - Decision
gafnst Eighty-cent Gas Also
actor-ImprOveme Continues.

New York. April 4--Diseussion OF the
Erie situation was calner and more rea-
sonable to-day than on yesterday or the
preceding day. and the expectation was
entertained quite generally that as the
disturbing rumors reached the ears Of
the holders of the maturing notes, these
individuals would lose little time in noti-
flying the management Of their willing
ness 10 accept another note Of the COM
pany. collaterally secured, in exchange
for their holdings.
II was even said that while apparently
the notes had become widely scattered, a
large amount of them was really IN the
bands Of a corporation. which holds
10000 OF other Indebtedness OF the Erie
Railroad and It was intimated that the
concern referred TO would cooperate in
plans to provide a solution Of the present
difficulty. At one time, It was rumored
that before the end OF the day announce
ment would be forthcoming OF a plan TO
furnish the roads needs, and on this the
Erie issues were marked up. sharply fore
ing the retreat of room traders short
interest.
However, no announcement Of any kind
bearing on the roads affairs was made
during business hours by any one in posi-
ton to speak authoritatively for the COM
pany.
Plan Is Arranged.
The prevailing impression was that
while a solution might soon be reached
none had yet been arrived at. But after
the close of business, the encouraging
announcement was made by New York 5
most prominent banking firm that plan
had been promulgated which gives every
promise Of success. This is an exchange
Of new notes for the old ones, the bank
ing house showing its faith in the new
issue by agreeing to subscribe for $5,0O0.-
000 OF IL al par so as 10 furnish the road
with additional capital.
During the first hour the market was
dull, but comparatively firm, and the fact
that few stocks came out, despite opera
tons of some Of the principal traders on
the side OF the decline, left the way clear
for the rally that occurred at the close,
when Erie moved upward to the extent Of
about two points above its earlier price
level
Order Is a Factor.
The order made by Judge Hough in the
suit of the Consolidated Gas Company
against the State. the city of New York
and the public securities commission was
also a marked factor Of some Importance.
the court affirming a final decree declar-
ing the So-oent gas law unconstitutional
and restraining the defendants from pro-
ceeding against the company for forfeit
ure of its charter.
The bank statement did not show as
large a gain in cash as was expected. but
reflected in increases in items of loans
and deposits the changed incident 10 the
dividend and interest disbursements made
at the beginning Of the month. The loan
account is now larger by nearly Sl600.000
and the item Of deposits upward Of S24,
O0C.C00 more than a week ago.
The reports of the commercial agencies
that Improvement in business was slow
and irregular was received with disap-
pointment in the street. seeking as they
did 10 confirm in some degree the rumoTs
current for some days past to the effect
that it was doubtful If q number of plants
which resumed opera tons recently could
long continue 70 run on full time.
The aggregate clearing of all the banks
Of the United States for the week were
22I per cent under those of the CORE
spending week last year, but were rela-
lively better than in March. when the
falling eff was as much as S5.S per cent